Webster Reports Second Quarter 2026 EPS of $1.56; Adjusted EPS of $1.60

STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $249.4 million, or $1.56 per diluted share, for the quarter ended June 30, 2026, compared to $251.7 million, or $1.52 per diluted share, for the quarter ended June 30, 2025.

Second quarter 2026 results include Transaction expenses. Excluding this item, adjusted earnings per diluted share would have been $1.60¹ for the quarter ended June 30, 2026.

On February 3, 2026, Webster entered into a transaction agreement with Banco Santander, S.A. (“Banco Santander”), under which Banco Santander will acquire Webster in a cash and stock transaction (the “Transaction”).

The Transaction was approved by Webster’s stockholders on May 26, 2026, the Office of the Comptroller of the Currency on June 12, 2026 and the European Central Bank on July 21, 2026. The Transaction remains subject to customary closing conditions, including the approval of the Board of Governors of the Federal Reserve System. The Transaction is expected to close in the second half of 2026.

Under the terms of the transaction agreement, Webster’s common stockholders will receive $48.75 in cash and 2.0548 Banco Santander ordinary shares, which will be delivered in the form of American Depository Receipts, for each Webster share. In light of the proposed Transaction with Banco Santander, Webster will no longer provide a forward-looking financial outlook.

“Webster continued to generate impressive financial results this quarter,” said John R. Ciulla, Chairman and Chief Executive Officer. “Our execution is commendable, in that our colleagues continue to deliver for our clients while they also prepare to integrate our proposed Transaction with Banco Santander.”

Highlights for the second quarter of 2026:

• Revenue² of $740.0 million
• Loans and leases balance of $57.9 billion, up $0.6 billion, or 1.1 percent from prior quarter
• Deposits balance of $70.3 billion, up $1.2 billion, or 1.8 percent, from prior quarter
• Provision for credit losses of $31.5 million
• Return on average assets of 1.19 percent
• Return on average tangible common stockholders’ equity of 16.67 percent¹
• Net interest margin of 3.26 percent
• Common equity tier 1 ratio of 11.69 percent³
• Efficiency ratio of 47.74 percent¹
• Tangible common equity ratio of 7.60 percent¹

“Our returns and growth affirm the quality of Webster’s banking franchise,” said Neal Holland, Senior Executive Vice President and Chief Financial Officer. “Our operating position has only grown stronger, as capital levels increased, loans grew in categories with appealing risk characteristics, and non-performing assets declined significantly.”

^1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 12.

^2 Total revenue reflects the sum of Net interest income and Non-interest income.

^3 Presented as preliminary for June 30, 2026.

Consolidated financial performance compared to the second quarter of 2025:

Net interest income:

• Net interest income was $632.7 million, compared to $621.2 million.
• Net interest margin was 3.26 percent, compared to 3.44 percent.
• Average interest-earning assets totaled $79.8 billion, an increase of $5.8 billion, or 7.9 percent. The average yield on interest-earning assets decreased by 32 basis points.
• Average deposits and interest-bearing liabilities totaled $75.3 billion, an increase of $5.7 billion, or 8.1 percent. The average cost of deposits and interest-bearing liabilities decreased by 16 basis points.

Provision for credit losses:

• The provision for credit losses was $31.5 million, compared to $46.5 million.
• Net charge-offs were $42.7 million, compared to $36.4 million. The ratio of net charge-offs to average loans and leases was 0.30 percent, compared to 0.27 percent.
• The allowance for credit losses on loans and leases represented 1.25 percent of total loans and leases, compared to 1.35 percent.
• The allowance for credit losses on loans and leases represented 169 percent of non-performing loans and leases, compared to 135 percent.

Non-interest income:

• Total non-interest income was $107.2 million, compared to $94.7 million. The $12.5 million increase was primarily driven by other miscellaneous income and higher loan and lease related fees.

Non-interest expense:

• Total non-interest expense was $385.0 million, compared to $345.7 million. The $39.3 million increase was primarily driven by higher compensation and benefit costs and $8.7 million of Transaction expenses incurred during the quarter ended June 30, 2026.

