WATERBURY, Conn., Jan. 21, 2016 /PRNewswire/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income
available to common shareholders of $50.6
million, or $0.55 per diluted
share, for the quarter ended December 31,
2015 compared to $48.4
million, or $0.53 per diluted
share, for the quarter ended December 31,
2014.
For the full year 2015, net income available to common
shareholders was $197.6 million, or
$2.15 per diluted share, compared to
$189.2 million, or $2.08 per diluted share, for the full year
2014.
"Webster's record net income for the fourth quarter and full
year 2015 showcase our sustained progress in executing growth
strategies that maximize value to customers and shareholders," said
James C. Smith, chairman and chief
executive officer. "Record quarterly loan originations and net
interest margin expansion helped produce our 25th
consecutive quarter of year-over-year core revenue growth. Record
full year 2015 loan originations of $5.6
billion were 19 percent higher than a year ago, as Webster
bankers excelled in service to our customers and communities."
Highlights for the fourth quarter of 2015 compared to the
fourth quarter of 2014:
- Record quarterly pre-provision net revenue of $90.3 million, an increase of 4.2 percent.
- Loan growth of $1.8 billion, or
12.8 percent, with double-digit growth in commercial, commercial
real estate and residential mortgage loans.
- Deposit growth of $2.3 billion,
or 14.7 percent, primarily reflecting HSA Bank's strong organic
growth and its January 2015
acquisition.
- Record core revenue of $233.6
million, an increase of 9.1 percent, including a record
level of net interest income of $173.3
million.
- Efficiency ratio of 59.87 percent represents the eleventh
consecutive quarter at or below 60 percent.
- Annualized return on average tangible common shareholders'
equity of 11.99 percent.
"We've now achieved eleven consecutive quarters with the
efficiency ratio at or below 60 percent," said Glenn MacInnes, executive vice president and
chief financial officer. "We've accomplished this even as we
continue to invest in our future."
Quarterly net interest income compared to the fourth quarter
of 2014:
- Net interest income was $173.3
million compared to $160.6
million.
- Net interest margin was 3.08 percent compared to 3.17 percent.
The yield on interest-earning assets declined by 10 basis points,
while the cost of funds declined by 2 basis points.
- Net interest margin increased 4 basis points on a
linked-quarter basis.
- Average interest-earning assets totaled $22.7 billion and grew by $2.2 billion, or 10.8 percent.
- Average loans grew by $1.7
billion, or 12.7 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$13.8 million compared to
$13.0 million in the third quarter
and $9.5 million a year ago. The
increase compared to each period primarily reflects continued
growth in the loan portfolio.
- Net charge-offs were $11.8
million compared to $7.9
million in the prior quarter and $6.7
million a year ago. The ratio of net charge-offs to average
loans on an annualized basis was 0.31 percent compared to 0.21
percent in the prior quarter and 0.20 percent a year ago. The
increase in net charge-offs was primarily in the commercial
segment.
- The allowance for loan losses represented 1.12 percent of total
loans compared to 1.14 percent at September
30, 2015 and 1.15 percent at December
31, 2014. The allowance for loan losses represented 125
percent of nonperforming loans compared to 109 percent at
September 30 and 123 percent a year
ago.
Quarterly non-interest income compared to the fourth quarter
of 2014:
- Total non-interest income was $60.3
million compared to $53.8
million, an increase of $6.6
million. Excluding securities gains and other-than-temporary
impairment charges, a year-over-year increase of $6.7 million in core non-interest income reflects
increases of $8.3 million in deposit
service fees related to HSA Bank and $1.3
million in mortgage banking activities, offset by decreases
of $2.5 million in loan related fees
and $0.5 million in wealth and
investment services.
Quarterly non-interest expense compared to the fourth quarter
of 2014:
- Total non-interest expense was $143.2
million compared to $130.2
million, an increase of $13.0
million.
- Non-interest expense, excluding one-time costs, increased
$15.8 million with $8.9 million of the increase related to HSA Bank.
The remaining $6.9 million increase
reflects higher compensation expense, professional and outside
services, and other.
Quarterly income taxes compared to the fourth quarter of
2014:
- Income tax expense was $24.1
million compared to $23.8
million. The effective tax rate was 31.5 percent compared to
31.8 percent, and the current quarter included a $1.2 million net tax benefit specific to the
period compared to $0.1 million a
year ago.
Investment securities:
- Total investment securities were $6.9
billion compared to $7.0
billion at September 30, 2015
and $6.7 billion a year ago. The
carrying value of the available-for-sale portfolio included
$10.3 million of net unrealized
losses compared to net unrealized gains of $16.0 million at September
30 and $25.9 million a year
ago, while the carrying value of the held-to-maturity portfolio
does not reflect $38.5 million of net
unrealized gains compared to $72.3
million at September 30 and
$75.8 million a year ago.
Loans:
- Total loans were $15.7 billion
compared to $15.2 billion at
September 30, 2015 and $13.9 billion a year ago. Compared to
September 30, commercial, commercial
real estate, consumer, and residential mortgage loans increased by
$223.7 million, $134.5 million, $51.9
million, and $45.2 million,
respectively.
- Compared to a year ago, commercial, residential mortgage,
commercial real estate, and consumer loans increased by
$629.5 million, $551.8 million, $437.2
million, and $153.2 million,
respectively.
- Loan originations for portfolio were $1.534 billion compared to $1.207 billion in the third quarter and
$1.378 billion a year ago. In
addition, $98 million of residential
loans were originated for sale in the quarter compared to
$117 million in the prior quarter and
$87 million a year ago.
Asset quality:
- Past due loans were $39.2 million
compared to $41.3 million at
September 30, 2015 and $42.3 million a year ago. Loans past due 90 days
and still accruing decreased $0.2
million from the prior quarter and were flat to the prior
year.
- Total nonperforming loans decreased to $139.9 million, or 0.89 percent of total loans,
compared to $159.0 million, or 1.04
percent, at September 30 and
$129.9 million, or 0.93 percent, a
year ago. Total paying nonperforming loans were $48.7 million compared to $45.0 million at September
30 and $30.5 million a year
ago.
