WATERBURY, Conn., Oct. 15, 2015 /PRNewswire/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income
available to common shareholders of $49.5
million, or $0.54 per diluted
share, for the quarter ended September 30,
2015 compared to $47.8
million, or $0.53 per diluted
share, for the quarter ended September 30,
2014.
"Continued strong loan growth produced record revenue and record
pre-tax income, as our bankers excelled in service to customers and
communities," said James C. Smith,
chairman and chief executive officer. "We've now delivered 24
consecutive quarters of year-over-year revenue growth, as we invest
in strategies that create value for customers and shareholders
alike."
Highlights for the third quarter of 2015 compared to the
third quarter of 2014:
- Record quarterly pre-provision net revenue of $89.6 million, an increase of 7.2 percent.
- Loan growth of $1.7 billion, or
12.6 percent, with double-digit growth in commercial, commercial
real estate and residential mortgage loans.
- Deposit growth of $2.0 billion,
or 13.1 percent, primarily reflecting HSA Bank's strong organic
growth and its recent acquisition.
- Record core revenue of $229.5
million, an increase of 10.2 percent, consisting of record
levels of net interest income of $168.0
million and non-interest income of $61.5 million.
- Efficiency ratio of 59.55 percent represents the tenth
consecutive quarter at or below 60 percent.
- Annualized return on average tangible common shareholders'
equity of 11.89 percent.
"Webster's efficiency ratio has now been at or below 60 percent
for the past 10 quarters," said Glenn
MacInnes, executive vice president and chief financial
officer. "Our focus on efficiency has enabled us to continue
to invest meaningfully in our high performing business
segments."
Quarterly net interest income compared to the third quarter
of 2014:
- Net interest income was $168.0
million compared to $157.4
million.
- Net interest margin was 3.04 percent compared to 3.17 percent.
The yield on interest-earning assets declined by 15 basis points,
while the cost of funds declined by 3 basis points.
- Average interest-earning assets totaled $22.3 billion and grew by $2.2 billion, or 11.0 percent.
- Average loans grew by $1.6
billion, or 12.1 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$13.0 million compared to
$12.75 million in the second quarter
and $9.5 million a year ago. The
increase compared to each period reflects continued growth in the
loan portfolio.
- Net charge-offs were $7.9 million
compared to $6.9 million in the prior
quarter and $7.9 million a year ago.
The ratio of net charge-offs to average loans on an annualized
basis was 0.21 percent compared to 0.19 percent in the prior
quarter and 0.24 percent a year ago.
- The allowance for loan losses represented 1.14 percent of total
loans compared to 1.14 percent at June 30,
2015 and 1.16 percent at September
30, 2014. The allowance for loan losses represented 109
percent of nonperforming loans compared to 100 percent at
June 30 and 113 percent a year
ago.
Quarterly non-interest income compared to the third quarter
of 2014:
- Total non-interest income was $61.5
million compared to $50.9
million, an increase of $10.6
million. Excluding securities gains and other-than-temporary
impairment charges, a year-over-year increase of $10.6 million in core non-interest income
reflects increases of $8.7 million in
deposit service fees primarily related to HSA Bank, $2.8 million in loan related fees, and
$0.4 million in other income, with
partial offset from a $1.0 million
decrease in wealth and investment services fees.
Quarterly non-interest expense compared to the third quarter
of 2014:
- Total non-interest expense was $139.9
million compared to $124.5
million, an increase of $15.4
million.
- Non-interest expense, excluding one-time costs, increased
$15.2 million with $10.0 million of the increase related to HSA
Bank, primarily from the acquisition. The remaining $5.2 million increase reflects higher base
compensation due to merit increases, incentives, group insurance,
and technology and equipment.
Quarterly income taxes compared to the third quarter of
2014:
- Income tax expense was $25.1
million compared to $23.8
million. The effective tax rate was 32.7 percent compared to
32.1 percent, and the current quarter included a $0.6 million tax benefit specific to the
period.
Investment securities:
- Total investment securities were $7.0
billion compared to $6.9
billion at June 30, 2015 and
$6.5 billion a year ago. The carrying
value of the available-for-sale portfolio included $16.0 million of net unrealized gains compared to
$14.9 million at June 30 and $20.8
million a year ago, while the carrying value of the
held-to-maturity portfolio does not reflect $72.3 million of net unrealized gains compared to
$50.6 million at June 30 and $57.8
million a year ago.
Loans:
- Total loans were $15.2 billion
compared to $14.8 billion at
June 30, 2015 and $13.5 billion a year ago. Compared to
June 30, residential mortgage,
commercial, commercial real estate, and consumer loans increased by
$182.4 million, $125.5 million, $86.9
million, and $44.3 million,
respectively.
- Compared to a year ago, commercial, commercial real estate,
residential mortgage, and consumer loans increased by $570.7 million, $503.1
million, $560.5 million, and
$68.8 million, respectively.
- Loan originations for portfolio were $1.207 billion compared to $1.363 billion in the second quarter and
$1.168 billion a year ago. In
addition, $117 million of residential
loans were originated for sale in the quarter compared to
$147 million in the prior quarter and
$78 million a year ago.
Asset quality:
- Past due loans were $41.3 million
compared to $32.4 million at
June 30, 2015 and $46.1 million a year ago. Loans past due 90 days
and still accruing increased $0.3
million from the prior quarter and $0.2 million from the prior year.
- Total nonperforming loans decreased to $159.0 million, or 1.04 percent of total loans,
compared to $167.9 million, or 1.14
percent, at June 30 and $139.1 million, or 1.03 percent, a year ago.
Total paying nonperforming loans were $45.0
million compared to $48.7
million at June 30 and
$35.0 million a year ago.
Deposits and borrowings:
- Total deposits were $17.6 billion
compared to $17.3 billion at
June 30, 2015 and $15.5 billion a year ago. Core to total deposits
were 88.3 percent compared to 87.8 percent at June 30 and 85.2 percent a year ago. Loans to
deposits were 86.5 percent compared to 85.4 percent at June 30 and 86.9 percent a year ago.
- Total borrowings were $3.8
billion compared to $3.8
billion at both June 30 and a
year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 11.89
percent and 8.68 percent, respectively, compared to 11.86 percent
and 8.87 percent, respectively, in the third quarter of 2014.
- The tangible equity and tangible common equity ratios were 7.76
percent and 7.24 percent, respectively, compared to 8.35 percent
and 7.64 percent, respectively, at September
30, 2014. The common equity tier 1 risk-based capital ratio
was 10.81 percent compared to 11.50 percent a year ago.
