Webster Financial Corporation ("Webster") (NYSE:WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $212.2 million, or $1.23 per diluted share, for the quarter ended March 31, 2024, compared to $216.8 million, or $1.24 per diluted share, for the quarter ended March 31, 2023.

First quarter 2024 results include $13.2 million pre-tax ($20.8 million after tax), or $0.12¹ per diluted share, of net charges related to an increase in the FDIC special assessment estimate, Ametros acquisition expenses, securities repositioning, a net gain on sale of mortgage servicing rights ("MSRs"), and a discrete tax adjustment. Excluding these items, adjusted earnings per diluted share would have been $1.35¹ for the quarter ended March 31, 2024.

"We reported solid results in the first quarter, including an adjusted return on assets of 1.26 percent and an adjusted return on tangible common equity of 17.85 percent," said John R. Ciulla, chairman and chief executive officer. "We also enhanced our distinctive deposit franchise with the close of the Ametros acquisition, which expands our expertise in healthcare financial services."

Highlights for the first quarter of 2024:

Revenue of $667.1 million.
Period end loan and lease balance of $51.1 billion, up $0.4 billion or 0.7 percent from prior quarter; consisting of 80.9 percent commercial loans and leases, 19.1 percent consumer loans, and a loan to deposit ratio of 84.1 percent.
Period end deposit balance of $60.7 billion, down $36.5 million or 0.1 percent from prior quarter; core deposit growth of $1.5 billion from prior quarter.
Provision for credit losses of $45.5 million.
Return on average assets of 1.15 percent; adjusted 1.26 percent¹.
Return on average tangible common equity of 16.30 percent¹; adjusted 17.85 percent¹.
Net interest margin of 3.35 percent, down 7 basis points from prior quarter.
Common equity tier 1 ratio of 10.51 percent.
Efficiency ratio of 45.25 percent¹.
Tangible common equity ratio of 7.15 percent¹.

"Webster generated strong deposit growth in key businesses this quarter, including HSA Bank and Ametros," said Glenn MacInnes, executive vice president and chief financial officer. "Our funding profile and overall balance sheet strength puts us in a unique position to deliver for our clients."

Line of Business performance compared to the first quarter of 2023

Effective January 1, 2024, Webster realigned certain of its business banking operations and related accounts from Commercial Banking to Consumer Banking to deliver operational efficiencies and better serve its customers. As a result, $1.5 billion of loans and $2.2 billion of deposits were moved from Commercial Banking to Consumer Banking. Prior period results have been recast accordingly.

Commercial Banking

Webster's Commercial Banking segment serves businesses that have more than $10 million of revenue through its regional banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, private banking, and treasury services business units. At March 31, 2024, Commercial Banking had $39.9 billion in loans and leases and $16.1 billion in deposits, as well as a combined $3.0 billion in assets under administration and management.

Commercial Banking Operating Results:

						Percent
	Three months ended March 31,					Favorable/
(In thousands)		2024		2023		(Unfavorable)
Net interest income		$	341,942	$	360,293	(5.1	)%
Non-interest income			34,280		33,720	1.7
Operating revenue			376,222		394,013	(4.5	)
Non-interest expense			106,225		98,833	(7.5	)
Pre-tax, pre-provision net revenue		$	269,997	$	295,180	(8.5	)

						Percent
		At March 31,				Increase/
(In millions)		2024		2023		(Decrease)
Loans and leases		$	39,883	$	40,127	(0.6	)%
Deposits			16,075		16,287	(1.3	)
AUA / AUM (off balance sheet)			3,017		2,670	13.0

Pre-tax, pre-provision net revenue decreased $25.2 million, to $270.0 million, in the quarter as compared to prior year. Net interest income decreased $18.4 million, to $341.9 million, primarily driven by lower deposit balances and higher rates paid on deposits. Non-interest income increased $0.6 million, to $34.3 million, primarily driven by increases in cash management fees and interest rate hedging activities, partially offset by lower net loan servicing income. Non-interest expense increased $7.4 million, to $106.2 million, primarily resulting from continued investments in talent, operational support, and technology to support balance sheet growth.

