Slide 1: Earnings Conference Call Second Quarter 2025
Earnings Conference Call Second Quarter 2025 July 17, 2025 WEBSTER FINANCIAL CORPORATION
Slide 2: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights REPORTED • Highlighted results: ◦ Loans up $0.6 billion, or 1.2% LQ; $0.9 billion or 1.6% LQ excluding $242 million of loans moved to held for sale $370.1M PPNR ◦ Total deposits grew $0.7 billion, or 1.1% LQ ◦ Loan to deposit ratio 80.9% ◦ Efficiency ratio of 45.4%, do
Slide 3: Diversified and Stable Deposit Profile
Diversified and Stable Deposit Profile 1 Consumer Bank / Commercial Bank Corporate • 195+ financial • Sophisticated • Longstanding top • Leading • Tech-enabled cash • Specialized centers treasury services player nationally, professional sweep program treasury activities complemented by an offering f
Slide 4: Balance Sheet — End of Period
Balance Sheet — End of Period ($ in millions) 2Q25 Increase / (Decrease) 1Q25 2Q24 Key Observations Cash and interest-bearing deposits $ 2,994 $ 482 $ 1,458 • Securities portfolio: Securities 17,814 155 1,367 ◦ AFS $9.6 billion, 4.72% yield, duration of 4.4 years Commercial loans 42,652 388 882 ◦ HT
Slide 5: Loans
Loans ($ in millions, balances end of period) Loan Growth of 1.2% LQ LQ growth of $0.6 billion or 1.2% LQ Change YOY Change LQ Change YOY Change • Total loans up $0.6 billion from the prior quarter, with Portfolio 2Q25 growth across most categories ($) ($) (%) (%) C&I $ 14,232 $ 420 $ 1,124 3.0 % 8.
Slide 6: Deposits
Deposits ($ in millions, balances end of period) Deposit Growth of 1.1% LQ LQ growth of $0.7 billion or 1.1% LQ Change YOY Change LQ Change YOY Change 2Q25 • Deposit growth of $0.7 billion ($) ($) (%) (%) • Deposit cost increased 3 bps as growth in interSYNC offset Demand $ 10,342 $ 208 $ 347 2.0 %
Slide 7: Income Statement
Income Statement Compared to 1Q25 ($ in millions, except EPS) 2Q25 1Q25 Favorable / (Unfavorable) Key Observations Net interest income $ 621.2 $ 612.2 $ 9.0 • Net income of $258.8 million, up from $226.9 million in 1Q25 Non-interest income 94.7 92.6 2.1 Total revenue $ 715.8 $ 704.8 $ 11.0 • No adju
Slide 8: Net Interest Income
Net Interest Income ($ in millions) $612.2 $621.2 Linked Quarter NII $572.3 • Net interest income totaled $621.2 million, up from prior quarter by $9.0 5.65% million or 1.5%, driven by balance sheet growth and day count 5.42% 5.44% Linked Quarter NIM • Net interest margin decreased 4 bps due to high
Slide 9: Interest Rate Positioning
Interest Rate Positioning Balance sheet well positioned for up and down rate scenarios Rising vs. Flat Rate NII Scenarios Falling vs. Flat Rate NII Scenarios 1.4% 0.2% 0.8% 0.1% (0.5)% (0.2)% (0.1)% (0.9)% 1Q25 2Q25 1Q25 2Q25 Ramp Up 100 bps Ramp Up 200 bps Shock Down 100 bps Ramp Down 100 bps * Ass
Slide 10: Non-Interest Income
Non-Interest Income ($ in millions) $94.7 $92.2 $92.6 Non-interest income increased $2.1 million LQ (adj) $94.7 $92.6 • The increase in income primarily reflects growth in deposit service $92.2 (adj) fees and difference in credit valuation adjustment (CVA) • The modeled CVA was $(1.0) million for 2Q
Slide 11: Non-Interest Expense
Non-Interest Expense ($ in millions) $343.6 $345.7 $326.0 Expense increased $2.1 million LQ • The increase in expenses was primarily by investments in human capital offset by seasonal decline in benefit costs Expense increased $19.7 million vs. YOY • The increase was primarily attributable to invest
