FALSE0000801337FY201912/3100008013372019-01-012019-12-310000801337exch:XNYSus-gaap:CommonClassAMember2019-01-012019-12-310000801337exch:XNYSus-gaap:SeriesFPreferredStockMember2019-01-012019-12-31iso4217:USD00008013372019-06-30xbrli:shares00008013372020-02-2700008013372019-12-3100008013372018-12-31iso4217:USDxbrli:shares0000801337us-gaap:SeriesFPreferredStockMember2019-12-310000801337us-gaap:SeriesFPreferredStockMember2018-12-3100008013372018-01-012018-12-3100008013372017-01-012017-12-3100008013372019-01-012019-09-3000008013372018-01-012018-09-3000008013372017-01-012017-09-300000801337us-gaap:PreferredStockMember2016-12-310000801337us-gaap:CommonStockMember2016-12-310000801337us-gaap:AdditionalPaidInCapitalMember2016-12-310000801337us-gaap:RetainedEarningsMember2016-12-310000801337us-gaap:TreasuryStockMember2016-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2016-12-3100008013372016-12-310000801337us-gaap:RetainedEarningsMember2017-01-010000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-01-0100008013372017-01-010000801337us-gaap:RetainedEarningsMember2017-01-012017-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-01-012017-12-310000801337us-gaap:CommonStockMember2017-01-012017-12-310000801337us-gaap:AdditionalPaidInCapitalMember2017-01-012017-12-310000801337us-gaap:SeriesEPreferredStockMember2017-01-012017-12-310000801337us-gaap:SeriesEPreferredStockMemberus-gaap:RetainedEarningsMember2017-01-012017-12-310000801337us-gaap:SeriesFPreferredStockMemberus-gaap:RetainedEarningsMember2017-01-012017-12-310000801337us-gaap:SeriesFPreferredStockMember2017-01-012017-12-310000801337us-gaap:TreasuryStockMember2017-01-012017-12-310000801337us-gaap:PreferredStockMemberus-gaap:SeriesEPreferredStockMember2018-01-012018-12-310000801337us-gaap:SeriesEPreferredStockMember2018-01-012018-12-310000801337us-gaap:SeriesFPreferredStockMemberus-gaap:PreferredStockMember2018-01-012018-12-310000801337us-gaap:SeriesFPreferredStockMember2018-01-012018-12-310000801337us-gaap:PreferredStockMember2017-12-310000801337us-gaap:CommonStockMember2017-12-310000801337us-gaap:AdditionalPaidInCapitalMember2017-12-310000801337us-gaap:RetainedEarningsMember2017-12-310000801337us-gaap:TreasuryStockMember2017-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-3100008013372017-12-310000801337us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201802Member2018-01-010000801337us-gaap:AccountingStandardsUpdate201802Member2018-01-010000801337us-gaap:RetainedEarningsMember2018-01-012018-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310000801337us-gaap:CommonStockMember2018-01-012018-12-310000801337us-gaap:AdditionalPaidInCapitalMember2018-01-012018-12-310000801337us-gaap:SeriesFPreferredStockMemberus-gaap:RetainedEarningsMember2018-01-012018-12-310000801337us-gaap:TreasuryStockMember2018-01-012018-12-310000801337us-gaap:AdditionalPaidInCapitalMember2019-01-012019-12-310000801337us-gaap:RetainedEarningsMember2019-01-012019-12-310000801337us-gaap:TreasuryStockMember2019-01-012019-12-310000801337us-gaap:PreferredStockMember2018-12-310000801337us-gaap:CommonStockMember2018-12-310000801337us-gaap:AdditionalPaidInCapitalMember2018-12-310000801337us-gaap:RetainedEarningsMember2018-12-310000801337us-gaap:TreasuryStockMember2018-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000801337us-gaap:AccountingStandardsUpdate201808Memberus-gaap:RetainedEarningsMember2019-09-300000801337us-gaap:AccountingStandardsUpdate201808Member2019-09-300000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310000801337us-gaap:CommonStockMember2019-01-012019-12-310000801337us-gaap:SeriesFPreferredStockMember2019-01-012019-12-310000801337us-gaap:SeriesFPreferredStockMemberus-gaap:RetainedEarningsMember2019-01-012019-12-310000801337us-gaap:PreferredStockMember2019-12-310000801337us-gaap:CommonStockMember2019-12-310000801337us-gaap:AdditionalPaidInCapitalMember2019-12-310000801337us-gaap:RetainedEarningsMember2019-12-310000801337us-gaap:TreasuryStockMember2019-12-310000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100008013372019-01-010000801337srt:MinimumMemberus-gaap:BuildingAndBuildingImprovementsMember2019-01-012019-12-310000801337us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2019-01-012019-12-310000801337us-gaap:LeaseholdImprovementsMembersrt:MinimumMember2019-01-012019-12-310000801337us-gaap:LeaseholdImprovementsMembersrt:MaximumMember2019-01-012019-12-310000801337srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2019-01-012019-12-310000801337us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2019-01-012019-12-310000801337srt:MinimumMemberus-gaap:InformationTechnologyAndDataProcessing2019-01-012019-12-310000801337srt:MaximumMemberus-gaap:InformationTechnologyAndDataProcessing2019-01-012019-12-31xbrli:pure0000801337us-gaap:PerformanceSharesMembersrt:MinimumMember2019-01-012019-12-310000801337us-gaap:PerformanceSharesMembersrt:MaximumMember2019-01-012019-12-310000801337us-gaap:AccountingStandardsUpdate201602Member2019-01-010000801337us-gaap:OtherAssetsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-12-310000801337us-gaap:OtherAssetsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2018-12-310000801337us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2019-09-300000801337us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2018-12-310000801337us-gaap:OtherInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-12-310000801337us-gaap:OtherInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2018-12-310000801337us-gaap:UnfundedLoanCommitmentMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-12-310000801337us-gaap:UnfundedLoanCommitmentMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2018-12-310000801337us-gaap:USTreasuryBillSecuritiesMember2019-12-310000801337us-gaap:USTreasuryBillSecuritiesMember2018-12-310000801337us-gaap:CollateralizedMortgageObligationsMember2019-12-310000801337us-gaap:CollateralizedMortgageObligationsMember2018-12-310000801337us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000801337us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMember2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000801337us-gaap:CommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:CollateralizedLoanObligationsMember2019-12-310000801337us-gaap:CollateralizedLoanObligationsMember2018-12-310000801337us-gaap:CorporateDebtSecuritiesMember2019-12-310000801337us-gaap:CorporateDebtSecuritiesMember2018-12-310000801337us-gaap:MunicipalBondsMember2019-12-310000801337us-gaap:MunicipalBondsMember2018-12-31wbs:numberOfHoldings0000801337wbs:CallableMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMember2018-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2019-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2018-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2019-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2018-12-310000801337wbs:LeasingReceivableMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2019-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2018-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerBorrowerMember2018-12-310000801337us-gaap:FinancingReceivables30To59DaysPastDueMember2018-12-310000801337us-gaap:FinancingReceivables60To89DaysPastDueMember2018-12-310000801337us-gaap:CommercialPortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:CommercialPortfolioSegmentMember2017-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2017-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2017-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2017-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2017-12-310000801337us-gaap:CommercialPortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:CommercialPortfolioSegmentMember2016-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2016-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2016-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2016-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2016-12-310000801337us-gaap:CommercialPortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ResidentialPortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ConsumerPortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-01-012019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-01-012018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2017-01-012017-12-310000801337us-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2019-01-012019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2018-01-012018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberwbs:AssetBasedLoansMember2017-01-012017-12-310000801337us-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:ConstructionLoansMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-01-012019-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-01-012018-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2017-01-012017-12-310000801337us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2019-12-310000801337us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310000801337us-gaap:PassMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:PassMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:PassMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310000801337us-gaap:PassMemberus-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2018-12-310000801337us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:SpecialMentionMember2018-12-310000801337us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2019-12-310000801337us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310000801337us-gaap:SubstandardMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000801337us-gaap:SubstandardMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000801337us-gaap:SubstandardMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310000801337us-gaap:SubstandardMemberus-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2018-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2019-12-310000801337us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2018-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:DoubtfulMember2019-12-310000801337us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:DoubtfulMember2018-12-310000801337us-gaap:PerformingFinancingReceivableMember2019-12-310000801337us-gaap:PerformingFinancingReceivableMember2018-12-310000801337us-gaap:NonperformingFinancingReceivableMember2019-12-310000801337us-gaap:NonperformingFinancingReceivableMember2018-12-310000801337us-gaap:NonperformingFinancingReceivableMemberwbs:TroubledDebtRestructuresMember2019-12-310000801337us-gaap:NonperformingFinancingReceivableMemberwbs:TroubledDebtRestructuresMember2018-12-31wbs:loan0000801337us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-01-012019-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-01-012018-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2017-01-012017-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2019-01-012019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2018-01-012018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2017-01-012017-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberwbs:CombinationOfRateAndMaturityMember2019-01-012019-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberwbs:CombinationOfRateAndMaturityMember2018-01-012018-12-310000801337us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberwbs:CombinationOfRateAndMaturityMember2017-01-012017-12-310000801337wbs:OtherconcessionsMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2019-01-012019-12-310000801337wbs:OtherconcessionsMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2018-01-012018-12-310000801337wbs:OtherconcessionsMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2017-01-012017-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337wbs:CombinationOfRateAndMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337wbs:CombinationOfRateAndMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337wbs:CombinationOfRateAndMaturityMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337wbs:OtherconcessionsMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-12-310000801337wbs:OtherconcessionsMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310000801337wbs:OtherconcessionsMemberus-gaap:RealEstateLoanMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-01-012019-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:FinanceLeasesPortfolioSegmentMember2018-01-012018-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:FinanceLeasesPortfolioSegmentMember2017-01-012017-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ExtendedMaturityMember2019-01-012019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ExtendedMaturityMember2018-01-012018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ExtendedMaturityMember2017-01-012017-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2019-01-012019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2018-01-012018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2017-01-012017-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMember2019-01-012019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMember2018-01-012018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMember2017-01-012017-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:OtherconcessionsMember2019-01-012019-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:OtherconcessionsMember2018-01-012018-12-310000801337us-gaap:ResidentialPortfolioSegmentMemberwbs:OtherconcessionsMember2017-01-012017-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-01-012019-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-01-012018-12-310000801337us-gaap:ExtendedMaturityMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2017-01-012017-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2019-01-012019-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2018-01-012018-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2017-01-012017-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMemberus-gaap:HomeEquityLoanMember2019-01-012019-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMemberus-gaap:HomeEquityLoanMember2018-01-012018-12-310000801337us-gaap:ConsumerPortfolioSegmentMemberwbs:CombinationOfRateAndMaturityMemberus-gaap:HomeEquityLoanMember2017-01-012017-12-310000801337wbs:OtherconcessionsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2019-01-012019-12-310000801337wbs:OtherconcessionsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2018-01-012018-12-310000801337wbs:OtherconcessionsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2017-01-012017-12-310000801337us-gaap:PassMemberwbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2019-12-310000801337us-gaap:PassMemberwbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2018-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMemberus-gaap:SpecialMentionMember2019-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMemberus-gaap:SpecialMentionMember2018-12-310000801337us-gaap:SubstandardMemberwbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2019-12-310000801337us-gaap:SubstandardMemberwbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2018-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMemberus-gaap:DoubtfulMember2019-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMemberus-gaap:DoubtfulMember2018-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2019-12-310000801337wbs:CommerialCommercialRealEstateEquipmentFinancingTDRsMember2018-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2018-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2017-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2016-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2019-01-012019-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2018-01-012018-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2017-01-012017-12-310000801337us-gaap:ReserveForOffBalanceSheetActivitiesMember2019-12-310000801337us-gaap:ResidentialMortgageMember2019-01-012019-12-310000801337us-gaap:ResidentialMortgageMember2018-01-012018-12-310000801337us-gaap:ResidentialMortgageMember2017-01-012017-12-310000801337us-gaap:ResidentialMortgageMemberwbs:ResidentialMortgageLoansServicingRetainedMember2019-01-012019-12-310000801337us-gaap:ResidentialMortgageMemberwbs:ResidentialMortgageLoansServicingRetainedMember2018-01-012018-12-310000801337us-gaap:ResidentialMortgageMemberwbs:ResidentialMortgageLoansServicingRetainedMember2017-01-012017-12-310000801337us-gaap:CommercialLoanMember2019-01-012019-12-310000801337us-gaap:CommercialLoanMember2018-01-012018-09-300000801337us-gaap:CommercialLoanMember2017-01-012017-12-310000801337us-gaap:ResidentialMortgageMember2019-12-310000801337us-gaap:ResidentialMortgageMember2018-01-012018-09-300000801337srt:MinimumMember2019-12-310000801337srt:MaximumMember2019-12-3100008013372019-09-300000801337wbs:CommunityBankingMember2019-12-310000801337wbs:HSABankMember2019-12-310000801337us-gaap:CoreDepositsMemberwbs:HSABankMember2019-12-310000801337us-gaap:CoreDepositsMemberwbs:HSABankMember2018-12-310000801337us-gaap:CustomerRelationshipsMemberwbs:HSABankMember2019-12-310000801337us-gaap:CustomerRelationshipsMemberwbs:HSABankMember2018-12-310000801337us-gaap:ResearchMember2019-12-310000801337us-gaap:InvestmentCreditMember2019-12-310000801337us-gaap:StateAndLocalJurisdictionMember2017-01-012017-12-310000801337us-gaap:DomesticCountryMember2017-01-012017-12-310000801337us-gaap:StateAndLocalJurisdictionMember2019-12-310000801337us-gaap:StateAndLocalJurisdictionMember2019-12-310000801337us-gaap:GeneralBusinessMember2019-12-310000801337srt:ScenarioForecastMembersrt:MinimumMember2020-01-012020-01-010000801337srt:ScenarioForecastMembersrt:MaximumMember2020-12-312020-12-310000801337wbs:OriginalMaturityOfOneYearOrLessMember2019-12-310000801337wbs:OriginalMaturityOfOneYearOrLessMemberus-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2019-12-310000801337wbs:OriginalMaturityOfOneYearOrLessMember2018-12-310000801337wbs:OriginalMaturityOfOneYearOrLessMemberus-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2018-12-310000801337wbs:OriginalmaturityofgreaterthanoneyearnoncallableMember2019-12-310000801337wbs:OriginalmaturityofgreaterthanoneyearnoncallableMemberus-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2019-12-310000801337wbs:OriginalmaturityofgreaterthanoneyearnoncallableMember2018-12-310000801337wbs:OriginalmaturityofgreaterthanoneyearnoncallableMemberus-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2018-12-310000801337us-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2019-12-310000801337us-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2018-12-310000801337us-gaap:FederalFundsPurchasedMember2019-12-310000801337us-gaap:FederalFundsPurchasedMember2018-12-310000801337us-gaap:FederalFundsPurchasedAndSecuritiesSoldUnderAgreementsToRepurchaseMember2019-12-310000801337us-gaap:FederalFundsPurchasedAndSecuritiesSoldUnderAgreementsToRepurchaseMember2018-12-310000801337us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMember2019-12-310000801337us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMember2018-12-310000801337us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2019-12-310000801337us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2018-12-310000801337us-gaap:JuniorSubordinatedDebtMember2019-12-310000801337us-gaap:JuniorSubordinatedDebtMember2018-12-310000801337us-gaap:LongTermDebtMember2019-12-310000801337us-gaap:LongTermDebtMember2018-12-310000801337us-gaap:SeniorNotesMember2019-12-310000801337us-gaap:LondonInterbankOfferedRateLIBORMember2019-12-310000801337us-gaap:CommonStockMember2018-12-310000801337us-gaap:TreasuryStockMember2019-01-012019-12-310000801337us-gaap:CommonStockMember2019-12-310000801337us-gaap:PreferredStockMember2019-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2016-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2016-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2016-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2017-01-012017-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2017-01-012017-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-01-012017-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2017-01-010000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2017-01-010000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-01-010000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2017-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2017-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-01-012018-09-300000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-01-012018-09-300000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-09-300000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-09-300000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-09-300000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-09-300000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-300000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-01-012019-09-300000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-09-300000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-09-300000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-09-300000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-09-300000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-300000801337us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300000801337us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310000801337us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310000801337us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2017-01-012017-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310000801