Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 248

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 248
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 insurance, and Other expense.

Compensation and benefits increased $51.1 million, or 7.2%, from $711.7 million for the year ended December 31, 2023, to $762.8 million for the year ended December 31, 2024, primarily due to higher compensation, performance-based incentives, and employee benefits, and the impact from the employees acquired in the Ametros acquisition. 

Occupancy decreased $5.3 million, or 6.9%, from $77.5 million for the year ended December 31, 2023, to $72.2 million for the year ended December 31, 2024, primarily due a $3.4 million net gain recognized on an early lease termination and lower rent and related property tax expense.

Professional and outside services decreased $49.2 million, or 45.8%, from $107.5 million for the year ended December 31, 2023, to $58.3 million for the year ended December 31, 2024, primarily due to a decrease in technology consulting fees, which were higher in 2023 as a result of the core conversion of the legacy Webster and legacy Sterling platforms.

Deposit insurance decreased $29.2 million, or 29.7%, from $98.1 million for the year ended December 31, 2023, to $68.9 million for the year ended December 31, 2024, primarily due to the impact of the FDIC special assessment, partially offset by the impact resulting from an increase in the Company’s deposit insurance assessment base.

Other expense decreased $29.4 million, or 17.4%, from $168.7 million for the year ended December 31, 2023, to $139.3 million for the year ended December 31, 2024, primarily due to decreases in contract termination costs, other miscellaneous expenses, check card expense, and operating lease depreciation, partially offset by an increase in franchise taxes, loan workout expense, and a $1.9 million impairment loss on the payroll finance customer relationship intangible asset.

40

Income Taxes

The Company recognized income tax expense of $248.3 million and $216.7 million for the years ended December 31, 2024, and 2023, respectively, reflecting effective tax rates of 24.4% and 20.0%, respectively. 

During the fourth quarter of