Fourth Quarter 2020

Earnings Conference Call

January 21, 2021

Fourth Quarter 2020 Highlights

Solid financial results

  • Strong loan originations
  • HSA Bank footings of $10.0 billion, an increase of 17.5% year-over-year
  • Stable net interest income and net interest margin
  • Favorable credit profile
  • Strong liquidity, capital, and reserve positions

Positioned for future growth through execution on strategic initiatives

  • Committed to achieving 8 to 10% expense run rate reduction by 4Q21
  • Reported results include $42.0 million ($31.2 million after-tax) of strategic initiative charges

Consistent with our mission, we continue to support our customers, communities, and employees through various pandemic related relief programs

Net Income

EPS

ROACE

ROATCE

Reported

$60.0

$0.64

7.51%

9.31%

Adjusted

$91.2

$0.99

11.54%

14.24%

Note: See non-GAAP reconciliations on pages 10, 11, and 40 through 42.

2

Loans & Deposits

($ in millions, end of period)

Total Loans: +8.0% YOY (+1.7% excl. PPP loans)

Total Deposits: +17.2% YOY

$21,852

$21,641

$20,037

$6,932

$6,741

$7,207

$1,354

$1,256

73%

68%

69%

67%

68%

64%

$12,830

$13,566

$13,644

4Q19

3Q20

4Q20

Consumer Loans

PPP Loans (all commercial)

Commercial Loans

Commercial Loans to Total Loans

Floating and Periodic to Total Loans*

Loan Portfolio Yield:

4.83%3.40%3.44%

$26,921

$27,335

$23,325

$6,976

$7,120

$6,416

$9,808

$9,528

$7,136

86%

81%

79%

58%

61%

62%

$9,773

$10,417

$10,407

4Q19

3Q20

4Q20

HSA

Transactional

Non Transactional

Loans to Deposits

Transactional & HSAs to Total Deposits

Deposit Cost:

0.56%

0.19%

0.13%

  • Floating loan rates reset in 1 month or less; periodic loans reset in greater than 1 month but before final maturity

3

Note: All loans are shown net of deferred fees (GAAP)

Commercial Banking

($ in millions)

Loans: +10.0% YOY (+6.5% excl. PPP loans)

$12,620

$12,649

$324

$320

$11,500

$344

$3,927

$3,861

$3,736

$439

$404

4.68%

3.24%

3.33%

$7,420

$7,930

$8,064

4Q19

3Q20

4Q20

C&I

PPP (all C&I)

Investor CRE

Private Banking Consumer Loans

Loan Portfolio Yield

Note: Beginning in 1Q20, segment net interest income was updated to reflect changes in

the funds transfer pricing methodology related to allocated capital. Prior periods were

restated to reflect the change.

4

Key Business Metrics

Increase / (Decrease)

4Q20

3Q20

4Q19

Loan Originations

$

1,231

$

291

$

(99)

Loan Fundings

$

825

$

280

$

(224)

Coupon on Fundings

3.79%

0.18%

(0.25%)

Deposits

$

5,957

$

(42)

$

1,575

AUM / AUA*

$

2,686

$

384

$

382

*AUM = Assets Under Management

AUA = Assets Under Administration

PPNR: 13.8% YOY

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Net interest income

$

112.3

$

4.9

$

12.1

Non-interest income

17.3

4.2

0.9

Operating revenue

$

129.6

$

9.1

$

13.0

Operating expenses

48.7

(1.1)

(3.2)

Pre-provision net revenue

$

80.9

$

8.0

$

9.8

HSA Bank

($ in millions)

Total Footings: +17.5% YOY

$9,973

$9,430

$8,487

$2,853

$2,454

$2,071

$419

$423

$594

$6,557$6,697

$5,822

4Q19

3Q20

4Q20

Linked Investments

Deposits - Third Party Administrator ("TPA")

Deposits - Core

Deposit Cost:

0.20%

0.12%

0.09%

Note: Beginning in 1Q20, segment net interest income was updated to reflect changes in the funds transfer pricing methodology related to allocated capital. Prior periods were restated to reflect the change.

Investments linked to third party administrator ("TPA") accounts were $129 million, $111

million, and $113 million, for 4Q20, 3Q20, and 4Q19, respectively.

Key Business Metrics

Increase / (Decrease)

4Q20

3Q20

4Q19

Core accounts ('000)

2,661

(13)

101

TPA accounts ('000)

292

(2)

(122)

Percent of unfunded accounts

5.79%

0.15%

0.00%

Footings per account

$

3,378

$

201

$

524

Deposits per account - core

$

2,517

$

64

$

243

Investments as % of total footings

28.61%

2.59%

4.21%

New accounts ('000)

107

(19)

(19)

PTNR / average account (annualized)

$

40.44

$

(2.66)

$

0.08

PTNR: (0.7)% YOY

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Net interest income

$

40.5

$

0.6

$

(1.5)

Interchange revenue

9.7

(0.1)

0.3

Account and other fees

14.4

(3.0)

0.8

Operating revenue

$

64.6

$

(2.5)

$

(0.4)

Operating expenses

34.8

0.0

0.2

Pre-tax net revenue

$

29.9

$

(2.5)

$

(0.2)

5

Community Banking

($ in millions)

Loans: +5.3% YOY (-4.7% excl. PPP loans)

$8,537

$9,232

$8,992

$1,708

$1,674

$1,719

$915

$852

4.16%

3.49%

3.46%

$6,863

$6,609

$6,421

4Q19

3Q20

4Q20

Personal Banking

PPP (all Business Banking)

Business Banking

Loan Portfolio Yield

Deposits: +13.8% YOY

$13,950

$14,258

$12,528

$3,779

$3,635

$2,768

0.66%

0.24%

0.16%

$9,760

$10,171

$10,623

4Q19

3Q20

4Q20

Personal Banking

Business Banking

Deposit Cost

Key Business Metrics

Increase / (Decrease)

4Q20

3Q20

4Q19

Loan originations - Mortgage & Consumer

$

623

$

(26)

$

62

Loan originations - Business Banking

$

76

$

(44)

$

(45)

Coupon on fundings

3.15%

(0.05%)

(0.97%)

Transaction deposits / total deposits

43.57%

0.58%

6.92%

Digitally active households / total households

51.20%

(0.08%)

2.13%

Self-service transactions / total transactions

75.57%

(0.67%)

4.62%

Assets under Administration

$

3,900

$

202

$

188

PPNR: 14.6% YOY

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Net interest income

$

110.4

$

2.2

$

8.3

Non-interest income

26.3

(2.7)

(1.8)

Operating revenue

$

136.7

$

(0.5)

$

6.5

Operating expenses

99.0

-

(1.7)

Pre-provision net revenue

$

37.7

$

(0.5)

$

4.8

Note: Beginning in 1Q20, segment net interest income was updated to reflect changes in

the funds transfer pricing methodology related to allocated capital. Prior periods were

6

restated to reflect the change.