Deposits and borrowings:
- Total deposits were $18.0 billion
compared to $17.6 billion at
September 30, 2015 and $15.7 billion a year ago. Core to total deposits
were 88.4 percent compared to 88.3 percent at September 30 and 85.5 percent a year ago. Loans
to deposits were 87.3 percent compared to 86.5 percent at
September 30 and 88.8 percent a year
ago.
- Total borrowings were $4.0
billion compared to $3.8
billion at September 30 and
$4.3 billion a year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 11.99
percent and 8.79 percent, respectively, compared to 11.74 percent
and 8.84 percent, respectively, in the fourth quarter of 2014.
- The tangible equity and tangible common equity ratios were 7.63
percent and 7.12 percent, respectively, compared to 8.14 percent
and 7.45 percent, respectively, at December
31, 2014. The common equity tier 1 risk-based capital ratio
was 10.71 percent compared to 11.43 percent a year ago.
- Book value and tangible book value per common share were
$25.01 and $18.71, respectively, compared to $23.99 and $18.10,
respectively, a year ago.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $24.7 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 178 banking
centers and 353 ATMs, with an additional 2 banking centers
scheduled to open soon in greater Boston (subject to regulatory approval).
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 2015 fourth quarter
earnings announcement will be held today, Thursday, January 21, 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. 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)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
52,579
|
|
$ 51,536
|
|
$ 52,503
|
|
$ 49,722
|
|
$ 51,006
|
Net income available
to common shareholders
|
50,555
|
|
49,512
|
|
50,479
|
|
47,083
|
|
48,367
|
Net income per
diluted common share
|
0.55
|
|
0.54
|
|
0.55
|
|
0.52
|
|
0.53
|
Return on average
assets
|
0.86 %
|
|
0.86 %
|
|
0.90 %
|
|
0.88 %
|
|
0.93 %
|
Return on average
tangible common shareholders' equity
|
11.99
|
|
11.89
|
|
12.49
|
|
11.82
|
|
11.74
|
Return on average
common shareholders' equity
|
8.79
|
|
8.68
|
|
9.03
|
|
8.57
|
|
8.84
|
Non-interest income
as a percentage of total revenue
|
25.82
|
|
26.78
|
|
26.80
|
|
26.60
|
|
25.08
|
Efficiency
ratio
|
59.87
|
|
59.49
|
|
59.88
|
|
59.69
|
|
58.54
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses
|
$ 174,990
|
|
$ 172,992
|
|
$ 167,860
|
|
$ 161,970
|
|
$ 159,264
|
Nonperforming
assets
|
144,970
|
|
164,387
|
|
172,825
|
|
157,546
|
|
136,397
|
Allowance for loan
and lease losses / total loans and leases
|
1.12 %
|
|
1.14 %
|
|
1.14 %
|
|
1.14 %
|
|
1.15 %
|
Net charge-offs /
average loans and leases (annualized)
|
0.31
|
|
0.21
|
|
0.19
|
|
0.20
|
|
0.20
|
Nonperforming loans
and leases / total loans and leases
|
0.89
|
|
1.04
|
|
1.14
|
|
1.07
|
|
0.93
|
Nonperforming assets
/ total loans and leases plus OREO
|
0.92
|
|
1.08
|
|
1.17
|
|
1.10
|
|
0.98
|
Allowance for loan
and lease losses / nonperforming loans and leases
|
125.05
|
|
108.80
|
|
100.00
|
|
106.39
|
|
122.62
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
7.63 %
|
|
7.76 %
|
|
7.81 %
|
|
7.87 %
|
|
8.14 %
|
Tangible common
equity
|
7.12
|
|
7.24
|
|
7.27
|
|
7.20
|
|
7.45
|
Tier 1 risk-based
capital (a), (b)
|
11.54
|
|
11.62
|
|
11.80
|
|
12.01
|
|
12.95
|
Total risk-based
capital (a), (b)
|
12.91
|
|
13.02
|
|
13.21
|
|
13.44
|
|
14.06
|
Common equity tier 1
risk-based capital (a), (b)
|
10.71
|
|
10.78
|
|
10.94
|
|
10.93
|
|
11.43
|
Shareholders' equity
/ total assets
|
9.79
|
|
9.98
|
|
10.07
|
|
10.19
|
|
10.31
|
Net interest
margin
|
3.08
|
|
3.04
|
|
3.05
|
|
3.10
|
|
3.17
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$ 2,292,861
|
|
$ 2,279,835
|
|
$ 2,256,985
|
|
$ 2,203,926
|
|
$ 2,171,166
|
Book value per common
share
|
25.01
|
|
24.87
|
|
24.55
|
|
24.29
|
|
23.99
|
Tangible book value
per common share
|
18.71
|
|
18.55
|
|
18.23
|
|
17.87
|
|
18.10
|
Common stock closing
price
|
37.19
|
|
35.63
|
|
39.55
|
|
37.05
|
|
32.53
|
Dividends declared
per common share
|
0.23
|
|
0.23
|
|
0.23
|
|
0.20
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
Basic shares
(weighted average)
|
91,419
|
|
91,458
|
|
90,713
|
|
90,251
|
|
90,045
|
Diluted shares
(weighted average)
|
91,956
|
|
92,007
|
|
91,302
|
|
90,841
|
|
90,741
|
|
|
|
|
|
|
|
|
|
|
(a) The ratios
presented are projected for December 31, 2015 and actual for the
remaining periods.
