Webster Financial Corporation · NYSE:WBS
Webster Financial — Q4 2025 Earnings Presentation
40 slides from Webster Financial's earnings presentation, Jan 23, 2026
Slide 1: Earnings Conference Call Fourth Quarter 2025
Earnings Conference Call Fourth Quarter 2025 January 23, 2026 WEBSTER FINANCIAL CORPORATION
Slide 2: Full Year 2025 Highlights
Full Year 2025 Highlights REPORTED ADJUSTED • Earnings performance remains strong with a full year adjusted ROAA of 1.24% and an ROATCE of $1.5B $1.5B 17.26% PPNR PPNR Record EPS and tangible book value per share ◦ Adjusted diluted EPS grew 10.4% YoY to $5.94 $1.0B $1.0B NET INCOME APPLICABLE TO COM
Slide 3: Fourth Quarter 2025 Highlights
Fourth Quarter 2025 Highlights REPORTED ADJUSTED • Robust balance sheet growth: ◦ Loans +2.8% LQ $363.0M $371.0M ◦ Deposits +0.9% LQ PPNR PPNR $248.7M $254.7M • Loan to deposit ratio 82.3% • NIM of 3.35% • Strong capital ratios: NET INCOME APPLICABLE TO COMMON NET INCOME APPLICABLE TO COMMON ◦ ◦ CET
Slide 4: Diversified and Stable Deposit Profile
Diversified and Stable Deposit Profile Consumer Bank / Commercial Bank Corporate • 195 financial centers • Sophisticated • Longstanding top • Leading • Tech-enabled cash • Specialized complemented by an treasury services player nationally, professional sweep program treasury activities efficient dig
Slide 5: Balance Sheet — End of Period
Balance Sheet — End of Period ($ in millions) 4Q25 Increase / (Decrease) 3Q25 4Q24 Key Observations Cash and interest-bearing deposits $ 2,450 $ (613) $ 375 • Securities portfolio: Securities 17,979 (31) 528 ◦ AFS $10.0 billion, 4.76% yield, duration of 4.1 years Commercial loans 45,230 1,406 3,162
Slide 6: Loans
Loans ($ in millions, balances end of period) Loan Growth of 2.8% LQ LQ growth of $1.5 billion or 2.8% LQ Change YOY Change LQ Change YOY Change • Total loans up $1.5 billion from the prior quarter, with Portfolio 4Q25 growth across all categories ($) ($) (%) (%) C&I $ 15,437 $ 829 $ 1,702 5.7 % 12.
Slide 7: Deposits
Deposits ($ in millions, balances end of period) Deposit Growth of 0.9% LQ LQ growth of $0.6 billion or 0.9% LQ Change YOY Change LQ Change YOY Change • Deposit growth of $0.6 billion, with seasonal Public Funds 4Q25 outflows replaced with Corporate deposits, diverse growth ($) ($) (%) (%) in other
Slide 8: Income Statement
Income Statement GAAP to Adjusted Favorable / Reported Adjusted (Unfavorable) Key Observations on Adjusted I/S ($ in millions, except EPS) 4Q25 Adjustments 4Q25 3Q25 Net interest income $ 632.9 $ — $ 632.9 $ 1.2 • Net income down $0.6 million from 3Q25; diluted EPS up Non-interest income 1 113.4 (9.
