Webster Financial (WBS) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in 2025, including 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), with robust growth across key business lines.

• Strategic focus on execution, client delivery, and enhancing operating capabilities, with continued investment in non-traditional banking verticals and technology.

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

• Celebrated 90th anniversary, marking record milestones and scale.

Financial highlights

• Full-year ROTCE was 17.26% and ROA was 1.24%; Q4 ROTCE was 17.10% and ROA was 1.23%.

• EPS increased 10.4% year-over-year; loans grew 7.8% and deposits 6.2% year-over-year.

• Tangible book value per share rose 12.9% year-over-year to $37.20.

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

• Net interest margin for Q4 was 3.35%, with net interest income of $632.9 million.

Outlook and guidance

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

• Net interest income expected at $2.57-$2.63 billion; fee income at $390-$410 million; expenses at $1.46-$1.48 billion.

• CET1 ratio target to move toward 10.5% after stress testing; near-term target of 11%.

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