WATERBURY, Conn., April 19, 2016 /PRNewswire/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced earnings
applicable to common shareholders of $46.5
million, or $0.51 per diluted
share, for the quarter ended March 31,
2016 compared to $46.9
million, or $0.52 per diluted
share, for the quarter ended March 31,
2015.
"Solid quarterly results underscore Webster's sustained progress
in executing growth strategies that maximize value to customers and
shareholders. Both loans and revenue grew more than 10
percent, and total assets neared $25
billion," said James C.
Smith, chairman and chief executive officer. "Our recent
Boston expansion is gaining
momentum, as new deposits recently surpassed $100 million. Webster bankers continued to
excel in service to customers and communities."
Highlights for the first quarter of 2016 compared to the
first quarter of 2015:
- Record core revenue of $240.1
million, an increase of 10.3 percent, including a record
level of net interest income of $176.2
million.
- Loan growth of $1.6 billion, or
11.1 percent, with double-digit growth in commercial, commercial
real estate and residential mortgage loans.
- Deposit growth of $1.2 billion,
or 6.7 percent, primarily reflecting HSA Bank's strong organic
growth.
- Efficiency ratio of 61.29 percent would have been 58.92 percent
excluding the Boston expansion
related expenses.
- Annualized return on average tangible common shareholders'
equity of 10.97 percent.
"We continue to demonstrate expense discipline as evidenced by
our ability to deliver on our efficiency commitments," said
Glenn MacInnes, executive vice
president and chief financial officer. "Excluding Boston expansion
related expenses, the efficiency ratio has been at or below 60% for
twelve consecutive quarters."
Quarterly net interest income compared to the first quarter
of 2015:
- Net interest income was $176.2
million compared to $159.8
million.
- Net interest margin was 3.11 percent compared to 3.10 percent.
The yield on interest-earning assets increased by 3 basis points,
while the cost of funds increased by 1 basis point.
- Net interest margin increased 3 basis points on a
linked-quarter basis.
- Average interest-earning assets totaled $23.0 billion and grew by $1.9 billion, or 9.2 percent.
- Average loans totaled $15.8
billion and grew by $1.8
billion, or 12.9 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$15.6 million compared to
$13.8 million in the fourth quarter
of 2015 and $9.8 million a year
ago.
- Net charge-offs were $16.4
million compared to $11.8
million in the prior quarter and $7.0
million a year ago. The ratio of net charge-offs to average
loans on an annualized basis was 0.41 percent compared to 0.31
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 1.10 percent of total
loans compared to 1.12 percent at December
31, 2015 and 1.14 percent at March
31, 2015. The allowance for loan losses represented 124
percent of nonperforming loans compared to 125 percent at
December 31 and 106 percent a year
ago.
Quarterly non-interest income compared to the first quarter
of 2015:
- Total non-interest income was $64.0
million compared to $57.9
million, an increase of $6.1
million. Excluding securities gains and other-than-temporary
impairment charges, a year-over-year increase of $6.0 million in core non-interest income reflects
increases of $3.8 million in deposit
service fees primarily related to HSA Bank, $1.4 million in other income and $1.1 million in mortgage banking activities.
Quarterly non-interest expense compared to the first quarter
of 2015:
- Total non-interest expense was $151.7
million compared to $134.1
million, an increase of $17.6
million.
- Non-interest expense, excluding one-time costs, related
primarily to the upcoming closure of four banking center offices
increased $16.9 million with
$5.7 million of the increase related
to the Boston expansion and
$3.7 million related to growth at HSA
Bank. The remaining $7.5 million
increase reflects higher compensation expense and other
expenses.
Quarterly income taxes compared to the first quarter of
2015:
- Income tax expense was $24.2
million compared to $24.1
million. The effective tax rate was 33.2 percent compared to
32.6 percent, which included a $0.5
million net tax benefit specific to that period.
Investment securities:
- Total investment securities were $7.1
billion compared to $6.9
billion at both December 31,
2015 and a year ago. The carrying value of the
available-for-sale portfolio included $1.6
million of net unrealized gains compared to net unrealized
losses of $10.3 million at
December 31 and net unrealized gains
of $36.9 million a year ago, while
the carrying value of the held-to-maturity portfolio does not
reflect $82.2 million of net
unrealized gains compared to $38.5
million at December 31 and
$99.8 million a year ago.
Loans:
- Total loans were $15.9 billion
compared to $15.7 billion at
December 31, 2015 and $14.3 billion a year ago. Compared to
December 31, commercial, commercial
real estate, residential mortgage, and consumer loans increased by
$58.8 million, $55.3 million, $48.2
million, and $24.3 million,
respectively.
- Compared to a year ago, commercial, residential mortgage,
commercial real estate, and consumer loans increased by
$531.9 million, $515.0 million, $383.8
million, and $157.4 million,
respectively.
- Loan originations for portfolio were $899 million compared to $1.534 billion in the prior quarter and
$1.062 billion a year ago. In
addition, $73 million of residential
loans were originated for sale in the quarter compared to
$98 million in the prior quarter and
$87 million a year ago.
Asset quality:
- Total nonperforming loans were $140.7
million, or 0.89 percent of total loans, compared to
$139.9 million, or 0.89 percent, at
December 31, 2015 and $152.2 million, or 1.07 percent, a year ago.
