Webster Financial Corporation
Other securities:
WBS
WBS$Gpreferred
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ITEM 1. BUSINESS
General
The Company is a bank holding company that has elected to be treated as a financial holding company under the BHC Act, incorporated under the laws of Delaware in 1986, and headquartered in Stamford, Connecticut. As of December 31, 2025, the Company had $84.1 billion in total consolidated assets.
The Bank is a commercial bank with a national bank charter focused on providing financial products and services to businesses, individuals, and families. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. The Bank offers three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking.
Proposed Transaction with Banco Santander
On February 3, 2026, Webster entered into a Transaction Agreement with Banco Santander and Webster Virginia Corporation, a wholly owned subsidiary of Webster incorporated in the State of Virginia. The Transaction Agreement provides that, upon the terms and subject to the conditions set forth therein, Banco Santander will acquire Webster in two steps. First, Webster will merge with and into Webster Virginia Corporation, with Webster Virginia Corporation continuing as the surviving corporation in such merger. Second, immediately following the completion of such merger, Banco Santander will acquire all outstanding shares of Webster Virginia Corporation through a statutory share exchange. Based on Banco Santander’s closing stock price on February 2, 2026, the Transaction has an aggregate value of approximately $12.3 billion.
Under the terms of the Transaction Agreement, holders of Webster common stock will receive $48.75 in cash and 2.0548 ADSs (or Ordinary Shares in certain circumstances) for each share of Webster common stock that they own. The Transaction Agreement contains customary representations and warranties, covenants, and closing conditions. Completion of the Transaction remains subject to approval by the Federal Reserve and the European Central Bank, approval by the stockholders of each company, and other customary closing conditions. The Transaction is expected to close in the second half of 2026.
Joint Venture with Marathon Asset Management
On July 19, 2024, the Company, through its subsidiary, MW Advisor Holding, LLC, entered into an agreement with Marathon Asset Management and formed a private credit joint venture, which is designed to deliver direct lending solutions for sponsor-backed middle market companies across the country. Information regarding joint venture activities that occurred during the year ended December 31, 2025, can be found within Note 2: Business Developments in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data.
On January 26, 2026, CVC Capital Partners, a private markets investment firm, announced that it has agreed to acquire 100% of Marathon Asset Management, which will result in a change in control of Marathon Asset Management. Separately, Webster’s Transaction with Banco Santander will result in a change of control of Webster. Pursuant to the operating agreement for Webster’s joint venture with Marathon Asset Management, within 120 days after the consummation of a change in control, the non-affected member may elect to dissolve the joint venture, which would result in the wind-down of MW Advisor, LLC and Marathon Direct Lending SLP, LLC.
Subsidiaries and Reportable Segments
As of December 31, 2025, the Company’s active consolidated subsidiaries included the Bank and MW Advisor Holding, LLC. The Bank’s active consolidated subsidiaries included Webster Licensing, LLC, Webster Wealth Advisors, Inc., Bend Financial, Inc., InterLINK Insured Sweep LLC, Ametros Financial Corporation, Webster Servicing LLC, Webster Public Finance Corporation, Webster Mortgage Investment Corporation, Sterling National Funding Corp., Sterling REIT, Inc., Webster Preferred Capital Corporation, Webster Investment Services, Inc., and Secure Inc.
The Company’s operations are organized into three reportable segments that represent its differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking.
Commercial Banking delivers financial solutions nationally to a wide range of companies, investors, government entities, and other public and private institutions. Commercial Banking helps its clients achieve their business and financial goals with expertise in Commercial Real Estate, Middle Market, Sponsor and Specialty Finance, Verticals and Regional Banking, Asset Based Lending and Commercial Services, and Treasury Management. Commercial Banking’s Private Banking team also pairs holistic wealth solutions, including tailored lending, with commercial banking services.