Healthcare Financial Services

Webster established a Healthcare Financial Services segment this quarter, which is comprised of HSA Bank and the newly acquired Ametros business. This segment offers consumer-directed healthcare solutions that include health savings accounts, health reimbursement arrangements, administration of medical insurance claim settlements, flexible spending accounts and commuter benefits. 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 March 31, 2024, Healthcare Financial Services had $14.7 billion in total footings comprising $9.5 billion in deposits and $5.2 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

						Percent
	Three months ended March 31,					Favorable/
(In thousands)		2024		2023		(Unfavorable)
Net interest income		$	86,138	$	71,730	20.1	%
Non-interest income			31,061		24,067	29.1
Operating revenue			117,199		95,797	22.3
Non-interest expense			52,127		43,700	(19.3	)
Pre-tax, net revenue		$	65,072	$	52,097	24.9


		At March 31,				Percent
(Dollars in millions)		2024		2023		Increase
Number of accounts (thousands)			3,344		3,172	5.4	%

Deposits		$	9,474	$	8,273	14.5
Linked investment accounts (off balance sheet)			5,194		3,776	37.6
Total footings		$	14,668	$	12,049	21.7

Pre-tax net revenue increased $13.0 million, to $65.1 million, in the quarter as compared to prior year. The increase in pre-tax net revenue was partially attributable to the acquisition of Ametros in the quarter. Net interest income increased $14.4 million, to $86.1 million, primarily due to $5.7 million from Ametros and an increase in net deposit spread, and deposit growth at HSA Bank. Non-interest income increased $7.0 million, to $31.1 million, primarily due to $4.6 million from Ametros, as well as higher account fees and interchange fees at HSA Bank. Non-interest expense increased $8.4 million, to $52.1 million, primarily due to $7.3 million from Ametros, coupled with higher compensation and benefits expense, and service contract expense related to account growth at HSA Bank.

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 business banking business units, as well as a distribution network consisting of 196 banking centers and 347 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 March 31, 2024, Consumer Banking had $11.2 billion in loans and $26.9 billion in deposits, as well as $8.1 billion in assets under administration.

Consumer Banking Operating Results:

						Percent
	Three months ended March 31,					Favorable/
(In thousands)		2024		2023		(Unfavorable)
Net interest income		$	205,777	$	234,604		(12.3	)%
Non-interest income			33,978		27,636		22.9
Operating revenue			239,755		262,240		(8.6	)
Non-interest expense			120,121		116,555		(3.1	)
Pre-tax, pre-provision net revenue		$	119,634	$	145,685		(17.9	)


		At March 31,				Percent
(In millions)		2024		2023		Increase
Loans		$	11,209	$	10,777		4.0	%
Deposits			26,914		25,708		4.7
AUA (off balance sheet)			8,125		7,750		4.8

Pre-tax, pre-provision net revenue decreased $26.1 million, to $119.6 million, in the quarter as compared to prior year. Net interest income decreased $28.8 million, to $205.8 million, primarily driven by higher rates paid on deposits, partially offset by loan and deposit growth. Non-interest income increased $6.3 million, to $34.0 million, primarily driven by a net gain on sale of MSRs, partially offset by lower deposit service fees and loan related fees. Non-interest expense increased $3.6 million, to $120.1 million, primarily driven by higher compensation and operational support expenses, partially offset by decreases in technology costs and professional services expenses.

Consolidated financial performance:

Quarterly net interest income compared to the first quarter of 2023:

Net interest income was $567.7 million compared to $595.3 million.
Net interest margin was 3.35 percent compared to 3.66 percent. The yield on interest-earning assets increased by 51 basis points, and the cost of interest-bearing liabilities increased by 87 basis points.
Average interest-earning assets totaled $68.1 billion and increased by $2.0 billion, or 3.1 percent.
Average loans and leases totaled $50.9 billion and increased by $0.8 billion, or 1.7 percent.
Average deposits totaled $60.6 billion and increased by $5.8 billion, or 10.5 percent.

Quarterly provision for credit losses:

The provision for credit losses was $45.5 million in the quarter, contributing to a $5.7 million increase in the allowance for credit losses on loans and leases from prior quarter. The provision also contributed to a decrease in the reserve on unfunded loan commitments of $0.2 million. The provision for credit losses was $36.0 million in the prior quarter, and $46.7 million a year ago.
Net charge-offs were $37.5 million, compared to $34.0 million in the prior quarter, and $24.5 million a year ago. The ratio of net charge-offs to average loans and leases was 0.29 percent, compared to 0.27 percent in the prior quarter, and 0.20 percent a year ago.
The allowance for credit losses on loans and leases represented 1.26 percent of total loans and leases, compared to 1.25 percent at December 31, 2023, and 1.21 percent at March 31, 2023. The allowance represented 226 percent of nonperforming loans and leases at March 31, 2024, compared to 303 percent at December 31, 2023, and 332 percent at March 31, 2023.

Quarterly non-interest income compared to the first quarter of 2023:

Total non-interest income was $99.4 million compared to $70.8 million, an increase of $28.6 million. Total non-interest income includes a $9.8 million loss on the sale of investment securities and an $11.7 million net gain on the sale of MSRs, compared to a $16.7 million loss on the sale of investment securities a year ago. Excluding those items, total non-interest income increased $10.0 million. The increase is primarily attributable to the addition of Ametros and BOLI events.