- Book value and tangible book value per common share were
$24.87 and $18.55, respectively, compared to $23.93 and $18.02,
respectively, a year ago.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $24.1 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 163 banking
centers, 316 ATMs, telephone banking, mobile banking, and the
Internet. Webster Bank owns the
asset-based lending firm Webster Business Credit Corporation; the
equipment finance firm Webster Capital Finance Corporation; and HSA
Bank, a division of Webster Bank,
which provides health savings account trustee and administrative
services. Webster Bank is a member
of the FDIC and an equal housing lender. For more information about
Webster, including past press releases and the latest annual
report, visit the Webster website at www.websterbank.com.
Conference Call
A conference call covering Webster's 2015 third quarter
earnings announcement will be held today, Thursday, October 15, 2015 at 9:00 a.m. (Eastern) and may be heard through
Webster's Investor Relations website at www.wbst.com, or in
listen-only mode by calling 1-877-407-8289 or 201-689-8341
internationally. The call will be archived on the website and
available for future retrieval.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements can be identified by words
such as "believes," "anticipates," "expects," "intends,"
"targeted," "continue," "remain," "will," "should," "may," "plans,"
"estimates," and similar references to future periods; however,
such words are not the exclusive means of identifying such
statements. Examples of forward-looking statements include,
but are not limited to: (i) projections of revenues, expenses,
income or loss, earnings or loss per share, and other financial
items; (ii) statements of plans, objectives, and expectations of
Webster or its management or Board of Directors; (iii) statements
of future economic performance; and (iv) statements of assumptions
underlying such statements. Forward-looking statements are based on
Webster's current expectations and assumptions regarding its
business, the economy, and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks, and changes in circumstances that
are difficult to predict. Webster's actual results may differ
materially from those contemplated by the forward-looking
statements, which are neither statements of historical fact nor
guarantees or assurances of future performance. Factors that could
cause actual results to differ from those discussed in the
forward-looking statements include, but are not limited to: (1)
local, regional, national, and international economic conditions
and the impact they may have on us and our customers and our
assessment of that impact; (2) volatility and disruption in
national and international financial markets; (3) government
intervention in the U.S. financial system; (4) changes in the level
of nonperforming assets and charge-offs; (5) changes in estimates
of future reserve requirements based upon the periodic review
thereof under relevant regulatory and accounting requirements; (6)
adverse conditions in the securities markets that lead to
impairment in the value of securities in our investment portfolio;
(7) inflation, interest rate, securities market, and monetary
fluctuations; (8) the timely development and acceptance of new
products and services and perceived overall value of these products
and services by customers; (9) changes in consumer spending,
borrowings, and savings habits; (10) technological changes and
cyber-security matters; (11) the ability to increase market share
and control expenses; (12) changes in the competitive environment
among banks, financial holding companies, and other financial
services providers; (13) the effect of changes in laws and
regulations (including laws and regulations concerning taxes,
banking, securities, and insurance) with which we and our
subsidiaries must comply, including the Dodd-Frank Wall Street
Reform and Consumer Protection Act; (14) the effect of changes in
accounting policies and practices, as may be adopted by the
regulatory agencies, as well as the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board, and
other accounting standard setters; (15) the costs and effects of
legal and regulatory developments including the resolution of legal
proceedings or regulatory or other governmental inquiries and the
results of regulatory examinations or reviews; (16) our success at
managing the risks involved in the foregoing items and (17) the
other factors that are described in the Company's Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q under the headings
"Risk Factors" and 'Management Discussion and Analysis of Financial
Condition and Results of Operation." Any forward-looking
statement made by the Company in this release speaks only as of the
date on which it is made. Factors or events that could cause the
Company's actual results to differ may emerge from time to time,
and it is not possible for the Company to predict all of them. The
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this
press release contains certain non-GAAP financial measures. A
reconciliation of net income and other performance ratios, as
adjusted, is included in the accompanying selected financial
highlights table.
We believe that providing certain non-GAAP financial measures
provides investors with information useful in understanding our
financial performance, our performance trends and financial
position. Specifically, we provide measures based on what we
believe are our operating earnings on a consistent basis and
exclude non-core operating items which affect the GAAP reporting of
results of operations. We utilize these measures for internal
planning and forecasting purposes. We, as well as securities
analysts, investors, and other interested parties, also use these
measures to compare peer company operating performance. We believe
that our presentation and discussion, together with the
accompanying reconciliations, provides a complete understanding of
factors and trends affecting our business and allows investors to
view performance in a manner similar to management. These non-GAAP
measures should not be considered a substitute for GAAP basis
measures and results, and we strongly encourage investors to review
our consolidated financial statements in their entirety and not to
rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names.