Total paying nonperforming loans were $43.7
million compared to $48.7
million at December 31 and
$53.8 million a year ago.
- Past due loans were $55.7 million
compared to $39.2 million at
December 31 and $45.1 million a year ago. Loans past due 90 days
and still accruing increased $1.3
million from both the prior quarter and prior year.
Deposits and borrowings:
- Total deposits were $18.7 billion
compared to $18.0 billion at
December 31, 2015 and $17.5 billion a year ago. Core to total deposits
were 89.2 percent compared to 88.4 percent at December 31 and 87.4 percent a year ago. Loans to
deposits were 84.7 percent compared to 87.3 percent at December 31 and 81.3 percent a year ago.
- Total borrowings were $3.5
billion compared to $4.0
billion at December 31 and
$2.9 billion a year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 10.97
percent and 8.06 percent, respectively, compared to 11.82 percent
and 8.57 percent, respectively, in the first quarter of 2015.
- The tangible equity and tangible common equity ratios were 7.64
percent and 7.14 percent, respectively, compared to 7.89 percent
and 7.22 percent, respectively, at March 31,
2015. The common equity tier 1 risk-based capital ratio was
10.63 percent compared to 10.93 percent a year ago.
- Book value and tangible book value per common share were
$25.27 and $18.98, respectively, compared to $24.29 and $17.87,
respectively, a year ago.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $24.9 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 180 banking
centers and 352 ATMs. Webster also provides telephone banking,
mobile banking, and Internet banking. Webster Bank owns the asset-based lending firm
Webster Business Credit Corporation; the equipment finance firm
Webster Capital Finance Corporation; and HSA Bank, a division of
Webster Bank, which provides health
savings account trustee and administrative services. Webster Bank is a member of the FDIC and an
equal housing lender. For more information about Webster, including
past press releases and the latest annual report, visit the Webster
website at www.websterbank.com.
Conference Call
A conference call covering Webster's 2016 first quarter
earnings announcement will be held today, Tuesday, April 19, 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)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
48,617
|
|
$
52,579
|
|
$
51,536
|
|
$
52,503
|
|
$
49,722
|
Earnings applicable
to common shareholders
|
46,486
|
|
50,414
|
|
49,341
|
|
50,277
|
|
46,937
|
Earnings per diluted
common share
|
0.51
|
|
0.55
|
|
0.54
|
|
0.55
|
|
0.52
|
Return on average
assets
|
0.78 %
|
|
0.86 %
|
|
0.86 %
|
|
0.90 %
|
|
0.88 %
|
Return on average
tangible common shareholders' equity
|
10.97
|
|
11.99
|
|
11.89
|
|
12.49
|
|
11.82
|
Return on average
common shareholders' equity
|
8.06
|
|
8.79
|
|
8.68
|
|
9.03
|
|
8.57
|
Non-interest income
as a percentage of total revenue
|
26.66
|
|
25.82
|
|
26.78
|
|
26.80
|
|
26.60
|
Efficiency
ratio
|
61.29
|
|
59.87
|
|
59.49
|
|
59.88
|
|
59.69
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses
|
$
174,201
|
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
Nonperforming
assets
|
145,787
|
|
144,970
|
|
164,387
|
|
172,825
|
|
157,546
|
Allowance for loan
and lease losses / total loans and leases
|
1.10 %
|
|
1.12 %
|
|
1.14 %
|
|
1.14 %
|
|
1.14 %
|
Net charge-offs /
average loans and leases (annualized)
|
0.41
|
|
0.31
|
|
0.21
|
|
0.19
|
|
0.20
|
Nonperforming loans
and leases / total loans and leases
|
0.89
|
|
0.89
|
|
1.04
|
|
1.14
|
|
1.07
|
Nonperforming assets
/ total loans and leases plus OREO
|
0.92
|
|
0.92
|
|
1.08
|
|
1.17
|
|
1.10
|
Allowance for loan
and lease losses / nonperforming loans and leases
|
123.79
|
|
125.05
|
|
108.80
|
|
100.00
|
|
106.39
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
7.64 %
|
|
7.64 %
|
|
7.78 %
|
|
7.82 %
|
|
7.89 %
|
Tangible common
equity
|
7.14
|
|
7.13
|
|
7.26
|
|
7.28
|
|
7.22
|
Tier 1 risk-based
capital (a)
|
11.33
|
|
11.54
|
|
11.62
|
|
11.80
|
|
12.01
|
Total risk-based
capital (a)
|
12.80
|
|
12.92
|
|
13.02
|
|
13.21
|
|
13.44
|
Common equity tier 1
risk-based capital (a)
|
10.63
|
|
10.71
|
|
10.78
|
|
10.94
|
|
10.93