Quarterly non-interest expense compared to the first quarter of 2023:

Total non-interest expense was $335.9 million compared to $332.5 million, an increase of $3.4 million. Total non-interest expense includes $11.9 million related to an increase to the FDIC special assessment estimate and $3.1 million of Ametros acquisition expenses, compared to $29.4 million of Sterling merger charges a year ago. Excluding those charges, total non-interest expense increased $17.8 million. The increase is primarily attributable to the addition of Ametros and higher performance-based incentive accruals.

Quarterly income taxes compared to the first quarter of 2023:

Income tax expense was $69.3 million compared to $65.8 million, and the effective tax rate was 24.3 percent compared to 23.0 percent. The higher effective tax rate in the current period reflects the recognition of a $10.9 million discrete expense for an out-of-period adjustment, impacting the effective tax rate in the current period by 3.8 percentage points.

Investment securities:

Total investment securities, net were $16.3 billion, compared to $16.0 billion at December 31, 2023, and $14.9 billion at March 31, 2023. The carrying value of the available-for-sale portfolio included $758.5 million of net unrealized losses, compared to $708.7 million at December 31, 2023, and $766.4 million at March 31, 2023. The carrying value of the held-to-maturity portfolio does not reflect $897.2 million of net unrealized losses, compared to $810.2 million at December 31, 2023, and $742.8 million at March 31, 2023.

Loans and leases:

Total loans and leases were $51.1 billion, compared to $50.7 billion at December 31, 2023, and $50.9 billion at March 31, 2023. Compared to December 31, 2023, commercial loans and leases decreased by $303.1 million, commercial real estate loans increased by $711.8 million, residential mortgages decreased by $1.8 million, and consumer loans decreased by $34.3 million.
Compared to a year ago, commercial loans and leases decreased by $1.3 billion, commercial real estate loans increased by $1.4 billion, residential mortgages increased by $224.6 million, and consumer loans decreased by $101.9 million.
Loan originations for the portfolio were $2.5 billion, compared to $3.2 billion in the prior quarter, and $3.3 billion a year ago. In addition, $2.9 million of residential loans were originated for sale in the quarter, compared to $3.4 million in the prior quarter, and $2.5 million a year ago.

Asset quality:

Total nonperforming loans and leases were $283.6 million, or 0.56 percent of total loans and leases, compared to $209.5 million, or 0.41 percent of total loans and leases, at December 31, 2023, and $185.0 million, or 0.36 percent of total loans and leases, at March 31, 2023.
Past due loans and leases were $125.2 million, compared to $46.6 million at December 31, 2023, and $44.2 million at March 31, 2023. The increase from prior quarter is driven primarily by commercial real estate.

Deposits and borrowings:

Total deposits were $60.7 billion, compared to $60.8 billion at December 31, 2023, and $55.3 billion at March 31, 2023. Core deposits to total deposits¹ were 88.6 percent at March 31, 2024, compared to 86.1 percent at December 31, 2023, and 91.8 percent at March 31, 2023. The loan to deposit ratio was 84.1 percent, compared to 83.5 percent at December 31, 2023, and 92.1 percent at March 31, 2023.
Total borrowings were $4.9 billion, compared to $3.9 billion at December 31, 2023, and $9.9 billion at March 31, 2023.

Capital:

The return on average common stockholders' equity and the return on average tangible common stockholders' equity¹ were 10.01 percent and 16.30 percent, respectively, compared to 10.94 percent and 17.66 percent, respectively, in the first quarter of 2023.
The tangible equity¹ and tangible common equity¹ ratios were 7.54 percent and 7.15 percent, respectively, compared to 7.55 percent and 7.15 percent, respectively, at March 31, 2023. The common equity tier 1 ratio was 10.51 percent, compared to 10.42 percent at March 31, 2023.
Book value and tangible book value per common share¹ were $49.07 and $30.22, respectively, compared to $45.85 and $29.47, respectively, at March 31, 2023.

¹ See "Non-GAAP to GAAP Reconciliations" section beginning on page 18.

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. 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 Healthcare Financial Services, one of the country's largest providers of employee benefits and administration of medical insurance claim settlements solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $76 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 first quarter 2024 earnings announcement will be held today, Tuesday, April 23, 2024 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 April 23, 2024. To access the replay, dial 800-770-2030, or 609-800-9909 for international callers. The replay conference ID number is 8607257.

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, expense savings, 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 execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other mitigation efforts taken by government agencies in response to volatility in the banking industry, including due to the bank failures in 2023; volatility in Webster's stock price due to investor sentiment, including in light of the bank failures of 2023 and related 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; the impact of unrealized losses in our available-for-sale securities portfolio; 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 administration, 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, as well as the impact of the 2024 U.S. presidential election; the impact of a potential U.S. federal government shutdown; 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 information and technology systems; the effects of any cybersecurity 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 mix of loan geographies, sectors, or types and the level of nonperforming 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; 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 and environmental, social, governmental, and sustainability concerns that may arise from our business activities; Webster's ability to assess and monitor the effect of artificial intelligence on our business and operations; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; and the other factors that are described in Webster's Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster's actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster 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, return on average tangible common stockholders' equity, 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 additional clarity of factors and trends affecting its business and allows investors to view performance in a manner similar to management.

