Document

Exhibit 99.1

WEBSTER REPORTS

THIRD QUARTER 2023 EPS OF $1.28; ADJUSTED EPS OF $1.55

STAMFORD, Conn., October 19, 2023 - Webster Financial Corporation ("Webster") (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced net income available to common stockholders of $222.3 million, or $1.28 per diluted share, for the quarter ended September 30, 2023, compared to $229.8 million, or $1.31 per diluted share, for the quarter ended September 30, 2022.

Third quarter 2023 results include $61.6 million pre-tax ($45.1 million after tax), or $0.271 per diluted share, of charges related to the merger with Sterling Bancorp on January 31, 2022 ("the merger"). Excluding these charges, adjusted earnings per diluted share would have been $1.551 for the quarter ended September 30, 2023.

"Our results this quarter illustrate the strength of Webster, both in terms of our earnings power and sound risk and operating profile," said John R. Ciulla, president and chief executive officer. "During the quarter we completed our core systems conversion which marks a significant milestone in the completion of our integration. We continue to be well positioned for the current operating environment."

Highlights for the third quarter of 2023:

•Revenue of $677.5 million.

•Period end loans and leases balance of $50.1 billion, down $1.5 billion or 3.0 percent from prior quarter; 80.4 percent commercial loans and leases, 19.6 percent consumer loans, and a loan to deposit ratio of 83.0 percent.

•Period end deposits balance of $60.3 billion, up $1.6 billion or 2.7 percent from prior quarter.

•Provision for credit losses totaled $36.5 million.

•Return on average assets of 1.23 percent; adjusted 1.48 percent1.

•Return on average tangible common equity of 17.51 percent1; adjusted 20.96 percent1.

•Net interest margin of 3.49 percent, up 14 basis points from prior quarter.

•Common equity tier 1 ratio of 11.15 percent.

•Efficiency ratio of 41.75 percent1.

•Tangible common equity ratio of 7.22 percent1.

"During the quarter, we further enhanced our liquidity position, while improving both net interest income and net interest margin," said Glenn MacInnes, executive vice president and chief financial officer.

1 See "Reconciliations to GAAP Financial Measures" section beginning on page 20.

Line of Business performance compared to the third quarter of 2022

Commercial Banking

Webster’s Commercial Banking segment serves businesses that have more than $2 million of revenue through its business banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, private banking, and treasury services business units. At September 30, 2023, Commercial Banking had $40.3 billion in loans and leases and $19.4 billion in deposits, as well as a combined $2.7 billion in assets under administration and management.

Commercial Banking Operating Results:


				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$391,399	$333,554		17.3	%
Non-interest income		30,605	40,497		(24.4)
Operating revenue		422,004	374,051		12.8
Non-interest expense		110,306	102,415		(7.7)
Pre-tax, pre-provision net revenue		$311,698	$271,636		14.7

				Percent
		At September 30,		Increase/
(In millions)		2023	2022	(Decrease)
Loans and leases		$40,261	$38,493		4.6	%
Deposits		19,411	20,828		(6.8)
AUA / AUM (off balance sheet)		2,727	2,121		28.5

Pre-tax, pre-provision net revenue increased $40.1 million, to $311.7 million, in the quarter as compared to prior year. Net interest income increased $57.8 million, to $391.4 million, primarily driven by loan growth and the impact of the higher rate environment. Non-interest income decreased $9.9 million, to $30.6 million, driven by decreases in loan servicing related income, cash management fees, syndication fees, interest rate hedging activities, and prepayment penalties. Non-interest expense increased $7.9 million, to $110.3 million, primarily resulting from continued investments in technology and talent to support balance sheet growth.

HSA Bank

Webster’s HSA Bank division offers a comprehensive consumer-directed healthcare solution that includes health savings accounts, health reimbursement arrangements, flexible spending accounts and commuter benefits. 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 September 30, 2023, HSA Bank had $12.3 billion in total footings comprising $8.2 billion in deposits and $4.1 billion in assets under administration through linked investment accounts.

HSA Bank Operating Results:


				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$77,669	$58,567		32.6	%
Non-interest income		20,799	25,842		(19.5)
Operating revenue		98,468	84,409		16.7
Non-interest expense		39,870	36,725		(8.6)
Pre-tax, net revenue		$58,598	$47,684		22.9

				Percent
		At September 30,		Increase/
(Dollars in millions)		2023	2022	(Decrease)
Number of accounts (thousands)		3,186	3,133		1.7	%

Deposits		$8,230	$7,889		4.3
Linked investment accounts (off balance sheet)		4,095	3,233		26.7
Total footings		$12,325	$11,122		10.8

Pre-tax net revenue increased $10.9 million, to $58.6 million, in the quarter as compared to prior year. Net interest income increased $19.1 million, to $77.7 million, primarily due to an increase in net deposit spread and growth in deposits. Non-interest income decreased $5.0 million, to $20.8 million, primarily due to lower customer account service fees. Non-interest expense increased $3.1 million, to $39.9 million, primarily due to higher compensation and benefits expense, service contract expense related to account growth, and the continued investment in our user experience build out.

Consumer Banking

Webster's Consumer Banking segment serves consumer and business banking customers primarily throughout southern New England and the New York Metro and Suburban markets. Consumer Banking is comprised of the Consumer Lending and Small Business Banking business units, as well as a distribution network consisting of 199 banking centers and 350 ATMs, a customer care center, and a full range of web and mobile-based banking services. Additionally, Webster Investments provides investment services to consumers and small business owners within Webster's targeted markets and retail footprint. At September 30, 2023, Consumer Banking had $9.8 billion in loans and $23.6 billion in deposits, as well as $7.6 billion in assets under administration.

