Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 107

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 107
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30, 2025, primarily reflects a higher level of estimated annual pre-tax ordinary income for 2025, compared to 2024, partially offset by the recognition of a $3.7 million net discrete tax benefit in the current period, which impacted the effective tax rate by 1.1 percentage points, compared to the recognition of a $4.1 million net discrete tax expense in the prior period, which impacted the effective tax rate by 1.7 percentage tax points.

Comparison to Prior Year to Date

The Company recognized income tax expense of $192.2 million and $169.0 million for the nine months ended September 30, 2025, and 2024, respectively, reflecting effective tax rates of 20.5% and 22.2%, respectively. The increase in income tax expense is primarily due to a higher level of pre-tax income recognized during the nine months ended September 30, 2025. The higher effective tax rate for the nine months ended September 30, 2024, primarily reflects the recognition of a $13.2 million net discrete tax expense in that period, which impacted the effective tax rate by 1.7 percentage points, compared to the recognition of a $9.7 million net discrete tax benefit in the current period, which impacted the effective tax rate by 1.0 percentage point.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, which includes a broad range of tax reform provisions with varying effective dates. The Company has evaluated the changes in tax law and determined that the impact on its consolidated financial statements is not material.

Additional information regarding the Company’s income taxes, including its deferred tax assets, can be found within Note 9: Income Taxes 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.

11

Segment Reporting

The Company’s operations are organized into three reportable segments that represent its differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. Additional information regarding the Company’s reportable segments and its segment reporting methodology can be found within Note 15: Segment Reporting in the Notes to Condensed Consolidated Financial Statements contained in Part I -Item 1. Financial Statements of this report, and within Note 21: Segment Reporting in the Notes to Consolidated Financial Statements contained in Part II -