WEBSTER FINANCIAL CORPWBS
WEBSTER FINANCIAL CORP Segments Disclosure
Segment Reporting
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. The Company’s CODM is the Chairman and Chief Executive Officer. The CODM uses income before income taxes and the provision for credit losses, referred to as PPNR, to allocate resources, including financial and capital resources, employees, and property, for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating resources to the segments. The CODM also uses PPNR to assess the performance of each segment and in the compensation of certain employees.
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.
Consumer Banking delivers customized financial solutions to individuals, families, and small to mid-sized businesses through it 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.
Corporate and Reconciling Category
Certain Treasury activities and other corporate and functional divisions, such as information technology, human resources, risk management, bank operations, and the operations of interSYNC, and amounts required to reconcile non-GAAP profitability metrics to those reported in accordance with GAAP are included in the Corporate and Reconciling category.
In addition to the amounts required to reconcile non-GAAP profitability metrics (i.e., estimates for FTP, allocations of equity capital) to those reported in accordance with GAAP, revenues reported in the Corporate and Reconciling category also include gains/losses from sales of investments securities, extinguishments of long-term debt, certain swaps, and bank-owned life insurance, and immaterial revenues from contracts with customers attributable to interSYNC. Neither the Treasury function nor interSYNC operations meet the definition of an operating segment, and therefore, are not considered for determining reportable segments.
Total assets reported in the Corporate and Reconciling category consists primarily of cash and cash equivalents, investment securities, FHLB/FRB stock, and other assets. The ACL on loans and leases is also reported in Total assets in the Corporate and Reconciling category. A provision for credit losses is allocated from the Corporate and Reconciling category to Commercial Banking and Consumer Banking based on the expected loss content of their specific loan and lease portfolios over a 3-year period (non-GAAP). There is no provision for credit losses associated with Healthcare Financial Services since that segment does not originate nor acquire loans and leases. Business development expenses, which include merger-related expenses and other strategic initiatives and restructuring costs, are also generally included in the Corporate and Reconciling category.
Change in Reportable Segments
From time to time, the Company may make reclassifications among the reportable segments to more appropriately reflect management’s view of the business and/or based on changes in the Company’s organizational structure or product lines. Accordingly, the results derived are not necessarily comparable with similar financial information published by other financial institutions. Additionally, because of the interrelationships of the segments, the financial information presented is not indicative of how the segments would perform if they operated as independent entities.
Effective January 1, 2024, the Company realigned certain of its Business Banking operations to better serve its customers and deliver operational efficiencies. Under this realignment, $1.5 billion of loans and $2.2 billion of deposits were reassigned, and $77.2 million of goodwill was reallocated on a relative fair value basis, from Commercial Banking to Consumer Banking. There was no goodwill impairment as a result of this realignment. Amounts for the year ended December 31, 2023, have been recast accordingly.
With the acquisition of Ametros on January 24, 2024, the Company formed the Healthcare Financial Services reportable segment, which includes the aggregated financial information of the HSA Bank and Ametros operating segments. The financial information presented within Healthcare Financial Services for the year ended December 31, 2023, reflects that only of the HSA Bank operating segment.
Segment Reporting Methodology
The Company uses an internal profitability reporting system to generate PPNR by reportable segment, which is comprised of direct revenues, direct expenses, estimates for FTP, and allocations for equity capital, net operating costs, and total support costs. Since the majority of each reportable segment’s revenue is interest, each segment’s interest revenue is reported net of its interest expense (“net interest income”). Estimates for FTP and allocations of equity capital and non-interest expense, certain of which are subjective in nature, are periodically reviewed and refined. Equity capital is allocated using a combination of risk-weighted asset and management assessment methodologies across the differentiated lines of business. Net operating costs and total support costs, which reflect costs for shared services and back-office support areas, are allocated using an activity and driver-based costing process. The full profitability measurement reports, which are prepared for each reportable segment and reviewed by the CODM on a monthly basis, reflect non-GAAP reporting methodologies. The differences between full profitability and GAAP results are reconciled in the Corporate and Reconciling category.
The goal of FTP is to encourage loan and deposit growth consistent with the Company’s overall profitability objectives. The FTP process considers the specific interest rate risk and liquidity risk of financial instruments, other assets, and other liabilities included in each reportable segment. Loans and deposits are assigned FTP rates, and segments are charged a cost to fund loans and are paid a credit for deposit funds provided. Consideration is given to the origination date and the earlier of the maturity date or the repricing date of a financial instrument to assign an FTP rate for loans and deposits originated each day. Overall, the FTP process reflects the transfer of interest rate risk exposure to the Treasury function included within the Corporate and Reconciling category, where such exposures are centrally managed.