337us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2017-01-012017-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310000801337us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2017-01-012017-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-01-012019-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2018-01-012018-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2017-01-012017-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-12-310000801337us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-12-310000801337wbs:RiskBasedCapitalRequiredforCapitalAdequacytoRiskWeightedAssetsMember2019-12-310000801337wbs:RiskBasedCapitalRequiredtobeWellCapitalizedtoRiskWeightedAssetsMember2019-12-310000801337srt:SubsidiariesMember2019-12-310000801337srt:SubsidiariesMemberwbs:RiskBasedCapitalRequiredforCapitalAdequacytoRiskWeightedAssetsMember2019-12-310000801337srt:SubsidiariesMemberwbs:RiskBasedCapitalRequiredtobeWellCapitalizedtoRiskWeightedAssetsMember2019-12-310000801337wbs:RiskBasedCapitalRequiredforCapitalAdequacytoRiskWeightedAssetsMember2018-12-310000801337wbs:RiskBasedCapitalRequiredtobeWellCapitalizedtoRiskWeightedAssetsMember2018-12-310000801337srt:SubsidiariesMember2018-12-310000801337srt:SubsidiariesMemberwbs:RiskBasedCapitalRequiredforCapitalAdequacytoRiskWeightedAssetsMember2018-12-310000801337srt:SubsidiariesMemberwbs:RiskBasedCapitalRequiredtobeWellCapitalizedtoRiskWeightedAssetsMember2018-12-310000801337us-gaap:RestrictedStockMember2019-01-012019-12-310000801337us-gaap:RestrictedStockMember2018-01-012018-12-310000801337us-gaap:RestrictedStockMember2017-01-012017-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2019-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2018-12-310000801337us-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2019-09-300000801337us-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2018-12-310000801337us-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMemberus-gaap:CreditDefaultSwapBuyingProtectionMember2019-09-300000801337us-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMemberus-gaap:CreditDefaultSwapSellingProtectionMember2019-09-300000801337us-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMemberus-gaap:CreditDefaultSwapBuyingProtectionMember2018-12-310000801337us-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMemberus-gaap:CreditDefaultSwapSellingProtectionMember2018-12-310000801337us-gaap:NondesignatedMemberus-gaap:OtherContractMember2019-09-300000801337us-gaap:NondesignatedMemberus-gaap:OtherContractMember2018-12-310000801337us-gaap:NondesignatedMember2019-09-300000801337us-gaap:NondesignatedMember2018-12-310000801337exch:CMESus-gaap:NondesignatedMember2019-12-310000801337exch:CMESus-gaap:NondesignatedMember2018-12-310000801337us-gaap:InterestRateFloorMember2019-12-310000801337us-gaap:LoanOriginationCommitmentsMember2019-12-310000801337us-gaap:InterestRateLockCommitmentsMember2019-12-310000801337us-gaap:CrossCurrencyInterestRateContractMember2019-12-310000801337us-gaap:CrossCurrencyInterestRateContractMember2018-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMember2019-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMember2018-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMemberus-gaap:LongTermDebtMember2019-01-012019-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMemberus-gaap:LongTermDebtMember2018-01-012018-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMemberus-gaap:LongTermDebtMember2017-01-012017-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMember2019-01-012019-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMember2018-01-012018-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OperatingExpenseMemberus-gaap:FairValueHedgingMember2017-01-012017-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2019-01-012019-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2018-01-012018-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2017-01-012017-12-310000801337us-gaap:CashFlowHedgingMemberus-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2019-01-012019-09-300000801337us-gaap:CashFlowHedgingMemberus-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2018-01-012018-09-300000801337us-gaap:CashFlowHedgingMemberus-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2017-01-012017-12-310000801337us-gaap:CashFlowHedgingMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMemberus-gaap:OtherIncomeMember2019-01-012019-09-300000801337us-gaap:CashFlowHedgingMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMemberus-gaap:OtherIncomeMember2018-01-012018-09-300000801337us-gaap:CashFlowHedgingMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMemberus-gaap:OtherIncomeMember2017-01-012017-12-310000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2019-01-012019-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2018-01-012018-09-300000801337us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2017-01-012017-12-310000801337us-gaap:LongTermDebtMember2019-09-300000801337us-gaap:LongTermDebtMember2018-12-310000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2019-01-012019-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2018-01-012018-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:InterestRateContractMember2017-01-012017-12-310000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMember2019-01-012019-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMember2018-01-012018-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberwbs:MortgageBankingDerivativesMember2017-01-012017-12-310000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2019-01-012019-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2018-01-012018-09-300000801337us-gaap:OperatingExpenseMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2017-01-012017-12-310000801337us-gaap:NondesignatedMember2019-01-012019-09-300000801337us-gaap:PriceRiskDerivativeMember2019-12-310000801337us-gaap:CashFlowHedgingMember2019-12-310000801337us-gaap:CashFlowHedgingMember2019-01-012019-12-310000801337exch:CMES2019-12-310000801337us-gaap:CostApproachValuationTechniqueMember2019-12-310000801337us-gaap:MarketApproachValuationTechniqueMember2019-12-310000801337wbs:LoansheldforsaleMember2019-12-310000801337wbs:LoansheldforsaleMember2018-12-310000801337wbs:RabbiTrustMember2019-12-310000801337us-gaap:PrivateEquityFundsDomesticMember2019-09-300000801337us-gaap:CollateralizedMortgageObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:CollateralizedMortgageObligationsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000801337us-gaap:CollateralizedLoanObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:CollateralizedLoanObligationsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:LoanOriginationCommitmentsMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:LoanOriginationCommitmentsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:LoanOriginationCommitmentsMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:LoanOriginationCommitmentsMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberwbs:InvestmentsHeldInRabbiTrustMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberwbs:InvestmentsHeldInRabbiTrustMember2019-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000801337us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2018-12-310000801337us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:CollateralizedMortgageObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:CollateralizedMortgageObligationsMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337wbs:AgencyCommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2018-12-310000801337us-gaap:CollateralizedLoanObligationsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:CollateralizedLoanObligationsMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:LoanOriginationCommitmentsMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:LoanOriginationCommitmentsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:LoanOriginationCommitmentsMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberwbs:InvestmentsHeldInRabbiTrustMember2018-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMemberwbs:InvestmentsHeldInRabbiTrustMember2018-12-310000801337us-gaap:FairValueMeasurementsRecurringMemberwbs:InvestmentsHeldInRabbiTrustMember2018-12-310000801337us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310000801337us-gaap:PrivateEquityFundsDomesticMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000801337us-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2018-12-310000801337us-gaap:ResidentialMortgageMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000801337us-gaap:ResidentialMortgageMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000801337us-gaap:ResidentialMortgageMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310000801337us-gaap:ResidentialMortgageMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2018-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:DepositsOtherThanTimeDepositsMember2019-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:DepositsOtherThanTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:DepositsOtherThanTimeDepositsMember2018-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:DepositsOtherThanTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:TimeDepositsMember2019-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:TimeDepositsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:TimeDepositsMember2018-12-310000801337us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberwbs:TimeDepositsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2018-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2017-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2018-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2017-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2017-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2018-01-012018-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2019-01-012019-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2018-01-012018-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-01-012019-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-01-012018-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2019-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2019-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-12-310000801337us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-12-310000801337us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-12-310000801337us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-12-310000801337us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-01-012018-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2017-01-012017-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2019-01-012019-09-300000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2018-01-012018-09-300000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2017-01-012017-12-310000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-01-012019-09-300000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-01-012018-09-300000801337us-gaap:DefinedBenefitPostretirementHealthCoverageMember2017-01-012017-12-310000801337us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000801337us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2019-12-310000801337us-gaap:ExchangeTradedFundsMember2019-12-310000801337us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel1Member2018-12-310000801337us-gaap:ExchangeTradedFundsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2018-12-310000801337us-gaap:ExchangeTradedFundsMember2018-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2019-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2019-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2018-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2018-12-310000801337us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2018-12-310000801337us-gaap:DefinedBenefitPlanCommonCollectiveTrustMember2019-12-310000801337us-gaap:DefinedBenefitPlanCommonCollectiveTrustMember2018-12-310000801337us-gaap:FairValueInputsLevel1Member2019-12-310000801337us-gaap:FairValueInputsLevel2Member2019-12-310000801337us-gaap:FairValueInputsLevel3Member2019-12-310000801337us-gaap:FairValueInputsLevel1Member2018-12-310000801337us-gaap:FairValueInputsLevel2Member2018-12-310000801337us-gaap:FairValueInputsLevel3Member2018-12-310000801337us-gaap:FixedIncomeFundsMember2019-12-310000801337us-gaap:FixedIncomeFundsMember2018-12-310000801337us-gaap:EquityFundsMember2019-12-310000801337us-gaap:EquityFundsMember2018-12-310000801337us-gaap:PensionPlansDefinedBenefitMember2019-10-012019-12-310000801337us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2019-10-012019-12-3100008013372020-01-010000801337us-gaap:RestrictedStockMember2019-01-012019-12-310000801337us-gaap:RestrictedStockMember2018-01-012018-12-310000801337us-gaap:RestrictedStockMember2017-01-012017-12-310000801337us-gaap:RestrictedStockMember2018-12-310000801337us-gaap:PerformanceSharesMember2018-12-310000801337us-gaap:EmployeeStockOptionMember2018-12-310000801337us-gaap:PerformanceSharesMember2019-01-012019-12-310000801337us-gaap:EmployeeStockOptionMember2019-01-012019-12-310000801337us-gaap:RestrictedStockMember2019-12-310000801337us-gaap:PerformanceSharesMember2019-12-310000801337us-gaap:EmployeeStockOptionMember2019-12-310000801337srt:MinimumMember2019-01-012019-12-310000801337srt:MaximumMember2019-01-012019-12-310000801337us-gaap:RestrictedStockMembersrt:MaximumMember2019-12-310000801337wbs:IncentiveStockOptionsMember2019-01-012019-12-310000801337wbs:NonQualifiedStockOptionsMember2019-12-310000801337wbs:IncentiveStockOptionsMember2019-12-31wbs:Segment0000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2019-12-310000801337us-gaap:CorporateNonSegmentMember2019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2018-12-310000801337us-gaap:CorporateNonSegmentMember2018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2019-01-012019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2019-01-012019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2019-01-012019-12-310000801337us-gaap:CorporateNonSegmentMember2019-01-012019-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2018-01-012018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2018-01-012018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2018-01-012018-12-310000801337us-gaap:CorporateNonSegmentMember2018-01-012018-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2017-01-012017-12-310000801337us-gaap:CorporateNonSegmentMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommercialBankingMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:HSABankMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommunityBankingMember2019-01-012019-09-300000801337us-gaap:CorporateNonSegmentMemberwbs:DepositServiceFeesMember2019-01-012019-09-300000801337wbs:DepositServiceFeesMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:HSABankMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:CommunityBankingMember2019-01-012019-09-300000801337us-gaap:CorporateNonSegmentMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2019-01-012019-09-300000801337us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2019-01-012019-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2019-01-012019-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:HSABankMember2019-01-012019-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2019-01-012019-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:CorporateNonSegmentMember2019-01-012019-09-300000801337wbs:OtherNonInterestIncomeMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2019-01-012019-09-300000801337us-gaap:CorporateNonSegmentMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommercialBankingMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:HSABankMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommunityBankingMember2019-01-012019-09-300000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberus-gaap:CorporateNonSegmentMember2019-01-012019-09-300000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMember2019-01-012019-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommercialBankingMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:HSABankMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommunityBankingMember2018-01-012018-09-300000801337us-gaap:CorporateNonSegmentMemberwbs:DepositServiceFeesMember2018-01-012018-09-300000801337wbs:DepositServiceFeesMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:HSABankMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:CommunityBankingMember2018-01-012018-09-300000801337us-gaap:CorporateNonSegmentMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2018-01-012018-09-300000801337us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2018-01-012018-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2018-01-012018-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:HSABankMember2018-01-012018-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2018-01-012018-09-300000801337wbs:OtherNonInterestIncomeMemberus-gaap:CorporateNonSegmentMember2018-01-012018-09-300000801337wbs:OtherNonInterestIncomeMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:HSABankMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2018-01-012018-09-300000801337us-gaap:CorporateNonSegmentMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommercialBankingMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:HSABankMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommunityBankingMember2018-01-012018-09-300000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberus-gaap:CorporateNonSegmentMember2018-01-012018-09-300000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMember2018-01-012018-09-300000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommercialBankingMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:HSABankMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:DepositServiceFeesMemberwbs:CommunityBankingMember2017-01-012017-12-310000801337us-gaap:CorporateNonSegmentMemberwbs:DepositServiceFeesMember2017-01-012017-12-310000801337wbs:DepositServiceFeesMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:CommercialBankingMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:HSABankMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMemberwbs:CommunityBankingMember2017-01-012017-12-310000801337us-gaap:CorporateNonSegmentMemberus-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2017-01-012017-12-310000801337us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2017-01-012017-12-310000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommercialBankingMember2017-01-012017-12-310000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:HSABankMember2017-01-012017-12-310000801337wbs:OtherNonInterestIncomeMemberus-gaap:OperatingSegmentsMemberwbs:CommunityBankingMember2017-01-012017-12-310000801337wbs:OtherNonInterestIncomeMemberus-gaap:CorporateNonSegmentMember2017-01-012017-12-310000801337wbs:OtherNonInterestIncomeMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommercialBankingMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:HSABankMember2017-01-012017-12-310000801337us-gaap:OperatingSegmentsMemberwbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberwbs:CommunityBankingMember2017-01-012017-12-310000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMemberus-gaap:CorporateNonSegmentMember2017-01-012017-12-310000801337wbs:NonInterestIncomeWithintheScopeofOtherGAAPTopicsMember2017-01-012017-12-310000801337us-gaap:CommitmentsToExtendCreditMember2019-12-310000801337us-gaap:CommitmentsToExtendCreditMember2018-12-310000801337us-gaap:StandbyLettersOfCreditMember2019-12-310000801337us-gaap:StandbyLettersOfCreditMember2018-12-310000801337us-gaap:LetterOfCreditMember2019-12-310000801337us-gaap:LetterOfCreditMember2018-12-310000801337us-gaap:AllowanceForCreditLossMember2018-12-310000801337us-gaap:AllowanceForCreditLossMember2017-12-310000801337us-gaap:AllowanceForCreditLossMember2019-01-012019-12-310000801337us-gaap:AllowanceForCreditLossMember2018-01-012018-12-310000801337us-gaap:AllowanceForCreditLossMember2019-12-310000801337srt:ParentCompanyMember2019-12-310000801337srt:ParentCompanyMember2018-12-310000801337srt:ParentCompanyMember2019-01-012019-12-310000801337srt:ParentCompanyMember2018-01-012018-12-310000801337srt:ParentCompanyMember2017-01-012017-12-310000801337srt:ParentCompanyMember2017-12-310000801337srt:ParentCompanyMember2016-12-3100008013372019-01-012019-03-3100008013372019-04-012019-06-3000008013372019-07-012019-09-3000008013372019-10-012019-12-3100008013372018-01-012018-03-3100008013372018-04-012018-06-3000008013372018-07-012018-09-3000008013372018-10-012018-12-31
Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
_______________________________________________________________________________
FORM 10-K
_______________________________________________________________________________
 Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2019
or
 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ____ to ____
Commission File Number: 001-31486
_______________________________________________________________________________________________
WEBSTER FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
 _______________________________________________________________________________
Delaware 
06-1187536
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
145 Bank Street, Waterbury, Connecticut 06702
(Address and zip code of principal executive offices)
Registrants telephone number, including area code: (203) 578-2202