Income taxes:

• Income tax expense was $66.7 million, compared to $64.8 million, and the effective tax rate was 20.6 percent, compared to 20.0 percent. Both the higher income tax expense and the effective tax rate for the quarter ended June 30, 2026, primarily reflected the recognition of $1.2 million of net discrete tax benefits in the current period, compared to $3.9 million a year ago.

Investment securities:

• Investment securities totaled $18.3 billion, an increase of $0.5 billion, or 2.7 percent. The carrying value at June 30, 2026, included $0.6 billion of net unrealized losses on the available-for-sale securities portfolio and excluded $0.9 billion of net unrealized losses on the held-to-maturity securities portfolio.

Loans and leases:

• Loans and leases totaled $57.9 billion, an increase of $4.2 billion, or 7.8 percent. Commercial loans and leases increased by $2.4 billion, commercial real estate loans increased by $1.4 billion, residential mortgages increased by $0.3 billion, and consumer loans increased by $0.1 billion.
• Loan originations for the portfolio were $3.5 billion, compared to $3.8 billion.

Asset quality:

• Non-performing loans and leases were $429.0 million, a decrease of $105.5 million, or 19.7 percent. The decrease was primarily driven by commercial non-mortgage and commercial real estate. The ratio of non-performing loans and leases to total loans and leases was 0.74 percent, compared to 1.00 percent.
• Past due loans and leases were $117.3 million, an increase of $62.6 million, or 114.3 percent. The increase was primarily driven by commercial real estate.

Deposits and borrowings:

• Deposits totaled $70.3 billion, an increase of $4.0 billion, or 6.0 percent. The increase was primarily driven by interest-bearing checking and money market. The ratio of core deposits to total deposits¹ remained flat at 88.1 percent. The loan to deposit ratio was 82.3 percent, compared to 80.9 percent.
• Borrowings totaled $4.5 billion, a decrease of $0.1 billion, or 3.2 percent.

Capital:

• The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity¹ were 10.73 percent and 16.67 percent, respectively, compared to 11.31 percent and 17.96 percent, respectively.
• The tangible equity¹ and tangible common equity¹ ratios were 7.94 percent and 7.60 percent, respectively, compared to 7.82 percent and 7.46 percent, respectively.
• The common equity tier 1 ratio² was 11.69 percent, compared to 11.35 percent.
• Book value per common share and tangible book value per common share¹ were $58.49 and $38.81, respectively, compared to $54.19 and $35.13, respectively.

^1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 12.

^2 Presented as preliminary for June 30, 2026, and actual for the remaining periods.

Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Headquartered in Stamford, CT, Webster is a values-driven organization with approximately $86 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate 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.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, the Private Securities Litigation Reform Act of 1995. Factors that could cause Webster’s actual results to differ from those described in the forward-looking statements are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and in Webster’s subsequent filings with the U.S. Securities and Exchange Commission. 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, including the efficiency ratio, the return on average tangible common stockholders’ equity, the tangible equity ratio, the tangible common equity ratio, tangible book value per common share, core deposits, adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted earnings per share (“EPS”). A reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure is included in the accompanying selected financial highlights table.

Webster believes that certain non-GAAP financial measures provide investors with information useful in understanding its financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by Webster for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. Webster believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting its business and allows investors to view its performance in a manner similar to management.

The efficiency ratio represents the costs expended to generate a dollar of revenue and is calculated excluding certain non-operational items and certain non-recurring transactions or events. The return on average tangible common stockholders’ equity is calculated using net income less preferred stock dividends, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and other intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and other intangible assets (“tangible stockholders’ equity”) divided by total assets less goodwill and other intangible assets (“tangible assets”). The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and other intangible assets (“tangible common stockholders’ equity”) divided by tangible assets. Tangible book value per common share represents tangible common stockholders’ equity divided by the number of common shares outstanding at the end of the reporting period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. The adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted EPS are calculated excluding certain non-recurring transactions or events, which have been tax-effected, as applicable.