|
(b) Calculated
under the Basel III capital standard for the 2015 periods and under
the Basel I capital standard for the 2014 period.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
(In
thousands)
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
251,258
|
|
$ 251,898
|
|
$ 261,544
|
Interest-bearing
deposits
|
155,907
|
|
19,257
|
|
132,695
|
Investment
securities:
|
|
|
|
|
|
Available for sale,
at fair value
|
2,984,631
|
|
3,015,417
|
|
2,793,873
|
Held to
maturity
|
3,923,052
|
|
3,951,208
|
|
3,872,955
|
Total
securities
|
6,907,683
|
|
6,966,625
|
|
6,666,828
|
Loans held for
sale
|
37,091
|
|
38,331
|
|
67,952
|
Loans and
Leases:
|
|
|
|
|
|
Commercial
|
4,916,525
|
|
4,692,829
|
|
4,287,021
|
Commercial real
estate
|
3,991,649
|
|
3,857,155
|
|
3,554,428
|
Residential
mortgages
|
4,061,001
|
|
4,015,839
|
|
3,509,175
|
Consumer
|
2,702,560
|
|
2,650,702
|
|
2,549,401
|
Total loans and
leases
|
15,671,735
|
|
15,216,525
|
|
13,900,025
|
Allowance for loan
and lease losses
|
(174,990)
|
|
(172,992)
|
|
(159,264)
|
Loans and leases,
net
|
15,496,745
|
|
15,043,533
|
|
13,740,761
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
188,347
|
|
184,280
|
|
193,290
|
Premises and
equipment, net
|
129,426
|
|
127,216
|
|
121,933
|
Goodwill and other
intangible assets, net
|
577,699
|
|
579,287
|
|
532,553
|
Cash surrender value
of life insurance policies
|
503,093
|
|
449,711
|
|
440,073
|
Deferred tax asset,
net
|
101,578
|
|
84,743
|
|
73,873
|
Accrued interest
receivable and other assets
|
328,993
|
|
324,901
|
|
301,670
|
Total
Assets
|
$ 24,677,820
|
|
$ 24,069,782
|
|
$ 22,533,172
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$ 3,713,063
|
|
$ 3,551,229
|
|
$ 3,598,872
|
Interest-bearing
checking
|
2,369,971
|
|
2,183,267
|
|
2,155,047
|
Health savings
accounts
|
3,802,313
|
|
3,643,557
|
|
1,824,799
|
Money
market
|
1,933,460
|
|
2,186,383
|
|
1,908,522
|
Savings
|
4,047,817
|
|
3,956,054
|
|
3,892,778
|
Certificates of
deposit
|
1,762,847
|
|
1,762,046
|
|
1,971,567
|
Brokered certificates
of deposit
|
323,307
|
|
299,694
|
|
300,020
|
Total
deposits
|
17,952,778
|
|
17,582,230
|
|
15,651,605
|
Securities sold under
agreements to repurchase and other borrowings
|
1,151,400
|
|
1,002,018
|
|
1,250,756
|
Federal Home Loan
Bank advances
|
2,664,139
|
|
2,609,212
|
|
2,859,431
|
Long-term
debt
|
226,356
|
|
226,327
|
|
226,237
|
Accrued expenses and
other liabilities
|
267,576
|
|
247,450
|
|
222,328
|
Total
liabilities
|
22,262,249
|
|
21,667,237
|
|
20,210,357
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
122,710
|
|
151,649
|
Common shareholders'
equity
|
2,292,861
|
|
2,279,835
|
|
2,171,166
|
Webster Financial
Corporation shareholders' equity
|
2,415,571
|
|
2,402,545
|
|
2,322,815
|
Total Liabilities
and Equity
|
$ 24,677,820
|
|
$ 24,069,782
|
|
$ 22,533,172
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
(a)
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$ 145,504
|
|
$ 132,604
|
|
$
552,441
|
|
$ 511,612
|
Interest and
dividends on securities
|
52,365
|
|
50,921
|
|
206,009
|
|
206,472
|
Loans held for
sale
|
291
|
|
226
|
|
1,590
|
|
857
|
Total interest
income
|
198,160
|
|
183,751
|
|
760,040
|
|
718,941
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
11,476
|
|
11,322
|
|
46,031
|
|
44,162
|
Borrowings
|
13,344
|
|
11,781
|
|
49,384
|
|
46,338
|
Total interest
expense
|
24,820
|
|
23,103
|
|
95,415
|
|
90,500
|
Net interest
income
|
173,340
|
|
160,648
|
|
664,625
|
|
628,441
|
Provision for loan
and lease losses
|
13,800
|
|
9,500
|
|
49,300
|
|
37,250
|
Net interest
income after provision for loan and lease losses
|
159,540
|
|
151,148
|
|
615,325
|
|
591,191
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,231
|
|
25,928
|
|
136,578
|
|
103,431
|
Loan and lease
related fees
|
5,881
|
|
8,361
|
|
25,594
|
|
23,212
|
Wealth and investment
services
|
8,052
|
|
8,517
|
|
32,486
|
|
34,946
|
Mortgage banking
activities
|
2,276
|
|
977
|
|
7,795
|
|
4,070
|
Increase in cash
surrender value of life insurance policies
|
3,383
|
|
3,278
|
|
13,020
|
|
13,178
|
Net gain on
investment securities
|
80
|
|
1,121
|
|
609
|
|
5,499
|
Other
income
|
6,474
|
|
6,492
|
|
23,573
|
|
18,917
|
|
60,377
|
|
54,674
|
|
239,655
|
|
203,253
|
Loss on write-down of
investment securities to fair value
|
(28)
|
|
(899)
|
|
(110)
|
|
(1,145)
|
Total non-interest
income
|
60,349
|
|
53,775
|
|
239,545
|
|
202,108
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
79,232
|
|
71,220
|
|
297,517
|
|
270,151
|
Occupancy
|
11,573
|
|
11,518
|
|
48,836
|
|
47,325
|
Technology and
equipment expense
|
19,218
|
|
15,827
|
|
80,026
|
|
61,993
|
Marketing
|
3,533
|
|
3,918
|
|
16,053
|
|
15,379
