Webster Reports Second Quarter 2026 EPS of $1.56; Adjusted EPS of $1.60

Webster Reports Second Quarter 2026 EPS of $1.56; Adjusted EPS of $1.60 Jul 21, 2026 Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $249.4 million, or $1.56 per diluted share, for the quarter ended June 30, 2026, compared to $251.7 million, or $1.52 per diluted share, for the quarter ended June 30, 2025. Second quarter 2026 results include Transaction expenses. Excluding this item, adjusted earnings per diluted share would have been $1.601 for the quarter ended June 30, 2026. On February 3, 2026, Webster entered into a transaction agreement with Banco Santander, S.A. (“Banco Santander”), under which Banco Santander will acquire Webster in a cash and stock transaction (the “Transaction”). The Transaction was approved by Webster’s stockholders on May 26, 2026, the Office of the Comptroller of the Currency on June 12, 2026 and the European Central Bank on July 21, 2026. The Transaction remains subject to customary closing conditions, including the approval of the Board of Governors of the Federal Reserve System. The Transaction is expected to close in the second half of 2026. Under the terms of the transaction agreement, Webster’s common stockholders will receive $48.75 in cash and 2.0548 Banco Santander ordinary shares, which will be delivered in the form of American Depository Receipts, for each Webster share. In light of the proposed Transaction with Banco Santander, Webster will no longer provide a forward-looking financial outlook. “Webster continued to generate impressive financial results this quarter,” said John R. Ciulla, Chairman and Chief Executive Officer. “Our execution is commendable, in that our colleagues continue to deliver for our clients while they also prepare to integrate our proposed Transaction with Banco Santander.” Highlights for the second quarter of 2026: Revenue 2 of $740.0 millionLoans and leases balance of $57.9 billion, up $0.6 billion, or 1.1 percent from prior quarterDeposits balance of $70.3 billion, up $1.2 billion, or 1.8 percent, from prior quarterProvision for credit losses of $31.5 millionReturn on average assets of 1.19 percentReturn on average tangible common stockholders’ equity of 16.67 percent 1Net interest margin of 3.26 percentCommon equity tier 1 ratio of 11.69 percent 3Efficiency ratio of 47.74 percent 1Tangible common equity ratio of 7.60 percent 1 “Our returns and growth affirm the quality of Webster’s banking franchise,” said Neal Holland, Senior Executive Vice President and Chief Financial Officer. “Our operating position has only grown stronger, as capital levels increased, loans grew in categories with appealing risk characteristics, and non-performing assets declined significantly.” 1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 12. 2 Total revenue reflects the sum of Net interest income and Non-interest income. 3 Presented as preliminary for June 30, 2026. Consolidated financial performance compared to the second quarter of 2025: Net interest income: Net interest income was $632.7 million, compared to $621.2 million.Net interest margin was 3.26 percent, compared to 3.44 percent.Average interest-earning assets totaled $79.8 billion, an increase of $5.8 billion, or 7.9 percent. The average yield on interest-earning assets decreased by 32 basis points.Average deposits and interest-bearing liabilities totaled $75.3 billion, an increase of $5.7 billion, or 8.1 percent. The average cost of deposits and interest-bearing liabilities decreased by 16 basis points. Provision for credit losses: The provision for credit losses was $31.5 million, compared to $46.5 million.Net charge-offs were $42.7 million, compared to $36.4 million. The ratio of net charge-offs to average loans and leases was 0.30 percent, compared to 0.27 percent.The allowance for credit