Consumer Banking Operating Results:


				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$195,315	$195,748		(0.2)	%
Non-interest income		26,886	33,842		(20.6)
Operating revenue		222,201	229,590		(3.2)
Non-interest expense		105,703	109,588		3.5
Pre-tax, pre-provision net revenue		$116,498	$120,002		(2.9)


		At September 30,		Percent
(In millions)		2023	2022	Increase
Loans		$9,808	$9,302		5.4	%
Deposits		23,624	23,859		(1.0)
AUA (off balance sheet)		7,615	7,369		3.3

Pre-tax, pre-provision net revenue decreased $3.5 million, to $116.5 million, in the quarter as compared to prior year. Net interest income decreased $0.4 million, to $195.3 million, primarily driven by a slight decrease in deposits, partially offset by continued loan growth. Non-interest income decreased $7.0 million, to $26.9 million, driven by lower net investment services income, which was attributable to an outsourcing model adopted in the fourth quarter of 2022, and lower deposit and loan servicing related fees, partially offset by other miscellaneous income. Non-interest expense decreased $3.9 million, to $105.7 million, primarily driven by the impact of outsourcing the consumer investment services platform, coupled with lower technology expenses.

Consolidated financial performance:

Quarterly net interest income compared to the third quarter of 2022:

•Net interest income was $587.1 million compared to $551.0 million.

•Net interest margin was 3.49 percent compared to 3.54 percent. The yield on interest-earning assets increased by 153 basis points, and the cost of interest-bearing liabilities increased by 169 basis points.

•Average interest-earning assets totaled $67.1 billion and increased by $5.0 billion, or 8.0 percent.

•Average loans and leases totaled $50.9 billion and increased by $4.7 billion, or 10.1 percent.

•Average deposits totaled $59.6 billion and increased by $5.6 billion, or 10.4 percent.

Quarterly provision for credit losses:

•The provision for credit losses was $36.5 million in the quarter, reflecting a $6.5 million increase in the allowance for credit losses on loans and leases from prior quarter. The provision also reflects an increase in the reserves on unfunded loan commitments of $0.7 million. The provision for credit losses was $31.5 million in the prior quarter, and $36.5 million a year ago.

•Net charge-offs were $29.3 million, compared to $20.3 million in the prior quarter, and $28.5 million a year ago. The ratio of net charge-offs to average loans and leases was 0.23 percent, compared to 0.16 percent in the prior quarter, and 0.25 percent a year ago.

•The allowance for credit losses on loans and leases represented 1.27 percent of total loans and leases, compared to 1.22 percent at June 30, 2023, and 1.20 percent at September 30, 2022. The allowance represented 295 percent of nonperforming loans and leases at September 30, 2023, compared to 287 percent at June 30, 2023, and 274 percent at September 30, 2022.

Quarterly non-interest income compared to the third quarter of 2022:

•Total non-interest income was $90.4 million compared to $113.6 million, a decrease of $23.2 million. The decrease primarily reflects lower prepayment and other loan related servicing fees, lower client deposit fees, the outsourcing of the consumer investment services platform, and lower client hedging activity. Total non-interest income for the third quarter of 2022 includes a net $0.3 million related to a gain on the early termination of repurchase agreements partially offset by a loss on the sale of investment securities.

Quarterly non-interest expense compared to the third quarter of 2022:

•Total non-interest expense was $362.6 million compared to $330.1 million, an increase of $32.5 million. Total non-interest expense includes a net $61.6 million of merger charges, compared to a net $26.7 million of merger and strategic initiatives and a $10.5 million donation to the Webster Bank Charitable Foundation a year ago. Excluding those charges, total non-interest expense increased $8.1 million. The increase reflects general inflationary impacts, including employee compensation and benefits expense, investments in technology, including the HSA and interLINK acquisitions, and higher deposit insurance expense, offset by expense benefits from the merger and outsourcing of the consumer investments services platform.

Quarterly income taxes compared to the third quarter of 2022:

•Income tax expense was $52.0 million compared to $64.1 million, and the effective tax rate was 18.7 percent compared to 21.5 percent. The lower effective tax rate in the current period reflects the impact of higher merger related charges compared to the 2022 period, as well as the recognition of a $3.3 million net discrete benefit during the quarter attributable to 2022 tax return true-up adjustments.

Investment securities:

•Total investment securities, net were $14.5 billion, compared to $14.7 billion at June 30, 2023, and $14.6 billion at September 30, 2022. The carrying value of the available-for-sale portfolio included $1.1 billion of net unrealized losses, compared to $883.0 million at June 30, 2023, and $941.8 million at September 30, 2022. The carrying value of the held-to-maturity portfolio does not reflect $1.2 billion of net unrealized losses, compared to $877.3 million at June 30, 2023, and $855.9 million at September 30, 2022.

Loans and leases:

•Total loans and leases were $50.1 billion, compared to $51.6 billion at June 30, 2023, and $47.8 billion at September 30, 2022. Compared to June 30, 2023, commercial loans and leases decreased by $1.5 billion, commercial real estate loans decreased by $77.8 million, residential mortgages increased by $88.3 million, and consumer loans decreased by $22.4 million.

