WATERBURY, Conn., April 16, 2015 /PRNewswire/ -- Webster
Financial Corporation (NYSE: WBS), the holding company for
Webster Bank, N.A., today announced
net income available to common shareholders of $47.1 million, or $0.52 per diluted share, for the quarter ended
March 31, 2015 compared to
$47.8 million, or $0.53 per diluted share, for the quarter ended
March 31, 2014.
"Webster's solid first quarter results mark our 22nd consecutive
quarter of year-over-year revenue growth, a clear reflection of our
bankers' success in serving our customers and communities," said
James C. Smith, chairman and chief
executive officer. "Commercial Banking once again recorded
double-digit loan growth, while HSA Bank opened a record number of
new health savings accounts, as consumers increasingly reap the
rewards of taking ownership for their health care costs."
Highlights for the first quarter of 2015 compared to the
first quarter of 2014:
- Excluding security gains, earnings per diluted share of
$0.52 compared to $0.50 a year ago.
- Growth in commercial and commercial real estate loans of
$993.4 million, or 14.0 percent.
Overall loan growth of $1.3 billion,
or 9.8 percent.
- Successful closing of acquired HSA business resulted in the
addition of $1.4 billion in low-cost,
long duration health savings account deposits (HSAs), reinforcing
HSA Bank's position as a market leader in this fast growing
segment.
- Overall deposit growth of $2.5
billion, or 16.7 percent, primarily reflecting the HSA
acquisition.
- Record core revenue of $217.6
million increased 8.3 percent, while core expenses increased
by 7.1 percent resulting in core pre-provision net revenue of
$84.7 million, or a 10.3 percent
improvement.
- Efficiency ratio of 59.76 percent, an improvement of 51 basis
points. Positive operating leverage of 1.2 percent.
- Annualized return on average tangible common shareholders'
equity of 11.82 percent.
"We've now completed eight consecutive quarters with the
efficiency ratio at or below 60 percent," said Glenn MacInnes, executive vice president and
chief financial officer. "In addition, the annualized net
charge-off ratio has been 25 basis points or less for five
consecutive quarters as we maintain credit discipline in a
competitive market."
Quarterly net interest income compared to the first quarter
of 2014:
- Net interest income was $159.8
million, compared to $155.3
million.
- Net interest margin was 3.10 percent compared to 3.26 percent.
The yield on interest-earning assets declined by 18 basis points,
while the cost of funds declined by 3 basis points.
- Average interest-earning assets totaled $21.0 billion and grew by $1.6 billion, or 8.0 percent.
- Average loans grew by $1.1
billion, or 8.9 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$9.75 million in the first quarter of
2015 compared to $9.5 million in the
fourth quarter of 2014 and $9.0
million in the first quarter of 2014.
- Net charge-offs were $7.0 million
compared to $6.7 million in the prior
quarter and $8.0 million a year ago.
The ratio of net charge-offs to average loans on an annualized
basis was 0.20 percent compared to 0.20 percent in the prior
quarter and 0.25 percent a year ago.
- The allowance for loan losses represented 1.14 percent of total
loans at March 31, 2015 compared to
1.15 percent at December 31, 2014 and
1.18 percent at March 31, 2014. The
allowance for loan losses represented 106 percent of nonperforming
loans at March 31 compared to 123
percent at December 31 and 106
percent a year ago.
Quarterly non-interest income compared to the first quarter
of 2014:
- Total non-interest income was $57.9
million compared to $49.8
million, an increase of $8.1
million. Excluding securities gains and other-than-temporary
impairment charges, a $12.3 million
year-over-year increase in core non-interest income reflects
increases of $7.9 million in deposit
service fees of which $6.7 million
resulted from the HSA acquisition, $1.2
million in loan related fees, $0.8
million in mortgage banking activities, and $3.4 million in other income, offset by a
$0.9 million reduction in wealth and
investment services.
Quarterly non-interest expense compared to the first quarter
of 2014:
- Total non-interest expense was $134.1
million compared to $124.5
million, an increase of $9.6
million. Included in non-interest expense are $0.5 million of net one-time costs, which
consisted primarily of costs related to the HSA acquisition. There
were $0.2 million of net one-time
costs in the year-ago quarter.
- Non-interest expense, excluding one-time costs, increased
$9.4 million. This increase is
attributable to an increase of $4.5
million in compensation and benefits primarily related to
staff additions and an increase of $4.2
million in technology and equipment expense at HSA Bank
primarily from the acquisition.
- Foreclosed and repossessed asset expenses were $0.2 million compared to $0.5 million, while net losses on foreclosed and
repossessed assets were $0.5 million
compared to net gains of $0.3 million
a year ago.
Quarterly income taxes compared to the first quarter of
2014:
- The Company recorded $24.1
million of income tax expense compared to $21.2 million, an increase of $2.9 million. The effective tax rate was 32.6
percent compared to 29.6 percent. The year ago quarter reflected a
$2.0 million net tax benefit compared
to a net benefit of $0.5 million in
the current quarter.
Investment securities:
- Total investment securities were $6.9
billion at March 31, 2015
compared to $6.7 billion at
December 31, 2014 and $6.5 billion a year ago. The carrying value of
the available-for-sale portfolio included $36.9 million of net unrealized gains compared to
$25.9 million at December 31 and $8.8
million a year ago, while the carrying value of the
held-to-maturity portfolio does not reflect $99.8 million of net unrealized gains compared to
$75.8 million at December 31 and $30.2
million a year ago.
Loans:
- Total loans were $14.3 billion at
March 31, 2015 compared to
$13.9 billion at December 31, 2014 and $13.0 billion a year ago. Compared to
December 31, commercial, commercial
real estate, residential mortgage, and consumer loans increased by
$156.4 million, $108.6 million, $85.1
million, and $20.0 million,
respectively.