Healthcare Financial Services includes HSA Bank and Ametros. HSA Bank is one the country’s largest providers of employee benefits solutions, including being one of the leading bank administrators of HSAs, emergency savings accounts, and flexible spending account administration services in 50 states. Ametros, the nation’s largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform.
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Consumer Banking delivers customized financial solutions to individuals, families, and small to mid-sized businesses through its experienced relationship managers and wealth advisors across 195 banking centers located throughout the Northeast. Consumer Banking offers a full suite of deposit, lending, treasury management, and wealth management solutions. Consumer Banking also provides a fully digital banking experience through its mobile banking apps and BrioDirect.
Additional information regarding the Company’s reportable segments can be found in Part II under the section captioned “Segment Reporting” contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and within Note 20: Segment Reporting in the Notes to Consolidated Financial Statements contained in Item 8. Financial Statements and Supplementary Data.
Available Information
The Company files reports with the SEC, and makes available, free of charge, within the investor relations section of its website (http://investors.websterbank.com), its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after it electronically files such material with, or furnishes it to, the SEC. The SEC website (http://www.sec.gov) makes reports, proxy and information statements, and other information filed electronically with the SEC available to the public free of charge. The Company intends to use its Investor Relations website and its corporate website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels in addition to our press releases, SEC filings, and public conference calls and webcasts. Information contained on the Company’s website is not incorporated by reference into this Annual Report on Form 10-K.
Human Capital Resources
As a values-driven organization, our colleagues are the cornerstone of our success. As of December 31, 2025, the Company had 4,498 full-time employees and 103 part-time employees. Our employees are primarily located in our core footprint, which spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, including our headquarters in Stamford, Connecticut. The average full-time and part-time employee tenure at the Company is approximately 8.9 years.
Culture and Engagement. We recognize the importance of an engaged workforce, and we support the professional development of our colleagues to help them achieve their career goals. Our 2025 colleague engagement survey results reflected our commitment to establishing a culture of trust and safety by encouraging colleagues to share their opinions and actionable ideas for improvement. Webster provides all colleagues with 24 hours of paid time (pro-rated for new hires and part-time colleagues) to volunteer at the organizations of their choice.
Internal Communication. Our internal communications channels are designed to keep colleagues informed, connected, and aligned with company priorities. We publish Webster Weekly, an all-colleague newsletter that provides regular updates on key initiatives, news, and achievements across the organization. Our intranet, the Vault, serves as a centralized hub for corporate messaging, essential resources and department information, ensuring colleagues have easy access to timely and accurate content. In 2025, we hosted 11 Webster Within webinars, a leadership series featuring members of the executive management committee who share insights on important topics and organizational priorities, supporting transparency, engagement, and ongoing colleague education.
Inclusion and Belonging. At Webster, we believe that fostering a culture of inclusion and belonging is integral to our long-term success. We are committed to attracting, developing, and retaining a talented workforce with a broad range of perspectives, knowledge, and experience. We are dedicated to providing equal employment opportunities to all individuals in accordance with applicable laws. We believe this approach enhances engagement, supports retention, increases job satisfaction, and contributes to a more engaged and productive workforce. Our Business Resource Groups, open to all colleagues on a voluntary basis, are strategic partners who support programs and initiatives that advance talent acquisition and leadership development, colleague retention and productivity, market development, and customer attraction and retention. They further align with corporate strategy by leveraging and capitalizing on the benefits of an inclusive well-qualified workforce to drive innovation, strengthen problem-solving, deepen market insight and enhance colleague engagement and satisfaction.
Compensation. Our compensation program is designed to attract, retain, and reward performance and align incentives with achievement of our strategic plan, and both short- and long-term operating objectives. Our hiring, promotion, and retention practices are based on merit and qualifications, guided by the principles of fairness. Our pay practices have strong governance processes, including reviewing competitive market data from multiple surveys each year. We also offer competitive benefits packages that reflect the needs of our workforce, which include medical, dental, and vision plans, prescription benefits, life insurance and disability benefits, HSAs, wellness incentives, health coaching, telemedicine, paid parental leave, paid time off and paid holidays, a matching 401(k) retirement savings plan, an employee stock purchase plan, an employee assistance program, a student loan repayment program, backup child and elder care, pet insurance, and wellness programs. We continually review and evolve our benefit plans as necessary to remain competitive and meet the needs of our workforce.