COVID-19 Commercial Payment Deferrals by Sector

Loans with Payment Deferrals in our Most Impacted Sectors Declined 31%

($ in millions)

As of 9/30/2020

As of 12/31/2020

Payment

% of

Payment

% of

Portfolio

Deferrals

Portfolio

Portfolio

Deferrals

Portfolio

Most Impacted Sectors:

Restaurants

$

176

$

28

15.7%

$

150

$

11

7.4%

Hotel / Motel

127

28

21.8%

123

45

36.7%

Travel & Leisure

349

90

25.9%

337

63

18.6%

Oil and Gas

108

-

0.0%

77

-

0.2%

Retail

902

47

5.2%

835

19

2.3%

Transportation

357

15

4.1%

331

5

1.6%

Construction

380

2

0.6%

331

2

0.5%

Sub-Total - Most Impacted

$

2,400

$

209

8.7%

$

2,183

$

145

6.6%

All Other Sectors

$

11,195

$

178

1.6%

$

11,478

$

146

1.3%

Total Commercial Portfolio

$

13,595

$

387

2.8%

$

13,661

$

291

2.1%

Total commercial deferrals down $96 million or 25% from September 30, and now represent 2.1% of the portfolio

  • Deferrals in other commercial sectors dropped from 1.6% at September 30 to 1.3%

Note: Balances above exclude deferred fees and premiums/discounts.

7

Payment Deferrals by Loan Segment

Deferrals Have Declined 35% to $315 million (1.6% of the Portfolio)

($ in millions)

As of 9/30/2020

As of 12/31/2020

Payment

% of

Payment

% of

Line of Business

Portfolio

Deferrals

Portfolio

Portfolio

Deferrals

Portfolio

Sponsor & Specialty ¹

$

2,115

$

49

2.3%

$

2,267

$

38

1.7%

Middle Market ¹

2,734

118

4.3%

2,745

90

3.3%

Asset Based Lending ¹

886

12

1.3%

881

-

0.0%

Leveraged

1,439

55

3.8%

1,401

60

4.3%

Commercial Real Estate

3,938

78

2.0%

3,871

55

1.4%

Private Banking

201

1

0.6%

208

-

0.0%

Equipment Finance

598

17

2.8%

602

28

4.6%

1,683

57

3.4%

1,685

20

1.2%

Business Banking

Total - Commercial

$

13,595

$

387

2.8%

$

13,661

$

291

2.1%

Residential

$

4,853

$

83

1.7%

$

4,749

$

21

0.4%

Home Equity

$

1,852

$

12

0.6%

$

1,787

$

3

0.2%

Total Consumer

$

6,705

$

94

1.4%

$

6,536

$

24

0.4%

Total Bank ²

$

20,300

$

482

2.4%

$

20,197

$

315

1.6%

¹ Leveraged loans broken out separately

² Excludes PPP and Personal Lending loans, premiums/discounts, and deferred fees

CARES Act / Interagency Statement deferrals are included in the above amounts and declined 29% from September 30 ($201 million at December 31 and $283 million at September 30)

8

Average Balance Sheet

($ in millions)

Summary Average Balance Sheet

Increase / (Decrease)

4Q20

3Q20

4Q19

Securities

$

8,923

$

160

$

599

Commercial loans

14,901

34

2,266

Consumer loans

6,828

(176)

(346)

Total loans

$

21,729

$

(142)

$

1,920

Transactional Deposits

$

9,684

$

95

$

2,595

HSA Deposits

7,013

59

693

All Other Deposits

10,519

122

568

Total Deposits

$

27,216

$

276

$

3,855

Borrowings

$

1,955

$

(289)

$

(1,418)

Common equity

$

3,094

$

34

$

42

(At end of period)

Key Ratios:

Favorable / (Unfavorable)

Loans / total deposits

79.2%

200 bps

670 bps

Transactional & HSAs / total deposits

61.9%

60 bps

380 bps

Common Equity Tier 1 *

11.35%

12 bps

(21 bps)

Tangible common equity **

7.90%

15 bps

(49 bps)

Tangible book value/common share**

$

28.04

$

0.18

$

0.84

*Represents the estimated common equity tier 1 ("CET1") ratio for the current period inclusive of CECL regulatory capital transition provisions.

**See non-GAAP reconciliation on pages 40 through 42.

9

4Q20 Highlights

Average securities increased 1.8% LQ and 7.2% YOY

Average loans decreased 0.6% LQ and increased 9.7% YOY;

  1. average loans totaled $1.328 million in Q4, for an adjusted loan decrease of 0.6% LQ and growth of 3.0% YOY

Average deposits increased 1.0% LQ and 16.5% YOY

  • Transactional deposits increased 1.0% LQ and 36.6%
    YOY
  • HSA deposits increased $693 million or 11.0% YOY

Loan-to-deposit ratio improved to 79.2%

Strong liquidity resulted in a $289 million LQ reduction in borrowings and a borrowings-to-assets ratio of 5.2%

Capital ratios remain strong with CET1 in excess of well capitalized

  • Tangible common equity of $2.5 billion; Tier 1 risk-based capital of $2.7 billion

Tangible book value per common share increased 3.1% YOY

WBS 4Q20 Net Income | GAAP to Adjusted

($ in millions)

4Q20 Reconciliation

After

Pre-Tax

Tax

EPS

Reported (GAAP)

$

75.2

$

60.0

$

0.64

Severance

17.9

13.2

0.15

Facilities Optimization

14.5

10.7

0.12

Project Costs

5.5

4.0

0.04

Debt Prepayment Costs

4.1

3.3

0.04

Adjusted (non-GAAP)

$

117.2

$

91.2

$

0.99

Strategic initiative adjustments:

  • $42.0 million of pre-tax income
  • $31.2 million of after tax income
  • EPS of $0.35 per share

10

Income Statement | Reported to Adjusted

($ in millions, except EPS)

Reported to Adjusted Income Statement

Reported

Adjusted

Favorable / (Unfavorable)

4Q20

Adj's

4Q20

3Q20*

4Q19

Net interest income

$

216.9

$

3.7

$

220.6

$

1.3

$

(10.7)