•Compared to a year ago, commercial loans and leases increased by $80.5 million, commercial real estate loans increased by $1.7 billion, residential mortgages increased by $610.5 million, and consumer loans decreased by $147.4 million.

•Loan originations for the portfolio were $1.5 billion, compared to $2.5 billion in the prior quarter, and $5.1 billion a year ago. In addition, $1.5 million of residential loans were originated for sale in the quarter, compared to $5.7 million in the prior quarter, and $1.5 million a year ago.

Asset quality:

•Total nonperforming loans and leases were $215.1 million, or 0.43 percent of total loans and leases, compared to $218.9 million, or 0.42 percent of total loans and leases, at June 30, 2023, and $209.5 million, or 0.44 percent of total loans and leases, at September 30, 2022.

•Past due loans and leases were $70.9 million, compared to $51.4 million at June 30, 2023, and $46.4 million at September 30, 2022.

Deposits and borrowings:

•Total deposits were $60.3 billion, compared to $58.7 billion at June 30, 2023, and $54.0 billion at September 30, 2022. Core deposits to total deposits1 were 87.6 percent at both September 30, 2023, and June 30, 2023, compared to 95.2 percent at September 30, 2022. The loan to deposit ratio was 83.0 percent, compared to 87.9 percent at June 30, 2023, and 88.5 percent at September 30, 2022.

•Total borrowings were $3.0 billion, compared to $5.6 billion at June 30, 2023, and $5.9 billion at September 30, 2022.

Capital:

•The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 11.00 percent and 17.51 percent, respectively, compared to 11.78 percent and 18.62 percent, respectively, in the third quarter of 2022.

•The tangible equity1 and tangible common equity1 ratios were 7.62 percent and 7.22 percent, respectively, compared to 7.70 percent and 7.27 percent, respectively, at September 30, 2022. The common equity tier 1 ratio was 11.15 percent, compared to 10.80 percent at September 30, 2022.

•Book value and tangible book value per common share1 were $46.00 and $29.48, respectively, compared to $43.32 and $27.69, respectively, at September 30, 2022.

1 See reconciliations to GAAP financial measures beginning on page 20.

***

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank Division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country's largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $73 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Conference Call

A conference call covering Webster’s third quarter 2023 earnings announcement will be held today, Thursday, October 19, 2023 at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster's Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern) on October 19, 2023. To access the replay, dial 800-770-2030, or 647-362-9199 for international callers. The replay conference ID number is 8607257.

Media Contact

Alice Ferreira, 203-578-2610

acferreira@websterbank.com

Investor Contact

Emlen Harmon, 212-309-7646

eharmon@websterbank.com

Forward-Looking Statements

This release 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, these words are not the exclusive means of identifying such statements. 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 Webster's actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster's ability to successfully integrate the operations of Webster and Sterling Bancorp and realize the anticipated benefits of the merger, including validation of Webster's recently completed core conversion and any issues that may arise therefrom; Webster's ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; any continuation of the recent turmoil in the banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by government agencies in response; volatility in Webster's stock price due to investor sentiment, including in light of the recent turmoil in the banking industry; local, regional, national, and international economic conditions, and the impact they may have on Webster or its customers; volatility and disruption in national and international financial markets, including as a result of geopolitical conflict; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, and healthcare, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster's securities portfolio; inflation, monetary fluctuations, the possibility of a recession, and changes in interest rates, including the impact of such changes on economic conditions, customer behavior, funding costs, and Webster's loans and leases and securities portfolios; possible changes in governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; the impact of a potential U.S. federal government shutdown; the replacement of, and transition from, the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) as the primary interest rate benchmark; the timely development and acceptance of new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster's ability to implement new technologies and maintain secure and reliable technology systems; the effects of any cyber threats, attacks or events, or fraudulent activity, including those that involve Webster's third-party vendors and service providers; performance by Webster's counterparties and third-party vendors; Webster's ability to increase market share and control expenses; changes in the competitive environment among banks, financial holding companies, and other traditional and non-traditional financial service providers; Webster's ability to maintain adequate sources of funding and liquidity; changes in the level of non-performing assets and charge-offs; changes in estimates of future reserve requirements based upon periodic review under relevant regulatory and accounting requirements; the effect of changes in accounting policies and practices applicable to Webster, including the impacts of recently adopted accounting guidance; Webster's inability to remediate the material weaknesses in its internal control related to ineffective information technology general controls (ITGCs); legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster's ability to appropriately address any environmental, social, governmental, and sustainability concerns that may arise from its business activities; and the other factors that are described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the headings “Risk Factors” and “Management Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statement made by the Company in this release speaks only as of the date on which it is 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.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income, ROATCE, and other performance ratios, in each case as adjusted, is included in the accompanying selected financial highlights table.

Webster believes that providing certain non-GAAP financial measures provides investors with information useful in understanding its financial performance, performance trends, and financial position. Webster utilizes these measures for internal planning and forecasting purposes. Webster, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. Webster believes that its presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting its business and allows investors to view performance in a manner similar to management.

These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Webster strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.


WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022

Income and performance ratios:
Net income	$	226,475		$	234,968		$	221,004		$	244,751		$	233,968
Net income available to common stockholders	222,313			230,806			216,841			240,588			229,806
Earnings per diluted common share	1.28			1.32			1.24			1.38			1.31
Return on average assets (annualized)	1.23		%	1.23		%	1.22		%	1.40		%	1.38		%
Return on average tangible common stockholders' equity (annualized) (1)	17.51			18.12			17.66			19.93			18.62
Return on average common stockholders’ equity (annualized)	11.00			11.38			10.94			12.54			11.78
Non-interest income as a percentage of total revenue	13.34			13.28			10.62			14.50			17.10

Asset quality:
Allowance for credit losses on loans and leases	$	635,438		$	628,911		$	613,914		$	594,741		$	574,325
Nonperforming assets	218,402			222,215			186,551			206,136			211,627
Allowance for credit losses on loans and leases / total loans and leases	1.27		%	1.22		%	1.21		%	1.20		%	1.20		%
Net charge-offs / average loans and leases (annualized)	0.23			0.16			0.20			0.17			0.25
Nonperforming loans and leases / total loans and leases	0.43			0.42			0.36			0.41			0.44
Nonperforming assets / total loans and leases plus OREO	0.44			0.43			0.37			0.41			0.44
Allowance for credit losses on loans and leases / nonperforming loans and leases	295.48			287.35			331.81			291.84			274.12

Other ratios:
Tangible equity (1)	7.62		%	7.62		%	7.55		%	7.79		%	7.70		%
Tangible common equity (1)	7.22			7.23			7.15			7.38			7.27
Tier 1 risk-based capital (2)	11.67			11.16			10.93			11.23			11.35
Total risk-based capital (2)	13.82			13.25			12.99			13.25			13.38
Common equity tier 1 risk-based capital (2)	11.15			10.65			10.42			10.71			10.80
Stockholders’ equity / total assets	11.21			11.18			11.08			11.30			11.33
Net interest margin	3.49			3.35			3.66			3.74			3.54
Efficiency ratio (1)	41.75			42.20			41.64			40.27			41.17

Equity and share related:
Common equity	$	7,915,222		$	7,995,747		$	8,010,315		$	7,772,207		$	7,542,431
Book value per common share	46.00			46.15			45.85			44.67			43.32
Tangible book value per common share (1)	29.48			29.69			29.47			29.07			27.69
Common stock closing price	40.31			37.75			39.42			47.34			45.20
Dividends declared per common share	0.40			0.40			0.40			0.40			0.40
Common shares issued and outstanding	172,056			173,261			174,712			174,008			174,116
Weighted-average common shares outstanding - Basic	171,210			172,739			172,766			172,522			173,868
Weighted-average common shares outstanding - Diluted	171,350			172,803			172,883			172,699			173,944
(1) See "Reconciliations to GAAP Financial Measures" section beginning on page 20.
(2) Presented as preliminary for September 30, 2023, and actual for the remaining periods.


WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	September 30, 2023		June 30, 2023		September 30, 2022
Assets:
Cash and due from banks	$	406,300	$	283,623	$	286,487
Interest-bearing deposits	1,766,431		1,077,136		326,638
Securities:
Available-for-sale	7,653,391		7,759,341		8,085,044
Held-to-maturity, net	6,875,772		6,943,784		6,505,838
Total securities, net	14,529,163		14,703,125		14,590,882
Loans held for sale	46,267		10,963		898
Loans and Leases:
Commercial	19,691,486		21,217,411		19,610,953
Commercial real estate	20,583,254		20,661,071		18,862,619
Residential mortgages	8,228,451		8,140,182		7,617,955
Consumer	1,584,955		1,607,384		1,732,348
Total loans and leases	50,088,146		51,626,048		47,823,875
Allowance for credit losses on loans and leases	(635,438)		(628,911)		(574,325)
Loans and leases, net	49,452,708		50,997,137		47,249,550
Federal Home Loan Bank and Federal Reserve Bank stock	306,085		407,968		373,044
Premises and equipment, net	431,698		426,310		434,721
Goodwill and other intangible assets, net	2,843,217		2,852,117		2,721,040
Cash surrender value of life insurance policies	1,242,648		1,239,077		1,230,641
Deferred tax asset, net	478,926		377,588		369,737
Accrued interest receivable and other assets	1,627,408		1,663,199		1,468,928
Total Assets	$	73,130,851	$	74,038,243	$	69,052,566

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	11,410,063	$	11,157,390	$	13,849,812
Health savings accounts	8,229,889		8,206,844		7,889,310
Interest-bearing checking	8,826,265		8,775,975		9,203,220
Money market	17,755,198		16,189,678		11,156,579
Savings	6,622,833		7,131,587		9,340,372
Certificates of deposit	5,150,139		4,743,204		2,311,484
Brokered certificates of deposit	2,337,380		2,542,854		258,110
Total deposits	60,331,767		58,747,532		54,008,887
Securities sold under agreements to repurchase and other borrowings	157,491		243,580		1,265,414
Federal Home Loan Bank advances	1,810,218		4,310,371		3,510,717
Long-term debt (1)	1,050,539		1,052,258		1,074,844
Accrued expenses and other liabilities	1,581,635		1,404,776		1,366,294
Total liabilities	64,931,650		65,758,517		61,226,156
Preferred stock	283,979		283,979		283,979
Common stockholders' equity	7,915,222		7,995,747		7,542,431
Total stockholders’ equity	8,199,201		8,279,726		7,826,410
Total Liabilities and Stockholders' Equity	$	73,130,851	$	74,038,243	$	69,052,566

(1)The classification of debt as long-term is based on the initial terms of greater than one year as of the date of issuance.


WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
	Three months ended September 30,				Nine months ended September 30,
(In thousands, except per share data)	2023		2022		2023		2022
Interest income:
Interest and fees on loans and leases	$	793,626	$	525,960	$	2,281,955	$	1,303,774
Interest and dividends on securities	137,146		91,569		412,704		237,297
Loans held for sale	17		40		454		73
Total interest income	930,789		617,569		2,695,113		1,541,144
Interest expense:
Deposits	293,955		37,492		695,625		57,350
Borrowings	49,698		29,074		233,240		51,883
Total interest expense	343,653		66,566		928,865		109,233
Net interest income	587,136		551,003		1,766,248		1,431,911
Provision for credit losses	36,500		36,531		114,747		237,619
Net interest income after provision for loan and lease losses	550,636		514,472		1,651,501		1,194,292
Non-interest income:
Deposit service fees	41,005		50,807		131,859		150,019
Loan and lease related fees	19,966		26,769		63,499		77,355
Wealth and investment services	7,254		11,419		21,232		33,260
Mortgage banking activities	42		86		230		616
Cash surrender value of life insurance policies	6,620		7,718		19,641		22,694
(Loss) on sale of investment securities, net	—		(2,234)		(16,795)		(2,234)
Other income	15,495		19,071		30,856		56,894


Total non-interest income	90,382		113,636		250,522		338,604
Non-interest expense:
Compensation and benefits	180,333		173,983		526,838		545,641
Occupancy	18,617		23,517		59,042		93,725
Technology and equipment	55,261		45,283		151,442		142,182
Marketing	4,810		3,918		13,446		10,868
Professional and outside services	26,874		21,618		88,693		91,041
Intangible assets amortization	8,899		8,511		27,589		23,700
Loan workout expenses	579		580		1,759		1,992
Deposit insurance	13,310		8,026		39,356		19,996
Other expenses	53,895		44,635		130,969		118,938
Total non-interest expense	362,578		330,071		1,039,134		1,048,083
Income before income taxes	278,440		298,037		862,889		484,813
Income tax expense	51,965		64,069		180,442		85,281
Net income	226,475		233,968		682,447		399,532
Preferred stock dividends	(4,162)		(4,162)		(12,487)		(11,756)
Net income available to common stockholders	$	222,313	$	229,806	$	669,960	$	387,776

Weighted-average common shares outstanding - Diluted	171,350		173,944		172,326		165,813

Earnings per common share:
Basic	$	1.29	$	1.31	$	3.85	$	2.32
Diluted	1.28		1.31		3.85		2.32


WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Interest income:
Interest and fees on loans and leases	$	793,626	$	771,973	$	716,356	$	642,784	$	525,960
Interest and dividends on securities	137,146		161,002		114,556		100,804		91,569
Loans held for sale	17		421		16		5		40
Total interest income	930,789		933,396		830,928		743,593		617,569
Interest expense:
Deposits	293,955		251,466		150,204		81,202		37,492
Borrowings	49,698		98,101		85,441		60,016		29,074
Total interest expense	343,653		349,567		235,645		141,218		66,566
Net interest income	587,136		583,829		595,283		602,375		551,003
Provision for credit losses	36,500		31,498		46,749		43,000		36,531
Net interest income after provision for loan and lease losses	550,636		552,331		548,534		559,375		514,472
Non-interest income:
Deposit service fees	41,005		45,418		45,436		48,453		50,807
Loan and lease related fees	19,966		20,528		23,005		25,632		26,769
Wealth and investment services	7,254		7,391		6,587		7,017		11,419
Mortgage banking activities	42		129		59		89		86
Cash surrender value of life insurance policies	6,620		6,293		6,728		6,543		7,718
(Loss) on sale of investment securities, net	—		(48)		(16,747)		(4,517)		(2,234)
Other income	15,495		9,663		5,698		18,962		19,071


Total non-interest income	90,382		89,374		70,766		102,179		113,636
Non-interest expense:
Compensation and benefits	180,333		173,305		173,200		177,979		173,983
Occupancy	18,617		20,254		20,171		20,174		23,517
Technology and equipment	55,261		51,815		44,366		44,202		45,283
Marketing	4,810		5,160		3,476		5,570		3,918
Professional and outside services	26,874		29,385		32,434		26,489		21,618
Intangible assets amortization	8,899		9,193		9,497		8,240		8,511
Loan workout expenses	579		574		606		606		580
Deposit insurance	13,310		13,723		12,323		6,578		8,026
Other expenses	53,895		40,680		36,394		58,552		44,635
Total non-interest expense	362,578		344,089		332,467		348,390		330,071
Income before income taxes	278,440		297,616		286,833		313,164		298,037
Income tax expense	51,965		62,648		65,829		68,413		64,069
Net income	226,475		234,968		221,004		244,751		233,968
Preferred stock dividends	(4,162)		(4,162)		(4,163)		(4,163)		(4,162)
Net income available to common stockholders	$	222,313	$	230,806	$	216,841	$	240,588	$	229,806

Weighted-average common shares outstanding - Diluted	171,350		172,803		172,883		172,699		173,944

Earnings per common share:
Basic	$	1.29	$	1.32	$	1.24	$	1.38	$	1.31
Diluted	1.28		1.32		1.24		1.38		1.31


WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Three Months Ended September 30,
			2023						2022
(Dollars in thousands)	Average balance		Interest		Yield/rate		Average balance		Interest		Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	50,912,188	$	804,930	6.20	%	$	46,229,678	$	532,062	4.52	%
Investment securities (1)	14,686,798		119,997		3.09		15,039,510		93,561		2.40
Federal Home Loan and Federal Reserve Bank stock	355,495		7,619		8.50		326,860		1,875		2.28
Interest-bearing deposits	1,187,096		16,132		5.32		585,807		3,278		2.19
Loans held for sale	6,756		17		1.03		580		40		n/m
Total interest-earning assets	67,148,333		$	948,695	5.49	%	62,182,435		$	630,816	3.96	%
Non-interest-earning assets	6,459,493						5,823,755
Total Assets	$	73,607,826					$	68,006,190

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	11,335,734	$	—	—	%	$	13,590,667	$	—	—	%
Health savings accounts	8,235,632		3,126		0.15		7,854,425		1,146		0.06
Interest-bearing checking, money market and savings	32,673,899		214,891		2.61		29,798,562		33,808		0.45
Certificates of deposit and brokered deposits	7,342,757		75,938		4.10		2,716,885		2,538		0.37
Total deposits	59,588,022		293,955		1.96		53,960,539		37,492		0.28

Securities sold under agreements to repurchase and other borrowings	170,256		50		0.12		1,369,126		6,242		1.78
Federal Home Loan Bank advances	2,945,136		40,196		5.34		2,402,596		13,814		2.25
Long-term debt (1)	1,051,380		9,452		3.70		1,075,683		9,018		3.47
Total borrowings	4,166,772		49,698		4.72		4,847,405		29,074		2.38
Total interest-bearing liabilities	63,754,794		$	343,653	2.14	%	58,807,944		$	66,566	0.45	%
Non-interest-bearing liabilities	1,482,563						1,108,202
Total liabilities	65,237,357						59,916,146

Preferred stock	283,979						283,979
Common stockholders' equity	8,086,490						7,806,065
Total stockholders' equity	8,370,469						8,090,044
Total Liabilities and Stockholders' Equity	$	73,607,826					$	68,006,190
Tax-equivalent net interest income			605,042						564,250
Less: Tax-equivalent adjustments			(17,906)						(13,247)
Net interest income			$	587,136					$	551,003
Net interest margin					3.49	%					3.54	%

(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities and unrealized gain (loss) balances on securities available-for-sale and senior fixed-rate notes hedges are excluded.


WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Nine Months Ended September 30,
			2023						2022
(Dollars in thousands)	Average Balance		Interest		Yield/Rate		Average balance		Interest		Yield/Rate
Assets:
Interest-earning assets:
Loans and leases	$	50,733,691	$	2,313,030	6.02	%	$	42,125,526	$	1,317,941	4.14	%
Investment securities (1)	14,700,296		341,998		2.95		14,548,116		246,788		2.22
Federal Home Loan and Federal Reserve Bank stock	442,429		19,204		5.80		252,559		4,768		2.52
Interest-bearing deposits	1,872,657		71,536		5.04		623,866		4,711		1.00
Loans held for sale	35,982		454		1.68		12,160		73		0.80
Total interest-earning assets	67,785,055		$	2,746,222	5.30	%	57,562,227		$	1,574,281	3.60	%
Non-interest-earning assets	6,271,968						5,448,419
Total Assets	$	74,057,023					$	63,010,646

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	11,775,500	$	—	—	%	$	12,758,489	$	—	—	%
Health savings accounts	8,259,408		9,243		0.15		7,809,082		3,358		0.06
Interest-bearing checking, money market and savings	31,442,258		516,646		2.20		27,887,362		48,992		0.23
Certificates of deposit and brokered deposits	6,192,415		169,736		3.66		2,649,328		5,000		0.25
Total deposits	57,669,581		695,625		1.61		51,104,261		57,350		0.15

Securities sold under agreements to repurchase and other borrowings	430,989		7,940		2.43		1,006,391		9,876		1.29
Federal Home Loan Bank advances	5,104,372		196,878		5.09		1,198,754		17,034		1.87
Long-term debt (1)	1,061,643		28,422		3.68		1,017,120		24,973		3.40
Total borrowings	6,597,004		233,240		4.69		3,222,265		51,883		2.16
Total interest-bearing liabilities	64,266,585		$	928,865	1.93	%	54,326,526		$	109,233	0.27	%
Non-interest-bearing liabilities	1,462,723						1,043,313
Total liabilities	65,729,308						55,369,839

Preferred stock	283,979						268,202
Common stockholders' equity	8,043,736						7,372,605
Total stockholders' equity	8,327,715						7,640,807
Total Liabilities and Stockholders' Equity	$	74,057,023					$	63,010,646
Tax-equivalent net interest income			1,817,357						1,465,048
Less: Tax-equivalent adjustments			(51,109)						(33,137)
Net interest income			$	1,766,248					$	1,431,911
Net interest margin					3.49	%					3.35	%

(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities and unrealized gain (loss) balances on securities available-for-sale and senior fixed-rate notes hedges are excluded.


WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(Dollars in thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Loans and Leases (actual):
Commercial non-mortgage	$	18,058,524	$	19,499,160	$	19,014,810	$	18,663,164	$	17,807,234
Asset-based lending	1,632,962		1,718,251		1,760,527		1,821,642		1,803,719
Commercial real estate	20,583,254		20,661,071		20,513,738		19,619,145		18,862,619
Residential mortgages	8,228,451		8,140,182		8,001,563		7,963,420		7,617,955
Consumer	1,584,955		1,607,384		1,635,885		1,697,055		1,732,348
Loans and Leases	50,088,146		51,626,048		50,926,523		49,764,426		47,823,875
Allowance for credit losses on loans and leases	(635,438)		(628,911)		(613,914)		(594,741)		(574,325)
Loans and Leases, net	$	49,452,708	$	50,997,137	$	50,312,609	$	49,169,685	$	47,249,550

Loans and Leases (average):
Commercial non-mortgage	$	18,839,776	$	19,220,435	$	18,670,917	$	18,024,771	$	16,780,780
Asset-based lending	1,663,481		1,756,051		1,790,992		1,780,874		1,811,073
Commercial real estate	20,614,334		20,518,355		19,970,326		19,234,292		18,503,077
Residential mortgages	8,200,938		8,067,349		7,995,327		7,819,415		7,384,704
Consumer	1,593,659		1,622,525		1,667,630		1,715,513		1,750,044
Loans and Leases	$	50,912,188	$	51,184,715	$	50,095,192	$	48,574,865	$	46,229,678


WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited)
(Dollars in thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Nonperforming loans and leases:
Commercial non-mortgage	$	121,067	$	109,279	$	86,537	$	89,416	$	80,002

Asset-based lending	10,350		9,450		9,450		20,046		25,115
Commercial real estate	31,004		47,972		35,832		41,580		49,054
Residential mortgages	27,312		26,751		25,096		25,613		25,563
Consumer	25,320		25,417		28,105		27,136		29,782
Total nonperforming loans and leases	$	215,053	$	218,869	$	185,020	$	203,791	$	209,516

Other real estate owned and repossessed assets:
Commercial non-mortgage	$	2,687	$	2,152	$	153	$	78	$	—

Residential mortgages	662		662		662		2,024		2,024
Consumer	—		532		716		243		87
Total other real estate owned and repossessed assets	$	3,349	$	3,346	$	1,531	$	2,345	$	2,111
Total nonperforming assets	$	218,402	$	222,215	$	186,551	$	206,136	$	211,627




Past due 30-89 days:
Commercial non-mortgage	$	38,875	$	32,074	$	9,645	$	20,248	$	17,440
Asset-based lending	—		—		—		5,921		—
Commercial real estate	3,631		1,970		17,115		26,147		6,050
Residential mortgages	16,208		10,583		10,710		11,385		12,577
Consumer	12,016		6,718		6,110		9,194		9,656
Total past due 30-89 days	$	70,730	$	51,345	$	43,580	$	72,895	$	45,723
Past due 90 days or more and accruing	138		29		602		770		711
Total past due loans and leases	$	70,868	$	51,374	$	44,182	$	73,665	$	46,434


Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
	For the Three Months Ended
(Dollars in thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
ACL on loans and leases, beginning balance	$	628,911	$	613,914	$	594,741	$	574,325	$	571,499
Adoption of ASU No. 2022-02	—		—		5,873		—		—

Provision	35,839		35,249		37,821		40,649		31,352
Charge-offs:



Commercial portfolio	27,360		21,945		26,410		21,499		31,356


Consumer portfolio	3,642		1,085		1,098		1,193		1,453
Total charge-offs	31,002		23,030		27,508		22,692		32,809
Recoveries:



Commercial portfolio	292		1,024		1,574		895		1,413


Consumer portfolio	1,398		1,754		1,413		1,564		2,870
Total recoveries	1,690		2,778		2,987		2,459		4,283
Total net charge-offs	29,312		20,252		24,521		20,233		28,526
ACL on loans and leases, ending balance	$	635,438	$	628,911	$	613,914	$	594,741	$	574,325




ACL on unfunded loan commitments, ending balance	23,040		22,366		26,051		27,707		25,329
Total ACL, ending balance	$	658,478	$	651,277	$	639,965	$	622,448	$	599,654

WEBSTER FINANCIAL CORPORATION

Reconciliations to GAAP Financial Measures

The Company evaluates its business based on certain ratios that utilize non-GAAP financial measures. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the operating results and financial position of the Company. Other companies may define or calculate supplemental financial data differently.

The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. The return on average tangible common stockholders' equity (ROATCE) represents net income available to common stockholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and net intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. Tangible book value per common share represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by common shares outstanding at the end of the period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. Adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS), adjusted ROATCE, and adjusted return on average assets (ROAA) are calculated excluding after tax merger-related expenses.

See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP.


	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Efficiency ratio:
Non-interest expense	$	362,578	$	344,089	$	332,467	$	348,390	$	330,071
Less: Foreclosed property activity	(492)		(432)		(262)		(80)		(393)
Intangible assets amortization	8,899		9,193		9,497		8,240		8,511
Operating lease depreciation	1,146		1,639		1,884		2,021		2,115
Strategic initiatives and other (1)	—		—		—		143		11,617
Merger related	61,625		40,840		29,373		45,790		25,536