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Learning and Talent Management. We are focused on investing in our current and future talent by actively supporting the success, growth, and career progression of our colleagues. Our colleagues have access to our internal learning resources that offer in-person facilitated learning programs, virtual instructor-led training and on-demand programs. We also provide unlimited access to self-directed e-learning courses taught by industry experts with curated learning paths designed for specific professional interests.
Significant investments in formal development programs are made to build our talent pipeline. Our Internship Program and our Rotational Program for early-career college graduates provide rotating assignments throughout the bank. Further, we offer our RISE Emerging Talent Program for high-potential individuals, our flagship management development program, Lead with Impact, and our Advanced Leadership Program targeted to our top leadership talent. Our mentoring program, which partners with our Business Resource Group network, is also an important resource to support colleagues with their professional growth based on their self-identified career development goals.
Competition
The Company is subject to strong competition from other commercial banks, savings banks, credit unions, non-bank health savings account trustees, consumer finance companies, investment companies, insurance companies, online lending and savings institutions, and other non-bank financial services companies. Certain of these competitors are larger financial institutions with substantially greater resources, lending limits, larger branch systems, and a wider array of commercial and consumer banking services than the Company. Many of these competitors lack a physical presence within our geographic footprint, but actively pursue business through digital channels and other remote means. Competition could intensify in the future as a result of industry consolidation, the increasing availability of products and services from non-bank organizations, including financial technology companies, greater technological developments in the industry, and continued bank regulatory changes.
The Company faces substantial competition for deposits and loans throughout its market areas. The primary factors in competing for deposits are interest rates, personalized services, the quality and range of financial services, convenience of office locations and hours, mobile banking, and other automated services. Competition for deposits comes from other commercial banks, savings banks, credit unions, non-bank health savings account trustees, money market mutual funds, financial technology companies, and other non-bank financial services companies. The primary factors in competing for commercial and consumer loans are interest rates, loan origination fees, ease and convenience of loan origination channels, the quality and range of lending services, personalized service, and the ability to close within each customer’s desired time frame. Competition for the origination of loans comes primarily from commercial banks, non-bank lenders, savings institutions, mortgage banking firms, mortgage brokers, online lenders, and insurance companies.
The financial services industry continues to undergo rapid technological change with frequent introductions of new technology-driven products and services, including innovative ways that customers can make payments or manage their accounts, such as through the use of mobile payments, digital wallets, or digital assets. Other factors that affect competition include the general and local economic conditions, current interest rate levels, and volatility in the lending markets.
Supervision and Regulation
The Company and its bank and non-bank subsidiaries are subject to extensive regulation under federal and state laws. The regulatory framework applicable to bank holding companies and their depository institutions is intended to protect depositors, the DIF, consumers, and the U.S. banking system as a whole, not stockholders.
Set forth below is a summary of the significant elements of the laws and regulations applicable to the Company and its bank and non-bank subsidiaries. The description that follows is qualified in its entirety by reference to the full text of the statutes, regulations, and policies that are described. Banking statutes, regulations, and policies are continually under review by Congress, state legislatures, and federal and state regulatory agencies. Changes in the statutes, regulations, or policies applicable to the Company and its bank and non-bank subsidiaries, including how they are implemented or interpreted by regulators or by courts, could have a material effect on the results of the Company.