Non-interest income

76.8

-

76.8

1.7

5.9

Total revenue

$

293.7

$

3.7

$

297.4

$

3.0

$

(4.8)

Non-interest expense

219.5

(38.3)

181.2

(2.0)

(1.5)

Pre-provision net revenue

$

74.2

$

42.0

$

116.2

$

1.0

$

(6.2)

Provision for credit losses

(1.0)

-

(1.0)

23.8

7.0

Pre-tax income

$

75.2

$

42.0

$

117.2

$

24.8

$

0.8

Income tax expense

15.1

10.8

$

25.9

$

(6.4)

$

0.1

Reported net income

$

60.0

$

31.2

$

91.2

$

18.3

$

0.7

Income available to common

$

57.7

$

31.0

$

88.7

$

21.8

$

0.6

Diluted earnings per share

$

0.64

$

0.35

$

0.99

$

0.24

$

0.03

Net interest margin

2.83%

0.05%

2.88%

(0 bps)

(39 bps)

Efficiency ratio**

60.27%

-

60.27%

(28 bps)

(175 bps)

Tax rate

20.1%

2.0%

22.1%

(100 bps)

20 bps

Key Observations

$88.7 million adjusted income available to common shareholders, $0.99 diluted earnings per share

Linked quarter:

Net interest income up 0.6% as a result of lower funding rates

Non-interest income up 2.2% driven by higher direct investment income and loan related fees partially offset by lower HSA fee income and mortgage banking activities

Non-interest expense up 1.1%

Provision for credit losses of $(1.0) million, down from $23.8 million in Q3, results in a coverage ratio of 1.76% excluding PPP loans

Year-over-year:

Net interest income down 4.6% as a result of lower market rates partially offset by growth in earning assets

Non-interest income up 8.3% driven by higher direct investment income, mortgage banking activities, and HSA fee income partially offset by lower deposit service fees

Non-interest expense up 0.9%

* 3Q20 results adjusted for a one-time expense of $4.8 million.

** See non-GAAP reconciliation on pages 40 through 42.

11

Quarterly Provision

($ in millions)

Allowance for Loan Losses

3Q Provision $23

4Q Provision $(1)

$359

$(11)

$0

$23

$370

$(9)

$0

$(1)

$359

1.80%

Coverage %1 1.75%11..75%80%1.76% 1.60%

1.33%

6/30/2020 3Q Net

Flat Loan

3Q Macro/

9/30/2020

4Q Net

Flat Loan

4Q Macro/ 12/31/2020

Charge-offs

Balances

Credit

Charge-offs

Balances

Credit

3Q Assumptions

4Q Assumptions

4Q vs 3Q

2020

2021

2022

2020

2021

2022

2020

2021

2022

Avg Unemployment

9.0%

8.8%

6.6%

8.2%

7.4%

6.2%

-0.8%

-1.4%

-0.4%

EOP Unemployment

9.5%

8.1%

5.7%

7.2%

7.2%

5.6%

-2.3%

-0.9%

-0.1%

Real GDP Growth%

-4.9%

2.6%

5.2%

-3.6%

4.1%

4.7%

1.3%

1.5%

-0.5%

1 CECL coverage ratio at 12/31/2020 and 9/30/2020 excludes $1.3 and $1.4 billion of PPP loans, respectively.

12

Key Asset Quality Metrics

($ in millions)

Nonperforming Loans, OREO, NPL Ratio

Net Charge-Offs

$167

$170

$157

$163

$168

$151

0.75%

0.78%

0.74%

4Q19

3Q20

4Q20

Nonperforming Loans

OREO/Repossessed

NPL Ratio

Commercial Classified Loans 1

$451

$481

$334

3.32%

3.52%

2.60%

4Q19

3Q20

4Q20

Commercial Classified Loans

% of Total Commercial Loans

1 Commercial classified loans as a % of total commercial loans at 12/31/2020 and

9/30/2020 excludes $1.3 and $1.4 billion of PPP loans, respectively.

13

$11.5

$9.4

$1.1

$6.1

$1.3

0.21%

0.17%

0.12%

$4.8

$11.5

$8.3

4Q19

3Q20

4Q20

Commercial

Consumer

Net Charge-off Ratio

Allowance for Credit Losses on Loans and Leases

$370

$359

$209

1.80%

1.76%

1.69%

1.66%

1.04%

4Q19

3Q20

4Q20

Allowance for Credit Losses on Loans & Leases

Allowance for Credit Losses on Loans & Leases Coverage Allowance Coverage excluding PPP Loans

Key Liquidity Metrics

($ in millions)

Diverse Deposit Gathering Capabilities

Additional Secured Borrowing Capacity

$26,921

$27,335

$23,325

$9,642

$9,374

$6,961

$9,948

$10,303

$10,841

$6,416

$6,976

$7,120

4Q19

3Q20

4Q20

HSA Deposits

Retail Deposits

Commercial Deposits

Total Loans

$11,734

$12,062

$9,045

$4,538

$4,789

$5,175

$2,690

$2,583

$932

$2,938

$4,506

$4,690

4Q19

3Q20

4Q20

FHLB

Federal Reserve

Unencumbered Securities

Wide array of sources provide a strong base for loan growth

  • Total deposit growth of $414 million in 4Q20, resulting in a 79.2% loan to deposit ratio
  • Secured borrowing capacity remains robust
  • Federal Reserve PPP Liquidity Facility remains fully available

Note: Borrowing capacity includes PPP loans that could be pledged to the PPP Liquidity Facility.

14

Capital Levels

At Dec 31,

At Sept 30,

At Dec 31,

Well

2020*

2020

2019

Capitalized

Common Equity Tier 1 Risk-Based Capital

11.35%

11.23%

11.56%

6.5%

Tangible Common Equity

7.90%

7.75%

8.39%

N/A

Tangible Equity

8.35%

8.19%

8.88%

N/A

Tier 1 Leverage

8.32%

8.24%

8.96%

5.0%

Tier 1 Risk-Based Capital

11.99%

11.88%

12.22%

8.0%

Total Risk-Based Capital

13.59%

13.47%

13.55%

10.0%

Excess Over

At Dec 31, 2020*

Well

($ in millions)

Capital*

Capitalized*

Common Equity Tier 1 Risk-Based Capital

$

2,543

$

1,086

Tier 1 Leverage

$

2,688

$

1,073

Tier 1 Risk-Based Capital

$

2,688

$

895

Total Risk-Based Capital

$

3,046

$

804

*Preliminary and represents the estimated ratios for the current period inclusive of CECL regulatory capital transition provisions.

