Webster Financial Corporation (NYSE:WBS) Q2 2023 Earnings Call Transcript

Jared Shaw: I think most of the questions were answered. But as you look at the loan yields, you talked about better spreads. Do you think that, that can still move higher as we go through the year, if the Fed moves as expected?

John Ciulla: Yes. We do. Obviously, we’ll get — if we get another rate increase, the reference rates will slide up a bit. But from a credit spread perspective, I think my base case would be that we do. The dynamics are interesting. People are choosing to play in different sectors and different asset classes. And loan demand is sort of unpredictable. It’s slower in a bunch of areas. And there’s some decent demand that we expect in the back half of the year. So I think us and the rest of the industry will continue to be thoughtful about deploying capital. and making sure that we’re getting paid for risk. So I expect that credit spreads and structure from a bank’s perspective, from a lender’s perspective, will continue to modestly improve as we go into the second half Jared.

Glenn MacInnes: Yes. The only thing I would add to that, Jared, is 60% of our book is floating or periodic. And so I think in the quarter, we ended like 606 yield on the book. And so as you look out, again, we’re assuming 25 basis points of the Fed next week. So you’re probably adding a couple of basis points in the third quarter, a couple in the fourth quarter on the long year for the total loan, Cre.

Operator: There are no further questions at this time. I will now turn the call back to John Ciulla.

John Ciulla: Thank you very much for joining us today. We appreciate your continued coverage and interest in the company. Thank you.

Operator: This concludes today’s conference call. You may now disconnect.