Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 101

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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, partially offset by decreases in multi-family mortgages and asset-based lending.

•Average total investment securities increased $1.1 billion, or 6.4%, reflecting increases of $0.9 billion in available-for-sale securities and $0.2 billion in held-to-maturity securities, primarily due to the timing and volume of purchase, paydown, and sales activities.

•Average interest-bearing deposits held at the FRB increased $1.5 billion, or 257.5%, primarily due to management’s strategic decision to hold higher levels of on-balance sheet liquidity.

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

•Average total deposits increased $4.5 billion, or 7.3%, primarily due to an increase in money market deposits, which contributed to $2.9 billion of the change. The Company also experienced increases across all other deposit products, except for demand deposits and brokered certificates of deposit.

Provision for Credit Losses

Comparison to Prior Year Quarter

The total provision for credit losses decreased $10.0 million, or 18.5%, from $54.0 million for the three months ended September 30, 2024, to $44.0 million for three months ended September 30, 2025, primarily due to improvements in risk rating migration, partially offset by changes in the macroeconomic forecast, economic uncertainty, and organic loan growth.

Comparison to Prior Year to Date

The total provision for credit losses increased $9.5 million, or 6.0%, from $158.5 million for the nine months ended September 30, 2024, to $168.0 million for the nine months ended September 30, 2025, primarily due to higher net charge-offs, changes in the macroeconomic forecast, economic uncertainty, and loan growth, partially offset by improvements in risk rating migration.

Additional information regarding the Company’s provision for credit losses on loans and leases and the related ACL can be found under the sections captioned “Loans and Leases” through “Allowance for Credit Losses on Loans and Leases” contained elsewhere in this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

8

Non-Interest IncomeThree months ended September 30,Nine months ended September 30,(Dollars in thousands)2025202420252024Deposit service fees$39,576 $38,863 $