Webster Financial Corporation
- Open
- 75.98
- Day high
- 76.04
- Day low
- 75.35
- Prev close
- 76.01
- Volume
- 2.3M
- Mkt cap
- $12.2B
- P/E (TTM)
- 12.3
- EPS (TTM)
- $6.12
- P/B
- 1.3
- P/S
- 2.8
- Yield
- 1.06%
- Per share
- $0.80
- ▼Insiders net selling -$573K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Webster Financial Corporation (WBS) is a Financial Services company listed on NYSE. The stock is up 25% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Webster Financial Corporation (WBS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WBS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 28, 2026 | $1.53 | $1.57 | +2.6% | $736M | +0.1% |
| Jan 23, 2026 | $1.52 | $1.59 | +4.6% | $746M | +2.0% |
| Oct 17, 2025 | $1.52 | $1.54 | +1.3% | $733M | +0.7% |
| Jul 17, 2025 | $1.44 | $1.52 | +5.6% | $716M | -0.1% |
| Apr 24, 2025 | $1.38 | $1.30 | -5.8% | $705M | -0.2% |
| Jan 28, 2025 | $1.36 | $1.46 | +7.4% | $1.0B | — |
| Oct 17, 2024 | $1.35 | $1.34 | -0.7% | $648M | -4.4% |
| Jul 23, 2024 | $1.34 | $1.26 | -6.0% | $615M | -9.2% |
| Jan 23, 2024 | $1.46 | $1.46 | +0.0% | $635M | +5.3% |
| Oct 19, 2023 | $1.49 | $1.55 | +4.0% | $678M | +7.9% |
| Jul 20, 2023 | $1.47 | $1.50 | +2.0% | $673M | +8.9% |
| Apr 20, 2023 | $1.59 | $1.49 | -6.3% | $666M | +9.7% |
WBS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 26, 2026 | Mitchell Maureendirector | Grant | 1,596 | — |
| May 22, 2026 | MORSE LAURENCE Cdirector | Grant | 1,596 | — |
| May 22, 2026 | Aboelnaga Monadirector | Grant | 1,596 | — |
| May 22, 2026 | Cahill John P.director | Grant | 1,596 | — |
| May 22, 2026 | O'Toole Richard L.director | Grant | 1,596 | — |
| May 22, 2026 | Pettie Markdirector | Grant | 1,596 | — |
| May 22, 2026 | Haas William Daviddirector | Grant | 1,596 | — |
| May 22, 2026 | HAYLES CAROLdirector | Grant | 1,596 | — |
| May 22, 2026 | Whiston William E.director | Grant | 1,596 | — |
| May 22, 2026 | Crawford Frederick Johndirector | Grant | 1,596 | — |
| May 22, 2026 | States Laurendirector | Grant | 1,596 | — |
| May 22, 2026 | ATWELL WILLIAM Ldirector | Grant | 1,596 | — |
| May 20, 2026 | CIULLA JOHN Rdirector, officer: Chairman and CEO | Sell | 8,000 | $71.67 |
| Mar 13, 2026 | MOTL CHRISTOPHER Jofficer: President, Commercial Banking | Grant | 22,701 | — |
| Mar 13, 2026 | WILKINS CHARLES Lofficer: Head of HSA Bank | Grant | 8,974 | — |
Source: WBS SEC Form 4 filings, latest May 26, 2026. For informational purposes only — not investment advice.
See the full WBS insider & 13F page →Webster Financial Corporation company profile
Overview
Webster Financial Corporation (NASDAQ:WBS) is a regional bank holding company founded in 1935 and headquartered in Stamford, Connecticut. The company went public in 1986 and operates through its primary subsidiary, Webster Bank, National Association. Webster has evolved from a traditional community bank into a diversified financial services provider with approximately $79 billion in assets as of December 2024. The bank operates 130 banking centers and 251 ATMs across the northeastern United States, serving individuals, families, and businesses through three distinct business segments.
Business
Webster Financial operates in the regional banking industry, providing traditional banking services alongside specialized financial products. The banking industry serves as a financial intermediary, accepting deposits from customers and lending those funds to borrowers while earning the difference between interest paid and received. The company operates through three primary business segments: **Commercial Banking** represents the largest revenue generator, providing comprehensive business banking services including commercial and industrial lending, commercial real estate financing, equipment financing, asset-based lending, and treasury services. This segment also offers wealth management solutions, trust services, and investment products to business owners and consumers. Commercial banking typically generates the majority of Webster's net interest income through loan origination and deposit gathering. **HSA Bank** operates as a specialized health savings account administrator, offering tax-advantaged health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefits. These accounts are distributed directly to employers and consumers, as well as through insurance carriers, consultants, and financial advisors. HSA Bank has grown significantly and provides a stable, low-cost deposit base since health savings accounts tend to have longer duration and lower volatility than traditional deposits. **Retail Banking** focuses on consumer financial services, providing deposit accounts, residential mortgages, home equity lines of credit, personal loans, and credit cards to individual customers. This segment also encompasses the bank's digital banking platforms and branch network operations. The company has also expanded through strategic acquisitions, including the recent purchase of Ametros, a medical claims settlement administration company that provides additional low-cost deposits and fee income opportunities.
