Webster Financial Corporation · NYSE:WBS
Webster Financial — Q3 2025 Earnings Presentation
33 slides from Webster Financial's earnings presentation, Oct 17, 2025
Slide 1: Earnings Conference Call Third Quarter 2025
Earnings Conference Call Third Quarter 2025 October 17, 2025 WEBSTER FINANCIAL CORPORATION
Slide 2: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights REPORTED • Highlighted results: ◦ Robust balance sheet growth: ▪ Loans +2.6% LQ $375.9M PPNR ▪ Deposits +2.8% LQ • ◦ Loan to deposit ratio 80.8% NIM of 3.40%, down 4 bps LQ $254.1M NET INCOME APPLICABLE TO COMMON • Strong capital ratios: ◦ CET1 of 11.40%1 ◦ TCE of 7.50%
Slide 3: Diversified and Stable Deposit Profile
Diversified and Stable Deposit Profile Consumer Bank / Commercial Bank Corporate • 195+ financial • Sophisticated • Longstanding top • Leading • Tech-enabled cash • Specialized centers treasury services player nationally, professional sweep program treasury activities complemented by an offering for
Slide 4: Balance Sheet — End of Period
Balance Sheet — End of Period ($ in millions) 3Q25 Increase / (Decrease) 2Q25 3Q24 Key Observations Cash and interest-bearing deposits $ 3,062 $ 69 $ (135) • Securities portfolio: Securities 18,010 196 849 ◦ AFS $9.9 billion, 4.79% yield, duration of 4.1 years Commercial loans 43,824 1,172 2,012 ◦ H
Slide 5: Loans
Loans ($ in millions, balances end of period) Loan Growth of 2.6% LQ LQ growth of $1.4 billion or 2.6% LQ Change YOY Change LQ Change YOY Change • Total loans up $1.4 billion from the prior quarter, with Portfolio 3Q25 growth across all categories ($) ($) (%) (%) C&I1 $ 14,609 $ 377 $ 1,183 2.6 % 8.
Slide 6: Deposits
Deposits ($ in millions, balances end of period) Deposit Growth of 2.8% LQ LQ growth of $1.9 billion or 2.8% LQ Change YOY Change LQ Change YOY Change 3Q25 • Deposit growth of $1.9 billion, benefitting from seasonal ($) ($) (%) (%) inflows of public funds deposits Demand $ 10,488 $ 146 $ (251) 1.4 %
Slide 7: Income Statement
Income Statement Compared to 2Q25 ($ in millions, except EPS) 3Q25 2Q25 Favorable / (Unfavorable) Key Observations Net interest income $ 631.7 $ 621.2 $ 10.5 • Net income of $261.2 million, up from $258.8 million in 2Q25 Non-interest income 100.9 94.7 6.2 Total revenue $ 732.6 $ 715.8 $ 16.8 • Third
Slide 8: Net Interest Income
Net Interest Income ($ in millions) $621.2 $631.7 $589.9 Linked Quarter NII • Net interest income totaled $631.7 million, up from prior quarter by 5.69% $10.5 million or 1.7%, driven by balance sheet growth and day count, 5.44% 5.45% partially offset by margin compression Linked Quarter NIM • Net in
Slide 9: Interest Rate Positioning
Interest Rate Positioning Balance sheet well positioned for up and down rate scenarios Rising vs. Flat Rate NII Scenarios Falling vs. Flat Rate NII Scenarios 0.2% 0.1% 0.1% (0.2)% (0.2)% (0.1)% (0.1)% (1.0)% 2Q25 3Q25 2Q25 3Q25 Ramp Up 100 bps Ramp Up 200 bps Shock Down 100 bps Ramp Down 100 bps * A
Slide 10: Non-Interest Income
Non-Interest Income ($ in millions) Non-interest income increased $6.2 million LQ $100.9 • The increase in income primarily reflects increased activity in client $93.3 $94.7 hedging activities and a $4 million beneficial legal settlement (adj) $100.9 $94.7 • The modeled CVA was $(0.5) million for 3Q
Slide 11: Non-Interest Expense