Non-interest expense	$	291,400	$	292,849	$	291,975	$	292,276	$	282,685
Net interest income	$	587,136	$	583,829	$	595,283	$	602,375	$	551,003
Add: Tax-equivalent adjustment	17,906		17,292		15,911		13,991		13,247
Non-interest income	90,382		89,374		70,766		102,179		113,636
Other income (2)	3,614		5,035		4,311		4,814		11,186
Less: Operating lease depreciation	1,146		1,639		1,884		2,021		2,115
(Loss) on sale of investment securities, net	—		(48)		(16,747)		(4,517)		(2,234)
Other (3)	—		—		—		—		2,548
Income	$	697,892	$	693,939	$	701,134	$	725,855	$	686,643
Efficiency ratio	41.75%		42.20%		41.64%		40.27%		41.17%

Return on average tangible common stockholders' equity:
Net income	$	226,475	$	234,968	$	221,004	$	244,751	$	233,968
Less: Preferred stock dividends	4,162		4,162		4,163		4,163		4,162
Add: Intangible assets amortization, tax-effected	7,030		7,262		7,503		6,510		6,724
Adjusted income	$	229,343	$	238,068	$	224,344	$	247,098	$	236,530
Adjusted income, annualized basis	$	917,372	$	952,272	$	897,376	$	988,392	$	946,120
Average stockholders' equity	$	8,370,469	$	8,395,298	$	8,215,676	$	7,960,900	$	8,090,044
Less: Average preferred stock	283,979		283,979		283,979		283,979		283,979
Average goodwill and other intangible assets, net	2,847,560		2,856,581		2,849,673		2,716,981		2,725,200
Average tangible common stockholders' equity	$	5,238,930	$	5,254,738	$	5,082,024	$	4,959,940	$	5,080,865
Return on average tangible common stockholders' equity	17.51%		18.12%		17.66%		19.93%		18.62%

(1)Strategic initiatives and other for the three months ended September 30, 2022, primarily includes a contribution to the Webster foundation of $10.5 million (presented within Other non-interest expense on the Consolidated Statements of Income).

(2)Other income includes the taxable equivalent of net income generated from low income housing tax-credit investments.

(3)Other for the three months ended September 30, 2022, includes of a gain related to the early termination of repurchase agreements.

WEBSTER FINANCIAL CORPORATION

Reconciliations to GAAP Financial Measures (continued)


	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Tangible equity:
Stockholders' equity	$	8,199,201	$	8,279,726	$	8,294,294	$	8,056,186	$	7,826,410
Less: Goodwill and other intangible assets, net	2,843,217		2,852,117		2,861,310		2,713,446		2,721,040
Tangible stockholders' equity	$	5,355,984	$	5,427,609	$	5,432,984	$	5,342,740	$	5,105,370
Total assets	$	73,130,851	$	74,038,243	$	74,844,395	$	71,277,521	$	69,052,566
Less: Goodwill and other intangible assets, net	2,843,217		2,852,117		2,861,310		2,713,446		2,721,040
Tangible assets	$	70,287,634	$	71,186,126	$	71,983,085	$	68,564,075	$	66,331,526
Tangible equity	7.62%		7.62%		7.55%		7.79%		7.70%

Tangible common equity:
Tangible stockholders' equity	$	5,355,984	$	5,427,609	$	5,432,984	$	5,342,740	$	5,105,370
Less: Preferred stock	283,979		283,979		283,979		283,979		283,979
Tangible common stockholders' equity	$	5,072,005	$	5,143,630	$	5,149,005	$	5,058,761	$	4,821,391
Tangible assets	$	70,287,634	$	71,186,126	$	71,983,085	$	68,564,075	$	66,331,526
Tangible common equity	7.22%		7.23%		7.15%		7.38%		7.27%

Tangible book value per common share:
Tangible common stockholders' equity	$	5,072,005	$	5,143,630	$	5,149,005	$	5,058,761	$	4,821,391
Common shares outstanding	172,056		173,261		174,712		174,008		174,116
Tangible book value per common share	$	29.48	$	29.69	$	29.47	$	29.07	$	27.69

Core deposits:
Total deposits	$	60,331,767	$	58,747,532	$	55,297,479	$	54,054,340	$	54,008,887
Less: Certificates of deposit	5,150,139		4,743,204		3,855,406		2,729,332		2,311,484
Brokered certificates of deposit	2,337,380		2,542,854		674,373		1,431,617		258,110
Core deposits	$	52,844,248	$	51,461,474	$	50,767,700	$	49,893,391	$	51,439,293



	Three months ended September 30, 2023
Adjusted ROATCE:
Net income	$	226,475
Less: Preferred stock dividends	4,162
Add: Intangible assets amortization, tax-effected	7,030

Merger related, tax-effected	45,116


Adjusted income	$	274,459
Adjusted income, annualized basis	$	1,097,836
Average stockholders' equity	$	8,370,469
Less: Average preferred stock	283,979
Average goodwill and other intangible assets, net	2,847,560
Average tangible common stockholders' equity	$	5,238,930
Adjusted return on average tangible common stockholders' equity	20.96		%

Adjusted ROAA:
Net income	$	226,475

Add: Merger related, tax-effected	45,116


Adjusted income	$	271,591
Adjusted income, annualized basis	$	1,086,364
Average assets	$	73,607,826
Adjusted return on average assets	1.48		%


GAAP to adjusted reconciliation:
	Three months ended September 30, 2023
(In millions, except per share data)	Pre-Tax Income		Net Income Available to Common Stockholders		Diluted EPS
Reported (GAAP)	$	278.4	$	222.3	$	1.28
Merger related	61.6		45.1		0.27

Adjusted (non-GAAP)	$	340.0	$	267.4	$	1.55