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of exchange on which registered
Common Stock, $0.01 par valueWBSNew York Stock Exchange
Depository Shares, each representing 1/1000th interest in a shareWBS PrFNew York Stock Exchange
of 5.25% Series F Non-Cumulative Perpetual Preferred Stock
Securities registered pursuant to Section 12(g) of the Act: None
____________________________________________________________________________________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒  Yes    ☐  No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.   ☐  Yes  ☒  No
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒  Yes  ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transaction period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).    Yes     No
Aggregate market value of Webster Financial Corporation’s common stock held by non-affiliates was approximately $4.3 billion, based on the June 30, 2019 closing price on the New York Stock Exchange, as of the last trading day of the registrant’s most recently completed second quarter.
Number of shares of common stock, par value $.01 per share, outstanding as of February 27, 2020 was 91,629,752.
Documents Incorporated by Reference
Part III: Definitive Proxy Statement (the “Proxy Statement”) for the Annual Meeting of Shareholders to be held on April 23, 2020.





Table of Contents
INDEX

  Page No.
Forward-Looking Statements
Key to Acronyms and Terms
Item 1.Business
Item 1A.Risk Factors
Item 1B.Unresolved Staff Comments
Item 2.Properties
Item 3.Legal Proceedings
Item 4.Mine Safety Disclosures
Item 5.Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6.Selected Financial Data
Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.Quantitative and Qualitative Disclosures About Market Risk
Item 8.Financial Statements and Supplementary Data
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A.Controls and Procedures
Item 9B.Other Information
Item 10.Directors, Executive Officers and Corporate Governance
Item 11.Executive Compensation
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13.Certain Relationships and Related Transactions, and Director Independence
Item 14.Principal Accountant Fees and Services
Item 15.Exhibits and Financial Statement Schedules
Item 16.Form 10-K Summary

i


Table of Contents
WEBSTER FINANCIAL CORPORATION AND SUBSIDIARIES
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods; however, such words are not the exclusive means of identifying such statements. References to the “Company,” “Webster,” “we,” “our,” or “us” mean Webster Financial Corporation and its consolidated subsidiaries.
Examples of forward-looking statements include, but are not limited to:
projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items;
statements of plans, objectives and expectations of Webster or its management or Board of Directors;
statements of future economic performance; and
statements of assumptions underlying such statements.
Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
Factors that could cause our actual results to differ from those discussed in the forward-looking statements include, but are not limited to:
our ability to successfully execute our business plan and manage our risks;
local, regional, national and international economic conditions and the impact they may have on us and our customers;
volatility and disruption in national and international financial markets;
changes in the level of non-performing assets and charge-offs;
changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;
inflation, changes in interest rates, and securities market and monetary fluctuations;
the timely development and acceptance of new products and services and the perceived value of these products and services by customers;
changes in deposit flows, consumer spending, borrowings and savings habits;
our ability to implement new technologies and maintain secure and reliable technology systems;
performance by our counterparties and vendors;
our ability to increase market share and control expenses;
changes in the competitive environment among banks, financial holding companies and other financial services providers;
changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, insurance and healthcare) with which we and our subsidiaries must comply;
the effect of changes in accounting policies and practices applicable to us, including changes in our allowance for loan and lease losses and other impacts of our adoption of new accounting guidance regarding the recognition of credit losses; and
legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews.
All forward-looking statements in this Annual Report on Form 10-K speak only as of the date they are made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
ii


Table of Contents
WEBSTER FINANCIAL CORPORATION AND SUBSIDIARIES
KEY TO ACRONYMS AND TERMS
Agency CMBS
Agency commercial mortgage-backed securities
Agency CMO
Agency collateralized mortgage obligations
Agency MBS
Agency mortgage-backed securities
ALCO
Asset/Liability Committee
ALLL
Allowance for loan and lease losses
AOCL
Accumulated other comprehensive loss, net of tax
ARRC
Alternative Reference Rates Committee
ASC / ASU
Accounting Standards Codification / Accounting Standards Update
Basel III
Capital rules under a global regulatory framework developed by the Basel Committee on Banking Supervision
BHC Act
Bank Holding Company Act of 1956, as amended
Capital Rules
Final rules establishing a new comprehensive capital framework for U.S. banking organizations
CECL
Current expected credit losses
CET1 capital
Common Equity Tier 1 Capital, defined by Basel III capital rules
CFPB
Consumer Financial Protection Bureau
CFTC
Commodity Futures Trading Commission
CLO
Collateralized loan obligation securities
CMBS
Non-agency commercial mortgage-backed securities
CME
Chicago Mercantile Exchange
CRA
Community Reinvestment Act of 1977
DIF
Federal Deposit Insurance Fund
Dodd-Frank
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
DTA
Deferred tax asset
EGRRCPA
Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018
ERMC
Enterprise Risk Management Committee
FASB
Financial Accounting Standards Board
FDIC
Federal Deposit Insurance Corporation
FHLB
Federal Home Loan Bank
FICO
Fair Isaac Corporation
FINRA
Financial Industry Regulatory Authority
FRA
Federal Reserve Act
FRB
Federal Reserve Bank
FTP
Funds Transfer Pricing, a matched maturity funding concept
GAAP
U.S. Generally Accepted Accounting Principles
Holding Company
Webster Financial Corporation
HSA Bank
HSA Bank, a division of Webster Bank, National Association
LEP
Loss emergence period
LGDLoss given default
LIBORLondon Interbank Offered Rate
LPLLPL Financial Holdings Inc.
NAVNet asset value
NIINet interest income
OCCOffice of the Comptroller of the Currency
OCI / OCLOther comprehensive income (loss)
OREOOther real estate owned
OTTIOther-than-temporary impairment
PDProbability of default
PPNRPre-tax, pre-provision net revenue
QMQualified mortgage
ROURight-of-use
SALTState and local tax
SECUnited States Securities and Exchange Commission
SERPSupplemental defined benefit retirement plan
SIPCSecurities Investor Protection Corporation
SOFRSecured overnight financing rate
Tax ActTax Cuts and Jobs Act of 2017
TDR
Troubled debt restructuring, defined in ASC 310-40 “Receivables-Troubled Debt Restructurings by Creditors
UTBUnrecognized tax benefit
VIE / VOE
Variable interest entity / voting interest entity, defined in ASC 810-10 “Consolidation-Overall”
Webster Bank or the BankWebster Bank, National Association, a wholly-owned subsidiary of Webster Financial Corporation
Webster or the CompanyWebster Financial Corporation, collectively with its consolidated subsidiaries

iii


Table of Contents
PART 1
ITEM 1. BUSINESS
Company Overview
Webster Financial Corporation is a bank holding company and financial holding company under the Bank Holding Company Act of 1956, as amended (BHC Act), incorporated under the laws of Delaware in 1986, and headquartered in Waterbury, Connecticut. At December 31, 2019, Webster had assets of $30.4 billion, net loans and leases of $19.8 billion, deposits of $23.3 billion, and shareholders’ equity of $3.2 billion.
Webster had 3,298 full-time equivalent employees at December 31, 2019. Webster provides its employees with comprehensive benefits, some of which are provided on a contributory basis, including medical and dental plans, a 401(k) savings plan with a company matching contribution, life insurance, and short-term and long-term disability coverage.
Webster Financial Corporation’s common stock is traded on the New York Stock Exchange under the symbol WBS. Webster’s internet address is www.websterbank.com and investor relations internet address is www.wbst.com. Webster makes available free of charge on these websites its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, definitive proxy statements, and amendments, if any, to those documents filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934, as soon as practicable after it electronically files such material with, or furnishes it to, the United States Securities and Exchange Commission (SEC). These documents are also available to the public on the Internet at the SEC’s website at www.sec.gov. Information on Webster’s website and its investor relations website is not incorporated by reference into this report.
Subsidiaries of Webster Financial Corporation
Webster Financial Corporation’s principal consolidated subsidiary is Webster Bank (the Bank). Its other directly consolidated subsidiaries are Webster Wealth Advisors, Inc. and Webster Licensing, LLC. The Holding Company also owns all of the outstanding common stock of Webster Statutory Trust which is an unconsolidated financial vehicle that has issued, and may in the future issue, trust preferred securities.
Webster Bank’s significant direct subsidiaries include the following: Webster Servicing, which provides a variety of services to health savings accounts; Webster Mortgage Investment Corporation, a passive investment subsidiary whose primary function is to provide servicing on qualified passive investments, such as residential real estate and commercial mortgage real estate loans acquired from Webster Bank; Webster Business Credit Corporation, which offers asset-based lending services; and Webster Capital Finance, Inc., which offers equipment financing for end users of equipment. Webster Bank also has various other subsidiaries that are not significant to the consolidated group.
Business Segments
Webster Bank delivers a wide range of banking, investment, and financial services to individuals, families, and businesses through three reportable segments - Commercial Banking, HSA Bank, and Community Banking.
Commercial Banking provides lending, deposit, and treasury and payment solutions with a focus on building relationships with companies that have annual revenues greater than $25 million. Commercial Banking is comprised of the following:
Middle Market delivers a full array of financial services to a diversified group of companies, leveraging industry specialization and delivering competitive products and services, primarily in the Northeast.
Commercial Real Estate provides financing, primarily in the Northeast, for the acquisition, development, construction, or refinancing of commercial real estate for which the property is the primary security for the loan and income generated from the property is the primary repayment source.
Webster Business Credit Corporation is one of the top 25 asset-based lenders in the U.S. that builds relationships with growing middle market companies by financing core working capital and other financing needs primarily with revolving credit facilities with advance rates against accounts receivable and inventory. Webster Business Credit Corporation lends primarily in the eastern half of the U.S.
Webster Capital Finance offers small to mid-ticket financing for critical equipment, specializing in construction, transportation, environmental, and manufacturing equipment. Webster Capital Finance lends primarily in the eastern half of the U.S. and also in other select markets.
Treasury and payment solutions delivers a broad range of deposit, lending, treasury, and trade services, primarily in the Northeast, via a dedicated team of treasury professionals and local commercial bankers. Treasury and payment solutions is comprised of Government and Institutional Banking, Cash Management Sales, and Product Management to deliver holistic solutions to Webster’s increasingly sophisticated business and institutional clients.
Private Banking provides local, full relationship banking that serves high net worth clients, not-for-profit organizations, and business clients with asset management, financial planning services, trust services, loan products, and deposit products. These client relationships generate fee revenue on assets under management or administration, while a majority of the relationships also include lending and/or deposit accounts which provide net interest income and other ancillary fees.
1


