WATERBURY, Conn., July 20, 2016 /PRNewswire/ -- Webster
Financial Corporation (NYSE: WBS), the holding company for
Webster Bank, N.A., today announced
earnings applicable to common shareholders of $48.4 million, or $0.53 per diluted share, for the quarter ended
June 30, 2016 compared to
$49.8 million, or $0.55 per diluted share, for the quarter ended
June 30, 2015. The second quarter of
2015 included a $3.7 million net tax
benefit, or $0.04 per diluted
share.
"Double-digit loan growth once again propelled strong revenue
growth as Webster bankers continued to excel in service to
businesses and consumers," said James C.
Smith, chairman and chief executive officer. "Loan
originations in excess of $1 billion,
coupled with exceptionally strong credit metrics, helped overcome
margin pressure from today's historically low interest rate
environment to produce another solid quarter."
Highlights for the second quarter of 2016 compared to the
second quarter of 2015:
- Revenue of $242.0 million, an
increase of 8.6 percent, including a record level of net interest
income of $176.9 million.
- Loan growth of $1.5 billion, or
10.1 percent, with growth of $1.1
billion in commercial and commercial real estate loans.
- Deposit growth of $1.5 billion,
or 8.9 percent, with growth of $1.1
billion in transactional and health savings account
deposits.
- Efficiency ratio (non-GAAP) of 61.47 percent
- Annualized return on average tangible common shareholders'
equity (non-GAAP) of 11.25 percent.
"Ongoing strategic investments in our businesses, along with
continued expense discipline, are designed to maximize shareholder
value over time," said Glenn
MacInnes, executive vice president and chief financial
officer.
Prior period information:
Certain previously reported information has been modified to
reflect immaterial corrections to HSA Bank results related to
service fee revenue accruals and technology expense accruals in
prior periods. Comparisons to prior periods in this press release
reflect these corrections. See the detailed reconciliation in our
attached tables.
Quarterly net interest income compared to the second quarter
of 2015:
- Net interest income was $176.9
million compared to $163.5
million.
- Net interest margin was 3.08 percent compared to 3.05 percent.
The yield on interest-earning assets increased by 4 basis points,
while the cost of funds increased by 1 basis point.
- Average interest-earning assets totaled $23.3 billion and grew by $1.5 billion, or 7.1 percent.
- Average loans totaled $16.1
billion and grew by $1.6
billion, or 10.8 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$14.0 million compared to
$15.6 million in the first quarter of
2016 and $12.8 million a year
ago.
- Net charge-offs were $7.8 million
compared to $16.4 million in the
prior quarter and $6.9 million a year
ago. The prior quarter increase in net charge-offs was primarily
related to the commercial segment. The ratio of net charge-offs to
average loans on an annualized basis was 0.19 percent compared to
0.41 percent in the prior quarter and 0.19 percent a year ago.
- The allowance for loan losses represented 1.11 percent of total
loans compared to 1.10 percent at March 31,
2016 and 1.14 percent at June 30,
2015. The allowance for loan losses represented 136 percent
of nonperforming loans compared to 124 percent at March 31,2016 and 100 percent a year ago.
Quarterly non-interest income compared to the second quarter
of 2015:
- Total non-interest income was $65.1
million compared to $59.2
million, an increase of $5.9
million. The increase reflects increases of $4.6 million in other income primarily related to
higher client hedging revenues, $1.3
million in loan fees, and $1.0
million in deposit service fees primarily related to HSA
Bank. Securities gains were $0.1
million in the quarter for a decline of $0.4 million from a year ago.
Quarterly non-interest expense compared to the second quarter
of 2015:
- Total non-interest expense was $152.8
million compared to $137.5
million, an increase of $15.3
million. The increase reflects added expenses of
$5.5 million related to the
Boston expansion, $3.5 million related to growth at HSA Bank, and
$1.1 million in deposit insurance
related expense. The remaining $5.2
million increase reflects higher compensation expense and
other expenses.
Quarterly income taxes compared to the second quarter of
2015:
- Income tax expense was $24.6
million compared to $20.4
million, and the effective tax rate was 32.7 percent
compared to 28.2 percent. The quarter included a $0.4 million net tax benefit specific to the
period compared to $3.7 million a
year ago, which was primarily related to a change in the estimated
realizability of the Company's state deferred tax assets.
Investment securities:
- Total investment securities were $6.8
billion compared to $7.1
billion at March 31, 2016 and
$6.9 billion a year ago. The carrying
value of the available-for-sale portfolio included $19.5 million of net unrealized gains compared to
$1.6 million at March 31, 2016 and $14.9
million a year ago, while the carrying value of the
held-to-maturity portfolio does not reflect $106.8 million of net unrealized gains compared
to $82.2 million at March 31, 2016 and $50.6
million a year ago.
Loans:
- Total loans were $16.3 billion
compared to $15.9 billion at
March 31, 2016 and $14.8 billion a year ago. Compared to
March 31, 2016, commercial,
commercial real estate, residential mortgage, and consumer loans
increased by $220.5 million,
$144.2 million, $47.4 million, and $1.6
million, respectively.
- Compared to a year ago, commercial, commercial real estate,
residential mortgage, and consumer loans increased by $628.5 million, $420.8
million, $323.2 million, and
$122.0 million, respectively.
- Loan originations for portfolio were $1.314 billion compared to $900 million in the prior quarter and
$1.363 billion a year ago. In
addition, $109 million of residential
loans were originated for sale in the quarter compared to
$73 million in the prior quarter and
$147 million a year ago.
Asset quality:
- Total nonperforming loans were $132.9
million, or 0.82 percent of total loans, compared to
$140.7 million, or 0.89 percent, at
March 31, 2016 and $167.9 million, or 1.14 percent, a year ago.
Total paying nonperforming loans were $33.8
million compared to $43.7
million at March 31, 2016 and
$48.7 million a year ago.
- Past due loans were $34.7 million
compared to $55.7 million at
March 31, 2016 and $32.4 million a year ago. Included in past due
loans are loans past due 90 days or more and still accruing, which
increased $2.3 million from the prior
quarter and $3.8 million from the
prior year.
Deposits and borrowings:
- Total deposits were $18.8 billion
compared to $18.7 billion at
March 31, 2016 and $17.3 billion a year ago. Core deposits to total
deposits were 89.4 percent compared to 89.2 percent at March 31, 2016 and 87.8 percent a year ago. Loans
to deposits were 86.4 percent compared to 84.7 percent at
March 31, 2016 and 85.4 percent a
year ago.