losses on loans and leases represented 1.25 percent of total loans and leases, compared to 1.35 percent.The allowance for credit losses on loans and leases represented 169 percent of non-performing loans and leases, compared to 135 percent. Non-interest income: Total non-interest income was $107.2 million, compared to $94.7 million. The $12.5 million increase was primarily driven by other miscellaneous income and higher loan and lease related fees. Non-interest expense: Total non-interest expense was $385.0 million, compared to $345.7 million. The $39.3 million increase was primarily driven by higher compensation and benefit costs and $8.7 million of Transaction expenses incurred during the quarter ended June 30, 2026. Income taxes: Income tax expense was $66.7 million, compared to $64.8 million, and the effective tax rate was 20.6 percent, compared to 20.0 percent. Both the higher income tax expense and the effective tax rate for the quarter ended June 30, 2026, primarily reflected the recognition of $1.2 million of net discrete tax benefits in the current period, compared to $3.9 million a year ago. Investment securities: Investment securities totaled $18.3 billion, an increase of $0.5 billion, or 2.7 percent. The carrying value at June 30, 2026, included $0.6 billion of net unrealized losses on the available-for-sale securities portfolio and excluded $0.9 billion of net unrealized losses on the held-to-maturity securities portfolio. Loans and leases: Loans and leases totaled $57.9 billion, an increase of $4.2 billion, or 7.8 percent. Commercial loans and leases increased by $2.4 billion, commercial real estate loans increased by $1.4 billion, residential mortgages increased by $0.3 billion, and consumer loans increased by $0.1 billion.Loan originations for the portfolio were $3.5 billion, compared to $3.8 billion. Asset quality: Non-performing loans and leases were $429.0 million, a decrease of $105.5 million, or 19.7 percent. The decrease was primarily driven by commercial non-mortgage and commercial real estate. The ratio of non-performing loans and leases to total loans and leases was 0.74 percent, compared to 1.00 percent.Past due loans and leases were $117.3 million, an increase of $62.6 million, or 114.3 percent. The increase was primarily driven by commercial real estate. Deposits and borrowings: Deposits totaled $70.3 billion, an increase of $4.0 billion, or 6.0 percent. The increase was primarily driven by interest-bearing checking and money market. The ratio of core deposits to total deposits 1 remained flat at 88.1 percent. The loan to deposit ratio was 82.3 percent, compared to 80.9 percent.Borrowings totaled $4.5 billion, a decrease of $0.1 billion, or 3.2 percent. Capital: The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity 1 were 10.73 percent and 16.67 percent, respectively, compared to 11.31 percent and 17.96 percent, respectively.The tangible equity 1 and tangible common equity 1 ratios were 7.94 percent and 7.60 percent, respectively, compared to 7.82 percent and 7.46 percent, respectively.The common equity tier 1 ratio 2 was 11.69 percent, compared to 11.35 percent.Book value per common share and tangible book value per common share 1 were $58.49 and $38.81, respectively, compared to $54.19 and $35.13, respectively. 1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 12. 2 Presented as preliminary for June 30, 2026, and actual for the remaining periods. Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Headquartered in Stamford, CT, Webster is a values-driven organization with approximately $86 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, the Private Securities Litigation Reform Act of 1995. Factors that could cause Webster’s actual results to differ from those described in the forward-looking statements are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and in Webster’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster’s actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Measures In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures, including the efficiency ratio, the return on average tangible common stockholders’ equity, the tangible equity ratio, the tangible common equity ratio, tangible book value per common share, core deposits, adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted earnings per share (“EPS”). A reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure is included in the accompanying selected financial highlights table. Webster believes that certain non-GAAP financial measures provide investors with information useful in understanding its financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by Webster for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. Webster believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting its business and allows investors to view its performance in a manner similar to management. The efficiency ratio represents the costs expended to generate a dollar of revenue and is calculated excluding certain non-operational items and certain non-recurring transactions or events. The return on average tangible common stockholders’ equity is calculated using net income less preferred stock dividends, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and other intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and other intangible assets (“tangible stockholders’ equity”) divided by total assets less goodwill and other intangible assets (“tangible assets”). The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and other intangible assets (“tangible common stockholders’ equity”) divided by tangible assets. Tangible book value per common share represents tangible common stockholders’ equity divided by the number of common shares outstanding at the end of the reporting period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. The adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted EPS are calculated excluding certain non-recurring transactions or events, which have been tax-effected, as applicable. These non-GAAP financial measures should not be considered a substitute for GAAP-basis financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these with other companies that present financial measures having the same or similar names. Webster strongly encourages investors to review its consolidated financial statements in their entirety and to not rely on any single financial measure. Refer the tables beginning on page 12 for Non-GAAP to GAAP reconciliations. NO OFFER OR SOLICITATION This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). By making this communication available, no advice or recommendation is being given to buy, sell or otherwise deal in any securities or investments whatsoever. WEBSTER FINANCIAL CORPORATION Selected Financial Highlights Three Months Ended(In thousands, except per share and ratio data)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Income and performance ratios:Net income$ 256,789 $ 246,231 $ 255,820 $ 261,217 $ 258,848 Net income applicable to common stockholders 249,442 239,274 248,701 254,051 251,695 Earnings per common share - diluted 1.56 1.50 1.55 1.54 1.52 Return on average assets (annualized) 1.19 % 1.16 % 1.23 % 1.27 % 1.29 % Return on average tangible common stockholders' equity (annualized) (1) 16.67 16.18 17.10 17.64 17.96 Return on average common stockholders’ equity (annualized) 10.73 10.35 10.91 11.23 11.31 Non-interest income as a percentage of total revenue(2) 14.49 13.79 15.19 13.77 13.22 Asset quality:Allowance for credit losses on loans and leases$ 723,846 $ 733,434 $ 719,411 $ 727,897 $ 722,046 Non-performing assets 430,174 524,418 502,156 545,327 537,050 Allowance