Table of Contents
HSA Bank is a division of Webster Bank with a focus on providing health savings accounts, while also delivering health reimbursement arrangements and flexible spending and commuter benefit account administration services to employers and individuals in all 50 states. It is a leading bank administrator of health savings accounts based on assets under administration. Health savings accounts are distributed nationwide directly to employers and individual consumers as well as through national and regional insurance carriers, benefit consultants, and financial advisors. At December 31, 2019, HSA Bank had approximately 3 million accounts with more than $8.5 billion in health savings account deposits and linked investment balances.
Community Banking serves consumers and business banking customers primarily throughout southern New England and Westchester County, New York. Community Banking is comprised of personal and business banking, as well as a distribution network consisting of 157 banking centers, 309 ATMs, a customer care center, and a full range of web and mobile based banking services.
Personal Banking offers consumer deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit card products. In addition, investment and securities-related services, including brokerage and investment advice, are offered through a strategic partnership with LPL Financial Holdings Inc. (LPL), a broker dealer registered with the SEC, a registered investment advisor under federal and applicable state laws, a member of the Financial Industry Regulatory Authority (FINRA), and a member of the Securities Investor Protection Corporation (SIPC). Webster Bank has employees located throughout its banking center network who, through LPL, are registered representatives.
Business Banking offers credit, deposit, and cash flow management products to businesses and professional service firms with annual revenues of up to $25 million. This group builds broad customer relationships through business bankers and business certified banking center managers, supported by a team of customer care center bankers and industry and product specialists.
Competition
Webster is subject to strong competition from banks, thrifts, credit unions, non-bank health savings account trustees, consumer finance companies, investment companies, insurance companies, and online lending and savings institutions. Certain of these competitors are larger financial institutions with substantially greater resources, lending limits, larger branch systems, and a wider array of commercial and consumer banking services than Webster. Competition could intensify in the future as a result of industry consolidation, the increasing availability of products and services from non-bank entities, greater technological developments in the industry, and continued bank regulatory reforms.
Webster faces substantial competition for deposits and loans throughout its market areas. The primary factors in competing for deposits are interest rates, personalized services, the quality and range of financial services, convenience of office locations and hours, mobile banking and other automated services. Competition for deposits comes from other commercial banks, thrifts, credit unions, non-bank health savings account trustees, mutual funds, and other investment alternatives. The primary factors in competing for consumer and commercial loans are interest rates, loan origination fees, ease and convenience of loan origination channels, the quality and range of lending services, personalized service, and ability to close within customers’ desired time frame. Competition for origination of loans comes primarily from commercial banks, non-bank lenders, savings institutions, mortgage banking firms, mortgage brokers, online lenders, and insurance companies. Other factors which affect competition include the general and local economic conditions, current interest rate levels, and volatility in the lending markets.
Supervision and Regulation
Webster and its bank and non-bank subsidiaries are subject to comprehensive regulation under federal and state laws. The regulatory framework applicable to bank holding companies and their subsidiary banks is intended to protect depositors, the Federal Deposit Insurance Fund (DIF), and the U.S. banking system as a whole. This system is not designed to protect equity investors in bank holding companies. Set forth below is a summary of the significant laws and regulations applicable to Webster and its bank and non-bank subsidiaries. The description that follows is qualified in its entirety by reference to the full text of the statutes, regulations, and policies that are described. Such statutes, regulations, and policies are subject to ongoing review by Congress, state legislatures, and federal and state regulatory agencies. A change in any of the statutes, regulations, or regulatory policies applicable to Webster and its bank and non-bank subsidiaries could have a material effect on the results of the Company.
Webster Financial Corporation is a separate and distinct legal entity from Webster Bank and its other subsidiaries. As a registered bank holding company and a financial holding company, it is subject to inspection, examination, and supervision by the Board of Governors of the Federal Reserve System and is regulated under the BHC Act. Webster is under the jurisdiction of the SEC and is subject to the disclosure and other regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the SEC. Webster is subject to the rules for companies listed on the New York Stock Exchange. In addition, the Consumer Financial Protection Bureau (CFPB) supervises Webster for compliance with federal consumer financial protection laws. Webster is also subject to oversight by state attorneys general for compliance with state consumer protection laws. Webster’s non-bank subsidiaries are subject to federal and state laws and regulations, including regulations of the Federal Reserve System.
2


Table of Contents
Webster Bank is organized as a national banking association under the National Bank Act. Webster Bank is subject to the supervision of, and to regular examination by, the Office of the Comptroller of the Currency (OCC) as its primary federal regulator, as well as by the Federal Deposit Insurance Corporation (FDIC) as its deposit insurer. Webster Bank’s deposits are insured by the FDIC up to the applicable deposit insurance limits in accordance with FDIC laws and regulations.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) significantly changed the financial regulatory regime in the United States. Since the enactment of Dodd-Frank, U.S. banks and financial services firms have been subject to enhanced regulation and oversight. Several provisions of Dodd-Frank are subject to further rulemaking, guidance, and interpretation by the federal banking agencies. The current administration and its appointees to the federal banking agencies have expressed interest in reviewing, revising, and perhaps repealing portions of Dodd-Frank and certain of its implementing regulations.
As such, among other things, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA) amended certain provisions of Dodd-Frank as well as statutes administered by the Federal Reserve System, the FDIC, and the OCC. The amendments resulting from EGRRCPA provide limited regulatory relief for certain financial institutions and additional tailoring of banking and consumer protection laws, while preserving the existing framework under which U.S. financial institutions are regulated, including the discretionary authority of the Federal Reserve System, the FDIC, and the OCC to supervise bank holding companies and insured depository institutions.
In addition, EGRRCPA includes certain other banking-related consumer protection and securities law-related provisions. Many of these provisions must be implemented through rules adopted by the federal banking agencies and certain changes remain subject to substantial regulatory discretion of the federal banking agencies. Although the federal banking agencies have made progress on several rules required under EGRRCPA, its full impact remains unclear for the immediate future. The Company expects to continue to evaluate the potential impact of EGRRCPA as it is further implemented by the regulators.
Bank Holding Company Regulation
Webster Financial Corporation is a bank holding company as defined under the BHC Act. The BHC Act generally limits the business of bank holding companies to banking, managing or controlling banks, and other activities that the Board of Governors of the Federal Reserve System has determined to be so closely related to banking as to be a proper incident thereto. Bank holding companies that have elected to become financial holding companies, such as Webster Financial Corporation, may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the Board of Governors of the Federal Reserve System in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity, and that does not pose a substantial risk to the safety and soundness of depository institutions or the financial system (as solely determined by the Board of Governors of the Federal Reserve System). Activities that are financial in nature include securities underwriting and dealing, insurance underwriting, and making merchant banking investments.
Mergers and Acquisitions
The BHC Act, Bank Merger Act, and other federal and state statutes regulate the direct and indirect acquisition of depository institutions. The BHC Act requires Federal Reserve System prior approval for a bank holding company to acquire, directly or indirectly, 5% or more of any class of voting securities of a commercial bank or its parent holding company, and for a company other than a bank holding company to acquire 25% or more of any class of voting securities of a bank or bank holding company.  Under the Change in Bank Control Act, any person or company may not acquire, directly or indirectly, control of a bank without providing 60 days prior notice and receiving a non-objection from the appropriate federal banking agency. 
Under the Bank Merger Act, the prior approval of the appropriate federal banking agency is required for insured depository institutions to merge or enter into purchase and assumption transactions.  In reviewing applications seeking approval of merger or purchase and assumption transactions, the federal banking agencies will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined banks, the applicant’s performance record under the Community Reinvestment Act of 1977 (CRA), and the effectiveness of the merging banks in combating money laundering.
Enhanced Prudential Standards
Section 165 of Dodd-Frank imposes enhanced prudential standards on larger banking organizations. However, EGRRCPA makes bank holding companies with less than $100 billion in assets, such as Webster Financial Corporation, exempt from the enhanced prudential standards imposed under Section 165 including, but not limited to, the resolution planning and enhanced liquidity and risk management requirements therein. Further, on October 15, 2019, EGRRCPA was amended by raising the applicability threshold for company-run stress test requirements for bank holding companies from $10 billion or more in assets to $250 billion or more in assets. As a result, Webster Financial Corporation is relieved from the requirement to conduct company-run stress testing for itself and Webster Bank. However, while the federal banking agencies will not require company-run stress testing, the capital planning and risk management practices of the Company will continue to be reviewed through regular supervisory processes of the Federal Reserve System and the OCC. The Company will continue to perform certain stress tests internally and incorporate the economic models and information developed through its stress testing program into its risk management and business planning activities.
3


Table of Contents
Furthermore, under a previously issued rule of the Federal Reserve System implementing enhanced prudential standards required by Dodd-Frank, bank holding companies with more than $10 billion in assets were subject to certain rules, including a requirement to establish a separate risk committee of independent directors to manage enterprise-wide risk. EGRRCPA subsequently increased the asset threshold for requiring a bank holding company to establish a separate risk committee of independent directors from $10 billion to $50 billion. Notwithstanding the changes implemented by EGRRCPA, the Company has retained its Risk Committee of the Board of Directors.
Debit Card Interchange Fees
Dodd-Frank requires that any interchange transaction fee charged for a debit transaction be reasonable and proportional to the cost incurred by the issuer for the transaction and includes regulations that establish such fee standards, eliminate exclusivity arrangements between issuers and networks for debit card transactions, limit restrictions on merchant discounting for use of certain payment forms, and minimum-maximum amount thresholds as a condition for acceptance of credit cards. The Federal Reserve System, pursuant to Dodd-Frank, approved a final debit card interchange rule which caps an issuer’s base fee at 21 cents per transaction and allows for an additional amount equal to 5 basis points of the transaction's value. The Federal Reserve System separately issued a final rule that also allows a fraud-prevention adjustment of one-cent per transaction conditioned upon an issuer developing, implementing, and updating reasonably designed fraud-prevention policies and procedures.
Identity Theft
The SEC and the Commodity Futures Trading Commission (CFTC) jointly issued final rules and guidelines implementing the provisions of Dodd-Frank which require certain regulated entities to establish programs to address risks of identity theft. The rules require financial institutions and creditors to develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with certain existing accounts or the opening of new accounts. The rules include guidelines to assist entities in the formulation and maintenance of programs that would satisfy these requirements. In addition, the rules establish special requirements for any credit and debit card issuers that are subject to the jurisdiction of the SEC or the CFTC to assess the validity of notifications of changes of address under certain circumstances. Webster implemented an ID Theft Prevention Program, approved by its Board of Directors, in compliance with these requirements.
Volcker Rule
Section 619 of Dodd-Frank, commonly known as the Volcker Rule, restricts the ability of banking entities, such as Webster and Webster Bank, from: (i) engaging in proprietary trading and (ii) investing in or sponsoring certain covered funds, subject to certain limited exceptions. Under the Volcker Rule, the term covered funds is defined as any issuer that would be an investment company under the Investment Company Act but for the exemption in section 3(c)(1) or 3(c)(7) of that Act, which includes collateralized loan obligation securities (CLO) and collateralized debt obligation securities. There are also several exemptions from the definition of covered fund, including, among other things, loan securitization, joint ventures, certain types of foreign funds, entities issuing asset-backed commercial paper, and registered investment companies. The EGRRCPA and subsequent promulgation of inter-agency final rules have aimed to simplify and tailor requirements related to the Volcker Rule, including eliminating collection of certain metrics and reducing the compliance burdens associated with other metrics for banks with less than $20 billion in average trading assets and liabilities. The Federal Reserve has granted Webster until July 21, 2022 to bring its holdings into compliance with the Volcker Rule.
Dividends
The primary source of liquidity at the Holding Company is dividends from Webster Bank. Prior approval from the OCC is required for a national bank to declare a dividend in any year that would exceed the sum of its net income for that year and its undistributed net income for the preceding two years, less any required transfers to surplus. Webster Bank paid the Holding Company $360.0 million in dividends during the year ended December 31, 2019 and had $302.8 million of undistributed net income available for payment of dividends at December 31, 2019.
In addition, Webster Financial Corporation and Webster Bank are subject to other regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. Federal regulatory agencies are authorized to determine, under certain circumstances relating to the financial condition of a bank holding company or a bank, that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof. The federal banking agencies have indicated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsafe and unsound banking practice, and that banking organizations should generally pay dividends only out of current operating earnings.
4


Table of Contents
Federal Reserve System
Federal Reserve System regulations require depository institutions to maintain cash reserves against their transaction accounts, primarily interest-bearing and regular checking accounts. The required cash reserves can be in the form of vault cash and, if vault cash does not fully satisfy the required cash reserves, in the form of a balance maintained with Federal Reserve Banks (FRBs). The Board of Governors of the Federal Reserve System generally makes annual adjustments to the tiered cash reserve requirements. The regulations require that Webster maintain cash reserves against aggregate transaction accounts in excess of the exempt amount of $16.3 million at December 31, 2019. Effective January 16, 2020, amounts greater than $16.9 million up to and including $127.5 million have a reserve requirement of 3% and amounts in excess of $127.5 million have a reserve requirement of 10%. Webster Bank is in compliance with these cash reserve requirements.
As a national bank and member of the Federal Reserve System, Webster Bank is required to hold capital stock of the FRB of Boston. The required shares may be adjusted up or down based on changes to Webster Bank’s common stock and paid-in surplus. Webster Bank was in compliance with these requirements, with a total investment in FRB of Boston stock of $59.8 million at December 31, 2019. The FRBs pay, to member banks with total assets greater than $10 billion, a semi-annual dividend equal to the lesser of 6% or the yield on the 10-year Treasury note auctioned at the last auction prior to the dividend payment date. For the semi-annual period ended December 31, 2019, the FRB of Boston declared a cash dividend equal to an annual yield of 1.84%.
Federal Home Loan Bank System
The Federal Home Loan Bank (FHLB) System provides a central credit facility for member institutions. Webster Bank is a member of the FHLB of Boston and is required to purchase and hold shares of capital stock in the FHLB for both membership and activity-based purposes. Capital stock requirements include an amount equal to 0.35% of the aggregate principal amount of the Bank’s unpaid residential mortgage loans and similar obligations at the beginning of each year, up to a maximum of $25 million, plus an amount that varies from 3.0% to 4.5% depending on the maturities of its FHLB advances, which totaled approximately $1.9 billion at December 31, 2019. Webster Bank was in compliance with these requirements, with a FHLB stock investment of $89.3 million at December 31, 2019. On November 4, 2019, the FHLB paid a quarterly cash dividend equal to an annual yield of 5.73%.
Source of Strength Doctrine
Federal Reserve System policy requires bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. Section 616 of Dodd-Frank codified the requirement that bank holding companies act as a source of financial strength. As a result, Webster Financial Corporation is expected to commit resources to support Webster Bank, including at times when Webster Financial Corporation may not be in a financial position to provide such resources. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary banks. The U.S. bankruptcy code provides that, in the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to priority of payment. In addition, under the National Bank Act, if the capital stock of Webster Bank is impaired by losses or otherwise, the OCC is authorized to require payment of the deficiency by assessment upon the Holding Company. If the assessment is not paid within three months, the OCC could order a sale of the Webster Bank stock held by Webster Financial Corporation to cover any deficiency.
Capital Adequacy
The Federal Reserve System, the OCC, and the FDIC adopted Capital Rules in accordance with BASEL III, which generally implement the capital framework for strengthening international capital standards. The Capital Rules define the components of regulatory capital, as well as address other issues affecting the numerator in the regulatory capital ratios of a banking institution. The Capital Rules also address asset risk weights and other matters affecting the denominator in the regulatory capital ratios of a banking institution.
The Capital Rules (i) include the capital measure Common Equity Tier 1 Capital, defined by Basel III capital rules (CET1 capital) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 capital and additional Tier 1 capital instruments meeting certain revised requirements; (iii) mandate that most deductions or adjustments to regulatory capital measures be made to CET1 capital and not to the other components of capital; and (iv) expand the scope of deductions from and adjustments to capital as compared to existing regulations.
Under the Capital Rules, for most banking organizations, including Webster, the most common form of additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and the qualifying portion of the allowance for loan and lease losses (ALLL), all subject to specific requirements of the Capital Rules. Tier 1 capital to adjusted, as defined, average consolidated assets is known as the Tier 1 leverage ratio.
5