These non-GAAP financial measures should not be considered a substitute for GAAP-basis financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these with other companies that present financial measures having the same or similar names. Webster strongly encourages investors to review its consolidated financial statements in their entirety and to not rely on any single financial measure. Refer the tables beginning on page 12 for Non-GAAP to GAAP reconciliations.

NO OFFER OR SOLICITATION

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). By making this communication available, no advice or recommendation is being given to buy, sell or otherwise deal in any securities or investments whatsoever.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights
		Three Months Ended
(In thousands, except per share and ratio data)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Income and performance ratios:
Net income	$	256,789		$	246,231		$	255,820		$	261,217		$	258,848
Net income applicable to common stockholders		249,442			239,274			248,701			254,051			251,695
Earnings per common share - diluted		1.56			1.50			1.55			1.54			1.52
Return on average assets (annualized)		1.19	%		1.16	%		1.23	%		1.27	%		1.29	%
Return on average tangible common stockholders' equity (annualized)^(1)		16.67			16.18			17.10			17.64			17.96
Return on average common stockholders’ equity (annualized)		10.73			10.35			10.91			11.23			11.31
Non-interest income as a percentage of total revenue ^(2)		14.49			13.79			15.19			13.77			13.22
Asset quality:
Allowance for credit losses on loans and leases	$	723,846		$	733,434		$	719,411		$	727,897		$	722,046
Non-performing assets		430,174			524,418			502,156			545,327			537,050
Allowance for credit losses on loans and leases / total loans and leases		1.25	%		1.28	%		1.27	%		1.32	%		1.35	%
Net charge-offs / average loans and leases (annualized)		0.30			0.29			0.35			0.28			0.27
Non-performing loans and leases / total loans and leases		0.74			0.91			0.88			0.99			1.00
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets		0.74			0.92			0.89			0.99			1.00
Allowance for credit losses on loans and leases / non-performing loans and leases		168.72			140.36			143.69			133.82			135.08
Other ratios:
Tangible equity^(1)		7.94	%		7.74	%		7.77	%		7.86	%		7.82	%
Tangible common equity ^(1)		7.60			7.39			7.42			7.50			7.46
Tier 1 Risk-Based Capital ^(3)		12.17			11.91			11.69			11.89			11.86
Total Risk-Based Capital ^(3)		14.13			13.89			13.67			14.68			14.05
Common equity tier 1 Risk-Based Capital ^(3)		11.69			11.42			11.20			11.39			11.35
Stockholders’ equity / total assets		11.36			11.19			11.29			11.37			11.40
Net interest margin		3.26			3.36			3.35			3.40			3.44
Efficiency ratio ^(1)		47.74			46.83			46.95			45.79			45.40
Equity and share related:
Common stockholders' equity	$	9,476,770		$	9,289,670		$	9,208,257		$	9,178,698		$	9,053,638
Book value per common share		58.49			57.33			57.12			55.69			54.19
Tangible book value per common share^(1)		38.81			37.59			37.20			36.42			35.13
Common stock closing price		76.42			69.42			62.94			59.44			54.60
Dividends and equivalents declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares outstanding		162,034			162,049			161,216			164,817			167,083
Weighted-average common shares outstanding - basic		159,989			159,534			160,261			164,138			165,884
Weighted-average common shares - diluted		160,183			159,850			160,597			164,456			166,131
^(1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 12.
^(2) Total revenue reflects the sum of Net interest income and Non-interest income.
^(3) Presented as preliminary for June 30, 2026, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Balance Sheets
(In thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Assets:
Cash and due from banks	$	375,357	$	353,234	$	370,748	$	498,801	$	425,349
Interest-bearing deposits		2,347,070		2,506,930		2,078,777		2,563,680		2,568,570
Investment securities:
Available-for-sale		10,600,328		10,581,263		10,009,500		9,932,344		9,620,354
Held-to-maturity, net		7,694,979		7,838,979		7,969,575		8,077,505		8,192,720
Total investment securities, net		18,295,307		18,420,242		17,979,075		18,009,849		17,813,074
Loans held for sale		13,189		14,478		14,886		75,386		278,409
Loans and leases:
Commercial		23,738,961		23,288,371		22,895,350		21,912,809		21,293,103
Commercial real estate		22,793,088		22,569,080		22,334,846		21,911,298		21,358,775
Residential mortgages		9,600,445		9,600,026		9,599,577		9,509,142		9,332,413
Consumer		1,736,184		1,791,065		1,767,337		1,718,832		1,687,668
Total loans and leases		57,868,678		57,248,542		56,597,110		55,052,081		53,671,959
Allowance for credit losses on loans and leases		(723,846)		(733,434)		(719,411)		(727,897)		(722,046)
Total loans and leases, net		57,144,832		56,515,108		55,877,699		54,324,184		52,949,913
Federal Home Loan Bank and Federal Reserve Bank stock		388,374		431,395		356,411		340,231		370,272
Deferred tax assets, net		225,133		186,604		195,740		220,972		252,442
Premises and equipment, net		429,266		428,182		432,035		427,215		422,774
Goodwill and other intangible assets, net		3,188,976		3,197,981		3,210,756		3,175,747		3,184,039
Cash surrender value of life insurance policies		1,300,458		1,292,770		1,271,457		1,266,491		1,262,311
Accrued interest receivable and other assets		2,240,677		2,237,664		2,286,079		2,290,096		2,387,117
Total assets	$	85,948,639	$	85,584,588	$	84,073,663	$	83,192,652	$	81,914,270
Liabilities and Stockholders' Equity:
Deposits:
Demand	$	9,999,855	$	9,847,077	$	10,082,854	$	10,491,975	$	10,345,761
Interest-bearing checking		12,415,546		11,932,682		10,760,496		10,723,584		9,933,392
Health savings accounts		9,252,869		9,446,895		9,184,452		9,135,425		9,064,935
Money market		23,549,222		24,332,087		23,196,747		23,188,134		21,679,493
Savings		6,703,712		6,841,135		6,964,946		7,060,713		7,370,959
Certificates of deposit		6,165,975		5,848,150		6,078,549		6,202,906		6,069,447
Brokered certificates of deposit		2,196,274		791,690		2,491,769		1,372,907		1,850,438
Total deposits		70,283,453		69,039,716		68,759,813		68,175,644		66,314,425
Securities sold under agreements to repurchase		73,395		69,756		596,738		101,717		372,806
Federal Home Loan Bank advances		3,661,246		4,810,619		2,980,718		2,560,817		3,339,914
Long-term debt		737,171		738,312		739,454		1,249,612		905,634
Accrued expenses and other liabilities		1,432,625		1,352,536		1,504,704		1,642,185		1,643,874
Total liabilities		76,187,890		76,010,939		74,581,427		73,729,975		72,576,653
Preferred stock		283,979		283,979		283,979		283,979		283,979
Common stockholders' equity		9,476,770		9,289,670		9,208,257		9,178,698		9,053,638
Total stockholders’ equity		9,760,749		9,573,649		9,492,236		9,462,677		9,337,617
Total liabilities and stockholders' equity	$	85,948,639	$	85,584,588	$	84,073,663	$	83,192,652	$	81,914,270