for credit losses on loans and leases / total loans and leases 1.25 % 1.28 % 1.27 % 1.32 % 1.35 % Net charge-offs / average loans and leases (annualized) 0.30 0.29 0.35 0.28 0.27 Non-performing loans and leases / total loans and leases 0.74 0.91 0.88 0.99 1.00 Non-performing assets / total loans and leases plus other real estate owned and repossessed assets 0.74 0.92 0.89 0.99 1.00 Allowance for credit losses on loans and leases / non-performing loans and leases 168.72 140.36 143.69 133.82 135.08 Other ratios:Tangible equity (1) 7.94 % 7.74 % 7.77 % 7.86 % 7.82 % Tangible common equity(1) 7.60 7.39 7.42 7.50 7.46 Tier 1 Risk-Based Capital(3) 12.17 11.91 11.69 11.89 11.86 Total Risk-Based Capital(3) 14.13 13.89 13.67 14.68 14.05 Common equity tier 1 Risk-Based Capital(3) 11.69 11.42 11.20 11.39 11.35 Stockholders’ equity / total assets 11.36 11.19 11.29 11.37 11.40 Net interest margin 3.26 3.36 3.35 3.40 3.44 Efficiency ratio(1) 47.74 46.83 46.95 45.79 45.40 Equity and share related:Common stockholders' equity$ 9,476,770 $ 9,289,670 $ 9,208,257 $ 9,178,698 $ 9,053,638 Book value per common share 58.49 57.33 57.12 55.69 54.19 Tangible book value per common share (1) 38.81 37.59 37.20 36.42 35.13 Common stock closing price 76.42 69.42 62.94 59.44 54.60 Dividends and equivalents declared per common share 0.40 0.40 0.40 0.40 0.40 Common shares outstanding 162,034 162,049 161,216 164,817 167,083 Weighted-average common shares outstanding - basic 159,989 159,534 160,261 164,138 165,884 Weighted-average common shares - diluted 160,183 159,850 160,597 164,456 166,131 (1)See "Non-GAAP to GAAP Reconciliations" section beginning on page 12.(2)Total revenue reflects the sum of Net interest income and Non-interest income.(3)Presented as preliminary for June 30, 2026, and actual for the remaining periods. WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Balance Sheets (In thousands)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Assets:Cash and due from banks$ 375,357 $ 353,234 $ 370,748 $ 498,801 $ 425,349 Interest-bearing deposits 2,347,070 2,506,930 2,078,777 2,563,680 2,568,570 Investment securities:Available-for-sale 10,600,328 10,581,263 10,009,500 9,932,344 9,620,354 Held-to-maturity, net 7,694,979 7,838,979 7,969,575 8,077,505 8,192,720 Total investment securities, net 18,295,307 18,420,242 17,979,075 18,009,849 17,813,074 Loans held for sale 13,189 14,478 14,886 75,386 278,409 Loans and leases:Commercial 23,738,961 23,288,371 22,895,350 21,912,809 21,293,103 Commercial real estate 22,793,088 22,569,080 22,334,846 21,911,298 21,358,775 Residential mortgages 9,600,445 9,600,026 9,599,577 9,509,142 9,332,413 Consumer 1,736,184 1,791,065 1,767,337 1,718,832 1,687,668 Total loans and leases 57,868,678 57,248,542 56,597,110 55,052,081 53,671,959 Allowance for credit losses on loans and leases (723,846) (733,434) (719,411) (727,897) (722,046) Total loans and leases, net 57,144,832 56,515,108 55,877,699 54,324,184 52,949,913 Federal Home Loan Bank and Federal Reserve Bank stock 388,374 431,395 356,411 340,231 370,272 Deferred tax assets, net 225,133 186,604 195,740 220,972 252,442 Premises and equipment, net 429,266 428,182 432,035 427,215 422,774 Goodwill and other intangible assets, net 3,188,976 3,197,981 3,210,756 3,175,747 3,184,039 Cash surrender value of life insurance policies 1,300,458 1,292,770 1,271,457 1,266,491 1,262,311 Accrued interest receivable and other assets 2,240,677 2,237,664 2,286,079 2,290,096 2,387,117 Total assets$ 85,948,639 $ 85,584,588 $ 84,073,663 $ 83,192,652 $ 81,914,270 Liabilities and Stockholders' Equity:Deposits:Demand$ 9,999,855 $ 9,847,077 $ 10,082,854 $ 10,491,975 $ 10,345,761 Interest-bearing checking 12,415,546 11,932,682 10,760,496 10,723,584 9,933,392 Health savings accounts 9,252,869 9,446,895 9,184,452 9,135,425 9,064,935 Money market 