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 pre-tax net income, 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 an FDIC special assessment estimate, Ametros acquisition expenses, loss on sale of investment securities, and net gain on sale of mortgage servicing rights, each of which have been tax-effected, and a discrete tax adjustment.

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.

Refer the tables on page 18 for Non-GAAP to GAAP reconciliations.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
	At or for the Three Months Ended
(In thousands, except per share data)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023

Income and performance ratios:
Net income	$	216,323		$	185,393		$	226,475		$	234,968		$	221,004
Net income available to common stockholders		212,160			181,230			222,313			230,806			216,841
Earnings per diluted common share		1.23			1.05			1.28			1.32			1.24
Return on average assets (annualized)		1.15	%		1.01	%		1.23	%		1.23	%		1.22	%
Return on average tangible common stockholders' equity (annualized) ⁽¹⁾		16.30			14.49			17.51			18.12			17.66
Return on average common stockholders' equity (annualized)		10.01			9.03			11.00			11.38			10.94
Non-interest income as a percentage of total revenue		14.89			10.05			13.34			13.28			10.62

Asset quality:
Allowance for credit losses on loans and leases	$	641,442		$	635,737		$	635,438		$	628,911		$	613,914
Nonperforming assets		289,254			218,600			218,402			222,215			186,551
Allowance for credit losses on loans and leases / total loans and leases		1.26	%		1.25	%		1.27	%		1.22	%		1.21	%
Net charge-offs / average loans and leases (annualized)		0.29			0.27			0.23			0.16			0.20
Nonperforming loans and leases / total loans and leases		0.56			0.41			0.43			0.42			0.36
Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets		0.57			0.43			0.44			0.43			0.37
Allowance for credit losses on loans and leases / nonperforming loans and leases		226.17			303.39			295.48			287.35			331.81

Other ratios:
Tangible equity⁽¹⁾		7.54	%		8.12	%		7.62	%		7.62	%		7.55	%
Tangible common equity ⁽¹⁾		7.15			7.73			7.22			7.23			7.15
Tier 1 risk-based capital ⁽²⁾		11.01			11.62			11.64			11.16			10.93
Total risk-based capital ⁽²⁾		13.13			13.72			13.79			13.25			12.99
Common equity tier 1 risk-based capital ⁽²⁾		10.51			11.11			11.12			10.65			10.42
Stockholders' equity / total assets		11.49			11.60			11.21			11.18			11.08
Net interest margin		3.35			3.42			3.49			3.35			3.66
Efficiency ratio ⁽¹⁾		45.25			43.04			41.75			42.20			41.64

Equity and share related:
Common equity	$	8,463,519		$	8,406,017		$	7,915,222		$	7,995,747		$	8,010,315
Book value per common share		49.07			48.87			46.00			46.15			45.85
Tangible book value per common share⁽¹⁾		30.22			32.39			29.48			29.69			29.47
Common stock closing price		50.77			50.76			40.31			37.75			39.42
Dividends declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares issued and outstanding		172,464			172,022			172,056			173,261			174,712
Weighted-average common shares outstanding - Basic		170,445			170,415			171,210			172,739			172,766
Weighted-average common shares outstanding - Diluted		170,704			170,623			171,350			172,803			172,883

⁽¹⁾ See "Non-GAAP to GAAP Reconcilations" section beginning on page 18.
⁽²⁾ Presented as preliminary for March 31, 2024, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Assets:
Cash and due from banks	$	322,041		$	429,323		$	201,683
Interest-bearing deposits		1,223,187			1,286,472			2,232,388
Investment securities:
Available-for-sale		8,601,141			8,959,729			7,798,977
Held-to-maturity, net		7,679,891			7,074,588			7,063,223
Total investment securities, net		16,281,032			16,034,317			14,862,200
Loans held for sale		239,763			6,541			210,724
Loans and leases:
Commercial		19,469,014			19,772,102			20,775,337
Commercial real estate		21,869,502			21,157,732			20,513,738
Residential mortgages		8,226,154			8,227,923			8,001,563
Consumer		1,533,972			1,568,295			1,635,885
Total loans and leases		51,098,642			50,726,052			50,926,523
Allowance for credit losses on loans and leases		(641,442	)		(635,737	)		(613,914	)
Loans and leases, net		50,457,200			50,090,315			50,312,609
Federal Home Loan Bank and Federal Reserve Bank stock		381,451			326,882			584,724
Premises and equipment, net		423,128			429,561			431,432
Goodwill and other intangible assets, net		3,250,909			2,834,600			2,861,310
Cash surrender value of life insurance policies		1,237,828			1,247,938			1,233,994
Deferred tax assets, net		341,292			369,212			315,525
Accrued interest receivable and other assets		2,003,862			1,890,088			1,597,806
Total assets	$	76,161,693		$	74,945,249		$	74,844,395