- Total borrowings were $3.6
billion compared to $3.5
billion at March 31, 2016 and
$3.7 billion a year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 11.25
percent and 8.31 percent, respectively, compared to 12.39 percent
and 8.95 percent, respectively, in the second quarter of 2015.
- The tangible equity and tangible common equity ratios were 7.75
percent and 7.25 percent, respectively, compared to 7.81 percent
and 7.28 percent, respectively, at June 30,
2015. The common equity tier 1 risk-based capital ratio was
10.50 percent compared to 10.94 percent a year ago.
- Book value and tangible book value per common share were
$25.68 and $19.41, respectively, compared to $24.55 and $18.23,
respectively, a year ago.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $25.1 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 176 banking
centers and 349 ATMs. Webster also provides telephone banking,
mobile banking, and Internet banking. 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 2016 second quarter
earnings announcement will be held today, Wednesday, July 20, 2016 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 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. 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)
|
June 30,
2016
|
|
March 31,
2016 (b)
|
|
December 31,
2015 (b)
|
|
September 30,
2015 (b)
|
|
June 30,
2015 (b)
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
50,603
|
|
$
47,047
|
|
$
51,812
|
|
$
51,370
|
|
$
52,043
|
Earnings applicable
to common shareholders
|
48,398
|
|
44,921
|
|
49,646
|
|
49,176
|
|
49,819
|
Earnings per diluted
common share
|
0.53
|
|
0.49
|
|
0.54
|
|
0.53
|
|
0.55
|
Return on average
assets
|
0.81
%
|
|
0.76 %
|
|
0.85 %
|
|
0.86 %
|
|
0.89 %
|
Return on average
tangible common shareholders' equity
(non-GAAP)
|
11.25
|
|
10.63
|
|
11.82
|
|
11.86
|
|
12.39
|
Return on average
common shareholders' equity
|
8.31
|
|
7.80
|
|
8.67
|
|
8.66
|
|
8.95
|
Non-interest income
as a percentage of total revenue
|
26.89
|
|
26.15
|
|
25.61
|
|
26.73
|
|
26.60
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses
|
$
180,428
|
|
$
174,201
|
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
Nonperforming
assets
|
137,347
|
|
145,787
|
|
144,970
|
|
164,387
|
|
172,825
|
Allowance for loan
and lease losses / total loans and leases
|
1.11
%
|
|
1.10 %
|
|
1.12 %
|
|
1.14 %
|
|
1.14 %
|
Net charge-offs /
average loans and leases (annualized)
|
0.19
|
|
0.41 %
|
|
0.31
|
|
0.21
|
|
0.19
|
Nonperforming loans
and leases / total loans and leases
|
0.82
|
|
0.89
|
|
0.89
|
|
1.04
|
|
1.14
|
Nonperforming assets
/ total loans and leases plus OREO
|
0.84
|
|
0.92
|
|
0.92
|
|
1.08
|
|
1.17
|
Allowance for loan
and lease losses / nonperforming loans and leases
|
135.75
|
|
123.79
|
|
125.05
|
|
108.80
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible equity
(non-GAAP)
|
7.75
%
|
|
7.63 %
|
|
7.63 %
|
|
7.78 %
|
|
7.81 %
|
Tangible common
equity (non-GAAP)
|
7.25
|
|
7.13
|
|
7.12
|
|
7.25
|
|
7.28
|
Tier 1 risk-based
capital (a)
|
11.19
|
|
11.34
|
|
11.54
|
|
11.62
|
|
11.80
|
Total risk-based
capital (a)
|
12.66
|
|
12.81
|
|
12.92
|
|
13.02
|
|
13.21
|
Common equity tier 1
risk-based capital (a)
|
10.50
|
|
10.63
|
|
10.71
|
|
10.78
|
|
10.94
|
Shareholders' equity
/ total assets
|
9.86
|
|
9.77
|
|
9.80
|
|
10.00
|
|
10.08
|
Net interest
margin
|
3.08
|
|
3.11
|
|
3.08
|
|
3.04
|
|
3.05
|
Efficiency ratio
(non-GAAP)
|
61.47
|
|
62.00
|
|
60.30
|
|
59.56
|
|
60.08
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
2,354,256
|
|
$
2,312,076
|
|
$
2,291,250
|
|
$
2,278,991
|
|
$
2,256,307
|
Book value per common
share
|
25.68
|
|
25.24
|
|
24.99
|
|
24.86
|
|
24.55
|
Tangible book value
per common share (non-GAAP)
|
19.41
|
|
18.95
|
|
18.69
|
|
18.54
|
|
18.23
|
Common stock closing
price
|
33.95
|
|
35.90
|
|
37.19
|
|
35.63
|
|
39.55
|
Dividends declared
per common share
|
0.25
|
|
0.23
|
|
0.23
|
|
0.23
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
91,677
|
|
91,617
|
|
91,677
|
|
91,663
|
|
91,919
|
Weighted-average
common shares outstanding - basic
|
91,244
|
|
91,328
|
|
91,419
|
|
91,458
|
|
90,713
|
Weighted-average
common shares outstanding - diluted
|
91,745
|
|
91,809
|
|
91,956
|
|
92,007
|
|
91,302
|
|
|
|
|
|
|
|
|
|
|
(a) The ratios
presented are projected for June 30, 2016 and actual for the
remaining periods.
