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 STAMFORD, Conn.--( BUSINESS WIRE)--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 $1.60 1 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:

“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:

Provision for credit losses:

Non-interest income:

Non-interest expense:

Income taxes:

Investment securities:

Loans and leases:

Asset quality:

Deposits and borrowings:

Capital:

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

256,789

246,231

255,820

261,217

258,848

249,442

239,274

248,701

254,051

251,695

1.56

1.50

1.55

1.54

1.52

1.19

1.16

1.23

1.27

1.29

16.67

16.18

17.10

17.64

17.96

10.73

10.35

10.91

11.23

11.31

14.49

13.79

15.19

13.77

13.22

723,846

733,434

719,411

727,897

722,046

430,174

524,418

502,156

545,327

537,050

1.25

1.28

1.27

1.32

1.35

0.30

0.29

0.35

0.28

0.27

0.74

0.91

0.88

0.99

1.00

0.74

0.92

0.89

0.99

1.00

168.72

140.36

143.69

133.82

135.08

7.94

7.74

7.77

7.86

7.82

7.60

7.39

7.42

7.50

7.46

12.17

11.91

11.69

11.89

11.86

14.13

13.89

13.67

14.68

14.05

11.69

11.42

11.20

11.39

11.35

11.36

11.19

11.29

11.37

11.40

3.26

3.36

3.35

3.40

3.44

47.74

46.83

46.95

45.79

45.40

9,476,770

9,289,670

9,208,257

9,178,698

9,053,638

58.49

57.33

57.12

55.69

54.19

38.81

37.59

37.20

36.42

35.13

76.42

69.42

62.94

59.44

54.60

0.40

162,034

162,049

161,216

164,817

167,083

159,989

159,534

160,261

164,138

165,884

160,183

159,850

160,597

164,456

166,131

WEBSTER FINANCIAL CORPORATION

Five Quarter Consolidated Balance Sheets

375,357

353,234

370,748

498,801

425,349

2,347,070

2,506,930

2,078,777

2,563,680

2,568,570

10,600,328

10,581,263

10,009,500

9,932,344

9,620,354

7,694,979

7,838,979

7,969,575

8,077,505

8,192,720

18,295,307

18,420,242

17,979,075

18,009,849

17,813,074

13,189

14,478

14,886

75,386

278,409

23,738,961

23,288,371

22,895,350

21,912,809

21,293,103

22,793,088

22,569,080

22,334,846

21,911,298

21,358,775

9,600,445

9,600,026

9,599,577

9,509,142

9,332,413

1,736,184

1,791,065

1,767,337

1,718,832

1,687,668

57,868,678

57,248,542

56,597,110

55,052,081

53,671,959

(723,846)

(733,434)

(719,411)

(727,897)

(722,046)