|
Shareholders' equity
/ total assets
|
9.78
|
|
9.80
|
|
10.01
|
|
10.09
|
|
10.22
|
Net interest
margin
|
3.11
|
|
3.08
|
|
3.04
|
|
3.05
|
|
3.10
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
2,315,257
|
|
$
2,292,861
|
|
$
2,279,835
|
|
$
2,256,985
|
|
$
2,203,926
|
Book value per common
share
|
25.27
|
|
25.01
|
|
24.87
|
|
24.55
|
|
24.29
|
Tangible book value
per common share
|
18.98
|
|
18.71
|
|
18.55
|
|
18.23
|
|
17.87
|
Common stock closing
price
|
35.90
|
|
37.19
|
|
35.63
|
|
39.55
|
|
37.05
|
Dividends declared
per common share
|
0.23
|
|
0.23
|
|
0.23
|
|
0.23
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
91,617
|
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
Weighted average
common shares outstanding - basic
|
91,328
|
|
91,419
|
|
91,458
|
|
90,713
|
|
90,251
|
Weighted average
common shares outstanding - diluted
|
91,809
|
|
91,956
|
|
92,007
|
|
91,302
|
|
90,841
|
|
|
|
|
|
|
|
|
|
|
(a) The ratios
presented are projected for March 31, 2016 and actual for the
remaining periods.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
(In
thousands)
|
March 31,
2016
|
|
December 31,
2015 (b)
|
|
March 31,
2015 (b)
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
198,174
|
|
$
199,693
|
|
$
163,495
|
Interest-bearing
deposits
|
27,805
|
|
155,907
|
|
119,297
|
Investment
securities:
|
|
|
|
|
|
Available for
sale
|
3,080,469
|
|
2,984,631
|
|
2,968,109
|
Held to
maturity
|
4,012,289
|
|
3,923,052
|
|
3,923,189
|
Total
securities
|
7,092,758
|
|
6,907,683
|
|
6,891,298
|
Loans held for sale
(a)
|
30,425
|
|
37,091
|
|
45,866
|
Loans and
Leases:
|
|
|
|
|
|
Commercial
|
4,975,332
|
|
4,916,525
|
|
4,443,446
|
Commercial real
estate
|
4,046,911
|
|
3,991,649
|
|
3,663,071
|
Residential
mortgages
|
4,109,243
|
|
4,061,001
|
|
3,594,272
|
Consumer
|
2,726,869
|
|
2,702,560
|
|
2,569,437
|
Total loans and
leases
|
15,858,355
|
|
15,671,735
|
|
14,270,226
|
Allowance for loan
and lease losses
|
(174,201)
|
|
(174,990)
|
|
(161,970)
|
Loans and leases,
net
|
15,684,154
|
|
15,496,745
|
|
14,108,256
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
188,347
|
|
188,347
|
|
193,290
|
Premises and
equipment, net
|
134,212
|
|
129,426
|
|
123,548
|
Goodwill and other
intangible assets, net
|
576,145
|
|
577,699
|
|
582,751
|
Cash surrender value
of life insurance policies
|
506,746
|
|
503,093
|
|
443,225
|
Deferred tax asset,
net
|
81,191
|
|
101,578
|
|
61,136
|
Accrued interest
receivable and other assets
|
415,552
|
|
345,625
|
|
319,922
|
Total
Assets
|
$ 24,935,509
|
|
$ 24,642,887
|
|
$ 23,052,084
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$
3,625,605
|
|
$
3,713,063
|
|
$
3,450,316
|
Interest-bearing
checking
|
2,421,692
|
|
2,369,971
|
|
2,267,350
|
Health savings
accounts
|
4,084,190
|
|
3,802,313
|
|
3,529,301
|
Money
market
|
2,319,588
|
|
1,933,460
|
|
2,114,300
|
Savings
|
4,244,383
|
|
4,047,817
|
|
3,978,655
|
Certificates of
deposit
|
1,727,934
|
|
1,762,847
|
|
1,905,943
|
Brokered certificates
of deposit
|
301,131
|
|
323,307
|
|
299,785
|
Total
deposits
|
18,724,523
|
|
17,952,778
|
|
17,545,650
|
Securities sold under
agreements to repurchase and other borrowings
|
910,149
|
|
1,151,400
|
|
1,083,877
|
Federal Home Loan
Bank advances
|
2,363,131
|
|
2,664,139
|
|
1,584,357
|
Long-term
debt
|
225,323
|
|
225,260
|
|
225,069
|
Accrued expenses and
other liabilities
|
274,416
|
|
233,739
|
|
257,556
|
Total
liabilities
|
22,497,542
|
|
22,227,316
|
|
20,696,509
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
122,710
|
|
151,649
|
Common shareholders'
equity
|
2,315,257
|
|
2,292,861
|
|
2,203,926
|
Webster Financial
Corporation shareholders' equity
|
2,437,967
|
|
2,415,571
|
|
2,355,575
|
Total Liabilities
and Equity
|
$ 24,935,509
|
|
$ 24,642,887
|
|
$ 23,052,084
|
|
|
|
|
|
|
(a) A policy
election was made effective in the first quarter 2016. As a result,
the March 31, 2016 balance includes loans originated for sale which
are accounted for under the fair value option of ASU
820.
|
|
(b) Amounts
revised for an immaterial correction for cash collateral relating
to derivatives, reclassified from cash and due from banks impacting
other assets and other liabilities.
