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Regulatory Capital and Restrictions
 3 Months Ended
Mar. 31, 2025
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Capital and Restrictions Regulatory Capital and Restrictions
Regulatory Capital Requirements
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators that could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and/or the regulatory framework for prompt corrective action (applies to the Bank only), both the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated pursuant to regulatory directives. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Quantitative measures established by Basel III to ensure capital adequacy require the Company and the Bank to maintain minimum ratios of CET1 Risk-Based Capital, Tier 1 Risk-Based Capital, Total Risk-Based Capital, and Tier 1 Leverage Capital, as defined in the regulations. CET1 capital consists of common stockholders’ equity, less deductions for goodwill and other intangible assets, and certain deferred tax adjustments. At the time of initial adoption of the Basel III Capital Rules, the Company had elected to opt-out of the requirement to include certain components of AOCI in CET1 capital. Tier 1 capital consists of CET1 capital plus preferred stock. Total capital consists of Tier 1 capital and Tier 2 capital, as defined in the regulations. Tier 2 capital includes qualifying subordinated debt and the permissible portion of the ACL.
At March 31, 2025, and December 31, 2024, both the Company and the Bank were classified as “well-capitalized.”
The following tables provides information on the capital ratios for the Company and the Bank:
March 31, 2025
 
Actual (1)
Minimum RequirementWell Capitalized
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Webster Financial Corporation
CET1 Risk-Based Capital$6,276,086 11.25 %$2,510,372 4.5 %$3,626,093 6.5 %
Tier 1 Risk-Based Capital6,560,065 11.76 3,347,163 6.0 4,462,884 8.0 
Total Risk-Based Capital7,788,501 13.96 4,462,884 8.0 5,578,605 10.0 
Tier 1 Leverage Capital 6,560,065 8.54 3,072,950 4.0 3,841,187 5.0 
Webster Bank
CET1 Risk-Based Capital$6,988,372 12.56 %$2,504,775 4.5 %$3,618,009 6.5 %
Tier 1 Risk-Based Capital6,988,372 12.56 3,339,701 6.0 4,452,934 8.0 
Total Risk-Based Capital7,684,411 13.81 4,452,934 8.0 5,566,168 10.0 
Tier 1 Leverage Capital 6,988,372 9.11 3,069,811 4.0 3,837,264 5.0 
December 31, 2024
 
Actual (1)
Minimum RequirementWell Capitalized
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Webster Financial Corporation
CET1 Risk-Based Capital$6,318,876 11.54 %$2,464,542 4.5 %$3,559,895 6.5 %
Tier 1 Risk-Based Capital6,602,855 12.06 3,286,057 6.0 4,381,409 8.0 
Total Risk-Based Capital7,800,717 14.24 4,381,409 8.0 5,476,761 10.0 
Tier 1 Leverage Capital 6,602,855 8.70 3,034,369 4.0 3,792,961 5.0 
Webster Bank
CET1 Risk-Based Capital$6,847,474 12.53 %$2,460,031 4.5 %$3,553,378 6.5 %
Tier 1 Risk-Based Capital6,847,474 12.53 3,280,042 6.0 4,373,389 8.0 
Total Risk-Based Capital7,512,143 13.74 4,373,389 8.0 5,466,736 10.0 
Tier 1 Leverage Capital 6,847,474 9.04 3,031,190 4.0 3,788,988 5.0 
(1)In accordance with regulatory capital rules, the Company elected to delay the estimated impact of the adoption of CECL on its regulatory capital over a two-year deferral period, which ended on January 1, 2022, and a subsequent three-year transition period, which ended on December 31, 2024. During the three-year transition period, regulatory capital ratios phased out the aggregate amount of the regulatory capital benefit provided from the delayed CECL adoption in the initial two years. For 2024, the Company was allowed 25% of the regulatory capital benefit as of December 31, 2021. Full absorption occurred in 2025.
Dividend Restrictions
The Holding Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to stockholders and for other cash requirements. Dividends paid by the Bank are subject to various federal and state regulatory limitations. Express approval by the OCC is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels or if the amount would exceed net income for that year combined with undistributed net income for the preceding two years. The Bank paid the Holding Company dividends of $100.0 million and $175.0 million for the three months ended March 31, 2025, and 2024, respectively, for which no express approval from the OCC was required.
Cash Restrictions
The Bank is required under Federal Reserve regulations to maintain cash reserve balances in the form of vault cash or deposits held at a FRB to ensure that it is able to meet customer demands. The reserve requirement ratio is subject to adjustment as economic conditions warrant. On March 26, 2020, the Federal Reserve reduced the reserve requirement ratios on all net transaction accounts to zero percent. As a result, the Bank has not been required to hold cash reserve balances since that date.