Strategic Initiatives

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

During the fourth quarter of 2020, Webster launched a strategic plan (the 2020 strategic initiatives) to drive incremental revenue and cost savings measures across the organization through the consolidation of banking centers and corporate facilities, process automation, ancillary spend reduction, and other organizational actions. By the end of 2021, key project milestones had been completed, including the completion of all planned banking center closures, the delivery of a new digital onboarding platform for retail consumers, an investment in foundational technology modernization, and the realignment of certain business banking and investment service operations across the Company's reportable segments. Collectively, these initiatives have contributed to the realization of operational efficiencies and ancillary spend reductions.

In connection with the Sterling merger, Webster re-evaluated its strategic priorities as a combined organization, which resulted in modifications to the outstanding 2020 strategic initiatives. As a result, the Company released $3.8 million from its previously recorded severance accrual during the first quarter of 2022, with a corresponding adjustment to compensation and benefits expense on the Condensed Consolidated Statements of Income. At March 31, 2022 and December 31, 2021, respectively, $0.6 million and $5.1 million of accrued severance and other benefits associated with the 2020 strategic initiatives was reported within accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets, which will be paid out to the impacted employees over the course of 2022.

Charges related to the 2020 strategic initiatives comprised the following for the three months ended March 31, 2022 and 2021:


	Three months ended March 31,
(In thousands)	2022		2021
Compensation and benefits	$	(3,811)	$	2,060
Occupancy (1)	(330)		2,257
Technology and equipment	—		338
Professional and outside services	1		4,786

Total strategic initiatives charges	$	(4,140)	$	9,441

(1)Comprised primarily of a gain on an early lease termination in 2022 and accelerated depreciation and operating lease costs in 2021.