Webster Financial Corporation announced net income applicable to common stockholders of $251.7 million, or $1.52 per diluted share, for the second quarter ended June 30, 2025. This marks a significant increase from $175.5 million, or $1.03 per diluted share, reported for the same period in 2024. The company achieved an 18% return on average tangible common stockholders' equity and a 1.29% return on average assets.
Total assets grew by $1.6 billion in the quarter to $81.9 billion, driven by balanced growth in loans, cash, and securities. Loans and leases increased by 1.2% linked quarter, or 1.6% excluding a one-time transfer of $242 million of loans to held-for-sale. Total deposits increased by $739 million, maintaining a stable loan-to-deposit ratio of 81%. Net interest income rose by $48.9 million year-over-year to $621.2 million, with the net interest margin expanding by 5 basis points to 3.44% linked quarter.
Non-interest income surged by $52.4 million year-over-year to $94.7 million, largely due to favorable investment securities sales and increased cash surrender value of life insurance policies. The efficiency ratio remained strong at 45.40%. Asset quality improved, with net charge-offs at 27 basis points, within the long-term normalized range, and both criticized commercial loans and non-accruals declined.
The Board authorized an additional $700 million in share repurchases in Q2 2025, with 1.5 million shares already bought back. Webster projects full-year 2025 net interest income between $2.47 billion and $2.5 billion, assuming two Fed funds rate cuts. Full-year loan and deposit growth is expected to be 4% to 5% on an end-of-period basis.
CEO John R. Ciulla stated that Webster produced impressive financial and strategic results, realizing exciting new opportunities for business growth. CFO Neal Holland highlighted improved asset quality metrics, capital returns to shareholders, and continued investments for future growth, including preparing for Category 4 bank readiness and leveraging the Marathon Asset Management joint venture for fee income from 2026.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.