Webster Financial reported fourth-quarter net income applicable to common shareholders of $248.7 million, or $1.55 per diluted share, compared with $171.8 million, or $1.01 per diluted share, in the year-ago period. On an adjusted basis, the company earned $1.59 per share, topping the Zacks Consensus Estimate of $1.52. This result reflected gains on debt redemption and a charitable contribution to the Webster Foundation, which collectively added approximately $0.04 per share to adjusted earnings.

Total revenue for the quarter rose to $745 million, up 13% from $660.98 million a year earlier, driven by net interest income expansion and higher noninterest income. Average loans grew by 9% year-over-year to $22.3 billion, led by strong growth in commercial real estate and middle market lending. Deposits increased by 7% to $28.5 billion, reflecting continued strength in retail and small business relationships and ongoing inflows into cash management accounts.

For the quarter ending December 31, analysts had forecast earnings of $1.53 per share on revenues of $731.66 million, according to Benzinga Pro data. Prior to the release, TD Cowen maintained a Buy rating with a target of $77, while Raymond James raised its target to $73; Keefe, Bruyette & Woods lifted its target to $75. Webster Financial will host its fourth-quarter earnings call before markets open on January 23, where management is expected to discuss the impact of the prime lending rate cut to 6.75% and outline 2026 strategic priorities.