Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 103

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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 lease termination benefit in the second quarter of 2024.

Professional and outside services increased $8.6 million, or 31.7%, from $27.0 million for the six months ended June 30, 2024, to $35.6 million for the six months ended June 30, 2025, primarily due to an increase in technology consulting fees.

Deposit insurance decreased $7.9 million, or 20.1%, from $39.3 million for the six months ended June 30, 2024, to $31.4 million for the six months ended June 30, 2025, primarily due to an increase in the FDIC special assessment estimate in the first quarter of 2024, partially offset by the impact from the increase in the Company’s deposit insurance assessment base.

Other expense decreased $4.7 million, or 6.9%, from $68.3 million for the six months ended June 30, 2024, to $63.5 million for the six months ended June 30, 2025, primarily due to individually immaterial decreases in various other expense items, partially offset by higher pension expense.

10

Income Taxes

Comparison to Prior Year Quarter

The Company recognized income tax expense of $64.8 million and $47.9 million for the three months ended June 30, 2025, and 2024, respectively, reflecting effective tax rates of 20.0% and 20.9%, respectively. The increase in income tax expense is primarily due to a higher level of pre-tax income recognized during the three months ended June 30, 2025. The decrease in the effective tax rate reflects the recognition of a $3.9 million discrete tax benefit during the three months ended June 30, 2025, compared to a $0.3 million net discrete tax benefit recognized during the three months ended June 30, 2024.

Comparison to Prior Year to Date

The Company recognized income tax expense of $121.5 million and $117.3 million for the six months ended June 30, 2025, and 2024, respectively, reflecting effective tax rates of 20.0% and 22.8%, respectively. The increase in income tax expense is primarily due to a higher level of pre-tax income recognized during the six months ended June 30, 2025. The higher effective tax rate for the six