Financial Data and Key Metrics Changes - Webster Financial generated a 17% ROTCE and a 1.2% ROA for the full year 2025, with EPS up 10% year-over-year [6] - Loans grew by 8% and deposits by 6% over the year, while tangible book value per share increased by 13% [6] - The company repurchased 10.9 million shares, enhancing capital distributions to shareholders [6] Business Line Data and Key Metrics Changes - In the fourth quarter, loans increased by $1.5 billion or 2.8%, with a full-year increase of 7.8%, primarily driven by commercial loan categories [12] - Classified commercial loans decreased by 7% and nonperforming loans were down 8%, indicating progress in credit remediation [8][15] - HSA Bank is expected to drive $1 billion-$2.5 billion in incremental deposit growth over the next five years, with $50 million-$100 million growth anticipated in 2026 [10] Market Data and Key Metrics Changes - The overall asset quality remains strong, with a decline in problem assets expected to continue [9] - The company experienced a seasonal decline in public funds of $1.2 billion but backfilled this with corporate deposits [12] - The average cost of deposits decreased to 1.91% from 1.99% in the previous quarter, reflecting competitive pricing [43] Company Strategy and Development Direction - Webster Financial's strategy in 2025 focused on execution and enhancing operational capabilities while investing in non-traditional banking verticals [6] - The company aims to maintain growth while ensuring resiliency and adaptability in a supportive macroeconomic environment [20] - Investments are being made in technology and marketing to enhance client outreach, particularly in the HSA segment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow sustainably while managing risks effectively [6][20] - The outlook for 2026 anticipates loan growth of 5%-7% and deposit growth of 4%-6%, with expected revenue of $3 billion [17] - Management noted that the banking industry is experiencing positive momentum from macroeconomic and regulatory tailwinds [20] Other Important Information - The company acquired SecureSave, a provider of employer-sponsored emergency savings accounts, which is expected to enhance its offerings in the healthcare vertical [144] - The capital management strategy includes a focus on organic growth and potential share repurchases, with a CET1 target of 10.5% in the long term [96] Q&A Session Summary Question: Update on loan growth and partnership with Marathon - Management indicated that while the partnership is operational, it has not yet materially impacted loan growth, but they remain optimistic about future contributions [28] Question: Expense trends and investments in systems - Most investments are focused on marketing and client outreach to identify potential HSA account holders, with technology investments already in place [30] Question: Impact of potential changes in regulatory thresholds on expenses - Management noted that anticipated changes could provide flexibility in capital allocation, but overall strategic growth plans remain unchanged [34] Question: NIM trajectory for early 2026 - The company expects to maintain a NIM of around 335 basis points throughout 2026, with some seasonal variability [38] Question: Loan growth guidance and competition - Management explained that the 5%-7% loan growth guidance reflects a balance between growth and profitability, considering competitive pressures [61] Question: Non-interest-bearing deposits trend - There is a slowing pace in reductions of non-interest-bearing deposits, indicating a potential inflection point [113]

Core Viewpoint - Webster Financial (WBS) reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and showing an increase from $1.43 per share a year ago, representing an earnings surprise of +4.64% [1] Financial Performance - The company posted revenues of $746.2 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.37%, compared to $660.97 million in the same quarter last year [2] - Over the last four quarters, Webster Financial has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - Webster Financial shares have increased approximately 5.2% since the beginning of the year, outperforming the S&P 500, which gained 1% [3] - The current Zacks Rank for Webster Financial is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.52 on revenues of $730.76 million, and for the current fiscal year, it is $6.51 on revenues of $3.02 billion [7] - The estimate revisions trend for Webster Financial was mixed ahead of the earnings release, and future changes in estimates will be closely monitored [6][7] Industry Context - The Banks - Northeast industry, to which Webster Financial belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Highlights - Full year adjusted Return on Average Assets (ROAA) was 1.24%[2] and Return on Average Tangible Common Equity (ROATCE) was 17.26%[2] - Adjusted diluted Earnings Per Share (EPS) grew 10.4% year-over-year to $5.94[4] - Tangible book value per share grew 12.9% year-over-year to $37.20[4] Balance Sheet Growth - Total loans increased by 7.8% year-over-year[4], representing an increase of $4.1 billion[14] - Total deposits increased by 6.2% year-over-year[4], representing an increase of $4.0 billion[19] - Loans grew by 2.8% quarter-over-quarter[5,6,13], representing an increase of $1.5 billion[13] - Deposits grew by 0.9% quarter-over-quarter[5,6,17,18], representing an increase of $0.6 billion[18] Key Ratios - The loan-to-deposit ratio was 82.3%[5,6,8,10] - Net Interest Margin (NIM) was 3.35%[5,6] - Common Equity Tier 1 (CET1) ratio was 11.22%[5,6,8] - Tangible Common Equity (TCE) ratio was 7.42%[5,6,8] Income Statement - Pre-provision net revenue (PPNR) was $371.0 million[5] - Net income applicable to common was $254.7 million[5] - Diluted EPS was $1.59[5] - Efficiency ratio was 47.0%[5] Asset Quality - Commercial classified loans decreased by 5.0% year-over-year[4] - Criticized loans decreased by 6.2% quarter-over-quarter[5,6] - Classified loans decreased by 6.7% quarter-over-quarter[5,6] - Net charge-off ratio was 35 bps[5,6] Capital Management - The company repurchased 10.9 million shares during the full year[4] and 3.6 million shares during the fourth quarter[5,6] Outlook - The company expects full year loan growth of 5% to 7%[61] and deposit growth of 4% to 6%[61] - The company expects full year net interest income (NII) of $2.57 billion to $2.63 billion[61]