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	10,212,509		$	10,732,516		$	12,007,387
Health savings accounts		8,603,184			8,287,889			8,272,507
Interest-bearing checking		9,498,036			8,994,095			8,560,750
Money market		18,615,031			17,662,826			14,203,858
Savings		6,881,663			6,642,499			7,723,198
Certificates of deposit		5,928,773			5,574,048			3,855,406
Brokered certificates of deposit		1,008,547			2,890,411			674,373
Total deposits		60,747,743			60,784,284			55,297,479
Securities sold under agreements to repurchase and other borrowings		361,886			458,387			306,154
Federal Home Loan Bank advances		3,659,930			2,360,018			8,560,461
Long-term debt		914,520			1,048,820			1,071,413
Accrued expenses and other liabilities		1,730,116			1,603,744			1,314,594
Total liabilities		67,414,195			66,255,253			66,550,101
Preferred stock		283,979			283,979			283,979
Common stockholders' equity		8,463,519			8,406,017			8,010,315
Total stockholders' equity		8,747,498			8,689,996			8,294,294
Total liabilities and stockholders' equity	$	76,161,693		$	74,945,249		$	74,844,395

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
	Three Months Ended March 31,
(In thousands, except per share data)	2024			2023
Interest income:
Interest and fees on loans and leases	$	792,045		$	716,356
Interest on investment securities		147,585			99,250
Loans held for sale		82			16
Other interest and dividends		12,138			15,306
Total interest income		951,850			830,928
Interest expense:
Deposits		335,971			150,204
Borrowings		48,140			85,441
Total interest expense		384,111			235,645
Net interest income		567,739			595,283
Provision for credit losses		45,500			46,749
Net interest income after provision for loan and lease losses		522,239			548,534
Non-interest income:
Deposit service fees		42,589			45,436
Loan and lease related fees		19,767			23,005
Wealth and investment services		7,924			6,587
Cash surrender value of life insurance policies		5,946			6,728
(Loss) on sale of investment securities		(9,826	)		(16,747	)
Other income		32,953			5,757
Total non-interest income		99,353			70,766
Non-interest expense:
Compensation and benefits		188,540			173,200
Occupancy		19,439			20,171
Technology and equipment		45,836			44,366
Marketing		4,281			3,476
Professional and outside services		12,981			32,434
Intangible assets amortization		9,194			9,497
Deposit insurance		24,223			12,323
Other expenses		31,429			37,000
Total non-interest expense		335,923			332,467
Income before income taxes		285,669			286,833
Income tax expense		69,346			65,829
Net income		216,323			221,004
Preferred stock dividends		(4,163	)		(4,163	)
Net income available to common stockholders	$	212,160		$	216,841

Weighted-average common shares outstanding - Diluted		170,704			172,883

Earnings per common share:
Basic	$	1.23		$	1.24
Diluted		1.23			1.24

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Interest income:
Interest and fees on loans and leases	$	792,045		$	789,423		$	793,626		$	771,973		$	716,356
Interest on investment securities		147,585			128,924			113,395			109,319			99,250
Loans held for sale		82			280			17			421			16
Other interest and dividends		12,138			14,520			23,751			51,683			15,306
Total interest income		951,850			933,147			930,789			933,396			830,928
Interest expense:
Deposits		335,971			325,793			293,955			251,466			150,204
Borrowings		48,140			36,333			49,698			98,101			85,441
Total interest expense		384,111			362,126			343,653			349,567			235,645
Net interest income		567,739			571,021			587,136			583,829			595,283
Provision for credit losses		45,500			36,000			36,500			31,498			46,749
Net interest income after provision for loan and lease losses		522,239			535,021			550,636			552,331			548,534
Non-interest income:
Deposit service fees		42,589			37,459			41,005			45,418			45,436
Loan and lease related fees		19,767			21,362			19,966			20,528			23,005
Wealth and investment services		7,924			7,767			7,254			7,391			6,587
Cash surrender value of life insurance policies		5,946			6,587			6,620			6,293			6,728
(Loss) on sale of investment securities		(9,826	)		(16,825	)		-			(48	)		(16,747	)
Other income		32,953			7,465			15,537			9,792			5,757
Total non-interest income		99,353			63,815			90,382			89,374			70,766
Non-interest expense:
Compensation and benefits		188,540			184,914			180,333			173,305			173,200
Occupancy		19,439			18,478			18,617			20,254			20,171
Technology and equipment		45,836			46,486			55,261			51,815			44,366
Marketing		4,281			5,176			4,810			5,160			3,476
Professional and outside services		12,981			18,804			26,874			29,385			32,434
Intangible assets amortization		9,194			8,618			8,899			9,193			9,497
Deposit insurance		24,223			58,725			13,310			13,723			12,323
Other expenses		31,429			36,020			54,474			41,254			37,000
Total non-interest expense		335,923			377,221			362,578			344,089			332,467
Income before income taxes		285,669			221,615			278,440			297,616			286,833
Income tax expense		69,346			36,222			51,965			62,648			65,829
Net income		216,323			185,393			226,475			234,968			221,004
Preferred stock dividends		(4,163	)		(4,163	)		(4,162	)		(4,162	)		(4,163	)
Net income available to common stockholders	$	212,160		$	181,230		$	222,313		$	230,806		$	216,841