- Compared to a year ago, commercial real estate, commercial,
residential mortgage, and consumer loans increased by $519.5 million, $473.9
million, $237.7 million, and
$44.4 million, respectively.
- Loan originations for portfolio in the first quarter were
$1.062 billion compared to
$1.378 billion in the fourth quarter
and $879 million a year ago. In
addition, $87 million of residential
loans were originated for sale in the quarter compared to
$87 million in the prior quarter and
$59 million a year ago.
Asset quality:
- Past due loans were $45.1 million
at March 31, 2015 compared to
$42.3 million at December 31, 2014 and $48.5 million a year ago. Compared to
December 31, past due consumer,
commercial non-mortgage, commercial real estate, liquidating
consumer, and equipment financing loans increased $2.6 million, $1.9
million, $1.2 million,
$0.2 million, and $0.1 million, respectively, while past due
residential mortgage loans decreased $3.2
million. Loans past due 90 days and still accruing increased
$22 thousand. Compared to a year ago,
past due residential mortgage, commercial non-mortgage, and
liquidating consumer loans decreased $5.0
million, $3.9 million, and
$0.1 million, respectively, while
past due consumer, commercial real estate, and equipment financing
loans increased $3.9 million,
$1.3 million, and $0.1 million, respectively. Loans past due 90
days and still accruing increased $0.7
million.
- Past due loans represented 0.32 percent of total loans at
quarter end, 0.30 percent at December
31, and 0.37 percent a year ago. Past due loans for the
continuing portfolio were $43.3
million at quarter end compared to $40.7 million at December
31 and $46.2 million a year
ago. Past due loans for the liquidating portfolio were $1.8 million at March
31 compared to $1.7 million at
December 31 and $2.3 million a year ago.
- Total nonperforming loans increased to $152.2 million, or 1.07 percent of total loans,
at quarter end compared to $129.9
million, or 0.93 percent, at December
31, and $144.6 million, or
1.11 percent, a year ago. Total paying nonperforming loans at
March 31 were $53.8 million compared to $30.5 million at December
31 and $48.8 million a year
ago.
Deposits and borrowings:
- Total deposits were $17.5 billion
at March 31, 2015 compared to
$15.7 billion at December 31, 2014 and $15.0 billion a year ago. Compared to
December 31, increases of
$1.7 billion in health savings
accounts, $205.8 million in money
market, $112.3 million in
interest-bearing checking, and $85.9
million in savings deposits, were offset by declines of
$148.6 million in demand deposits,
$65.6 million in certificates of
deposit, and $235 thousand in
brokered certificates of deposit. Compared to a year ago, increases
of $1.8 billion in health savings
accounts, $421.7 million in demand
deposits, $309.3 million in
interest-bearing checking, $74.1
million in brokered certificates of deposit, and
$58.5 million in savings deposits,
were offset by declines of $148.6
million in certificates of deposit and $18.7 million in money market deposits.
- Core to total deposits were 87.4 percent at quarter end, 85.5
percent at December 31, and 84.8
percent a year ago. Loans to deposits were 81.3 percent compared to
88.8 percent at December 31 and 86.4
percent a year ago.
- Total borrowings were $2.9
billion at March 31 compared
to $4.3 billion at December 31 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 11.82
percent and 8.57 percent, respectively, for the first quarter of
2015 compared to 12.51 percent and 9.16 percent, respectively, in
the first quarter of 2014.
- The tangible equity and tangible common equity ratios were 7.87
percent and 7.20 percent, respectively, at March 31, 2015 compared to 8.26 percent and 7.53
percent, respectively, at March 31,
2014. The Tier 1 common equity to risk-weighted assets ratio
was 10.93 percent at March 31
compared to 11.45 percent a year ago.
- Book value and tangible book value per common share were
$24.29 and $17.87, respectively, at March 31, 2015 compared to $23.13 and $17.22,
respectively, at March 31, 2014.
***
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $23.1 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 164 banking
centers, 313 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 first quarter earnings
announcement will be held today, Thursday,
April 16, 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; (11) the ability to
increase market share and control expenses; (12) changes in the
competitive environment among banks, financial holding companies,
and other financial service 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 those under the Dodd-Frank Wall