15

Strategic Focus for Future Growth

Working Together to Achieve our Mission

To help individuals, families and businesses achieve their financial goals

Expand Commercial

Aggressively Grow

Strengthen Community

Banking

HSA Bank

Banking

Specialized C&I business to

Enhance distribution

Focus on core markets and

complement Sponsor and

channels and maximize

enhance digital channels

Commercial Real Estate

customer value

Supported by an Efficient and Scalable Operating Model

More customer-oriented ● Deeper expertise ● Collaborative culture

Simpler & more efficient ● Faster, more agile ● Strong risk management

Diverse, equitable and inclusive workplace ● Responsible corporate citizen

Positioned as a Leading Regional Bank in the Northeast

Delivering top-quartile performance in customer satisfaction, employee engagement

and shareholder value

Note: Estimates and other statements regarding future expense savings are forward-looking information. See page 43 for more information.

16

Significant Progress on our Initiatives

We have made significant progress on our targets and remain committed to our stated objectives

Banking Center

Consolidation /

Other Real Estate

  • In December, we announced the consolidation of 27 banking centers that will drive $15 million in annual run rate savings beginning in 3Q21

Simplify the

Organization

  • Organizational actions are underway and will begin delivering benefits in 2Q21

Process Optimization

    • Ancillary Spend Reduction
  • Increased discipline around third party spend, redesigning processes
  • Savings delivered throughout 2021

Growth drivers expected to deliver incremental revenue lift

Efficiency opportunities with anticipated run rate expense reduction of 8 - 10% of core non-interest expense

Note: Estimates and other statements regarding future expense savings are forward-looking information. See page 43 for more information.

17

2021 Strategic Expense Initiatives

($ in millions)

4Q21 Expense Walk

$178 ~$4 ~$(18)

~$164

3Q20 Efficiency

Investments in

Project Savings

4Q21

Ratio Cost Base*

Business

Forecast

Components of $18 Million 4Q21 Run

Rate Savings

Banking Center /

~25%

Other Real Estate

Organizational

~40%

Actions

Process Optimization &

~35%

Ancillary Spend

100%

Targeting 8 - 10% net reduction by 4Q21 through rationalizing our banking center network, consolidating corporate facilities, organizational actions, process optimization, and ancillary spend reduction

We continue to make strategic investments in the business to drive incremental revenue and digital capabilities

In total, the components of our strategic expense initiatives translate to ~$56 million in annualized run rate benefit

Note: Estimates and other statements regarding future expense savings are forward-looking information. See page 43 for more information.

*See non-GAAP reconciliation on page 40.

18

Support in Response to COVID-19

Employees

Provided a digital solution for performing daily health self- assessments for bankers working at a Webster location

Thoughtful and cautious reentry to workplace; in compliance with state guidelines, occupancy in buildings is less than 25%

75% of our bankers are currently working remotely

Extra cleaning and safety protocols put in place at our sites and banking centers

0% hardship loan program for employees aided 400+ bankers with $1.9MM in loans

No furloughs throughout 2020

Launched expanded recognition program

Learning and development teams swiftly converted professional development workshops to virtual formats

Consumers

24/7 Customer Care Center; mobile app and online banking

Enhanced lobby access Customer relief program:

  • Assisted 2,600 consumers with mortgage payment deferrals
  • Moratorium on holding residential foreclosure sales and vesting until March 1, 2021, unless property is vacant
  • Increased deposit limits; waived penalties for early CD withdrawals upon request; waived / reduced certain fees upon request;
  • Provided provisional credits to EIP recipients to offset negative account balances

Frontline Heroes program for essential healthcare workers / first responders

Proactively contacted consumer customers

Financial relief measures offered to HSA account holders

Businesses

Funded 11,000+ Paycheck Protection Program applications for nearly $1.5B in loans

This funding for business clients helped to save more than 110,000 jobs in the communities we serve

Participated in Main Street Lending Program

Proactively contacted commercial clients

  • Payment modifications (needs based / COVID related impact)

Participating in the next round of Paycheck Protection Program launched January 19, 2021

HSA Bank provided 36,000 employer groups with COVID-19 related guidance online and through webinars

Communities

Contributed nearly $2 million to nonprofit and community organizations in our footprint

Multiple cycles of targeted donations for urgent basic needs, human services, and disaster relief:

  • Feeding America
  • American Red Cross
  • United Way COVID Relief
  • Mental Health America, and Protect The Heroes

Ongoing funding to support virtual learning and volunteerism

Partnerships and funding focused on equity and economic inclusion:

  • YWCA of SE Wisconsin - Racial Equity Initiatives
  • Women's Business
    Development Council - Equity Match Program
  • Equal Justice Initiative
  • RE-CENTERRace & Equity in Education

Consistent with our long history of supporting our customers, communities and employees in times of need, Webster is

committed to providing financial flexibility to all that we serve

19

Supplemental Information

Pages 21 to 26 - Income Statement

Page 27 - Net Interest Margin - Linked Quarter

Page 28 - Interest Rate Risk 12 Month PPNR Sensitivity Trend Page 29 - Earning Asset and Funding Mix

Pages 30 to 31 - Investment Portfolio

Page 32 - Loan Originations and Mix

Pages 33 to 38 - Loan Segments Information

Page 39 - Deposit Mix and Rate

Page 40 to 42 - Non-GAAP

20

Full Year 2020 Highlights

($ in millions, unless noted)

Consolidated PPNR (20.4)%

$1,240.4

$1,176.7

$524.5

PPNR$417.7

PPNR

$716.0$759.0

2019

2020

Operating Revenue

Operating Expense

Net Interest Margin:

3.55%

3.00%

Earnings Per Share:

$4.06

$2.35

Note: See non-GAAP reconciliation on page 42.

Year Over Year

EPS of $2.35, -42.1% from prior year; EPS of $2.69 after adjusting for $38.8 million after tax strategic initiative costs Return on equity of 6.9%

Tangible book value per common share up 3.1% Full year efficiency ratio of 59.6%

Consolidated PPNR of $417.7 million decreased $106. million

  • Revenue of $1.2 billion down 5.1%
  • Expenses of $758.9 million up 6.0%

Loan growth of $1.6 billion and lower borrowings of $1.8 billion funded by deposit growth of $4.0 billion

21

Segment Results - Full Year

($ in millions, unless noted)

Commercial Banking

PPNR +17.7% YOY

$431.9

$482.2

$294.7

$250.3

PPNR

PPNR

$181.6

$187.5

2019

2020

Operating Revenue

Operating Expense

As of 4Q20

YOY

Loans ($B)

$12.6

10.0%

Deposits ($B)

$6.0

35.9%

Originations (12 mos.)

