Webster Financial (WBS) investor relations material

Executive summary

• Achieved strong Q3 2025 results with net income applicable to common shareholders of $254.1 million ($1.54 per diluted share), record EPS, and return on average tangible common equity of 17.64%.

• Loans grew 2.6% and deposits 2.8% sequentially, with revenue reaching $732.6 million.

• Efficiency ratio was 45.8%, and return on average assets was 1.27%.

• Repurchased 2.2 million shares during the quarter, celebrating the 90th anniversary.

• Strategic focus on diverse balance sheet growth, robust liquidity, and conservative credit positioning.

Financial highlights

• Net interest income increased to $631.7 million, up $10.5 million sequentially and $41.8 million year-over-year.

• Net interest margin declined 4 basis points sequentially to 3.40%.

• Non-interest income was $101 million, up $6 million sequentially and $43.2 million year-over-year, including a $4 million legal settlement.

• Non-interest expense rose $11 million sequentially and $7.7 million year-over-year, mainly due to higher compensation and business development investments.

• Tangible book value per share increased to $36.42, up 3.7% quarter-over-quarter and 9.5% year-over-year.

Outlook and guidance

• Q4 2025 outlook projects ~1% loan growth and ~1% deposit decline due to seasonality, with net interest income expected around $630 million and adjusted non-interest income of $95–$100 million.

• Adjusted expenses forecasted at $355–$360 million; efficiency ratio expected between 45% and 47%.

• Tax rate anticipated at ~21%; CET1 ratio near-term target 11%, long-term 10.5%.

• Full-year loan growth to exceed January guidance, NII at top end of range, and fees/expenses above midpoint.

• Management highlights strong growth, efficiency, and returns, while noting risks from economic, regulatory, and market conditions.