Street Reform and Consumer Protection Act and the Basel III update
to the Basel Accords that is under development; (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; and (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 heading "Risk Factors." 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)
|
March 31,
2015
|
|
December 31,
2014(b)
|
|
September 30,
2014(b)
|
|
June 30,
2014(b)
|
|
March 31,
2014(b)
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
49,722
|
|
$
51,006
|
|
$
50,457
|
|
$ 47,834
|
|
$ 50,429
|
Net income available
to common shareholders
|
47,083
|
|
48,367
|
|
47,818
|
|
45,195
|
|
47,790
|
Net income per
diluted common share
|
0.52
|
|
0.53
|
|
0.53
|
|
0.50
|
|
0.53
|
Return on average
assets
|
0.88%
|
|
0.93%
|
|
0.94%
|
|
0.90%
|
|
0.96%
|
Return on average
tangible common shareholders' equity
|
11.82
|
|
11.74
|
|
11.86
|
|
11.51
|
|
12.51
|
Return on average
common shareholders' equity
|
8.57
|
|
8.84
|
|
8.87
|
|
8.53
|
|
9.16
|
Non-interest income
as a percentage of total revenue
|
26.60
|
|
25.08
|
|
24.44
|
|
23.48
|
|
24.29
|
Efficiency
ratio
|
59.76
|
|
58.59
|
|
58.91
|
|
59.21
|
|
60.27
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
161,970
|
|
$ 159,264
|
|
$
156,482
|
|
$ 154,868
|
|
$ 153,600
|
Nonperforming
assets
|
157,546
|
|
136,397
|
|
144,314
|
|
150,490
|
|
152,382
|
Allowance for loan
losses / total loans
|
1.14%
|
|
1.15%
|
|
1.16%
|
|
1.17%
|
|
1.18%
|
Net charge-offs /
average loans (annualized)
|
0.20
|
|
0.20
|
|
0.24
|
|
0.24
|
|
0.25
|
Nonperforming loans /
total loans
|
1.07
|
|
0.93
|
|
1.03
|
|
1.08
|
|
1.11
|
Nonperforming assets
/ total loans plus OREO
|
1.10
|
|
0.98
|
|
1.07
|
|
1.13
|
|
1.17
|
Allowance for loan
losses / nonperforming loans
|
106.39
|
|
122.62
|
|
112.51
|
|
107.73
|
|
106.22
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible equity
ratio
|
7.87%
|
|
8.14%
|
|
8.35%
|
|
8.34%
|
|
8.26%
|
Tangible common
equity ratio
|
7.20
|
|
7.45
|
|
7.64
|
|
7.62
|
|
7.53
|
Tier 1 risk-based
capital ratio (a)
|
12.04
|
|
12.95
|
|
13.06
|
|
12.97
|
|
13.07
|
Total risk-based
capital(a)
|
13.47
|
|
14.06
|
|
14.17
|
|
14.09
|
|
14.20
|
Tier 1 common equity
/ risk-weighted assets (a)
|
10.93
|
|
11.43
|
|
11.50
|
|
11.40
|
|
11.45
|
Shareholders' equity
/ total assets
|
10.19
|
|
10.31
|
|
10.59
|
|
10.61
|
|
10.58
|
Net interest
margin
|
3.10
|
|
3.17
|
|
3.17
|
|
3.19
|
|
3.26
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$ 2,203,926
|
|
$ 2,171,166
|
|
$ 2,159,344
|
|
$ 2,132,973
|
|
$ 2,088,146
|
Book value per common
share
|
24.29
|
|
23.99
|
|
23.93
|
|
23.64
|
|
23.13
|
Tangible book value
per common share
|
17.87
|
|
18.10
|
|
18.02
|
|
17.72
|
|
17.22
|
Common stock closing
price
|
37.05
|
|
32.53
|
|
29.14
|
|
31.54
|
|
31.06
|
Dividends declared
per common share
|
0.20
|
|
0.20
|
|
0.20
|
|
0.20
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
90,715
|
|
90,512
|
|
90,248
|
|
90,246
|
|
90,269
|
Basic shares
(weighted average)
|
90,251
|
|
90,045
|
|
89,888
|
|
89,776
|
|
89,880
|
Diluted shares
(weighted average)
|
90,841
|
|
90,741
|
|
90,614
|
|
90,528
|
|
90,658
|
|
|
|
|
|
(a) The
ratios presented are projected for March 31, 2015 and actual for
the remaining periods presented.
|
|
|
|
|
|
(b) Certain
previously reported information reflects (1) the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects," and (2) the
reclassification of residential loans from nonperforming to accrual
past due 90 days or more as their principal and accrued interest
are well secured due to government guarantees.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
(In
thousands)
|
March 31,
2015
|
|
December 31,
2014(a)
|
|
March 31,
2014(a)
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
233,970
|
|
$
261,544
|
|
$
251,886
|
Interest-bearing
deposits
|
119,297
|
|
132,695
|
|
29,893
|
Investment
securities:
|
|
|
|
|
|
Available for sale,
at fair value
|
2,968,109
|
|
2,793,873
|
|
3,008,856
|
Held to
maturity
|
3,923,189
|
|
3,872,955
|
|
3,448,195
|
Total
securities
|
6,891,298
|
|
6,666,828
|
|
6,457,051
|
Loans held for
sale
|
45,866
|
|
67,952
|
|
14,631
|
Loans:
|
|
|
|
|
|
Commercial
|
4,443,446
|
|
4,287,021
|
|
3,969,508
|
Commercial real
estate
|
3,663,071
|
|
3,554,428
|
|
3,143,612
|
Residential
mortgages
|
3,594,272
|
|
3,509,175
|
|
3,356,539
|
Consumer
|
2,569,437
|
|
2,549,401
|
|
2,525,083
|
Total
loans
|
14,270,226
|
|
13,900,025
|
|
12,994,742
|
Allowance for loan
losses
|
(161,970)
|
|
(159,264)
|
|
(153,600)
|
Loans, net
|
14,108,256
|
|
13,740,761
|
|
12,841,142
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
193,290
|
|
193,290
|
|
166,133
|
Premises and
equipment, net