|
(b) Certain
previously reported information has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
(In
thousands)
|
June 30,
2016 (a)
|
|
March 31,
2016 (a) (c)
|
|
June 30,
2015 (b) (c)
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
224,964
|
|
$
198,174
|
|
$
165,303
|
Interest-bearing
deposits
|
38,091
|
|
27,805
|
|
142,083
|
Investment
securities:
|
|
|
|
|
|
Available for
sale
|
2,921,950
|
|
3,080,469
|
|
2,837,158
|
Held to
maturity
|
3,920,974
|
|
4,012,289
|
|
4,064,022
|
Total
securities
|
6,842,924
|
|
7,092,758
|
|
6,901,180
|
Loans held for
sale
|
53,353
|
|
30,425
|
|
63,535
|
Loans and
Leases:
|
|
|
|
|
|
Commercial
|
5,195,825
|
|
4,975,332
|
|
4,567,345
|
Commercial real
estate
|
4,191,087
|
|
4,046,911
|
|
3,770,252
|
Residential
mortgages
|
4,156,665
|
|
4,109,243
|
|
3,833,489
|
Consumer
|
2,728,452
|
|
2,726,869
|
|
2,606,440
|
Total loans
and leases
|
16,272,029
|
|
15,858,355
|
|
14,777,526
|
Allowance for loan
and lease losses
|
(180,428)
|
|
(174,201)
|
|
(167,860)
|
Loans and
leases, net
|
16,091,601
|
|
15,684,154
|
|
14,609,666
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
185,104
|
|
188,347
|
|
180,290
|
Premises and
equipment, net
|
134,482
|
|
134,212
|
|
123,828
|
Goodwill and other
intangible assets, net
|
574,622
|
|
576,145
|
|
580,908
|
Cash surrender value
of life insurance policies
|
510,410
|
|
506,746
|
|
446,423
|
Deferred tax asset,
net
|
79,886
|
|
81,191
|
|
79,257
|
Accrued interest
receivable and other assets
|
385,029
|
|
412,134
|
|
301,666
|
Total
Assets
|
$
25,120,466
|
|
$
24,932,091
|
|
$
23,594,139
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$
3,958,484
|
|
$
3,625,605
|
|
$
3,547,356
|
Interest-bearing
checking
|
2,438,661
|
|
2,421,692
|
|
2,214,973
|
Health savings
accounts
|
4,155,760
|
|
4,084,190
|
|
3,665,019
|
Money
market
|
1,987,295
|
|
2,319,588
|
|
1,757,095
|
Savings
|
4,287,078
|
|
4,244,383
|
|
3,998,169
|
Certificates of
deposit
|
1,701,307
|
|
1,727,934
|
|
1,811,864
|
Brokered certificates
of deposit
|
299,883
|
|
301,131
|
|
299,790
|
Total
deposits
|
18,828,468
|
|
18,724,523
|
|
17,294,266
|
Securities sold under
agreements to repurchase and other borrowings
|
899,691
|
|
910,149
|
|
1,014,504
|
Federal Home Loan
Bank advances
|
2,463,057
|
|
2,363,131
|
|
2,509,285
|
Long-term
debt
|
225,387
|
|
225,323
|
|
225,133
|
Accrued expenses and
other liabilities
|
226,897
|
|
274,179
|
|
171,934
|
Total
liabilities
|
22,643,500
|
|
22,497,305
|
|
21,215,122
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
122,710
|
|
122,710
|
Common shareholders'
equity
|
2,354,256
|
|
2,312,076
|
|
2,256,307
|
Webster
Financial Corporation shareholders' equity
|
2,476,966
|
|
2,434,786
|
|
2,379,017
|
Total Liabilities
and Equity
|
$
25,120,466
|
|
$
24,932,091
|
|
$
23,594,139
|
|
|
|
|
|
|
(a) A policy
election was made effective in the first quarter 2016. As a result,
loans held for sale balances include loans originated for sale
which are accounted for under the fair value option of ASU
820.
|
(b) Amounts
revised for an immaterial correction for cash collateral relating
to derivatives, reclassified from cash and due from banks impacting
other assets and other liabilities.
|
(c) Certain
previously reported information has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In thousands,
except per share data)
|
2016
|
|
2015
(a)
|
|
2016
|
|
2015
(a)
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
152,171
|
|
$
135,694
|
|
$
301,979
|
|
$
266,417
|
Interest and
dividends on securities
|
49,967
|
|
50,844
|
|
102,221
|
|
102,523
|
Loans held for
sale
|
293
|
|
432
|
|
566
|
|
942
|
Total interest
income
|
202,431
|
|
186,970
|
|
404,766
|
|
369,882
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
12,374
|
|
11,533
|
|
24,673
|
|
23,075
|
Borrowings
|
13,152
|
|
11,926
|
|
27,036
|
|
23,532
|
Total interest
expense
|
25,526
|
|
23,459
|
|
51,709
|
|
46,607
|
Net interest
income
|
176,905
|
|
163,511
|
|
353,057
|
|
323,275
|
Provision for loan
and lease losses
|
14,000
|
|
12,750
|
|
29,600
|
|
22,500
|
Net interest
income after provision for loan and lease losses
|
162,905
|
|
150,761
|
|
323,457
|
|
300,775
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,894
|
|
33,933
|
|
69,819
|
|
66,218
|
Loan and lease
related fees
|
7,074
|
|
5,729
|
|
12,749
|
|
11,408
|
Wealth and investment
services
|
7,204
|
|
8,784
|
|
14,399
|
|
16,673
|
Mortgage banking
activities
|
2,945
|
|
2,517
|
|
5,574
|
|
4,078
|
Increase in cash
surrender value of life insurance policies
|
3,664
|
|
3,197
|
|
7,317
|
|
6,349
|
Gain on investment
securities, net
|
94
|
|
486
|
|
414
|
|
529
|
Other
income
|
9,200
|
|
4,599
|
|
17,326
|
|
11,551
|
|
65,075
|
|
59,245
|
|
127,598
|
|
116,806
|
Impairment loss on
securities recognized in earnings
|
—
|
|
—
|
|
(149)
|
|
—
|
Total non-interest
income
|
65,075
|
|
59,245
|
|
127,449
|
|
116,806
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
80,231
|
|
74,043
|
|