Weighted-average common shares outstanding - Diluted		170,704			170,623			171,350			172,803			172,883

Earnings per common share:
Basic	$	1.23		$	1.05		$	1.29		$	1.32		$	1.24
Diluted		1.23			1.05			1.28			1.32			1.24

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Three Months Ended March 31,
	2024							2023
(Dollars in thousands)	Average balance		Interest			Yield/rate		Average balance		Interest			Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	50,938,418	$	801,864		6.24	%	$	50,095,192	$	725,543		5.80	%
Investment securities ⁽¹⁾		16,243,349		153,645		3.64			14,633,245		105,974		2.79
Federal Home Loan and Federal Reserve Bank stock		343,992		4,352		5.09			459,375		4,910		4.34
Interest-bearing deposits		572,401		7,786		5.38			898,884		10,396		4.63
Loans held for sale		13,418		82		2.45			4,630		16		1.39
Total interest-earning assets		68,111,578	$	967,729		5.59	%		66,091,326	$	846,839		5.08	%
Non-interest-earning assets		7,221,187							6,225,199
Total assets	$	75,332,765						$	72,316,525

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	10,582,416	$	-		-	%	$	12,629,928	$	-		-	%
Health savings accounts		8,605,640		3,191		0.15			8,292,450		3,027		0.15
Interest-bearing checking, money market and savings		34,055,685		249,650		2.95			29,853,370		123,048		1.67
Certificates of deposit and brokered deposits		7,321,625		83,130		4.57			4,024,472		24,129		2.43
Total deposits		60,565,366		335,971		2.23			54,800,220		150,204		1.11

Securities sold under agreements to repurchase and other borrowings		270,818		2,108		3.08			915,023		7,827		3.42
Federal Home Loan Bank advances		2,689,632		37,367		5.50			5,673,826		68,126		4.80
Long-term debt ⁽¹⁾		980,926		8,665		3.64			1,072,252		9,488		3.65
Total borrowings		3,941,376		48,140		4.88			7,661,101		85,441		4.48
Total interest-bearing liabilities		64,506,742	$	384,111		2.39	%		62,461,321	$	235,645		1.52	%
Non-interest-bearing liabilities		2,066,031							1,639,528
Total liabilities		66,572,773							64,100,849

Preferred stock		283,979							283,979
Common stockholders' equity		8,476,013							7,931,697
Total stockholders' equity		8,759,992							8,215,676
Total liabilities and stockholders' equity	$	75,332,765						$	72,316,525
Tax-equivalent net interest income				583,618							611,194
Less: Tax-equivalent adjustments				(15,879	)						(15,911	)
Net interest income			$	567,739						$	595,283
Net interest margin						3.35	%						3.66	%

⁽¹⁾ For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded.

WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(Dollars in thousands)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Loans and leases (actual):
Commercial non-mortgage	$	17,976,128		$	18,214,261		$	18,058,524		$	19,499,160		$	19,014,810
Asset-based lending		1,492,886			1,557,841			1,632,962			1,718,251			1,760,527
Commercial real estate		21,869,502			21,157,732			20,583,254			20,661,071			20,513,738
Residential mortgages		8,226,154			8,227,923			8,228,451			8,140,182			8,001,563
Consumer		1,533,972			1,568,295			1,584,955			1,607,384			1,635,885
Loans and leases		51,098,642			50,726,052			50,088,146			51,626,048			50,926,523
Allowance for credit losses on loans and leases		(641,442	)		(635,737	)		(635,438	)		(628,911	)		(613,914	)
Loans and leases, net	$	50,457,200		$	50,090,315		$	49,452,708		$	50,997,137		$	50,312,609