|
123,548
|
|
121,933
|
|
121,473
|
Goodwill and other
intangible assets, net
|
582,751
|
|
532,553
|
|
534,070
|
Cash surrender value
of life insurance policies
|
443,225
|
|
440,073
|
|
433,793
|
Deferred tax asset,
net
|
61,136
|
|
73,873
|
|
55,107
|
Accrued interest
receivable and other assets
|
304,051
|
|
301,670
|
|
270,734
|
Total
Assets
|
$
23,106,688
|
|
$
22,533,172
|
|
$ 21,175,913
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$
3,450,316
|
|
$
3,598,872
|
|
$ 3,028,625
|
Interest-bearing
checking
|
2,267,350
|
|
2,155,047
|
|
1,958,027
|
Health savings
accounts
|
3,529,301
|
|
1,824,799
|
|
1,719,890
|
Money
market
|
2,114,300
|
|
1,908,522
|
|
2,133,036
|
Savings
|
3,978,655
|
|
3,892,778
|
|
3,920,171
|
Certificates of
deposit
|
1,905,943
|
|
1,971,567
|
|
2,054,541
|
Brokered certificates
of deposit
|
299,785
|
|
300,020
|
|
225,699
|
Total
deposits
|
17,545,650
|
|
15,651,605
|
|
15,039,989
|
Securities sold under
agreements to repurchase and other borrowings
|
1,083,877
|
|
1,250,756
|
|
1,147,882
|
Federal Home Loan
Bank advances
|
1,584,357
|
|
2,859,431
|
|
2,203,606
|
Long-term
debt
|
226,267
|
|
226,237
|
|
376,412
|
Accrued expenses and
other liabilities
|
310,962
|
|
222,328
|
|
168,229
|
Total
liabilities
|
20,751,113
|
|
20,210,357
|
|
18,936,118
|
|
|
|
|
|
|
Preferred
stock
|
151,649
|
|
151,649
|
|
151,649
|
Common shareholders'
equity
|
2,203,926
|
|
2,171,166
|
|
2,088,146
|
Webster Financial Corporation shareholders' equity
|
2,355,575
|
|
2,322,815
|
|
2,239,795
|
Total Liabilities
and Equity
|
$
23,106,688
|
|
$
22,533,172
|
|
$ 21,175,913
|
|
(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
March 31,
|
(In thousands,
except per share data)
|
2015
|
|
2014(a)
|
Interest
income:
|
|
|
|
Interest and fees on
loans and leases
|
$
130,723
|
|
$
124,010
|
Interest and
dividends on securities
|
51,679
|
|
53,592
|
Loans held for
sale
|
510
|
|
177
|
Total interest
income
|
182,912
|
|
177,779
|
Interest
expense:
|
|
|
|
Deposits
|
11,542
|
|
10,644
|
Borrowings
|
11,606
|
|
11,834
|
Total interest
expense
|
23,148
|
|
22,478
|
Net interest
income
|
159,764
|
|
155,301
|
Provision for loan
losses
|
9,750
|
|
9,000
|
Net interest income
after provision for loan losses
|
150,014
|
|
146,301
|
Non-interest
income:
|
|
|
|
Deposit service
fees
|
32,625
|
|
24,712
|
Loan related
fees
|
5,679
|
|
4,482
|
Wealth and investment
services
|
7,889
|
|
8,838
|
Mortgage banking
activities
|
1,561
|
|
775
|
Increase in cash
surrender value of life insurance policies
|
3,152
|
|
3,258
|
Net gain on
investment securities
|
43
|
|
4,336
|
Other
income
|
6,941
|
|
3,515
|
|
57,890
|
|
49,916
|
Loss on write-down of
investment securities to fair value
|
—
|
|
(88)
|
Total non-interest
income
|
57,890
|
|
49,828
|
Non-interest
expense:
|
|
|
|
Compensation and
benefits
|
70,864
|
|
66,371
|
Occupancy
|
13,596
|
|
12,759
|
Technology and
equipment expense
|
19,248
|
|
15,010
|
Marketing
|
4,176
|
|
3,180
|
Professional and
outside services
|
2,453
|
|
2,702
|
Intangible assets
amortization
|
1,288
|
|
1,168
|
Foreclosed and
repossessed asset expenses
|
169
|
|
458
|
Foreclosed and
repossessed asset gains
|
536
|
|
(260)
|
Loan workout
expenses
|
878
|
|
1,052
|
Deposit
insurance
|
6,241
|
|
5,311
|
Other
expenses
|
14,166
|
|
16,500
|
|
133,615
|
|
124,251
|
Severance, contract,
and other
|
290
|
|
22
|
Acquisition
costs
|
509
|
|
—
|
Branch and facility
optimization
|
(324)
|
|
190
|
Total non-interest
expense
|
134,090
|
|
124,463
|
Income before income
taxes
|
73,814
|
|
71,666
|
Income tax
expense
|
24,092
|
|
21,237
|
Net
income
|
49,722
|
|
50,429
|
Preferred stock
dividends
|
(2,639)
|
|
(2,639)
|
Net income
available to common shareholders
|
$
47,083
|
|
$
47,790
|
|
|
|
|
Diluted shares
(average)
|
90,841
|
|
90,658
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
Basic
|
$
0.52
|
|
$
0.53
|
Diluted
|
0.52
|
|
0.53
|
|
(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)
|
March 31,
2015
|
|
December 31,
2014(a)
|
|
September 30,
2014(a)
|
|
June 30,
2014(a)
|
|
March 31,
2014(a)
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
130,723
|
|
$
132,604
|
|
$
129,227
|
|
$ 125,771
|
|
$ 124,010
|
Interest and
dividends on securities
|
51,679
|
|
50,921
|
|
50,448
|
|
51,511
|
|
53,592
|
Loans held for
sale
|
510
|
|
226
|
|
239
|
|
215
|
|
177
|
Total interest
income
|
182,912
|
|
183,751
|
|
179,914
|
|
177,497
|
|
177,779
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,542
|
|
11,322
|
|
11,345
|
|
10,851
|
|
10,644
|
Borrowings
|
11,606
|
|
11,781
|
|
11,199
|
|
11,524
|
|
11,834
|
Total interest
expense
|
23,148
|
|
23,103
|
|
22,544
|
|
22,375
|
|
22,478