Non-Interest Expense ($ in millions) $349.1 $356.7 $349.0 $345.7 $20.6 Expense increased $11.0 million LQ • The increase in expenses was primarily attributable to human capital investment, including performance-based incentives Expense increased $28.3 million vs. adjusted YOY • The increase was prim
Slide 12: Allowance for Credit Losses on Loans & Leases
Allowance for Credit Losses on Loans & Leases ($ in millions) Provision: $45 Provision: $44 $713 $35 $722 $19 $25 $728 $10 $(36) $(38) Coverage % 1.34% 1.35% 1.32% 3/31/2025 2Q Net Charge- Loan Balances 2Q Macro/ 6/30/2025 3Q Net Charge- Loan Balances 3Q Macro/ 9/30/2025 Offs Credit Offs Credit 2Q25
Slide 13: Key Asset Quality Metrics
Key Asset Quality Metrics ($ in millions) Nonperforming Loans, OREO, NPL Ratio Net Charge-Offs (Recoveries) $537 $545 $427 $535 $544 $36.0 $36.5 $37.1 $426 1.00% 0.99% 0.82% $1.2 $(0.6) $(0.1) 0.27% 0.27% 0.28% 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 Nonperforming Loans Nonperforming Assets NPL Ratio Commerci
Slide 14: Strong Capital Levels
Strong Capital Levels Webster Financial Capital Levels Webster Financial Capital Ratios At Sep 30, At Jun 30, At Sep 30, 2025* 2025 2024** 14.69% Common Equity Tier 1 risk-based capital 11.40% 11.35% 11.25% 11.40% 11.90% Tangible common equity 7.50% 7.46% 7.48% 8.52% Tangible equity 7.86% 7.82% 7.85
Slide 15: Fourth Quarter 2025 Outlook
Fourth Quarter 2025 Outlook Outlook assumes no material changes to the regulatory environment or macro environment / rate assumptions Loan Growth • Linked quarter loan growth of ~1% Deposit Growth • Linked quarter deposits will decline ~1% primarily due to seasonality in public funds • In the range
Slide 16: Supplemental Information
Supplemental Information pg. 17 to 19 Commercial Real Estate Portfolio pg. 20 to 23 Lines of Business Summary pg. 24 Net Interest Margin - Linked Quarter pg. 25 Earning Asset & Funding Mix pg. 26 to 27 Investment Portfolio pg. 28 Loan Originations & Mix pg. 29 Deposit Mix & Rate pg. 30 to 31 Non-GAA
Slide 17: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ in millions) Commercial Real Estate Portfolio ex. Owner Occupied Portfolio Characteristics Loan-to- Amortizing Classified Non- 12-Month • Portfolio balance of $19.2 billion Property Type Balances Value 1 DSCR 2 % Accrual % Maturities • Weighted Average LTV / Amort
Slide 18: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ 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 25 % 18 % 13 % 12 % 4% 8% 20 % Multifamily & Rent-Reg
Slide 19: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Investor CRE portfolio remains well diversified Investor CRE Portfolio of $19.2 billion Rent Regulated Multifamily Detail • $1.3 billion in balances represents properties where > 50% of NOI is RR 2.3% • $98 million in additional balances where RR NOI between 25-50% A
Slide 20: Commercial Banking
Commercial Banking ($ in millions) Total Loans $42,361 Key Business Metrics Increase / (Decrease) $40,372 $41,198 3Q25 2Q25 3Q24 $310 $325 Loan originations $ 3,529 $ 277 $ 1,331 $337 Loan fundings $ 2,611 $ 376 $ 1,352 $20,623 Coupon on fundings 6.15% (0.17)% (0.98)% $20,062 $20,385 Deposits $ 18,2
Slide 21: Healthcare Financial Services
Healthcare Financial Services ($ in millions) Total Footings Key Business Metrics Increase / (Decrease) $16,575 $15,931 3Q25 2Q25 3Q24 $15,145 HSA accounts ('000) 3,442 1 129 $6,270 HSA new accounts ('000) 107 17 (4) $5,751 $5,205 Ametros accounts ('000) 33 2 5 Ametros new accounts ('000) 2 1 1 $963