Loans and leases (average):
Commercial non-mortgage	$	18,235,402		$	18,181,417		$	18,839,776		$	19,220,435		$	18,670,917
Asset-based lending		1,523,616			1,588,350			1,663,481			1,756,051			1,790,992
Commercial real estate		21,403,765			20,764,834			20,614,334			20,518,355			19,970,326
Residential mortgages		8,225,151			8,240,390			8,200,938			8,067,349			7,995,327
Consumer		1,550,484			1,577,349			1,593,659			1,622,525			1,667,630
Loans and leases	$	50,938,418		$	50,352,340		$	50,912,188		$	51,184,715		$	50,095,192

WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited)
(Dollars in thousands)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Nonperforming loans and leases:
Commercial non-mortgage	$	203,626	$	134,617	$	121,067	$	109,279	$	86,537
Asset-based lending		34,915		35,090		10,350		9,450		9,450
Commercial real estate		14,323		11,314		31,004		47,972		35,832
Residential mortgages		8,407		5,591		27,312		26,751		25,096
Consumer		22,341		22,932		25,320		25,417		28,105
Total nonperforming loans and leases	$	283,612	$	209,544	$	215,053	$	218,869	$	185,020

Other real estate owned and repossessed assets:
Commercial non-mortgage	$	5,540	$	8,954	$	2,687	$	2,152	$	153
Residential mortgages		-		-		662		662		662
Consumer		102		102		-		532		716
Total other real estate owned and repossessed assets	$	5,642	$	9,056	$	3,349	$	3,346	$	1,531
Total nonperforming assets	$	289,254	$	218,600	$	218,402	$	222,215	$	186,551

Past due 30-89 days:
Commercial non-mortgage	$	15,365	$	7,071	$	38,875	$	32,074	$	9,645
Commercial real estate		72,999		9,002		3,491		1,970		17,115
Residential mortgages		17,580		21,047		16,208		10,583		10,710
Consumer		6,824		9,417		12,016		6,718		6,110
Total past due 30-89 days	$	112,768	$	46,537	$	70,590	$	51,345	$	43,580
Past due 90 days or more and accruing		12,460		52		138		29		602
Total past due loans and leases	$	125,228	$	46,589	$	70,728	$	51,374	$	44,182

WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
	For the Three Months Ended
(Dollars in thousands)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
ACL on loans and leases, beginning balance	$	635,737	$	635,438	$	628,911	$	613,914	$	594,741
Adoption of ASU No. 2022-02		-		-		-		-		5,873
Provision		43,194		34,300		35,839		35,249		37,821
Charge-offs:
Commercial portfolio		38,461		28,794		27,360		21,945		26,410
Consumer portfolio		1,330		6,878		3,642		1,085		1,098
Total charge-offs		39,791		35,672		31,002		23,030		27,508
Recoveries:
Commercial portfolio		553		396		292		1,024		1,574
Consumer portfolio		1,749		1,275		1,398		1,754		1,413
Total recoveries		2,302		1,671		1,690		2,778		2,987
Total net charge-offs		37,489		34,001		29,312		20,252		24,521
ACL on loans and leases, ending balance	$	641,442	$	635,737	$	635,438	$	628,911	$	613,914
ACL on unfunded loan commitments, ending balance		24,495		24,734		23,040		22,366		26,051
Total ACL, ending balance	$	665,937	$	660,471	$	658,478	$	651,277	$	639,965

WEBSTER FINANCIAL CORPORATION Non-GAAP to GAAP Reconciliations

	At or for the Three Months Ended
(In thousands, except per share data)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Efficiency ratio:
Non-interest expense	$	335,923		$	377,221		$	362,578		$	344,089		$	332,467
Less: Foreclosed property activity		(330	)		(96	)		(492	)		(432	)		(262	)
Intangible assets amortization		9,194			8,618			8,899			9,193			9,497
Operating lease depreciation		663			900			1,146			1,639			1,884
FDIC special assessment estimate		11,862			47,164			-			-			-
Merger related expenses ⁽¹⁾		3,139			30,679			61,625			40,840			29,373
Non-interest expense	$	311,395		$	289,956		$	291,400		$	292,849		$	291,975
Net interest income	$	567,739		$	571,021		$	587,136		$	583,829		$	595,283
Add: Tax-equivalent adjustment		15,879			17,830			17,906			17,292			15,911
Non-interest income		99,353			63,815			90,382			89,374			70,766
Other income ⁽²⁾		7,626			5,099			3,614			5,035			4,311
Less: Operating lease depreciation		663			900			1,146			1,639			1,884
(Loss) on sale of investment securities		(9,826	)		(16,825	)		-			(48	)		(16,747	)
Net gain on sale of mortgage servicing rights		11,655			-			-			-			-
Income	$	688,105		$	673,690		$	697,892		$	693,939		$	701,134
Efficiency ratio		45.25	%		43.04	%		41.75	%		42.20	%		41.64	%

