Webster Financial Corp Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : I did want to follow up, maybe just on the office line of questioning. So we saw another bank that just reported they sold their medical office portfolio, and it was only like a 2.5% mark. I think maybe it was a bit noncore for them. But I guess could you maybe speak to the puts and takes between maybe keeping even medical office around? Is that a core kind of product for you? Do you have deposits tied to those borrowers? Is that something where as you just evaluate your overall office exposure, even if it's something like medical office, you might look to kind of exit it now as opposed to waiting later down the road? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 20, 2023 / 1:00PM, WBS.N - Q2 2023 Webster Financial Corp Earnings Call

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. I did want to just ask on the available-for-sale portfolio. And I'm sorry if I missed it in the deck, but do you happen to have what the effective duration of that portfolio is? And then could you tell me what the assumed conditional prepayment rate you're using in the duration calculus?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then I just want to ask just the credit seems to be holding up really well, but it seems like last quarter across the industry, there was a couple of one-offs this quarter across the industry. There's a couple more one-offs. And there's some kind of indication that maybe especially in middle market, maybe you're starting to see some pressure on borrower balance sheets. How are your conversations with borrowers, particularly in middle market evolving today? And how are they handling higher interest rates? And what are some of the key areas of pressure that they're identifying?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then one last one for me. And again, I apologize if I missed it. I was hopping from another call. Just on the fee income, I know it's not a huge driver revenue at this point. But I guess, Glenn, what would cause you to kind of be at the high end or the low end of the guidance. And I think the last time we talked, we had spoken maybe about commercial swap activity picking up a little bit in the back half of the year. Do you still feel like that's a possibility?