Slide 22: Healthcare Financial Services — PTNR Detail
Healthcare Financial Services — PTNR Detail ($ in millions) HSA Bank PTNR Favorable / (Unfavorable) Ametros PTNR Favorable / (Unfavorable) 3Q25 2Q25 3Q24 3Q25 2Q25 3Q24 Net interest income $ 85.9 $ 1.5 $ 3.9 Net interest income $ 14.1 $ 0.9 $ 2.2 Interchange revenue 12.7 (1.5) 0.4 Medical services f
Slide 23: Consumer Banking
Consumer Banking ($ in millions) Total Loans $12,472 $12,683 $11,571 $1,785 $1,772 Key Business Metrics Increase / (Decrease) $1,783 3Q25 2Q25 3Q24 Loan originations - Consumer Lending $ 475 $ (41) $ (50) $10,687 $10,911 Loan originations - Small Business $ 59 $ (1) $ (23) $9,788 Coupon on fundings
Slide 24: Net Interest Margin — Linked Quarter
Net Interest Margin — Linked Quarter 3Q25 2Q25 Increase / (Decrease) Average Yield/ Average ($ in millions) Balance Interest Rate Balance Interest BPs Securities 1 $ 18,372 $ 203.6 4.43 % $ 146 $ 3.5 4 Money market & other 2,466 28.3 4.51 23 0.7 3 Loans held for sale 193 4.0 8.28 135 4.0 824 Commerc
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 43% of CRE Loans $ 21,911 29 % 54 % 6% 40 % earning assets: C&I Loans 21,913 29 48 20 32 Resi & Other Consumer 10,244
Slide 26: Investment Portfolio
Investment Portfolio ($ in millions, end of period balances) Investment Securities Duration / Yield $17,161 $17,814 $18,010 $8,595 $9,621 $9,932 4.5 4.7 4.4 4.7 3.3 3.2 $8,566 $8,193 $8,078 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 HTM Securities AFS Securities Portfolio Duration (years) Purchase Duration (year
Slide 27: Investment Securities
Investment Securities ($ in millions, end of period balances; portfolio duration in years) Available-for-Sale September 30, 2025 June 30, 2025 Increase / (Decrease) Balances Portfolio Duration Balances Portfolio Duration Balances Portfolio Duration Government Agency Debentures $ 196 $ 192 $ 4 Munici
Slide 28: Loan Originations & Mix
Loan Originations & Mix ($ in millions) Originations by Loan Portfolio 3Q25 2Q25 3Q24 End of period balances Full quarter originations Balance Originations Balance Originations Balance Originations Commercial non-mortgage $ 20,654 $ 2,111 $ 19,943 $ 2,094 $ 18,657 $ 1,655 Asset-based lending 1,258 3
Slide 29: Deposit Mix & Rate
Deposit Mix & Rate ($ in millions) End of period balances 3Q25 2Q25 3Q24 Full quarter cost Balance Rate Balance Rate Balance Rate Demand $ 10,488 —% $ 10,342 —% $ 10,739 —% Interest-bearing checking 9,564 1.79 8,827 1.74 9,065 1.96 Health savings accounts 9,135 0.17 9,065 0.16 8,951 0.15 interSYNC 9
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in thousands, except per share amounts) Efficiency Ratio 3Q25 2Q25 3Q24 Non-interest expense $ 356,669 $ 345,714 $ 348,958 Less: Foreclosed property activity 1,535 541 (687) Intangible assets amortization 8,966 9,093 8,491 Operating lease depreciation 3 9 197 FDIC special
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in thousands) Tangible Common Equity Ratio 3Q25 2Q25 3Q24 Stockholders' equity $ 9,462,677 $ 9,337,617 $ 9,198,050 Less: Goodwill and other intangible assets 3,175,747 3,184,039 3,212,050 Tangible stockholders' equity 6,286,930 6,153,578 5,986,000 Less: Preferred stock 28
Slide 32: Forward-Looking Statements
WBS 3Q25 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 "could," “believes,” “anticipates,” “expects,” “inten
Slide 33: Webster Financial Corporation
S) Webster Financial Corporation