Table of Contents
Pursuant to the Capital Rules, ratio thresholds are as follows:
 Adequately CapitalizedWell Capitalized
CET1 risk-based capital4.5 %6.5 %
Total risk-based capital8.0  10.0  
Tier 1 risk-based capital6.0  8.0  
Tier 1 leverage capital 4.0  5.0  
The Capital Rules, which became fully phased-in on January 1, 2019, in addition to the minimum risk-weighted asset ratios, also include a capital conservation buffer composed entirely of CET1 capital. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions must hold a capital conservation buffer above its minimum risk-based capital requirements in order to avoid limitations on distributions, such as dividends, equity, other capital instrument repurchases, and certain discretionary bonus payments to executive officers, based on the amount of any shortfall. The capital standards applicable to Webster and Webster Bank include an additional capital conservation buffer for which the lowest capital ratio excess over adequately capitalized must be at least 2.5%.
The Capital Rules provide for a number of deductions from and adjustments to CET1 capital. These include, for example, the requirement that mortgage servicing assets, certain deferred tax assets (DTAs), and significant investments in non-consolidated financial institutions be deducted from CET1 capital to the extent that any one such category exceeds 10% of CET1 capital or all such items in the aggregate exceed 15% of CET1 capital.
Under the Basel III Rule, certain off-balance sheet commitments and obligations are converted into risk-weighted assets that, together with on-balance sheet assets, are the base against which regulatory capital is measured. The risk-weighting categories are standardized for bank holding companies and banks based on a risk-sensitive analysis, depending on the nature of the exposure. Risk weights range from 0% for U.S. government securities to 1,250% for exposures such as certain tranches of securitization or certain equity exposures.
In September 2017, the federal banking agencies proposed simplifying the Capital Rules. On July 9, 2019, the federal banking agencies adopted a final rule, replacing a substantially similar interim rule, to simplify several requirements of the regulatory capital rules for non-advanced approaches institutions, such as the Company. The final rule simplifies the capital treatment for mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interests.
Prompt Corrective Action and Safety and Soundness
Pursuant to Section 38 of the Federal Deposit Insurance Act, federal banking agencies are required to take prompt corrective action should an insured depository institution fail to meet certain capital adequacy standards. At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on payment of dividends, and restrictions on the acceptance of brokered deposits. Furthermore, if an insured depository institution is classified in one of the under-capitalized categories, it is required to submit a capital restoration plan to the appropriate federal banking agency, and the holding company must guarantee the performance of that plan.
Prompt corrective action ratios are as follows:
 WellAdequatelyUnderSignificantly
CapitalizedCapitalizedCapitalizedUnder-Capitalized
CET1 risk-based capital6.5 %4.5 %< 4.5%  < 3.0%  
Total risk-based capital10.0  8.0  < 8.0  < 6.0  
Tier 1 risk-based capital8.0  6.0  < 6.0  < 4.0  
Tier 1 leverage capital 5.0  4.0  < 4.0  < 3.0  
Based upon its capital levels, a bank that is classified as well capitalized, adequately capitalized, or under-capitalized may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition or practice warrants such treatment. An insured depository institution with a ratio of tangible equity to total assets that is less than 2% is considered critically under-capitalized.
Bank holding companies and insured depository institutions may also be subject to potential enforcement actions of varying levels of severity by the federal banking agencies for unsafe or unsound practices in conducting their business, or for violation of any law, rule, regulation, condition imposed in writing by the agency, or term of a written agreement with the agency. In more serious cases, enforcement actions may include the issuance of directives to increase capital; the issuance of formal and informal agreements; the imposition of civil monetary penalties; the issuance of a cease and desist order that can be judicially enforced; the issuance of removal and prohibition orders against officers, directors, and other institution affiliated parties; the termination of the insured depository institution’s deposit insurance; the appointment of a conservator or receiver for the insured depository institution; and the enforcement of such actions through injunctions or restraining orders based upon a judicial determination that the FDIC, as receiver, would be harmed if such equitable relief was not granted.
6


Table of Contents
Transactions with Affiliates and Insiders
Under federal law, transactions between insured depository institutions and their affiliates are governed by Sections 23A and 23B of the Federal Reserve Act (FRA) and Federal Reserve Regulation W. In a bank holding company context, at a minimum, the parent holding company of a bank, and any companies which are controlled by such parent holding company, are affiliates of the bank. Generally, sections 23A and 23B of the FRA are intended to protect insured depository institutions from losses arising from transactions with non-insured affiliates by limiting the extent to which a bank or its subsidiaries may engage in covered transactions with any one affiliate and with all affiliates of the bank in the aggregate, and requiring that such transactions be on terms consistent with safe and sound banking practices.
Further, Section 22(h) of the FRA and its implementing Regulation O restricts loans to directors, executive officers, and principal stockholders or insiders. Under Section 22(h), loans to insiders and their related interests may not exceed, together with all other outstanding loans to such persons and affiliated entities, the institution’s total capital and surplus. Loans to insiders above specified amounts must receive the prior approval of the Board of Directors. Further, under Section 22(h) of the FRA, loans to directors, executive officers, and principal stockholders must be made on terms substantially the same as offered in comparable transactions to other persons, except that such insiders may receive preferential loans made under a benefit or compensation program that is widely available to the bank’s employees and does not give preference to the insider over the employees. Section 22(g) of the FRA places additional limitations on loans to executive officers.
Consumer Protection and Consumer Financial Protection Bureau Supervision
Dodd-Frank centralized responsibility for consumer financial protection by creating the CFPB, an independent agency charged with responsibility for implementing, enforcing, and examining compliance with federal consumer financial protection laws. The Company is subject to a number of federal and state laws designed to protect borrowers and promote lending to various sectors of the economy and population. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Procedures Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Practices Act, various state law counterparts, and the Consumer Financial Protection Act of 2010, which is part of Dodd-Frank. Dodd-Frank does not prevent states from adopting stricter consumer protection standards. State regulation of financial products and potential enforcement actions could also adversely affect the Company’s business, financial condition or operations.
The ability-to-repay provision of the Truth in Lending Act requires creditors to make reasonable, good faith determinations that borrowers are able to repay their mortgages before extending the credit based on a number of factors and consideration of financial information about the borrower from reasonably reliable third-party documents. Under Dodd-Frank and the qualified mortgage provisions of the Truth in Lending Act, commonly known as the Qualified Mortgage (QM) Rule, loans meeting the definition of qualified mortgage are entitled to a presumption that the lender satisfied the ability-to-repay requirements. The presumption is a conclusive presumption/safe harbor for prime loans meeting QM requirements and a refutable presumption for higher-priced/subprime loans meeting QM requirements. The QM definition incorporates the statutory requirements, such as not allowing negative amortization or terms longer than 30 years. The QM Rule also adds an explicit maximum 43% debt-to-income ratio for borrowers if the loan is to meet the QM definition, though some mortgages that meet GSE, FHA, and VA underwriting guidelines may, for a period not to exceed seven years, meet the QM definition without being subject to the 43% debt-to-income limits. The CFPB is expected to continue to issue and amend rules implementing the consumer financial protection laws, which may impact Webster Bank’s operations.
Financial Privacy and Data Security
Webster is subject to federal laws, including the Gramm-Leach-Bliley Act and certain state laws containing consumer privacy protection provisions. These provisions limit the ability of banks and other financial institutions to disclose nonpublic information about consumers to affiliated and non-affiliated third parties and limit the reuse of certain consumer information received from non-affiliated financial institutions. These provisions require notice of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain nonpublic personal information to affiliates or non-affiliated third parties by means of opt-out or opt-in authorizations.
The Gramm-Leach-Bliley Act requires that financial institutions implement comprehensive written information security programs that include administrative, technical, and physical safeguards to protect consumer information. Federal banking agencies have also adopted guidelines for establishing information security standards and programs to protect such information. These guidelines, along with related regulatory materials, increasingly focus on risk management and processes related to information technology and the use of third-parties in the provision of financial products and services. The federal bank regulatory agencies expect financial institutions to establish lines of defense and to ensure that their risk management processes address the risk posed by compromised customer credentials, and also expect financial institutions to maintain sufficient business continuity planning processes to ensure rapid recovery, resumption, and maintenance of the institution’s operations after a cyber attack.
7


Table of Contents
Further, pursuant to interpretive guidance issued under the Gramm-Leach-Bliley Act and certain state laws, financial institutions are required to notify customers of security breaches that result in unauthorized access to their non-public personal information. In October 2016, the federal bank regulatory agencies issued proposed rules on enhanced cybersecurity risk-management and resilience standards that would apply to very large financial institutions and to services provided by third parties to these institutions. The comment period for these proposed rules has closed and a final rule has not been published. Although the proposed rules would apply only to bank holding companies and banks with $50 billion or more in total consolidated assets, these rules could influence the federal bank regulatory agencies’ expectations and supervisory requirements for information security standards and cybersecurity programs of financial institutions with less than $50 billion in total consolidated assets, such as the Company.
Depositor Preference
The Federal Deposit Insurance Act provides that, in the event of the liquidation or other resolution of an insured depository institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including the parent bank holding company, with respect to any extensions of credit they have made to such insured depository institution.
Federal Deposit Insurance
The FDIC’s deposit insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. Substantially all of the deposits of Webster Bank are insured up to applicable limits by the DIF of the FDIC and are subject to deposit insurance assessments to maintain the DIF.
The Bank’s quarterly assessment is calculated using the FDIC’s standardized risk-based assessment methodology, determined by the FDIC, which multiplies the Bank’s assessment base by its assessment rate. The assessment base is defined as the average consolidated total assets less the average tangible equity of the Bank. The assessment rate is based on measures of the institution’s capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk, commonly known as CAMELS ratings, which are certain financial measures to assess an institution’s ability to withstand asset-related stress and funding-related stress, and a measure of loss severity that estimates the relative magnitude of potential losses to the FDIC in the event of the Bank’s failure. The FDIC also has the ability to make discretionary adjustments to the base assessment rate to reflect idiosyncratic quantitative and qualitative risk factors not captured in the FDIC’s standardized risk-based assessment methodology.
Under the Federal Deposit Insurance Act, the FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order, or condition imposed by the FDIC. Webster’s management is not aware of any practice, condition, or violation that might lead to the termination of its deposit insurance.
Incentive Compensation
Dodd-Frank required the federal banking agencies and the SEC to establish joint regulations or guidelines for specified regulated entities with at least $1 billion in total consolidated assets, which includes the Holding Company and Webster Bank, prohibiting incentive-based payment arrangements that encourage inappropriate risks by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity. The federal banking agencies and the SEC proposed regulations which have not yet been finalized. If the regulations are adopted in the form initially proposed in 2016, they will restrict the manner in which executive compensation is presently structured.
Community Reinvestment Act and Fair Lending Laws
Webster Bank has a responsibility under the CRA, as implemented by OCC regulations to help meet the credit needs of its communities, including low and moderate-income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community. The OCC examines Webster Bank’s record of compliance with the CRA. In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit discrimination in lending practices on the basis of characteristics specified in those statutes. Webster Bank’s failure to comply with the provisions of the CRA could, at a minimum, result in regulatory restrictions on its activities and the activities of Webster Financial Corporation. Webster Bank’s failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions against it by the OCC, as well as other federal regulatory agencies, including the CFPB and the Department of Justice. Webster Bank’s latest OCC CRA rating was Outstanding.
8


Table of Contents
On December 17, 2019, the OCC and the FDIC issued a joint notice of proposed rulemaking to modernize the regulations implementing the CRA. The proposed rule, if finalized, will apply to all insured banks, such as Webster Bank. Under the rulemaking, the federal banking agencies intend to (i) clarify which activities qualify for CRA credit, (ii) update where activities count for CRA credit, (iii) create a more transparent and objective method for measuring CRA performance, and (iv) provide for more transparent, consistent, and timely CRA-related data collection, record keeping, and reporting. Webster Financial Corporation and Webster Bank expect to monitor developments with respect to this rulemaking and assess the impact, if any, of changes to the CRA regulations proposed by the federal banking agencies.
USA PATRIOT Act
Under Title III of the USA PATRIOT Act, all financial institutions are required to take certain measures to identify their customers, prevent money laundering, monitor customer transactions, and report suspicious activity to U.S. law enforcement agencies. Financial institutions also are required to respond to requests for information from federal banking agencies and law enforcement agencies. Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the Gramm-Leach-Bliley Act and other privacy laws. Financial institutions that hold correspondent accounts for foreign banks or provide private banking services to foreign individuals are required to take measures to avoid dealing with certain foreign individuals or entities, including foreign banks with profiles that raise money laundering concerns, and are prohibited from dealing with foreign “shell banks” and persons from jurisdictions of particular concern. The primary federal banking agencies and the Secretary of the Treasury have adopted regulations to implement several of these provisions. All financial institutions also are required to establish internal anti-money laundering programs. The effectiveness of a financial institution in combating money laundering activities is a factor to be considered in any application submitted by the financial institution under the Bank Merger Act. Webster has in place a Bank Secrecy Act and USA PATRIOT Act compliance program and engages in very few transactions of any kind with foreign financial institutions or foreign persons.
Office of Foreign Assets Control Regulation
The United States government has imposed economic sanctions that affect transactions with designated foreign countries, nationals, and others. These are typically known as the “OFAC” rules based on their administration by the U.S. Treasury Department Office of Foreign Assets Control. The Office of Foreign Assets Control-administered sanctions targeting countries take many different forms. Generally, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on U.S. persons engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country; and (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (property and bank deposits) cannot be paid out, withdrawn, set off, or transferred in any manner without a license from the Office of Foreign Assets Control. Failure to comply with these sanctions could have serious legal and reputational consequences.
Future Legislative Initiatives
Federal and state legislatures may introduce legislation that will impact the financial services industry. In addition, federal banking agencies may introduce regulatory initiatives that are likely to impact the financial services industry, generally. Such initiatives may include proposals to expand or contract the powers of bank holding companies and/or depository institutions or proposals to substantially change the financial institution regulatory system. Such legislation could change banking statutes and the operating environment of the Company in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. The Company cannot predict whether any such legislation will be enacted, or, if enacted, the effect that it or any implementing regulations would have on the financial condition or results of operations of the Company. A change in statutes, regulations, or regulatory policies applicable to Webster or any of its subsidiaries could have a material effect on the business of the Company.
Risk Management Framework
Webster maintains a comprehensive risk management program with a defined enterprise risk management framework which provides a structured approach for identifying, assessing, and managing risks across the Company in a coordinated manner, including strategic and reputational, credit, information security and technology, operational and compliance, market, liquidity, and capital risks as discussed in detail in the sections below.
Strategic and Reputational Risks
The enterprise risk management framework enables the aggregation of risk across the enterprise and ensures the Company has the tools, programs, and processes in place to support informed decision making in order to anticipate risks before they materialize and to maintain Webster’s risk profile consistent with its risk strategy and appetite.
9


