Webster Financial Corporation (NYSE:WBS) delivered better-than-expected fourth-quarter results on Friday, supported by solid loan growth that lifted both earnings and revenue above market forecasts.
The bank reported adjusted earnings per share of $1.59 for the quarter, exceeding the analyst consensus of $1.53. Revenue reached $746.2 million, also ahead of expectations of $731.51 million.
Net income attributable to common shareholders totaled $248.7 million, or $1.55 per diluted share, for the quarter ended December 31, 2025. This marked a sharp improvement from $171.8 million, or $1.01 per diluted share, recorded in the same period a year earlier.
Balance sheet momentum remained strong. Total loans and leases climbed to $56.6 billion, reflecting a $1.5 billion increase, or 2.8%, from the previous quarter and a 7.8% rise year over year. Deposits at period end increased to $68.8 billion, up 0.9% sequentially and 6.2% compared with the prior year.
“Webster continued to excel from a fundamental perspective in the fourth quarter, and we enter 2026 from a position of strength,” said John R. Ciulla, chairman and chief executive officer. “It was appropriate that Webster produced record EPS and tangible book value per share in the year of its 90th anniversary.”
Net interest income rose to $632.9 million from $608.5 million in the fourth quarter of 2024, although net interest margin narrowed to 3.35% from 3.44% a year earlier. The provision for credit losses declined to $42.0 million, compared with $63.5 million in the year-ago quarter.
Operational efficiency and profitability also improved. The efficiency ratio stood at 46.95%, while return on average tangible common equity increased to 17.10% from 12.73% a year earlier. Tangible book value per common share rose to $37.20, up from $32.95 at the end of 2024.