Webster Financial Corporation

On a full-year basis, Webster reported 17% ROTCE, 1.2% ROA, EPS up 10% year over year, loan growth of 8%, deposit growth of 6%, tangible book value per share up 13%, and 10.9 million shares repurchased. In the fourth quarter, assets were up $880 million, or 1%; loans were up $1.5 billion, or 2.8%; and deposits were up 0.9% sequentially. The December and spot net interest margin were both 3.35%, deposit costs were down 11 bps versus the prior quarter, adjusted PPNR was down $4.9 million sequentially, and net charge-offs were 35 bps. For 2026, management guided to loan growth of 5%-7%, deposit growth of 4%-6%, revenue of about $3 billion at the midpoint, NII of $2.57 billion-$2.63 billion, fees of $390 million-$410 million, and expenses of $1.46 billion-$1.48 billion.

John Ciulla characterized 2025 as a record year and said Webster entered 2026 “on our front foot,” emphasizing execution, franchise building, and disciplined growth. He highlighted the bank’s differentiated model, robust capital and liquidity, and continued investments in nontraditional verticals like HSA Bank, Mitros, InterSync, and new tuck-ins. His tone was confident but measured, with repeated comments about balancing growth with risk-appropriate returns and maintaining flexibility.

Neal Holland focused on the balance sheet, margin, expenses, and capital. He said fourth-quarter assets rose $880 million, loans rose $1.5 billion, deposits rose 0.9%, deposit costs fell 11 bps, and the quarter’s NIM was 3.35%; he also noted adjusted PPNR was down $4.9 million sequentially and tangible book value per share rose to $37.20 from $36.42. For 2026, he gave detailed guidance: loan growth 5%-7%, deposit growth 4%-6%, NII $2.57 billion-$2.63 billion assuming two 25 bps Fed cuts, fees $390 million-$410 million, and expenses $1.46 billion-$1.48 billion. He also said the loan-to-deposit ratio is currently in the low 80% range and he would be surprised if it went above 85%.

Analysts pressed on whether the 5%-7% loan growth guide was conservative, and management said it reflects lower payoffs normalizing, deliberate capital allocation, and a desire to keep growth profitable; they added that sponsor-business competition from private credit is still a headwind but could create upside. Questions on deposit pricing and NIM drew answers that Webster was more aggressive in the mid-December cut, ended December with average deposit costs of $1.91 versus $1.99 for the quarter, and expects about a 30% overall beta through this cycle. Analysts also asked about HSA Bank’s ACA-bronze opportunity, and management said account openings were slightly ahead of last year, with direct-to-consumer growth expected to accelerate through 2026 and technology already in place to support it.