Slide 12: Allowance for Credit Losses on Loans & Leases
Allowance for Credit Losses on Loans & Leases ($ in millions) Provision: $78 Provision: $45 $74 $713 $35 $722 $690 $10 $4 $(36) $(55) Coverage % 1.31% 1.34% 1.35% 12/31/2024 1Q Net Charge- Loan Balances 1Q Macro/ 3/31/2025 2Q Net Charge- Loan Balances 2Q Macro/ 6/30/2025 Offs Credit Offs Credit 1Q25
Slide 13: Key Asset Quality Metrics
Key Asset Quality Metrics ($ in millions) Nonperforming Loans, OREO, NPL Ratio Net Charge-Offs (Recoveries) $565 $537 $54.6 $565 $36.5 $535 $33.0 $375 1.06% $369 1.00% $0.1 $0.3 0.72% $(0.1) 0.26% 0.42% 0.27% 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 Nonperforming Loans Nonperforming Assets NPL Ratio Commercial
Slide 14: Strong Capital Levels
Strong Capital Levels Webster Financial Capital Levels Webster Financial Capital Ratios 14.03% At Jun 30, At Mar 31, At Jun 30, 11.84% 2025* 2025 2024** 11.33% Common Equity Tier 1 risk-based capital 11.33% 11.25% 10.59% 8.57% Tangible common equity 7.46% 7.43% 7.18% 10.00% Tangible equity 7.82% 7.8
Slide 15: 2025 Full Year Outlook
2025 Full Year Outlook No significant changes to full year Outlook except yield curve assumptions Loan Growth • Full year loan growth of 4% to 5% Deposit Growth • Deposit growth of 4% to 5% • Full year NII of $2.47 billion to $2.50 billion (non-FTE), excluding ~$55 million of FTE adjustments NII • A
Slide 16: Supplemental Information
Supplemental Information pg. 17 to 19 Commercial Real Estate Portfolio pg. 20 to 23 Lines of Business Summary pg. 24 Net Interest Margin - Linked Quarter pg. 25 Earning Asset & Funding Mix pg. 26 to 27 Investment Portfolio pg. 28 Loan Originations & Mix pg. 29 Deposit Mix & Rate pg. 30 to 31 Non-GAA
Slide 17: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ in millions) Commercial Real Estate Portfolio ex. Owner Occupied Portfolio Characteristics Loan-to- Amortizing Classified Non- 12-Month • Portfolio balance of $18.8 billion Property Type Balances Value 1 DSCR 2 % Accrual % Maturities • Weighted Average LTV / Amort
Slide 18: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ in millions) Balances by Geography & Property Type Portfolio Profile and Metrics Other NY Property Type NYC County CT Southeast NJ MA Other • Portfolio is concentrated in NYC/NY, particularly ADC / Construction 26 % 16 % 10 % 13 % 6% 9% 19 % Multifamily Multifamil
Slide 19: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Investor CRE portfolio remains well diversified Investor CRE Portfolio of $18.8 billion Rent Regulated Multifamily Detail • $1.4 billion in balances represents properties where > 50% of NOI is RR • $98 million in additional balances where RR NOI between 25-50% ADC /
Slide 20: Commercial Banking
Commercial Banking ($ in millions) Total Loans Key Business Metrics Increase / (Decrease) $40,331 $40,791 $41,198 2Q25 1Q25 2Q24 $329 $325 Loan originations $ 3,252 $ 1,135 $ 742 $355 Loan fundings $ 2,235 $ 573 $ 500 Coupon on fundings 6.32% (0.22)% (1.19)% $20,062 $20,062 $20,942 Deposits $ 16,225
Slide 21: Healthcare Financial Services
Healthcare Financial Services ($ in millions) Total Footings Key Business Metrics Increase / (Decrease) $15,353 $15,931 2Q25 1Q25 2Q24 $14,914 HSA accounts ('000) 3,441 (11) 131 HSA new accounts ('000) 90 (213) (10) $5,108 $5,751 $5,522 Ametros accounts ('000) 31 1 4 Ametros new accounts ('000) 1 —
Slide 22: Healthcare Financial Services — PTNR Detail