Table of Contents
The enterprise risk management framework includes a risk appetite statement approved annually by the Board of Directors. The risk appetite statement is supported by board and business level scorecards with defined risk tolerances that indicate the level of risk that the Company is willing to accept. The risk appetite is refreshed annually to ensure alignment of risk appetite with Webster’s strategy and financial plan.
Webster promotes proactive risk management by all employees and clear ownership and accountability across three lines of defense to enable an effective and credible challenge in line with Webster’s strong risk culture. Employees in each line of business serve as the first line of defense and have responsibility for identifying, managing and owning the risks in their businesses. Risk and enterprise support functions serve as the second line of defense and are responsible for providing guidance, oversight, and challenge to the first line of defense. Internal Audit and Credit Risk Review, both of which report independently of management, serve as the third line of defense and ensure through review and testing that appropriate risk management controls, processes, and systems are in place and functioning effectively.
The Risk Committee of the Board of Directors, comprised of independent directors, oversees all of Webster’s risk-related matters and provides input and guidance to the Board of Directors and the executive team, as appropriate. Webster’s Enterprise Risk Management Committee (ERMC), which reports directly to the Risk Committee of the Board of Directors, is chaired by the Chief Risk Officer and is comprised of Webster’s executive management and senior risk officers.
The Chief Risk Officer is responsible for establishing and maintaining Webster’s enterprise risk management framework and overseeing credit risk, operational and compliance risk, Bank Secrecy Act compliance and loan workout/recovery programs. The Corporate Treasurer, who reports to the Chief Financial Officer, is responsible for overseeing market, liquidity, and capital risk management activities. The Chief Information Officer, who reports to the Chief Executive Officer, is responsible for overseeing information security and technology risk management activities.
Credit Risk
Webster manages and controls credit risk in its loan and investment portfolios through established underwriting practices, adherence to standards, and utilization of various portfolio and transaction monitoring tools and processes. Credit policies and underwriting guidelines provide limits on exposure and establish various other standards as deemed necessary and prudent. Additional approval requirements and reporting are implemented to ensure proper risk identification, decision rationale, risk ratings, and disclosure of policy exceptions.
Credit risk management policies and transaction approvals are managed under the supervision of the Chief Credit Officer who reports to the Chief Risk Officer. The Chief Credit Officer and team of credit executives are independent of the loan production and treasury functions. The credit risk function oversees the underwriting, approval, and portfolio management process, establishes and ensures adherence to credit policies, and manages the collections and problem asset resolution activities.
As part of credit risk management governance, Webster has an established Credit Risk Management Committee that meets regularly to review key credit risk topics, issues, and policies. The Credit Risk Management Committee reviews Webster’s credit risk scorecard, which covers key risk indicators and limits established as part of the Company’s risk appetite framework. The Credit Risk Management Committee is chaired by the Chief Credit Officer and includes senior managers responsible for lending as well as senior managers from the credit risk management function. Important findings regarding credit quality and trends within the loan and investment portfolios are regularly reported by the Chief Credit Officer to the ERMC and Risk Committee of the Board of Directors.
In addition to the credit risk management team, there is an independent Credit Risk Review function that assesses risk ratings and credit underwriting process for all areas of the organization that incur credit risk. The head of Credit Risk Review reports directly to the Risk Committee of the Board of Directors and administratively to the Chief Risk Officer. Credit Risk Review findings are reported to the Credit Risk Management Committee, ERMC, and Risk Committee of the Board of Directors. Corrective measures are monitored and tested to ensure risk issues are mitigated or resolved.
Information Security and Technology Risks
The use of technology to store and process information and an increasing use of mobile devices and cloud technologies to conduct financial transactions exposes Webster to the risk of potential operational disruption or information security incidents. Sources of these risks include deliberate or accidental acts by employees, external parties, technology failure, third-party security practices, and environmental factors. Webster is committed to detecting, preventing, and responding to incidents that may impact the confidentiality, integrity, and availability of information assets, and has established a comprehensive information security and technology program under the direction of the Chief Information Security Officer. Webster's information technology risk function is responsible for the technology risk framework and associated policies, procedures, and processes. Oversight of both the information security and information technology risk programs is provided by the Information Risk Committee, which is chaired by the Director of Information Technology Risk.
10


Table of Contents
Operational and Compliance Risks
Operational risk represents the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. The Operational Risk function is responsible for establishing processes and tools to identify, manage, and aggregate operational risk across the organization; providing guidance and advice on operational risk matters; and educating the organization on operational risks. Compliance risk represents the risk of non-adherence to applicable laws and regulations, including fines penalties and reputation damage. Specific programs and functions have been implemented to manage the risks associated with legal and regulatory requirements, suppliers and other third-parties, information security, business disruption, fraud, analytical and forecasting models, and new products and services.
Webster’s Operational Risk Management Committee, which consists of senior risk officers and senior managers responsible for operational and compliance risk management across the Company, periodically reviews the aforementioned programs, as well as key operational risk trends, issues, and mitigation activities. The Director of Enterprise and Operational Risk Management chairs the Operational Risk Management Committee and is responsible for overseeing the development and implementation of Webster’s operational risk management framework.
Market Risk
Market risk refers to the risk of loss arising from adverse changes in interest rates, foreign currency exchange rates, commodity prices, and other relevant market rates and prices, such as equity prices. The risk of loss is assessed from the perspective of adverse changes in fair values, cash flows, and future earnings. Due to the nature of its operations, Webster is primarily exposed to interest rate risk. Webster’s interest rate sensitivity is monitored on an ongoing basis by its Asset/Liability Committee (ALCO). The primary goal of ALCO is to manage interest rate risk to maximize earnings and net economic value in changing interest rate and business environments, subject to Board approved risk limits. ALCO is chaired by Webster’s Corporate Treasurer and members include the Chief Executive Officer, Chief Financial Officer, Chief Risk Officer, and Heads of Commercial and Community Banking. ALCO activities and findings are regularly reported to the ERMC and the Board of Directors.
Liquidity Risk
Liquidity risk refers to the ability to meet a demand for funds by converting assets into cash or cash equivalents and by increasing liabilities at an acceptable cost. Liquidity management for Webster Bank involves maintaining the ability to meet day-to-day and longer-term cash flow requirements of customers, whether they are depositors wishing to withdraw funds or borrowers requiring funds to meet their credit needs. Sources of funds include deposits, borrowings, or sales of assets such as unencumbered investment securities.
The Holding Company requires funds for dividends to shareholders, payment of debt obligations, repurchase of shares, potential acquisitions, and for general corporate purposes. Its sources of funds include dividends from Webster Bank, income from investment securities, and the issuance of equity and debt in the capital markets.
Both the Holding Company and Webster Bank maintain a level of liquidity necessary to achieve their business objectives under both normal and stressed conditions. Liquidity risk is monitored and managed by ALCO and reviewed regularly with the ERMC and the Board of Directors.
Capital Risk
Webster aims to maintain adequate capital in both normal and stressed environments to support its business objectives and risk appetite. ALCO monitors regulatory and tangible capital levels according to regulatory requirements and management operating ranges and recommends capital conservation, generation, and/or deployment strategies. ALCO also has responsibility for the annual capital plan, capital ratio range setting, contingency planning and stress testing, which are all reviewed and approved by the ERMC and the Board of Directors at least annually.
Internal Audit
Internal Audit provides independent, objective assurance and advisory services by applying a risk-based approach to selectively test and evaluate the design and operating effectiveness of applicable internal controls throughout the Company. This evaluation function brings a systematic and disciplined approach to enhancing the effectiveness of the Company’s governance, risk management, and internal control processes.
Results of Internal Audit reviews are reported to management and the Audit Committee of the Board of Directors. Corrective measures are monitored to ensure risk issues are mitigated or resolved. The General Auditor reports functionally to the Audit Committee and administratively to the Chief Executive Officer. The appointment or replacement of the General Auditor is overseen by the Audit Committee.
Additional information on risks and uncertainties and additional factors that could affect the Company’s results of operations can be found in Item 1A and elsewhere within this Form 10-K for the year ended December 31, 2019, and in other reports Webster Financial Corporation files with the SEC.
11


Table of Contents
ITEM 1A. RISK FACTORS
Investment in our securities involves risks and uncertainties, some of which are inherent in the financial services industry and others of which are more specific to our business. The discussion below addresses the material risks and uncertainties, of which we are currently aware, that could adversely affect our business and impact results of operations or financial condition. Before making an investment decision, you should carefully consider the risks and uncertainties described below together with all of the other information included or incorporated by reference in this report. If any of the events or circumstances described in the following risks factors actually occurs, our business, results of operations, or financial condition could be harmed as a result.
Risks Relating to the Economy, Financial Markets, and Interest Rates
Difficult conditions in the economy and the financial markets may have a materially adverse effect on our business, financial condition and results of operations.
Our financial performance is highly dependent upon the business environment in the markets where we operate and in the United States as a whole. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, decreases in business activity, weakening of investor or business confidence, limitations on the availability or increases in the cost of credit and capital, increases in inflation, changes in interest rates, changes in laws, high unemployment, national and international political turmoil, the imposition of tariffs on trade, natural disasters or a combination of these or other factors.
In particular, we may face the following risks in connection with developments in the current economic and market environment:
consumer and business confidence levels may decline and lead to less credit usage and increases in delinquencies and default rates;
our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage, and underwrite our customers become less predictive of future behaviors;
customer desire to do business with us may decline, whether as a result of a decreased demand for loans or other financial products and services or decreased deposits or other investments in accounts with us;
competition in our industry could intensify as a result of the continued consolidation of financial services companies and changes in financial services technologies; and
the effects of recent and proposed changes in laws.
The business environment and financial markets in the U.S. have experienced volatility in recent years and may continue to do so for the foreseeable future. There can be no assurance that economic conditions will not worsen. Difficult economic conditions could adversely affect our business, results of operations and financial condition.
Changes in local economic conditions could adversely affect our business.
A significant percentage of our loans are secured by real estate, primarily across the Northeast. Our success depends in part upon economic conditions in Southern New England and our other geographic markets. Adverse changes in such local markets could reduce our growth in loans and deposits, impair our ability to collect our loans, increase problem loans and charges-offs, and otherwise negatively affect our performance and financial condition.
The soundness of other financial institutions could adversely affect our business.
Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services companies are interrelated as a result of trading, clearing, counterparty or other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, mutual and hedge funds, and other institutional clients. As a result, defaults by, or even rumors or questions about, one or more financial services companies, or the financial services industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or by other institutions. Many of these transactions expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk may be exacerbated if the collateral held by us cannot be realized or is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure due us. There is no assurance that any such losses would not materially and adversely affect our business, financial condition, or results of operations.
We may not pay dividends if we are not able to receive dividends from our subsidiary, Webster Bank.
We are a separate and distinct legal entity from our banking and non-banking subsidiaries and depend on the payment of cash dividends from Webster Bank and our existing liquid assets as the principal sources of funds for paying cash dividends on our common stock. Unless we receive dividends from Webster Bank or choose to use our liquid assets, we may not be able to pay dividends. Webster Bank’s ability to pay dividends is subject to its ability to earn net income and to meet certain regulatory requirements. See the sub-section captioned “Dividends” in Item 1 of this report for a discussion of regulatory and other restrictions on dividend declarations.
12


Table of Contents
Changes in interest rates and spreads could have an impact on earnings and financial condition which could have a negative impact on the value of our stock.
Our consolidated earnings and financial condition are dependent to a large degree upon net interest income, which is the difference between interest earned from loans and investments and interest paid on deposits and borrowings. The narrowing of interest rate spreads could adversely affect our earnings and financial condition. We cannot predict with certainty or control changes in interest rates. Regional and local economic conditions and the policies of regulatory authorities, including monetary policies of the FRB, affect interest income and interest expense. While we have ongoing policies and procedures designed to manage the risks associated with changes in market interest rates, changes in interest rates still may have an adverse effect on our profitability. For example, high interest rates could affect the amount of loans that we can originate because higher rates could cause customers to apply for fewer mortgages, cause depositors to shift funds from accounts that have a comparatively lower cost to accounts with a higher cost, or cause us to experience customer attrition due to competitor pricing. If the cost of interest-bearing deposits increases at a rate greater than the yields on interest-earning assets increase, net interest income will be negatively affected. Changes in the asset and liability mix may also affect net interest income. Similarly, lower interest rates cause higher yielding assets to prepay and floating or adjustable rate assets to reset to lower rates. If we were not able to reduce our funding costs sufficiently, due to either competitive factors or the maturity schedule of existing liabilities, then our net interest margin would decline.
The uncertainty about the future of London Interbank Offered Rate (LIBOR) may adversely impact our business.
The United Kingdom Financial Conduct Authority, the authority that regulates LIBOR, has announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021, which may result in the use of LIBOR in financial contracts being phased out by the end of 2021. The Alternative Reference Rates Committee (ARRC) has proposed that the secured overnight financing rate (SOFR) represents best practice as the alternative to LIBOR for use in derivatives and other financial contracts that are currently indexed to LIBOR. ARRC has proposed a paced market transition plan to SOFR from LIBOR, and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to LIBOR. It is not possible at this time to predict what rate or rates may become accepted alternatives to LIBOR, or what the effect of any such changes in views or alternatives may be on the markets for LIBOR-indexed financial instruments. The market transition away from LIBOR to an alternative reference rate, such as SOFR, is complex and could have a range of adverse effects on our loan and lease and investment portfolios, asset-liability management, business, financial condition, and results of operations. Webster has interest rate swap agreements and other instruments that are indexed to LIBOR and is currently monitoring and evaluating this activity and the related risks.
Our stock price can be volatile.
Stock price volatility may negatively impact the price at which our common stock may be sold, and may also negatively impact the timing of any sale. Our stock price can fluctuate widely in response to a variety of factors, among other things:
actual or anticipated variations in operating results;
changes in recommendations by securities analysts;
operating and stock price performance of other companies that investors deem comparable to us;
news reports relating to trends, concerns, and other issues in the financial services and healthcare industries;
new technology used or services offered by competitors;
perceptions in the marketplace regarding us and/or our competitors;
significant acquisitions or business combinations, strategic partnerships, joint ventures, or capital commitments by or involving us or our competitors;
failure to integrate acquisitions or realize anticipated benefits from acquisitions;
additional investments from third parties;
issuance of additional shares of stock;
changes in government regulations or actions by government regulators; and
geo-political conditions such as acts or threats of terrorism or military conflicts.
General market fluctuations, industry factors, and general economic and political conditions and events, such as economic slowdowns or recessions, interest rate changes, credit loss trends, or currency fluctuations, could also cause our stock price to decrease regardless of our operating results.
13