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(In thousands,
except per share data)
|
|
|
|
|
2016
|
|
2015
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
|
|
|
|
$
149,808
|
|
$
130,723
|
Interest and
dividends on securities
|
|
|
|
|
52,254
|
|
51,679
|
Loans held for
sale
|
|
|
|
|
273
|
|
510
|
Total
interest income
|
|
|
|
|
202,335
|
|
182,912
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
12,299
|
|
11,542
|
Borrowings
|
|
|
|
|
13,884
|
|
11,606
|
Total
interest expense
|
|
|
|
|
26,183
|
|
23,148
|
Net
interest income
|
|
|
|
|
176,152
|
|
159,764
|
Provision for loan
and lease losses
|
|
|
|
|
15,600
|
|
9,750
|
Net
interest income after provision for loan and lease
losses
|
|
|
|
|
160,552
|
|
150,014
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit service
fees
|
|
|
|
|
36,382
|
|
32,625
|
Loan and lease
related fees
|
|
|
|
|
5,675
|
|
5,679
|
Wealth and investment
services
|
|
|
|
|
7,195
|
|
7,889
|
Mortgage banking
activities
|
|
|
|
|
2,629
|
|
1,561
|
Increase in cash
surrender value of life insurance policies
|
|
|
|
|
3,653
|
|
3,152
|
Net gain on
investment securities
|
|
|
|
|
320
|
|
43
|
Other
income
|
|
|
|
|
8,319
|
|
6,941
|
|
|
|
|
|
64,173
|
|
57,890
|
Loss on write-down of
investment securities to fair value
|
|
|
|
|
(149)
|
|
—
|
Total
non-interest income
|
|
|
|
|
64,024
|
|
57,890
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
80,309
|
|
70,864
|
Occupancy
|
|
|
|
|
14,253
|
|
13,596
|
Technology and
equipment expense
|
|
|
|
|
19,235
|
|
19,248
|
Marketing
|
|
|
|
|
4,924
|
|
4,176
|
Professional and
outside services
|
|
|
|
|
2,811
|
|
2,453
|
Intangible assets
amortization
|
|
|
|
|
1,554
|
|
1,288
|
Loan workout
expenses
|
|
|
|
|
965
|
|
878
|
Deposit
insurance
|
|
|
|
|
6,786
|
|
6,241
|
Other
expenses
|
|
|
|
|
19,688
|
|
14,871
|
|
|
|
|
|
150,525
|
|
133,615
|
Severance, contract,
and other
|
|
|
|
|
401
|
|
290
|
Acquisition
costs
|
|
|
|
|
—
|
|
509
|
Branch and facility
optimization
|
|
|
|
|
816
|
|
(324)
|
Total
non-interest expense
|
|
|
|
|
151,742
|
|
134,090
|
Income before income
taxes
|
|
|
|
|
72,834
|
|
73,814
|
Income tax
expense
|
|
|
|
|
24,217
|
|
24,092
|
Net
income
|
|
|
|
|
48,617
|
|
49,722
|
Preferred
stock dividends and other
|
|
|
|
|
(2,131)
|
|
(2,785)
|
Earnings
applicable to common shareholders
|
|
|
|
|
$
46,486
|
|
$
46,937
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
|
|
|
91,809
|
|
90,841
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
0.51
|
|
$
0.52
|
Diluted
|
|
|
|
|
0.51
|
|
0.52
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Consolidated Statements of Income
(unaudited)
|
|
|
|
|
Three Months
Ended
|
(In thousands,
except per share data)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
149,808
|
|
$
145,504
|
|
$
140,520
|
|
$
135,694
|
|
$
130,723
|
Interest and
dividends on securities
|
52,254
|
|
52,365
|
|
51,121
|
|
50,844
|
|
51,679
|
Loans held for
sale
|
273
|
|
291
|
|
357
|
|
432
|
|
510
|
Total
interest income
|
202,335
|
|
198,160
|
|
191,998
|
|
186,970
|
|
182,912
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
12,299
|
|
11,476
|
|
11,480
|
|
11,533
|
|
11,542
|
Borrowings
|
13,884
|
|
13,344
|
|
12,508
|
|
11,926
|
|
11,606
|
Total
interest expense
|
26,183
|
|
24,820
|
|
23,988
|
|
23,459
|
|
23,148
|
Net
interest income
|
176,152
|
|
173,340
|
|
168,010
|
|
163,511
|
|
159,764
|
Provision for loan
and lease losses
|
15,600
|
|
13,800
|
|
13,000
|
|
12,750
|
|
9,750
|
Net
interest income after provision for loan and lease
losses
|
160,552
|
|
159,540
|
|
155,010
|
|
150,761
|
|
150,014
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
36,382
|
|
34,231
|
|
35,229
|
|
34,493
|
|
32,625
|
Loan and lease
related fees
|
5,675
|
|
5,881
|
|
8,305
|
|
5,729
|
|
5,679
|
Wealth and investment
services
|
7,195
|
|
8,052
|
|
7,761
|
|
8,784
|
|
7,889
|
Mortgage banking
activities
|
2,629
|
|
2,276
|
|
1,441
|
|
2,517
|
|
1,561
|
Increase in cash
surrender value of life insurance policies
|
3,653
|
|
3,383
|
|
3,288
|
|
3,197
|
|
3,152
|
Net gain on
investment securities
|
320
|
|
80
|
|
—
|
|
486
