Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 100

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 100
---
 primarily due to increases in commercial non-mortgage, residential mortgages, and other consumer loans, partially offset by decreases in multi-family mortgages and asset-based lending. 

•Average total investment securities increased $0.9 billion, or 5.1%, reflecting an increase of $1.4 billion in available-for-sale securities, partially offset by a decrease of $0.5 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 237.1%, 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 $4.7 billion, or 7.6%, primarily due to an increase in money market deposits, which contributed to $2.6 billion of the change. The Company also experienced increases across all other deposit products, except for demand deposits.

7

Comparison to Prior Year to Date

Net interest income increased $0.2 billion, or 7.8%, from $1.7 billion for the nine months ended September 30, 2024, to $1.9 billion for the nine months ended September 30, 2025, reflecting increases of $4.5 billion, or 6.5%, in average total interest-earning assets and $4.3 billion, or 6.7%, in average total deposits and interest-bearing liabilities. Net interest margin increased 3 basis points from 3.41% for the nine months ended September 30, 2024, to 3.44% for the nine months ended September 30, 2025. The lower interest rate environment during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily caused the average yield on average total interest-earning assets to decrease by 21 basis points and the average rate on average total deposits and interest-bearing liabilities to decrease by 28 basis points.

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

•Average loans and leases increased $2.0 billion, or 4.0%, primarily due to increases in commercial non-mortgage, residential mortgages, commercial real estate, and other consumer loans