Webster Financial (WBS) Goldman Sachs U.S. Financial Services Conference summary

Business overview and competitive positioning

• Operates an $83 billion bank with a Northeast footprint and national businesses in lending and deposits.

• Competitive advantage stems from a diversified funding base, including $10 billion in low-cost, long-duration deposits.

• Healthcare Financial Services, including HSA Bank and Ametros, provide significant low-cost deposits and fee income.

• Focus on cross-selling traditional banking products to 3.5 million HSA account holders.

2025 performance and financial highlights

• Delivered on financial performance targets despite a volatile environment.

• Achieved above-market loan and deposit growth, with robust loan growth expected to reach 7% for the year.

• Credit metrics remain in line with peers, with stabilization after challenges in office and healthcare portfolios.

• Continued investment in technology and organizational resiliency.

Net interest margin (NIM) and balance sheet management

• NIM faces pressure from seasonal outflows, new debt issuance, and higher-cost funding sources.

• Loan growth outpaces market, funded by higher-cost deposits, impacting NIM.

• Shifted to a more neutral interest rate position through balance sheet restructuring and swaps.