|
Net interest
income
|
159,764
|
|
160,648
|
|
157,370
|
|
155,122
|
|
155,301
|
Provision for loan
losses
|
9,750
|
|
9,500
|
|
9,500
|
|
9,250
|
|
9,000
|
Net interest
income after provision for loan losses
|
150,014
|
|
151,148
|
|
147,870
|
|
145,872
|
|
146,301
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
32,625
|
|
25,928
|
|
26,489
|
|
26,302
|
|
24,712
|
Loan related
fees
|
5,679
|
|
8,361
|
|
5,479
|
|
4,890
|
|
4,482
|
Wealth and investment
services
|
7,889
|
|
8,517
|
|
8,762
|
|
8,829
|
|
8,838
|
Mortgage banking
activities
|
1,561
|
|
977
|
|
1,805
|
|
513
|
|
775
|
Increase in cash
surrender value of life insurance policies
|
3,152
|
|
3,278
|
|
3,346
|
|
3,296
|
|
3,258
|
Net gain on
investment securities
|
43
|
|
1,121
|
|
42
|
|
—
|
|
4,336
|
Other
income
|
6,941
|
|
6,492
|
|
5,071
|
|
3,839
|
|
3,515
|
|
57,890
|
|
54,674
|
|
50,994
|
|
47,669
|
|
49,916
|
Loss on write-down of
investment securities to fair value
|
—
|
|
(899)
|
|
(85)
|
|
(73)
|
|
(88)
|
Total non-interest
income
|
57,890
|
|
53,775
|
|
50,909
|
|
47,596
|
|
49,828
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
70,864
|
|
71,220
|
|
66,849
|
|
65,711
|
|
66,371
|
Occupancy
|
13,596
|
|
11,518
|
|
11,557
|
|
11,491
|
|
12,759
|
Technology and
equipment expense
|
19,248
|
|
15,827
|
|
15,419
|
|
15,737
|
|
15,010
|
Marketing
|
4,176
|
|
3,918
|
|
4,032
|
|
4,249
|
|
3,180
|
Professional and
outside services
|
2,453
|
|
1,855
|
|
2,470
|
|
1,269
|
|
2,702
|
Intangible assets
amortization
|
1,288
|
|
416
|
|
432
|
|
669
|
|
1,168
|
Foreclosed and
repossessed asset expenses
|
169
|
|
244
|
|
387
|
|
134
|
|
458
|
Foreclosed and
repossessed asset gains
|
536
|
|
(238)
|
|
(225)
|
|
(574)
|
|
(260)
|
Loan workout
expenses
|
878
|
|
685
|
|
969
|
|
801
|
|
1,052
|
Deposit
insurance
|
6,241
|
|
5,856
|
|
5,938
|
|
5,565
|
|
5,311
|
Other
expenses
|
14,166
|
|
16,158
|
|
17,083
|
|
16,898
|
|
16,500
|
|
133,615
|
|
127,459
|
|
124,911
|
|
121,950
|
|
124,251
|
Severance, contract,
and other
|
290
|
|
633
|
|
42
|
|
267
|
|
22
|
Acquisition
costs
|
509
|
|
396
|
|
144
|
|
—
|
|
—
|
Branch and facility
optimization
|
(324)
|
|
276
|
|
(599)
|
|
258
|
|
190
|
Provision for
litigation and settlements
|
—
|
|
1,400
|
|
—
|
|
—
|
|
—
|
Total non-interest
expense
|
134,090
|
|
130,164
|
|
124,498
|
|
122,475
|
|
124,463
|
Income before income
taxes
|
73,814
|
|
74,759
|
|
74,281
|
|
70,993
|
|
71,666
|
Income tax
expense
|
24,092
|
|
23,753
|
|
23,824
|
|
23,159
|
|
21,237
|
Net
income
|
49,722
|
|
51,006
|
|
50,457
|
|
47,834
|
|
50,429
|
Preferred stock
dividends
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
Net income
available to common shareholders
|
$
47,083
|
|
$
48,367
|
|
$
47,818
|
|
$
45,195
|
|
$ 47,790
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
90,841
|
|
90,741
|
|
90,614
|
|
90,528
|
|
90,658
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.52
|
|
$
0.54
|
|
$
0.53
|
|
$
0.50
|
|
$
0.53
|
Diluted
|
0.52
|
|
0.53
|
|
0.53
|
|
0.50
|
|
0.53
|
|
(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 Average Balances, Yields, and Rates Paid
(unaudited)
|
|
Three Months Ended
March 31,
|
|
|
|
|
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
|
$
13,994,482
|
|
$
131,254
|
|
3.76%
|
|
$ 12,853,349
|
|
$ 124,512
|
|
3.88%
|
Investment
securities(a)
|
6,695,978
|
|
52,426
|
|
3.15
|
|
6,420,976
|
|
54,925
|
|
3.43
|
Federal Home
Loan and Federal Reserve Bank stock
|
193,290
|
|
1,316
|
|
2.76
|
|
158,959
|
|
1,167
|
|
2.98
|
Interest-bearing deposits
|
99,879
|
|
63
|
|
0.25
|
|
15,949
|
|
11
|
|
0.27
|
Loans held for
sale
|
40,666
|
|
510
|
|
5.02
|
|
18,128
|
|
177
|
|
3.92
|
Total interest-earning assets
|
21,024,295
|
|
$
185,569
|
|
3.54
|
|
19,467,361
|
|
$ 180,792
|
|
3.72
|
Non-interest-earning assets
|
1,643,631
|
|
|
|
|
|
1,511,799
|
|
|
|
|
Total assets
|
$
22,667,926
|
|
|
|
|
|
$ 20,979,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,454,242
|
|
$
—
|
|
—%
|
|
$
3,096,991
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
11,541,135
|
|
4,836
|
|
0.17
|
|
9,844,931
|
|
4,519
|
|
0.19
|
Certificates
of deposit
|
2,242,857
|
|
6,706
|
|
1.21
|
|
2,250,283
|
|
6,125
|
|
1.10
|
Total deposits
|
17,238,234
|
|
11,542
|
|
0.27
|
|
15,192,205
|
|
10,644
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,199,025
|
|
4,387
|
|
1.46
|
|
1,351,444
|
|
5,205
|
|
1.54
|
Federal Home Loan
Bank advances
|
1,432,717
|
|
4,821
|
|
1.35
|
|
1,721,669
|
|
3,847
|
|
0.89
|
Long-term
debt
|
226,248
|
|
2,398
|
|
4.24
|
|
308,985
|
|
2,782
|
|
3.60
|
Total borrowings
|
2,857,990
|
|
11,606
|
|
1.62
|
|
3,382,098
|
|
11,834
|
|
1.40
|
Total interest-bearing liabilities
|
