Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 97

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 97
---
 to the timing and volume of purchase, paydown, and sales activities.

•Average interest-bearing deposits held at the FRB increased $1.6 billion, or 333.2%, primarily due to management’s strategic decision to hold higher levels of on-balance sheet liquidity.

•Average loans held for sale decreased $0.2 billion, or 73.9%, primarily due to the payroll finance and factored receivables loan portfolios that were classified as held for sale in the first quarter of 2024.

The change in average total deposits and interest-bearing liabilities was primarily attributed to the following items:

•Average total deposits increased $4.2 billion, or 6.9%, primarily due to increases in average money markets, which contributed to $3.0 billion of the change. The Company also experienced increases across all other deposit products except for average brokered certificates of deposits and average demand.

•Average FHLB advances increased $0.2 billion, or 9.1%, primarily due to a change in short-term borrowings mix.

7

Comparison to Prior Year to Date

Net interest income increased $0.1 billion, or 8.2%, from $1.1 billion for the six months ended June 30, 2024, to $1.2 billion for the six months ended June 30, 2025. Net interest margin increased 6 basis points from 3.40% for the six months ended June 30, 2024, to 3.46% for the six months ended June 30, 2025, reflecting increases of $4.3 billion, or 6.2%, in average total interest-earning assets and $4.1 billion, or 6.3%, in average total deposits and interest-bearing liabilities. The lower interest rate environment during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily caused the average yield on average total interest-earning assets to decrease by 19 basis points and the average rate on average total deposits and interest-bearing liabilities to decrease by 28 basis points.

The change in average total interest-earnings assets was primarily attributed to the following items:

•Average loans and leases increased $1.7 billion, or 3.4%, primarily due to increases in average commercial non-mortgage and average residential mortgages, partially offset