Media
Contact
|
Investor
Contact
|
Bob Guenther,
203-578-2391
|
Terry Mangan,
203-578-2318
|
rguenther@websterbank.com
|
tmangan@websterbank.com
|
WEBSTER FINANCIAL
CORPORATION
Selected Financial Highlights (unaudited)
|
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
|
|
(In thousands,
except per share data)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
51,536
|
|
$
52,503
|
|
$
49,722
|
|
$
51,006
|
|
$
50,457
|
Net income available
to common shareholders
|
49,512
|
|
50,479
|
|
47,083
|
|
48,367
|
|
47,818
|
Net income per
diluted common share
|
0.54
|
|
0.55
|
|
0.52
|
|
0.53
|
|
0.53
|
Return on average
assets
|
0.86 %
|
|
0.90 %
|
|
0.88 %
|
|
0.93 %
|
|
0.94 %
|
Return on average
tangible common shareholders' equity
|
11.89
|
|
12.49
|
|
11.82
|
|
11.74
|
|
11.86
|
Return on average
common shareholders' equity
|
8.68
|
|
9.03
|
|
8.57
|
|
8.84
|
|
8.87
|
Non-interest income
as a percentage of total revenue
|
26.78
|
|
26.80
|
|
26.60
|
|
25.08
|
|
24.44
|
Efficiency
ratio
|
59.55
|
|
59.94
|
|
59.76
|
|
58.59
|
|
58.91
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
Nonperforming
assets
|
164,387
|
|
172,825
|
|
157,546
|
|
136,397
|
|
144,314
|
Allowance for loan
losses / total loans
|
1.14 %
|
|
1.14 %
|
|
1.14 %
|
|
1.15 %
|
|
1.16 %
|
Net charge-offs /
average loans (annualized)
|
0.21
|
|
0.19
|
|
0.20
|
|
0.20
|
|
0.24
|
Nonperforming loans /
total loans
|
1.04
|
|
1.14
|
|
1.07
|
|
0.93
|
|
1.03
|
Nonperforming assets
/ total loans plus OREO
|
1.08
|
|
1.17
|
|
1.10
|
|
0.98
|
|
1.07
|
Allowance for loan
losses / nonperforming loans
|
108.80
|
|
100.00
|
|
106.39
|
|
122.62
|
|
112.51
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
7.76 %
|
|
7.81 %
|
|
7.87 %
|
|
8.14 %
|
|
8.35 %
|
Tangible common
equity
|
7.24
|
|
7.27
|
|
7.20
|
|
7.45
|
|
7.64
|
Tier 1 risk-based
capital (a), (b)
|
11.65
|
|
11.80
|
|
12.01
|
|
12.95
|
|
13.06
|
Total risk-based
capital (a), (b)
|
13.06
|
|
13.21
|
|
13.44
|
|
14.06
|
|
14.17
|
Common equity tier 1
risk-based capital (a), (b)
|
10.81
|
|
10.94
|
|
10.93
|
|
11.43
|
|
11.50
|
Shareholders' equity
/ total assets
|
9.98
|
|
10.07
|
|
10.19
|
|
10.31
|
|
10.59
|
Net interest
margin
|
3.04
|
|
3.05
|
|
3.10
|
|
3.17
|
|
3.17
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
2,279,835
|
|
$
2,256,985
|
|
$
2,203,926
|
|
$
2,171,166
|
|
$
2,159,344
|
Book value per common
share
|
24.87
|
|
24.55
|
|
24.29
|
|
23.99
|
|
23.93
|
Tangible book value
per common share
|
18.55
|
|
18.23
|
|
17.87
|
|
18.10
|
|
18.02
|
Common stock closing
price
|
35.63
|
|
39.55
|
|
37.05
|
|
32.53
|
|
29.14
|
Dividends declared
per common share
|
0.23
|
|
0.23
|
|
0.20
|
|
0.20
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
Basic shares
(weighted average)
|
91,458
|
|
90,713
|
|
90,251
|
|
90,045
|
|
89,888
|
Diluted shares
(weighted average)
|
92,007
|
|
91,302
|
|
90,841
|
|
90,741
|
|
90,614
|
|
|
|
|
|
|
|
|
|
|
(a) The ratios
presented are projected for September 30, 2015 and actual for
the remaining periods presented.
|
(b) Calculated
under the Basel III capital standard for the 2015 periods and under
the Basel I capital standard for the 2014 periods.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
(In
thousands)
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014 (a)
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
251,898
|
|
$
205,650
|
|
$
207,128
|
Interest-bearing
deposits
|
19,257
|
|
142,083
|
|
105,394
|
Investment
securities:
|
|
|
|
|
|
Available for sale,
at fair value
|
3,015,417
|
|
2,837,158
|
|
2,873,886
|
Held to
maturity
|
3,951,208
|
|
4,064,022
|
|
3,641,979
|
Total
securities
|
6,966,625
|
|
6,901,180
|
|
6,515,865
|
Loans held for
sale
|
38,331
|
|
63,535
|
|
26,083
|
Loans:
|
|
|
|
|
|
Commercial
|
4,692,829
|
|
4,567,345
|
|
4,122,141
|
Commercial real
estate
|
3,857,155
|
|
3,770,252
|
|
3,354,107
|
Residential
mortgages
|
4,015,839
|
|
3,833,489
|
|
3,455,354
|
Consumer
|
2,650,702
|
|
2,606,440
|
|
2,581,900
|
Total
loans
|
15,216,525
|
|
14,777,526
|
|
13,513,502
|
Allowance for loan
losses
|
(172,992)
|
|
(167,860)
|
|
(156,482)
|
Loans,
net
|
15,043,533
|
|
14,609,666
|
|
13,357,020
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
184,280
|
|
180,290
|
|
171,174
|
Premises and
equipment, net
|
127,216
|
|
123,828
|
|
118,608
|
Goodwill and other
intangible assets, net
|
579,287
|
|
580,908
|
|
532,969
|
Cash surrender value
of life insurance policies
|
449,711
|
|
446,423
|
|
438,100
|
Deferred tax asset,
net
|
84,743
|
|
79,257
|
|
62,680
|
Accrued interest
receivable and other assets
|
324,901
|
|
287,966
|
|
292,024
|
Total
Assets
|
$ 24,069,782
|
|
$
23,620,786
|
|
$
21,827,045
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$
3,551,229
|
|
$
3,547,356
|
|
$
3,256,741
|
Interest-bearing
checking
|
2,183,267
|
|
2,214,973
|
|
2,105,481
|
Health savings
accounts
|
3,643,557
|
|
3,665,019
|
|
1,765,671
|
Money
market
|
2,186,383
|
|
1,757,095
|
|
2,239,106
|
Savings
|
3,956,054
|
|
3,998,169
|
|
3,877,673
|
Certificates of
deposit
|
1,762,046
|
|
1,811,864
|
|
2,007,942
|
Brokered certificates
of deposit
|
299,694
|
|
299,790
|
|
294,304
|
Total
deposits
|
17,582,230
|
|
17,294,266
|
|
15,546,918
|
Securities sold under
agreements to repurchase and other borrowings
