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Press Release WEBSTER FINANCIAL CORPORATION Webster Financial Corporation | 145 Bank Street | Waterbury , CT 06702 | websterbank.com WEBSTER REPORTS SECOND QUARTER 2021 EARNINGS OF $ 1.01 PER DILUTED SHARE WATERBURY , Conn . , July 22 , 2021 - Webster Financial Corporation ( NYSE : WBS ) , the holding company for Webster Bank , N.A. and its HSA Bank division , today announced earnings applicable to common shareholders of $ 91.6 million , or $ 1.01 per diluted share , for the quarter ended June 30 , 2021 , compared to $ 50.7 million , or $ 0.57 per diluted share , for the quarter ended June 30 , 2020 . Earnings per diluted share would have been $ 1.21 for the quarter ended June 30 , 2021 , adjusting for $ 18.2 million ( $ 17.6 million after tax ) of charges related to merger and strategic optimization initiatives . " We generated strong business performance in the quarter , led by loan growth of 3.2 % excluding PPP and an increase in loan originations of $ 0.5 billion or 26 % , ” said John R. Ciulla , chairman and chief executive officer . " We are making significant progress planning for the integration of two great banking organizations , Webster and Sterling , by working together to deliver for customers , communities , bankers and shareholders . " Highlights for the second quarter of 2021 : • Revenue of $ 293.6 million . • • • • • • Loan growth of 3.2 percent linked quarter , excluding Paycheck Protection Program ( PPP ) loans , led by commercial and commercial real estate which increased 3.8 percent . Originated $ 2.4 billion in loans , up 26.4 percent linked quarter . Excluding PPP loans , originations totaled $ 2.3 billion , up 71.5 percent linked quarter . Current Expected Credit Loss ( CECL ) benefit of $ 21.5 million with a reserve decrease of $ 20.4 million compared to the prior quarter , resulting in an allowance coverage of 1.43 percent , or 1.49 percent excluding $ 0.8 billion of PPP loans . Deposit growth of $ 2.5 billion , or 9.5 percent from a year ago , with growth of $ 557.6 million in demand deposits and $ 536.6 million in HSA deposits . Charges related to merger and strategic optimization initiatives totaled $ 18.2 million . Net interest margin of 2.82 percent . Efficiency ratio ( non - GAAP ) of 56.6 percent . “ In the quarter , credit trends continue to be favorable , resulting in a reserve decrease of $ 20.4 million , " said Glenn MacInnes , executive vice president and chief financial officer . “ During the quarter , we continued to make progress on our strategic initiatives and remain on track to deliver an 8 % to 10 % reduction in run rate core non - interest expense by the end of the fourth quarter 2021. "