Regulatory Agencies
The Company is a separate and distinct legal entity from the Bank and its other subsidiaries. As a registered bank holding company that has elected to be treated as a financial holding company, the Company is subject to consolidated regulation, inspection, examination, and supervision under the BHC Act by its primary federal regulator, the Federal Reserve. As a publicly-traded company, the Company is subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, which are administered by the SEC. As a publicly-traded company with securities listed on the NYSE, the Company is subject to the rules of the NYSE.
The Bank is organized as a national banking association under the National Bank Act, as amended, and is subject to the supervision of and regular examination by the OCC, its primary regulator, and with respect to some matters, by the FDIC, its deposit insurer, and the CFPB. As a national banking association, the Bank derives its lending, investment, and other bank activity powers from the National Bank Act, as amended, and the regulations of the OCC promulgated thereunder.
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The Company’s non-bank subsidiaries are also subject to regulation by the Federal Reserve and other applicable federal and state agencies.
Permissible Activities
In general, the BHC Act limits the business of bank holding companies to banking, managing, or controlling banks and other activities that the Federal Reserve has determined to be closely related to banking. Bank holding companies that qualify and elect to become financial holding companies, such as the Company, may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either financial in nature or incidental to such financial activity (as determined by the Federal Reserve in consultation with the Secretary of the Treasury), or complementary to a financial activity, and that does not pose a substantial risk to the safety and soundness of depository institutions or the financial system (as solely determined by the Federal Reserve). Activities that are financial in nature include securities underwriting, dealing and market making, sponsoring mutual funds and investment companies, insurance underwriting, and merchant banking. Subject to certain exceptions, the BHC Act generally prohibits us from acquiring direct or indirect ownership or control of voting shares of any company engaged in activities that are not permissible for financial holding companies to engage in.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company is a bank holding company that has elected to be treated as a financial holding company under the BHC Act, incorporated under the laws of Delaware in 1986, and headquartered in Stamford, Connecticut. The Company had $85.6 billion in total consolidated assets at March 31, 2026.
The Bank is a commercial bank with a national bank charter focused on providing financial products and services to businesses, individuals, and families. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. The Bank offers three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking.
The following discussion and analysis provides information that management believes is necessary to understand the Company’s consolidated financial condition, results of operations, and cash flows for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. This information should be read in conjunction with the Condensed Consolidated Financial Statements, and the accompanying Notes thereto, contained in Part I - Item 1. Financial Statements of this report, and the Consolidated Financial Statements of this report, and the accompanying Notes thereto, contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026. The Company’s consolidated financial condition, results of operations, and cash flows for the three months ended March 31, 2026, are not necessarily indicative of future results that may be attained for the entire year or other interim periods.
Proposed Transaction with Banco Santander
On February 3, 2026, Webster entered into a Transaction Agreement with Banco Santander and Webster Virginia Corporation, a wholly owned subsidiary of Webster incorporated in the State of Virginia. The Transaction Agreement provides that, upon the terms and subject to the conditions set forth therein, Banco Santander will acquire Webster in two steps. First, Webster will merge with and into Webster Virginia Corporation, with Webster Virginia Corporation continuing as the surviving corporation in such merger. Second, immediately following the completion of such merger, Banco Santander will acquire all outstanding shares of Webster Virginia Corporation through a statutory share exchange.
Based on Banco Santander’s closing stock price on February 2, 2026, the Transaction has an aggregate value of approximately $12.3 billion. Under the terms of the Transaction Agreement, holders of Webster common stock will receive $48.75 in cash and 2.0548 ADSs for each share of Webster common stock that they own. Holders of Webster common stock will have the option to exchange ADSs received in connection with the Transaction for Ordinary Shares at no charge for a specified period following the completion of the Transaction.
The Transaction Agreement contains customary representations and warranties, covenants, and closing conditions. As of the date of this Quarterly Report on Form 10-Q, completion of the Transaction remains subject to approval by the Federal Reserve and the European Central Bank, approval by Webster’s stockholders, and other customary closing conditions. Webster filed its Definitive Proxy Statement on April 23, 2026, and a special stockholder meeting is scheduled for May 26, 2026, for stockholder approval of the Transaction. The Transaction is expected to close in the second half of 2026.
