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WBS

Webster Financial Corporation

WBS

Webster Financial Corporation • NYSE
$59.60 ▲ 0.30% (+0.18)
Market Cap $9.96 B
52w High $63.59
52w Low $39.43
Dividend Yield 1.60%
P/E 11.1
Volume 460.96K
Outstanding Shares 167.19M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.129B ▲ $356.669M ▲ $261.217M ▲ 23.133% ▼ $1.55 ▲ $350.27M ▲
Q2-2025 $1.095B ▲ $345.714M ▲ $258.848M ▲ 23.634% ▲ $1.52 ▲ $341.713M ▲
Q1-2025 $1.066B ▲ $343.644M ▲ $226.917M ▲ 21.285% ▲ $1.3 ▲ $301.893M ▲
Q4-2024 $1.048B ▼ $340.377M ▼ $177.766M ▼ 16.969% ▼ $1.01 ▼ $276.001M ▲
Q3-2024 $1.062B $348.958M $192.985M 18.175% $1.1 $260.784M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $3.063B ▲ $83.193B ▲ $73.73B ▲ $9.463B ▲
Q2-2025 $2.995B ▲ $81.914B ▲ $72.577B ▲ $9.338B ▲
Q1-2025 $2.518B ▲ $80.28B ▲ $71.076B ▲ $9.204B ▲
Q4-2024 $2.081B ▼ $79.025B ▼ $69.892B ▼ $9.133B ▼
Q3-2024 $3.209B $79.454B $70.256B $9.198B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $261.217M ▲ $374.72M ▲ $-1.261B ▼ $955.324M ▼ $68.562M ▼ $362.505M ▲
Q2-2025 $258.848M ▲ $270.914M ▲ $-1.088B ▼ $1.299B ▲ $481.643M ▲ $257.692M ▲
Q1-2025 $226.917M ▲ $94.89M ▼ $-738.364M ▲ $1.081B ▲ $437.842M ▲ $86.579M ▼
Q4-2024 $177.766M ▼ $891.316M ▲ $-1.136B ▼ $-878.106M ▼ $-1.123B ▼ $878.977M ▲
Q3-2024 $192.985M $45.312M $-716.385M $2.333B $1.662B $35.29M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Deposit Service Fees
Deposit Service Fees
 $120.00M ▲$40.00M ▼$40.00M ▲$40.00M ▲
Investment Advisory Management and Administrative Service
Investment Advisory Management and Administrative Service
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
Loans and Lease Related Fees
Loans and Lease Related Fees
 $10.00M ▲$0 ▼$0 ▲$0 ▲
NonInterest Income Within the Scope of Other GAAP Topics
NonInterest Income Within the Scope of Other GAAP Topics
 $0 ▲$30.00M ▲$40.00M ▲$40.00M ▲
Other Non Interest Income
Other Non Interest Income
 $30.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Webster’s income statement shows a bank that has scaled up meaningfully over the last few years. Revenue has grown strongly, especially after its major expansion in 2022, and profits have generally kept pace. Earnings remain solidly positive and well above pre‑pandemic levels, suggesting the core franchise is profitable. There are a couple of nuances: while revenue continues to climb, net income dipped a bit most recently versus the prior year, hinting at either higher funding costs, rising expenses, or more conservative credit provisioning. Even so, profitability levels look healthy for a regional bank, and the business now operates on a much larger base than it did earlier in the decade.

Balance Sheet

Balance Sheet The balance sheet has expanded dramatically, roughly more than doubling since the start of the period, reflecting acquisitions and organic growth. Total assets and customer relationships have grown, and shareholders’ equity has also trended upward, indicating a stronger capital base in absolute terms. Debt levels spiked with the big balance‑sheet expansion, but have been reduced somewhat since, which is a positive sign for balance‑sheet discipline. Cash and liquid resources have increased over time, giving the bank more flexibility. Overall, Webster now operates as a much larger institution, with more capital and more complexity, and the key question going forward is how well it manages risk and funding in this larger footprint.