ROATCE:
Net income	$	216,323		$	185,393		$	226,475		$	234,968		$	221,004
Less: Preferred stock dividends		4,163			4,163			4,162			4,162			4,163
Add: Intangible assets amortization, tax-effected		7,263			6,808			7,030			7,262			7,503
Adjusted income	$	219,423		$	188,038		$	229,343		$	238,068		$	224,344
Adjusted income, annualized basis	$	877,692		$	752,152		$	917,372		$	952,272		$	897,376
Average stockholders' equity	$	8,759,992		$	8,312,798		$	8,370,469		$	8,395,298		$	8,215,676
Less: Average preferred stock		283,979			283,979			283,979			283,979			283,979
Average goodwill and other intangible assets, net		3,090,751			2,838,770			2,847,560			2,856,581			2,849,673
Average tangible common stockholders' equity	$	5,385,262		$	5,190,049		$	5,238,930		$	5,254,738		$	5,082,024
Return on average tangible common stockholders' equity		16.30	%		14.49	%		17.51	%		18.12	%		17.66	%

⁽¹⁾Merger related expenses include Ametros acquisition expenses for the three months ended March 31, 2024. 2023 periods primarily include charges related to the merger with Sterling.
⁽²⁾Other income includes the taxable equivalent of net income generated from low income housing tax-credit investments.

	At or for the Three Months Ended
(In thousands, except per share data)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Tangible equity:
Stockholders' equity	$	8,747,498		$	8,689,996		$	8,199,201		$	8,279,726		$	8,294,294
Less: Goodwill and other intangible assets, net		3,250,909			2,834,600			2,843,217			2,852,117			2,861,310
Tangible stockholders' equity	$	5,496,589		$	5,855,396		$	5,355,984		$	5,427,609		$	5,432,984
Total assets	$	76,161,693		$	74,945,249		$	73,130,851		$	74,038,243		$	74,844,395
Less: Goodwill and other intangible assets, net		3,250,909			2,834,600			2,843,217			2,852,117			2,861,310
Tangible assets	$	72,910,784		$	72,110,649		$	70,287,634		$	71,186,126		$	71,983,085
Tangible equity		7.54	%		8.12	%		7.62	%		7.62	%		7.55	%

Tangible common equity:
Tangible stockholders' equity	$	5,496,589		$	5,855,396		$	5,355,984		$	5,427,609		$	5,432,984
Less: Preferred stock		283,979			283,979			283,979			283,979			283,979
Tangible common stockholders' equity	$	5,212,610		$	5,571,417		$	5,072,005		$	5,143,630		$	5,149,005
Tangible assets	$	72,910,784		$	72,110,649		$	70,287,634		$	71,186,126		$	71,983,085
Tangible common equity		7.15	%		7.73	%		7.22	%		7.23	%		7.15	%

Tangible book value per common share:
Tangible common stockholders' equity	$	5,212,610		$	5,571,417		$	5,072,005		$	5,143,630		$	5,149,005
Common shares outstanding		172,464			172,022			172,056			173,261			174,712
Tangible book value per common share	$	30.22		$	32.39		$	29.48		$	29.69		$	29.47

Core deposits:
Total deposits	$	60,747,743		$	60,784,284		$	60,331,767		$	58,747,532		$	55,297,479
Less: Certificates of deposit		5,928,773			5,574,048			5,150,139			4,743,204			3,855,406
Brokered certificates of deposit		1,008,547			2,890,411			2,337,380			2,542,854			674,373
Core deposits	$	53,810,423		$	52,319,825		$	52,844,248		$	51,461,474		$	50,767,700

	Three months ended March 31, 2024
Adjusted ROATCE:
Net income	$	216,323
Less: Preferred stock dividends		4,163
Add: Intangible assets amortization, tax-effected		7,263
FDIC special assessment estimate, tax-effected		8,917
Ametros acquisition expenses, tax-effected		2,360
Loss on sale of investment securities, tax-effected		7,386
Net (gain) on sale of mortgage servicing rights, tax-effected		(8,761	)
Discrete tax adjustment		10,929
Adjusted income	$	240,254
Adjusted income, annualized basis	$	961,016
Average stockholders' equity	$	8,759,992
Less: Average preferred stock		283,979
Average goodwill and other intangible assets, net		3,090,751
Average tangible common stockholders' equity	$	5,385,262
Adjusted return on average tangible common stockholders' equity		17.85	%

Adjusted ROAA:
Net income	$	216,323
Add: FDIC special assessment estimate, tax-effected		8,917
Ametros acquisition expenses, tax-effected		2,360
Loss on sale of investment securities, tax-effected		7,386
Net (gain) on sale of mortgage servicing rights, tax-effected		(8,761	)
Discrete tax adjustment		10,929
Adjusted income	$	237,154

Webster Reports First Quarter 2024 EPS of $1.23; Adjusted EPS of $1.35