Financial Performance - Net income applicable to common stockholders for Q4 2025 was $248.7 million, or $1.55 per diluted share, compared to $171.8 million, or $1.01 per diluted share in Q4 2024, representing a 44.8% increase in net income [2]. - Adjusted EPS for Q4 2025 was $1.59, up from $1.43 in Q4 2024, reflecting a 11.2% year-over-year growth [3]. - Net income for Q4 2025 was $255,820,000, a slight decrease from $261,217,000 in Q3 2025, but an increase from $177,766,000 in Q4 2024 [33]. - Earnings per diluted common share increased to $1.55 in Q4 2025, compared to $1.30 in Q4 2024 [33]. - Adjusted net income for Q4 2025 was $258,222 thousand, compared to $263,589 thousand in Q3 2025, reflecting a decrease of 2.6% [46]. - Adjusted return on average tangible common stockholders' equity for the three months ended December 31, 2025, is 17.50% [48]. Revenue and Income - Total revenue for Q4 2025 was $746.2 million, with a net interest income of $632.9 million, compared to $608.5 million in Q4 2024, indicating a 4.0% increase [4]. - Total non-interest income was $113.4 million, an increase of $60.9 million compared to $52.5 million in Q4 2024, driven by gains on debt redemption [7]. - Total interest income for Q4 2025 was $1,019,132, an increase from $995,087 in Q4 2024, representing a growth of 1.1% year-over-year [36]. - Non-interest income for Q4 2025 reached $113,350, significantly higher than $52,507 in Q4 2024, marking a 115% increase [37]. Assets and Liabilities - The company has over $84 billion in total consolidated assets [24]. - Total assets reached $84,073,663,000 as of December 31, 2025, up from $79,025,073,000 a year earlier [35]. - Total loans and leases increased to $56,597,110,000 in Q4 2025, compared to $52,505,168,000 in Q4 2024 [35]. - Total deposits increased to $68,759,813,000 as of December 31, 2025, compared to $68,175,644,000 in September 30, 2025 [47]. - The total liabilities for the three months ended December 31, 2025, were $73,887,951 thousand, with total stockholders' equity of $9,513,033 thousand [38]. Credit Quality - The provision for credit losses was $42.0 million, a decrease from $44.0 million in the prior quarter and $63.5 million a year ago [8]. - Non-performing assets decreased to $502,156,000 in Q4 2025 from $545,327,000 in Q3 2025 [33]. - The allowance for credit losses on loans and leases was $719,411,000, representing 1.27% of total loans and leases [33]. - Non-performing loans and leases totaled $500,684 thousand as of December 31, 2025, down from $543,928 thousand in the previous quarter, indicating a decline of 7.9% [45]. - Total past due loans and leases amounted to $66,486 thousand as of December 31, 2025, compared to $65,628 thousand in the previous quarter, representing an increase of 1.3% [45]. Expenses - Total non-interest expense was $383.2 million, up from $340.4 million in Q4 2024, primarily due to increased investments in human capital and technology [9]. - Non-interest expense increased by $9.6 million to $128.8 million, an 8.1% rise year-over-year, driven by technology investments and employee-related expenses [22]. - Total non-interest expense for the full year 2025 was $1,429,264, compared to $1,351,279 in 2024, indicating a rise of 5.8% [36]. Efficiency and Ratios - The common equity tier 1 ratio was 11.22%, down from 11.39% in the prior quarter and 11.54% a year ago [16]. - The efficiency ratio improved to 46.95% in Q4 2025 from 45.79% in Q3 2025, showing a slight increase in operational efficiency [46]. - The tangible book value per common share increased to $37.20, compared to $32.95 a year ago, reflecting a 12.0% increase [16]. - The tangible equity ratio for December 31, 2025, is 7.77%, slightly down from 7.86% in September 30, 2025 [47]. Future Outlook - Forward-looking statements indicate potential uncertainties and risks affecting future performance [27]. - The conference call for the fourth quarter 2025 earnings announcement is scheduled for January 23, 2026 [25].