160,540
|
|
144,907
|
Occupancy
|
14,842
|
|
11,680
|
|
29,095
|
|
25,276
|
Technology and
equipment
|
19,376
|
|
20,315
|
|
39,314
|
|
39,560
|
Marketing
|
4,669
|
|
4,245
|
|
9,593
|
|
8,421
|
Professional and
outside services
|
3,754
|
|
2,875
|
|
6,565
|
|
5,328
|
Intangible assets
amortization
|
1,523
|
|
1,843
|
|
3,077
|
|
3,131
|
Loan workout
expenses
|
530
|
|
801
|
|
1,495
|
|
1,679
|
Deposit
insurance
|
6,633
|
|
5,492
|
|
13,419
|
|
11,733
|
Other
expenses
|
21,220
|
|
16,243
|
|
42,125
|
|
31,589
|
Total non-interest
expense
|
152,778
|
|
137,537
|
|
305,223
|
|
271,624
|
Income before income
taxes
|
75,202
|
|
72,469
|
|
145,683
|
|
145,957
|
Income tax
expense
|
24,599
|
|
20,426
|
|
48,033
|
|
44,410
|
Net
income
|
50,603
|
|
52,043
|
|
97,650
|
|
101,547
|
Preferred
stock dividends and other
|
(2,205)
|
|
(2,224)
|
|
(4,368)
|
|
(5,014)
|
Earnings
applicable to common shareholders
|
$
48,398
|
|
$
49,819
|
|
$
93,282
|
|
$
96,533
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - diluted
|
91,745
|
|
91,302
|
|
91,726
|
|
91,070
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.53
|
|
$
0.55
|
|
$
1.02
|
|
$
1.07
|
Diluted
|
0.53
|
|
0.55
|
|
1.02
|
|
1.06
|
|
|
|
|
|
|
|
|
(a) Certain
previously reported information has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Consolidated Statements of Income
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In thousands,
except per share data)
|
June 30,
2016
|
|
March 31,
2016 (a)
|
|
December 31,
2015 (a)
|
|
September 30,
2015 (a)
|
|
June 30,
2015 (a)
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
152,171
|
|
$
149,808
|
|
$
145,504
|
|
$
140,520
|
|
$
135,694
|
Interest and
dividends on securities
|
49,967
|
|
52,254
|
|
52,365
|
|
51,121
|
|
50,844
|
Loans held for
sale
|
293
|
|
273
|
|
291
|
|
357
|
|
432
|
Total interest
income
|
202,431
|
|
202,335
|
|
198,160
|
|
191,998
|
|
186,970
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
12,374
|
|
12,299
|
|
11,476
|
|
11,480
|
|
11,533
|
Borrowings
|
13,152
|
|
13,884
|
|
13,344
|
|
12,508
|
|
11,926
|
Total interest
expense
|
25,526
|
|
26,183
|
|
24,820
|
|
23,988
|
|
23,459
|
Net interest
income
|
176,905
|
|
176,152
|
|
173,340
|
|
168,010
|
|
163,511
|
Provision for loan
and lease losses
|
14,000
|
|
15,600
|
|
13,800
|
|
13,000
|
|
12,750
|
Net interest
income after provision for loan and lease losses
|
162,905
|
|
160,552
|
|
159,540
|
|
155,010
|
|
150,761
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,894
|
|
34,925
|
|
33,675
|
|
35,164
|
|
33,933
|
Loan and lease
related fees
|
7,074
|
|
5,675
|
|
5,881
|
|
8,305
|
|
5,729
|
Wealth and investment
services
|
7,204
|
|
7,195
|
|
8,052
|
|
7,761
|
|
8,784
|
Mortgage banking
activities
|
2,945
|
|
2,629
|
|
2,276
|
|
1,441
|
|
2,517
|
Increase in cash
surrender value of life insurance policies
|
3,664
|
|
3,653
|
|
3,383
|
|
3,288
|
|
3,197
|
Gain on investment
securities, net
|
94
|
|
320
|
|
80
|
|
—
|
|
486
|
Other
income
|
9,200
|
|
8,126
|
|
6,360
|
|
5,415
|
|
4,599
|
|
65,075
|
|
62,523
|
|
59,707
|
|
61,374
|
|
59,245
|
Impairment loss on
securities recognized in earnings
|
—
|
|
(149)
|
|
(28)
|
|
(82)
|
|
—
|
Total non-interest
income
|
65,075
|
|
62,374
|
|
59,679
|
|
61,292
|
|
59,245
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
80,231
|
|
80,309
|
|
79,232
|
|
73,378
|
|
74,043
|
Occupancy
|
14,842
|
|
14,253
|
|
11,573
|
|
11,987
|
|
11,680
|
Technology and
equipment
|
19,376
|
|
19,938
|
|
19,834
|
|
21,419
|
|
20,315
|
Marketing
|
4,669
|
|
4,924
|
|
3,533
|
|
4,099
|
|
4,245
|
Professional and
outside services
|
3,754
|
|
2,811
|
|
2,932
|
|
2,896
|
|
2,875
|
Intangible assets
amortization
|
1,523
|
|
1,554
|
|
1,588
|
|
1,621
|
|
1,843
|
Loan workout
expenses
|
530
|
|
965
|
|
775
|
|
719
|
|
801
|
Deposit
insurance
|
6,633
|
|
6,786
|
|
6,242
|
|
6,067
|
|
5,492
|
Other
expenses
|
21,220
|
|
20,905
|
|
18,071
|
|
17,751
|
|
16,243
|
Total non-interest
expense
|
152,778
|
|
152,445
|
|
143,780
|
|
139,937
|
|
137,537
|
Income before income
taxes
|
75,202
|
|
70,481
|
|
75,439
|
|
76,365
|
|
72,469
|
Income tax
expense
|
24,599
|
|
23,434
|
|
23,627
|
|
24,995
|
|
20,426
|
Net
income
|
50,603
|
|
47,047
|
|
51,812
|
|
51,370
|
|
52,043
|
Preferred
stock dividends and other
|
(2,205)
|
|
(2,126)
|
|
(2,166)
|
|
(2,194)
|
|
(2,224)
|
Earnings
applicable to common shareholders
|
$
48,398
|
|
$
44,921
|
|
$
49,646
|
|
$
49,176
|
|
$
49,819
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - diluted
|
91,745
|
|
91,809
|
|
91,956
|
|
92,007
|
|
91,302
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.53
|
|
$
0.49
|
|
$
0.54
|
|
$
0.54
|
|
$
0.55
|
Diluted
|
0.53
|
|
0.49
|
|
0.54
|
|
0.53
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
(a) Certain
previously reported information has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
2016
|
|
2015
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully
tax-
equivalent
yield/rate
|