|
|
43
|
Other
income
|
8,319
|
|
6,474
|
|
5,513
|
|
4,645
|
|
6,941
|
|
64,173
|
|
60,377
|
|
61,537
|
|
59,851
|
|
57,890
|
Loss on write-down of
investment securities to fair value
|
(149)
|
|
(28)
|
|
(82)
|
|
—
|
|
—
|
Total
non-interest income
|
64,024
|
|
60,349
|
|
61,455
|
|
59,851
|
|
57,890
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
80,309
|
|
79,232
|
|
73,378
|
|
74,043
|
|
70,864
|
Occupancy
|
14,253
|
|
11,573
|
|
11,987
|
|
11,680
|
|
13,596
|
Technology and
equipment expense
|
19,235
|
|
19,218
|
|
21,336
|
|
20,224
|
|
19,248
|
Marketing
|
4,924
|
|
3,533
|
|
4,099
|
|
4,245
|
|
4,176
|
Professional and
outside services
|
2,811
|
|
2,932
|
|
2,896
|
|
2,875
|
|
2,453
|
Intangible assets
amortization
|
1,554
|
|
1,588
|
|
1,621
|
|
1,843
|
|
1,288
|
Loan workout
expenses
|
965
|
|
775
|
|
719
|
|
801
|
|
878
|
Deposit
insurance
|
6,786
|
|
6,242
|
|
6,067
|
|
5,492
|
|
6,241
|
Other
expenses
|
19,688
|
|
18,179
|
|
17,960
|
|
15,426
|
|
14,871
|
|
150,525
|
|
143,272
|
|
140,063
|
|
136,629
|
|
133,615
|
Severance, contract,
and other
|
401
|
|
254
|
|
34
|
|
521
|
|
290
|
Acquisition
costs
|
—
|
|
(386)
|
|
—
|
|
18
|
|
509
|
Branch and facility
optimization
|
816
|
|
24
|
|
(243)
|
|
278
|
|
(324)
|
Total
non-interest expense
|
151,742
|
|
143,164
|
|
139,854
|
|
137,446
|
|
134,090
|
Income before income
taxes
|
72,834
|
|
76,725
|
|
76,611
|
|
73,166
|
|
73,814
|
Income tax
expense
|
24,217
|
|
24,146
|
|
25,075
|
|
20,663
|
|
24,092
|
Net
income
|
48,617
|
|
52,579
|
|
51,536
|
|
52,503
|
|
49,722
|
Preferred stock dividends and other
|
(2,131)
|
|
(2,165)
|
|
(2,195)
|
|
(2,226)
|
|
(2,785)
|
Earnings applicable to common shareholders
|
$
46,486
|
|
$
50,414
|
|
$
49,341
|
|
$
50,277
|
|
$
46,937
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
91,809
|
|
91,956
|
|
92,007
|
|
91,302
|
|
90,841
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.51
|
|
$
0.55
|
|
$
0.54
|
|
$
0.55
|
|
$
0.52
|
Diluted
|
0.51
|
|
0.55
|
|
0.54
|
|
0.55
|
|
0.52
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Average
balance
|
|
Interest
|
|
Fully tax- equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 15,798,897
|
|
$
150,536
|
|
3.79 %
|
|
$ 13,994,482
|
|
$
131,254
|
|
3.76 %
|
Investment securities
(a)
|
6,895,407
|
|
53,012
|
|
3.07
|
|
6,695,978
|
|
52,426
|
|
3.15
|
Federal Home Loan and
Federal Reserve Bank stock
|
188,347
|
|
1,417
|
|
3.03
|
|
193,290
|
|
1,316
|
|
2.76
|
Interest-bearing
deposits
|
57,337
|
|
72
|
|
0.49
|
|
99,879
|
|
63
|
|
0.25
|
Loans held for
sale
|
26,623
|
|
273
|
|
4.10
|
|
40,666
|
|
510
|
|
5.02
|
Total
interest-earning assets
|
22,966,611
|
|
$
205,310
|
|
3.56 %
|
|
21,024,295
|
|
$
185,569
|
|
3.54 %
|
Non-interest-earning
assets
|
1,826,026
|
|
|
|
|
|
1,619,996
|
|
|
|
|
Total
assets
|
$ 24,792,637
|
|
|
|
|
|
$ 22,644,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,665,928
|
|
$
—
|
|
—%
|
|
$
3,454,242
|
|
$
—
|
|
—%
|
Savings, interest
checking, and money market
|
12,761,677
|
|
6,615
|
|
0.21
|
|
11,541,135
|
|
4,836
|
|
0.17
|
Certificates of
deposit
|
2,057,650
|
|
5,684
|
|
1.11
|
|
2,242,857
|
|
6,706
|
|
1.21
|
Total
deposits
|
18,485,255
|
|
12,299
|
|
0.27
|
|
17,238,234
|
|
11,542
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,048,997
|
|
4,173
|
|
1.57
|
|
1,199,025
|
|
4,387
|
|
1.46
|
Federal Home Loan
Bank advances
|
2,337,746
|
|
7,247
|
|
1.23
|
|
1,432,717
|
|
4,821
|
|
1.35
|
Long-term
debt
|
226,191
|
|
2,464
|
|
4.36
|
|
226,248
|
|
2,398
|
|
4.24
|
Total
borrowings
|
3,612,934
|
|
13,884
|
|
1.52
|
|
2,857,990
|
|
11,606
|
|
1.62
|
Total
interest-bearing liabilities
|
22,098,189
|
|
$
26,183
|
|
0.47 %
|
|
20,096,224
|
|
$
23,148
|
|
0.46 %
|
Non-interest-bearing
liabilities
|
258,713
|
|
|
|
|
|
198,164
|
|
|
|
|
Total
liabilities
|
22,356,902
|
|
|
|
|
|
20,294,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,313,025
|
|
|
|
|
|
2,198,254
|
|
|
|
|
Webster Financial
Corporation shareholders' equity
|
2,435,735
|
|
|
|
|
|
2,349,903
|
|
|
|
|
Total liabilities
and equity
|
$ 24,792,637
|
|
|
|
|
|
$ 22,644,291
