Webster Financial (WBS) investor relations material

Executive summary

• Achieved record 2025 financial performance with adjusted diluted EPS of $5.94 (up 10.4%), tangible book value per share of $37.20 (up 12.9%), and ROTCE of 17.26%.

• Net income applicable to common stockholders was $248.7 million ($1.55 per share) for Q4 2025, with adjusted EPS of $1.59.

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

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

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

Financial highlights

• Full-year net income applicable to common was $1.0B, with reported diluted EPS of $5.90.

• 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 $632.9M, up 0.2% sequentially and 4.0% year-over-year; net interest margin for Q4 was 3.35%.

• Tangible book value per share rose to $37.20 from $36.42 sequentially.

• Adjusted efficiency ratio for the year was 46.0%.

Outlook and guidance

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

• Net interest income projected at $2.57-$2.63 billion, with fee income of $390-$410 million and expenses at $1.46-$1.48 billion.

• Net interest margin expected to remain around 3.35% throughout 2026.

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

• Management expects continued investment in strategic capabilities for further scale and profitability.