Financial Information
The following table presents certain balance sheet financial information for the Company’s reportable segments:
| December 31, 2025 | ||||||||||||||||||||
| (In thousands) | Commercial Banking | Healthcare Financial Services | Consumer Banking | Corporate and Reconciling | Consolidated Total | |||||||||||||||
Goodwill (1) | $ | 1,960,363 | $ | 315,124 | $ | 622,035 | $ | — | $ | 2,897,522 | ||||||||||
| Total assets | 46,169,398 | 535,453 | 13,871,139 | 23,497,673 | 84,073,663 | |||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| (In thousands) | Commercial Banking | Healthcare Financial Services | Consumer Banking | Corporate and Reconciling | Consolidated Total | |||||||||||||||
Goodwill (2) | $ | 1,960,363 | $ | 285,670 | $ | 622,035 | $ | — | $ | 2,868,068 | ||||||||||
| Total assets | 43,010,580 | 488,194 | 12,932,260 | 22,594,039 | 79,025,073 | |||||||||||||||
(1)The allocation of the purchase price for the SecureSave acquisition was considered preliminary at December 31, 2025. The $29.5 million of preliminary goodwill recorded has been allocated entirely to Healthcare Financial Services.
(2)The allocation of the purchase price for the Ametros acquisition was considered final at December 31, 2024. The $228.2 million of goodwill recorded was allocated entirely to Healthcare Financial Services.
The following tables present certain income statement information for the Company’s reportable segments:
| Year ended December 31, 2025 | |||||||||||||||||
| (In thousands) | Commercial Banking | Healthcare Financial Services | Consumer Banking | Totals | |||||||||||||
| Net interest income | $ | 1,296,523 | $ | 392,887 | $ | 839,393 | $ | 2,528,803 | |||||||||
| Non-interest income | 129,750 | 112,413 | 100,233 | 342,396 | |||||||||||||
| Total segment revenues | 1,426,273 | 505,300 | 939,626 | 2,871,199 | |||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Corporate and reconciling | 28,214 | ||||||||||||||||
| Total consolidated revenues | 2,899,413 | ||||||||||||||||
| Less: | |||||||||||||||||
| Compensation and benefits | 205,581 | 95,999 | 153,890 | ||||||||||||||
Occupancy (1) | — | — | 55,515 | ||||||||||||||
Technology and equipment (1) | 9,337 | 32,111 | 12,206 | ||||||||||||||
| Marketing | — | — | 8,340 | ||||||||||||||
Other segment items (2) (3) | 218,782 | 96,467 | 269,912 | ||||||||||||||
| Segment pre-tax, pre-provision net revenue | 992,573 | 280,723 | 439,763 | 1,713,059 | |||||||||||||
| Reconciliation of pre-tax, pre-provision net revenue: | |||||||||||||||||
| Corporate and reconciling | (242,910) | ||||||||||||||||
| Total consolidated pre-tax, pre-provision net revenue | 1,470,149 | ||||||||||||||||
| Total consolidated provision for credit losses | 210,000 | ||||||||||||||||
| Total consolidated income before income taxes | 1,260,149 | ||||||||||||||||
(1)Occupancy and Technology and equipment include, in aggregate, depreciation expense of $0.6 million for Commercial Banking, $5.9 million for Healthcare Financial Services, and $10.0 million for Consumer Banking.
(2)Other segment items for each reportable segment includes:
•Commercial Banking--occupancy, marketing, outside professional services, loan workout expense, foreclosed property expense, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Healthcare Financial Services--occupancy, marketing, outside professional services, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Consumer Banking--outside professional services, loan workout expense, foreclosed property expense, other-non interest expense, allocated net operating costs, and allocated total support costs.
(3)Intangible assets amortization, which is a component of other non-interest expense presented in Other segment items, was $10.7 million for Commercial Banking, $14.0 million for Healthcare Financial Services, and $7.2 million for Consumer Banking.
