Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 98

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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 by a decrease in average multi-family mortgages.

•Average total investment securities increased $1.2 billion, or 7.0%, reflecting increases of $0.7 billion in average available-for-sale and $0.5 billion in average held-to-maturity, primarily due to the timing and volume of purchase, paydown, and sales activities.

•Average interest-bearing deposits held at the FRB increased $1.4 billion, or 270.9%, 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 items:

•Average total deposits increased $4.3 billion, or 7.1%, 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 brokered certificates of deposits and average demand.

•Average FHLB advances decreased $0.2 billion, or 6.9%, primarily due to the paydown of short-term advances in the first quarter of 2025 and a change in short-term borrowings mix.

Provision for Credit Losses

Comparison to Prior Year Quarter

The total provision for credit losses decreased $12.5 million, or 21.2%, from $59.0 million for the three months ended June 30, 2024, to $46.5 million for three months ended June 30, 2025, primarily due to improvements in risk rating migration, partially offset by uncertainty in the current macroeconomic environment and organic loan growth.

Comparison to Prior Year to Date

The total provision for credit losses increased $19.5 million, or 18.7%, from $104.5 million for the six months ended June 30, 2024, to $124.0 million for the six months ended June 30, 2025, primarily due to higher net charge-offs in excess of prior reserves, uncertainty in the current macroeconomic environment, and organic loan growth, partially offset by improvements in risk rating migration.

Additional information regarding the Company’s provision for credit losses on loans and leases and the related ACL can be found under the sections captioned “Loans and Leases” through “Allowance for Credit Losses on Loans and Leases” contained elsewhere in this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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