Webster Financial (WBS) investor relations material

Executive summary

• Total consolidated assets reached $85.9 billion at June 30, 2026, up 2.2% from year-end 2025, driven by increases in loans, investment securities, and cash balances.

• Banco Santander agreed to acquire the company in a $12.3 billion cash and stock transaction, expected to close in the second half of 2026, with all major regulatory and shareholder approvals except the Federal Reserve secured.

• Net income for Q2 2026 was $256.8 million, with diluted EPS of $1.56, and net income for the first half of 2026 was $503.0 million.

• Net income applicable to common stockholders was $249.4 million, or $1.56 per diluted share, for Q2 2026, with adjusted EPS of $1.60, excluding transaction expenses.

• The company operates three main segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking.

Financial highlights

• Net interest income for Q2 2026 was $632.7 million, up 1.9% year-over-year; net interest margin declined to 3.26% from 3.44%.

• Non-interest income rose 13.3% year-over-year to $107.2 million, driven by higher other income and loan syndication fees.

• Non-interest expense increased 11.4% to $385.0 million, mainly due to higher compensation, technology costs, and $8.7 million in transaction expenses.

• Provision for credit losses decreased 32.3% to $31.5 million for the quarter, reflecting favorable risk migration and lower reserves.

• Revenue was $740.0 million for Q2 2026.

Outlook and guidance

• No forward-looking financial outlook will be provided due to the pending Banco Santander acquisition, which is expected to close in the second half of 2026, pending final regulatory approval.

• Management continues to monitor economic forecasts, capital position, and dividend policy, with quarterly dividends capped per the transaction agreement.