Additional information regarding the proposed Transaction can be found within Note 2: Business Developments in the Notes to Condensed Consolidated Financial Statements contained in Part I - Item 1. Financial Statements.
Joint Venture with Marathon Asset Management
On July 19, 2024, the Company, through its subsidiary, MW Advisor Holding, LLC, and Marathon Asset Management formed a private credit joint venture designed to deliver direct lending solutions for sponsor-backed middle market companies across the country. Information regarding joint venture activities that occurred during the year ended December 31, 2025, can be found within Note 2: Business Developments in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
On January 26, 2026, CVC Capital Partners, a private markets investment firm, announced that it has agreed to acquire 100% of Marathon Asset Management, which will result in a change in control of Marathon Asset Management. Separately, Webster’s Transaction with Banco Santander will result in a change of control of Webster. Pursuant to the operating agreement for Webster’s joint venture with Marathon Asset Management, within 120 days after the consummation of a change in control, the non-affected member may elect to dissolve the joint venture, which would result in the wind-down of MW Advisor, LLC and Marathon Direct Lending SLP, LLC.
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Economic Outlook
Actions and announcements related to changes in trade policies and other economic policies and practices, including tariffs, increases in commodity prices, and geopolitical tensions, have created significant economic uncertainty in the U.S., which could contribute to higher inflation, increase the risk of a recession, and introduce further uncertainty as to the pace and direction of interest rate changes. Events such as these are outside of our control, but nonetheless may alter customer behavior, including borrowing, repayment, investment, and deposit practices, which could, in turn, adversely impact our business and financial results in future periods. While we cannot predict the potential impact that these changes and economic developments may have on us or our customers, we believe that our diverse businesses, strong capital position, unique deposit profile, and solid risk management framework allow us to operate in a range of economic environments.
Results of Operations
The following table summarizes selected financial highlights and key performance indicators:
| Three months ended March 31, | |||||||||||
| (In thousands, except per share and ratio data) | 2026 | 2025 | |||||||||
| Income and performance ratios: | |||||||||||
| Net income | $ | 246,231 | $ | 226,917 | |||||||
| Net income applicable to common stockholders | 239,274 | 220,367 | |||||||||
| Earnings per common share - diluted | 1.50 | 1.30 | |||||||||
| Return on average assets (annualized) | 1.16 | % | 1.15 | % | |||||||
| Return on average tangible common stockholders’ equity (annualized) (non-GAAP) | 16.18 | 15.93 | |||||||||
| Return on average common stockholders’ equity (annualized) | 10.35 | 9.94 | |||||||||
Non-interest income as a percentage of total revenue (1) | 13.79 | 13.14 | |||||||||
| Asset quality: | |||||||||||
| ACL on loans and leases | $ | 733,434 | $ | 713,321 | |||||||
Non-performing assets (1) | 524,418 | 564,708 | |||||||||
| ACL on loans and leases / total loans and leases | 1.28 | % | 1.34 | % | |||||||
| Net charge-offs / average loans and leases (annualized) | 0.29 | 0.42 | |||||||||
Non-performing loans and leases / total loans and leases (2) | 0.91 | 1.06 | |||||||||
Non-performing assets / total loans and leases plus OREO and repossessed assets (2) | 0.92 | 1.06 | |||||||||
ACL on loans and leases / non-performing loans and leases (2) | 140.36 | 126.39 | |||||||||
| Other ratios: | |||||||||||
| Tangible common equity (non-GAAP) | 7.39 | % | 7.43 | % | |||||||
| Tier 1 Risk-Based Capital | 11.91 | 11.76 | |||||||||
| Total Risk-Based Capital | 13.89 | 13.96 | |||||||||
| CET1 Risk-Based Capital | 11.42 | 11.25 | |||||||||
Stockholders’ equity / total assets | 11.19 | 11.47 | |||||||||
| Net interest margin | 3.36 | 3.48 | |||||||||
| Efficiency ratio (non-GAAP) | 46.83 | 45.79 | |||||||||
| Equity and share related: | |||||||||||
| Common stockholders’ equity | $ | 9,289,670 | $ | 8,920,175 | |||||||
| Book value per common share | 57.33 | 52.91 | |||||||||
| Tangible book value per common share (non-GAAP) | 37.59 | 33.97 | |||||||||
| Common stock closing price | 69.42 | 51.55 | |||||||||
| Dividends and equivalents declared per common share | 0.40 | 0.40 | |||||||||
| Common shares outstanding | 162,049 | 168,594 | |||||||||
| Weighted-average common shares outstanding - basic | 159,534 | 169,182 | |||||||||
| Weighted-average common shares - diluted | 159,850 | 169,544 | |||||||||
(1)Total revenue reflects the sum of Net interest income and Non-interest income.