Healthcare Financial Services — PTNR Detail ($ in millions) HSA Bank PTNR Favorable / (Unfavorable) Ametros PTNR Favorable / (Unfavorable) 2Q25 1Q25 2Q24 2Q25 1Q25 2Q24 Net interest income $ 84.4 $ 0.5 $ 4.1 Net interest income $ 13.2 $ 0.8 $ 1.9 Interchange revenue 14.2 (0.4) 0.8 Medical services f
Slide 23: Consumer Banking
Consumer Banking ($ in millions) Total Loans $12,267 $12,472 $11,239 $1,811 $1,785 Key Business Metrics Increase / (Decrease) $1,800 2Q25 1Q25 2Q24 Loan originations - Consumer Lending $ 516 $ 11 $ 174 $9,439 $10,456 $10,687 Loan originations - Small Business $ 60 $ (6) $ (42) Coupon on fundings 6.6
Slide 24: Net Interest Margin — Linked Quarter
Net Interest Margin — Linked Quarter 2Q25 1Q25 Increase / (Decrease) Average Yield/ Average ($ in millions) Balance Interest Rate Balance Interest BPs 1 Securities $ 18,226 $ 200.0 4.39 % $ 112 $ 3.2 4 Money market & other 2,443 27.6 4.48 300 3.7 1 Loans held for sale 58 — 0.04 29 — (17) Commercial
Slide 25: Earning Asset & Funding Mix
Earning Asset & Funding Mix ($ in millions, end of period balances) Earning Asset Mix Type Balance Total % Floating % Periodic % Fixed % • Floating and periodic rate loans represent 42% of CRE Loans $ 21,359 29 % 54 % 6% 40 % earning assets: C&I Loans 21,293 29 52 15 33 Resi & Other Consumer 10,033
Slide 26: Investment Portfolio
Investment Portfolio ($ in millions, end of period balances) Investment Securities Duration / Yield $17,659 $17,814 $16,447 $9,361 $9,621 4.6 4.7 4.7 $7,809 3.7 3.0 3.2 $8,638 $8,298 $8,193 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 HTM Securities AFS Securities Portfolio Duration (years) Purchase Duration (year
Slide 27: Investment Securities
Investment Securities ($ in millions, end of period balances; portfolio duration in years) Available-for-Sale June 30, 2025 March 31, 2025 Increase / (Decrease) Balances Portfolio Duration Balances Portfolio Duration Balances Portfolio Duration Government Agency Debentures $ 192 $ 192 $ — Municipal
Slide 28: Loan Originations & Mix
Loan Originations & Mix ($ in millions) Originations by Loan Portfolio 2Q25 1Q25 2Q24 End of period balances Full quarter originations Balance Originations Balance Originations Balance Originations Commercial non-mortgage $ 19,943 $ 2,094 $ 19,496 $ 1,488 $ 18,022 $ 1,412 Asset-based lending 1,350 —
Slide 29: Deposit Mix & Rate
Deposit Mix & Rate ($ in millions) End of period balances 2Q25 1Q25 2Q24 Full quarter cost Balance Rate Balance Rate Balance Rate Demand $ 10,342 —% $ 10,134 —% $ 9,994 —% Interest-bearing checking 8,827 1.74 8,688 1.71 8,599 1.90 Health savings accounts 9,065 0.16 9,181 0.16 8,475 0.15 interSYNC 8,
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in thousands, except per share amounts) Efficiency Ratio 2Q25 1Q25 2Q24 Non-interest expense $ 345,714 $ 343,644 $ 326,021 Less: Foreclosed property activity 541 517 (364) Intangible assets amortization 9,093 9,237 8,716 Operating lease depreciation 9 16 560 Non-interest
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in thousands) Tangible Common Equity Ratio 2Q25 1Q25 2Q24 Stockholders' equity $ 9,337,617 $ 9,204,154 $ 8,809,268 Less: Goodwill and other intangible assets 3,184,039 3,193,132 3,242,193 Tangible stockholders' equity 6,153,578 6,011,022 5,567,075 Less: Preferred stock 28
Slide 32: Forward-Looking Statements
WBS 2Q25 Financial Review Forward-Looking Statements This presentation 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,” “out
Slide 33: Webster Financial Corporation
S) Webster Financial Corporation