$4,294

6.1%

HSA Bank

PTNR (4.7)% YOY

$264.3

$263.2

$128.7

$122.6

PTNR

PTNR

$135.6

$140.6

2019

2020

Operating Revenue

Operating Expense

As of 4Q20

YOY

Total footings ($B)

$10.0

17.5%

Deposits ($B)

$7,120

11.0%

Accounts ('000)

2,953

-0.7%

Community Banking

PPNR +14.0% YOY*

$510.0

$529.3

$138.7

$121.6

PPNR

$388.4

PPNR

$390.6

2019

2020

Operating Revenue

Operating Expense

As of 4Q20

YOY

Loans ($B)

$9.0

5.3%

Deposits ($B)

$14.3

13.8%

Banking centers

155

-2

Expand

Aggressively Grow

Strengthen

Commercial Banking

HSA Bank

Community Banking

*GAAP figures. PPNR for full year 2019 is $123.4 million or +12.4% YOY after adjusting for a $1.7 million business

optimization expense .

PTNR - Pre-Tax Net Revenue

22

Income Statement

($ in millions, except EPS)

Summary Income Statement

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Net interest income

$

216.9

$

(2.4)

$

(14.4)

Non-interest income

76.8

1.7

5.9

Total revenue

$

293.7

$

(0.7)

$

(8.5)

Non-interest expense

219.5

(35.5)

(39.8)

Pre-provision net revenue

$

74.2

$

(36.2)

$

(48.2)

Provision for credit losses

(1.0)

23.8

7.0

Pre-tax income

$

75.2

$

(12.4)

$

(41.2)

Income available to common

$

57.7

$

(9.2)

$

(30.4)

Diluted earnings per share

$

0.64

$

(0.11)

$

(0.32)

Net interest margin

2.83%

(5 bps)

(44 bps)

Efficiency ratio*

60.27%

(28 bps)

(175 bps)

Tax rate

20.1%

80 bps

220 bps

4Q20 Highlights

$57.7 million income available to common shareholders, $0.64 diluted earnings per share

Net interest income down 6.2% YOY reflecting lower market rates, partially offset by growth in earning assets and lower funding costs

Non-interest income up 8.3% YOY driven by higher direct investment income, mortgage banking activities, and HSA fee income, partially offset by lower deposit service fees

Non-interest expense up 22.1% YOY reflecting expenses associated with strategic initiatives

Provision for credit losses of $(1.0) million, down from $23.8 million in Q3, results in a coverage ratio of 1.76% excluding PPP loans

*See non-GAAP reconciliation on pages 40 through 42.

23

Net Interest Income

($ in millions)

(6.2)% YOY

$231.3

$219.3

$216.9

3.98%

3.13%

3.08%

0.75%

0.27%

0.26%

4Q19

3Q20

4Q20

Net Interest Income

Interest-Earning Assets Yield

Interest-Bearing Liabilities Cost

NIM:

3.27%

2.88%

2.83%

Key Observations

NII: -$2.4 million (non-FTE) LQ

  • -$5.3million due to increased prepayments and premium amortization
  • -$3.7million due to borrowings and unwind costs of derivatives and balance decline
  • +$4.0 million due to deposit balance growth and cost
  • +$1.4 million due to securities balance changes
  • +$1.2 million due to loan yield and balance changes

NIM: -5 bps LQ

  • -5bps due to unwinding of term borrowings and related derivatives
  • -5bps due to loan and securities yields and balances
  • +5 bps due to deposit and borrowing cost and balances

NII: -$14.4 million (non-FTE) YOY

  • -$45.8million due to loan and securities balances and yields (1 month LIBOR down 164 bps)
  • +$22.9 million due to deposit balance growth and cost
  • +$4.5 million due to borrowings balance decline and cost
  • +$4.0 million due to other liabilities

NIM: -44 bps YOY

  • -103bps due to loan and securities yields and balances
  • +59 bps due to deposit and borrowing cost and balances

24

Non-Interest Income

($ in thousands)

Diverse Sources

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Deposit service fees

$

15,902

$

291

$

(2,968)

HSA fee income

24,104

(3,131)

1,145

Wealth & investment services

8,820

565

344

Loan related fees

9,095

2,527

391

Mortgage banking activities

4,110

(2,977)

1,824

Other

14,732

4,428

5,108

Total

$

76,763

$

1,703

$

5,844

Key Observations

$1.7 million increase LQ

  • Increase in other of $4.4 million due to higher direct investment income, swap fees, and miscellaneous fee income
  • Increase in loan related fees of $2.5 million due to higher syndication, prepayment, and line usage fees
  • Decrease in HSA fee income of $3.1 million as the prior quarter included $2.0 of TPA account fees
  • Decrease in mortgage banking activities of $3.0 million due to lower volume and spreads on loans originated for sale

$5.9 million increase YOY

  • Increase in other of $5.1 million due to direct investment income, mark to market on customer derivatives, and miscellaneous fee income
  • Decrease in deposit service fees of $3.0 million driven by lower overdraft and service-related fees
  • Increase in mortgage banking activities of $1.8 million primarily due to higher origination volume and spreads on loans originated for sale
  • Increase in HSA fee income of $1.1 million driven primarily by higher account service fees

25

Non-Interest Expense

($ in thousands)

Maintaining Expense Discipline

Favorable / (Unfavorable)

4Q20

3Q20

4Q19

Compensation and benefits

$122,754

$

(18,735)

$

(22,287)

Technology and equipment

29,122

(1,276)

(1,483)

Occupancy

28,024

(13,749)

(13,645)

Deposit insurance

4,372

(168)

290

Marketing

3,485

367

472

Other

31,773

(1,973)

(3,147)

Total

$219,530

$

(35,534)

$

(39,800)

Key Observations

$35.5 million increase LQ

  • Results include $38.3 million of charges related to strategic initiatives
  • Increase in compensation & benefits of $18.7 million primarily due to severance costs
  • Increase in occupancy of $13.7 million primarily due to facilities optimization
  • Increase in other of $2.0 million primarily due to project costs related to strategic initiatives taken in the quarter
  • Increase in technology & equipment of $1.3 million primarily due to infrastructure investments

$39.8 million increase YOY

  • Results include $38.3 million of charges related to strategic initiatives
  • Increase in compensation and benefits of $21.6 million primarily due to severance costs
  • Increase in occupancy of $13.7 million primarily due to facilities optimization
  • Increase in other of $3.1 million reflects the net impact of a $5.5 million increase in professional fees and $0.9 million in business optimization expenses related to our strategic initiatives, offset by lower pension, travel, and OREO costs
  • Increase in technology and equipment of $1.5 million primarily due to infrastructure investments

26

Net Interest Margin - Linked Quarter

($ in millions)

4Q20

Increase/(Decrease)

Avg Bal.

