Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 75

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 75
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336 Income tax expense$248,300 $216,664 $153,694 Included in the Company’s income tax expense for the years ended December 31, 2024, 2023, and 2022, are net tax benefits related to credits of approximately $19.1 million, $11.9 million, and $14.0 million, respectively. These amounts relate primarily to LIHTC investments and include associated SALT credits and benefits from losses, as well as the related proportional amortization expense of the underlying investments.The Company’s deferred income tax expense for the year ended December 31, 2024, includes $29.4 million of net tax expense related to an increase in its beginning-of-year valuation allowance for its SALT DTAs attributable to operating loss carryforwards, as discussed further below. The Company’s deferred income tax benefit for the year ended December 31, 2022, includes a net tax benefit of $9.9 million related to a reduction in its beginning-of-year valuation allowance that year for its SALT DTAs attributable to operating loss carryforwards.The following table reflects a reconciliation of reported income tax expense to the amount that would result from applying the federal statutory rate of 21.0%: Years ended December 31, 202420232022(In thousands)AmountPercentAmountPercentAmountPercentIncome tax expense at federal statutory rate$213,572 21.0 %$227,746 21.0 %$167,575 21.0 %Reconciliation to reported income tax expense:SALT expense, net of federal42,059 4.1 32,177 3.0 32,259 4.1 Tax-exempt interest, net(29,272)(2.9)(44,473)(4.1)(35,371)(4.4)Increase in cash surrender value of life insurance(5,816)(0.6)(5,469)(0.5)(6,122)(0.8)Non-deductible FDIC deposit insurance premiums12,305 1.2 10,693 1.0 5,581 0.7 LIHTC and related benefits, net(13,545)(1.3)(3,866)(0.4)(7,627)(1.0)Non-deductible compensation expense3,680 0.4 4,167 0.4 7,948 1