Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 106

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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 by a decrease in severance.

Occupancy increased $4.7 million, or 8.7%, from $53.4 million for the nine months ended September 30, 2024, to $58.1 million for the nine months ended September 30, 2025, primarily due to a one-time lease termination benefit in the second quarter of 2024.

Technology and equipment decreased $6.6 million, or 4.5%, from $147.8 million for the nine months ended September 30, 2024, to $141.2 million for the nine months ended September 30, 2025, primarily due to decreases in service contracts and technology contract termination costs.

Professional and outside services increased $10.4 million, or 24.1%, from $43.0 million for the nine months ended September 30, 2024, to $53.4 million for the nine months ended September 30, 2025, primarily due to an increase in technology consulting fees.

10

Deposit insurance decreased $5.8 million, or 11.0%, from $52.8 million for the nine months ended September 30, 2024, to $47.0 million for the nine months ended September 30, 2025, primarily due to an increase in the FDIC special assessment estimate in the first quarter of 2024, partially offset by the impact from an increase in the Company’s deposit insurance assessment base.

Other expense decreased $7.3 million, or 7.0%, from $104.6 million for the nine months ended September 30, 2024, to $97.3 million for the nine months ended September 30, 2025, primarily due to the impairment loss on the payroll finance customer relationship intangible asset in the third quarter of 2024 and individually immaterial decreases in various other expense items.

Income Taxes

Comparison to Prior Year Quarter

The Company recognized income tax expense of $70.7 million and $51.7 million for the three months ended September 30, 2025, and 2024, respectively, reflecting effective tax rates of 21.3% and 21.1%, respectively. The increase in income tax expense is primarily due to a higher level of pre-tax income recognized during the three months ended September 30, 2025. The higher effective tax rate for the three months ended September