Webster Financial Corp. Q2 2024 10-Q Filing

TL;DR

Webster Financial Corp. 10-Q filed: Q2 2024 financials out, equity details updated.

AI Summary

Webster Financial Corp. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its common stock, preferred stock (Series F and G), and other equity components as of March 31, 2024, and June 30, 2024. Key financial periods covered include Q2 2024 and the first six months of 2024.

Why It Matters

This filing provides investors and analysts with a detailed look at Webster Financial Corp.'s financial health and operational performance during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Latest financial data available)
• 2024-01-01 — Reporting Period Start Date (Beginning of financial data for the period)
• 2023-12-31 — Previous Year End Date (For comparative analysis)

Key Players & Entities

• WEBSTER FINANCIAL CORP (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filed as of Date
• 0000801337 (company) — Central Index Key
• 203-578-2202 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share WBS New York Stock Exchange
• $11.5 m — Quarter Net interest income decreased $11.5 million, or 2.0%, from $583.8 million for
• $583.8 million — decreased $11.5 million, or 2.0%, from $583.8 million for the three months ended June 30, 202
• $572.3 million — he three months ended June 30, 2023, to $572.3 million for the three months ended June 30, 202
• $14.5 million — TE basis, net interest income decreased $14.5 million. Net interest margin decreased 3 basis
• $1.2 b — total interest-earning assets decreased $1.2 billion, or 1.8%, from $70.1 billion for
• $70.1 billion — s decreased $1.2 billion, or 1.8%, from $70.1 billion for the three months ended June 30, 202
• $68.9 billion — he three months ended June 30, 2023, to $68.9 billion for the three months ended June 30, 202
• $3.0 billion — 30, 2024, primarily due to decreases of $3.0 billion in average interest-bearing deposits he
• $0.2 billion — st-bearing deposits held at the FRB and $0.2 billion in average FHLB and FRB stock, partiall
• $1.6 billion — stock, partially offset by increases of $1.6 billion in average total investment securities,
• $0.3 billion — in average total investment securities, $0.3 billion in average loans and leases, and $0.1 b
• $0.1 billion — illion in average loans and leases, and $0.1 billion in average loans held for sale. The ave
• $3.0 b — ring deposits held at the FRB decreased $3.0 billion, or 86.3%, from $3.5 billion for
• $3.5 billion — decreased $3.0 billion, or 86.3%, from $3.5 billion for the three months ended June 30, 202

Filing Documents

• wbs-20240630.htm (10-Q) — 4880KB
• exhibit3112q24.htm (EX-31.1) — 9KB
• exhibit3122q24.htm (EX-31.2) — 9KB
• exhibit3212q24.htm (EX-32.1) — 6KB
• exhibit3222q24.htm (EX-32.2) — 6KB
• 0000801337-24-000024.txt ( ) — 22881KB
• wbs-20240630.xsd (EX-101.SCH) — 76KB
• wbs-20240630_cal.xml (EX-101.CAL) — 126KB
• wbs-20240630_def.xml (EX-101.DEF) — 735KB
• wbs-20240630_lab.xml (EX-101.LAB) — 1134KB
• wbs-20240630_pre.xml (EX-101.PRE) — 940KB
• wbs-20240630_htm.xml (XML) — 5462KB

Forward-Looking Statements iii

Forward-Looking Statements iii

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 33

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 80

Controls and Procedures

Item 4. Controls and Procedures 80

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 81

Risk Factors

Item 1A. Risk Factors 81

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 81

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 81

Other Information

Item 5. Other Information 81

Exhibits

Item 6. Exhibits 82 EXHIBIT INDEX 82

SIGNATURES

SIGNATURES 83 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 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 SEC United States Securities and Ex

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 and turmoil in the banking industry; local, regional, national, and inter

– 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, At or for the six months ended June 30, (In thousands, except per share and ratio data) 2024 2023 2024 2023 Income and performance ratios: Net income $ 181,633 $ 234,968 $ 397,956 $ 455,972 Net income available to common stockholders

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View this 10-Q filing on SEC EDGAR