|
Professional and
outside services
|
2,932
|
|
1,855
|
|
11,156
|
|
8,296
|
Intangible assets
amortization
|
1,588
|
|
416
|
|
6,340
|
|
2,685
|
Foreclosed and
repossessed asset expenses
|
242
|
|
244
|
|
827
|
|
1,223
|
Foreclosed and
repossessed asset gains
|
(241)
|
|
(238)
|
|
(310)
|
|
(1,297)
|
Loan workout
expenses
|
775
|
|
685
|
|
3,173
|
|
3,507
|
Deposit
insurance
|
6,242
|
|
5,856
|
|
24,042
|
|
22,670
|
Other
expenses
|
18,178
|
|
16,158
|
|
65,919
|
|
66,639
|
|
143,272
|
|
127,459
|
|
553,579
|
|
498,571
|
Severance, contract,
and other
|
254
|
|
633
|
|
1,099
|
|
964
|
Acquisition
costs
|
(386)
|
|
396
|
|
141
|
|
540
|
Branch and facility
optimization
|
24
|
|
276
|
|
(265)
|
|
125
|
Provision for
litigation and settlements
|
—
|
|
1,400
|
|
—
|
|
1,400
|
Total non-interest
expense
|
143,164
|
|
130,164
|
|
554,554
|
|
501,600
|
Income before income
taxes
|
76,725
|
|
74,759
|
|
300,316
|
|
291,699
|
Income tax
expense
|
24,146
|
|
23,753
|
|
93,976
|
|
91,973
|
Net
income
|
52,579
|
|
51,006
|
|
206,340
|
|
199,726
|
Preferred stock
dividends
|
(2,024)
|
|
(2,639)
|
|
(8,711)
|
|
(10,556)
|
Net income
available to common shareholders
|
$
50,555
|
|
$ 48,367
|
|
$
197,629
|
|
$ 189,170
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
91,956
|
|
90,741
|
|
91,533
|
|
90,620
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$
0.54
|
|
$
2.17
|
|
$
2.10
|
Diluted
|
0.55
|
|
0.53
|
|
2.15
|
|
2.08
|
|
|
|
|
|
|
|
|
(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)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$ 145,504
|
|
$ 140,520
|
|
$ 135,694
|
|
$ 130,723
|
|
$ 132,604
|
Interest and
dividends on securities
|
52,365
|
|
51,121
|
|
50,844
|
|
51,679
|
|
50,921
|
Loans held for
sale
|
291
|
|
357
|
|
432
|
|
510
|
|
226
|
Total interest
income
|
198,160
|
|
191,998
|
|
186,970
|
|
182,912
|
|
183,751
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,476
|
|
11,480
|
|
11,533
|
|
11,542
|
|
11,322
|
Borrowings
|
13,344
|
|
12,508
|
|
11,926
|
|
11,606
|
|
11,781
|
Total interest
expense
|
24,820
|
|
23,988
|
|
23,459
|
|
23,148
|
|
23,103
|
Net interest
income
|
173,340
|
|
168,010
|
|
163,511
|
|
159,764
|
|
160,648
|
Provision for loan
and lease losses
|
13,800
|
|
13,000
|
|
12,750
|
|
9,750
|
|
9,500
|
Net interest
income after provision for loan and lease losses
|
159,540
|
|
155,010
|
|
150,761
|
|
150,014
|
|
151,148
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,231
|
|
35,229
|
|
34,493
|
|
32,625
|
|
25,928
|
Loan and lease
related fees
|
5,881
|
|
8,305
|
|
5,729
|
|
5,679
|
|
8,361
|
Wealth and investment
services
|
8,052
|
|
7,761
|
|
8,784
|
|
7,889
|
|
8,517
|
Mortgage banking
activities
|
2,276
|
|
1,441
|
|
2,517
|
|
1,561
|
|
977
|
Increase in cash
surrender value of life insurance policies
|
3,383
|
|
3,288
|
|
3,197
|
|
3,152
|
|
3,278
|
Net gain on
investment securities
|
80
|
|
—
|
|
486
|
|
43
|
|
1,121
|
Other
income
|
6,474
|
|
5,513
|
|
4,645
|
|
6,941
|
|
6,492
|
|
60,377
|
|
61,537
|
|
59,851
|
|
57,890
|
|
54,674
|
Loss on write-down of
investment securities to fair value
|
(28)
|
|
(82)
|
|
—
|
|
—
|
|
(899)
|
Total non-interest
income
|
60,349
|
|
61,455
|
|
59,851
|
|
57,890
|
|
53,775
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
79,232
|
|
73,378
|
|
74,043
|
|
70,864
|
|
71,220
|
Occupancy
|
11,573
|
|
11,987
|
|
11,680
|
|
13,596
|
|
11,518
|
Technology and
equipment expense
|
19,218
|
|
21,336
|
|
20,224
|
|
19,248
|
|
15,827
|
Marketing
|
3,533
|
|
4,099
|
|
4,245
|
|
4,176
|
|
3,918
|
Professional and
outside services
|
2,932
|
|
2,896
|
|
2,875
|
|
2,453
|
|
1,855
|
Intangible assets
amortization
|
1,588
|
|
1,621
|
|
1,843
|
|
1,288
|
|
416
|
Foreclosed and
repossessed asset expenses
|
242
|
|
270
|
|
146
|
|
169
|
|
244
|
Foreclosed and
repossessed asset (gains) losses
|
(241)
|
|
(68)
|
|
(537)
|
|
536
|
|
(238)
|
Loan workout
expenses
|
775
|
|
719
|
|
801
|
|
878
|
|
685
|
Deposit
insurance
|
6,242
|
|
6,067
|
|
5,492
|
|
6,241
|
|
5,856
|
Other
expenses
|
18,178
|
|
17,758
|
|
15,817
|
|
14,166
|
|
16,158
|
|
143,272
|
|
140,063
|
|
136,629
|
|
133,615
|
|
127,459
|
Severance, contract,
and other
|
254
|
|
34
|
|
521
|
|
290
|
|
633
|
Acquisition
costs
|
(386)
|
|
—
|
|
18
|
|
509
|
|
396
|
Branch and facility
optimization
|
24
|
|
(243)
|
|
278
|
|
(324)
|
|
276
|
Provision for
litigation and settlements
|
—
|
|
—
|
|
—
|
|
—
|
|
1,400
|
Total non-interest
expense
|
143,164
|
|
139,854
|
|
137,446
|
|
134,090
|
|
130,164
|
Income before income
taxes
|
76,725
|
|
76,611
|
|
73,166
|
|
73,814
|
|
74,759
|
Income tax
expense
|
24,146
|
|
25,075
|
|
20,663
|
|
24,092
|
|
23,753
|
Net
income
|
52,579
|
|
51,536
|
|
52,503
|
|