Revenue model
Webster Financial generates revenue through multiple streams typical of regional banks. The primary revenue source is **net interest income**, which represents the difference between interest earned on loans and investments and interest paid on deposits and borrowed funds. This spread-based model means Webster profits when it can lend money at higher rates than it pays for deposits. **Fee-based income** represents the second major revenue stream, generated through HSA Bank administration fees, wealth management services, treasury management, loan origination fees, and various banking service charges. The HSA Bank segment is particularly valuable as it generates recurring fee income while providing low-cost, stable deposits. Webster's customers include commercial borrowers seeking business loans, real estate developers requiring construction and permanent financing, employers offering health savings accounts to employees, and retail customers needing traditional banking services. The commercial banking segment serves middle-market companies, while HSA Bank serves both large employers and individual account holders. Several factors influence Webster's profitability margins. **Interest rate environment** significantly impacts net interest margins - rising rates generally benefit banks by allowing higher loan yields, though this can increase deposit costs. **Credit quality** affects margins through loan loss provisions, with economic downturns potentially requiring higher reserves. **Regulatory compliance costs** represent a growing expense, particularly as Webster approaches the $100 billion asset threshold that triggers enhanced regulatory requirements. **Competition** from larger banks and fintech companies can pressure both loan yields and deposit costs. **Economic conditions** influence loan demand and credit losses, while **deposit mix** affects funding costs, with demand deposits being less expensive than time deposits.
Competitive moat
Webster Financial possesses a **moderate competitive moat** built primarily around its specialized HSA Bank business and regional market presence. The HSA Bank segment represents the strongest moat component, as health savings account administration requires specialized regulatory compliance, technology infrastructure, and established relationships with employers and insurance carriers. Once employers select an HSA provider, switching costs are significant due to employee disruption and administrative complexity. Additionally, HSA deposits tend to be "stickier" than traditional bank deposits since account holders build long-term healthcare savings. The company's **regional banking franchise** provides some competitive advantages through established customer relationships, local market knowledge, and community presence in the northeastern United States. However, this moat is relatively weak as regional banks face intense competition from national banks with greater resources and scale, as well as emerging fintech companies offering digital-first banking solutions. Webster's **commercial banking expertise** in specific niches like fund banking and sponsor finance creates some differentiation, but these advantages are not insurmountable. Larger banks can replicate these services, and the company must continuously invest to maintain technological competitiveness. The primary **competitive threats** come from several directions: large national banks with superior technology platforms and pricing power, fintech companies disrupting traditional banking services, and potential regulatory changes that could favor larger institutions. As Webster approaches $100 billion in assets, it will face enhanced regulatory requirements that could increase compliance costs relative to smaller competitors while still lacking the scale advantages of mega-banks. The company's moat is sufficient to maintain market position but not strong enough to guarantee long-term pricing power or market share gains.
Risks & safety
Webster Financial demonstrates a **strong margin of safety** with solid capitalization and conservative risk management, though approaching regulatory thresholds creates some uncertainty. **Liquidity and Solvency:** - Strong cash position with $1.8 billion in cash and short-term investments - Robust Common Equity Tier 1 capital ratio of 11.23%, well above regulatory minimums - Debt-to-equity ratio of 0.10, indicating minimal leverage - Positive free cash flow of $879 million in 2024 **Valuation Metrics:** - Price-to-earnings ratio of 13.2x, reasonable for a regional bank - Price-to-book ratio of 1.03x, near tangible book value - Return on equity of 19.5% (adjusted), indicating efficient capital utilization - Trading below historical averages due to credit concerns **Other Considerations:** - Credit quality remains manageable with net charge-offs at 30 basis points - Approaching $100 billion asset threshold will increase regulatory compliance costs by $40-60 million - Office commercial real estate exposure being actively reduced - Strong deposit base with significant portion from stable HSA accounts
Recent development
Over the past few years, Webster Financial has executed several strategic initiatives to diversify revenue streams and strengthen its competitive position. The most significant development has been the **expansion of HSA Bank**, which has grown deposits by $800 million and launched the HSA Invest platform to provide investment options for account holders. This business provides stable, low-cost funding and recurring fee income. The company completed the **acquisition of Ametros** in early 2024, adding a medical claims settlement administration business that contributes approximately $800 million in deposits and $25 million in annual fees. Ametros is expected to grow deposits at a 25% compound annual growth rate, providing additional low-cost funding. Webster has been **actively managing its commercial real estate portfolio**, particularly reducing exposure to office properties. The company has decreased its CRE concentration from 285% to 255% of Tier 1 capital and reserves, with plans to reach 250% over the next few quarters. This proactive approach addresses potential credit risks in the changing commercial real estate market. The bank announced a **private credit joint venture with Marathon Asset Management**, expanding its capabilities in alternative lending markets. This partnership allows Webster to participate in the growing private credit market while maintaining appropriate risk management. **Technology investments** have been substantial, including preparations for enhanced regulatory requirements as the company approaches $100 billion in assets. Webster is investing $15-20 million annually in operational enhancements and expects total regulatory-related expenses of $40-60 million over the next few years to comply with Category 4 bank requirements. The company has also focused on **diversifying loan growth** across multiple commercial banking segments, including sponsor finance, fund banking, public sector finance, and commercial & industrial lending, reducing dependence on any single lending category.
WBS company profile · for informational purposes only — not investment advice.
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