20,096,224
|
|
$
23,148
|
|
0.46%
|
|
18,574,303
|
|
$ 22,478
|
|
0.49%
|
Non-interest-bearing
liabilities
|
221,799
|
|
|
|
|
|
165,864
|
|
|
|
|
Total liabilities
|
20,318,023
|
|
|
|
|
|
18,740,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
151,649
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,198,254
|
|
|
|
|
|
2,087,344
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,349,903
|
|
|
|
|
|
2,238,993
|
|
|
|
|
Total liabilities and equity
|
$
22,667,926
|
|
|
|
|
|
$ 20,979,160
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
162,421
|
|
|
|
|
|
158,314
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(2,657)
|
|
|
|
|
|
(3,013)
|
|
|
Net interest income
|
|
|
$
159,764
|
|
|
|
|
|
$ 155,301
|
|
|
Net interest margin
|
|
|
|
|
3.10%
|
|
|
|
|
|
3.26%
|
|
(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)
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
Loan Balances
(actuals):
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
3,183,218
|
|
$
3,087,940
|
|
$ 2,984,949
|
|
$
2,978,576
|
|
$ 2,926,223
|
Equipment financing
|
543,636
|
|
537,751
|
|
490,150
|
|
464,948
|
|
457,670
|
Asset-based lending
|
716,592
|
|
661,330
|
|
647,042
|
|
624,565
|
|
585,615
|
Commercial real estate
|
3,663,071
|
|
3,554,428
|
|
3,354,107
|
|
3,291,892
|
|
3,143,612
|
Residential mortgages
|
3,594,272
|
|
3,509,174
|
|
3,455,353
|
|
3,366,091
|
|
3,356,538
|
Consumer
|
2,480,270
|
|
2,457,345
|
|
2,485,870
|
|
2,449,730
|
|
2,422,377
|
Total continuing portfolio
|
14,181,059
|
|
13,807,968
|
|
13,417,471
|
|
13,175,802
|
|
12,892,035
|
Allowance for loan losses
|
(152,825)
|
|
(149,813)
|
|
(145,818)
|
|
(143,440)
|
|
(141,352)
|
Total continuing portfolio, net
|
14,028,234
|
|
13,658,155
|
|
13,271,653
|
|
13,032,362
|
|
12,750,683
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
National
Construction Lending Center (NCLC)
|
—
|
|
1
|
|
1
|
|
1
|
|
1
|
Consumer
|
89,167
|
|
92,056
|
|
96,030
|
|
99,577
|
|
102,706
|
Total liquidating portfolio
|
89,167
|
|
92,057
|
|
96,031
|
|
99,578
|
|
102,707
|
Allowance for loan losses
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
|
(12,248)
|
Total liquidating portfolio, net
|
80,022
|
|
82,606
|
|
85,367
|
|
88,150
|
|
90,459
|
Total Loan
Balances (actuals)
|
14,270,226
|
|
13,900,025
|
|
13,513,502
|
|
13,275,380
|
|
12,994,742
|
Allowance for loan
losses
|
(161,970)
|
|
(159,264)
|
|
(156,482)
|
|
(154,868)
|
|
(153,600)
|
Loans,
net
|
$ 14,108,256
|
|
$
13,740,761
|
|
$ 13,357,020
|
|
$ 13,120,512
|
|
$ 12,841,142
|
|
|
|
|
|
|
|
|
|
|
Loan Balances
(average):
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
3,096,762
|
|
$
3,036,412
|
|
$ 2,987,403
|
|
$
2,963,150
|
|
$ 2,853,516
|
Equipment financing
|
542,067
|
|
509,331
|
|
478,333
|
|
459,140
|
|
456,391
|
Asset-based lending
|
675,218
|
|
647,952
|
|
621,856
|
|
612,170
|
|
562,443
|
Commercial real estate
|
3,574,826
|
|
3,452,954
|
|
3,329,767
|
|
3,195,746
|
|
3,080,575
|
Residential mortgages
|
3,546,098
|
|
3,483,444
|
|
3,409,010
|
|
3,361,276
|
|
3,364,746
|
Consumer
|
2,468,422
|
|
2,491,359
|
|
2,467,839
|
|
2,437,452
|
|
2,431,900
|
Total continuing portfolio
|
13,903,393
|
|
13,621,452
|
|
13,294,208
|
|
13,028,934
|
|
12,749,571
|
Allowance for loan losses
|
(153,790)
|
|
(150,706)
|
|
(146,863)
|
|
(143,811)
|
|
(143,676)
|
Total continuing portfolio, net
|
13,749,603
|
|
13,470,746
|
|
13,147,345
|
|
12,885,123
|
|
12,605,895
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
1
|
|
1
|
|
1
|
|
53
|
|
1
|
Consumer
|
91,088
|
|
94,069
|
|
97,661
|
|
100,878
|
|
103,777
|
Total liquidating portfolio
|
91,089
|
|
94,070
|
|
97,662
|
|
100,931
|
|
103,778
|
Allowance for loan losses
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
|
(12,248)
|
Total liquidating portfolio, net
|
81,944
|
|
84,619
|
|
86,998
|
|
89,503
|
|
91,530
|
Total Loan
Balances (average)
|
13,994,482
|
|
13,715,522
|
|
13,391,870
|
|
13,129,865
|
|
12,853,349
|
Allowance for loan
losses
|
(162,935)
|
|
(160,157)
|
|
(157,527)
|
|
(155,239)
|
|
(155,924)
|
Loans,
net
|
$ 13,831,547
|
|
$
13,555,365
|
|
$ 13,234,343
|
|
$ 12,974,626
|
|
$ 12,697,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
(Dollars in
thousands)
|
March 31,
2015
|
|
December 31,
2014(a)
|
|
September 30,
2014(a)
|
|
June 30,
2014(a)
|
|
March 31,
2014(a)
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
27,057
|
|
$
6,436
|
|
$
12,421
|
|
$
14,152
|
|
$
12,869
|
Equipment
financing
|
285
|
|
518
|
|
1,659
|
|
863
|
|
1,325
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
25,814
|
|
18,675
|
|
18,341
|
|
19,023
|
|
20,009
|
Residential
mortgages
|
61,274
|
|
64,022
|
|
67,541
|
|
67,722
|
|