23,549,222 24,332,087 23,196,747 23,188,134 21,679,493 Savings 6,703,712 6,841,135 6,964,946 7,060,713 7,370,959 Certificates of deposit 6,165,975 5,848,150 6,078,549 6,202,906 6,069,447 Brokered certificates of deposit 2,196,274 791,690 2,491,769 1,372,907 1,850,438 Total deposits 70,283,453 69,039,716 68,759,813 68,175,644 66,314,425 Securities sold under agreements to repurchase 73,395 69,756 596,738 101,717 372,806 Federal Home Loan Bank advances 3,661,246 4,810,619 2,980,718 2,560,817 3,339,914 Long-term debt 737,171 738,312 739,454 1,249,612 905,634 Accrued expenses and other liabilities 1,432,625 1,352,536 1,504,704 1,642,185 1,643,874 Total liabilities 76,187,890 76,010,939 74,581,427 73,729,975 72,576,653 Preferred stock 283,979 283,979 283,979 283,979 283,979 Common stockholders' equity 9,476,770 9,289,670 9,208,257 9,178,698 9,053,638 Total stockholders’ equity 9,760,749 9,573,649 9,492,236 9,462,677 9,337,617 Total liabilities and stockholders' equity$ 85,948,639 $ 85,584,588 $ 84,073,663 $ 83,192,652 $ 81,914,270 WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of IncomeThree Months Ended(In thousands, except per share data)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Interest Income:Interest and fees on loans and leases$ 784,854 $ 776,610 $ 793,570 $ 794,668 $ 775,203 Interest on investment securities 195,352 193,100 200,024 201,321 197,766 Loans held for sale 2 18 205 3,988 7 Other interest and dividends 33,168 24,551 25,333 28,325 27,611 Total interest income 1,013,376 994,279 1,019,132 1,028,302 1,000,587 Interest Expense:Deposits 326,869 316,624 344,078 355,504 339,738 Borrowings 53,763 43,252 42,201 41,131 39,667 Total interest expense 380,632 359,876 386,279 396,635 379,405 Net interest income 632,744 634,403 632,853 631,667 621,182 Provision for credit losses 31,500 54,000 42,000 44,000 46,500 Net interest income after provision for credit losses 601,244 580,403 590,853 587,667 574,682 Non-interest Income:Deposit service fees 42,256 41,515 38,486 39,576 40,934 Loan and lease related fees 20,570 15,414 19,010 16,404 17,657 Wealth and investment services 7,526 7,209 7,775 7,640 7,779 Cash surrender value of life insurance policies 11,249 8,644 8,520 7,535 9,172 Other income 25,646 28,681 39,559 29,751 19,115 Total non-interest income 107,247 101,463 113,350 100,906 94,657 Non-interest Expense:Compensation and benefits 224,314 222,906 214,137 209,036 199,930 Occupancy 19,749 19,486 19,359 19,003 19,337 Technology and equipment 50,504 49,631 49,443 47,520 45,932 Intangible assets amortization 9,005 9,186 9,008 8,966 9,093 Marketing 5,203 4,699 6,827 4,953 5,171 Professional and outside services 21,146 22,542 21,767 17,815 18,394 Deposit insurance 18,185 16,300 3,979 15,621 15,061 Other expense 36,856 34,359 58,717 33,755 32,796 Total non-interest expense 384,962 379,109 383,237 356,669 345,714 Income before income taxes 323,529 302,757 320,966 331,904 323,625 Income tax expense 66,740 56,526 65,146 70,687 64,777 Net income 256,789 246,231 255,820 261,217 258,848 Preferred stock dividends (4,162) (4,163) (4,163) (4,162) (4,162) Income allocated to participating securities (3,185) (2,794) (2,956) (3,004) (2,991) Net income applicable to common stockholders$ 249,442 $ 239,274 $ 248,701 $ 254,051 $ 251,695 Weighted-average common shares outstanding - basic 159,989 159,534 160,261 164,138 165,884 Weighted-average common shares - diluted 160,183 159,850 160,597 164,456 166,131 Earnings per Common Share:Basic$ 1.56 $ 1.50 $ 1.55 $ 1.55 $ 1.52 Diluted 1.56 1.50 1.55 1.54 1.52 WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis Three Months Ended June 30, 2026 2025 (Dollars in thousands)Average BalanceInterest Income/ExpenseAverage Yield/RateAverage BalanceInterest Income/ExpenseAverage Yield/RateAssets:Interest-earning assets:Loans and leases$ 57,557,975 $ 798,650 