• Webster Financial Corporation recently reported its fourth-quarter and full-year 2025 results, posting US$2.50 billion in net interest income, US$1.00 billion in net income, record earnings per share, and a reduction in quarterly net charge-offs to US$49.49 million from US$60.87 million a year earlier.

• The bank also completed a multi-year buyback program totaling 23,873,707 shares for US$1.20 billion and highlighted strong profitability metrics including a 17% return on tangible common equity.

• Against this backdrop and with robust loan and deposit growth, we will now examine how Webster’s record 2025 earnings shape its investment narrative.

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For Webster, the core belief you’d need as a shareholder is that this is a reasonably valued regional bank that can keep converting a solid franchise into dependable profitability without taking on outsized risk. The latest results reinforce that story: record 2025 earnings, stronger net interest income, and a 17% return on tangible common equity, alongside a clear commitment to returning capital through buybacks and dividends. The reduction in net charge offs in Q4 2025 supports the view that current credit trends are manageable, so this news is more of a quiet positive than a catalyst that changes the near term narrative. Instead, the key swing factors still look to be loan and deposit growth, pressure on net interest margin, and how Webster balances further buybacks against an uncertain macro backdrop and intense deposit competition.

However, investors should also weigh how competitive deposit pressures could affect those strong profitability metrics. Despite retreating, Webster Financial’s shares might still be trading above their fair value and there could be some more downside. Discover how much.

Three Simply Wall St Community fair value views span roughly US$38 to just over US$136, showing how differently people assess Webster’s potential. Against that wide spread, the recent record earnings and still intense deposit competition are likely to be key filters for judging how sustainable today’s profitability really is, and why it pays to compare several viewpoints before deciding where you stand.

Explore 3 other fair value estimates on Webster Financial – why the stock might be worth 41% less than the current price!

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