Table of Contents
Regulatory, Compliance, Environmental and Legal Risks
We are subject to extensive government regulation and supervision, which may interfere with our ability to conduct our business and may negatively impact our financial results.
We, primarily through Webster Bank and certain non-bank subsidiaries, are subject to extensive federal and state regulation and supervision. Banking regulations are intended to protect depositors’ funds, the DIF, and the safety and soundness of the banking system as a whole, not shareholders. These regulations affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations, and policies for possible changes. Changes to statutes, regulations, or regulatory policies, including changes in interpretation or implementation of statutes, regulations, or policies, could affect us in substantial and unpredictable ways. Such changes could subject us to additional costs, limit the types of financial services and products we may offer, and/or limit what we may charge for certain banking services, among other things. Additionally, recent changes to the legal and regulatory framework governing our operation, including the continued implementation of Dodd-Frank and EGRRCPA, have and will continue to affect the lending, investment, trading, and operating activities of financial institutions and their holding companies. Dodd-Frank imposed additional regulatory obligations and increased scrutiny from federal banking agencies. In general, we expect this focus to continue and compliance requirements can be costly to implement. Compliance personnel and resources may increase our costs of operations and adversely impact our earnings.
Failure to comply with laws, regulations, or policies could result in sanctions by regulatory agencies, civil money penalties, and/or reputation damage, which could have a material adverse effect on our business, financial condition, and results of operations.
While we have policies and procedures designed to prevent any such violations, there can be no assurance that such violations will not occur. See the section captioned “Supervision and Regulation” in Item 1 of this report for further information.
Changes in accounting standards and policies could materially impact how we report our results of operations and financial condition.
Our accounting policies and methods are fundamental to how we record and report our results of operations and financial condition. Accordingly, we exercise judgment in selecting and applying these accounting policies and methods so they comply with U.S. Generally Accepted Accounting Principles (GAAP). The Financial Accounting Standards Board (FASB), regulatory agencies, and other bodies that establish accounting standards periodically change the financial accounting and reporting standards governing the preparation of our financial statements. Additionally, those bodies may change prior interpretations or positions on how these standards should be applied. The impact of these changes can be difficult to predict and can materially impact how we report our results of operations and financial condition. We could be required to apply new or revised guidance retrospectively, which may result in the revision of prior period financial statements by material amounts. Such changes could also require the Company to incur additional personnel, technology, or other costs. For example, under CECL, the new accounting standard on credit losses which became effective for us on January 1, 2020, credit losses on loans and held-to-maturity securities and other financial assets carried at amortized cost will be required to be recognized earlier than in the past. The CECL methodology requires that “expected lifetime credit losses” be recorded at the time the financial asset is originated or acquired, with adjustments each period to the extent the estimate for “expected lifetime credit losses” have changed. The CECL methodology replaces the existing impairment models under GAAP that generally require that a loss be incurred before it is recognized. A discussion of accounting standards recently adopted and issued but not yet adopted, including CECL, can be found in Note 1 to the Consolidated Financial Statements.
Health care reforms could adversely affect our HSA Bank division, revenues, financial position and results of operations.
The enactment of health care reforms affecting health savings accounts at the federal or state level may affect our HSA Bank division, which is a bank custodian of health savings accounts. We cannot predict if any such reforms will ultimately become law, or, if enacted, what their terms or the regulations promulgated pursuant to such laws will be. Any health care reforms enacted may be phased in over a number of years but, if enacted, could, with respect to the operations of our HSA Bank, reduce revenues, increase costs, and require us to revise the ways in which we conduct business or put us at risk for loss of business. In addition, our results of operations, financial position, and cash flows could be materially adversely affected by such changes.
Changes in the federal, state or local tax laws may negatively impact our financial performance. 
We are subject to changes in tax law that could increase our effective tax rates. While the Tax Cuts and Jobs Act of 2017 ("Tax Act") reduced the federal corporate tax rate from 35% to 21% beginning in 2018, which has had a favorable impact on our earnings and capital generation abilities, the new legislation also enacted limitations on certain deductions, such as FDIC deposit insurance premiums, which partially offset the increase in net earnings from the lower tax rate. In addition, further changes in the tax law, changes in interpretations, guidance or regulations that may be promulgated, or actions that we may take as a result of the Tax Act could negatively impact our business. Similarly, our customers are likely to continue to experience varying effects from both the individual and business tax provisions of the Tax Act and such effects, whether positive or negative, may have a corresponding impact on our financial performance and the economy as a whole.
14


Table of Contents
We are subject to financial and reputational risks from potential liability arising from lawsuits.
The nature of our business ordinarily results in a certain amount of claims and legal action. Whether claims and related legal actions are founded or unfounded, if such claims and legal actions are not resolved in a manner favorable to us, they may result in significant financial liability and/or adversely affect our market perception, the products and services we offer, as well as impact customer demand for those products and services. We assess our liabilities and contingencies in connection with outstanding legal proceedings as well as certain threatened claims utilizing the latest and most reliable information. For matters where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established. For matters where it is probable we will incur a loss and the amount can be reasonably estimated, we establish an accrual for the loss. Once established, the accrual is adjusted periodically to reflect any relevant developments. The actual cost of any outstanding legal proceedings or threatened claims, however, may turn out to be substantially higher than the amount accrued. These costs may adversely affect our business, results of operations, and prospects.
We are exposed to risk of environmental liabilities with respect to properties to which we obtain title.
A large portion of our loan portfolio is secured by real estate. In the course of our business, we may foreclose and take title to real estate and could be subject to environmental liabilities with respect to these properties. We may be held liable to a government entity or to third parties for property damage, personal injury, investigation, and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to clean up hazardous or toxic substances or chemical releases at a property. The costs associated with investigation and remediation activities could be substantial. In addition, if we are the owner or former owner of a contaminated site, we may be subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the property. These costs and claims could adversely affect our business, results of operations, and prospects.
Risks Relating to Business Environment and Operations
We operate in a highly competitive industry and market area. If we fail to compete effectively, our financial condition and results of operations may be materially adversely affected.
We face substantial competition in all areas of our operations from a variety of different competitors, many of which are larger and may have more financial resources than we do. Such competitors primarily include national, regional, and community banks within the various markets in which we operate. We also face competition from many other types of financial institutions, including, without limitation, savings and loans, credit unions, non-bank health savings account trustees, finance companies, brokerage firms, insurance companies, online lenders, factoring companies, and other financial intermediaries. Some of the financial services organizations with which the Company competes are not subject to the same degree of regulation as is imposed on bank holding companies and federally insured depository institutions, which may give them certain advantages over the Company in accessing funding and in providing various services. The financial services industry could become even more competitive as a result of legislative, regulatory, and technological changes and continued consolidation. Technology has lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks. Additionally, due to their size, many competitors may be able to achieve economies of scale and, as a result, may offer a broader range of products and services than we do, as well as better pricing for those products and services.
Our ability to compete successfully depends on a number of factors, including, among other things:
the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards, and safe, sound assets;
the ability to expand market position;
the scope, relevance, and pricing of products and services offered to meet customer needs and demands;
the rate at which we introduce new products and services relative to our competitors;
customer satisfaction with our level of service and products; and
industry and general economic trends.
Failure to perform in any of these areas could significantly weaken our competitive position, which could adversely affect our growth and profitability, which, in turn, could have a material adverse effect on our financial condition and results of operations.
The loss of key partnerships could adversely affect our HSA Bank division.
Our HSA Bank division relies on partnerships with various health insurance carriers and other partners to maximize our distribution model. In particular, health plan partners who provide high deductible health plan options are a significant source of new and existing health savings account holders. If these health plan partners or other partners choose to align with our competitors, our results of operations, business, and prospects could be adversely affected.
We may not be able to attract and retain skilled people.
Our success depends in large part on our ability to attract and retain key people. Competition for the best people in most activities in which we engage can be intense and we may not be able to hire people or retain them. The unexpected loss of services of key personnel could have a material adverse impact on the business as we would lose their skills, knowledge of the market, and years of industry experience, and may have difficulty promptly finding qualified replacement personnel.
15


Table of Contents
We continually encounter technological change. The failure to understand and adapt to these changes could negatively impact our business.
Financial services industries continually experience rapid technological change with frequent introductions of new technology-driven products and services. An effective use of technology can increase efficiency, enable financial institutions to better serve customers, and reduce costs. However, some new technologies needed to compete effectively result in incremental operating costs and capital investments. Our future success depends in part upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in operations. Many of our competitors, because of their larger size and available capital, have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers within the same time frame as our large competitors. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on our business and, in turn, our financial condition and results of operations.
A failure or breach of our systems, or those of our third party vendors and other service providers, including as a result of cyber attacks, could disrupt our businesses, result in the misuse of confidential or proprietary information, damage our reputation, increase our costs, and cause losses.
As a large financial institution, we depend on our ability to process, record, and monitor a large number of customer transactions, and customer, public, and regulatory expectations regarding operational and information security have increased over time. Accordingly, our operational systems and infrastructure must continue to be safeguarded and monitored for potential failures, disruptions, and breakdowns. Our business, financial, accounting, data processing systems, or other operating systems and facilities, including mobile banking and other recently developed technologies, may stop operating properly or become disabled or compromised as a result of a number of factors that may be wholly or partially beyond our control. For example, there could be sudden increases in customer transaction volume; electrical or telecommunications outages; natural disasters; pandemics; events arising from political or social matters, including terrorist acts; and cyber attacks. Although we have business continuity plans and believe we have robust information security procedures and controls in place, disruptions or failures in the physical infrastructure or operating systems that support our businesses and customers, or cyber attacks or security breaches of the networks, systems, or devices on which customers’ personal information is stored and that our customers use to access our products and services, could result in customer attrition, regulatory fines, penalties or intervention, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs, which could have a materially adverse effect on our results of operations and financial condition.
Third parties with whom we do business or that facilitate our business activities, including exchanges, clearing houses, financial intermediaries, or vendors that provide services or security solutions for our operations, could also be sources of operational and information security risk to us, including breakdowns or failures of their own systems, capacity constraints, and cyber attacks.
In recent years, information security risks for financial institutions have increased due in part to the increased sophistication and activities of organized crime, hackers, terrorists, hostile foreign governments, activists, and other external parties. There have been several instances involving financial services and consumer-based companies reporting unauthorized access to, and disclosure of, client or customer information or the destruction or theft of corporate data. There have also been highly publicized cases where hackers have requested ransom-payments in exchange for not disclosing customer information.
Although to date we have not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that we will not suffer such losses in the future. Our risk and exposure to these matters remains heightened, and as a result, the continued development and enhancement of our controls, processes, and practices designed to protect and facilitate the recovery of our systems, computers, software, data, and networks from attack, damage, or unauthorized access remain a high priority for us. As an additional layer of protection, we have purchased network and privacy liability risk insurance coverage which includes digital asset loss, business interruption loss, network security liability, privacy liability, network extortion, and data breach coverage, though there can be no assurance that such insurance will fully cover any actual losses. As cyber threats continue to evolve, we may be required to expend significant additional resources to modify our protective measures or to investigate and remediate any information security vulnerabilities.
Disruptions in services provided by third-party vendors may result in a material adverse effect on our business.
We rely on third-party vendors to provide products and services necessary to maintain day-to-day operations. For example, we are dependent on our vendor-provided core banking processing systems to process a large number of increasingly complex transactions. Accordingly, we are exposed to the risk that these vendors might not perform in accordance with the contracted arrangements or service level agreements because of changes in the vendor’s organizational structure, financial condition, support for existing products, services, and technology strategic focus or for any other reason. Such failure to perform could be disruptive to our operations, which could have a materially adverse impact on our business, results of operations, and financial condition. While we require third-party outsourced service providers to have business continuity and disaster recovery plans that are aligned with our overall recovery plans, we cannot be assured that such plans will operate successfully or in a timely manner so as to prevent any such material adverse impact.
16


Table of Contents
New lines of business or new products and services may subject us to additional risks. A failure to successfully manage these risks may have a material adverse effect on our business.
From time to time, we may implement new lines of business, offer new products and services within existing lines of business, or shift our asset mix. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, and/or shifting asset mix, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove attainable. External factors, such as compliance with regulations, competitive alternatives, and shifting market preferences, may also impact the successful implementation of a new line of business or a new product or service. Furthermore, any new line of business and/or new product or service could have a significant impact on the effectiveness of our system of internal controls. Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services could have a material adverse effect on our business, results of operations, and financial condition.
We face risks in connection with completed or potential acquisitions.
From time to time, we may evaluate expansion through the acquisition of banks or branches, or other financial businesses or assets. Such acquisitions involve various risks commonly associated with acquisitions, including, among other things:
the possible loss of key employees and customers;
potential business disruptions;
potential changes in banking or tax laws or regulations that may affect the business;
potential exposure to unknown or contingent liabilities; and
potential difficulties in integrating the target business into our own.
Acquisitions typically involve the payment of a premium over book and market values, and therefore, some dilution of the Company’s tangible book value and net income per common share may occur in connection with any future transaction. Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition could have a material adverse effect on the Company’s business, financial condition and results of operations.
Our controls and procedures may fail or be circumvented, which may result in a material adverse effect on our business.
Management regularly reviews and updates our internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention of our controls and procedures, failure to implement any necessary improvement of our controls and procedures, or failure to comply with regulations related to controls and procedures could have a material adverse effect on our business, results of operations and financial condition.
Our business may be adversely affected by fraud.
As a financial institution, we are inherently exposed to operational risk in the form of theft and other fraudulent activity by employees, customers, and other third parties targeting the Company or the Company’s customers or data. Such activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering and other dishonest acts. Although we devote substantial resources to maintaining effective policies and internal controls to identify and prevent such incidents, given the increasing sophistication of possible perpetrators, we may experience financial losses or reputational harm as a result of fraud.
17