Slide 9: 4Q25 Net Income Applicable to Common
4Q25 Net Income Applicable to Common GAAP to Adjusted Reconciliation ($ in millions) Pre-Tax After Tax Diluted EPS Reported (GAAP) $ 321.0 $ 248.7 $ 1.55 Gains on debt redemption (9.8) (7.2) (0.04) Charitable contribution to the Webster Foundation 20.0 14.6 0.09 Asset disposal and contract terminati
Slide 10: Net Interest Income
Net Interest Income ($ in millions) Linked Quarter NII $631.7 $632.9 $608.5 • Net interest income totaled $632.9 million, up from prior quarter by $1.2 million or 0.2%, driven by balance sheet growth, partially offset by margin compression 5.53% 5.45% • Temporary higher levels of subordinated debt r
Slide 11: Interest Rate Positioning
Interest Rate Positioning Balance sheet well positioned for up and down rate scenarios Rising vs. Flat Rate NII Scenarios Falling vs. Flat Rate NII Scenarios 0.1% 0.2% 0.2% (0.2)% (0.2)% (0.1)% (1.0)% (1.0)% 3Q25 4Q25 3Q25 4Q25 Ramp Up 100 bps Ramp Up 200 bps Shock Down 100 bps Ramp Down 100 bps * A
Slide 12: Non-Interest Income
Non-Interest Income ($ in millions) $113.4 Adjusted non-interest income increased $2.7 million LQ $109.4 (adj) $103.6 $100.9 • The increase on an adjusted basis was primarily due to benefits from $109.4 (adj) increased client activity fees, direct investment gains, and the credit $103.6 (adj) $100.9
Slide 13: Non-Interest Expense
Non-Interest Expense ($ in millions) $383.2 $365.4 $356.7 (adj) Adjusted expense increased $8.8 million LQ $340.4 $365.4 • The increase was primarily attributable to the ACA Bronze HSA (adj) opportunity, increased performance-based incentives, investments in human capital, investments in technology,
Slide 14: Allowance for Credit Losses on Loans & Leases
Allowance for Credit Losses on Loans & Leases ($ in millions) Provision: $44 Provision: $40 $722 $19 $25 $728 $30 $719 $10 $(38) $(49) Coverage % 1.35% 1.32% 1.27% 6/30/2025 3Q Net Charge- Loan Balances 3Q Macro/ 9/30/2025 4Q Net Charge- Loan Balances 4Q Macro/ 12/31/2025 Offs Credit Offs Credit 3Q2
Slide 15: Key Asset Quality Metrics
Key Asset Quality Metrics ($ in millions) Nonperforming Loans, OREO, NPL Ratio Net Charge-Offs (Recoveries) $60.5 $545 $502 $47.9 $462 $544 $37.1 $501 $461 0.99% 0.88% 0.88% $0.4 $1.2 $1.6 0.47% 0.28% 0.35% 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 Nonperforming Loans Nonperforming Assets NPL Ratio Commercial C
Slide 16: Strong Capital Levels
Strong Capital Levels Webster Financial Capital Levels Webster Financial Capital Ratios 13.69% At Dec 31, At Sep 30, At Dec 31, 11.71% 2025* 2025 2024** 11.22% Common Equity Tier 1 risk-based capital 11.22% 11.39% 11.54% 8.33% 10.00% Tangible common equity 7.42% 7.50% 7.45% Tangible equity 7.77% 7.8
Slide 17: 2026 Full Year Outlook
2026 Full Year Outlook Outlook assumes no material changes to the regulatory environment or macro environment / rate assumptions Loan Growth • Full year loan growth of 5% to 7% Deposit Growth • Deposit growth of 4% to 6% • Full year NII of $2.57 billion to $2.63 billion (non-FTE), excluding ~$60 mil
Slide 18: Supplemental Information
Supplemental Information pg. 19 to 21 Commercial Real Estate Portfolio pg. 22 to 25 Lines of Business Summary pg. 26 Net Interest Margin - Linked Quarter pg. 27 Earning Asset & Funding Mix pg. 28 to 29 Investment Portfolio pg. 30 Loan Originations & Mix pg. 31 Deposit Mix & Rate pg. 32 to 38 Non-GAA
