v3.26.1
Regulatory Capital and Restrictions
 6 Months Ended
Jun. 30, 2026
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Capital and Restrictions Regulatory Capital and Restrictions
Regulatory Capital Requirements
The Company and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators that could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and/or the regulatory framework for prompt corrective action, which applies to the Bank only, both the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated pursuant to regulatory directives. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Quantitative measures established by the Basel III Capital Rules, as adopted in the U.S., to ensure capital adequacy require the Company and the Bank to maintain minimum ratios of CET1 Risk-Based Capital, Tier 1 Risk-Based Capital, Total Risk-Based Capital, and Tier 1 Leverage Ratio, as defined in the regulations. CET1 capital consists of common stockholders’ equity, less deductions for goodwill and other intangible assets, and certain deferred tax adjustments. Under the Basel III Capital Rules, the Company has elected to opt-out of the requirement to include certain components of AOCI in CET1 capital. Tier 1 capital consists of CET1 capital plus preferred stock. Total capital consists of Tier 1 capital and Tier 2 capital, as defined in the regulations. Tier 2 capital includes qualifying subordinated debt and the permissible portion of the ACL.
Both the Company and the Bank were classified as “well-capitalized” at June 30, 2026, and at December 31, 2025.
The following tables provide information on the regulatory capital ratios for the Company and the Bank:
June 30, 2026
 ActualMinimum RequirementWell Capitalized
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Webster Financial Corporation
CET1 Risk-Based Capital$6,826,758 11.71 %$2,623,056 4.5 %$3,788,859 6.5 %
Tier 1 Risk-Based Capital7,110,737 12.20 3,497,408 6.0 4,663,211 8.0 
Total Risk-Based Capital8,254,693 14.16 4,663,211 8.0 5,829,014 10.0 
Tier 1 Leverage Ratio 7,110,737 8.48 3,353,890 4.0 4,192,362 5.0 
Webster Bank
CET1 Risk-Based Capital$7,134,807 12.23 %$2,625,165 4.5 %$3,791,905 6.5 %
Tier 1 Risk-Based Capital7,134,807 12.23 3,500,220 6.0 4,666,959 8.0 
Total Risk-Based Capital7,855,305 13.47 4,666,959 8.0 5,833,699 10.0 
Tier 1 Leverage Ratio 7,134,807 8.51 3,351,691 4.0 4,189,614 5.0 
December 31, 2025
 ActualMinimum RequirementWell Capitalized
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Webster Financial Corporation
CET1 Risk-Based Capital$6,441,440 11.20 %$2,588,039 4.5 %$3,738,279 6.5 %
Tier 1 Risk-Based Capital6,725,419 11.69 3,450,719 6.0 4,600,959 8.0 
Total Risk-Based Capital7,861,688 13.67 4,600,959 8.0 5,751,199 10.0 
Tier 1 Leverage Ratio 6,725,419 8.33 3,230,039 4.0 4,037,549 5.0 
Webster Bank
CET1 Risk-Based Capital$7,007,352 12.19 %$2,586,346 4.5 %$3,735,833 6.5 %
Tier 1 Risk-Based Capital7,007,352 12.19 3,448,461 6.0 4,597,948 8.0 
Total Risk-Based Capital7,720,373 13.43 4,597,948 8.0 5,747,435 10.0 
Tier 1 Leverage Ratio 7,007,352 8.69 3,226,561 4.0 4,033,202 5.0 
Dividend Restrictions
The Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to stockholders and for other cash requirements. Dividends paid by the Bank are subject to various federal and state regulatory limitations. Express approval by the OCC is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels or if the amount would exceed net income for that year combined with undistributed net income for the preceding two years. The Bank paid the Company dividends of $150.0 million and $450.0 million for the three and six months ended June 30, 2026, respectively, and $200.0 million and $300.0 million for the three and six months ended June 30, 2025, respectively, for which no express approval from the OCC was required.
Cash Restrictions
The Bank is required under Federal Reserve regulations to maintain cash reserve balances in the form of vault cash or deposits held at a FRB to ensure that it is able to meet customer demands. The reserve requirement ratio is subject to adjustment as economic conditions warrant. On March 26, 2020, the Federal Reserve reduced the reserve requirement ratios on all net transaction accounts to zero percent. As a result, the Bank has not been required to hold cash reserve balances since that date.