PROVIDENCE – Webster Financial Corp., the parent company of Webster Bank N.A., reported a year-end profit of $1 billion for 2025 on Friday, up from $882 million in 2024, on higher net interest income and strong loan growth.
The company said full-year revenue totaled $2.9 billion, up from $2.7 billion in 2024. Net interest income increased to $1.9 billion, reflecting higher interest rates and repricing across the loan portfolio.
Noninterest expense for the full year was $1.8 billion, slightly higher than the prior year, as the bank continued investing in technology, talent and client services.
For the fourth quarter that ended Dec. 31, Webster reported net income of $248.7 million, up 45% from $171.8 million in the fourth quarter of 2024.
Earnings per diluted share were $1.55, up from $1.01 a year earlier. The fourth quarter results exceeded Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.52 per share.
“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 earnings per share and tangible book value per share in the year of its 90th anniversary.”
Revenue net of interest expense, the money the bank earns after paying interest on deposits and borrowings, totaled $746.2 million for the quarter, up roughly 2% from $729 million in the fourth quarter of 2024.
Net interest income rose about 2.8% year over year to $560 million, supported by loan growth and favorable funding costs.
Meanwhile, net interest margin, a key metric that assesses what the bank earns on interest charged on loans minus the interest it pays for deposits, came in at 3.35% for the fourth quarter, slightly below 3.38% in the previous quarter.
Noninterest income for the quarter was boosted by gains on debt redemption and other one-time items, while the bank’s provision for credit losses totaled $42 million, reflecting stable credit quality across consumer and commercial portfolios.
Total loans and leases stood at $56.6 billion at year-end, up about 2.8% from the prior quarter, while total deposits were $68.8 billion, a 0.9% increase from the previous quarter. Webster also repurchased 3.6 million shares during the period.
“Our solid operating foundation enables Webster to maintain strong profitability while building scale,” said Neal Holland, senior executive vice president and chief financial officer. “We continue to invest in businesses and capabilities that enhance Webster’s strategic capabilities.”
Webster Bank, which is headquartered in Stamford, Conn., has six full-service branches in Rhode Island, as well as a private bank office in Providence.
Material from The Associated Press was used in this report.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