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
16,079,348
|
|
$
152,937
|
|
3.79
%
|
|
$
14,508,701
|
|
$
136,223
|
|
3.74 %
|
Investment securities
(a)
|
6,904,166
|
|
50,986
|
|
2.95
|
|
6,854,413
|
|
51,483
|
|
3.02
|
Federal Home Loan and
Federal Reserve Bank stock
|
192,664
|
|
1,420
|
|
2.96
|
|
192,707
|
|
1,379
|
|
2.87
|
Interest-bearing
deposits
|
61,929
|
|
77
|
|
0.49
|
|
124,769
|
|
79
|
|
0.25
|
Loans held for
sale
|
37,104
|
|
293
|
|
3.15
|
|
50,382
|
|
432
|
|
3.43
|
Total
interest-earning assets
|
23,275,211
|
|
$
205,713
|
|
3.52
%
|
|
21,730,972
|
|
$
189,596
|
|
3.48 %
|
Non-interest-earning
assets (b)
|
1,728,222
|
|
|
|
|
|
1,618,067
|
|
|
|
|
Total
assets
|
$
25,003,433
|
|
|
|
|
|
$
23,349,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,728,684
|
|
$
—
|
|
—%
|
|
$
3,450,633
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
13,009,331
|
|
6,861
|
|
0.21
|
|
11,767,724
|
|
5,300
|
|
0.18
|
Certificates of
deposit
|
2,015,120
|
|
5,513
|
|
1.10
|
|
2,163,918
|
|
6,233
|
|
1.16
|
Total
deposits
|
18,753,135
|
|
12,374
|
|
0.27
|
|
17,382,275
|
|
11,533
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
872,189
|
|
3,379
|
|
1.53
|
|
1,111,385
|
|
4,186
|
|
1.49
|
Federal Home Loan
Bank advances
|
2,525,500
|
|
7,291
|
|
1.14
|
|
2,092,840
|
|
5,329
|
|
1.01
|
Long-term
debt
|
225,351
|
|
2,482
|
|
4.41
|
|
226,277
|
|
2,411
|
|
4.26
|
Total
borrowings
|
3,623,040
|
|
13,152
|
|
1.44
|
|
3,430,502
|
|
11,926
|
|
1.38
|
Total
interest-bearing liabilities
|
22,376,175
|
|
$
25,526
|
|
0.46
%
|
|
20,812,777
|
|
$
23,459
|
|
0.45 %
|
Non-interest-bearing
liabilities (b)
|
166,495
|
|
|
|
|
|
158,088
|
|
|
|
|
Total
liabilities
|
22,542,670
|
|
|
|
|
|
20,970,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
|
|
|
|
142,109
|
|
|
|
|
Common shareholders'
equity
|
2,338,053
|
|
|
|
|
|
2,236,065
|
|
|
|
|
Webster Financial
Corporation shareholders' equity (b)
|
2,460,763
|
|
|
|
|
|
2,378,174
|
|
|
|
|
Total
liabilities and equity
|
$
25,003,433
|
|
|
|
|
|
$
23,349,039
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
180,187
|
|
|
|
|
|
166,137
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(3,282)
|
|
|
|
|
|
(2,626)
|
|
|
Net
interest income
|
|
|
$
176,905
|
|
|
|
|
|
$
163,511
|
|
|
Net
interest margin
|
|
|
|
|
3.08
%
|
|
|
|
|
|
3.05 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Previously
reported 2015 average balance has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully
tax-
equivalent
yield/rate
|
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
15,939,123
|
|
$
303,473
|
|
3.79
%
|
|
$
14,253,012
|
|
$
267,477
|
|
3.75 %
|
Investment securities
(a)
|
6,899,787
|
|
103,998
|
|
3.01
|
|
6,775,633
|
|
103,909
|
|
3.08
|
Federal Home Loan and
Federal Reserve Bank stock
|
190,505
|
|
2,837
|
|
3.00
|
|
192,997
|
|
2,695
|
|
2.82
|
Interest-bearing
deposits
|
59,633
|
|
149
|
|
0.49
|
|
112,393
|
|
142
|
|
0.25
|
Loans held for
sale
|
31,863
|
|
566
|
|
3.55
|
|
45,551
|
|
942
|
|
4.14
|
Total
interest-earning assets
|
23,120,911
|
|
$
411,023
|
|
3.54
%
|
|
21,379,586
|
|
$
375,165
|
|
3.51 %
|
Non-interest-earning
assets (b)
|
1,776,231
|
|
|
|
|
|
1,619,923
|
|
|
|
|
Total
assets
|
$
24,897,142
|
|
|
|
|
|
$
22,999,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,697,306
|
|
$
—
|
|
—%
|
|
$
3,452,428
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
12,885,504
|
|
13,476
|
|
0.21
|
|
11,655,055
|
|
10,136
|
|
0.18
|
Certificates of
deposit
|
2,036,385
|
|
11,197
|
|
1.11
|
|
2,203,170
|
|
12,939
|
|
1.18
|
Total
deposits
|
18,619,195
|
|
24,673
|
|
0.27
|
|
17,310,653
|
|
23,075
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
960,593
|
|
7,552
|
|
1.56
|
|
1,154,962
|
|
8,573
|
|
1.48
|
Federal Home Loan
Bank advances
|
2,431,623
|
|
14,538
|
|
1.18
|
|
1,764,602
|
|
10,150
|
|
1.14
|
Long-term
debt
|
225,771
|
|
4,946
|
|
4.38
|
|
226,263
|
|
4,809
|
|
4.25
|
Total
borrowings
|
3,617,987
|
|
27,036
|
|
1.48
|
|
3,145,827
|
|
23,532
|
|
1.49
|
Total
interest-bearing liabilities
|
22,237,182
|
|
$
51,709
|
|
0.46
%
|
|
20,456,480
|
|
$
46,607
|
|
0.46 %
|
Non-interest-bearing
liabilities (b)
|
212,526
|
|
|
|
|
|
179,467
|
|
|
|
|
Total
liabilities
|
22,449,708
|
|
|
|
|
|
20,635,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
|
|
|
|
146,853
|
|
|
|
|
Common shareholders'
equity
|
2,324,724
|
|
|
|
|
|
2,216,709
|
|
|
|
|
Webster Financial
Corporation shareholders' equity (b)
|
2,447,434
|
|
|
|
|
|
2,363,562
|
|
|
|
|
Total
liabilities and equity
|
$
24,897,142
|
|
|
|
|
|
$
22,999,509
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
359,314
|
|
|
|
|
|
328,558
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(6,257)
|
|
|
|
|
|
(5,283)
|
|
|
Net
interest income
|
|
|
$
353,057
|
|
|
|
|
|
$
323,275
|
|
|
Net
interest margin
|
|
|
|
|
3.10
%
|
|
|
|
|
|
3.07 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Previously
reported 2015 average balance has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan and Lease Balances
(unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
Loan and Lease
Balances (actuals):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,798,436
|
|
$
3,607,176
|
|
$
3,562,784
|
|
$
3,423,775
|
|
$
3,310,863
|
Equipment
financing
|
618,343
|
|
596,572
|
|
600,526
|
|
552,850
|
|
545,441
|
Asset-based
lending
|
779,046
|
|
771,584
|
|
753,215
|
|
716,204
|
|
711,041
|
Commercial
real estate
|
4,191,087
|
|
4,046,911
|
|
3,991,649
|
|
3,857,155
|
|
3,770,252
|
Residential mortgages
|
4,156,665
|
|
4,109,243
|
|
4,061,001
|
|
4,015,839
|
|
3,833,489
|
Consumer
|
2,655,504
|
|
2,649,644
|
|
2,622,998
|
|
2,568,009
|
|
2,520,970
|
Total
continuing portfolio
|
16,199,081
|
|
15,781,130
|
|
15,592,173
|
|
15,133,832
|
|
14,692,056
|
Allowance for
loan and lease losses
|
(174,009)
|
|
(167,769)
|
|
(167,626)
|
|
(165,341)
|
|
(159,501)
|
Total
continuing portfolio, net
|
16,025,072
|
|
15,613,361
|
|
15,424,547
|
|
14,968,491
|
|
14,532,555
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
72,948
|
|
77,225
|
|
79,562
|
|
82,693
|
|
85,470
|
Allowance for
loan and lease losses
|
(6,419)
|
|
(6,432)
|
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
Total
liquidating portfolio, net
|
66,529
|
|
70,793
|
|
72,198
|
|
75,042
|
|
77,111
|
Total Loan and
Lease Balances (actuals)
|
16,272,029
|
|
15,858,355
|
|
15,671,735
|
|
15,216,525
|
|
14,777,526
|
Allowance for loan
and lease losses
|
(180,428)
|
|
(174,201)
|
|
(174,990)
|
|
(172,992)
|
|
(167,860)
|
Loans and Leases,
net
|
$
16,091,601
|
|
$
15,684,154
|
|
$
15,496,745
|
|
$
15,043,533
|
|
$
14,609,666
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease
Balances (average):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,726,394
|
|
$
3,605,483
|
|
$
3,482,862
|
|
$
3,363,074
|
|
$
3,247,527
|
Equipment
financing
|
607,259
|
|
600,123
|
|
570,686
|
|
549,310
|
|
542,112
|
Asset-based lending
|
765,605
|
|
750,328
|
|
721,662
|
|
712,811
|
|
709,985
|
Commercial real estate
|
4,099,855
|
|
4,019,260
|
|
3,955,012
|
|
3,804,904
|
|
3,705,895
|
Residential
mortgages
|
4,137,879
|
|
4,101,396
|
|
4,039,341
|
|
3,950,654
|
|
3,711,096
|
Consumer
|
2,667,028
|
|
2,643,792
|
|
2,601,955
|
|
2,544,789
|
|
2,504,668
|
Total
continuing portfolio
|
16,004,020
|
|
15,720,382
|
|
15,371,518
|
|
14,925,542
|
|
14,421,283
|
Allowance for
loan and lease losses
|
(174,416)
|
|
(173,479)
|
|
(170,724)
|
|
(163,421)
|
|
(156,698)
|
Total
continuing portfolio, net
|
15,829,604
|
|
15,546,903
|
|
15,200,794
|
|
14,762,121
|
|
14,264,585
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
75,328
|
|
78,515
|
|
81,058
|
|
84,449
|
|
87,418
|
Allowance for
loan and lease losses
|
(6,419)
|
|
(6,432)
|
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
Total
liquidating portfolio, net
|
68,909
|
|
72,083
|
|
73,694
|
|
76,798
|
|
79,059
|
Total Loan and
Lease Balances (average)
|
16,079,348
|
|
15,798,897
|
|
15,452,576
|
|
15,009,991
|
|
14,508,701
|
Allowance for loan
and lease losses
|
(180,835)
|
|
(179,911)
|
|
(178,088)
|
|
(171,072)
|
|
(165,057)
|
Loans and Leases,
net
|
$
15,898,513
|
|
$
15,618,986
|
|
$
15,274,488
|
|
$
14,838,919
|
|
$
14,343,644
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
Nonperforming
loans and leases:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
28,700
|
|
$
32,517
|
|
$
27,086
|
|
$
40,235
|
|
$
43,081
|
Equipment
financing
|
480
|
|
868
|
|
706
|
|
403
|
|
301
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
13,923
|
|
15,381
|
|
20,211
|
|
23,828
|
|
26,893
|
Residential
mortgages
|
52,437
|
|
53,700
|
|
54,101
|
|
57,603
|
|
58,663
|
Consumer
|
34,016
|
|
34,581
|
|
33,972
|
|
32,969
|
|
34,236
|
Nonperforming
loans and leases - continuing portfolio
|
129,556
|
|
137,047
|
|
136,076
|
|
155,038
|
|
163,174
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
3,356
|
|
3,675
|
|
3,865
|
|
3,965
|
|
4,682
|
Total
nonperforming loans and leases
|
$
132,912
|
|
$
140,722
|
|
$
139,941
|
|
$
159,003
|
|
$
167,856
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Repossessed
equipment
|
220
|
|
342
|
|
—
|
|
—
|
|
—
|
Residential
|
3,395
|
|
3,329
|
|
3,788
|
|
4,078
|
|
3,930
|
Consumer
|
820
|
|
1,394
|
|
1,241
|
|
1,306
|
|
1,039
|
Total other real
estate owned and repossessed assets
|
$
4,435
|
|
$
5,065
|
|
$
5,029
|
|
$
5,384
|
|
$
4,969
|
Total
nonperforming assets
|
$
137,347
|
|
$
145,787
|
|
$
144,970
|
|
$
164,387
|
|
$
172,825
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans and Leases
(unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
2,050
|
|
$
7,265
|
|
$
4,052
|
|
$
4,415
|
|
$
1,778
|
Equipment
financing
|
404
|
|
594
|
|
602
|
|
739
|
|
517
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
3,017
|
|
20,730
|
|
2,250
|
|
1,939
|
|
1,547
|
Residential
mortgages
|
9,632
|
|
10,456
|
|
15,032
|
|
15,222
|
|
12,315
|
Consumer
|
12,541
|
|
12,414
|
|
14,225
|
|
15,850
|
|
13,053
|
Past due 30-89
days - continuing portfolio
|
27,644
|
|