(2)Non-performing assets and the related asset quality ratios exclude the impact of net unamortized (discounts)/premiums and net unamortized deferred (fees)/costs on loans and leases.
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Non-GAAP Financial Measures
The non-GAAP financial measures identified in the preceding table provide both management and investors with information useful in understanding the Company’s financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by management 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. Management believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting the Company’s business and allows investors to view its performance in a similar manner.
Tangible book value per common share represents stockholders’ equity, less preferred stock and goodwill and other net intangible assets (“tangible common equity”), divided by common shares outstanding at the end of the reporting period. The tangible common equity ratio represents tangible common equity divided by total assets, less goodwill and other net intangible assets (“tangible assets”). Both of these measures are used by management to evaluate the Company’s capital position. 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 tangible common equity. This measure is used by management to assess the Company’s performance against its peer financial institutions. The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items in order to measure how well the Company is managing its recurring operating expenses.
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.
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.
The following tables reconcile non-GAAP financial measures to the most comparable financial measures defined by GAAP:
| March 31, | |||||||||||
| (Dollars and shares in thousands, except per share data) | 2026 | 2025 | |||||||||
| Tangible book value per common share: | |||||||||||
| Stockholders’ equity | $ | 9,573,649 | $ | 9,204,154 | |||||||
| Less: Preferred stock | 283,979 | 283,979 | |||||||||
| Goodwill and other intangible assets, net | 3,197,981 | 3,193,132 | |||||||||
| Tangible common stockholders’ equity | $ | 6,091,689 | $ | 5,727,043 | |||||||
| Common shares outstanding | 162,049 | 168,594 | |||||||||
| Tangible book value per common share | $ | 37.59 | $ | 33.97 | |||||||
| Book value per common share (GAAP) | $ | 57.33 | $ | 52.91 | |||||||
| Tangible common equity ratio: | |||||||||||
| Tangible common stockholders’ equity | $ | 6,091,689 | $ | 5,727,043 | |||||||
| Total assets | $ | 85,584,588 | $ | 80,279,750 | |||||||
| Less: Goodwill and other intangible assets, net | 3,197,981 | 3,193,132 | |||||||||
| Tangible assets | $ | 82,386,607 | $ | 77,086,618 | |||||||
| Tangible common equity ratio | 7.39 | % | 7.43 | % | |||||||
| Common stockholders’ equity to total assets (GAAP) | 10.85 | % | 11.11 | % | |||||||
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| Three months ended March 31, | |||||||||||
| (Dollars in thousands) | 2026 | 2025 | |||||||||
| Return on average tangible common stockholders’ equity (annualized): | |||||||||||
| Net income | $ | 246,231 | $ | 226,917 | |||||||
| Less: Preferred stock dividends | 4,163 | 4,163 | |||||||||
| Add: Intangible assets amortization, tax-effected | 6,676 | 6,732 | |||||||||