5.50 % $ 53,277,897 $ 786,808 5.85 % Investment securities 18,821,677 198,182 4.21 18,225,632 200,031 4.39 Federal Home Loan and Federal Reserve Bank stock 429,937 5,283 4.93 346,514 4,243 4.91 Interest-bearing deposits 3,024,245 27,885 3.65 2,096,578 23,368 4.41 Loans held for sale 12,939 2 0.07 58,024 7 0.04 Total interest-earning assets 79,846,773 $ 1,030,002 5.12 % 74,004,645 $ 1,014,457 5.44 % Non-interest-earning assets 6,514,306 6,513,526 Total assets$ 86,361,079 $ 80,518,171 Liabilities and Stockholders' Equity:Interest-bearing liabilities:Demand$ 9,962,207 $ - - % $ 10,109,928 $ - - % Interest-bearing checking 12,116,284 53,150 1.76 9,772,340 42,390 1.74 Health savings accounts 9,367,769 3,966 0.17 9,137,704 3,635 0.16 Money market 23,954,940 184,047 3.08 21,645,531 190,853 3.54 Savings 6,755,888 23,292 1.38 7,462,151 31,624 1.70 Certificates of deposit 6,015,621 46,584 3.11 6,061,399 51,873 3.43 Brokered certificates of deposits 1,624,580 15,830 3.91 1,774,379 19,363 4.38 Total deposits 69,797,289 326,869 1.88 65,963,432 339,738 2.07 Securities sold under agreements to repurchase 68,416 20 0.12 111,005 218 0.78 Federal Home Loan Bank advances 4,683,241 45,400 3.84 2,650,111 29,825 4.45 Long-term debt 722,347 8,343 4.62 885,773 9,624 4.35 Total borrowings 5,474,004 53,763 3.89 3,646,889 39,667 4.31 Total deposits and interest-bearing liabilities 75,271,293 $ 380,632 2.02 % 69,610,321 $ 379,405 2.18 % Non-interest-bearing liabilities 1,391,470 1,613,827 Total liabilities 76,662,763 71,224,148 Preferred stock 283,979 283,979 Common stockholders' equity 9,414,337 9,010,044 Total stockholders' equity 9,698,316 9,294,023 Total liabilities and stockholders' equity$ 86,361,079 $ 80,518,171 Tax-equivalent net interest income 649,370 635,052 Less: Tax-equivalent adjustments (16,626) (13,870) Net interest income$ 632,744 $ 621,182 Net interest margin 3.26 % 3.44 % WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (In thousands)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Loans and leases:Commercial non-mortgage$ 22,702,138 $ 22,169,383 $ 21,664,119 $ 20,654,331 $ 19,943,097 Asset-based lending 1,036,823 1,118,988 1,231,231 1,258,478 1,350,006 Commercial real estate 22,793,088 22,569,080 22,334,846 21,911,298 21,358,775 Residential mortgages 9,600,445 9,600,026 9,599,577 9,509,142 9,332,413 Consumer 1,736,184 1,791,065 1,767,337 1,718,832 1,687,668 Total loans and leases 57,868,678 57,248,542 56,597,110 55,052,081 53,671,959 Allowance for credit losses on loans and leases (723,846) (733,434) (719,411) (727,897) (722,046) Total loans and leases, net$ 57,144,832 $ 56,515,108 $ 55,877,699 $ 54,324,184 $ 52,949,913 Average loans and leases:Commercial non-mortgage$ 22,464,776 $ 21,947,141 $ 21,244,671 $ 20,451,639 $ 19,703,434 Asset-based lending 1,083,842 1,171,324 1,259,776 1,289,208 1,360,288 Commercial real estate 22,623,171 22,571,488 22,082,606 21,508,546 21,302,161 Residential mortgages 9,617,402 9,634,148 9,584,853 9,416,499 9,228,988 Consumer 1,768,784 1,781,991 1,751,232 1,707,068 1,683,026 Total average loans and leases$ 57,557,975 $ 57,106,092 $ 55,923,138 $ 54,372,960 $ 53,277,897 WEBSTER FINANCIAL CORPORATION Five Quarter Non-performing Assets and Past Due Loans and Leases (In thousands)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Non-performing loans and leases:Commercial non-mortgage$ 180,513 $ 193,936 $ 174,073 $ 223,398 $ 231,458 Asset-based lending 34,342 60,471 66,911 58,797 44,405 Commercial real estate 176,010 231,353 224,623 227,118 224,554 Residential mortgages 18,974 20,127 17,889 16,843 15,748 Consumer 19,184 16,662 17,188 17,772 18,357 Total non-performing loans and leases$ 429,023 $ 522,549 $ 500,684 $ 543,928 $ 534,522 Other real estate owned and repossessed assets:Commercial non-mortgage$ 566 $ 1,284 $ 1,082 $ 1,399 $ 2,528 Residential