Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 205

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 205
---
2024Net income$261,217 $192,985 $746,982 $590,941 Less: Preferred stock dividends4,162 4,162 12,487 12,487   Income allocated to participating securities3,004 2,024 8,339 6,136 Net income applicable to common stockholders$254,051 $186,799 $726,156 $572,318 Weighted-average common shares outstanding - basic164,138 169,569 166,386 169,898 Add: Effect of dilutive stock options and restricted stock318 325 352 328 Weighted-average common shares - diluted164,456 169,894 166,738 170,226 Earnings per common share - basic$1.55 $1.10 $4.36 $3.37 Earnings per common share - diluted1.54 1.10 4.36 3.36 Earnings per common share is calculated under the two-class method in which all earnings, distributed and undistributed, are allocated to common stock and participating securities based on their respective rights to receive dividends. The Company may provide for the grant of stock options, restricted stock, performance-based restricted stock, and stock units to eligible employees and directors under its stock incentive plan. Holders of restricted stock are entitled to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities.Potential common shares from performance-based restricted stock that were not included in the computation of diluted earnings per common share because they were anti-dilutive under the treasury stock method were zero for the three and nine months ended September 30, 2025, and 2024. Additional information regarding stock awards under the Company’s stock incentive plan can be found within Note 20: Share-Based Plans in the Notes to Consolidated Financial Statements 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, 2024.

69

Note 13: Derivative Financial Instruments

Derivative Positions and OffsettingDerivatives Designated in Hedge Relationships. Interest rate swaps allow the Company to change the fixed or variable nature of an interest rate without the exchange of the underlying notional amount. Certain pay fixed/receive variable interest rate