Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference Transcript

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

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So maybe, John, kicking it off, this is obviously your first time being at the conference. Again, thank you for joining us. And I think most people know you guys, but to the extent maybe some attendees could be less familiar with the company, do you want to just provide a quick overview of the bank?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So you talked about the healthcare businesses. I think a unique attribute of your franchise is the healthcare services segment. Maybe just talk a little bit about the strategic value of those businesses and how it fits into the broader company.

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So as we are here wrapping up 2025, maybe just spend a minute talking about some of the notable accomplishments for the year, what are areas that could have gone better, and what were some of the key accomplishments for the bank over the course of the year.

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So we are going to round out 2025 in the next couple of weeks. We are obviously two-plus months into the quarter. Maybe just talk a little bit about how 4Q is shaping up relative to the expectations that you had discussed on the third-quarter earnings call. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So maybe just to follow up on one of the points that you made, you had spoken about the NIM coming down in the back half of the year, including some softness. Maybe just talk a little bit about what are the key drivers that are driving the softness and how is that impacting your thoughts as we look towards 2026?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So if you think about the balance sheet positioning as it has evolved over time, I think Webster historically had an asset-sensitive balance sheet. Maybe just talk a little bit about how the balance sheet is positioned today, what has changed, and how it is positioned for the environment that we are in, and we are going to continue to be in with a Fed easing but steepening yield curve.

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So maybe let us shift gears and talk about expectations as you look into 2026, and I guess maybe to start, what type of operating environment are you planning for and how does that type of environment inform your strategic planning, and what are those implications for how you are thinking about balance sheet growth?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : Got you. So you talked earlier about becoming Category 4 compliant. What does your 2026 outlook anticipate in terms of regulatory developments, particularly the Category 4 threshold, and how about any changes that play into your strategic planning?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : You talked a little bit earlier about credit problem asset migration at the tail end of last year was a big focus. I guess what do you anticipate as the trajectory of asset quality, whether in the fourth quarter or into '26? And you mentioned a couple of portfolios that had generated disproportionate share of migration. What are some of the other pockets of credit degradation that you're seeing?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : I may have made a joke about the competitor, but you don't know my sense of humor (inaudible) LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : No, that was a helpful answer. You referenced earlier competition from private credit across the industry. And obviously, you've probably seen in certain of your businesses, at the same time, you entered into a partnership with a private credit provider. I think you talked about a lot on the earnings call. Maybe just talk a little bit about the rationale of that partnership -- and how and when does that partnership start to impact Webster's financial performance? And maybe just talk through some of the moving pieces behind it?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So John, obviously, you have a geographic focus in the Northeast, including a presence in and around New York City. Maybe talk a little bit about how you think the recent mayoral election impact the operating environment for banks that do business around here, both in terms of the business climate and also overall asset quality? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : And maybe hitting on another area of policy, this one, National -- current Congress and presidential administration have been proponents of consumer-directed health and HSA accounts specifically, which I think, as we talked about comprise a decent fund amount of your funding, how do you foresee these legislative actions impacting HSA Bank?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : And John, we talked a little bit about that health care segment. And maybe outside of that, as you look ahead to '26, where are you expecting to see the most appealing growth opportunities across the bank?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So let's maybe switch and talk about capital priorities. So your near-term target is 11%. I think you're operating around 11.4%. How do you think about the role of organic plays versus strategic opportunities to return capital to shareholders? How do you think about the balance of those in the near term?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : And maybe just to follow up on that, like what factors would lead you to getting to your long-term target of 10.5%. Obviously, you talked about better growth. I'm assuming that's a big part of it. But maybe you could just talk about the bridge from where we are today to the longer term? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So across the conference, there's been a lot of talk of strategic activity mergers and the like. Obviously, this has been very topical amongst regional banks, given the flood of deals that we've seen recently. I guess, obviously, you went through big merger vehicles, but where do acquisitions fit into your strategic priorities? I know you talked about some healthcare tuck-ins, but what about more traditional bank deals?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : Absolutely. If you look across the banks, we've had a lot of banks come out with return targets over the last quarter or so. You guys have obviously continued to post really strong returns. Maybe just talk about what you consider to be a longer-term profile -- return profile for the bank? And what is allowing you to sustain such high levels of return relative to the peer group? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : So when you were talking about the stock before you mentioned that it had gone up a bit, but remains undervalued. And I think when I looked, it trades at a discount to some other banks, at least on earnings and -- as you go out and talk to investors, you mentioned you had 4 meetings this morning. What would continue to be the themes that you hear as to why that is trading the discount?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : We're in the last minute here of the presentation. And I wanted to close with -- we obviously covered a lot of ground here. But as you look ahead, you mentioned that you're meeting with the Board, and you'll have a more formalized guidance as we get into the earnings call '26 -- in early 2016. But what do you expect to distinguish Webster's performance for investors as we look into next year?

Question: Ryan Hammond - Goldman Sachs Group Inc - Analyst : Well, that was great. I appreciate you coming. Hopefully, we'll have you back here next year, and please join me in thanking John. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:20PM, WBS.N - Webster Financial Corp at Goldman Sachs U.S. Financial Services Conference