57,144,832

56,515,108

55,877,699

54,324,184

52,949,913

388,374

431,395

356,411

340,231

370,272

225,133

186,604

195,740

220,972

252,442

429,266

428,182

432,035

427,215

422,774

3,188,976

3,197,981

3,210,756

3,175,747

3,184,039

1,300,458

1,292,770

1,271,457

1,266,491

1,262,311

2,240,677

2,237,664

2,286,079

2,290,096

2,387,117

85,948,639

85,584,588

84,073,663

83,192,652

81,914,270

9,999,855

9,847,077

10,082,854

10,491,975

10,345,761

12,415,546

11,932,682

10,760,496

10,723,584

9,933,392

9,252,869

9,446,895

9,184,452

9,135,425

9,064,935

23,549,222

24,332,087

23,196,747

23,188,134

21,679,493

6,703,712

6,841,135

6,964,946

7,060,713

7,370,959

6,165,975

5,848,150

6,078,549

6,202,906

6,069,447

2,196,274

791,690

2,491,769

1,372,907

1,850,438

70,283,453

69,039,716

68,759,813

68,175,644

66,314,425

73,395

69,756

596,738

101,717

372,806

3,661,246

4,810,619

2,980,718

2,560,817

3,339,914

737,171

738,312

739,454

1,249,612

905,634

1,432,625

1,352,536

1,504,704

1,642,185

1,643,874

76,187,890

76,010,939

74,581,427

73,729,975

72,576,653

283,979

9,476,770

9,289,670

9,208,257

9,178,698

9,053,638

9,760,749

9,573,649

9,492,236

9,462,677

9,337,617

85,948,639

85,584,588

84,073,663

83,192,652

81,914,270

784,854

776,610

793,570

794,668

775,203

195,352

193,100

200,024

201,321

197,766

205

3,988

33,168

24,551

25,333

28,325

27,611

1,013,376

994,279

1,019,132

1,028,302

1,000,587

326,869

316,624

344,078

355,504

339,738

53,763

43,252

42,201

41,131

39,667

380,632

359,876

386,279

396,635

379,405

632,744

634,403

632,853

631,667

621,182

31,500

54,000

42,000

44,000

46,500

601,244

580,403

590,853

587,667

574,682

42,256

41,515

38,486

39,576

40,934

20,570

15,414

19,010

16,404

17,657

7,526

7,209

7,775

7,640

7,779

11,249

8,644

8,520

7,535

9,172

25,646

28,681

39,559

29,751

19,115

107,247

101,463

113,350

100,906

94,657

224,314

222,906

214,137

209,036

199,930

19,749

19,486

19,359

19,003

19,337

50,504

49,631

49,443

47,520

45,932

9,005

9,186

9,008

8,966

9,093

5,203

4,699

6,827

4,953

5,171

21,146

22,542

21,767

17,815

18,394

18,185

16,300

3,979

15,621

15,061

36,856

34,359

58,717

33,755

32,796

384,962

379,109

383,237

356,669

345,714

323,529

302,757

320,966

331,904

323,625

66,740

56,526

65,146

70,687

64,777

256,789

246,231

255,820

261,217

258,848

(4,162)

(4,163)

(4,162)

(3,185)

(2,794)

(2,956)

(3,004)

(2,991)

249,442

239,274

248,701

254,051

251,695

159,989

159,534

160,261

164,138

165,884

160,183

159,850

160,597

164,456

166,131

1.56

1.50

1.55

1.52

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

2026

2025

57,557,975

798,650

5.50

53,277,897

786,808

5.85

18,821,677

198,182

4.21

18,225,632

200,031

4.39

429,937

5,283

4.93

346,514

4,243

4.91

3,024,245

27,885

3.65

2,096,578

23,368

4.41

12,939

0.07

58,024

0.04

79,846,773

1,030,002

5.12

74,004,645

1,014,457

5.44

6,514,306

6,513,526

86,361,079

80,518,171

9,962,207

10,109,928

12,116,284

53,150

1.76

9,772,340

42,390

1.74

9,367,769

3,966

0.17

9,137,704

3,635

0.16

23,954,940

184,047

3.08

21,645,531

190,853

3.54

6,755,888

23,292

1.38

7,462,151

31,624

1.70

6,015,621

46,584

3.11

6,061,399

51,873

3.43

1,624,580

15,830

3.91

1,774,379

19,363

4.38

69,797,289

326,869

1.88

65,963,432

339,738

2.07

68,416

0.12

111,005

218

0.78

4,683,241

45,400

3.84

2,650,111

29,825

4.45

722,347

8,343

4.62

885,773

9,624

4.35

5,474,004

53,763

3.89

3,646,889

39,667

4.31

75,271,293

380,632

2.02

69,610,321

379,405

2.18

1,391,470

1,613,827

76,662,763

71,224,148

283,979

9,414,337

9,010,044

9,698,316

9,294,023

86,361,079

80,518,171

649,370

635,052

(16,626)

(13,870)

632,744

621,182

3.26

3.44

WEBSTER FINANCIAL CORPORATION

Five Quarter Loans and Leases

22,702,138

22,169,383

21,664,119

20,654,331

19,943,097

1,036,823

1,118,988

1,231,231

1,258,478

1,350,006

22,793,088

22,569,080

22,334,846

21,911,298

21,358,775

9,600,445

9,600,026

9,599,577

9,509,142

9,332,413

1,736,184

1,791,065

1,767,337

1,718,832

1,687,668

57,868,678

57,248,542

56,597,110

55,052,081

53,671,959

(723,846)

(733,434)

(719,411)

(727,897)

(722,046)