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income
		Three Months Ended
(In thousands, except per share data)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Interest Income:
Interest and fees on loans and leases	$	784,854	$	776,610	$	793,570	$	794,668	$	775,203
Interest on investment securities		195,352		193,100		200,024		201,321		197,766
Loans held for sale		2		18		205		3,988		7
Other interest and dividends		33,168		24,551		25,333		28,325		27,611
Total interest income		1,013,376		994,279		1,019,132		1,028,302		1,000,587
Interest Expense:
Deposits		326,869		316,624		344,078		355,504		339,738
Borrowings		53,763		43,252		42,201		41,131		39,667
Total interest expense		380,632		359,876		386,279		396,635		379,405
Net interest income		632,744		634,403		632,853		631,667		621,182
Provision for credit losses		31,500		54,000		42,000		44,000		46,500
Net interest income after provision for credit losses		601,244		580,403		590,853		587,667		574,682
Non-interest Income:
Deposit service fees		42,256		41,515		38,486		39,576		40,934
Loan and lease related fees		20,570		15,414		19,010		16,404		17,657
Wealth and investment services		7,526		7,209		7,775		7,640		7,779
Cash surrender value of life insurance policies		11,249		8,644		8,520		7,535		9,172
Other income		25,646		28,681		39,559		29,751		19,115
Total non-interest income		107,247		101,463		113,350		100,906		94,657
Non-interest Expense:
Compensation and benefits		224,314		222,906		214,137		209,036		199,930
Occupancy		19,749		19,486		19,359		19,003		19,337
Technology and equipment		50,504		49,631		49,443		47,520		45,932
Intangible assets amortization		9,005		9,186		9,008		8,966		9,093
Marketing		5,203		4,699		6,827		4,953		5,171
Professional and outside services		21,146		22,542		21,767		17,815		18,394
Deposit insurance		18,185		16,300		3,979		15,621		15,061
Other expense		36,856		34,359		58,717		33,755		32,796
Total non-interest expense		384,962		379,109		383,237		356,669		345,714
Income before income taxes		323,529		302,757		320,966		331,904		323,625
Income tax expense		66,740		56,526		65,146		70,687		64,777
Net income		256,789		246,231		255,820		261,217		258,848
Preferred stock dividends		(4,162)		(4,163)		(4,163)		(4,162)		(4,162)
Income allocated to participating securities		(3,185)		(2,794)		(2,956)		(3,004)		(2,991)
Net income applicable to common stockholders	$	249,442	$	239,274	$	248,701	$	254,051	$	251,695
Weighted-average common shares outstanding - basic		159,989		159,534		160,261		164,138		165,884
Weighted-average common shares - diluted		160,183		159,850		160,597		164,456		166,131
Earnings per Common Share:
Basic	$	1.56	$	1.50	$	1.55	$	1.55	$	1.52
Diluted		1.56		1.50		1.55		1.54		1.52

