Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 108

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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 Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Commercial Banking

Operating Results:Three months ended September 30,Nine months ended September 30,(In thousands)2025202420252024Net interest income$328,306 $338,424 $965,947 $1,017,954 Non-interest income33,902 33,288 93,488 102,078 Non-interest expense108,590 100,892 323,544 311,705 Pre-tax, pre-provision net revenue$253,618 $270,820 $735,891 $808,327 

Comparison to Prior Year Quarter 

Commercial Banking’s PPNR decreased $17.2 million, or 6.4%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024 due to a decrease in net interest income and an increase in non-interest expense, partially offset by an increase in non-interest income. The $10.1 million decrease in net interest income is primarily due to a lower net spread on loans and leases, partially offset by higher average loan and deposit balances. The $0.6 million increase in non-interest income is primarily due to higher syndication and prepayment fees and an increase in client hedging activities, partially offset by a non-recurring gain from a multi-family securitization event in the third quarter of 2024. The $7.7 million increase in non-interest expense is primarily due to increased investments in human capital, operational process improvements, technology, and higher foreclosed property and loan workout expenses. 

Comparison to Prior Year to Date 

Commercial Banking’s PPNR decreased $72.4 million, or 9.0%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to decreases in net interest income and non-interest income and an increase in non-interest expense. The $52.0 million decrease in net interest income is primarily due to a lower net spread on loans and leases, partially offset by higher average loan and deposit balances and lower deposit costs. The $8.6 million decrease in non-interest income is primarily due to lower factoring, syndication, and deposit service fees, and a non-recurring gain from