Overview

• U.S. commercial bank's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 was $1.60, slightly missing analyst expectations

• Webster expects Banco Santander acquisition to close in H2 2026

Outlook

• Webster says it will no longer provide a forward-looking financial outlook due to pending acquisition by Banco Santander

Result Drivers

• LOAN AND DEPOSIT GROWTH - Higher average loans and leases, as well as increased deposits, contributed to revenue growth

• NON-INTEREST INCOME - Increase in non-interest income was mainly due to other miscellaneous income and higher loan and lease related fees

• ASSET QUALITY IMPROVEMENT - Decline in non-performing loans and leases, mainly in commercial non-mortgage and commercial real estate, supported results

Company press release: ID:nBw5HhL7ka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$740 mln	$687.86 mln (11 Analysts)
Q2 Adjusted EPS	Miss	$1.60	$1.62 (15 Analysts)
Q2 EPS		$1.56
Q2 CET1 Capital Ratio		11.69%
Q2 Credit Loss Provision		-$31.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Webster Financial Corp is $75.00, about 0.5% below its July 20 closing price of $75.35

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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