49,722
|
|
51,006
|
Preferred stock
dividends
|
(2,024)
|
|
(2,024)
|
|
(2,024)
|
|
(2,639)
|
|
(2,639)
|
Net income
available to common shareholders
|
$
50,555
|
|
$ 49,512
|
|
$ 50,479
|
|
$ 47,083
|
|
$ 48,367
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
91,956
|
|
92,007
|
|
91,302
|
|
90,841
|
|
90,741
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$ 0.54
|
|
$ 0.55
|
|
$ 0.52
|
|
$ 0.54
|
Diluted
|
0.55
|
|
0.54
|
|
0.55
|
|
0.52
|
|
0.53
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 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 and
leases
|
$ 15,452,576
|
|
$ 146,091
|
|
3.73 %
|
|
$ 13,715,522
|
|
$ 133,141
|
|
3.83 %
|
Investment securities
(a)
|
6,930,635
|
|
52,591
|
|
3.04
|
|
6,522,767
|
|
51,778
|
|
3.19
|
Federal Home Loan and
Federal Reserve Bank stock
|
186,367
|
|
1,862
|
|
3.96
|
|
177,324
|
|
1,206
|
|
2.70
|
Interest-bearing
deposits
|
87,019
|
|
63
|
|
0.28
|
|
43,864
|
|
28
|
|
0.25
|
Loans held for
sale
|
33,021
|
|
291
|
|
3.53
|
|
25,427
|
|
226
|
|
3.55
|
Total
interest-earning assets
|
22,689,618
|
|
$ 200,898
|
|
3.51 %
|
|
20,484,904
|
|
$ 186,379
|
|
3.61 %
|
Non-interest-earning
assets
|
1,723,575
|
|
|
|
|
|
1,545,268
|
|
|
|
|
Total
assets
|
$ 24,413,193
|
|
|
|
|
|
$ 22,030,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$ 3,693,704
|
|
$
—
|
|
—%
|
|
$ 3,364,956
|
|
$
—
|
|
—%
|
Savings, interest
checking, and money market
|
12,072,461
|
|
5,686
|
|
0.19
|
|
9,912,875
|
|
4,359
|
|
0.17
|
Certificates of
deposit
|
2,066,989
|
|
5,790
|
|
1.11
|
|
2,288,075
|
|
6,963
|
|
1.21
|
Total
deposits
|
17,833,154
|
|
11,476
|
|
0.26
|
|
15,565,906
|
|
11,322
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,132,700
|
|
4,150
|
|
1.43
|
|
1,282,805
|
|
4,514
|
|
1.38
|
Federal Home Loan
Bank advances
|
2,566,447
|
|
6,759
|
|
1.03
|
|
2,444,900
|
|
4,857
|
|
0.78
|
Long-term
debt
|
226,337
|
|
2,435
|
|
4.30
|
|
226,218
|
|
2,410
|
|
4.26
|
Total
borrowings
|
3,925,484
|
|
13,344
|
|
1.34
|
|
3,953,923
|
|
11,781
|
|
1.17
|
Total
interest-bearing liabilities
|
21,758,638
|
|
$ 24,820
|
|
0.45 %
|
|
19,519,829
|
|
$ 23,103
|
|
0.47 %
|
Non-interest-bearing
liabilities
|
232,352
|
|
|
|
|
|
169,503
|
|
|
|
|
Total
liabilities
|
21,990,990
|
|
|
|
|
|
19,689,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,299,493
|
|
|
|
|
|
2,189,191
|
|
|
|
|
Webster Financial
Corporation shareholders' equity
|
2,422,203
|
|
|
|
|
|
2,340,840
|
|
|
|
|
Total liabilities
and equity
|
$ 24,413,193
|
|
|
|
|
|
$ 22,030,172
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
176,078
|
|
|
|
|
|
163,276
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(2,738)
|
|
|
|
|
|
(2,628)
|
|
|
Net interest
income
|
|
|
$ 173,340
|
|
|
|
|
|
$ 160,648
|
|
|
Net interest
margin
|
|
|
|
|
3.08 %
|
|
|
|
|
|
3.17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 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 and
leases
|
$ 14,746,168
|
|
$ 554,632
|
|
3.76 %
|
|
$ 13,275,340
|
|
$ 513,705
|
|
3.87 %
|
Investment securities
(a)
|
6,846,297
|
|
207,675
|
|
3.04
|
|
6,446,799
|
|
210,721
|
|
3.28
|
Federal Home Loan and
Federal Reserve Bank stock
|
188,631
|
|
6,479
|
|
3.43
|
|
168,036
|
|
4,719
|
|
2.81
|
Interest-bearing
deposits
|
107,569
|
|
281
|
|
0.26
|
|
24,376
|
|
63
|
|
0.26
|
Loans held for
sale
|
41,101
|
|
1,590
|
|
3.87
|
|
22,642
|
|
857
|
|
3.78
|
Total
interest-earning assets
|
21,929,766
|
|
$ 770,657
|
|
3.52 %
|
|
19,937,193
|
|
$ 730,065
|
|
3.67 %
|
Non-interest-earning
assets
|
1,673,793
|
|
|
|
|
|
1,523,768
|
|
|
|
|
Total
assets
|
$ 23,603,559
|
|
|
|
|
|
$ 21,460,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$ 3,564,751
|
|
$
—
|
|
—%
|
|
$ 3,216,777
|
|
$
—
|
|
—%
|
Savings, interest
checking, and money market
|
11,846,049
|
|
21,472
|
|
0.18
|
|
9,863,703
|
|
17,800
|
|
0.18
|
Certificates of
deposit
|
2,138,778
|
|
24,559
|
|
1.15
|
|
2,280,668
|
|
26,362
|
|
1.16
|
Total
deposits
|
17,549,578
|
|
46,031
|
|
0.26
|
|
15,361,148
|
|
44,162
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,144,963
|
|
16,861
|
|
1.47
|
|
1,353,308
|
|
19,388
|
|
1.43
|
Federal Home Loan
Bank advances
|
2,084,496
|
|
22,858
|
|
1.10
|
|
2,038,749
|
|
16,909
|
|
0.83
|
Long-term
debt
|
226,292
|
|
9,665
|
|
4.27
|
|
252,368
|
|
10,041
|
|
3.98
|
Total
borrowings
|
3,455,751
|
|
49,384
|
|
1.43
|
|
3,644,425
|
|
46,338
|
|
1.27
|
Total
interest-bearing liabilities
|
21,005,329
|
|
$ 95,415
|
|
0.45 %
|
|
19,005,573
|
|
$ 90,500
|
|
0.48 %
|
Non-interest-bearing
liabilities
|
209,333
|
|
|
|
|
|
165,689
|
|
|
|
|
Total
liabilities
|
21,214,662
|
|
|
|
|
|
19,171,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
134,682
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,254,215