Cash Flow

Cash Flow Cash generation has been a clear strength. Operating cash flow has been consistently positive and generally tracks the growth in earnings, which supports the quality of reported profits. Free cash flow remains solid even after the relatively modest capital investment needed for a bank of this type. Low physical capital needs and good underlying profitability mean Webster converts a sizable portion of its earnings into cash. That gives management room to absorb credit cycles, invest in technology, and return capital within regulatory limits, provided credit quality and funding conditions remain stable.

Competitive Edge

Competitive Edge Webster’s competitive position is stronger and more differentiated than that of a typical regional bank. Its edge rests on three pillars: a sizable health savings account operation through HSA Bank, a focused commercial banking franchise with sector specializations, and a more traditional consumer banking business. HSA Bank provides a clear niche advantage, with scale, long relationships, and expertise in complex tax‑advantaged health accounts that are not easy to replicate quickly. On the commercial side, Webster leans into industry‑specific knowledge and customized solutions, which can deepen client relationships and support better pricing and fee income. The ability to cross‑sell between commercial banking, consumer banking, and HSA services makes customer relationships “stickier” and can lower churn. Risks include competition from larger national banks, fintechs in payments and deposits, and regulatory scrutiny around newer models like Banking‑as‑a‑Service. But its combination of healthcare finance, commercial specialization, and digital initiatives gives it a distinct profile in the regional bank landscape.

Innovation and R&D

Innovation and R&D Webster does not do “R&D” in the way a technology company would, but it is clearly investing in innovation and digital capabilities. Key initiatives include: - Building a Banking‑as‑a‑Service platform that lets fintechs and partners plug into Webster’s banking infrastructure. This can extend Webster’s reach well beyond its physical footprint, though it also introduces partnership and compliance complexity. - Transforming HSA Bank with a modern, cloud‑based platform (helped by acquiring Bend Financial). This should improve user experience, data analytics for employers, and operational efficiency, and it strengthens an already strong niche. - Developing specialized commercial lending offerings and a private‑credit joint venture with Marathon Asset Management, which could deepen its role in sponsor‑backed middle‑market lending. - Running BrioDirect, an online‑only savings brand, as a digital channel to attract deposits nationwide. The opportunity is to translate these investments into sustainable fee income, deeper customer relationships, and low‑cost deposits. The main uncertainties lie in execution quality, regulatory expectations around BaaS, and competitive responses from larger banks and well‑funded fintechs.

Summary

Webster Financial has evolved from a more traditional regional bank into a larger, more specialized institution with clear areas of strength. Financially, it shows solid profitability, good cash generation, and a meaningfully larger balance sheet than a few years ago. Earnings have held up well despite a choppy interest‑rate environment, though the most recent year suggests some pressure on margins or credit costs. Strategically, its differentiation in health savings accounts, focused commercial banking, and digital partnerships sets it apart from many regional peers. Investments in BaaS, HSA technology, and private credit could create attractive, fee‑rich growth if executed prudently. Key things to monitor include: credit quality as the loan book grows, funding costs and deposit trends in a competitive rate environment, regulatory developments around BaaS and partner programs, and the pace at which the HSA and digital platforms translate into durable revenue streams. Overall, Webster appears to be a growing, innovation‑oriented regional bank balancing traditional banking with more modern, technology‑driven initiatives.

NEWS

October 29, 2025 · 4:15 PM UTC

Webster Financial Corporation Declares Common and Preferred Dividends

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October 29, 2025 · 4:10 PM UTC

Webster Lowers Prime Lending Rate to 7.00 Percent

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October 17, 2025 · 7:30 AM UTC

Webster Reports Third Quarter 2025 EPS of $1.54

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October 9, 2025 · 4:10 PM UTC

Webster Financial Corporation Announces Q3 2025 Earnings Release and Conference Call

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October 9, 2025 · 10:42 AM UTC

Webster Bank Celebrates 90th Anniversary

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