🔒Webster Bank eyes growth, opportunity in New Haven region and beyond post-merger

Fresh off completing a $10.3 billion merger with New York’s Sterling Bancorp, Webster Bank leaders say they see opportunities for growth ahead, including in Greater New Haven.

Timothy D. Bergstrom, the bank’s regional president for Connecticut, said customers and the community can expect to benefit from the merger.

“We do have scale now as a larger institution to grow with our clients, to be able to handle their needs as they continue to grow and expand,” Bergstrom said. “We have a strong record and history in Connecticut helping businesses, particularly in Greater New Haven.”

Webster and Sterling in early February announced they had finalized their merger, creating a combined company with $67.6 billion in assets, and Webster moved its headquarters from Waterbury to Stamford. As of July, Webster had 202 branches throughout its Northeast footprint.

Webster President and CEO John Ciulla said he expects the merger will position the bank to grow its commercial banking business, improve customer experience, and boost its financial performance.

In July, parent company Webster Financial attributed increases in its balance sheet and income statement as being largely due to the merger.

The company announced second quarter profits of $178.1 million and total revenue of $607.6 million. Its loan and lease balance at the end of the quarter was $45.6 billion.

“The second quarter is a great reflection of Webster’s potential,” Ciulla told investors in a July briefing. “The earning power of our new company is materializing in the first full quarter following the close of our merger with Sterling. We exhibited strong and diverse loan growth.”

Ciulla said the company in the second quarter began consolidating back office systems, including mortgage servicing, treasury and management, and payroll.

Looking ahead

What changes can customers expect in the coming months and years?

The bank is putting an emphasis on commercial and industrial middle market lending. It is expanding the technology it offers to consumers, and building its community and philanthropic efforts, according to bank leaders.

Webster has recruited a longtime banker from the New Haven region to help with the bank’s local growth efforts.

In May, Webster tapped David Ferretti to be its senior vice president, market manager for New Haven, and he is now leading the Greater New Haven region’s commercial banking activities.

Ferretti has worked in the local market for several years, including with People’s United Bank in New Haven.

Webster Bank leaders have said Ferretti’s appointment represents an expansion of its commitment to commercial and industrial middle market banking.

“As I think of our Greater New Haven market, I think of a market where we have been for a long time, where we have been involved and invested, where we have a very meaningful presence in the business community,” Bergstrom said. “I see that continuing and becoming stronger with bringing Dave on board and having him solely focused on the New Haven market, along with our other seasoned professionals who are based in New Haven.”

Ferretti’s responsibility is to foster and develop relationships with middle market companies, particularly companies with revenues in excess of $25 million. Webster Bank provides working capital, equipment and acquisition financing, as well as cash, treasury and wealth management-related services.

Bank officials anticipate the Sterling merger will allow Webster to expand its products and services and invest in technology.

In May, for example, Webster entered into an agreement with Save, a Texas-based fintech company that works to help people earn higher returns on their savings accounts.

“We will be looking to expand our suite of cash management services,” Bergstrom said. “We’ll be making it easier for customers to control their cash flow. We already offer mobile banking for commercial as well as other consumers. We will continue to invest in improvements that will enhance client experience.”

Bank officials said they do not anticipate significant real estate changes. Currently, Webster has 27 banking centers and 53 ATMs in New Haven County, according to bank spokeswoman Elaine K. Ficarra.

“We are constantly evaluating our customers’ preferences,” Bergstrom said. “To the extent that we can reduce the branch square footage, we will look to do that. But there aren’t any widespread plans to consolidate branches at this moment.”

Engaging the community

According to Webster, the merger has also allowed it to increase its community engagement and philanthropic efforts.

In June, parent company Webster Financial announced it would be investing $6.5 billion in the communities it serves over the next three years.

The investment includes $1.35 billion toward making housing affordable, $2.1 billion in community development lending and investments, and $2.1 billion in small business lending with a focus on minority and women-owned businesses. Webster says it will continue supporting programs that address food scarcity, workforce development, financial literacy and more.

Webster also established a new office of corporate responsibility to oversee expanded community engagement efforts made possible by the merger.

“Given our increased scale, we have been able to formally establish an office of corporate responsibility to oversee the company’s community investment, philanthropy efforts and sustainability work,” Ciulla said. “Collectively, we have the ability to provide more for our communities.”

Also in June, Webster announced it now has community liaison officers to support and provide financial education to low-to-moderate income and minority borrowers. The officers will hold workshops and classes on topics such as first-time homebuying and work with Webster’s lending team to increase lending opportunities for consumers.

Webster’s down payment assistance program, for example, aims to assist first-time homebuyers who otherwise might not be able to purchase a house. It is effective for applications taken on or after March 21, 2022, and offers assistance to be used for a down payment or toward closing costs.

The community liaison officers work in partnership with the bank’s new office of corporate responsibility, and they are working to build and maintain relationships with community, charitable and nonprofit organizations.

In Connecticut, the new community liaison officers include Kadie Ortiz in Bridgeport, Claudia Riley in Hartford, and Robert Jaekle in Waterbury. Jaekle is responsible for the New Haven region, bank officials said.