Slide 19: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ in millions) Commercial Real Estate Portfolio ex. Owner Occupied Portfolio Characteristics Loan-to- Amortizing Classified Non- 12-Month • Portfolio balance of $19.7 billion Property Type Balances Value 1 DSCR 2 % Accrual % Maturities • Weighted Average LTV / Amort
Slide 20: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ($ in millions) Balances by Geography & Property Type Portfolio Profile and Metrics Other NY Property Type NYC County CT Southeast NJ MA Other • Portfolio is concentrated in NYC/NY, particularly ADC / Construction 29 % 19 % 13 % 10 % 4% 4% 20 % Multifamily & Rent-Reg
Slide 21: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Investor CRE portfolio remains well diversified Investor CRE Portfolio of $19.7 billion Rent Regulated Multifamily Detail • $1.3 billion in balances represents properties where > 50% of NOI is RR 2.4% • $98 million in additional balances where RR NOI between 25-50% A
Slide 22: Commercial Banking
Commercial Banking ($ in millions) Total Loans Key Business Metrics Increase / (Decrease) $42,361 $43,762 4Q25 3Q25 4Q24 $40,616 $309 Loan originations $ 3,957 $ 428 $ 1,180 $310 $338 Loan fundings $ 2,603 $ (8) $ 573 Coupon on fundings 5.91% (0.24)% (0.70)% $21,041 $20,623 Deposits $ 17,278 $ (982)
Slide 23: Healthcare Financial Services
Healthcare Financial Services ($ in millions) Total Footings $16,927 $16,926 Key Business Metrics Increase / (Decrease) $16,575 4Q25 3Q25 4Q24 $15,289 HSA accounts ('000) 3,419 (23) 122 $6,270 $6,509 HSA new accounts ('000) 100 (7) 2 $5,322 Ametros accounts ('000) 34 1 5 Ametros new accounts ('000)
Slide 24: Healthcare Financial Services — PTNR Detail
Healthcare Financial Services — PTNR Detail ($ in millions) HSA Bank PTNR Favorable / (Unfavorable) Ametros PTNR Favorable / (Unfavorable) 4Q25 3Q25 4Q24 4Q25 3Q25 4Q24 Net interest income $ 84.3 $ (1.7) $ 1.1 Net interest income $ 14.6 $ 0.5 $ 2.6 Interchange revenue 11.9 (0.8) 0.3 Medical services
Slide 25: Consumer Banking
Consumer Banking ($ in millions) Total Loans $12,683 $12,827 $11,886 $1,772 $1,776 Key Business Metrics Increase / (Decrease) $1,796 4Q25 3Q25 4Q24 Loan originations - Consumer Lending $ 492 $ 17 $ — $10,090 $10,911 $11,051 Loan originations - Small Business $ 74 $ 15 $ (25) Coupon on fundings 6.10
Slide 26: Net Interest Margin — Linked Quarter
Net Interest Margin — Linked Quarter 4Q25 3Q25 Increase / (Decrease) Average Yield/ Average ($ in millions) Balance Interest Rate Balance Interest BPs Securities 1 $ 18,317 $ 202.4 4.42 % $ (55) $ (1.2) (1) Money market & other 2,433 25.3 4.08 (33) (3.0) (43) Loans held for sale 36 0.2 2.30 (157) (3
Slide 27: Earning Asset & Funding Mix
Earning Asset & Funding Mix ($ in millions, end of period balances) Earning Asset Mix Type Balance Total % Floating % Periodic % Fixed % • Floating and periodic rate loans represent 44% of CRE Loans $ 22,335 29 % 55 % 6% 39 % earning assets: C&I Loans 22,895 30 45 23 32 Resi & Other Consumer 10,383
Slide 28: Investment Portfolio
Investment Portfolio ($ in millions, end of period balances) Investment Securities Duration / Yield $17,451 $18,010 $17,979 $9,932 4.8 4.7 4.8 $9,007 $10,010 4.1 4.4 4.4 $8,444 $8,078 $7,970 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 HTM Securities AFS Securities Portfolio Duration (years) Purchase Duration (yea
Slide 29: Investment Securities
