Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 169

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 169
---
498)(97,856)(71,817)(2,748)(74,565)Recoveries4,192 2,306 6,498 913 3,035 3,948 Balance, end of period (1)$658,543 $63,503 $722,046 $621,720 $47,635 $669,355 Individually evaluated for credit losses95,323 811 96,134 66,943 649 67,592 Collectively evaluated for credit losses$563,220 $62,692 $625,912 $554,777 $46,986 $601,763 (1)The $32.4 million increase in the ACL on loans and leases from December 31, 2024, to June 30, 2025, is primarily due to additional reserves resulting from uncertainty in the current macroeconomic environment and organic loan growth, partially offset by net charge-offs and improvements in risk rating migration.Concentrations of Credit RiskConcentrations of credit risk may exist when a number of borrowers are engaged in similar activities, or activities in the same geographic region, and have similar economic characteristics that would cause them to be similarly impacted by changes in economic or other conditions. Concentrations of credit risk are controlled and monitored as part of the Company’s credit policies and procedures. The Company is a regional financial services holding company in the Northeast U.S. with a commercial concentration primarily in five geographic markets: New York City, Other New York Counties, Connecticut, New Jersey, and Massachusetts; and secondarily in the Southeast and Other states. At June 30, 2025, and December 31, 2024, the Company’s concentration of credit risk associated with commercial real estate and multi-family loans, in aggregate, represented 39.8% and 40.7% of total loans and leases, respectively. At June 30, 2025, and December 31, 2024, the Company’s concentration of credit risk associated with commercial non-mortgage loans represented 34.9% and 34.4% of total loans and leases, respectively.

49

Credit Quality IndicatorsTo measure credit risk for the commercial portfolio, the Company employs a dual grade credit risk grading system for estimating the PD and LGD. The credit risk grade system assigns a rating to each borrower and to the facility, which together form a Composite Credit Risk Profile. The credit risk grade