|
1,002,018
|
|
1,014,504
|
|
1,236,975
|
Federal Home Loan
Bank advances
|
2,609,212
|
|
2,509,285
|
|
2,290,204
|
Long-term
debt
|
226,327
|
|
226,297
|
|
226,208
|
Accrued expenses and
other liabilities
|
247,450
|
|
196,739
|
|
215,747
|
Total
liabilities
|
21,667,237
|
|
21,241,091
|
|
19,516,052
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
122,710
|
|
151,649
|
Common shareholders'
equity
|
2,279,835
|
|
2,256,985
|
|
2,159,344
|
Webster Financial
Corporation shareholders' equity
|
2,402,545
|
|
2,379,695
|
|
2,310,993
|
Total Liabilities
and Equity
|
$ 24,069,782
|
|
$
23,620,786
|
|
$
21,827,045
|
|
|
|
|
|
|
(a) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
(a)
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
140,520
|
|
$
129,227
|
|
$
406,937
|
|
$
379,008
|
Interest and
dividends on securities
|
51,121
|
|
50,448
|
|
153,644
|
|
155,551
|
Loans held for
sale
|
357
|
|
239
|
|
1,299
|
|
631
|
Total interest
income
|
191,998
|
|
179,914
|
|
561,880
|
|
535,190
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
11,480
|
|
11,345
|
|
34,555
|
|
32,840
|
Borrowings
|
12,508
|
|
11,199
|
|
36,040
|
|
34,557
|
Total interest
expense
|
23,988
|
|
22,544
|
|
70,595
|
|
67,397
|
Net interest
income
|
168,010
|
|
157,370
|
|
491,285
|
|
467,793
|
Provision for loan
losses
|
13,000
|
|
9,500
|
|
35,500
|
|
27,750
|
Net interest
income after provision for loan losses
|
155,010
|
|
147,870
|
|
455,785
|
|
440,043
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit service
fees
|
35,229
|
|
26,489
|
|
102,347
|
|
77,503
|
Loan related
fees
|
8,305
|
|
5,479
|
|
19,713
|
|
14,851
|
Wealth and investment
services
|
7,761
|
|
8,762
|
|
24,434
|
|
26,429
|
Mortgage banking
activities
|
1,441
|
|
1,805
|
|
5,519
|
|
3,093
|
Increase in cash
surrender value of life insurance policies
|
3,288
|
|
3,346
|
|
9,637
|
|
9,900
|
Net gain on
investment securities
|
—
|
|
42
|
|
529
|
|
4,378
|
Other
income
|
5,513
|
|
5,071
|
|
17,099
|
|
12,425
|
|
61,537
|
|
50,994
|
|
179,278
|
|
148,579
|
Loss on write-down of
investment securities to fair value
|
(82)
|
|
(85)
|
|
(82)
|
|
(246)
|
Total non-interest
income
|
61,455
|
|
50,909
|
|
179,196
|
|
148,333
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
73,378
|
|
66,849
|
|
218,285
|
|
198,931
|
Occupancy
|
11,987
|
|
11,557
|
|
37,263
|
|
35,807
|
Technology and
equipment expense
|
21,336
|
|
15,419
|
|
60,808
|
|
46,166
|
Marketing
|
4,099
|
|
4,032
|
|
12,520
|
|
11,461
|
Professional and
outside services
|
2,896
|
|
2,470
|
|
8,224
|
|
6,441
|
Intangible assets
amortization
|
1,621
|
|
432
|
|
4,752
|
|
2,269
|
Foreclosed and
repossessed asset expenses
|
270
|
|
387
|
|
585
|
|
979
|
Foreclosed and
repossessed asset gains
|
(68)
|
|
(225)
|
|
(69)
|
|
(1,059)
|
Loan workout
expenses
|
719
|
|
969
|
|
2,398
|
|
2,822
|
Deposit
insurance
|
6,067
|
|
5,938
|
|
17,800
|
|
16,814
|
Other
expenses
|
17,758
|
|
17,083
|
|
47,741
|
|
50,481
|
|
140,063
|
|
124,911
|
|
410,307
|
|
371,112
|
Severance, contract,
and other
|
34
|
|
42
|
|
845
|
|
331
|
Acquisition
costs
|
—
|
|
144
|
|
527
|
|
144
|
Branch and facility
optimization
|
(243)
|
|
(599)
|
|
(289)
|
|
(151)
|
Total non-interest
expense
|
139,854
|
|
124,498
|
|
411,390
|
|
371,436
|
Income before income
taxes
|
76,611
|
|
74,281
|
|
223,591
|
|
216,940
|
Income tax
expense
|
25,075
|
|
23,824
|
|
69,830
|
|
68,220
|
Net
income
|
51,536
|
|
50,457
|
|
153,761
|
|
148,720
|
Preferred stock
dividends
|
(2,024)
|
|
(2,639)
|
|
(6,687)
|
|
(7,917)
|
Net income
available to common shareholders
|
$
49,512
|
|
$
47,818
|
|
$
147,074
|
|
$
140,803
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
92,007
|
|
90,614
|
|
91,391
|
|
90,591
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
0.53
|
|
$
1.61
|
|
$
1.56
|
Diluted
|
0.54
|
|
0.53
|
|
1.60
|
|
1.55
|
|
|
|
|
|
|
|
|
(a) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Consolidated Statements of Income
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In thousands,
except per share data)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
140,520
|
|
$
135,694
|
|
$
130,723
|
|
$
132,604
|
|
$
129,227
|
Interest and
dividends on securities
|
51,121
|
|
50,844
|
|
51,679
|
|
50,921
|
|
50,448
|
Loans held for
sale
|
357
|
|
432
|
|
510
|
|
226
|
|
239
|
Total interest
income
|
191,998
|
|
186,970
|
|
182,912
|
|
183,751
|
|
179,914
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,480
|
|
11,533
|
|
11,542
|
|
11,322
|
|
11,345
|
Borrowings
|
12,508
|
|
11,926
|
|
11,606
|
|
11,781
|
|
11,199
|
Total interest
expense
|
23,988
|
|
23,459
|
|
23,148
|
|
23,103
|
|
22,544
|
Net interest
income
|
168,010
|
|
163,511
|
|
159,764
|
|
160,648
|
|
157,370
|
Provision for loan
losses
|
13,000
|
|
12,750
|
|
9,750
|
|
9,500
|
|
9,500
|
Net interest
income after provision for loan losses
|
155,010
|
|
150,761
|
|
150,014
|
|
151,148
|
|
147,870
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
35,229
|
|
34,493
|
|
32,625
|
|
25,928
|
|
26,489
|
Loan related
fees
|
8,305
|
|
5,729
|
|
5,679
|
|
8,361
|
|
5,479
|
Wealth and investment
services
|
7,761
|
|
8,784
|
|
7,889
|
|
8,517
|
|
8,762
|
Mortgage banking
activities
|
1,441
|
|
2,517
|
|
1,561
|
|
977
|
|
1,805
