Webster Financial (US:WBS)2026-01-23 12:34Financial 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].