Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 119

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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.8 9.3 0.5 8.1 8.6 Construction0.1 5.8 5.9 0.1 7.7 7.8 Healthcare & Senior Living3.6 1.5 5.1 4.3 1.9 6.2 Medical Office0.2 4.5 4.7 0.1 4.2 4.3 Traditional Office— 3.7 3.7 — 3.8 3.8 Hotel— 2.1 2.1 — 2.1 2.1 Other4.9 9.9 14.8 4.8 10.0 14.8 Total Commercial real estate & Multi-family12.7 %87.3 %100.0 %13.3 %86.7 %100.0 %

The weighted-average LTV ratio for non-owner occupied commercial real estate and multi-family loans at June 30, 2025, and December 31, 2024, was 56% and 57%, respectively. The Company calculates its LTV ratios primarily using appraisals at origination unless a full appraisal is subsequently required based on deal-specific events.

Given the foundational change in office demand driven by the acceptance of remote work options, the commercial real estate market has continued to experience an increase in office property vacancies. As such, commercial real estate performance across the United States related to the traditional office sector continues to be an area of uncertainty. At June 30, 2025, the outstanding principal balance of traditional office commercial real estate loans was approximately $0.8 billion, which had reserves of $43.8 million established against it. While the Company does anticipate ongoing change in the traditional office sector, management believes that its reserve levels reflect the expected credit losses in the portfolio.

19

Credit Policies and Procedures

The Bank has credit policies and procedures in place designed to support its lending activities within an acceptable level of risk, which are reviewed and approved by management and the Board of Directors on a regular basis. To assist with this process, management inspects reports generated by the Company’s loan reporting systems related to loan production, loan quality, concentrations of credit, loan delinquencies, non-performing loans, and potential problem loans.

Commercial non-mortgage, asset-based, and equipment finance loans are underwritten