|
Increase in cash
surrender value of life insurance policies
|
3,288
|
|
3,197
|
|
3,152
|
|
3,278
|
|
3,346
|
Net gain on
investment securities
|
—
|
|
486
|
|
43
|
|
1,121
|
|
42
|
Other
income
|
5,513
|
|
4,645
|
|
6,941
|
|
6,492
|
|
5,071
|
|
61,537
|
|
59,851
|
|
57,890
|
|
54,674
|
|
50,994
|
Loss on write-down of
investment securities to fair value
|
(82)
|
|
—
|
|
—
|
|
(899)
|
|
(85)
|
Total non-interest
income
|
61,455
|
|
59,851
|
|
57,890
|
|
53,775
|
|
50,909
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
73,378
|
|
74,043
|
|
70,864
|
|
71,220
|
|
66,849
|
Occupancy
|
11,987
|
|
11,680
|
|
13,596
|
|
11,518
|
|
11,557
|
Technology and
equipment expense
|
21,336
|
|
20,224
|
|
19,248
|
|
15,827
|
|
15,419
|
Marketing
|
4,099
|
|
4,245
|
|
4,176
|
|
3,918
|
|
4,032
|
Professional and
outside services
|
2,896
|
|
2,875
|
|
2,453
|
|
1,855
|
|
2,470
|
Intangible assets
amortization
|
1,621
|
|
1,843
|
|
1,288
|
|
416
|
|
432
|
Foreclosed and
repossessed asset expenses
|
270
|
|
146
|
|
169
|
|
244
|
|
387
|
Foreclosed and
repossessed asset (gains) losses
|
(68)
|
|
(537)
|
|
536
|
|
(238)
|
|
(225)
|
Loan workout
expenses
|
719
|
|
801
|
|
878
|
|
685
|
|
969
|
Deposit
insurance
|
6,067
|
|
5,492
|
|
6,241
|
|
5,856
|
|
5,938
|
Other
expenses
|
17,758
|
|
15,817
|
|
14,166
|
|
16,158
|
|
17,083
|
|
140,063
|
|
136,629
|
|
133,615
|
|
127,459
|
|
124,911
|
Severance, contract,
and other
|
34
|
|
521
|
|
290
|
|
633
|
|
42
|
Acquisition
costs
|
—
|
|
18
|
|
509
|
|
396
|
|
144
|
Branch and facility
optimization
|
(243)
|
|
278
|
|
(324)
|
|
276
|
|
(599)
|
Provision for
litigation and settlements
|
—
|
|
—
|
|
—
|
|
1,400
|
|
—
|
Total non-interest
expense
|
139,854
|
|
137,446
|
|
134,090
|
|
130,164
|
|
124,498
|
Income before income
taxes
|
76,611
|
|
73,166
|
|
73,814
|
|
74,759
|
|
74,281
|
Income tax
expense
|
25,075
|
|
20,663
|
|
24,092
|
|
23,753
|
|
23,824
|
Net
income
|
51,536
|
|
52,503
|
|
49,722
|
|
51,006
|
|
50,457
|
Preferred stock
dividends
|
(2,024)
|
|
(2,024)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
Net income
available to common shareholders
|
$
49,512
|
|
$
50,479
|
|
$
47,083
|
|
$
48,367
|
|
$
47,818
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
92,007
|
|
91,302
|
|
90,841
|
|
90,741
|
|
90,614
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
0.55
|
|
$
0.52
|
|
$
0.54
|
|
$
0.53
|
Diluted
|
0.54
|
|
0.55
|
|
0.52
|
|
0.53
|
|
0.53
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent yield/rate
|
|
Average
balance(b)
|
|
Interest
|
|
Fully tax- equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 15,009,991
|
|
$
141,064
|
|
3.71 %
|
|
$
13,391,870
|
|
$
129,760
|
|
3.83 %
|
Investment securities
(a)
|
6,900,984
|
|
51,175
|
|
2.97
|
|
6,431,099
|
|
51,414
|
|
3.21
|
Federal Home Loan and
Federal Reserve Bank stock
|
182,304
|
|
1,922
|
|
4.18
|
|
169,295
|
|
1,188
|
|
2.78
|
Interest-bearing
deposits
|
118,627
|
|
76
|
|
0.25
|
|
20,636
|
|
13
|
|
0.25
|
Loans held for
sale
|
40,428
|
|
357
|
|
3.53
|
|
26,789
|
|
239
|
|
3.56
|
Total
interest-earning assets
|
22,252,334
|
|
$
194,594
|
|
3.47 %
|
|
20,039,689
|
|
$
182,614
|
|
3.62 %
|
Non-interest-earning
assets
|
1,669,157
|
|
|
|
|
|
1,530,473
|
|
|
|
|
Total
assets
|
$ 23,921,491
|
|
|
|
|
|
$
21,570,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,656,780
|
|
$
—
|
|
—%
|
|
$
3,302,164
|
|
$
—
|
|
—%
|
Savings, interest
checking, and money market
|
11,995,402
|
|
5,650
|
|
0.19
|
|
9,942,519
|
|
4,509
|
|
0.18
|
Certificates of
deposit
|
2,083,880
|
|
5,830
|
|
1.11
|
|
2,303,082
|
|
6,836
|
|
1.18
|
Total
deposits
|
17,736,062
|
|
11,480
|
|
0.26
|
|
15,547,765
|
|
11,345
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,137,552
|
|
4,138
|
|
1.42
|
|
1,366,774
|
|
4,587
|
|
1.31
|
Federal Home Loan
Bank advances
|
2,231,901
|
|
5,949
|
|
1.04
|
|
1,945,688
|
|
4,203
|
|
0.85
|
Long-term
debt
|
226,307
|
|
2,421
|
|
4.28
|
|
226,188
|
|
2,409
|
|
4.26
|
Total
borrowings
|
3,595,760
|
|
12,508
|
|
1.37
|
|
3,538,650
|
|
11,199
|
|
1.24
|
Total
interest-bearing liabilities
|
21,331,822
|
|
$
23,988
|
|
0.44 %
|
|
19,086,415
|
|
$
22,544
|
|
0.47 %
|
Non-interest-bearing
liabilities
|
185,999
|
|
|
|
|
|
176,852
|
|
|
|
|
Total
liabilities
|
21,517,821
|
|
|
|
|
|
19,263,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,280,960
|
|
|
|
|
|
2,155,246
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,403,670
|
|
|
|
|
|
2,306,895
|
|
|
|
|
Total
liabilities and equity
|
$ 23,921,491
|
|
|
|
|
|
$
21,570,162
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
170,606
|
|
|
|
|
|
160,070
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(2,596)
|
|
|
|
|
|
(2,700)
|
|
|
Net
interest income
|
|
|
$
168,010
|
|
|
|
|
|
$
157,370
|
|
|
Net
interest margin
|
|
|
|
|
3.04 %
|
|
|
|
|
|
3.17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent yield/rate
|
|
Average
balance(b)
|
|
Interest
|
|
Fully tax- equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 14,508,111
|
|
$
408,541
|
|
3.73 %
|
|
$
13,127,001
|
|
$
380,564
|
|
3.84 %
|
Investment securities
(a)
|
6,817,876
|
|
155,084
|
|
3.04
|
|
6,421,198
|
|
158,943
|
|
3.31
|
Federal Home Loan and
Federal Reserve Bank stock
|
189,394
|
|
4,617
|
|
3.26
|
|
164,906