65,855
|
Consumer
|
33,696
|
|
35,770
|
|
34,566
|
|
36,526
|
|
38,670
|
Nonperforming
loans - continuing portfolio
|
148,126
|
|
125,421
|
|
134,528
|
|
138,286
|
|
138,728
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
4,117
|
|
4,460
|
|
4,560
|
|
5,475
|
|
5,875
|
Total
nonperforming loans
|
$
152,243
|
|
$
129,881
|
|
$
139,088
|
|
$
143,761
|
|
$
144,603
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
—
|
|
$
2,899
|
|
$
2,899
|
|
$
3,238
|
|
$
3,466
|
Repossessed
equipment
|
—
|
|
100
|
|
100
|
|
100
|
|
123
|
Residential
|
3,051
|
|
2,280
|
|
1,712
|
|
2,748
|
|
3,721
|
Consumer
|
2,252
|
|
1,237
|
|
515
|
|
643
|
|
469
|
Total
continuing portfolio
|
5,303
|
|
6,516
|
|
5,226
|
|
6,729
|
|
7,779
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Total
liquidating portfolio
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total other real
estate owned and repossessed assets
|
$
5,303
|
|
$
6,516
|
|
$
5,226
|
|
$
6,729
|
|
$
7,779
|
Total
nonperforming assets
|
$
157,546
|
|
$
136,397
|
|
$
144,314
|
|
$
150,490
|
|
$
152,382
|
|
(a) Certain
previously reported information reflects the reclassification of
residential loans from nonperforming loans to accruing past due 90
days or more as their principal and accrued interest are well
secured due to government guarantees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans (unaudited)
|
(Dollars in
thousands)
|
March 31,
2015
|
|
December 31,
2014(a)
|
|
September 30,
2014(a)
|
|
June 30,
2014(a)
|
|
March 31,
2014(a)
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,992
|
|
$
2,099
|
|
$
8,795
|
|
$
5,045
|
|
$
7,913
|
Equipment
financing
|
789
|
|
701
|
|
433
|
|
290
|
|
698
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
3,962
|
|
2,714
|
|
1,625
|
|
1,610
|
|
2,680
|
Residential
mortgages
|
13,966
|
|
17,216
|
|
15,980
|
|
17,826
|
|
18,966
|
Consumer
|
18,459
|
|
15,867
|
|
15,852
|
|
18,956
|
|
14,552
|
Past due 30-89
days - continuing portfolio
|
41,168
|
|
38,597
|
|
42,685
|
|
43,727
|
|
44,809
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
1,820
|
|
1,658
|
|
1,419
|
|
2,105
|
|
2,325
|
Total past due
30-89 days
|
42,988
|
|
40,255
|
|
44,104
|
|
45,832
|
|
47,134
|
Loans past due 90
days or more and accruing
|
2,109
|
|
2,087
|
|
1,980
|
|
1,828
|
|
1,368
|
Total past due
loans
|
$
45,097
|
|
$
42,342
|
|
$
46,084
|
|
$
47,660
|
|
$
48,502
|
|
(a) Certain
previously reported information reflects the reclassification of
residential loans from nonperforming loans to accruing past due 90
days or more as their principal and accrued interest are well
secured due to government guarantees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan Losses
(unaudited)
|
|
|
For the Three
Months Ended
|
(Dollars in
thousands)
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
Beginning
balance
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
|
$
152,573
|
Provision
|
9,750
|
|
9,500
|
|
9,500
|
|
9,250
|
|
9,000
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
255
|
|
4,097
|
|
2,738
|
|
3,685
|
|
3,148
|
Equipment
financing
|
15
|
|
84
|
|
491
|
|
20
|
|
—
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
3,153
|
|
246
|
|
139
|
|
447
|
|
2,405
|
Residential
mortgages
|
1,953
|
|
1,346
|
|
1,870
|
|
1,840
|
|
1,158
|
Consumer
|
3,634
|
|
3,648
|
|
5,078
|
|
4,075
|
|
4,517
|
Charge-offs
continuing portfolio
|
9,010
|
|
9,421
|
|
10,316
|
|
10,067
|
|
11,228
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
Consumer
|
662
|
|
563
|
|
1,251
|
|
1,211
|
|
369
|
Charge-offs
liquidating portfolio
|
664
|
|
563
|
|
1,251
|
|
1,211
|
|
369
|
Total
charge-offs
|
9,674
|
|
9,984
|
|
11,567
|
|
11,278
|
|
11,597
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
989
|
|
1,258
|
|
967
|
|
1,121
|
|
950
|
Equipment
financing
|
143
|
|
702
|
|
336
|
|
397
|
|
799
|
Asset-based
lending
|
26
|
|
—
|
|
50
|
|
—
|
|
23
|
Commercial real
estate
|
202
|
|
217
|
|
120
|
|
69
|
|
479
|
Residential
mortgages
|
104
|
|
291
|
|
250
|
|
495
|
|
108
|
Consumer
|
821
|
|
636
|
|
1,770
|
|
923
|
|
865
|
Recoveries continuing
portfolio
|
2,285
|
|
3,104
|
|
3,493
|
|
3,005
|
|
3,224
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
4
|
|
5
|
|
11
|
|
12
|
|
152
|
Consumer
|
341
|
|
157
|
|
177
|
|
279
|
|
248
|
Recoveries
liquidating portfolio
|
345
|
|
162
|
|
188
|
|
291
|
|
400
|
Total
recoveries
|
2,630
|
|
3,266
|
|
3,681
|
|
3,296
|
|
3,624
|
Total net
charge-offs
|
7,044
|
|
6,718
|
|
7,886
|
|
7,982
|
|
7,973
|
Ending
balance
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP Financial Measures
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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.
