Webster Financial Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Webster Financial Corp. filed its Q1 2024 10-Q, detailing financial positions as of March 31, 2024.</b>

AI Summary

WEBSTER FINANCIAL CORP (WBS-PG) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Webster Financial Corp. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. Key financial statement elements such as common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income are detailed for the current and prior periods. The report includes data for the fiscal year ending December 31, 2023, and the first quarter of 2024. The company's principal business is National Commercial Banks, SIC code 6021.

Why It Matters

For investors and stakeholders tracking WEBSTER FINANCIAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of Webster Financial Corp., crucial for assessing the bank's health and strategic direction. The detailed breakdown of equity accounts and comparative data against prior periods allows for trend analysis and evaluation of financial stability.

Risk Assessment

Risk Level: low — WEBSTER FINANCIAL CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Monitor future filings for trends in equity accounts and compare performance against industry benchmarks to assess growth and profitability.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-05-10 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2023-12-31 — Prior Year End Date (Fiscal year end for comparative data)

Key Players & Entities

• WEBSTER FINANCIAL CORP (company) — Filer name
• 200 ELM STREET (address) — Business and mailing address
• STAMFORD (location) — City for business and mailing address
• CT (location) — State for business and mailing address
• 06902 (postal_code) — ZIP code for business and mailing address
• 203-578-2202 (phone_number) — Business phone number
• 0000801337 (cik) — Central Index Key
• 6021 (sic_code) — Standard Industrial Classification code

FAQ

Industry Context

Webster Financial Corp. operates within the National Commercial Banks industry, a sector characterized by lending, deposit-taking, and financial services.

Regulatory Implications

As a commercial bank, Webster Financial Corp. is subject to regulations from various financial authorities, including the SEC, Federal Reserve, and state banking departments.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management's discussion and analysis.
2. Compare key financial metrics with previous quarters and the same quarter last year.
3. Analyze any disclosures regarding capital adequacy, loan portfolios, and interest rate sensitivity.

Key Dates

• 2024-03-31: Quarterly Period End — End date for the reported financial data in the 10-Q.
• 2024-05-10: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the first 10-Q for the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share WBS New York Stock Exchange
• $27.6 m — assets. Net interest income decreased $27.6 million, or 4.6%, from $595.3 million for
• $595.3 million — decreased $27.6 million, or 4.6%, from $595.3 million for the three months ended March 31, 20
• $567.7 million — e three months ended March 31, 2023, to $567.7 million for the three months ended March 31, 20
• $27.6 million — sis, net interest income also decreased $27.6 million. Net interest margin decreased 31 basis
• $2.0 b — total interest-earning assets increased $2.0 billion, or 3.1%, from $66.1 billion for
• $66.1 billion — s increased $2.0 billion, or 3.1%, from $66.1 billion for the three months ended March 31, 20
• $68.1 billion — e three months ended March 31, 2023, to $68.1 billion for the three months ended March 31, 20
• $1.6 billion — 31, 2024, primarily due to increases of $1.6 billion and $0.8 billion in average total inves
• $0.8 billion — ly due to increases of $1.6 billion and $0.8 billion in average total investment securities
• $0.3 billion — ively, partially offset by decreases of $0.3 billion and $0.1 billion in average interest-be
• $0.1 billion — offset by decreases of $0.3 billion and $0.1 billion in average interest-bearing deposits he
• $1.6 b — e total investment securities increased $1.6 billion, or 11.0%, from $14.6 billion for
• $14.6 billion — increased $1.6 billion, or 11.0%, from $14.6 billion for the three months ended March 31, 20
• $16.2 billion — e three months ended March 31, 2023, to $16.2 billion for the three months ended March 31, 20