|
|
3,513
|
|
2.85
|
Interest-bearing
deposits
|
114,494
|
|
218
|
|
0.25
|
|
17,809
|
|
35
|
|
0.26
|
Loans held for
sale
|
43,824
|
|
1,299
|
|
3.95
|
|
21,703
|
|
631
|
|
3.87
|
Total
interest-earning assets
|
21,673,699
|
|
$
569,759
|
|
3.50 %
|
|
19,752,617
|
|
$
543,686
|
|
3.66 %
|
Non-interest-earning
assets
|
1,657,016
|
|
|
|
|
|
1,516,524
|
|
|
|
|
Total
assets
|
$ 23,330,715
|
|
|
|
|
|
$
21,269,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,521,294
|
|
$
—
|
|
—%
|
|
$
3,166,841
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
11,769,750
|
|
15,786
|
|
0.18
|
|
9,847,132
|
|
13,441
|
|
0.18
|
Certificates of deposit
|
2,162,970
|
|
18,769
|
|
1.16
|
|
2,278,172
|
|
19,399
|
|
1.14
|
Total
deposits
|
17,454,014
|
|
34,555
|
|
0.26
|
|
15,292,145
|
|
32,840
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other
borrowings
|
1,149,095
|
|
12,711
|
|
1.46
|
|
1,377,069
|
|
14,874
|
|
1.42
|
Federal Home Loan
Bank advances
|
1,922,080
|
|
16,099
|
|
1.10
|
|
1,901,877
|
|
12,052
|
|
0.84
|
Long-term
debt
|
226,278
|
|
7,230
|
|
4.26
|
|
261,180
|
|
7,631
|
|
3.90
|
Total
borrowings
|
3,297,453
|
|
36,040
|
|
1.44
|
|
3,540,126
|
|
34,557
|
|
1.29
|
Total
interest-bearing liabilities
|
20,751,467
|
|
$
70,595
|
|
0.45 %
|
|
18,832,271
|
|
$
67,397
|
|
0.48 %
|
Non-interest-bearing
liabilities
|
201,576
|
|
|
|
|
|
164,397
|
|
|
|
|
Total
liabilities
|
20,953,043
|
|
|
|
|
|
18,996,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
138,717
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,238,955
|
|
|
|
|
|
2,120,824
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,377,672
|
|
|
|
|
|
2,272,473
|
|
|
|
|
Total
liabilities and equity
|
$ 23,330,715
|
|
|
|
|
|
$
21,269,141
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
499,164
|
|
|
|
|
|
476,289
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(7,879)
|
|
|
|
|
|
(8,496)
|
|
|
Net
interest income
|
|
|
$
491,285
|
|
|
|
|
|
$
467,793
|
|
|
Net
interest margin
|
|
|
|
|
3.06 %
|
|
|
|
|
|
3.21 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan Balances (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Loan Balances
(actuals):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,423,775
|
|
$
3,310,863
|
|
$
3,183,218
|
|
$
3,087,940
|
|
$
2,984,949
|
Equipment
financing
|
552,850
|
|
545,441
|
|
543,636
|
|
537,751
|
|
490,150
|
Asset-based
lending
|
716,204
|
|
711,041
|
|
716,592
|
|
661,330
|
|
647,042
|
Commercial real
estate
|
3,857,155
|
|
3,770,252
|
|
3,663,071
|
|
3,554,428
|
|
3,354,107
|
Residential
mortgages
|
4,015,839
|
|
3,833,489
|
|
3,594,272
|
|
3,509,174
|
|
3,455,353
|
Consumer
|
2,568,009
|
|
2,520,970
|
|
2,480,270
|
|
2,457,345
|
|
2,485,870
|
Total continuing
portfolio
|
15,133,832
|
|
14,692,056
|
|
14,181,059
|
|
13,807,968
|
|
13,417,471
|
Allowance for loan
losses
|
(165,341)
|
|
(159,501)
|
|
(152,825)
|
|
(149,813)
|
|
(145,818)
|
Total continuing
portfolio, net
|
14,968,491
|
|
14,532,555
|
|
14,028,234
|
|
13,658,155
|
|
13,271,653
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
National
Construction Lending Center (NCLC)
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Consumer
|
82,693
|
|
85,470
|
|
89,167
|
|
92,056
|
|
96,030
|
Total liquidating
portfolio
|
82,693
|
|
85,470
|
|
89,167
|
|
92,057
|
|
96,031
|
Allowance for loan
losses
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
Total liquidating
portfolio, net
|
75,042
|
|
77,111
|
|
80,022
|
|
82,606
|
|
85,367
|
Total Loan
Balances (actuals)
|
15,216,525
|
|
14,777,526
|
|
14,270,226
|
|
13,900,025
|
|
13,513,502
|
Allowance for loan
losses
|
(172,992)
|
|
(167,860)
|
|
(161,970)
|
|
(159,264)
|
|
(156,482)
|
Loans,
net
|
$ 15,043,533
|
|
$
14,609,666
|
|
$
14,108,256
|
|
$
13,740,761
|
|
$
13,357,020
|
|
|
|
|
|
|
|
|
|
|
Loan Balances
(average):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,363,074
|
|
$
3,247,527
|
|
$
3,096,762
|
|
$
3,036,412
|
|
$
2,987,403
|
Equipment
financing
|
549,310
|
|
542,112
|
|
542,067
|
|
509,331
|
|
478,333
|
Asset-based
lending
|
712,811
|
|
709,985
|
|
675,218
|
|
647,952
|
|
621,856
|
Commercial real
estate
|
3,804,904
|
|
3,705,895
|
|
3,574,826
|
|
3,452,954
|
|
3,329,767
|
Residential
mortgages
|
3,950,654
|
|
3,711,096
|
|
3,546,098
|
|
3,483,444
|
|
3,409,010
|
Consumer
|
2,544,789
|
|
2,504,668
|
|
2,468,422
|
|
2,491,359
|
|
2,467,839
|
Total continuing
portfolio
|
14,925,542
|
|
14,421,283
|
|
13,903,393
|
|
13,621,452
|
|
13,294,208
|
Allowance for loan
losses
|
(163,421)
|
|
(156,698)
|
|
(153,790)
|
|
(150,706)
|
|
(146,863)
|
Total continuing
portfolio, net
|
14,762,121
|
|
14,264,585
|
|
13,749,603
|
|
13,470,746
|
|
13,147,345
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
1
|
|
1
|
|
1
|
Consumer
|
84,449
|
|
87,418
|
|
91,088
|
|
94,069
|
|
97,661
|
Total liquidating
portfolio
|
84,449
|
|
87,418
|
|
91,089
|
|
94,070
|
|
97,662
|
Allowance for loan
losses
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
Total liquidating
portfolio, net
|
76,798
|
|
79,059
|
|
81,944
|
|
84,619
|
|
86,998
|
Total Loan
Balances (average)
|
15,009,991
|
|
14,508,701
|
|
13,994,482
|
|
13,715,522
|
|
13,391,870
|
Allowance for loan
losses
|
(171,072)
|
|
(165,057)
|
|
(162,935)
|
|
(160,157)
|
|