Int.

Yield/rate

Avg Bal.

Int.

Bps

Securities

$

8,923

$

48.1

2.22%

$

160

$

(4.1)

(25)

Money Market & Other

188

0.5

1.08

(5)

(0.1)

(21)

Loans HFS

26

0.2

2.80

(5)

(0.0)

(14)

Commercial Loans

14,901

132.0

3.47

34

4.4

11

Consumer Loans

6,828

57.8

3.38

(176)

(3.5)

(12)

Total Loans & Leases

21,729

189.8

3.44%

(142)

0.9

4

Interest-Earning Assets

$

30,866

$

238.6

3.08%

$

8

$

(3.3)

(5)

Deposits

$

27,216

8.6

0.13%

$

276

$

(4.0)

(6)

Borrowings

1,954

10.5

2.17

(290)

3.1

84

Interest-Bearing Liabilities

$

29,170

$

19.1

0.26%

$

(14)

$

(0.9)

(1)

Tax-Equivalent Net Interest Income

$

219.5

$

(2.4)

Less: Tax-Equivalent Adjustment

(2.6)

0.0

Net Interest Income

$

216.9

$

(2.4)

Net Interest Margin

2.83%

(5)

27

Interest Rate Risk 12 Month PPNR Sensitivity Trend

Rising Rate Scenarios

2.4%

2.4%

3.0%

1.8%

1.1%

-0.3%

4Q18

4Q19

4Q20

Short End Up 50 bps

Long End Up

50 bps

Falling Rate Scenarios

4Q18

4Q19

4Q20

-1.4%

-2.9%

-3.8%

-3.9%

-4.0%

-5.4%

Short End Down 50 bps

Long End Down 50 bps

Assumes Federal Funds at stated rate of 25 bps and 10 year swap at 95 bps Deposit rates will fall no lower than 0.0%

Key Observations

Asset sensitivity to rising short term rates has declined since 4Q18 due to an increase in floors

  • Loans at floors now approximately $3.4 billion
  • $1 billion of 1 month LIBOR floors purchased during 2019 have an average strike of 1.56%
  • Assumes historical deposit elasticity

Short end rates up 50 bps with no change in long end rates results in a 0.3% decrease in PPNR compared to flat rates

Long end rates down 50 bps (floored at zero) with no change in short end rates results in a 4.0% decrease in PPNR compared to flat rates

Short end rates down 50 bps assumes deposit rates fall to no less than 0.0%

28

Earning Asset and Funding Mix

($ in millions)

Earning Asset Mix

Type

Balance

Total %

Floating %

Periodic %

Fixed %

Securities

$

9,041

29%

6%

2%

92%

Loans HFS

13

0%

100%

0%

0%

Resi / HE Loans

5,365

18%

0%

29%

71%

HE Lines

1,369

4%

95%

0%

5%

C&I Loans

8,570

28%

47%

22%

31%

CRE Loans

6,300

21%

81%

14%

5%

Total

$

30,658

100%

36%

15%

49%

Funding Mix

Type

Balance

Total

< 1 Year

> 1 Year

Checking

$

9,757

35%

HSA

6,619

23%

Savings

4,878

17%

Money Market

2,892

10%

Time

2,244

8%

85%

15%

Borrowings

1,836

7%

46%

54%

Total

$

28,226

100%

Key Observations

Floating and periodic rate loans represent 68% of total loans:

  • Floating rate loans represent 48% of total loans
  • Periodic rate loans represent 20% of total loans

SBA PPP loans balances equal $1.3 billion or 6% of

total loans and are all fixed rate. Excluding PPP, floating and periodic loans would have represented 73% of total loans

LIBOR indexed loans represent 55% of total loans:

  • Loans indexed to 1 month LIBOR represent 39% of total loans
  • LIBOR indexed loans with rate reset frequencies greater than 1 month represent 16% of total loans

CRE loans are predominantly floating rate to the bank but fixed for customers due to customer swaps

HSA deposits represent 23% of our funding mix

29

Investment Portfolio

($ in millions)

Investment Securities

$8,220

$9,028

$8,895

$2,926

$3,304

$3,327

2.86%

2.47%

2.22%

$5,294

$5,724

$5,568

4Q19

3Q20

4Q20

HTM Securities

AFS Securities

Yield

Key Observations

Available-for-Sale portfolio includes $92.5 million of net unrealized gains at 4Q20 compared to $103.1 million at 3Q20

Held-to-Maturity portfolio excludes $267.2 million of net unrealized gains at 4Q20 compared to $283.0 million at 3Q20

Securities yields decreased 25 bps LQ primarily from premium acceleration in Agency MBS and Agency CMBS (18 bps) as a result of increased prepayments

Duration / Yield

6.9

5.2

6.0

4.2

3.7

3.4

2.60%

1.61%

1.62%

4Q19

3Q20

4Q20

Portfolio Duration (years) Purchase Duration (years) Purchase Yield

Key Observations

Portfolio duration decreased by 0.8 years vs. a year ago; LQ duration decreased by 0.3 years primarily due to increased prepayment speeds on Agency MBS and Agency CMBS

Purchase yield increased by 1 bp vs. LQ while purchase duration decreased by 0.9 years due to asset mix

30

Investment Securities

($ in millions)

Dec 31,

Sept 30,

Increase/

End of period balances

2020

2020

(Decrease)

Available-for-Sale:

Agency CMOs

$

154.6

$

173.4

$

(18.8)

Agency MBS

1,457.4

1,527.3

(69.9)

Agency CMBS

1,117.3

1,051.8

65.5

Non Agency CMBS-floating

508.0

455.0

53.0

Corporate Debt Securities

13.1

12.4

0.7

Collateralized Loan Obligations

76.4

84.4

(8.0)

Total Available-for-Sale

$

3,326.8

$

3,304.3

$

22.5

Held-to-Maturity:

Agency CMOs

$

91.6

$

116.0

$

(24.4)

Agency MBS

2,419.8

2,595.7

(175.9)

Agency CMBS

2,101.2

2,033.8

67.4

Non Agency CMBS-fixed

216.1

227.0

(10.9)

Municipal Bonds and Notes

739.5

750.9

(11.4)

Total Held-to-Maturity

$

5,568.2

$

5,723.4

$

(155.2)