| Year ended December 31, 2024 | |||||||||||||||||
| (In thousands) | Commercial Banking | Healthcare Financial Services | Consumer Banking | Totals | |||||||||||||
| Net interest income | $ | 1,348,346 | $ | 366,927 | $ | 812,743 | $ | 2,528,016 | |||||||||
| Non-interest income | 143,104 | 110,207 | 113,638 | 366,949 | |||||||||||||
| Total segment revenues | 1,491,450 | 477,134 | 926,381 | 2,894,965 | |||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
Corporate and reconciling (1) | (304,679) | ||||||||||||||||
| Total consolidated revenues | 2,590,286 | ||||||||||||||||
| Less: | |||||||||||||||||
| Compensation and benefits | 199,545 | 90,166 | 146,428 | ||||||||||||||
Occupancy (2) | — | — | 56,102 | ||||||||||||||
Technology and equipment (2) | 8,153 | 33,010 | 11,087 | ||||||||||||||
| Marketing | — | — | 7,835 | ||||||||||||||
Other segment items (3) (4) | 210,769 | 90,913 | 249,950 | ||||||||||||||
| Segment pre-tax, pre-provision net revenue | 1,072,983 | 263,045 | 454,979 | 1,791,007 | |||||||||||||
| Reconciliation of pre-tax, pre-provision net revenue: | |||||||||||||||||
| Corporate and reconciling | (552,000) | ||||||||||||||||
| Total consolidated pre-tax, pre-provision net revenue | 1,239,007 | ||||||||||||||||
| Total consolidated provision for credit losses | 222,000 | ||||||||||||||||
| Total consolidated income before income taxes | 1,017,007 | ||||||||||||||||
(1)The negative revenue for the Corporate and Reconciling Category primarily reflects the impact on net interest income for estimates for FTP and allocations of equity capital, the $136.2 million net loss on sale of investment securities, losses on treasury swaps, and the $16.0 million net loss on sale of the factored receivables portfolio, partially offset by bank-owned life insurance income.
(2)Occupancy and Technology and equipment include, in aggregate, depreciation expense of $0.2 million for Commercial Banking, $5.5 million for Healthcare Financial Services, and $9.5 million for Consumer Banking.
(3)Other segment items for each reportable segment includes:
•Commercial Banking--occupancy, marketing, outside professional services, loan workout expense, foreclosed property expense, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Healthcare Financial Services--occupancy, marketing, outside professional services, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Consumer Banking--outside professional services, loan workout expense, foreclosed property expense, other-non interest expense, allocated net operating costs, and allocated total support costs.
(4)Intangible assets amortization, which is a component of other non-interest expense presented in Other segment items, was $9.3 million for Commercial Banking, $13.4 million for Healthcare Financial Services, and $8.3 million for Consumer Banking.
| Year ended December 31, 2023 | |||||||||||||||||
| (In thousands) | Commercial Banking | Healthcare Financial Services | Consumer Banking | Totals | |||||||||||||
| Net interest income | $ | 1,436,616 | $ | 302,856 | $ | 898,898 | $ | 2,638,370 | |||||||||
| Non-interest income | 125,265 | 88,113 | 114,851 | 328,229 | |||||||||||||
| Total segment revenues | 1,561,881 | 390,969 | 1,013,749 | 2,966,599 | |||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
Corporate and reconciling (1) | (314,993) | ||||||||||||||||
| Total consolidated revenues | 2,651,606 | ||||||||||||||||
| Less: | |||||||||||||||||
| Compensation and benefits | 178,289 | 84,072 | 139,203 | ||||||||||||||
Occupancy (2) | — | — | 57,289 | ||||||||||||||
Technology and equipment (2) | 7,944 | 27,860 | 9,998 | ||||||||||||||
| Marketing | — | — | 6,736 | ||||||||||||||
Other segment items (3) (4) | 208,709 | 56,228 | 256,403 | ||||||||||||||
| Segment pre-tax, pre-provision net revenue | 1,166,939 | 222,809 | 544,120 | 1,933,868 | |||||||||||||
| Reconciliation of pre-tax, pre-provision net revenue: | |||||||||||||||||
| Corporate and reconciling | (698,617) | ||||||||||||||||
| Total consolidated pre-tax, pre-provision net revenue | 1,235,251 | ||||||||||||||||
| Total consolidated provision for credit losses | 150,747 | ||||||||||||||||
| Total consolidated income before income taxes | 1,084,504 | ||||||||||||||||
(1)The negative revenue for the Corporate and Reconciling Category primarily reflects the impact on net interest income for estimates for FTP and allocations of equity capital, the $33.6 million net loss on sale of investment securities, and losses on treasury swaps, partially offset by bank-owned life insurance income.
(2)Occupancy and Technology and equipment include, in aggregate, depreciation expense of $0.4 million for Commercial Banking, $4.5 million for Healthcare Financial Services, and $8.9 million for Consumer Banking.
(3)Other segment items for each reportable segment includes:
•Commercial Banking--occupancy, marketing, outside professional services, loan workout expense, foreclosed property expense, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Healthcare Financial Services--occupancy, marketing, outside professional services, other non-interest expense, allocated net operating costs, and allocated total support costs.
•Consumer Banking--outside professional services, loan workout expense, foreclosed property expense, other-non interest expense, allocated net operating costs, and allocated total support costs.
(4)Intangible assets amortization, which is a component of other non-interest expense presented in Other segment items, was $16.0 million for Commercial Banking, $4.7 million for Healthcare Financial Services, and $9.7 million for Consumer Banking.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.