Table of Contents
Risks Relating to Accounting Estimates
Our allowance for loan and lease losses may be insufficient.
Our business is subject to periodic fluctuations based on national and local economic conditions. These fluctuations are not predictable, cannot be controlled and may have a material adverse impact on our operations and financial condition. For example, declines in housing activity including declines in building permits, and home prices, may make it more difficult for our borrowers to sell their homes or refinance their debt. Sales may also slow, which could strain the resources of real estate developers and builders. We may suffer higher loan and lease losses as a result of these factors and the resulting impact on our borrowers. A declining economy could negatively affect employment levels and impact the ability of our borrowers to service their debt. Bank regulatory agencies also periodically review our allowance for loan and lease losses and may require an increase in the provision for loan and lease losses or the recognition of further loan charge-offs, based on judgments different than those of management. In addition, if charge-offs in future periods exceed the allowance for loan and lease losses, we may need, depending on an analysis of the adequacy of the allowance for loan and lease losses, additional provisions to increase the allowance for loan and lease losses. Any increases in the allowance for loan and lease losses will result in a decrease in net income and, possibly, capital, and may have a material adverse effect on our financial condition and results of operations. See Note 1 to the Consolidated Financial Statements for information regarding the adoption of the CECL methodology and the resulting impact to the Company.
We may not be able to fully realize the balance of our net DTA.
The value of our DTA is partially reduced by a valuation allowance. A valuation allowance is provided when it is more-likely-than-not that some portion of our DTA will not be realized. We regularly assess available positive and negative evidence to determine whether it is more-likely-than-not that our net DTA will not be realized. Realization of a DTA requires us to apply significant judgment and is inherently speculative because it requires estimates that cannot be made with certainty. If we were to conclude that a significant portion of our remaining DTA is not more-likely-than-not to be realized, the required valuation allowance could adversely affect our financial position, results of operations and regulatory capital ratios.
If our goodwill were determined to be impaired it could have a negative impact on our profitability.
Webster evaluates goodwill for impairment on an annual basis, or more frequently if necessary. A significant decline in our expected future cash flows, a continuing period of market disruption, market capitalization to book value deterioration, or slower growth rates may require us to record charges in the future related to the impairment of our goodwill. If we were to conclude that a future write-down is necessary, we would record the appropriate charge, which may have a material adverse effect on our financial condition and results of operations.
If all or a significant portion of the unrealized losses in our investment securities were determined to be other-than-temporarily impaired, we would recognize a material charge to our earnings and our capital ratios would be adversely impacted.
When the fair value of a security declines, management must assess whether that decline is other-than-temporary. When management reviews whether a decline in fair value is other-than-temporary, it considers numerous factors, many of which involve significant judgment. No assurance can be provided that the amount of the unrealized losses will not increase.
To the extent that any portion of the unrealized losses in our investment securities portfolio is determined to be other-than-temporary impairment, we will recognize a charge to our earnings in the quarter during which such determination is made and our capital ratios will be adversely impacted. If any such charge is deemed significant, a rating agency might downgrade our credit rating or put us on a credit watch. A downgrade or a significant reduction in our capital ratios might adversely impact our ability to access the capital markets or might increase our cost of capital. Even if we do not determine that the unrealized losses associated with the investment portfolio require an impairment charge, increases in such unrealized losses adversely impact the tangible common equity ratio, which may adversely impact credit rating agency and investor sentiment. Any such negative perception also may adversely impact our ability to access the capital markets or might increase our cost of capital.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable
18


Table of Contents
ITEM 2. PROPERTIES
The Company maintains its headquarters in Waterbury, Connecticut. This owned facility houses the Company’s executive and primary administrative functions, as well as the principal banking headquarters of Webster Bank. Other key operation and administration functions are in an owned facility in New Britain, Connecticut and in leased facilities in Stamford, Hartford, and Southington, Connecticut. The Company considers its properties suitable and adequate for present needs.
In addition to the properties noted above, the Company’s segments maintain the following leased or owned offices. Lease expiration dates vary, up to 67 years, with renewal options for 1 to 10 years. For additional information regarding leases and rental payments refer to Note 7: Leasing in the Notes to Consolidated Financial Statements contained elsewhere in this report.
Commercial Banking
The Commercial Banking segment maintains offices across a footprint that primarily ranges from Boston, Massachusetts to Washington, D.C. Significant properties are located in: Hartford, New Haven, Stamford, and Waterbury, Connecticut; Boston, Massachusetts; New York City and White Plains, New York; Conshohocken, Pennsylvania; and Providence, Rhode Island.
The Commercial Banking segment also includes: Webster Capital Finance with headquarters in Southington, Connecticut; Webster Business Credit Corporation with headquarters in New York, New York and offices in Atlanta, Georgia, Baltimore, Maryland, Boston, Massachusetts, Chicago, Illinois, Dallas, Texas, Charlotte, North Carolina, and New Milford, Connecticut; and Private Banking with headquarters in Stamford, Connecticut and offices in Hartford, New Haven, Waterbury, and Greenwich, Connecticut, Boston, Massachusetts, and Providence, Rhode Island.
HSA Bank
The HSA Bank segment is headquartered in Milwaukee, Wisconsin with an office in Sheboygan, Wisconsin.
Community Banking
The Community Banking segment maintains the following banking centers:
LocationLeasedOwnedTotal
Connecticut73  39  112  
Massachusetts19  10  29  
Rhode Island   
New York —   
Total banking centers105  52  157  

ITEM 3. LEGAL PROCEEDINGS
From time to time, Webster Financial Corporation or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Management presently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not be material to Webster or its consolidated financial position. Webster establishes an accrual for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur that could cause Webster to adjust its litigation accrual or could have, individually or in the aggregate, a material adverse effect on its business, financial condition, or operating results. Webster believes it has defenses to all claims asserted against it in existing litigation matters and intends to defend itself in those matters.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable

19


Table of Contents
PART II
ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Webster Financial Corporation’s common shares trade on the New York Stock Exchange under the symbol WBS.
On February 27, 2020, there were 5,105 shareholders of record as determined by Broadridge, the Company’s transfer agent.
Recent Sales of Unregistered Securities
No unregistered securities were sold by Webster Financial Corporation during the three year period ended December 31, 2019.
Issuer Purchases of Equity Securities
The following table provides information with respect to any purchase of equity securities for Webster Financial Corporation’s common stock made by or on behalf of Webster or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, during the three months ended December 31, 2019:
Period
Total
Number of
Shares
Purchased (1)
Average Price
Paid Per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum
Dollar Amount Available for Repurchase
Under the Plans or Programs (2)
October7,479  $43.79  —  $200,000,000  
November—  —  —  200,000,000  
December—  —  —  200,000,000  
Total7,479  43.79  —  200,000,000  
(1)All shares purchased during the three months ended December 31, 2019 were acquired outside of the repurchase program at market prices and related to stock compensation plan activity.
(2)Webster maintains a common stock repurchase program which authorizes management to purchase shares of its common stock, in open market or privately negotiated transactions, subject to market conditions and other factors. On October 29, 2019, the Company announced that its Board of Directors approved a modification to this program, originally approved on October 24, 2017, increasing the maximum dollar amount available for repurchase to $200 million. This program will remain in effect until fully utilized or until modified, superseded, or terminated.
20


Table of Contents
Performance Graph
The performance graph compares Webster Financial Corporation’s cumulative shareholder return on its common stock over the last five fiscal years to the cumulative total return of the Standard & Poor’s 500 Index (S&P 500 Index) and the Keefe, Bruyette & Woods Regional Banking Index (KRX Index).
Cumulative shareholder return is measured by dividing total dividends, assuming dividend reinvestment, for the measurement period plus share price change for a period by the share price at the beginning of the measurement period. The cumulative shareholder return over a five-year period assumes a simultaneous initial investment of $100, on December 31, 2014, in Webster Financial Corporation common stock and in each of the indices above.

wbs-20191231_g1.jpg
Period Ending December 31,
201420152016201720182019
Webster Financial Corporation$100  $117  $176  $185  $166  $185  
S&P 500 Index$100  $101  $113  $138  $132  $174  
KRX Index$100  $106  $147  $150  $124  $153  

ITEM 6. SELECTED FINANCIAL DATA
The required information is set forth below, in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, under the section captioned "Results of Operations," which is incorporated herein by reference.
21


Table of Contents
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Consolidated Financial Statements and the accompanying Notes thereto of Webster Financial Corporation contained elsewhere in this report. For a comparison of the 2018 results to the 2017 results and other 2017 information not included herein, refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” included under the section captioned "Comparison of 2018 to 2017" in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
Results of Operations
Selected Financial DataAt or for the years ended December 31,
(Dollars in thousands, except per share data)20192018201720162015
Balance Sheets
Total assets$30,389,344  $27,610,315  $26,487,645  $26,072,529  $24,641,118  
Loans and leases, net19,827,890  18,253,136  17,323,864  16,832,268  15,496,745  
Investment securities8,219,751  7,224,150  7,125,429  7,151,749  6,907,683  
Deposits23,324,746  21,858,845  20,993,729  19,303,857  17,952,778  
Borrowings3,529,271  2,634,703  2,546,141  4,017,948  4,040,799  
Preferred stock145,037  145,037  145,056  122,710  122,710  
Total shareholders' equity3,207,770  2,886,515  2,701,958  2,527,012  2,413,960  
Statements Of Income
Interest income$1,154,583  $1,055,167  $913,605  $821,913  $760,040  
Interest expense199,456  148,486  117,318  103,400  95,415  
Net interest income955,127  906,681  796,287  718,513  664,625  
Provision for loan and lease losses37,800  42,000  40,900  56,350  49,300  
Non-interest income285,315  282,568  259,478  264,478  237,777  
Non-interest expense715,950  705,616  661,075  623,191  555,341  
Income before income tax expense486,692  441,633  353,790  303,450  297,761  
Income tax expense (1)
103,969  81,215  98,351  96,323  93,032  
Net income$382,723  $360,418  $255,439  $207,127  $204,729  
Earnings applicable to common shareholders$372,985  $351,703  $246,831  $198,423  $195,361  
Per Share Data
Basic earnings per common share$4.07  $3.83  $2.68  $2.17  $2.15  
Diluted earnings per common share4.06  3.81  2.67  2.16  2.13  
Dividends and dividend equivalents declared per common share1.53  1.25  1.03  0.98  0.89  
Dividends declared per Series A preferred stock share—  —  —  —  21.25  
Dividends declared per Series E preferred stock share—  —  1,600.00  1,600.00  1,600.00  
Dividends declared per Series F preferred stock share1,312.50  1,323.44  —  —  —  
Book value per common share33.28  29.72  27.76  26.17  24.99  
Tangible book value per common share (non-GAAP)
27.19  23.60  21.59  19.94  18.69  
Key Performance Ratios
Tangible common equity ratio (non-GAAP)
8.39 %8.05 %7.67 %7.19 %7.12 %
Return on average assets1.32  1.33  0.97  0.82  0.87  
Return on average common shareholders’ equity12.83  13.37  9.92  8.44  8.70  
Return on average tangible common shareholders' equity (non-GAAP)
16.01  17.17  13.00  11.36  11.96  
Net interest margin3.55  3.60  3.30  3.12  3.08  
Efficiency ratio (non-GAAP)
56.77  57.75  60.33  62.01  59.93  
Asset Quality Ratios
Non-performing loans and leases as a percentage of loans and leases0.75 %0.84 %0.72 %0.79 %0.89 %
Non-performing assets as a percentage of loans and leases plus OREO0.79  0.87  0.76  0.81  0.92  
Non-performing assets as a percentage of total assets0.52  0.59  0.50  0.53  0.59  
ALLL as a percentage of non-performing loans and leases138.56  137.22  158.00  144.98  125.05  
ALLL as a percentage of loans and leases1.04  1.15  1.14  1.14  1.12  
Net charge-offs as a percentage of average loans and leases0.21  0.16  0.20  0.23  0.23  
Ratio of ALLL to net charge-offs5.09 x7.16 x5.68 x5.25 x5.21 x
(1)The enactment of the Tax Act in December 2017 impacted income tax expense. Refer to Note 9 to the Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K for additional information.
22


Table of Contents
The non-GAAP financial measures identified in the preceding table provide investors with information useful in understanding the Company's financial performance, performance trends and financial position. These measures are used by management for internal planning and forecasting purposes, as well as by securities analysts, investors and other interested parties to compare peer company operating performance. Management believes that the presentation, together with the accompanying reconciliations provides a complete understanding of the factors and trends affecting the Company's business and allows investors to view its performance in a similar manner. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results. Because non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies that present measures having the same or similar names.
The following tables reconcile non-GAAP financial measures with financial measures defined by GAAP:
At December 31,
(Dollars and shares in thousands, except per share data)20192018201720162015
Tangible book value per common share (non-GAAP):
Shareholders' equity (GAAP)$3,207,770  $2,886,515  $2,701,958  $2,527,012  $2,413,960  
Less: Preferred stock (GAAP)145,037  145,037  145,056  122,710  122,710  
 Goodwill and other intangible assets (GAAP)560,290  564,137  567,984  572,047  577,699  
Tangible common shareholders' equity (non-GAAP)$2,502,443  $2,177,341  $1,988,918  $1,832,255  $1,713,551  
Common shares outstanding92,027  92,247  92,101  91,868  91,677  
Tangible book value per common share (non-GAAP)$27.19  $23.60  $21.59  $19.94  $18.69  
Tangible common equity ratio (non-GAAP):
Tangible common shareholders' equity (non-GAAP)$2,502,443  $2,177,341  $1,988,918  $1,832,255  $1,713,551  
Total assets (GAAP)$30,389,344  $27,610,315  $26,487,645