31

Loan Originations and Mix

($ in millions)

Originations by Loan Portfolio

End of period balances

4Q20

3Q20

4Q19

Balance

Originations

Balance

Originations

Balance

Originations

Full quarter originations

Commercial Non-Mortgage

$

6,412

$

777

$

6,381

$

600

$

5,355

$

559

Asset-Based Lending

891

157

890

88

1,047

150

Total Commercial

$

7,303

$

934

$

7,271

$

688

$

6,402

$

709

Commercial Real Estate

5,026

257

5,026

233

4,754

602

Business Banking

2,571

76

2,623

120

1,674

121

Residential Mortgages

4,782

394

4,886

414

4,973

332

Consumer

1,959

143

2,046

105

2,234

155

Portfolio Total

$

21,641

$

1,804

$

21,852

$

1,560

$

20,037

$

1,919

Residential Mortgages originated for sale

$

125

$

149

$

94

Total Originations

$

1,929

$

1,709

$

2,013

Loan Mix and Yield

End of period balances

4Q20

3Q20

4Q19

Balance

Yield

Balance

Yield

Balance

Yield

Full quarter yields

Commercial

$

8,578

3.87%

$

8,612

3.66%

$

6,881

5.13%

CRE

6,322

2.94%

6,308

2.95%

5,949

4.16%

Residential

4,782

3.22%

4,886

3.36%

4,973

3.65%

Consumer

1,959

3.77%

2,046

3.83%

2,234

4.92%

Total

$

21,641

3.44%

$

21,852

3.40%

$

20,037

4.46%

Note: 4Q20 originations data includes $106 thousand of PPP loans, all in business

banking. 3Q20 originations data includes $34.8 million of PPP loans, with $3.4 million

in commercial non-mortgage and $31.4 million in business banking.

32

Commercial Real Estate

($ in millions)

CRE Outstandings

Outstandings by Collateral Type

Key Observations

Majority of balances in CRE line of business:

  • Dedicated expertise, consistent leadership team and focused strategy

Business Banking consists of Owner Occupied and Investment CRE

  • Average hold size: < $0.5 million

Largest segments within Other Commercial Business Units include

  • Healthcare & Senior Living facilities (~$430 million)
  • Data centers (~$230 million)
  • Owner Occupied (~$180 million)

Balances are well-diversified and strategically weighted on resilient property types with industry tailwinds

  • Industrial / Warehouse
  • Multi Family / Residential
  • Data centers & Healthcare facilities

Unfunded commitments were $606 million vs. $705 million in 3Q20

33

Commercial & Industrial

($ in millions)

Outstandings by Segment1

Outstandings by Industry: 4Q20

  • Excludes $1.3 and $1.4 billion of PPP loans for 4Q20 and 3Q20, respectively; Leveraged category broken out and represents loans within Sponsor and Specialty and

Middle Market segments

34

Key Observations

C&I balances cross multiple lines of business with focused strategies:

  • Sponsor & Specialty and Leveraged - Industry focused
  • Asset Based Lending and Equipment Finance - Collateral focused
  • Middle Market and Business Banking - In footprint focus, full services customers

Diversified portfolio with concentrations in sectors where Webster has deep expertise and long term relationships

Growth in 2020 was 6% driven by Tech & Infrastructure, Healthcare, and Public Sector Finance offset by lower utilization in Asset Based Lending

Sponsor & Specialty and Leveraged Lending

($ in millions)

S&S Outstandings - Leveraged vs. Non-Leveraged1

S&S by Industry Vertical

Key Observations

Sponsor portfolio consists of 66% non-leveraged and 34% leveraged

86% of leveraged loans are in Sponsor ($1.2 billion), with the balance in Middle Market

Webster has been lending to Sponsor-backed and leveraged borrowers for 16 years

The portfolio performed well through the great recession, and generated better risk-adjusted returns

We maintain a defined strategy:

  • Grow in non-cyclical end markets
  • Finance business models with a high % of recurring revenue (>75%)
  • Partner with Tier 1 Private Equity firms with deep expertise in target sectors
  • Focus on direct and agented middle market business
  • Maintain credit discipline, avoid chasing the market
  • There have been no payment deferrals for the Tech & Infrastructure portfolio

1 Sponsor and Specialty Non-Leveraged includes Data Center CRE loans; S&S and Leverage excludes deferred fees and premiums/discounts

35

Residential Mortgage

($ in millions)

Portfolio by Geography

Portfolio: Origination FICO, LTV & Debt to Income

Key Observations

Portfolio has diversified outside of CT, most notably into MA

Origination metrics are high quality and have steadily improved over the last few years

  • 89% of balances had a FICO score ≥ 700
  • 89% of balances had an LTV < 80%
  • Average DTI is 33%

Current portfolio metrics continue to be favorable

  • Current weighted average FICO is 778
  • Current weighted average LTV is 66%

Asset quality metrics are at cycle lows

  • 46% of NPLs are from pre-2008 originated loans
  • Net charge-offs ~2 bps
  • Delinquency = 23 bps

36

Home Equity

($ in millions)

Portfolio by Geography

Portfolio: Origination FICO, CLTV & Weighted Average DTI

Key Observations

Portfolio concentrated in CT 46% in first lien position

Origination metrics are high quality and have remained stable over the last few years

  • 88% of balances had a FICO score ≥ 700
  • 82% of balances had a CLTV < 80%
  • Average DTI is ~36%

Current portfolio metrics continue to be favorable

  • Current weighted average FICO is 762
  • Current weighted average CLTV is 67% Asset quality metrics at cycle lows
  • 64% of NPLs from pre-2008 originated loans
  • Delinquency = 41 bps
  • Net recoveries in 2020

$2 billion of unused exposure, 96% FICO > 700

  • Utilization has remained stable at ~39%

37

Personal Lending

($ in millions)

Personal Lending Balances

Lending Club Balances by FICO

Key Observations

We discontinued our LC purchases in April

Lending Club ("LC") represents 74%, $115 million of the banks unsecured balances vs. $137 million in 3Q

The portfolio overall has slowly declined over the last few years (both LC & Webster loans)

The bank ceased purchases of Tranche C loans in 2017 due to a change in risk appetite

Since discontinuing the purchases of Tranche C loans, the average FICO score in the portfolio has increased meaningfully

  • ≥ 700 FICO now represents 75% vs. 58% at the end of 2016
  • ≥ 740 FICO now represents 42% vs. 24% at the end of 2016
  • Loss rates and delinquency have also steadily improved as a result

Hardship deferrals have declined to $2 million at 12/31/20 vs. $3 million at 09/30/20 and $19 million at the peak