57,144,832

56,515,108

55,877,699

54,324,184

52,949,913

22,464,776

21,947,141

21,244,671

20,451,639

19,703,434

1,083,842

1,171,324

1,259,776

1,289,208

1,360,288

22,623,171

22,571,488

22,082,606

21,508,546

21,302,161

9,617,402

9,634,148

9,584,853

9,416,499

9,228,988

1,768,784

1,781,991

1,751,232

1,707,068

1,683,026

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

180,513

193,936

174,073

223,398

231,458

34,342

60,471

66,911

58,797

44,405

176,010

231,353

224,623

227,118

224,554

18,974

20,127

17,889

16,843

15,748

19,184

16,662

17,188

17,772

18,357

429,023

522,549

500,684

543,928

534,522

566

1,284

1,082

1,399

2,528

195

390

1,151

1,869

1,472

1,399

2,528

430,174

524,418

502,156

545,327

537,050

8,926

26,812

16,428

10,934

16,338

71,734

89,105

24,962

27,812

16,241

25,054

21,790

15,194

17,000

12,664

11,623

11,122

9,902

8,730

9,516

117,337

148,829

66,486

64,476

54,759

1,152

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

733,434

719,411

727,897

722,046

713,321

33,110

55,239

41,005

44,205

45,126

40,896

40,225

48,492

37,914

39,792

4,098

3,997

2,994

2,034

1,446

44,994

44,222

51,486

39,948

41,238

1,055

1,017

556

765

3,250

1,241

1,989

1,439

829

1,587

2,296

3,006

1,995

1,594

4,837

42,698

41,216

49,491

38,354

36,401

723,846

733,434

719,411

727,897

722,046

21,295

22,879

24,117

23,117

22,824

WEBSTER FINANCIAL CORPORATION

Non-GAAP to GAAP Reconciliations

384,962

379,109

383,237

356,669

345,714

(577)

1,535

541

9,005

9,186

9,008

8,966

9,093

20,000

6,966

8,725

9,145

1,129

3,636

(684)

(10,318)

367,198

357,783

357,029

346,165

336,071

632,744

634,403

632,853

631,667

621,182

16,626

15,357

14,903

14,258

13,870

107,247

101,463

113,350

100,906

94,657

12,617

12,828

9,142

9,234

10,528

9,767

769,234

764,051

760,481

756,062

740,228

47.74

46.83

46.95

45.79

45.40

256,789

246,231

255,820

261,217

258,848

4,162

4,163

4,162

6,545

6,676

6,565

6,534

6,627

259,172

248,744

258,222

263,589

261,313

1,036,688

994,976

1,032,888

1,054,356

1,045,252

9,698,316

9,638,238

9,513,033

9,440,148

9,294,023

283,979

3,194,100

3,203,998

3,190,386

3,180,111

3,188,946

6,220,237

6,150,261

6,038,668

5,976,058

5,821,098

16.67

16.18

17.10

17.64

17.96

9,760,749

9,573,649

9,492,236

9,462,677

9,337,617

3,188,976

3,197,981

3,210,756

3,175,747

3,184,039

6,571,773

6,375,668

6,281,480

6,286,930

6,153,578

85,948,639

85,584,588

84,073,663

83,192,652

81,914,270

3,188,976

3,197,981

3,210,756

3,175,747

3,184,039

82,759,663

82,386,607

80,862,907

80,016,905

78,730,231

7.94

7.74

7.77

7.86

7.82

6,571,773

6,375,668

6,281,480

6,286,930

6,153,578

283,979

6,287,794

6,091,689

5,997,501

6,002,951

5,869,599

82,759,663

82,386,607

80,862,907

80,016,905

78,730,231

7.60

7.39

7.42

7.50

7.46

6,287,794

6,091,689

5,997,501

6,002,951

5,869,599

162,034

162,049

161,216

164,817

167,083

38.81

37.59

37.20

36.42

35.13

70,283,453

69,039,716

68,759,813

68,175,644

66,314,425

6,165,975

5,848,150

6,078,549

6,202,906

6,069,447

2,196,274

791,690

2,491,769

1,372,907

1,850,438

61,921,204

62,399,876

60,189,495

60,599,831

58,394,540

WEBSTER FINANCIAL CORPORATION

Non-GAAP to GAAP Reconciliations

256,789

503,020

6,448

15,217

2,643

(497)

263,237

520,383

1,052,948

1,040,766

86,361,079

85,732,388

1.22

1.21

256,789

503,020

4,162

8,325

6,545

13,221

6,448

15,217

2,643

(497)

265,620

525,279

1,062,480

1,050,558

9,698,316

9,668,443

283,979

3,194,100

3,199,022

6,220,237

6,185,442

17.08

16.98

323,529

249,442

1.56

8,725

6,448

0.04

332,254

255,890

1.60

626,286

488,721

3.05

17,870

15,217

0.09

3,636

2,643

0.02

(684)

(497)

—

647,108

506,084

3.16