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WBS-PG

Webster Financial Corporation

WBS-PG

Webster Financial Corporation • NYSE
$23.92 ▼ -1.01% (-0.24)
Market Cap $4.00 B
52w High $25.25
52w Low $21.26
Dividend Yield 1.63%
P/E 9.17
Volume 3.29K
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 Q2-2024Q3-2024Q4-2024Q3-2025
Deposit Service Fees
Deposit Service Fees
 $40.00M ▲$40.00M ▲$80.00M ▲$40.00M ▼
Investment Advisory Management and Administrative Service
Investment Advisory Management and Administrative Service
 $10.00M ▲$10.00M ▲$20.00M ▲$10.00M ▼
Loans and Lease Related Fees
Loans and Lease Related Fees
 $0 ▲$0 ▲$10.00M ▲$0 ▼
NonInterest Income Within the Scope of Other GAAP Topics
NonInterest Income Within the Scope of Other GAAP Topics
 $-20.00M ▲$0 ▲$0 ▲$40.00M ▲
Other Non Interest Income
Other Non Interest Income
 $10.00M ▲$10.00M ▲$20.00M ▲$10.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Webster’s income statement shows a bank that has grown significantly over the past few years and is now operating at a solid level of profitability. Revenue has expanded steadily, with a big step up in the early 2020s as the bank scaled up, and it has continued to grow since then. Operating profits and net income have generally followed the same upward path, which suggests that growth has been reasonably well-managed rather than purely volume-driven. There is, however, a sign of some pressure on margins more recently: earnings have not risen as fast as revenue, and profit per share has slipped a bit after a strong peak. That can reflect higher funding costs, competition for deposits, or rising operating expenses. Overall, though, the bank appears consistently profitable, with enough earnings power to absorb normal credit and interest-rate cycles, but not immune to margin compression in a tougher rate or competitive environment.

Balance Sheet

Balance Sheet The balance sheet reflects a bank that has grown from a more modest size to a much larger regional player, particularly after its major merger. Total assets have more than doubled over the five-year span, which is typical for a transformative deal. Capital levels, as reflected in equity, have also grown steadily, which supports resilience and loss-absorbing capacity. Debt use rose sharply around the time of the expansion and has since edged down, suggesting some balance-sheet optimization after the merger. Cash and liquid resources have increased compared with earlier years, though they remain a relatively small slice of the balance sheet, as is common for a bank that relies on deposits and securities for liquidity. Overall, Webster looks adequately capitalized with a more complex, but now more settled, balance sheet. The main watchpoints are credit quality in the loan book and the stability and mix of its deposits and wholesale funding, neither of which are detailed here but are central risks for any regional bank.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive and has grown over time, which is a good sign that accounting profits are backed by real cash inflows. Free cash flow is very close to operating cash flow because the bank’s direct capital spending needs are modest; most investment is in loans, technology, and acquisitions rather than heavy physical assets. This pattern suggests that Webster has a solid ability to fund its own growth, support its capital structure, and absorb shocks without relying excessively on external capital. For a bank, the key risk is less about traditional capital expenditures and more about funding costs and credit losses; the historical cash flow trend here points to disciplined management, but it does not remove those underlying banking risks.

Competitive Edge

Competitive Edge Webster occupies a differentiated niche among regional banks, built around three pillars: a strong commercial banking franchise, a nationally recognized Health Savings Account (HSA) platform, and a diversified, relatively low-cost deposit base. The HSA Bank division, in particular, provides a unique source of stable, long-duration deposits and fee income, which many regional peers lack. This helps the bank manage its funding costs and interest margins more effectively than a typical branch‑centric retail model might. Its commercial and specialized lending capabilities, along with integrated treasury and cash‑management tools for businesses, give it deeper relationships with corporate clients rather than just transactional accounts. On the other hand, Webster still faces the usual regional-bank vulnerabilities: geographic and sector concentration, competition from larger national banks and nimble fintechs, and sensitivity to shifts in interest rates and credit conditions. The differentiation is meaningful, but it does not fully shield the bank from wider banking‑sector cycles.

Innovation and R&D

Innovation and R&D Innovation at Webster is focused on digital banking, partnerships, and data rather than traditional laboratory-style R&D. The bank has invested in robust digital platforms for commercial clients, including advanced treasury and cash‑management tools, and has embraced Banking‑as‑a‑Service with open APIs to work closely with fintech partners. This allows Webster to extend its reach and capabilities without having to build every solution internally. Its HSA Bank platform is another core area of innovation, offering sophisticated tools for employers and individuals to manage health‑related savings and benefits. On the consumer and wealth side, digital channels, mobile features, and a hybrid robo‑advisor service show a willingness to experiment with new delivery models. Management is also exploring the use of artificial intelligence and machine learning to improve efficiency and risk management. The upside of this strategy is a more modern, scalable bank; the main risk is execution—keeping technology secure, integrating fintech partnerships effectively, and translating innovation into lasting customer loyalty and revenue.

Summary

Overall, Webster Financial has transformed from a smaller regional player into a larger, more specialized bank with distinct strengths. The income statement shows solid, growing profitability, though with some recent pressure on margins as the rate and competitive environment has become more challenging. The balance sheet has expanded significantly, backed by rising equity, and appears reasonably robust for a regional institution. Cash flow has generally been strong and aligned with earnings, indicating that growth has been grounded in real cash generation rather than aggressive accounting. Competitively, Webster stands out through its HSA Bank franchise, diversified deposit strategies, and strong commercial banking and treasury capabilities, giving it a meaningful edge over more generic regional peers. Innovation is focused on digital platforms, Banking‑as‑a‑Service, and data‑driven solutions, which positions the bank well for an increasingly digital financial system, but also brings execution and technology‑risk challenges. In sum, Webster looks like a scaled, profitable regional bank with specialized strengths and ongoing innovation efforts, balanced by the usual sector risks around interest rates, credit quality, regulation, and competition from both large banks and fintechs.