Webster Financial (WBS) Q4 2025 earnings summary

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%.

• Loans grew 8% and deposits 6% year-over-year, with strong capital and liquidity entering 2026.

• Strategic focus on execution, client delivery, and investments in healthcare and technology verticals.

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

• Celebrated 90th anniversary, with continued investment in non-traditional banking and enhanced operating capabilities.

Financial highlights

• Full-year assets increased by $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 for Q4 was $254.7 million, with adjusted EPS of $1.59.

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

Outlook and guidance

• 2026 guidance: loan growth of 5%-7%, deposit growth of 4%-6%, and NIM expected to remain around 3.35%.

• Expected 2026 revenue of $3 billion, net interest income of $2.57-$2.63 billion, and fee income of $390-$410 million.

• Expenses forecasted at $1.46-$1.48 billion, with efficiency ratio target of 46%.

• Anticipates $1B-$2.5B incremental HSA deposit growth over five years, with $50M-$100M in 2026.

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