Webster delivers financial services to individuals, families, and businesses
primarily from New York to Massachusetts. Webster provides business and consumer
banking, mortgage lending, financial planning, trust, and investment services
through 163 banking offices, 316 ATMs, telephone banking, mobile banking, and
its internet website (www.websterbank.com). Webster also offers equipment financing,
commercial real estate lending, and asset-based lending primarily across the
Northeast. On a nationwide basis, through its HSA Bank division, Webster Bank
offers and administers health savings accounts, and flexible spending, health
reimbursement, and commuter benefit accounts.
The core of our Companys value proposition is the service delivery model that
comes to life through our brand promise, “Living Up to You,” which
encapsulates how our bankers build meaningful relationships with our customers
through a deeper understanding of their lives beyond the bank. This value proposition
is delivered by our bankers who are knowledgeable, are deeply committed to the
communities that we serve, know their markets well, and make decisions at the
local level. We operate with a local market orientation as a community-focused,
values-guided regional bank. Operating objectives include acquiring and developing
high value customer relationships through sales specialists, universal bankers,
marketing, and cross-sale efforts to fuel organic growth and expand contiguously.
Market risk refers to the risk of loss arising from adverse changes in interest
rates, foreign currency exchange rates, commodity prices, and other relevant
market rates and prices, such as equity prices. The risk of loss is assessed
from the perspective of adverse changes in fair values, cash flows, and future
earnings. Due to the nature of its operations, Webster is primarily exposed
to interest rate risk. Websters interest rate sensitivity is monitored on an
ongoing basis by its Asset and Liability Committee (“ALCO”). ALCOs
primary goal is to manage interest rate risk to maximize earnings and net economic
value in changing interest rate and business environments within risk appetite
limits approved by the Board of Directors. ALCO is chaired by Websters Corporate
Treasurer and members include the CEO, CFO and CRO. ALCO activities and findings
are regularly reported to the ERMC, Risk Committee and Board of Directors.
Webster Financial Corporations direct subsidiaries include Webster Bank, Webster
Wealth Advisors, Inc., and Webster Licensing, LLC. The Company also owns all
of the outstanding common stock of Webster Statutory Trust, an unconsolidated
financial vehicle that has issued, and may in the future issue, trust preferred
securities.
Additionally, Webster Banks direct subsidiaries include Webster Mortgage Investment
Corporation ("WMIC"), Webster Business Credit Corporation (“WBCC”),
and Webster Capital Finance, Inc. (“WCF”). Webster Bank is the primary
source of community banking activity within the consolidated group. Residential
mortgage origination activity is conducted through Webster Bank. WMIC is a passive
investment subsidiary whose primary function is to provide servicing on qualified
passive investments, such as residential real estate and commercial mortgage
real estate loans acquired from Webster Bank. Various commercial lending products
are provided through Webster Bank and its subsidiaries to clients primarily
within our regional footprint from New York to Massachusetts. WBCC provides
asset-based lending services. WCF provides equipment financing for end users
of equipment. Webster Bank also has various other subsidiaries that are not
significant to the consolidated group.
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