Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 91

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 91
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, 2024, to $16.3 million for the three months ended March 31, 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.

Income Taxes

The Company recognized income tax expense of $56.7 million and $69.3 million for the three months ended March 31, 2025, and 2024, respectively, reflecting effective tax rates of 20.0% and 24.3%, respectively. The higher income tax expense and effective tax rate for the three months ended March 31, 2024, primarily reflects the recognition of a $10.9 million discrete expense in that period, which impacted the effective rate by 3.8 percentage points.

Additional information regarding the Company’s income taxes, including its deferred tax assets, can be found within Note 9: Income Taxes in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

8

Segment Reporting

The Company’s operations are organized into three reportable segments that represent its differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. Additional information regarding the Company’s reportable segments and its segment reporting methodology can be found within Note 15: Segment Reporting in the Notes to Condensed Consolidated Financial Statements contained in Part I -  Item 1. Financial Statements of this report, and within Note 21: Segment Reporting in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Commercial Banking

Operating Results:Three months ended March 31,(In thousands)20252024Net interest income$319,123 $341,942 Non-interest income28,958 34,280 Non-interest expense106,582 106,225 Pre-tax, pre-provision net revenue$241,499 $269,997 

Commercial Banking’s PPNR decreased $28.5 million, or 10.6%, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, due to decreases in net interest income and