Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 88

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 88
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7 basis points from 3.41% for the three months ended March 31, 2024, to 3.48% for the three months ended March 31, 2025, reflecting increases of $4.1 billion, or 6.0%, in average total interest-earning assets and $3.7 billion, or 5.8%, in average interest-bearing liabilities. The lower interest rate environment during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily resulted in the average yield on average interest-earning assets to decrease by 17 basis points and the average rate on average interest-bearing liabilities to decrease by 24 basis points.

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

•Average loans and leases increased $1.6 billion, or 3.2%, primarily due to increases in average commercial and institutional loans and average residential mortgages. 

•Average total investment securities increased $1.2 billion, or 7.4%, reflecting increases of $1.0 billion in held-to-maturity and $0.2 billion in available-for-sale, primarily due the timing and volume of purchase and sales activities.

•Average interest-bearing deposits held at the FRB increased $1.2 billion, or 217.9%, primarily due to management’s strategic decision to hold higher levels of on-balance sheet liquidity.

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

•Average total deposits increased $4.4 billion, or 7.3%, 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 demand and average brokered certificates of deposits.

•Average FHLB advances decreased $0.6 billion, or 21.5%, primarily due to the paydown of short-term advances and a change in short-term borrowings mix.

6

Provision for Credit Losses

The total provision for credit losses increased $32.0 million, or 70.3%, from $45.5 million for the three months ended March 31, 2024, to $77.5 million for the three months ended March 31, 2025, primarily due to additional loan and lease reserves resulting from uncertainty in the current macroeconomic environment and risk rating migration