| Adjusted net income | $ | 248,744 | $ | 229,486 | |||||||
| Adjusted net income (annualized) | $ | 994,976 | $ | 917,944 | |||||||
| Average stockholders’ equity | $ | 9,638,238 | $ | 9,245,030 | |||||||
| Less: Average preferred stock | 283,979 | 283,979 | |||||||||
| Average goodwill and other intangible assets | 3,203,998 | 3,198,123 | |||||||||
| Average tangible common stockholders’ equity | $ | 6,150,261 | $ | 5,762,928 | |||||||
| Return on average tangible common stockholders’ equity (annualized) | 16.18 | % | 15.93 | % | |||||||
| Return on average common stockholders’ equity (annualized) (GAAP) | 10.35 | % | 9.94 | % | |||||||
| Efficiency ratio: | |||||||||||
| Non-interest expense | $ | 379,109 | $ | 343,644 | |||||||
| Less: Foreclosed property activities | 43 | 517 | |||||||||
| Intangible assets amortization | 9,186 | 9,237 | |||||||||
| Operating lease depreciation | — | 16 | |||||||||
| Transaction expenses | 9,145 | — | |||||||||
Strategic restructuring costs (1) | 3,636 | — | |||||||||
| FDIC special assessment | (684) | — | |||||||||
| Non-interest expense | $ | 357,783 | $ | 333,874 | |||||||
| Net interest income | $ | 634,403 | $ | 612,192 | |||||||
| Add: FTE adjustment | 15,357 | 13,611 | |||||||||
| Non-interest income | 101,463 | 92,606 | |||||||||
Other income (2) | 12,828 | 11,032 | |||||||||
| Less: Operating lease depreciation | — | 16 | |||||||||
| Gain on sale of investment securities, net | — | 220 | |||||||||
| Adjusted income | $ | 764,051 | $ | 729,205 | |||||||
| Efficiency ratio | 46.83 | % | 45.79 | % | |||||||
Non-interest expense as a percentage of total revenue (GAAP) (3) | 51.52 | % | 48.76 | % | |||||||
(1)Strategic restructuring costs reflect severance charges.
(2)Other income (non-GAAP) reflects a tax-equivalent adjustment on income generated from low-income housing tax credit investments.
(3)Total revenue reflects the sum of Net interest income and Non-interest income.
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Net Interest Income Analysis
The following table summarizes daily average balances, interest, and average yield/rate by major category, and net interest margin on an FTE basis:
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income/Expense | Average Yield/Rate | Average Balance | Interest Income/Expense | Average Yield/Rate | |||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
Loans and leases (1) | $ | 57,106,092 | $ | 789,336 | 5.53 | % | $ | 52,568,406 | $ | 766,388 | 5.84 | % | |||||||||||
| Investment securities: | |||||||||||||||||||||||
| Taxable | 17,567,508 | 187,240 | 4.26 | 17,141,694 | 189,455 | 4.42 | |||||||||||||||||
| Non-taxable | 1,059,403 | 8,491 | 3.21 | 972,264 | 7,354 | 3.03 | |||||||||||||||||
| Total investment securities | 18,626,911 | 195,731 | 4.20 | 18,113,958 | 196,809 | 4.35 | |||||||||||||||||
| FHLB and FRB stock | 381,312 | 4,498 | 4.78 | 323,982 | 3,954 | 4.95 | |||||||||||||||||
Interest-bearing deposits (2) | 2,206,596 | 20,053 | 3.64 | 1,819,496 | 19,932 | 4.38 | |||||||||||||||||
| Loans held for sale | 14,100 | 18 | 0.50 | 28,732 | 15 | 0.21 | |||||||||||||||||
| Total interest-earning assets | 78,335,011 | $ | 1,009,636 | 5.16 | % | 72,854,574 | $ | 987,098 | 5.42 | % | |||||||||||||
| Non-interest-earning assets | 6,761,702 | 6,410,395 | |||||||||||||||||||||