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
179,127
|
|
|
|
|
|
162,421
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(2,975)
|
|
|
|
|
|
(2,657)
|
|
|
Net interest
income
|
|
|
$
176,152
|
|
|
|
|
|
$
159,764
|
|
|
Net interest
margin
|
|
|
|
|
3.11 %
|
|
|
|
|
|
3.10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan and Lease Balances
(unaudited)
|
|
|
|
(Dollars in
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
Loan and Lease
Balances (actuals):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,607,176
|
|
$
3,562,784
|
|
$
3,423,775
|
|
$
3,310,863
|
|
$
3,183,218
|
Equipment
financing
|
596,572
|
|
600,526
|
|
552,850
|
|
545,441
|
|
543,636
|
Asset-based
lending
|
771,584
|
|
753,215
|
|
716,204
|
|
711,041
|
|
716,592
|
Commercial real
estate
|
4,046,911
|
|
3,991,649
|
|
3,857,155
|
|
3,770,252
|
|
3,663,071
|
Residential
mortgages
|
4,109,243
|
|
4,061,001
|
|
4,015,839
|
|
3,833,489
|
|
3,594,272
|
Consumer
|
2,649,644
|
|
2,622,998
|
|
2,568,009
|
|
2,520,970
|
|
2,480,270
|
Total continuing
portfolio
|
15,781,130
|
|
15,592,173
|
|
15,133,832
|
|
14,692,056
|
|
14,181,059
|
Allowance for loan
and lease losses
|
(167,769)
|
|
(167,626)
|
|
(165,341)
|
|
(159,501)
|
|
(152,825)
|
Total continuing
portfolio, net
|
15,613,361
|
|
15,424,547
|
|
14,968,491
|
|
14,532,555
|
|
14,028,234
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
77,225
|
|
79,562
|
|
82,693
|
|
85,470
|
|
89,167
|
Allowance for loan
and lease losses
|
(6,432)
|
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
Total liquidating
portfolio, net
|
70,793
|
|
72,198
|
|
75,042
|
|
77,111
|
|
80,022
|
Total Loan and
Lease Balances (actuals)
|
15,858,355
|
|
15,671,735
|
|
15,216,525
|
|
14,777,526
|
|
14,270,226
|
Allowance for loan
and lease losses
|
(174,201)
|
|
(174,990)
|
|
(172,992)
|
|
(167,860)
|
|
(161,970)
|
Loans and Leases,
net
|
$ 15,684,154
|
|
$ 15,496,745
|
|
$ 15,043,533
|
|
$ 14,609,666
|
|
$ 14,108,256
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease
Balances (average):
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,605,483
|
|
$
3,482,862
|
|
$
3,363,074
|
|
$
3,247,527
|
|
$
3,096,762
|
Equipment
financing
|
600,123
|
|
570,686
|
|
549,310
|
|
542,112
|
|
542,067
|
Asset-based
lending
|
750,328
|
|
721,662
|
|
712,811
|
|
709,985
|
|
675,218
|
Commercial real
estate
|
4,019,260
|
|
3,955,012
|
|
3,804,904
|
|
3,705,895
|
|
3,574,826
|
Residential
mortgages
|
4,101,396
|
|
4,039,341
|
|
3,950,654
|
|
3,711,096
|
|
3,546,098
|
Consumer
|
2,643,792
|
|
2,601,955
|
|
2,544,789
|
|
2,504,668
|
|
2,468,422
|
Total continuing
portfolio
|
15,720,382
|
|
15,371,518
|
|
14,925,542
|
|
14,421,283
|
|
13,903,393
|
Allowance for loan
and lease losses
|
(173,479)
|
|
(170,724)
|
|
(163,421)
|
|
(156,698)
|
|
(153,790)
|
Total continuing
portfolio, net
|
15,546,903
|
|
15,200,794
|
|
14,762,121
|
|
14,264,585
|
|
13,749,603
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
National Construction
Lending Center (NCLC)
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Consumer
|
78,515
|
|
81,058
|
|
84,449
|
|
87,418
|
|
91,088
|
Total liquidating
portfolio
|
78,515
|
|
81,058
|
|
84,449
|
|
87,418
|
|
91,089
|
Allowance for loan
and lease losses
|
(6,432)
|
|
(7,364)
|
|
(7,651)
|
|
(8,359)
|
|
(9,145)
|
Total liquidating
portfolio, net
|
72,083
|
|
73,694
|
|
76,798
|
|
79,059
|
|
81,944
|
Total Loan and
Lease Balances (average)
|
15,798,897
|
|
15,452,576
|
|
15,009,991
|
|
14,508,701
|
|
13,994,482
|
Allowance for loan
and lease losses
|
(179,911)
|
|
(178,088)
|
|
(171,072)
|
|
(165,057)
|
|
(162,935)
|
Loans and Leases,
net
|
$ 15,618,986
|
|
$ 15,274,488
|
|
$ 14,838,919
|
|
$ 14,343,644
|
|
$ 13,831,547
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
Nonperforming
loans and leases:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
32,517
|
|
$
27,086
|
|
$
40,235
|
|
$
43,081
|
|
$
27,057
|
Equipment
financing
|
868
|
|
706
|
|
403
|
|
301
|
|
285
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
15,381
|
|
20,211
|
|
23,828
|
|
26,893
|
|
25,814
|
Residential
mortgages
|
53,700
|
|
54,101
|
|
57,603
|
|
58,663
|