mortgages 195 195 - - - Consumer 390 390 390 - - Total other real estate owned and repossessed assets$ 1,151 $ 1,869 $ 1,472 $ 1,399 $ 2,528 Total non-performing assets$ 430,174 $ 524,418 $ 502,156 $ 545,327 $ 537,050 Past due 30-89 days:Commercial non-mortgage$ 8,926 $ 26,812 $ 16,428 $ 10,934 $ 16,338 Commercial real estate 71,734 89,105 24,962 27,812 16,241 Residential mortgages 25,054 21,790 15,194 17,000 12,664 Consumer 11,623 11,122 9,902 8,730 9,516 Total past due 30-89 days$ 117,337 $ 148,829 $ 66,486 $ 64,476 $ 54,759 Past due 90 days or more and accruing 3 9 - 1,152 - Total past due loans and leases$ 117,340 $ 148,838 $ 66,486 $ 65,628 $ 54,759 WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases Three Months Ended(In thousands)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025ACL on loans and leases, beginning balance$ 733,434 $ 719,411 $ 727,897 $ 722,046 $ 713,321 Provision 33,110 55,239 41,005 44,205 45,126 Charge-offs:Commercial portfolio 40,896 40,225 48,492 37,914 39,792 Consumer portfolio 4,098 3,997 2,994 2,034 1,446 Total charge-offs 44,994 44,222 51,486 39,948 41,238 Recoveries:Commercial portfolio 1,055 1,017 556 765 3,250 Consumer portfolio 1,241 1,989 1,439 829 1,587 Total recoveries 2,296 3,006 1,995 1,594 4,837 Total net charge-offs 42,698 41,216 49,491 38,354 36,401 ACL on loans and leases, ending balance$ 723,846 $ 733,434 $ 719,411 $ 727,897 $ 722,046 ACL on unfunded loan commitments$ 21,295 $ 22,879 $ 24,117 $ 23,117 $ 22,824 WEBSTER FINANCIAL CORPORATION Non-GAAP to GAAP Reconciliations Three Months Ended(In thousands, except ratio data)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Efficiency ratio:Non-interest expense$ 384,962 $ 379,109 $ 383,237 $ 356,669 $ 345,714 Less: Foreclosed property activity 34 43 (577) 1,535 541 Intangible assets amortization 9,005 9,186 9,008 8,966 9,093 Operating lease depreciation - - - 3 9 Charitable contribution to the Webster Foundation - - 20,000 - - Asset disposal and contract termination costs - - 6,966 - - Acquisition-related expenses(1) 8,725 9,145 1,129 - - Strategic restructuring costs(2) - 3,636 - - - FDIC special assessment - (684) (10,318) - - Adjusted non-interest expense$ 367,198 $ 357,783 $ 357,029 $ 346,165 $ 336,071 Net interest income$ 632,744 $ 634,403 $ 632,853 $ 631,667 $ 621,182 Add: Tax-equivalent adjustment 16,626 15,357 14,903 14,258 13,870 Non-interest income 107,247 101,463 113,350 100,906 94,657 Other income(3) 12,617 12,828 9,142 9,234 10,528 Less: Operating lease depreciation - - - 3 9 Gain on debt redemption - - 9,767 - - Adjusted income$ 769,234 $ 764,051 $ 760,481 $ 756,062 $ 740,228 Efficiency ratio 47.74 % 46.83 % 46.95 % 45.79 % 45.40 % Return on average tangible common stockholders’ equity:Net income$ 256,789 $ 246,231 $ 255,820 $ 261,217 $ 258,848 Less: Preferred stock dividends 4,162 4,163 4,163 4,162 4,162 Add: Intangible assets amortization, tax-effected 6,545 6,676 6,565 6,534 6,627 Adjusted net income$ 259,172 $ 248,744 $ 258,222 $ 263,589 $ 261,313 Adjusted net income, annualized basis$ 1,036,688 $ 994,976 $ 1,032,888 $ 1,054,356 $ 1,045,252 Average stockholders' equity$ 9,698,316 $ 9,638,238 $ 9,513,033 $ 9,440,148 $ 9,294,023 Less: Average preferred stock 283,979 283,979 283,979 283,979 283,979 Average goodwill and other intangible assets, net 3,194,100 3,203,998 3,190,386 3,180,111 3,188,946 Average tangible common stockholders' equity$ 6,220,237 $ 6,150,261 $ 6,038,668 $ 5,976,058 $ 5,821,098 Return on average tangible common stockholders' equity 16.67 % 16.18 % 17.10 % 17.64 % 17.96 % (1) Acquisition-related expenses reflect Transaction expenses for the three months ended June 30, 2026, and March 31, 2026, and SecureSave acquisition expenses for the three months ended December 31, 2025.(2)Strategic restructuring costs reflect severance charges.