Webster Financial Corporation reduced its prime lending rate to 7.00 percent from 7.25 percent, effective October 30, 2025.
The change applies to all loan products and credit lines tied to the prime rate, including consumer loans, small‑business lines, and commercial real‑estate financing.
The rate cut follows a series of adjustments: a 7.25 percent rate effective September 18, 2025, and a 7.50 percent rate effective December 19, 2024. The bank’s strategy is to maintain competitiveness amid a tightening rate environment and to support loan demand.
Management stated that the adjustment is intended to keep Webster’s loan products attractive to borrowers while managing the impact on the bank’s interest income profile. The bank’s recent earnings report for Q3 2025 showed earnings per share of $1.54, exceeding analyst expectations, and total assets of over $80 billion.
The rate reduction is expected to lower borrowing costs for customers across Webster’s product lines, potentially increasing loan demand and supporting balance‑sheet growth.
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