38

Deposit Mix and Rate

($ in millions)

By Product

End of period balances

4Q20

3Q20

4Q19

Balance

Rate

Balance

Rate

Balance

Rate

Full quarter cost

Demand

6,155

-

$

6,137

-

$

4,446

-

Health Savings Accounts

7,120

0.09%

6,976

0.12%

6,416

0.20%

Interest Bearing Checking

3,653

0.05%

3,391

0.07%

2,690

0.16%

Money Market

2,940

0.17%

3,069

0.27%

2,313

1.16%

Savings

4,979

0.05%

4,777

0.11%

4,355

0.53%

Core Deposits

$

24,847

0.06%

$

24,350

0.10%

$

20,220

0.34%

Time Deposits

$

2,488

0.74%

2,571

1.00%

3,105

1.79%

Total

$

27,335

0.13%

$

26,921

0.19%

$

23,325

0.54%

Core/Total

91%

90%

87%

By Line of Business

Personal Banking

$

10,623

0.19%

$

10,171

0.29%

$

9,760

0.76%

Commercial Banking

2,545

0.07%

2,507

0.10%

1,844

0.22%

Treasury & Pymt Solutions

3,053

0.12%

3,246

0.18%

2,297

0.99%

Private Banking

358

0.15%

246

0.23%

241

0.89%

Business Banking

3,635

0.07%

3,779

0.10%

2,768

0.32%

HSA Bank

7,120

0.09%

6,976

0.12%

6,416

0.20%

Corporate & Reconciling

1

0.00%

(4) -0.01%

(1)

0.17%

Total

$

27,335

0.13%

$

26,921

0.19%

$

23,325

0.54%

39

Non-GAAP - QTD

($ in thousands)

Efficiency Ratio

4Q20

3Q20

4Q19

Non-interest expense

$

219,530

$

183,996

$

179,730

Net foreclosed (expense) income

836

201

(263)

Amortization of intangibles

(1,147)

(1,089)

(962)

Strategic initivatives

(38,265)

(4,786)

-

Non-interest expense (net of above)

$

180,954

$

178,322

$

178,505

Net interest income before provision

$

216,929

$

219,256

$

231,250

FTE adjustment

2,577

2,635

2,486

Non-interest income

76,763

75,060

70,919

Loss on termination of hedges

3,680

-

-

Other

291

297

402

Less: Gain on securities

-

-

29

Total revenue (net of above)

$

300,240

$

297,248

$

305,028

Efficiency Ratio

60.27%

59.99%

58.52%

Tangible Common Equity Ratio

Shareholders' equity

$

3,234,625

$

3,219,690

$

3,207,770

Less: Goodwill and other intangible assets

560,756

561,902

560,290

Tangible shareholders' equity

2,673,869

2,657,788

2,647,480

Less: Preferred stock

145,037

145,037

145,037

Tangible common shareholders' equity

$

2,528,832

$

2,512,751

$

2,502,443

Total assets

$

32,590,690

$

32,994,443

$

30,389,344

Less: Goodwill and other intangible assets

560,756

561,902

560,290

Tangible assets

$

32,029,934

$

32,432,541

$

29,829,054

Tangible Common Equity Ratio

7.90%

7.75%

8.39%

40

Non-GAAP - QTD continued

($ in thousands)

Tangible Book Value per Common Share

4Q20

3Q20

4Q19

Tangible common shareholders' equity

$

2,528,832

$

2,512,751

$

2,502,443

Common shares outstanding

90,199

90,204

92,027

Tangible Book Value per Common Share

$

28.04

$

27.86

$

27.19

Return on Average Tangible Common Shareholders' Equity

Average shareholders' equity

$

3,239,221

$

3,205,329

$

3,196,563

Less: Average goodwill and other intangible assets

561,303

560,959

560,750

Average preferred stock

145,037

145,037

145,037

Average tangible common shareholders' equity

$

2,532,881

$

2,499,333

$

2,490,776

Net income

$

60,044

$

69,281

$

90,473

Less: Preferred stock dividends

1,969

1,969

1,969

Add: Intangible assets amortization, tax-effected

906

860

760

Income adj. for preferred stock dividends & intangible assets amort.

58,981

68,172

89,264

Adjusted income, annualized basis

$

235,924

$

272,688

$

357,056

Return on Average Tangible Common Shareholders' Equity

9.31%

10.91%

14.34%

41

Non-GAAP - YTD

($ in thousands)

Efficiency Ratio

2020

2019

Non-interest Expense

$

758,946

$

715,950

Net Foreclosed (Expense) Income

(1,504)

173

Amortization of Intangibles

4,160

(3,847)

Strategic initivatives

43,051

-

Other Expense

-

(1,757)

Non-interest Expense (net of above)

$

713,239

$

710,519

Net Interest Income Before Provision

$

891,393

$

955,127

FTE Adjustment

10,246

9,695

Non-interest Income

285,277

285,315

Less: Gain on Securities

8

8

Add: Loss on termination of hedges

3,680

-

Discrete fair value adjustment related to customer derivatives

5,511

-

Other

1,180

1,448

Total Revenue (net of above)

$

1,197,279

$

1,251,577

Efficiency Ratio

59.57%

56.77%

42

WBS 4Q20 Financial Review

Forward-looking Statements

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "believes," "anticipates," "expects," "intends," "targeted," "continue," "remain," "will," "should," "may," "plans," "estimates," and similar references to future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, expense savings, income or loss, earnings or loss per share, and other financial items;

  1. statements of plans, objectives, and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and
  1. statements of assumptions underlying such statements. Forward-looking statements are based on Webster's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include the ongoing COVID-19 pandemic and governmental and other responses thereto including the deployment and effectiveness of vaccines, the Company's ability to successfully achieve the anticipated cost reductions from branch consolidations, higher than anticipated costs or delays in implementing the Company's consolidation plan, and the other factors that are described in the "Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and the "Forward-Looking Statements" section and other information contained in our earnings release for the fourth quarter of 2020 furnished as an exhibit to our most recent Current Report on Form 8-K. Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company 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

This presentation contains both financial measures based on accounting principles generally accepted in the United States ("GAAP") and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company's results of operations or financial position. Reconciliations of these non-GAAP financial measures, to the most comparable GAAP measures are included in this presentation and the Company's earnings release available in the Investor Relations portion of the Company's website at www.wbst.com. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. For additional information see reconciliation to GAAP financial measures presented in the Company's Press Release.

43

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Webster Financial Corporation published this content on 21 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2021 14:17:04 UTC