(3)Other income includes a tax-equivalent adjustment on income generated from low-income housing tax credit investments.(In thousands, except ratio and per share data)June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025Tangible equity ratio:Stockholders' equity$ 9,760,749 $ 9,573,649 $ 9,492,236 $ 9,462,677 $ 9,337,617 Less: Goodwill and other intangible assets, net 3,188,976 3,197,981 3,210,756 3,175,747 3,184,039 Tangible stockholders' equity$ 6,571,773 $ 6,375,668 $ 6,281,480 $ 6,286,930 $ 6,153,578 Total assets$ 85,948,639 $ 85,584,588 $ 84,073,663 $ 83,192,652 $ 81,914,270 Less: Goodwill and other intangible assets, net 3,188,976 3,197,981 3,210,756 3,175,747 3,184,039 Tangible assets$ 82,759,663 $ 82,386,607 $ 80,862,907 $ 80,016,905 $ 78,730,231 Tangible equity ratio: 7.94 % 7.74 % 7.77 % 7.86 % 7.82 % Tangible common equity ratio:Tangible stockholders' equity$ 6,571,773 $ 6,375,668 $ 6,281,480 $ 6,286,930 $ 6,153,578 Less: Preferred stock 283,979 283,979 283,979 283,979 283,979 Tangible common stockholders' equity$ 6,287,794 $ 6,091,689 $ 5,997,501 $ 6,002,951 $ 5,869,599 Tangible assets$ 82,759,663 $ 82,386,607 $ 80,862,907 $ 80,016,905 $ 78,730,231 Tangible common equity ratio: 7.60 % 7.39 % 7.42 % 7.50 % 7.46 % Tangible book value per common share:Tangible common stockholders' equity$ 6,287,794 $ 6,091,689 $ 5,997,501 $ 6,002,951 $ 5,869,599 Common shares outstanding 162,034 162,049 161,216 164,817 167,083 Tangible book value per common share$ 38.81 $ 37.59 $ 37.20 $ 36.42 $ 35.13 Core deposits:Total deposits$ 70,283,453 $ 69,039,716 $ 68,759,813 $ 68,175,644 $ 66,314,425 Less: Certificates of deposit 6,165,975 5,848,150 6,078,549 6,202,906 6,069,447 Brokered certificates of deposit 2,196,274 791,690 2,491,769 1,372,907 1,850,438 Core deposits$ 61,921,204 $ 62,399,876 $ 60,189,495 $ 60,599,831 $ 58,394,540 WEBSTER FINANCIAL CORPORATION Non-GAAP to GAAP Reconciliations (In thousands)Three Months Ended June 30, 2026Six Months Ended June 30, 2026Adjusted return on average assets:Net income$ 256,789 $ 503,020 Add: Transaction expenses, tax-effected 6,448 15,217 Strategic restructuring costs, tax-effected(1) - 2,643 FDIC special assessment, tax-effected - (497) Adjusted net income$ 263,237 $ 520,383 Adjusted net income, annualized basis$ 1,052,948 $ 1,040,766 Average assets$ 86,361,079 $ 85,732,388 Adjusted return on average assets 1.22 % 1.21 % Adjusted return on average tangible common stockholders' equity:Net income$ 256,789 $ 503,020 Less: Preferred stock dividends 4,162 8,325 Add: Intangible assets amortization, tax-effected 6,545 13,221 Transaction expenses, tax effected 6,448 15,217 Strategic restructuring costs, tax-effected(1) - 2,643 FDIC special assessment, tax-effected - (497) Adjusted net income$ 265,620 $ 525,279 Adjusted net income, annualized basis$ 1,062,480 $ 1,050,558 Average stockholders' equity$ 9,698,316 $ 9,668,443 Less: Average preferred stock 283,979 283,979 Average goodwill and other intangible assets, net 3,194,100 3,199,022 Average tangible common stockholders' equity$ 6,220,237 $ 6,185,442 Adjusted return on average tangible common stockholders' equity 17.08 % 16.98 % GAAP to adjusted reconciliation:Three Months Ended June 30, 2026(In thousands, except per share data)Pre-Tax IncomeIncome Applicable to Common StockholdersDiluted EPSReported (GAAP)$ 323,529 $ 249,442 $ 1.56 Transaction expenses 8,725 6,448 0.04 Adjusted (non-GAAP)$ 332,254 $ 255,890 $ 1.60 Six Months Ended June 30, 2026Pre-Tax IncomeIncome Applicable to Common StockholdersDiluted EPSReported (GAAP)$ 626,286 $ 488,721 $ 3.05 Transaction expenses 17,870 15,217 0.09 Strategic restructuring costs(1) 3,636 2,643 0.02 FDIC special assessment (684) (497) — Adjusted (non-GAAP)$ 647,108 $ 506,084 $ 3.16 (1)Strategic restructuring costs reflect severance charges. Source: Webster Financial Corporation