|
61,274
|
Consumer
|
34,581
|
|
33,972
|
|
32,969
|
|
34,236
|
|
33,696
|
Nonperforming loans
and leases - continuing portfolio
|
137,047
|
|
136,076
|
|
155,038
|
|
163,174
|
|
148,126
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
3,675
|
|
3,865
|
|
3,965
|
|
4,682
|
|
4,117
|
Total
nonperforming loans and leases
|
$
140,722
|
|
$
139,941
|
|
$
159,003
|
|
$
167,856
|
|
$
152,243
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Repossessed
equipment
|
$
342
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
Residential
|
3,329
|
|
3,788
|
|
4,078
|
|
3,930
|
|
3,051
|
Consumer
|
1,394
|
|
1,241
|
|
1,306
|
|
1,039
|
|
2,252
|
Total other real
estate owned and repossessed assets
|
$
5,065
|
|
$
5,029
|
|
$
5,384
|
|
$
4,969
|
|
$
5,303
|
Total
nonperforming assets
|
$
145,787
|
|
$
144,970
|
|
$
164,387
|
|
$
172,825
|
|
$
157,546
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans and Leases
(unaudited)
|
|
|
|
|
(Dollars in
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
7,265
|
|
$
4,052
|
|
$
4,415
|
|
$
1,778
|
|
$
3,992
|
Equipment
financing
|
594
|
|
602
|
|
739
|
|
517
|
|
789
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
20,730
|
|
2,250
|
|
1,939
|
|
1,547
|
|
3,962
|
Residential
mortgages
|
10,456
|
|
15,032
|
|
15,222
|
|
12,315
|
|
13,966
|
Consumer
|
12,414
|
|
14,225
|
|
15,850
|
|
13,053
|
|
18,459
|
Past due 30-89 days -
continuing portfolio
|
51,459
|
|
36,161
|
|
38,165
|
|
29,210
|
|
41,168
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
819
|
|
1,036
|
|
953
|
|
1,299
|
|
1,820
|
Total past due
30-89 days
|
52,278
|
|
37,197
|
|
39,118
|
|
30,509
|
|
42,988
|
Past due 90 days
or more and accruing
|
3,391
|
|
2,051
|
|
2,228
|
|
1,923
|
|
2,109
|
Total past due
loans and leases
|
$
55,669
|
|
$
39,248
|
|
$
41,346
|
|
$
32,432
|
|
$
45,097
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan and Lease Losses
(unaudited)
|
|
|
|
|
Three Months
Ended
|
(Dollars in
thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
Beginning
balance
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
Provision
|
15,600
|
|
13,800
|
|
13,000
|
|
12,750
|
|
9,750
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
11,208
|
|
6,522
|
|
2,204
|
|
2,541
|
|
255
|
Equipment
financing
|
151
|
|
244
|
|
—
|
|
15
|
|
15
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
1,526
|
|
1,988
|
|
1,346
|
|
1,091
|
|
3,153
|
Residential
mortgages
|
1,594
|
|
1,504
|
|
1,588
|
|
1,461
|
|
1,953
|
Consumer
|
4,101
|
|
4,379
|
|
3,991
|
|
3,531
|
|
3,634
|
Charge-offs
continuing portfolio
|
18,580
|
|
14,637
|
|
9,129
|
|
8,639
|
|
9,010
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
Consumer
|
320
|
|
320
|
|
840
|
|
322
|
|
662
|
Charge-offs
liquidating portfolio
|
320
|
|
320
|
|
840
|
|
322
|
|
664
|
Total
charge-offs
|
18,900
|
|
14,957
|
|
9,969
|
|
8,961
|
|
9,674
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
455
|
|
441
|
|
558
|
|
527
|
|
989
|
Equipment
financing
|
45
|
|
1,083
|
|
32
|
|
102
|
|
143
|
Asset-based
lending
|
2
|
|
38
|
|
157
|
|
2
|
|
26
|
Commercial real
estate
|
74
|
|
325
|
|
69
|
|
52
|
|
202
|
Residential
mortgages
|
720
|
|
115
|
|
280
|
|
365
|
|
104
|
Consumer
|
905
|
|
948
|
|
852
|
|
849
|
|
821
|
Recoveries continuing
portfolio
|
2,201
|
|
2,950
|
|
1,948
|
|
1,897
|
|
2,285
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
1
|
|
1
|
|
1
|
|
4
|
|
4
|
Consumer
|
309
|
|
204
|
|
152
|
|
200
|
|
341
|
Recoveries
liquidating portfolio
|
310
|
|
205
|
|
153
|
|
204
|
|
345
|
Total
recoveries
|
2,511
|
|
3,155
|
|
2,101
|
|
2,101
|
|
2,630
|
Total net
charge-offs
|
16,389
|
|
11,802
|
|
7,868
|
|
6,860
|
|
7,044
|
Ending
balance
|
$
174,201
|
|
$
174,990
|
|
$
172,992
|
|
$
167,860
|
|
$
161,970
|
|
|
|
|
|
|
|
|
|
|
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
|
(In thousands,
except per share data)
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income to annualized net income used in the return on average
tangible
common shareholders' equity ratio
|
|
|
|
|
|
|
|
|
|
Net income
|
$
48,617
|
|
$
52,579
|
|
$
51,536
|
|
$
52,503
|
|
$
49,722
|