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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.
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See the tables below
for reconciliations of these non-GAAP financial measures with
financial measures defined by GAAP for the three months ended March
31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and
March 31, 2014. 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.
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At or for the
Three Months Ended
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(Dollars in
thousands, except per share data)
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March 31,
2015
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December 31,
2014(a)
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September 30,
2014(a)
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June 30,
2014(a)
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March 31,
2014(a)
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Reconciliation of
net income available to common shareholders to net income used for
computing the return on average tangible common shareholders'
equity ratio
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Net income available
to common shareholders
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$
47,083
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$
48,367
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$
47,818
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$
45,195
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$
47,790
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Amortization of
intangibles (tax-affected @ 35%)
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837
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270
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281
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435
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759
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Quarterly net income
adjusted for amortization of intangibles
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47,920
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48,637
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48,099
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45,630
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48,549
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Annualized net
income used in the return on average tangible common shareholders'
equity ratio
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$
191,680
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$
194,548
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$
192,396
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$
182,520
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$
194,196
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Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
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Average common
shareholders' equity
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$
2,198,254
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$
2,189,191
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$ 2,155,246
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$
2,119,160
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$ 2,087,344
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Average
goodwill
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(537,147)
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(529,887)
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(529,887)
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(529,887)
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(529,887)
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Average intangible
assets (excluding mortgage servicing rights)
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(39,559)
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(2,862)
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(3,294)
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(3,762)
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(4,754)
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Average tangible
common shareholders' equity
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$
1,621,548
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$
1,656,442
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$ 1,622,065
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$
1,585,511
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$ 1,552,703
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Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders' equity
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Shareholders'
equity
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$
2,355,575
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$
2,322,815
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$ 2,310,993
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$
2,284,622
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$ 2,239,795
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Goodwill
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(538,373)
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(529,887)
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(529,887)
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(529,887)
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(529,887)
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Intangible assets
(excluding mortgage servicing rights)
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(44,378)
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(2,666)
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(3,082)
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(3,515)
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(4,183)
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Tangible
shareholders' equity
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$
1,772,824
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$
1,790,262
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$ 1,778,024
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$
1,751,220
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$ 1,705,725
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Reconciliation of
period-end common shareholders' equity to period-end tangible
common shareholders' equity
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Shareholders'
equity
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$
2,355,575
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$
2,322,815
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$ 2,310,993
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$
2,284,622
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$ 2,239,795
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Preferred
stock
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(151,649)
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(151,649)
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(151,649)
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(151,649)
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(151,649)
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Common shareholders'
equity
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2,203,926
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2,171,166
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2,159,344
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2,132,973
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2,088,146
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Goodwill
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(538,373)
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(529,887)
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(529,887)
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(529,887)
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(529,887)
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Intangible assets
(excluding mortgage servicing rights)
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(44,378)
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(2,666)
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(3,082)
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(3,515)
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(4,183)
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Tangible common
shareholders' equity
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$
1,621,175
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$
1,638,613
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$ 1,626,375
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$
1,599,571
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$ 1,554,076
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Reconciliation of
period-end assets to period-end tangible assets
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Assets
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$
23,106,688
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$
22,533,172
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$ 21,827,046
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$ 21,524,484
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$ 21,175,913
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Goodwill
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(538,373)
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(529,887)
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(529,887)
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(529,887)
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(529,887)
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Intangible assets
(excluding mortgage servicing rights)
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(44,378)
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(2,666)
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(3,082)
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(3,515)
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(4,183)
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Tangible
assets
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$
22,523,937
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$
22,000,619
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$ 21,294,077
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$ 20,991,082
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$ 20,641,843
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Book value per
common share
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Common shareholders'
equity
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$
2,203,926
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$
2,171,166
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$ 2,159,344
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$
2,132,973
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$ 2,088,146
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Ending common shares
issued and outstanding (in thousands)
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90,715
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90,512
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90,248
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90,246
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90,269
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Book value per
share of common stock
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$
24.29
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$
23.99
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$
23.93
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$
23.64
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$
23.13
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Tangible book
value per common share
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Tangible common
shareholders' equity
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$
1,621,175
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$
1,638,613
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$ 1,626,375
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$
1,599,571
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$ 1,554,076
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Ending common shares
issued and outstanding (in thousands)
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90,715
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90,512
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90,248
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90,246
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90,269
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Tangible book value
per common share
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$
17.87
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$
18.10
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$
18.02
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$
17.72
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$
17.22
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Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
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Non-interest
expense
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$
134,090
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$
130,164
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$
124,498
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$
122,475
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$
124,463
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Foreclosed property
expense
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(169)
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(244)
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(387)
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(134)
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(458)
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Intangible assets
amortization
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(1,288)
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(416)
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(432)
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(669)
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(1,168)
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Other
expense
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(1,011)
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(2,467)
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638
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49
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48
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Non-interest
expense used in the efficiency ratio
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$
131,622
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$
127,037
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$
124,317
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$
121,721
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$
122,885
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Reconciliation of
income to income used in the efficiency ratio
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Net interest income
before provision for loan losses
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$
159,764
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$
160,648
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$
157,370
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$
155,122
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$
155,301
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Fully
taxable-equivalent adjustment
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2,657
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2,628
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2,700
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2,783
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3,013
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Non-interest
income
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57,890
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53,775
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50,909
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47,596
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49,828
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Net gain on
investment securities
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(43)
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(1,121)
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(42)
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—
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(4,336)
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Other
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—
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899
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85
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73
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88
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Income used in the
efficiency ratio
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$
220,268
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$
216,829
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$
211,022
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$
205,574
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$
203,894
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(a) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2015-first-quarter-earnings-300066921.html
SOURCE Webster Financial Corporation