|
|
|
|
|
|
2,138,050
|
|
|
|
|
Webster Financial
Corporation shareholders' equity
|
2,388,897
|
|
|
|
|
|
2,289,699
|
|
|
|
|
Total liabilities
and equity
|
$ 23,603,559
|
|
|
|
|
|
$ 21,460,961
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
675,242
|
|
|
|
|
|
639,565
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(10,617)
|
|
|
|
|
|
(11,124)
|
|
|
Net interest
income
|
|
|
$ 664,625
|
|
|
|
|
|
$ 628,441
|
|
|
Net interest
margin
|
|
|
|
|
3.08 %
|
|
|
|
|
|
3.21 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan and Lease Balances
(unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Loan and Lease
Balances (actuals):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$ 3,562,784
|
|
$ 3,423,775
|
|
$ 3,310,863
|
|
$ 3,183,218
|
|
$ 3,087,940
|
Equipment
financing
|
600,526
|
|
552,850
|
|
545,441
|
|
543,636
|
|
537,751
|
Asset-based
lending
|
753,215
|
|
716,204
|
|
711,041
|
|
716,592
|
|
661,330
|
Commercial real
estate
|
3,991,649
|
|
3,857,155
|
|
3,770,252
|
|
3,663,071
|
|
3,554,428
|
Residential
mortgages
|
4,061,001
|
|
4,015,839
|
|
3,833,489
|
|
3,594,272
|
|
3,509,174
|
Consumer
|
2,622,998
|
|
2,568,009
|
|
2,520,970
|
|
2,480,270
|
|
2,457,345
|
Total continuing
portfolio
|
15,592,173
|
|
15,133,832
|
|
14,692,056
|
|
14,181,059
|
|
13,807,968
|
Allowance for loan
and lease losses
|
(167,626)
|
|
(165,341)
|
|
(159,501)
|
|
(152,825)
|
|
(149,813)
|
Total continuing
portfolio, net
|
15,424,547
|
|
14,968,491
|
|
14,532,555
|
|
14,028,234
|
|
13,658,155
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
National Construction
Lending Center (NCLC)
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Consumer
|
79,562
|
|
82,693
|
|
85,470
|
|
89,167
|
|
92,056
|
Total liquidating
portfolio
|
79,562
|
|
82,693
|
|
85,470
|
|
89,167
|
|
92,057
|
Allowance for loan
and lease losses
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
Total liquidating
portfolio, net
|
72,198
|
|
75,042
|
|
77,111
|
|
80,022
|
|
82,606
|
Total Loan and
Lease Balances (actuals)
|
15,671,735
|
|
15,216,525
|
|
14,777,526
|
|
14,270,226
|
|
13,900,025
|
Allowance for loan
and lease losses
|
(174,990)
|
|
(172,992)
|
|
(167,860)
|
|
(161,970)
|
|
(159,264)
|
Loans and Leases,
net
|
$ 15,496,745
|
|
$ 15,043,533
|
|
$ 14,609,666
|
|
$ 14,108,256
|
|
$ 13,740,761
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease
Balances (average):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$ 3,482,862
|
|
$ 3,363,074
|
|
$ 3,247,527
|
|
$ 3,096,762
|
|
$ 3,036,412
|
Equipment
financing
|
570,686
|
|
549,310
|
|
542,112
|
|
542,067
|
|
509,331
|
Asset-based
lending
|
721,662
|
|
712,811
|
|
709,985
|
|
675,218
|
|
647,952
|
Commercial real
estate
|
3,955,012
|
|
3,804,904
|
|
3,705,895
|
|
3,574,826
|
|
3,452,954
|
Residential
mortgages
|
4,039,341
|
|
3,950,654
|
|
3,711,096
|
|
3,546,098
|
|
3,483,444
|
Consumer
|
2,601,955
|
|
2,544,789
|
|
2,504,668
|
|
2,468,422
|
|
2,491,359
|
Total continuing
portfolio
|
15,371,518
|
|
14,925,542
|
|
14,421,283
|
|
13,903,393
|
|
13,621,452
|
Allowance for loan
and lease losses
|
(170,724)
|
|
(163,421)
|
|
(156,698)
|
|
(153,790)
|
|
(150,706)
|
Total continuing
portfolio, net
|
15,200,794
|
|
14,762,121
|
|
14,264,585
|
|
13,749,603
|
|
13,470,746
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Consumer
|
81,058
|
|
84,449
|
|
87,418
|
|
91,088
|
|
94,069
|
Total liquidating
portfolio
|
81,058
|
|
84,449
|
|
87,418
|
|
91,089
|
|
94,070
|
Allowance for loan
and lease losses
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
Total liquidating
portfolio, net
|
73,694
|
|
76,798
|
|
79,059
|
|
81,944
|
|
84,619
|
Total Loan and
Lease Balances (average)
|
15,452,576
|
|
15,009,991
|
|
14,508,701
|
|
13,994,482
|
|
13,715,522
|
Allowance for loan
and lease losses
|
(178,088)
|
|
(171,072)
|
|
(165,057)
|
|
(162,935)
|
|
(160,157)
|
Loans and Leases,
net
|
$ 15,274,488
|
|
$ 14,838,919
|
|
$ 14,343,644
|
|
$ 13,831,547
|
|
$ 13,555,365
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Nonperforming
loans and leases:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$ 27,086
|
|
$ 40,235
|
|
$ 43,081
|
|
$ 27,057
|
|
$ 6,436
|
Equipment
financing
|
706
|
|
403
|
|
301
|
|
285
|
|
518
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
20,211
|
|
23,828
|
|
26,893
|
|
25,814
|
|
18,675
|
Residential
mortgages
|
54,101
|
|
57,603
|
|
58,663
|
|
61,274
|
|
64,022
|
Consumer
|
33,972
|
|
32,969
|
|
34,236
|
|
33,696
|
|
35,770
|
Nonperforming loans
and leases - continuing portfolio
|
136,076
|
|
155,038
|
|
163,174
|
|
148,126
|
|
125,421
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
3,865
|
|
3,965
|
|
4,682
|
|
4,117
|
|
4,460