(157,527)
|
Loans,
net
|
$ 14,838,919
|
|
$
14,343,644
|
|
$
13,831,547
|
|
$
13,555,365
|
|
$
13,234,343
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
40,235
|
|
$
43,081
|
|
$
27,057
|
|
$
6,436
|
|
$
12,421
|
Equipment
financing
|
403
|
|
301
|
|
285
|
|
518
|
|
1,659
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
23,828
|
|
26,893
|
|
25,814
|
|
18,675
|
|
18,341
|
Residential
mortgages
|
57,603
|
|
58,663
|
|
61,274
|
|
64,022
|
|
67,541
|
Consumer
|
32,969
|
|
34,236
|
|
33,696
|
|
35,770
|
|
34,566
|
Nonperforming
loans - continuing portfolio
|
155,038
|
|
163,174
|
|
148,126
|
|
125,421
|
|
134,528
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
3,965
|
|
4,682
|
|
4,117
|
|
4,460
|
|
4,560
|
Total
nonperforming loans
|
$
159,003
|
|
$
167,856
|
|
$
152,243
|
|
$
129,881
|
|
$
139,088
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
—
|
|
$
—
|
|
$
—
|
|
$
2,899
|
|
$
2,899
|
Repossessed
equipment
|
—
|
|
—
|
|
—
|
|
100
|
|
100
|
Residential
|
4,078
|
|
3,930
|
|
3,051
|
|
2,280
|
|
1,712
|
Consumer
|
1,306
|
|
1,039
|
|
2,252
|
|
1,237
|
|
515
|
Total
continuing portfolio
|
5,384
|
|
4,969
|
|
5,303
|
|
6,516
|
|
5,226
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Total
liquidating portfolio
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total other real
estate owned and repossessed assets
|
$
5,384
|
|
$
4,969
|
|
$
5,303
|
|
$
6,516
|
|
$
5,226
|
Total
nonperforming assets
|
$
164,387
|
|
$
172,825
|
|
$
157,546
|
|
$
136,397
|
|
$
144,314
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
4,415
|
|
$
1,778
|
|
$
3,992
|
|
$
2,099
|
|
$
8,795
|
Equipment
financing
|
739
|
|
517
|
|
789
|
|
701
|
|
433
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
1,939
|
|
1,547
|
|
3,962
|
|
2,714
|
|
1,625
|
Residential
mortgages
|
15,222
|
|
12,315
|
|
13,966
|
|
17,216
|
|
15,980
|
Consumer
|
15,850
|
|
13,053
|
|
18,459
|
|
15,867
|
|
15,852
|
Past due 30-89
days - continuing portfolio
|
38,165
|
|
29,210
|
|
41,168
|
|
38,597
|
|
42,685
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
953
|
|
1,299
|
|
1,820
|
|
1,658
|
|
1,419
|
Total past due
30-89 days
|
39,118
|
|
30,509
|
|
42,988
|
|
40,255
|
|
44,104
|
Loans past due 90
days or more and accruing
|
2,228
|
|
1,923
|
|
2,109
|
|
2,087
|
|
1,980
|
Total past due
loans
|
$
41,346
|
|
$
32,432
|
|
$
45,097
|
|
$
42,342
|
|
$
46,084
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan Losses
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Dollars in
thousands)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Beginning
balance
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
Provision
|
13,000
|
|
12,750
|
|
9,750
|
|
9,500
|
|
9,500
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
2,204
|
|
2,541
|
|
255
|
|
4,097
|
|
2,738
|
Equipment
financing
|
—
|
|
15
|
|
15
|
|
84
|
|
491
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
1,346
|
|
1,091
|
|
3,153
|
|
246
|
|
139
|
Residential
mortgages
|
1,588
|
|
1,461
|
|
1,953
|
|
1,346
|
|
1,870
|
Consumer
|
3,991
|
|
3,531
|
|
3,634
|
|
3,648
|
|
5,078
|
Charge-offs
continuing portfolio
|
9,129
|
|
8,639
|
|
9,010
|
|
9,421
|
|
10,316
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
Consumer
|
840
|
|
322
|
|
662
|
|
563
|
|
1,251
|
Charge-offs
liquidating portfolio
|
840
|
|
322
|
|
664
|
|
563
|
|
1,251
|
Total
charge-offs
|
9,969
|
|
8,961
|
|
9,674
|
|
9,984
|
|
11,567
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
558
|
|
527
|
|
989
|
|
1,258
|
|
967
|
Equipment
financing
|
32
|
|
102
|
|
143
|
|
702
|
|
336
|
Asset-based
lending
|
157
|
|
2
|
|
26
|
|
—
|
|
50
|
Commercial real
estate
|
69
|
|
52
|
|
202
|
|
217
|
|
120
|
Residential
mortgages
|
280
|
|
365
|
|
104
|
|
291
|
|
250
|
Consumer
|
852
|
|
849
|
|
821
|
|
636
|
|
1,770
|
Recoveries continuing
portfolio
|
1,948
|
|
1,897
|
|
2,285
|
|
3,104
|
|
3,493
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
1
|
|
4
|
|
4
|
|
5
|
|
11
|
Consumer
|
152
|
|
200
|
|
341
|
|
157
|
|
177
|
Recoveries
liquidating portfolio
|
153
|
|
204
|
|
345
|
|
162
|
|
188
|
Total
recoveries
|
2,101
|
|
2,101
|
|
2,630
|
|
3,266
|
|
3,681
|
Total net
charge-offs
|
7,868
|
|
6,860
|
|
7,044
|
|
6,718
|
|
7,886
|
Ending
balance
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates
its business based on the following ratios that utilize tangible
equity, a non-GAAP financial measure. Return on average tangible
common shareholders' equity measures the Company's net income
available to common shareholders, adjusted for the tax-affected
amortization of intangible assets, as a percentage of average
common shareholders' equity less goodwill and intangible assets
(excluding mortgage servicing rights). The tangible equity ratio
represents total ending shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
total assets less goodwill and intangible assets (excluding
mortgage servicing rights). The tangible common equity ratio
represents ending common shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
total assets less goodwill and intangible assets (excluding
mortgage servicing rights). Tangible book value per common share
represents ending common shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
ending common shares outstanding.