51,459
|
|
36,161
|
|
38,165
|
|
29,210
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
1,304
|
|
819
|
|
1,036
|
|
953
|
|
1,299
|
Total past due
30-89 days
|
28,948
|
|
52,278
|
|
37,197
|
|
39,118
|
|
30,509
|
Past due 90 days
or more and accruing
|
5,738
|
|
3,391
|
|
2,051
|
|
2,228
|
|
1,923
|
Total past due
loans and leases
|
$
34,686
|
|
$
55,669
|
|
$
39,248
|
|
$
41,346
|
|
$
32,432
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan and Lease Losses
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
(Dollars in
thousands)
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
Beginning
balance
|
$
174,201
|
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
Provision
|
14,000
|
|
15,600
|
|
13,800
|
|
13,000
|
|
12,750
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
3,525
|
|
11,208
|
|
6,522
|
|
2,204
|
|
2,541
|
Equipment
financing
|
70
|
|
151
|
|
244
|
|
—
|
|
15
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
995
|
|
1,526
|
|
1,988
|
|
1,346
|
|
1,091
|
Residential
mortgages
|
638
|
|
1,594
|
|
1,504
|
|
1,588
|
|
1,461
|
Consumer
|
4,193
|
|
4,101
|
|
4,379
|
|
3,991
|
|
3,531
|
Charge-offs
continuing portfolio
|
9,421
|
|
18,580
|
|
14,637
|
|
9,129
|
|
8,639
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Consumer
|
363
|
|
320
|
|
320
|
|
840
|
|
322
|
Charge-offs
liquidating portfolio
|
363
|
|
320
|
|
320
|
|
840
|
|
322
|
Total
charge-offs
|
9,784
|
|
18,900
|
|
14,957
|
|
9,969
|
|
8,961
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
315
|
|
455
|
|
441
|
|
558
|
|
527
|
Equipment
financing
|
156
|
|
45
|
|
1,083
|
|
32
|
|
102
|
Asset-based
lending
|
1
|
|
2
|
|
38
|
|
157
|
|
2
|
Commercial real
estate
|
212
|
|
74
|
|
325
|
|
69
|
|
52
|
Residential
mortgages
|
133
|
|
720
|
|
115
|
|
280
|
|
365
|
Consumer
|
845
|
|
905
|
|
948
|
|
852
|
|
849
|
Recoveries continuing
portfolio
|
1,662
|
|
2,201
|
|
2,950
|
|
1,948
|
|
1,897
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
1
|
|
1
|
|
1
|
|
4
|
Consumer
|
349
|
|
309
|
|
204
|
|
152
|
|
200
|
Recoveries
liquidating portfolio
|
349
|
|
310
|
|
205
|
|
153
|
|
204
|
Total
recoveries
|
2,011
|
|
2,511
|
|
3,155
|
|
2,101
|
|
2,101
|
Total net
charge-offs
|
7,773
|
|
16,389
|
|
11,802
|
|
7,868
|
|
6,860
|
Ending
balance
|
$
180,428
|
|
$
174,201
|
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates
its business based on certain 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 shareholders' equity
less average preferred stock and average goodwill and intangible
assets. The tangible equity ratio represents shareholders' equity
less goodwill and intangible assets divided by total assets less
goodwill and intangible assets. The tangible common equity ratio
represents shareholders' equity less preferred stock and goodwill
and intangible assets divided by total assets less goodwill and
intangible assets. Tangible book value per common share represents
shareholders' equity less preferred stock and goodwill and
intangible assets divided by common shares outstanding at the end
of the period.
|
|
|
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. Core deposits express total deposits less time deposits.
Accordingly, these are also non-GAAP financial measures.
|
|
|
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
|
(In thousands,
except per share data)
|
June 30,
2016
|
|
March 31,
2016 (a)
|
|
December 31,
2015 (a)
|
|
September 30,
2015(a)
|
|
June 30,
2015 (a)
|
Return on average
tangible common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
50,603
|
|
$
47,047
|
|
51,812
|
|
$
51,370
|
|
$
52,043
|
Less: Preferred stock
dividends (GAAP)
|
2,024
|
|
2,024
|
|
2,024
|
|
2,024
|
|
2,024
|
Add: Intangible
assets amortization, tax-affected at 35% (GAAP)
|
990
|
|
1,010
|
|
1,032
|
|
1,054
|
|
1,198
|
Income adjusted for
preferred stock dividends and intangible assets amortization
(non-GAAP)
|
$
49,569
|
|
$
46,033
|
|
$
50,820
|
|
$
50,400
|
|
$
51,217
|
Income adjusted for
preferred stock dividends and intangible assets amortization,
annualized basis (non-GAAP)
|
$
198,276
|
|
$
184,132
|
|
$
203,280
|
|
$
201,600
|
|
$
204,868
|
Average shareholders'
equity (non-GAAP)
|
$
2,460,763
|
|
$
2,432,554
|
|
$
2,420,592
|
|
$
2,402,826
|
|
$
2,378,174
|
Less: Average
preferred stock (non-GAAP)
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
Average goodwill and other intangible assets (non-GAAP)
|
575,483
|
|
577,029
|
|
578,598
|
|
580,218
|
|
581,911
|
Average tangible
common shareholders' equity (non-GAAP)
|
$
1,762,570
|
|
$
1,732,815
|
|
$
1,719,284
|
|
$
1,699,898
|
|
$
1,654,154
|
Return on average
tangible common shareholders' equity (non-GAAP)
|
11.25
%
|
|
10.63 %
|
|
11.82 %
|
|
11.86 %
|
|
12.39 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
$
152,778
|
|
$
152,445
|
|
$
143,780
|
|
$
139,937
|
|
$
137,537
|
Less: Foreclosed
property activity (GAAP)
|
(123)
|
|
(158)
|
|
1
|
|
202
|
|
(391)
|
Intangible assets amortization (GAAP)
|
1,523
|
|
