Webster Financial (WBS) investor relations material

Executive summary

• Total consolidated assets reached $85.6 billion at March 31, 2026, up 1.8% from year-end 2025, driven by increases in loans, investment securities, and cash balances.

• Net income for Q1 2026 was $246.2 million, up 8.5% year-over-year, with diluted EPS of $1.50 compared to $1.30 in Q1 2025.

• Adjusted EPS was $1.57, excluding transaction expenses, strategic restructuring costs, and an FDIC special assessment benefit.

• Banco Santander announced a $12.3 billion acquisition, expected to close in the second half of 2026, pending regulatory and shareholder approvals.

• The company completed the SecureSave acquisition and recorded a measurement-period adjustment to goodwill in Q1 2026.

Financial highlights

• Net interest income rose 3.6% year-over-year to $634.4 million, driven by higher average loan and deposit balances.

• Net interest margin declined to 3.36% from 3.48% due to a lower interest rate environment.

• Provision for credit losses decreased 30.3% to $54.0 million, reflecting lower charge-offs and favorable risk rating migration.

• Non-interest income increased 9.6% to $101.5 million, led by higher deposit service fees, client hedging, Ametros, and SecureSave acquisition.

• Non-interest expense rose 10.3% to $379.1 million, mainly from higher compensation, professional services, and other expenses.

• Efficiency ratio (non-GAAP) was 46.83%, up from 45.79% a year ago.

• Tangible book value per share increased to $37.59 from $33.97 year-over-year.

Outlook and guidance

• Management expects continued economic uncertainty due to inflation, interest rate volatility, and geopolitical tensions, but believes the company is well-positioned due to its capital strength and risk management.

• No forward-looking financial outlook provided due to pending Banco Santander transaction.

• The Banco Santander transaction is anticipated to close in the second half of 2026, with integration and synergy realization subject to regulatory and shareholder approvals.