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Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s operations are organized into three reportable segments that represent its primary businesses: Commercial Banking, HSA Bank, and Consumer Banking. These segments reflect how executive management responsibilities are assigned, how discrete financial information is evaluated, the type of customer served, and how products and services are provided. Certain Treasury activities, along with the amounts required to reconcile profitability metrics to those reported in accordance with GAAP, are included in the Corporate and Reconciling category.
Effective January 1, 2022, the Company realigned its investment services operations from Commercial Banking to Consumer Banking (called Retail Banking in 2021) to better serve its customers and deliver operational efficiencies. Under this realignment, $125.4 million of deposits and $4.3 billion of assets under administration (off-balance sheet) were reassigned from Commercial Banking to Consumer Banking. The Company also realigned certain product management and customer contact center operations from both Commercial Banking and Consumer Banking to the Corporate and Reconciling category, which resulted in an insignificant reassignment of assets and liabilities.
There was no goodwill reallocation nor goodwill impairment as a result of these realignments. In addition, the non-interest expense allocation methodology was modified to exclude certain overhead and merger-related costs that are not directly related to segment performance. Prior period balance sheet information and results of operations have been recast accordingly to reflect these realignments.
As discussed previously in Note 2: Mergers and Acquisitions, Webster acquired Sterling on January 31, 2022, and the allocation of the purchase price is considered preliminary at December 31, 2022. Accordingly, of the total $1.9 billion in preliminary goodwill recorded, $1.7 billion and $0.2 billion was preliminarily allocated to Commercial Banking and Consumer Banking, respectively. The $36.0 million of goodwill recorded in connection with the Bend acquisition was allocated entirely to HSA Bank.
Segment Reporting Methodology
The Company uses an internal profitability reporting system to generate information by reportable segment, which is based on a series of management estimates for funds transfer pricing, and allocations for non-interest expense, provision for credit losses, income taxes, and equity capital. These estimates and allocations, certain of which are subjective in nature, are periodically reviewed and refined. Changes in estimates and allocations that affect the results of any reportable segment do not affect the consolidated financial position or results of operations of the Company as a whole. The full profitability measurement reports, which are prepared for each reportable segment, reflect non-GAAP reporting methodologies. The differences between full profitability and GAAP results are reconciled in the Corporate and Reconciling category.
The Company allocates interest income and interest expense to each business through an internal matched maturity FTP process. The goal of the FTP allocation is to encourage loan and deposit growth consistent with the Company’s overall profitability objectives. The FTP process considers the specific interest rate risk and liquidity risk of financial instruments and other assets and liabilities in each line of business. Loans are assigned an FTP rate for funds used and deposits are assigned an FTP rate for funds provided. The allocation considers the origination date and the earlier of the maturity date or the repricing date of a financial instrument to assign an FTP rate for loans and deposits originated each day. The FTP process transfers the corporate interest rate risk exposure to the treasury function included within the Corporate and Reconciling category where such exposures are centrally managed.
The Company allocates a majority of non-interest expense to each reportable segment using an activity and driver-based costing process. Costs, including shared services and back-office support areas, are analyzed, pooled by process, and assigned to the appropriate reportable segment. The combination of direct revenue, direct expenses, funds transfer pricing, and allocations of non-interest expense produces PPNR, which is the basis the segments are reviewed by executive management. The Company also allocates the provision for credit losses to each reportable segment based on management's estimate of the inherent loss content in each of the specific loan and lease portfolios. The ACL on loans and leases is included in total assets within the Corporate and Reconciling category. Business development expenses, such as merger-related and strategic initiatives costs, are also generally included in the Corporate and Reconciling category.
The following table presents balance sheet information, including the appropriate allocations, for the Company's reportable segments and the Corporate and Reconciling category:
 At December 31, 2022
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Goodwill$1,904,291 $57,779 $552,034 $— $2,514,104 
Total assets44,380,582 122,729 10,625,334 16,148,876 71,277,521 
At December 31, 2021
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Goodwill$131,000 $21,813 $385,560 $— $538,373 
Total assets15,398,159 73,564 7,663,921 11,779,955 34,915,599 

The following tables present operating results, including the appropriate allocations, for the Company’s reportable segments and the Corporate and Reconciling category:
 Year ended December 31, 2022
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Net interest income$1,346,384 $218,149 $720,789 $(251,036)$2,034,286 
Non-interest income171,437 104,586 119,691 45,069 440,783 
Non-interest expense398,100 151,329 426,133 420,911 1,396,473 
Pre-tax, pre-provision net revenue1,119,721 171,406 414,347 (626,878)1,078,596 
Provision (benefit) for credit losses276,550 — (3,754)7,823 280,619 
Income before income taxes843,171 171,406 418,101 (634,701)797,977 
Income tax expense207,188 45,937 108,657 (208,088)153,694 
Net income$635,983 $125,469 $309,444 $(426,613)$644,283 
Year ended December 31, 2021
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Net interest income$585,297 $168,595 $375,318 $(228,121)$901,089 
Non-interest income83,538 102,814 95,887 41,133 323,372 
Non-interest expense192,977 134,258 297,217 120,648 745,100 
Pre-tax, pre-provision net revenue475,858 137,151 173,988 (307,636)479,361 
(Benefit) for credit losses(51,348)— (3,068)(84)(54,500)
Income before income taxes527,206 137,151 177,056 (307,552)533,861 
Income tax expense134,965 36,619 42,139 (88,726)124,997 
Net income$392,241 $100,532 $134,917 $(218,826)$408,864 
Year ended December 31, 2020
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Net interest income$512,691 $162,363 $334,157 $(117,818)$891,393 
Non-interest income66,867 100,826 97,778 19,806 285,277 
Non-interest expense181,218 133,919 334,008 109,801 758,946 
Pre-tax, pre-provision net revenue398,340 129,270 97,927 (207,813)417,724 
Provision (benefit) for credit losses152,571 — (14,722)(99)137,750 
Income before income taxes245,769 129,270 112,649 (207,714)279,974 
Income tax expense61,086 34,501 24,956 (61,190)59,353 
Net income$184,683 $94,769 $87,693 $(146,524)$220,621