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis
		Three Months Ended June 30,
		2026						2025
(Dollars in thousands)		Average Balance		Interest Income/Expense	Average Yield/Rate			Average Balance		Interest Income/Expense	Average Yield/Rate
Assets:
Interest-earning assets:
Loans and leases	$	57,557,975	$	798,650	5.50	%	$	53,277,897	$	786,808	5.85	%
Investment securities		18,821,677		198,182	4.21			18,225,632		200,031	4.39
Federal Home Loan and Federal Reserve Bank stock		429,937		5,283	4.93			346,514		4,243	4.91
Interest-bearing deposits		3,024,245		27,885	3.65			2,096,578		23,368	4.41
Loans held for sale		12,939		2	0.07			58,024		7	0.04
Total interest-earning assets		79,846,773	$	1,030,002	5.12	%		74,004,645	$	1,014,457	5.44	%
Non-interest-earning assets		6,514,306						6,513,526
Total assets	$	86,361,079					$	80,518,171
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand	$	9,962,207	$	-	-	%	$	10,109,928	$	-	-	%
Interest-bearing checking		12,116,284		53,150	1.76			9,772,340		42,390	1.74
Health savings accounts		9,367,769		3,966	0.17			9,137,704		3,635	0.16
Money market		23,954,940		184,047	3.08			21,645,531		190,853	3.54
Savings		6,755,888		23,292	1.38			7,462,151		31,624	1.70
Certificates of deposit		6,015,621		46,584	3.11			6,061,399		51,873	3.43
Brokered certificates of deposits		1,624,580		15,830	3.91			1,774,379		19,363	4.38
Total deposits		69,797,289		326,869	1.88			65,963,432		339,738	2.07
Securities sold under agreements to repurchase		68,416		20	0.12			111,005		218	0.78
Federal Home Loan Bank advances		4,683,241		45,400	3.84			2,650,111		29,825	4.45
Long-term debt		722,347		8,343	4.62			885,773		9,624	4.35
Total borrowings		5,474,004		53,763	3.89			3,646,889		39,667	4.31
Total deposits and interest-bearing liabilities		75,271,293	$	380,632	2.02	%		69,610,321	$	379,405	2.18	%
Non-interest-bearing liabilities		1,391,470						1,613,827
Total liabilities		76,662,763						71,224,148
Preferred stock		283,979						283,979
Common stockholders' equity		9,414,337						9,010,044
Total stockholders' equity		9,698,316						9,294,023
Total liabilities and stockholders' equity	$	86,361,079					$	80,518,171
Tax-equivalent net interest income				649,370						635,052
Less: Tax-equivalent adjustments				(16,626)						(13,870)
Net interest income			$	632,744					$	621,182
Net interest margin					3.26	%					3.44	%

WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases
(In thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Loans and leases:
Commercial non-mortgage	$	22,702,138	$	22,169,383	$	21,664,119	$	20,654,331	$	19,943,097
Asset-based lending		1,036,823		1,118,988		1,231,231		1,258,478		1,350,006
Commercial real estate		22,793,088		22,569,080		22,334,846		21,911,298		21,358,775
Residential mortgages		9,600,445		9,600,026		9,599,577		9,509,142		9,332,413
Consumer		1,736,184		1,791,065		1,767,337		1,718,832		1,687,668
Total loans and leases		57,868,678		57,248,542		56,597,110		55,052,081		53,671,959
Allowance for credit losses on loans and leases		(723,846)		(733,434)		(719,411)		(727,897)		(722,046)
Total loans and leases, net	$	57,144,832	$	56,515,108	$	55,877,699	$	54,324,184	$	52,949,913
Average loans and leases:
Commercial non-mortgage	$	22,464,776	$	21,947,141	$	21,244,671	$	20,451,639	$	19,703,434
Asset-based lending		1,083,842		1,171,324		1,259,776		1,289,208		1,360,288
Commercial real estate		22,623,171		22,571,488		22,082,606		21,508,546		21,302,161
Residential mortgages		9,617,402		9,634,148		9,584,853		9,416,499		9,228,988
Consumer		1,768,784		1,781,991		1,751,232		1,707,068		1,683,026
Total average loans and leases	$	57,557,975	$	57,106,092	$	55,923,138	$	54,372,960	$	53,277,897
WEBSTER FINANCIAL CORPORATION Five Quarter Non-performing Assets and Past Due Loans and Leases
(In thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Non-performing loans and leases:
Commercial non-mortgage	$	180,513	$	193,936	$	174,073	$	223,398	$	231,458
Asset-based lending		34,342		60,471		66,911		58,797		44,405
Commercial real estate		176,010		231,353		224,623		227,118		224,554
Residential mortgages		18,974		20,127		17,889		16,843		15,748
Consumer		19,184		16,662		17,188		17,772		18,357
Total non-performing loans and leases	$	429,023	$	522,549	$	500,684	$	543,928	$	534,522
Other real estate owned and repossessed assets:
Commercial non-mortgage	$	566	$	1,284	$	1,082	$	1,399	$	2,528
Residential mortgages		195		195		-		-		-
Consumer		390		390		390		-		-
Total other real estate owned and repossessed assets	$	1,151	$	1,869	$	1,472	$	1,399	$	2,528
Total non-performing assets	$	430,174	$	524,418	$	502,156	$	545,327	$	537,050
Past due 30-89 days:
Commercial non-mortgage	$	8,926	$	26,812	$	16,428	$	10,934	$	16,338
Commercial real estate		71,734		89,105		24,962		27,812		16,241
Residential mortgages		25,054		21,790		15,194		17,000		12,664
Consumer		11,623		11,122		9,902		8,730		9,516
Total past due 30-89 days	$	117,337	$	148,829	$	66,486	$	64,476	$	54,759
Past due 90 days or more and accruing		3		9		-		1,152		-
Total past due loans and leases	$	117,340	$	148,838	$	66,486	$	65,628	$	54,759

WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases
		Three Months Ended
(In thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
ACL on loans and leases, beginning balance	$	733,434	$	719,411	$	727,897	$	722,046	$	713,321
Provision		33,110		55,239		41,005		44,205		45,126
Charge-offs:
Commercial portfolio		40,896		40,225		48,492		37,914		39,792
Consumer portfolio		4,098		3,997		2,994		2,034		1,446
Total charge-offs		44,994		44,222		51,486		39,948		41,238
Recoveries:
Commercial portfolio		1,055		1,017		556		765		3,250
Consumer portfolio		1,241		1,989		1,439		829		1,587
Total recoveries		2,296		3,006		1,995		1,594		4,837
Total net charge-offs		42,698		41,216		49,491		38,354		36,401
ACL on loans and leases, ending balance	$	723,846	$	733,434	$	719,411	$	727,897	$	722,046
ACL on unfunded loan commitments	$	21,295	$	22,879	$	24,117	$	23,117	$	22,824

WEBSTER FINANCIAL CORPORATION Non-GAAP to GAAP Reconciliations
		Three Months Ended
(In thousands, except ratio data)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Efficiency ratio:
Non-interest expense	$	384,962		$	379,109		$	383,237		$	356,669		$	345,714
Less: Foreclosed property activity		34			43			(577)			1,535			541
Intangible assets amortization		9,005			9,186			9,008			8,966			9,093
Operating lease depreciation		-			-			-			3			9
Charitable contribution to the Webster Foundation		-			-			20,000			-			-
Asset disposal and contract termination costs		-			-			6,966			-			-
Acquisition-related expenses ^(1)		8,725			9,145			1,129			-			-
Strategic restructuring costs ^(2)		-			3,636			-			-			-
FDIC special assessment		-			(684)			(10,318)			-			-
Adjusted non-interest expense	$	367,198		$	357,783		$	357,029		$	346,165		$	336,071
Net interest income	$	632,744		$	634,403		$	632,853		$	631,667		$	621,182
Add: Tax-equivalent adjustment		16,626			15,357			14,903			14,258			13,870
Non-interest income		107,247			101,463			113,350			100,906			94,657
Other income ^(3)		12,617			12,828			9,142			9,234			10,528
Less: Operating lease depreciation		-			-			-			3			9
Gain on debt redemption		-			-			9,767			-			-
Adjusted income	$	769,234		$	764,051		$	760,481		$	756,062		$	740,228
Efficiency ratio		47.74	%		46.83	%		46.95	%		45.79	%		45.40	%
Return on average tangible common stockholders’ equity:
Net income	$	256,789		$	246,231		$	255,820		$	261,217		$	258,848
Less: Preferred stock dividends		4,162			4,163			4,163			4,162			4,162
Add: Intangible assets amortization, tax-effected		6,545			6,676			6,565			6,534			6,627
Adjusted net income	$	259,172		$	248,744		$	258,222		$	263,589		$	261,313
Adjusted net income, annualized basis	$	1,036,688		$	994,976		$	1,032,888		$	1,054,356		$	1,045,252
Average stockholders' equity	$	9,698,316		$	9,638,238		$	9,513,033		$	9,440,148		$	9,294,023
Less: Average preferred stock		283,979			283,979			283,979			283,979			283,979
Average goodwill and other intangible assets, net		3,194,100			3,203,998			3,190,386			3,180,111			3,188,946
Average tangible common stockholders' equity	$	6,220,237		$	6,150,261		$	6,038,668		$	5,976,058		$	5,821,098
Return on average tangible common stockholders' equity		16.67	%		16.18	%		17.10	%		17.64	%		17.96	%
^(1)Acquisition-related expenses reflect Transaction expenses for the three months ended June 30, 2026, and March 31, 2026, and SecureSave acquisition expenses for the three months ended December 31, 2025.
^(2) Strategic restructuring costs reflect severance charges.
^(3) Other income includes a tax-equivalent adjustment on income generated from low-income housing tax credit investments.
(In thousands, except ratio and per share data)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Tangible equity ratio:
Stockholders' equity	$	9,760,749		$	9,573,649		$	9,492,236		$	9,462,677		$	9,337,617
Less: Goodwill and other intangible assets, net		3,188,976			3,197,981			3,210,756			3,175,747			3,184,039
Tangible stockholders' equity	$	6,571,773		$	6,375,668		$	6,281,480		$	6,286,930		$	6,153,578
Total assets	$	85,948,639		$	85,584,588		$	84,073,663		$	83,192,652		$	81,914,270
Less: Goodwill and other intangible assets, net		3,188,976			3,197,981			3,210,756			3,175,747			3,184,039
Tangible assets	$	82,759,663		$	82,386,607		$	80,862,907		$	80,016,905		$	78,730,231
Tangible equity ratio:		7.94	%		7.74	%		7.77	%		7.86	%		7.82	%
Tangible common equity ratio:
Tangible stockholders' equity	$	6,571,773		$	6,375,668		$	6,281,480		$	6,286,930		$	6,153,578
Less: Preferred stock		283,979			283,979			283,979			283,979			283,979
Tangible common stockholders' equity	$	6,287,794		$	6,091,689		$	5,997,501		$	6,002,951		$	5,869,599
Tangible assets	$	82,759,663		$	82,386,607		$	80,862,907		$	80,016,905		$	78,730,231
Tangible common equity ratio:		7.60	%		7.39	%		7.42	%		7.50	%		7.46	%
Tangible book value per common share:
Tangible common stockholders' equity	$	6,287,794		$	6,091,689		$	5,997,501		$	6,002,951		$	5,869,599
Common shares outstanding		162,034			162,049			161,216			164,817			167,083
Tangible book value per common share	$	38.81		$	37.59		$	37.20		$	36.42		$	35.13
Core deposits:
Total deposits	$	70,283,453		$	69,039,716		$	68,759,813		$	68,175,644		$	66,314,425
Less: Certificates of deposit		6,165,975			5,848,150			6,078,549			6,202,906			6,069,447
Brokered certificates of deposit		2,196,274			791,690			2,491,769			1,372,907			1,850,438
Core deposits	$	61,921,204		$	62,399,876		$	60,189,495		$	60,599,831		$	58,394,540

