Webster Financial (WBS) investor relations material

Executive summary

• Achieved record 2025 financial performance with adjusted diluted EPS of $5.94, up 10.4% year-over-year, and tangible book value per share of $37.20, up 12.9% year-over-year.

• Full-year adjusted ROAA was 1.24% and ROATCE was 17.26%; Q4 adjusted EPS was $1.59.

• Repurchased 10.9 million shares in 2025, including 3.6 million in Q4.

• Continued investment in non-traditional banking verticals and technology, including HSA Bank, Ametros, and SecureSave acquisition.

• Entered 2026 with robust capital, strong funding, and a diversified asset origination platform.

Financial highlights

• Full-year assets up $5 billion (6.4%), with Q4 assets up $880 million (1%).

• Loans grew 7.8% year-over-year and 2.8% sequentially; deposits grew 6.2% year-over-year and 0.9% sequentially.

• Net interest income for Q4 was $632.9 million, up 0.2% sequentially and 4.0% year-over-year; NIM for Q4 was 3.35%.

• Adjusted net income slightly higher than prior quarter, aided by lower provision and tax rate.

• Allowance for credit losses decreased $9 million, with non-performing assets down 8% and commercial classified loans down 7%.

• Charge-offs for the quarter at 35 basis points.

Outlook and guidance

• 2026 guidance: loan growth 5%-7%, deposit growth 4%-6%, revenue midpoint $3 billion.

• Net interest income expected at $2.57-$2.63 billion, assuming 225 bps Fed funds cuts.

• Fee income guidance $390-$410 million; expenses $1.46-$1.48 billion, with Q1 expenses seasonally higher.

• NIM expected to remain around 3.35% for 2026; efficiency ratio target of 46%.

• CET1 ratio near-term target of 11%, long-term target of 10.5%.