Core Viewpoint - Webster Financial Corporation reported a significant increase in net income for the fourth quarter of 2025, highlighting strong financial performance compared to the previous year [1] Financial Performance - The net income applicable to common stockholders for the quarter ended December 31, 2025, was $248.7 million, or $1.55 per diluted share, representing an increase from $171.8 million, or $1.01 per diluted share, for the same quarter in 2024 [1] - The results for the fourth quarter of 2025 included gains on debt redemption and a charitable contribution to the Webster Foundation [1]

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 54.3, remaining in the "Neutral" zone, up from 52.3 [6] - U.S. stocks experienced a positive session, with the Dow Jones index gaining over 300 points amid easing geopolitical concerns [1] Company Performance - Meta Platforms Inc. saw a jump of more than 5% due to Jefferies highlighting an attractive valuation discount [2] - Procter & Gamble surged around 3% after reporting stronger-than-expected earnings [2] - General Aerospace experienced a decline of over 7% despite exceeding earnings estimates [2] Economic Data - U.S. initial jobless claims rose by 1,000 to 200,000 for the week ending Jan. 17 [3] - The U.S. economy grew at an annualized rate of 4.4% in Q3, surpassing the preliminary estimate of 4.3% and marking the strongest growth since Q3 2023 [3] - The PCE price index increased by 0.2% month-over-month in November, consistent with the previous month and market estimates [3] Sector Performance - Most sectors on the S&P 500 closed positively, with communication services, consumer discretionary, and information technology stocks showing the largest gains [4] - Real estate and utilities stocks closed lower, bucking the overall market trend [4] - The Dow Jones closed at 49,384.01, up around 307 points, while the S&P 500 rose 0.55% to 6,913.35, and the Nasdaq Composite gained 0.91% to 23,436.02 [4] Upcoming Earnings - Investors are anticipating earnings results from Booz Allen Hamilton Holding Corp., Webster Financial Corp., and Slb NV [5]

Core Viewpoint - Webster Financial Corporation is set to release its fourth-quarter earnings results on January 23, with expectations of increased earnings and revenue compared to the previous year [1]. Earnings Expectations - Analysts predict quarterly earnings of $1.53 per share, an increase from $1.43 per share in the same period last year [1]. - The consensus estimate for quarterly revenue is $731.66 million, up from $660.98 million a year earlier [1]. Stock Performance - Webster Financial shares rose by 0.5% to close at $66.22 [2]. Analyst Ratings - TD Cowen analyst maintained a Buy rating, lowering the price target from $78 to $77 [3]. - Raymond James analyst maintained an Outperform rating, raising the price target from $65 to $73 [3]. - Keefe, Bruyette & Woods analyst maintained an Outperform rating, increasing the price target from $70 to $75 [3]. - Barclays analyst maintained an Overweight rating, raising the price target from $78 to $80 [3]. - Truist Securities analyst maintained a Buy rating, cutting the price target from $69 to $67 [3].

Core Viewpoint - Webster Financial Corporation is set to release its fourth-quarter earnings results on January 23, with expectations of increased earnings and revenue compared to the previous year [1]. Earnings Expectations - Analysts predict quarterly earnings of $1.53 per share, an increase from $1.43 per share in the same period last year [1]. - The consensus estimate for quarterly revenue is $731.66 million, up from $660.98 million a year earlier [1]. Stock Performance - Webster Financial shares rose by 0.5% to close at $66.22 [2]. Analyst Ratings - TD Cowen analyst maintained a Buy rating, lowering the price target from $78 to $77 [3]. - Raymond James analyst maintained an Outperform rating, raising the price target from $65 to $73 [3]. - Keefe, Bruyette & Woods analyst maintained an Outperform rating, increasing the price target from $70 to $75 [3]. - Barclays analyst maintained an Overweight rating, raising the price target from $78 to $80 [3]. - Truist Securities analyst maintained a Buy rating, cutting the price target from $69 to $67 [3].

Webster Financial Corporation (NYSE:WBS) is one of the best large cap value stocks to buy in 2026. On January 12, RBC Capital raised its price target on Webster Financial to $72 from $70 and maintained an Outperform rating. In its Q4 2025 earnings preview, RBC Capital updated its regional bank price targets while maintaining a constructive stance on the sector’s fundamentals. The firm expects a stable outlook compared to Q3, driven by improvements in loan volume and revenue growth. On January 9, Truist al ...

Core Viewpoint - Webster Financial Corporation (NYSE:WBS) is experiencing a notable upward trend in its consensus price target, indicating growing analyst confidence in the company's performance and growth potential [1][6]. Group 1: Price Target Trends - The average price target for WBS increased to $103 last month, reflecting positive sentiment among analysts [2]. - A year ago, the average price target was $81, showing a significant increase over the past year, suggesting analysts have become increasingly bullish on the stock [4]. - The average price target rose from $97.25 in the last quarter, indicating a steady increase and growing optimism about the company's prospects [3]. Group 2: Financial Performance - Webster Financial reported a net income of $254.1 million in the latest quarter, showcasing its financial strength [2][6]. - The company has demonstrated strong asset quality and solid earnings momentum, contributing to the positive outlook [6]. - Significant growth in deposits and loans has been observed, further enhancing the company's positive sentiment despite a slightly higher price-to-earnings multiple compared to peers [3][6]. Group 3: Future Outlook - Upcoming earnings reports and company announcements, including the fourth quarter 2025 earnings release scheduled for January 23, 2026, are important events that could influence analyst sentiment and stock price targets [5].