WEBSTER FINANCIAL CORPORATION Non-GAAP to GAAP Reconciliations
(In thousands)		Three Months Ended June 30, 2026			Six Months Ended June 30, 2026
Adjusted return on average assets:
Net income	$	256,789		$	503,020
Add: Transaction expenses, tax-effected		6,448			15,217
Strategic restructuring costs, tax-effected ^(1)		-			2,643
FDIC special assessment, tax-effected		-			(497)
Adjusted net income	$	263,237		$	520,383
Adjusted net income, annualized basis	$	1,052,948		$	1,040,766
Average assets	$	86,361,079		$	85,732,388
Adjusted return on average assets		1.22	%		1.21	%
Adjusted return on average tangible common stockholders' equity:
Net income	$	256,789		$	503,020
Less: Preferred stock dividends		4,162			8,325
Add: Intangible assets amortization, tax-effected		6,545			13,221
Transaction expenses, tax effected		6,448			15,217
Strategic restructuring costs, tax-effected ^(1)		-			2,643
FDIC special assessment, tax-effected		-			(497)
Adjusted net income	$	265,620		$	525,279
Adjusted net income, annualized basis	$	1,062,480		$	1,050,558
Average stockholders' equity	$	9,698,316		$	9,668,443
Less: Average preferred stock		283,979			283,979
Average goodwill and other intangible assets, net		3,194,100			3,199,022
Average tangible common stockholders' equity	$	6,220,237		$	6,185,442
Adjusted return on average tangible common stockholders' equity		17.08	%		16.98	%
GAAP to adjusted reconciliation:
	Three Months Ended June 30, 2026
(In thousands, except per share data)		Pre-Tax Income			Income Applicable to Common Stockholders			Diluted EPS
Reported (GAAP)	$	323,529		$	249,442		$	1.56
Transaction expenses		8,725			6,448			0.04
Adjusted (non-GAAP)	$	332,254		$	255,890		$	1.60
	Six Months Ended June 30, 2026
		Pre-Tax Income			Income Applicable to Common Stockholders			Diluted EPS
Reported (GAAP)	$	626,286		$	488,721		$	3.05
Transaction expenses		17,870			15,217			0.09
Strategic restructuring costs ^(1)		3,636			2,643			0.02
FDIC special assessment		(684)			(497)			—
Adjusted (non-GAAP)	$	647,108		$	506,084		$	3.16
^(1) Strategic restructuring costs reflect severance charges.