Filing Documents

• wbs-20240331.htm (10-Q) — 4062KB
• exhibit3111q24.htm (EX-31.1) — 9KB
• exhibit3121q24.htm (EX-31.2) — 9KB
• exhibit3211q24.htm (EX-32.1) — 6KB
• exhibit3221q24.htm (EX-32.2) — 6KB
• 0000801337-24-000014.txt (&nbsp;) — 21221KB
• wbs-20240331.xsd (EX-101.SCH) — 89KB
• wbs-20240331_cal.xml (EX-101.CAL) — 131KB
• wbs-20240331_def.xml (EX-101.DEF) — 859KB
• wbs-20240331_lab.xml (EX-101.LAB) — 1250KB
• wbs-20240331_pre.xml (EX-101.PRE) — 1069KB
• wbs-20240331_htm.xml (XML) — 4723KB

Forward-Looking Statements iii

Forward-Looking Statements iii

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 1

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 74

Controls and Procedures

Item 4. Controls and Procedures 74

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 75

Risk Factors

Item 1A. Risk Factors 75

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 75

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 75

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76 EXHIBIT INDEX 76

SIGNATURES

SIGNATURES 77 i KEY TO ACRONYMS AND TERMS ACL Allowance for credit losses Agency CMBS Agency commercial mortgage-backed securities Agency CMO Agency collateralized mortgage obligations Agency MBS Agency mortgage-backed securities ALCO Asset/Liability Committee Ametros Ametros Financial Corporation AOCI (AOCL) Accumulated other comprehensive income (loss), net of tax ASC Accounting Standards Codification ASU or the Update Accounting Standards Update Basel III Capital Rules Capital rules under a global regulatory framework developed by the Basel Committee on Banking Supervision BHC Act Bank Holding Company Act of 1956, as amended CECL Current expected credit losses CET1 Common Equity Tier 1 Capital, defined by Basel III capital rules CET1 Risk-Based Capital Ratio of CET1 capital to total risk-weighted assets, defined by the Basel III Capital Rules CFPB Consumer Financial Protection Bureau CLO Collateralized loan obligations CMBS Non-agency commercial mortgage-backed securities COVID-19 Coronavirus CRA Community Reinvestment Act of 1977 DTA Deferred tax asset EAD Exposure at default FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank FICO Fair Isaac Corporation FRB Federal Reserve Bank FTE Fully tax-equivalent FTP Funds Transfer Pricing, a matched maturity funding concept GAAP U.S. Generally Accepted Accounting Principles Holding Company Webster Financial Corporation HSA Health savings account HSA Bank HSA Bank, a division of Webster Bank, National Association interLINK Interlink Insured Sweep LLC LGD Loss given default LIHTC Low-income housing tax credit MBS Non-agency mortgage-backed securities NAV Net asset value OCC Office of the Comptroller of the Currency OREO Other real estate owned PD Probability of default PPNR Pre-tax, pre-provision net revenue PTNR Pre-tax, net revenue ROU Right-of-use S&P Standard and Poor's Rating Services

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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; Forward-looking statements are based on the Company'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. The Company'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 our actual results to differ from those discussed in any forward-looking statements include, but are not limited to: our ability to successfully execute our 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 th

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Webster Financial Corporation is a bank holding company and financial holding company under the BHC Act, incorporated under the laws of Delaware in 1986, and headquartered in Stamford, CT. Webster Bank 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, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the northeastern U.S. from New York to Massachusetts, certain businesses operate in extended geographies. The following discussion and analysis provides information that management believes is necessary to understand the Company's financial condition, results of operations, and cash flows for the three months ended March 31, 2024, as compared to 2023. This information should be read in conjunction with the Condensed Consolidated Financial Statements, and accompanying Notes thereto, contained in Part I - Item 1. Financial Statements of this report, and the Consolidated Financial Statements, and accompanying Notes thereto, contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The Company's financial condition, results of operations, and cash flows for the three months ended March 31, 2024, are not necessarily indicative of future results that may be attained for the entire year or other interim periods. Results of Operations The following table summarizes selected financial highlights and key performance indicators: At or for the three months ended March 31, (In thousands, except per share and ratio data) 2024 2023 Income and performance ratios: Net income $ 216,323 $ 221,004 Net income available to common stockholders 212,160 216,841 Earnings per diluted common share 1.23 1.24 Return on average ass

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View this 10-Q filing on SEC EDGAR