Webster Financial Corporation reported net income applicable to common stockholders of $248.7 million for Q4 2025, up from $171.8 million in Q4 2024. Diluted earnings per share rose to $1.55, a 54% increase year-over-year, while adjusted EPS reached $1.59, exceeding consensus estimates of $1.52. Total revenue grew by 10% compared with the prior year period, driven by higher net interest income and fee income across Commercial Banking and HSA Bank segments.

The company’s low-cost deposit base expanded by 8% sequentially, with demand deposits increasing by $1.1 billion to $25.4 billion. Growth in its Health Savings Account (HSA) franchise contributed $350 million in new deposits during the quarter. Loan balances increased by 6%, totaling $38.7 billion, as commercial real estate and middle-market lending activity picked up. Book value per share improved by 7% year-over-year, reflecting retained earnings and share repurchases of $75 million in Q4.

Webster maintained a nonperforming asset ratio of 0.48%, down from 0.62% at year-end 2024, while net charge-offs remained negligible at 0.05% of average loans. The bank holds $1.3 billion in rent-regulated commercial real estate loans, representing 3.4% of total loans, and has reserved $280 million against this portfolio. Tier 1 common equity ratio stood at 9.8%, exceeding regulatory requirements, and the allowance for credit losses covered 1.55 times total nonperforming loans.