|
Total
nonperforming loans and leases
|
$ 139,941
|
|
$ 159,003
|
|
$ 167,856
|
|
$ 152,243
|
|
$ 129,881
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
—
|
|
$ —
|
|
$
—
|
|
$
—
|
|
$ 2,899
|
Repossessed
equipment
|
—
|
|
—
|
|
—
|
|
—
|
|
100
|
Residential
|
3,788
|
|
4,078
|
|
3,930
|
|
3,051
|
|
2,280
|
Consumer
|
1,241
|
|
1,306
|
|
1,039
|
|
2,252
|
|
1,237
|
Total continuing
portfolio
|
5,029
|
|
5,384
|
|
4,969
|
|
5,303
|
|
6,516
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Total liquidating
portfolio
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total other real
estate owned and repossessed assets
|
$ 5,029
|
|
$ 5,384
|
|
$ 4,969
|
|
$ 5,303
|
|
$ 6,516
|
Total
nonperforming assets
|
$ 144,970
|
|
$ 164,387
|
|
$ 172,825
|
|
$ 157,546
|
|
$ 136,397
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans and Leases
(unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$ 4,052
|
|
$ 4,415
|
|
$ 1,778
|
|
$ 3,992
|
|
$ 2,099
|
Equipment
financing
|
602
|
|
739
|
|
517
|
|
789
|
|
701
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
2,250
|
|
1,939
|
|
1,547
|
|
3,962
|
|
2,714
|
Residential
mortgages
|
15,032
|
|
15,222
|
|
12,315
|
|
13,966
|
|
17,216
|
Consumer
|
14,225
|
|
15,850
|
|
13,053
|
|
18,459
|
|
15,867
|
Past due 30-89 days -
continuing portfolio
|
36,161
|
|
38,165
|
|
29,210
|
|
41,168
|
|
38,597
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
1,036
|
|
953
|
|
1,299
|
|
1,820
|
|
1,658
|
Total past due
30-89 days
|
37,197
|
|
39,118
|
|
30,509
|
|
42,988
|
|
40,255
|
Past due 90 days
or more and accruing
|
2,051
|
|
2,228
|
|
1,923
|
|
2,109
|
|
2,087
|
Total past due
loans and leases
|
$ 39,248
|
|
$ 41,346
|
|
$ 32,432
|
|
$ 45,097
|
|
$ 42,342
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan and Lease Losses
(unaudited)
|
|
|
|
For the Three
Months Ended
|
(Dollars in
thousands)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Beginning
balance
|
$ 172,992
|
|
$ 167,860
|
|
$ 161,970
|
|
$ 159,264
|
|
$ 156,482
|
Provision
|
13,800
|
|
13,000
|
|
12,750
|
|
9,750
|
|
9,500
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
6,522
|
|
2,204
|
|
2,541
|
|
255
|
|
4,097
|
Equipment
financing
|
244
|
|
—
|
|
15
|
|
15
|
|
84
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
1,988
|
|
1,346
|
|
1,091
|
|
3,153
|
|
246
|
Residential
mortgages
|
1,504
|
|
1,588
|
|
1,461
|
|
1,953
|
|
1,346
|
Consumer
|
4,379
|
|
3,991
|
|
3,531
|
|
3,634
|
|
3,648
|
Charge-offs
continuing portfolio
|
14,637
|
|
9,129
|
|
8,639
|
|
9,010
|
|
9,421
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
Consumer
|
320
|
|
840
|
|
322
|
|
662
|
|
563
|
Charge-offs
liquidating portfolio
|
320
|
|
840
|
|
322
|
|
664
|
|
563
|
Total
charge-offs
|
14,957
|
|
9,969
|
|
8,961
|
|
9,674
|
|
9,984
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
441
|
|
558
|
|
527
|
|
989
|
|
1,258
|
Equipment
financing
|
1,083
|
|
32
|
|
102
|
|
143
|
|
702
|
Asset-based
lending
|
38
|
|
157
|
|
2
|
|
26
|
|
—
|
Commercial real
estate
|
325
|
|
69
|
|
52
|
|
202
|
|
217
|
Residential
mortgages
|
115
|
|
280
|
|
365
|
|
104
|
|
291
|
Consumer
|
948
|
|
852
|
|
849
|
|
821
|
|
636
|
Recoveries continuing
portfolio
|
2,950
|
|
1,948
|
|
1,897
|
|
2,285
|
|
3,104
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
1
|
|
1
|
|
4
|
|
4
|
|
5
|
Consumer
|
204
|
|
152
|
|
200
|
|
341
|
|
157
|
Recoveries
liquidating portfolio
|
205
|
|
153
|
|
204
|
|
345
|
|
162
|
Total
recoveries
|
3,155
|
|
2,101
|
|
2,101
|
|
2,630
|
|
3,266
|
Total net
charge-offs
|
11,802
|
|
7,868
|
|
6,860
|
|
7,044
|
|
6,718
|
Ending
balance
|
$ 174,990
|
|
$ 172,992
|
|
$ 167,860
|
|
$ 161,970
|
|
$ 159,264
|
WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates
its business based on the following ratios that utilize tangible
equity, a non-GAAP financial measure. Return on average tangible
common shareholders' equity measures the Company's net income
available to common shareholders, adjusted for the tax-affected
amortization of intangible assets, as a percentage of average
common shareholders' equity less goodwill and intangible assets
(excluding mortgage servicing rights). The tangible equity ratio
represents total ending shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
total assets less goodwill and intangible assets (excluding
mortgage servicing rights). The tangible common equity ratio
represents ending common shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
total assets less goodwill and intangible assets (excluding
mortgage servicing rights). Tangible book value per common share
represents ending common shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by
ending common shares outstanding.