| Total assets | $ | 85,096,713 | $ | 79,264,969 | |||||||||||||||||||
| Liabilities and Stockholders’ Equity: | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Demand | $ | 10,120,435 | $ | — | — | % | $ | 10,280,570 | $ | — | — | % | |||||||||||
| Interest-bearing checking | 11,288,211 | 45,269 | 1.63 | 9,709,820 | 40,899 | 1.71 | |||||||||||||||||
| Health savings accounts | 9,562,306 | 3,946 | 0.17 | 9,307,517 | 3,560 | 0.16 | |||||||||||||||||
| Money market | 23,968,546 | 181,059 | 3.06 | 21,114,901 | 183,107 | 3.52 | |||||||||||||||||
| Savings | 6,847,778 | 23,719 | 1.40 | 7,104,607 | 28,143 | 1.61 | |||||||||||||||||
| Certificates of deposit | 5,892,336 | 44,968 | 3.10 | 6,047,194 | 54,942 | 3.68 | |||||||||||||||||
| Brokered certificates of deposit | 1,836,424 | 17,663 | 3.90 | 1,402,350 | 15,732 | 4.55 | |||||||||||||||||
| Total deposits | 69,516,036 | 316,624 | 1.85 | 64,966,959 | 326,383 | 2.04 | |||||||||||||||||
| Securities sold under agreements to repurchase | 179,787 | 1,062 | 2.36 | 244,560 | 1,676 | 2.74 | |||||||||||||||||
| FHLB advances | 3,535,915 | 33,860 | 3.83 | 2,112,301 | 23,589 | 4.47 | |||||||||||||||||
Long-term debt | 722,150 | 8,330 | 4.61 | 886,235 | 9,647 | 4.35 | |||||||||||||||||
| Total borrowings | 4,437,852 | 43,252 | 3.90 | 3,243,096 | 34,912 | 4.31 | |||||||||||||||||
| Total deposits and interest-bearing liabilities | 73,953,888 | $ | 359,876 | 1.97 | % | 68,210,055 | $ | 361,295 | 2.15 | % | |||||||||||||
| Non-interest-bearing liabilities | 1,504,587 | 1,809,884 | |||||||||||||||||||||
| Total liabilities | 75,458,475 | 70,019,939 | |||||||||||||||||||||
| Preferred stock | 283,979 | 283,979 | |||||||||||||||||||||
| Common stockholders’ equity | 9,354,259 | 8,961,051 | |||||||||||||||||||||
| Total stockholders’ equity | 9,638,238 | 9,245,030 | |||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 85,096,713 | $ | 79,264,969 | |||||||||||||||||||
| Net interest income (FTE) | $ | 649,760 | $ | 625,803 | |||||||||||||||||||
Less: FTE adjustment (3) | (15,357) | (13,611) | |||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-18 | CIULLA JOHN R | Chairman and CEO | Sell | -8,000 | $71.67 | -$573,376 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-13 10-Q expected by 2026-08-14 (in 59 days)
- ~2026-11-12 10-Q expected by 2026-11-13 (in 150 days)
- ~2027-02-27 10-K expected by 2027-03-01 (in 257 days)
- ~2027-05-02 10-Q expected by 2027-05-03 (in 321 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-18 8-K Other Events
- 2026-04-30 10-Q Quarterly Report
- 2026-04-28 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-24 10-K/A Annual Report (Amended)
- 2026-02-27 10-K Annual Report
- 2026-02-06 8-K Material Agreement Entered; Financial Statements and Exhibits
- 2026-02-03 8-K Other Events; Financial Statements and Exhibits
- 2026-01-23 8-K/A Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-01-23 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-01-09 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-11-10 10-Q Quarterly Report
- 2025-10-24 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-10-17 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-09-11 8-K Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2025-08-11 10-Q Quarterly Report