Investment Securities ($ in millions, end of period balances; portfolio duration in years) Available-for-Sale December 31, 2025 September 30, 2025 Increase / (Decrease) Balances Portfolio Duration Balances Portfolio Duration Balances Portfolio Duration Government Agency Debentures $ 198 $ 196 $ 2 Mu
Slide 30: Loan Originations & Mix
Loan Originations & Mix ($ in millions) Originations by Loan Portfolio 4Q25 3Q25 4Q24 End of period balances Full quarter originations Balance Originations Balance Originations Balance Originations Commercial non-mortgage $ 21,664 $ 2,218 $ 20,654 $ 2,111 $ 19,273 $ 2,288 Asset-based lending 1,231 2
Slide 31: Deposit Mix & Rate
Deposit Mix & Rate ($ in millions) End of period balances 4Q25 3Q25 4Q24 Full quarter cost Balance Rate Balance Rate Balance Rate Demand $ 10,079 —% $ 10,488 —% $ 10,313 —% Interest-bearing checking 9,536 1.75 9,564 1.79 8,829 1.88 Health savings accounts 9,184 0.17 9,135 0.17 8,951 0.16 interSYNC 9
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ In thousands, except per share data) Efficiency Ratio 4Q25 3Q25 4Q24 Non-interest expense $ 383,237 $ 356,669 $ 340,377 Less: Foreclosed property activity (577) 1,535 (32) Intangible assets amortization 9,008 8,966 9,681 Operating lease depreciation — 3 121 Charitable con
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ In thousands) Tangible Common Equity Ratio 4Q25 3Q25 4Q24 Stockholders' equity $ 9,492,236 $ 9,462,677 $ 9,133,214 Less: Goodwill and other intangible assets 3,210,756 3,175,747 3,202,369 Tangible stockholders' equity 6,281,480 6,286,930 5,930,845 Less: Preferred stock 28
Slide 34: Non-GAAP Reconciliations — Adjusted
Non-GAAP Reconciliations — Adjusted ($ In thousands) Adjusted Return on Average Assets 4Q25 2025 Net income $ 255,820 $ 1,002,802 Add: Gains on debt redemption, tax-effected (7,176) (7,176) Charitable contribution to the Webster Foundation, tax-effected 14,576 14,576 Asset disposal and contact termi
Slide 35: Non-GAAP Reconciliations — Adjusted
Non-GAAP Reconciliations — Adjusted ($ in thousands) Adjusted Return on Average Common Stockholders' Equity 4Q25 2025 Average stockholders' equity $ 9,513,033 $ 9,373,912 Less: Average preferred stock 283,979 283,979 Average common stockholders' equity $ 9,229,054 $ 9,089,933 Net income $ 255,820 $
Slide 36: Non-GAAP Reconciliations — Adjusted
Non-GAAP Reconciliations — Adjusted ($ in thousands) Adjusted Return on Average Tangible Common Stockholders' Equity 4Q25 2025 Average stockholders' equity $ 9,513,033 $ 9,373,912 Less: Average goodwill and other intangible assets 3,190,386 3,189,345 Average preferred stock 283,979 283,979 Average t
Slide 37: Non-GAAP Reconciliations — YTD
Non-GAAP Reconciliations — YTD ($ in thousands) Full Year Efficiency Ratio 2025 2024 Non-interest expense $ 1,429,264 $ 1,351,279 Less: Foreclosed property activity 2,016 (1,413) Intangible assets amortization 36,304 36,082 Operating lease depreciation 28 1,541 Charitable contribution to the Webster
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation Full Year 2025 GAAP to Adjusted ($ in millions) Pre-Tax After Tax EPS Reported (GAAP) $ 1,260.1 $ 974.9 $ 5.90 Gains on debt redemption (9.8) (7.2) (0.04) Charitable contribution to the Webster Foundation 20.0 14.6 0.09 Asset disposal and contract termination costs 7.0 5.1 0.
Slide 39: Forward-Looking Statements
WBS 4Q25 Financial Review Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "could," “believes,” “anticipates,” “expects,” “inten
Slide 40: Webster Financial Corporation
S) Webster Financial Corporation