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Webster Financial Posts Strong Q4 Results, Sets 2026 Outlook as Shares Fall

Executives emphasized balance‑sheet gains in 2025.

Overview

  • Webster reported fourth-quarter net income of $248.7 million on revenue of $746.2 million, with net interest income of $632.9 million and a 3.35% net interest margin.
  • Management issued 2026 guidance calling for 5%–7% loan growth, 4%–6% deposit growth, net interest income of $2.57–$2.63 billion, mid‑3.30s net interest margin, fees of $390–$410 million, and expenses of $1.46–$1.48 billion.
  • On credit, the quarter included a $42 million provision as nonperforming loans declined, and leadership flagged ring‑fenced office and healthcare services portfolios with an expected 25–35 basis point annualized charge‑off range.
  • For 2025, management cited a 17% return on tangible common equity, a 1.2% return on assets, a 13% increase in tangible book value per share, and 10.9 million shares repurchased.
  • Despite what the company described as solid execution, WBS shares traded down 3.39% to $63.97 on Friday.