1,554
|
|
1,588
|
|
1,621
|
|
1,843
|
Other expenses (non-GAAP)
|
260
|
|
1,217
|
|
(108)
|
|
(209)
|
|
817
|
Non-interest expense
(non-GAAP)
|
$
151,118
|
|
$
149,832
|
|
$
142,299
|
|
$
138,323
|
|
$
135,268
|
Net interest income
(GAAP)
|
$
176,905
|
|
$
176,152
|
|
$
173,340
|
|
$
168,010
|
|
$
163,511
|
Add: Tax-equivalent
adjustment (non-GAAP)
|
3,282
|
|
2,975
|
|
2,738
|
|
2,596
|
|
2,626
|
Non-interest income (GAAP)
|
65,075
|
|
62,374
|
|
59,679
|
|
61,292
|
|
59,245
|
Less: Gain on
investment securities, net (GAAP)
|
94
|
|
320
|
|
80
|
|
—
|
|
486
|
Other (non-GAAP)
|
(655)
|
|
(481)
|
|
(303)
|
|
(324)
|
|
(242)
|
Income
(non-GAAP)
|
$
245,823
|
|
$
241,662
|
|
$
235,980
|
|
$
232,222
|
|
$
225,138
|
Efficiency ratio
(non-GAAP)
|
61.47
%
|
|
62.00 %
|
|
60.30 %
|
|
59.56 %
|
|
60.08 %
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
$
2,476,966
|
|
$
2,434,786
|
|
$
2,413,960
|
|
$
2,401,701
|
|
$
2,379,017
|
Less: Goodwill and
other intangible assets (GAAP)
|
574,622
|
|
576,145
|
|
577,699
|
|
579,287
|
|
580,908
|
Tangible
shareholders' equity (non-GAAP)
|
$
1,902,344
|
|
$
1,858,641
|
|
$
1,836,261
|
|
$
1,822,414
|
|
$
1,798,109
|
Total assets
(GAAP)
|
$
25,120,466
|
|
$
24,932,091
|
|
$
24,641,118
|
|
$
24,007,735
|
|
$
23,594,139
|
Less: Goodwill and
other intangible assets (GAAP)
|
574,622
|
|
576,145
|
|
577,699
|
|
579,287
|
|
580,908
|
Tangible assets
(non-GAAP)
|
$
24,545,844
|
|
$
24,355,946
|
|
$
24,063,419
|
|
$
23,428,448
|
|
$
23,013,231
|
Tangible equity
(non-GAAP)
|
7.75
%
|
|
7.63 %
|
|
7.63 %
|
|
7.78 %
|
|
7.81 %
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity:
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity (non-GAAP)
|
$
1,902,344
|
|
$
1,858,641
|
|
$
1,836,261
|
|
$
1,822,414
|
|
$
1,798,109
|
Less: Preferred stock
(GAAP)
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
Tangible common
shareholders' equity (non-GAAP)
|
$
1,779,634
|
|
$
1,735,931
|
|
$
1,713,551
|
|
$
1,699,704
|
|
$
1,675,399
|
Tangible assets
(non-GAAP)
|
$
24,545,844
|
|
$
24,355,946
|
|
$
24,063,419
|
|
$
23,428,448
|
|
$
23,013,231
|
Tangible common
equity (non-GAAP)
|
7.25
%
|
|
7.13 %
|
|
7.12 %
|
|
7.25 %
|
|
7.28 %
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share:
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity (non-GAAP)
|
$
1,779,634
|
|
$
1,735,931
|
|
$
1,713,551
|
|
$
1,699,704
|
|
$
1,675,399
|
Common shares
outstanding
|
91,677
|
|
91,617
|
|
91,677
|
|
91,663
|
|
91,919
|
Tangible book
value per common share (non-GAAP)
|
$
19.41
|
|
$
18.95
|
|
$
18.69
|
|
$
18.54
|
|
$
18.23
|
|
|
|
|
|
|
|
|
|
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
18,828,468
|
|
$
18,724,523
|
|
$
17,952,778
|
|
$
17,582,230
|
|
$
17,294,266
|
Less: Certificates of
deposit
|
1,701,307
|
|
1,727,934
|
|
1,762,847
|
|
1,762,046
|
|
1,811,864
|
Brokered certificates of deposit
|
299,883
|
|
301,131
|
|
323,307
|
|
299,694
|
|
299,790
|
Core deposits
(non-GAAP)
|
$
16,827,278
|
|
$
16,695,458
|
|
$
15,866,624
|
|
$
15,520,490
|
|
$
15,182,612
|
|
|
|
|
|
|
|
|
|
|
(a) Certain
previously reported information has been modified to reflect
immaterial corrections to HSA Bank results.
|
WEBSTER FINANCIAL
CORPORATION
Reconciliations to Previously Reported Information for
Immaterial Corrections to HSA Bank Results
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(In
thousands)
|
March 31,
2016 (a)
|
|
December 31,
2015 (b)
|
|
September 30,
2015 (b)
|
|
June 30,
2015 (b)
|
|
March 31,
2015 (b)
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income, as reported
|
$
64,024
|
|
$
60,349
|
|
$
61,455
|
|
$
59,851
|
|
$
57,890
|
Deposit service fees
adjustment
|
(1,457)
|
|
(556)
|
|
(65)
|
|
(560)
|
|
(340)
|
Other income
adjustment
|
(193)
|
|
(114)
|
|
(98)
|
|
(46)
|
|
11
|
Total non-interest
income, as revised
|
$
62,374
|
|
$
59,679
|
|
$
61,292
|
|
$
59,245
|
|
$
57,561
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense, as reported
|
$
151,742
|
|
$
143,164
|
|
$
139,854
|
|
$
137,446
|
|
$
134,090
|
Technology and
equipment adjustment
|
703
|
|
616
|
|
83
|
|
91
|
|
(3)
|
Total non-interest
expense, as revised
|
$
152,445
|
|
$
143,780
|
|
$
139,937
|
|
$
137,537
|
|
$
134,087
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
$
48,617
|
|
$
52,579
|
|
$
51,536
|
|
$
52,503
|
|
$
49,722
|
Change in
non-interest income
|
(1,650)
|
|
(670)
|
|
(163)
|
|
(606)
|
|
(329)
|
Change in
non-interest expense
|
(703)
|
|
(616)
|
|
(83)
|
|
(91)
|
|
3
|
Adjustment to
income tax expense
|
783
|
|
519
|
|
80
|
|
237
|
|
108
|
Net income, as
revised
|
$
47,047
|
|
$
51,812
|
|
$
51,370
|
|
$
52,043
|
|
$
49,504
|
|
|
|
|
|
|
|
|
|
|
(a) For
the three months ended March 31, 2016 impact was a $1.6
million reduction to net income.
|
|
|
|
|
|
|
|
|
|
(b) Full year 2015
impact was a $1.6 million reduction to net income.
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2016-second-quarter-earnings-300301168.html
SOURCE Webster Financial Corporation