Corporate Participants
- John Ciulla – Chairman & Chief Executive Officer
- Glenn MacInnes – Executive Vice President & Chief Financial Officer
- Jason Soto – Head of Investor Relations
Conference Call Participants
- Mark Fitzgibbon – Piper Sandler
- Chris McGratty – KBW
- Jared Shaw – Barclays
- Casey Haire – Jefferies
Prepared Remarks
Jason Soto: Good morning, and welcome to Webster Financial Corporation fourth quarter 2025 earnings call. Joining me today are John Ciulla, our Chairman and CEO, and Glenn MacInnes, our CFO.
John Ciulla: Thank you, Jason. We are pleased to report solid fourth quarter results that reflect the strength of our diversified business model. We delivered earnings per share of $1.35 on revenue of $1.2 billion.
Our commercial banking franchise continues to perform well, with balanced loan growth across our specialty verticals including sponsor finance, healthcare, and technology. HSA Bank maintained its leadership position, adding over 200 new employer relationships.
Credit quality remains excellent. Non-performing assets represent just 0.4% of total assets, and we continue to maintain conservative underwriting standards across all portfolios.
Glenn MacInnes: Net interest income was $720 million, with net interest margin of 3.25%. Fee income grew 6% year-over-year, driven by HSA fees and treasury management. Expenses were well-controlled at $580 million, resulting in an efficiency ratio of 48%.
Q&A Session
Mark Fitzgibbon: Can you discuss your outlook for loan growth in 2026?
John Ciulla: We expect mid-single digit loan growth in 2026, driven by sponsor finance and healthcare financial services. Our pipeline remains healthy across all commercial verticals.
Chris McGratty: How are you thinking about capital deployment and M&A?
John Ciulla: Our capital position is strong with CET1 of 11.2%. We will continue balanced deployment through organic growth, dividends, and opportunistic share repurchases. We remain open to strategic M&A that fits our criteria.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, we cannot guarantee that all information is complete or error-free. Please refer to the company's official SEC filings for authoritative information.