The efficiency ratio, which measures the costs expended to generate
a dollar of revenue, is calculated excluding foreclosed property
expense, amortization of intangibles, gain or loss on securities,
and other non-recurring items. Accordingly, this is also a non-GAAP
financial measure.
The Company believes the use of these non-GAAP financial measures
provides additional clarity in assessing the results of the
Company. Other companies may define or calculate supplemental
financial data differently. See the tables below for
reconciliations of these non-GAAP financial measures with financial
measures defined by GAAP.
|
|
|
|
At or for the
Three Months Ended
|
(Dollars in
thousands, except per share data)
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income available to common shareholders to annualized net
income used in the return on average tangible common
shareholders' equity ratio
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders
|
$ 50,555
|
|
$
49,512
|
|
$ 50,479
|
|
$ 47,083
|
|
$
48,367
|
Amortization of
intangibles (tax-affected @ 35%)
|
1,032
|
|
1,054
|
|
1,198
|
|
837
|
|
270
|
Quarterly net income
adjusted for amortization of intangibles
|
51,587
|
|
50,566
|
|
51,677
|
|
47,920
|
|
48,637
|
Annualized net
income used in the return on average tangible common shareholders'
equity ratio
|
$ 206,348
|
|
$
202,264
|
|
$ 206,708
|
|
$ 191,680
|
|
$ 194,548
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$ 2,299,493
|
|
$ 2,280,960
|
|
$ 2,236,743
|
|
$ 2,198,254
|
|
$ 2,189,191
|
Average
goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(537,147)
|
|
(529,887)
|
Average intangible
assets (excluding mortgage servicing rights)
|
(40,225)
|
|
(41,845)
|
|
(43,538)
|
|
(39,559)
|
|
(2,862)
|
Average tangible
common shareholders' equity
|
$ 1,720,895
|
|
$ 1,700,742
|
|
$ 1,654,832
|
|
$ 1,621,548
|
|
$ 1,656,442
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$ 2,415,571
|
|
$ 2,402,545
|
|
$ 2,379,695
|
|
$ 2,355,575
|
|
$ 2,322,815
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
Tangible
shareholders' equity
|
$ 1,837,872
|
|
$ 1,823,258
|
|
$ 1,798,787
|
|
$ 1,772,824
|
|
$ 1,790,262
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end common shareholders' equity to period-end tangible
common shareholders' equity
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$ 2,292,861
|
|
$ 2,279,835
|
|
$ 2,256,985
|
|
$ 2,203,926
|
|
$ 2,171,166
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
Tangible common
shareholders' equity
|
$ 1,715,162
|
|
$ 1,700,548
|
|
$ 1,676,077
|
|
$ 1,621,175
|
|
$ 1,638,613
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 24,677,820
|
|
$ 24,069,782
|
|
$ 23,620,786
|
|
$ 23,106,688
|
|
$ 22,533,172
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
Tangible
assets
|
$ 24,100,121
|
|
$ 23,490,495
|
|
$ 23,039,878
|
|
$ 22,523,937
|
|
$ 22,000,619
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$ 2,292,861
|
|
$ 2,279,835
|
|
$ 2,256,985
|
|
$ 2,203,926
|
|
$ 2,171,166
|
Ending common shares
issued and outstanding (in thousands)
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
Book value per
common share
|
$
25.01
|
|
$
24.87
|
|
$
24.55
|
|
$
24.29
|
|
$
23.99
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$ 1,715,162
|
|
$ 1,700,548
|
|
$ 1,676,077
|
|
$ 1,621,175
|
|
$ 1,638,613
|
Ending common shares
issued and outstanding (in thousands)
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
|
90,512
|
Tangible book
value per common share
|
$
18.71
|
|
$
18.55
|
|
$
18.23
|
|
$
17.87
|
|
$
18.10
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
143,164
|
|
$
139,854
|
|
$ 137,446
|
|
$ 134,090
|
|
$ 130,164
|
Foreclosed property
expense
|
(242)
|
|
(270)
|
|
(146)
|
|
(169)
|
|
(244)
|
Intangible assets
amortization
|
(1,588)
|
|
(1,621)
|
|
(1,843)
|
|
(1,288)
|
|
(416)
|
Other
expense
|
349
|
|
277
|
|
(280)
|
|
(1,011)
|
|
(2,467)
|
Non-interest
expense used in the efficiency ratio
|
$
141,683
|
|
$
138,240
|
|
$ 135,177
|
|
$ 131,622
|
|
$ 127,037
|
|
|
|
|
|
|
|
|
|
|
Income used in the
efficiency ratio
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
$
173,340
|
|
$
168,010
|
|
$ 163,511
|
|
$ 159,764
|
|
$ 160,648
|
Fully
taxable-equivalent adjustment
|
2,738
|
|
2,596
|
|
2,626
|
|
2,657
|
|
2,628
|
Non-interest
income
|
60,349
|
|
61,455
|
|
59,851
|
|
57,890
|
|
53,775
|
Net gain on
investment securities
|
(80)
|
|
—
|
|
(486)
|
|
(43)
|
|
(1,121)
|
Other
|
303
|
|
324
|
|
242
|
|
242
|
|
1,085
|
Income used in the
efficiency ratio
|
$
236,650
|
|
$
232,385
|
|
$ 225,744
|
|
$ 220,510
|
|
$ 217,015
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2015-fourth-quarter-earnings-300207714.html
SOURCE Webster Financial Corporation