Preferred stock
dividends
|
(2,024)
|
|
(2,024)
|
|
(2,024)
|
|
(2,024)
|
|
(2,639)
|
Amortization of
intangibles (tax-affected @ 35%)
|
1,010
|
|
1,032
|
|
1,054
|
|
1,198
|
|
837
|
Quarterly net income adjusted for amortization of
intangibles
|
47,603
|
|
51,587
|
|
50,566
|
|
51,677
|
|
47,920
|
Annualized net income used in the return on average tangible
common
shareholders' equity ratio
|
$
190,412
|
|
$
206,348
|
|
$
202,264
|
|
$
206,708
|
|
$
191,680
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$
2,313,025
|
|
$
2,299,493
|
|
$
2,280,960
|
|
$
2,236,743
|
|
$
2,198,254
|
Average
goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(537,147)
|
Average intangible
assets (excluding mortgage servicing rights)
|
(38,656)
|
|
(40,225)
|
|
(41,845)
|
|
(43,538)
|
|
(39,559)
|
Average tangible common shareholders' equity
|
$
1,735,996
|
|
$
1,720,895
|
|
$
1,700,742
|
|
$
1,654,832
|
|
$
1,621,548
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,437,967
|
|
$
2,415,571
|
|
$
2,402,545
|
|
$
2,379,695
|
|
$
2,355,575
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
Intangible assets
(excluding mortgage servicing rights)
|
(37,772)
|
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
Tangible shareholders' equity
|
$
1,861,822
|
|
$
1,837,872
|
|
$
1,823,258
|
|
$
1,798,787
|
|
$
1,772,824
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end common shareholders' equity to period-end tangible
common shareholders' equity
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$
2,315,257
|
|
$
2,292,861
|
|
$
2,279,835
|
|
$
2,256,985
|
|
$
2,203,926
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
Intangible assets
(excluding mortgage servicing rights)
|
(37,772)
|
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
Tangible common shareholders' equity
|
$
1,739,112
|
|
$
1,715,162
|
|
$
1,700,548
|
|
$
1,676,077
|
|
$
1,621,175
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 24,935,509
|
|
$ 24,642,887
|
|
$ 24,008,834
|
|
$ 23,595,076
|
|
$ 23,052,084
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
|
(538,373)
|
Intangible assets
(excluding mortgage servicing rights)
|
(37,772)
|
|
(39,326)
|
|
(40,914)
|
|
(42,535)
|
|
(44,378)
|
Tangible assets
|
$ 24,359,364
|
|
$ 24,065,188
|
|
$ 23,429,547
|
|
$ 23,014,168
|
|
$ 22,469,333
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$
2,315,257
|
|
$
2,292,861
|
|
$
2,279,835
|
|
$
2,256,985
|
|
$
2,203,926
|
Ending common shares
issued and outstanding
|
91,617
|
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
Book
value per common share
|
$
25.27
|
|
$
25.01
|
|
$
24.87
|
|
$
24.55
|
|
$
24.29
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$
1,739,112
|
|
$
1,715,162
|
|
$
1,700,548
|
|
$
1,676,077
|
|
$
1,621,175
|
Ending common shares
issued and outstanding
|
91,617
|
|
91,677
|
|
91,663
|
|
91,919
|
|
90,715
|
Tangible book value per common share
|
$
18.98
|
|
$
18.71
|
|
$
18.55
|
|
$
18.23
|
|
$
17.87
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
151,742
|
|
$
143,164
|
|
$
139,854
|
|
$
137,446
|
|
$
134,090
|
Foreclosed property
activities
|
158
|
|
(1)
|
|
(202)
|
|
391
|
|
(705)
|
Intangible assets
amortization
|
(1,554)
|
|
(1,588)
|
|
(1,621)
|
|
(1,843)
|
|
(1,288)
|
Other
expense
|
(1,217)
|
|
108
|
|
209
|
|
(817)
|
|
(475)
|
Non-interest expense used in the efficiency ratio
|
$
149,129
|
|
$
141,683
|
|
$
138,240
|
|
$
135,177
|
|
$
131,622
|
|
|
|
|
|
|
|
|
|
|
Income used in the
efficiency ratio
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
$
176,152
|
|
$
173,340
|
|
$
168,010
|
|
$
163,511
|
|
$
159,764
|
Fully
taxable-equivalent adjustment ("FTE")
|
2,975
|
|
2,738
|
|
2,596
|
|
2,626
|
|
2,657
|
Non-interest
income
|
64,024
|
|
60,349
|
|
61,455
|
|
59,851
|
|
57,890
|
Net gain on
investment securities
|
(320)
|
|
(80)
|
|
—
|
|
(486)
|
|
(43)
|
Other
|
481
|
|
303
|
|
324
|
|
242
|
|
242
|
Income used in the efficiency ratio
|
$
243,312
|
|
$
236,650
|
|
$
232,385
|
|
$
225,744
|
|
$
220,510
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2016-first-quarter-earnings-300253524.html
SOURCE Webster Financial Corporation