|
|
|
The efficiency ratio,
which measures the costs expended to generate a dollar of revenue,
is calculated excluding foreclosed property expense, amortization
of intangibles, gain or loss on securities, and other non-recurring
items. Accordingly, this is also a non-GAAP financial
measure.
|
|
|
The Company believes
the use of these non-GAAP financial measures provides additional
clarity in assessing the results of the Company. Other companies
may define or calculate supplemental financial data differently.
See the tables below for reconciliations of these non-GAAP
financial measures with financial measures defined by
GAAP.
|
|
|
|
At or for the
Three Months Ended
|
(Dollars in
thousands, except per share data)
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income available to common shareholders to net income used for
computing the return on average tangible common shareholders'
equity ratio
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders
|
$
49,512
|
|
$
50,479
|
|
$
47,083
|
|
$
48,367
|
|
$
47,818
|
Amortization of
intangibles (tax-affected @ 35%)
|
1,054
|
|
1,198
|
|
837
|
|
270
|
|
281
|
Quarterly net income
adjusted for amortization of intangibles
|
50,566
|
|
51,677
|
|
47,920
|
|
48,637
|
|
48,099
|
Annualized net
income used in the return on average tangible common shareholders'
equity ratio
|
$
202,264
|
|
$
206,708
|
|
$
191,680
|
|
$
194,548
|
|
$
192,396
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$
2,280,960
|
|
$
2,236,743
|
|
$
2,198,254
|
|
$
2,189,191
|
|
$
2,155,246
|
Average
goodwill
|
(538,373)
|
|
(538,373)
|
|
(537,147)
|
|
(529,887)
|
|
(529,887)
|
Average intangible
assets (excluding mortgage servicing rights)
|
(41,845)
|
|
(43,538)
|
|
(39,559)
|
|
(2,862)
|
|
(3,294)
|
Average tangible
common shareholders' equity
|
$
1,700,742
|
|
$
1,654,832
|
|
$
1,621,548
|
|
$
1,656,442
|
|
$
1,622,065
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,402,545
|
|
$
2,379,695
|
|
$
2,355,575
|
|
$
2,322,815
|
|
$
2,310,993
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
Tangible
shareholders' equity
|
$
1,823,258
|
|
$
1,798,787
|
|
$
1,772,824
|
|
$
1,790,262
|
|
$
1,778,024
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end common shareholders' equity to period-end tangible
common shareholders' equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,402,545
|
|
$
2,379,695
|
|
$
2,355,575
|
|
$
2,322,815
|
|
$
2,310,993
|
Preferred
stock
|
(122,710)
|
|
(122,710)
|
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
Common shareholders'
equity
|
2,279,835
|
|
2,256,985
|
|
2,203,926
|
|
2,171,166
|
|
2,159,344
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
Tangible common
shareholders' equity
|
$
1,700,548
|
|
$
1,676,077
|
|
$
1,621,175
|
|
$
1,638,613
|
|
$
1,626,375
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 24,069,782
|
|
$
23,620,786
|
|
$
23,106,688
|
|
$
22,533,172
|
|
$
21,827,045
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
Tangible
assets
|
$ 23,490,495
|
|
$
23,039,878
|
|
$
22,523,937
|
|
$
22,000,619
|
|
$
21,294,076
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$
2,279,835
|
|
$
2,256,985
|
|
$
2,203,926
|
|
$
2,171,166
|
|
$
2,159,344
|
Ending common shares
issued and outstanding (in thousands)
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
Book value per
share of common stock
|
$
24.87
|
|
$
24.55
|
|
$
24.29
|
|
$
23.99
|
|
$
23.93
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$
1,700,548
|
|
$
1,676,077
|
|
$
1,621,175
|
|
$
1,638,613
|
|
$
1,626,375
|
Ending common shares
issued and outstanding (in thousands)
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
Tangible book
value per common share
|
$
18.55
|
|
$
18.23
|
|
$
17.87
|
|
$
18.10
|
|
$
18.02
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
139,854
|
|
$
137,446
|
|
$
134,090
|
|
$
130,164
|
|
$
124,498
|
Foreclosed property
expense
|
(270)
|
|
(146)
|
|
(169)
|
|
(244)
|
|
(387)
|
Intangible assets
amortization
|
(1,621)
|
|
(1,843)
|
|
(1,288)
|
|
(416)
|
|
(432)
|
Other
expense
|
277
|
|
(280)
|
|
(1,011)
|
|
(2,467)
|
|
638
|
Non-interest
expense used in the efficiency ratio
|
$
138,240
|
|
$
135,177
|
|
$
131,622
|
|
$
127,037
|
|
$
124,317
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income to income used in the efficiency ratio
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
$
168,010
|
|
$
163,511
|
|
$
159,764
|
|
$
160,648
|
|
$
157,370
|
Fully
taxable-equivalent adjustment
|
2,596
|
|
2,626
|
|
2,657
|
|
2,628
|
|
2,700
|
Non-interest
income
|
61,455
|
|
59,851
|
|
57,890
|
|
53,775
|
|
50,909
|
Net gain on
investment securities
|
—
|
|
(486)
|
|
(43)
|
|
(1,121)
|
|
(42)
|
Other
|
82
|
|
—
|
|
—
|
|
899
|
|
85
|
Income used in the
efficiency ratio
|
$
232,143
|
|
$
225,502
|
|
$
220,268
|
|
$
216,829
|
|
$
211,022
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2015-third-quarter-earnings-300160029.html
SOURCE Webster Financial Corporation