Webster Financial (US:WBS) Yahoo Finance·2026-01-23 16:56Core Viewpoint - Webster Financial reported a year of consistent execution and balance sheet growth in 2025, with expectations for loan and deposit expansion in 2026 while continuing investments in healthcare and payments-related businesses [1] Group 1: 2025 Performance Highlights - CEO John Ciulla stated that Webster achieved a 17% return on tangible common equity (ROTCE) and a 1.2% return on assets (ROA) for the full year [2] - Earnings per share increased by 10% year over year, with loan growth of 8% and deposit growth of 6% [2] - Tangible book value per share grew by 13%, and the company repurchased 10.9 million shares during 2025 [3] Group 2: Loan Portfolio and Asset Quality - Ciulla mentioned aggressive remediation of two isolated pockets of the loan portfolio, with a 5% decline in commercial classified loans compared to the prior year-end [4] - The company reported solid broader asset quality trends, entering 2026 with robust capital and a strong funding and liquidity profile [4] - President and COO Luis Massiani noted a 7% decline in classified commercial loans and an 8% decline in nonperforming loans during the quarter [6] Group 3: Funding and Growth Initiatives - Deposit growth in 2025 was driven by contributions from various sectors, including commercial, consumer, healthcare, and financial services [7] - The company observed increased direct-to-consumer account openings, particularly among Affordable Care Act plan participants, and enhanced mobile and web enrollment to serve this demographic [7] - Massiani highlighted that limited payoff activity contributed to better-than-expected loan growth across a broad range of asset classes [5]