WEBSTER FINANCIAL CORPWBS

WEBSTER FINANCIAL CORP Earnings Per Share Disclosure

10-KFiled Feb 27, 20262 min read
Earnings Per Common Share
The following table summarizes the calculation of basic and diluted earnings per common share:
 Years ended December 31,
(In thousands, except per share data)202520242023
Net income$1,002,802 $768,707 $867,840 
Less: Preferred stock dividends16,650 16,650 16,650 
  Income allocated to participating securities11,291 7,981 7,922 
Net income applicable to common stockholders$974,861 $744,076 $843,268 
Weighted-average common shares outstanding - basic164,842 169,820 171,775 
Add: Effect of dilutive stock options and restricted stock364 372 108 
Weighted-average common shares - diluted165,206 170,192 171,883 
Earnings per common share - basic$5.91 $4.38 $4.91 
Earnings per common share - diluted5.90 4.37 4.91 
Earnings per common share is calculated under the two-class method in which all earnings, distributed and undistributed, are allocated to common stock and participating securities based on their respective rights to receive dividends. The Company may provide for the grant of stock options, stock appreciation rights, restricted stock, performance-based stock, and stock units to eligible employees and directors under its stock incentive plan. Holders of restricted stock are entitled to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities.
Potential common shares from performance-based restricted stock that were not included in the computation of diluted earnings per common share because they were anti-dilutive under the treasury stock method were zero, zero, and 204,945 for the years ended December 31, 2025, 2024, and 2023, respectively. Additional information regarding the issuance of stock awards under the Company’s stock incentive plan can be found within Note 19: Stock-Based Compensation Plans.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Feb 27, 2024
2022Mar 10, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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