The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Sorry I joined a little bit late. So if I repeat anything, just feel free to tell me to review the transcript. But I did think, John, I think I saw you gave the
shared national credit percentage at 12%. Do you happen to have, which you guys are the lead underwriter on, or the agent on.
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Okay. So less than 5% of the 12%.
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Okay. Cool. And do you have a look on what the reserve on the office portfolio is at this point?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Okay. Glenn, could you maybe speak around what the puts and the takes will be as it relates to NII and the NIM going forward? Maybe help me
better understand the cadence of fixed asset repricing throughout the fourth quarter and then through 2024 and what the impact of the loan
yields will be for that?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Got it. And then, John, I know you talked earlier about kind of the leverage loan and the sponsor specialty sponsor book. But I guess I wanted to
better understand kind of like some of the final points on the details of the underwriting there and kind of the things you do to structure those
loans to really give you protection.
And I'm not expecting you to speak to the specific credit. Like you all would underwrite it, credit, files for bankruptcy, but like the ABL FILO notes
in the market are trading at 92%, 93% of par. And so like market obviously expects very little loss. It looks like you guys and the other banks in a
position to kind of get paid back first. And it feels really well collateralized.
So could you just kind of help us better understand the structure of those deals and what you kind of do to help protect yourself in the event that
something goes wrong?
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OCTOBER 19, 2023 / 1:00PM, WBS.N - Q3 2023 Webster Financial Corp Earnings Call
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Got it. And then the last one for me. I just wanted to ask around the HSA book. I feel like this has been a topic that's come up sporadically over the
last several years. But I wanted to ask just because other banks are looking to potentially monetize unique assets that they have.
And so when I look at kind of what's happened in HSA, it feels like some of your nonbank competitors have been able to really kind of pay really
high multiples to acquire other HSA portfolios that otherwise -- I think if they had the same investor base that you do, they wouldn't be able to pay
as much.
And so with the growth in that business line kind of slowing to some extent and the value of it really not showing up in the multiple and it being
tough to kind of inorganically grow that business, just given that you're treated like a bank versus others that are treated like nonbanks. Like how
do you think about maybe monetizing that and doing something more strategic there to help your investors realize the full value of that business?
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