WATERBURY, Conn., July 16, 2015 /PRNewswire/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced record net
income available to common shareholders of $50.5 million, or $0.55 per diluted share, for the quarter ended
June 30, 2015 compared to
$45.2 million, or $0.50 per diluted share, for the quarter ended
June 30, 2014.
"We're pleased to report another strong quarterly performance,
marked by record net income and record loan originations led by
business loans and residential mortgages," said James C. Smith, chairman and chief executive
officer. "It's clear our strategic investments are delivering value
for customers and shareholders alike, as Webster bankers excel in
service to our customers and communities. Our progress and success
are made possible by the continuing confidence of our customers,
which we deeply appreciate."
Highlights for the second quarter of 2015 compared to the
second quarter of 2014:
- Record quarterly net income of $52.5
million, including a net tax benefit of $3.7 million.
- Overall loan growth of $1.5
billion, or 11.3 percent, with double-digit growth in
commercial, commercial real estate and residential mortgage
loans.
- Increase in the allowance for loan losses of $13.0 million, or 8.4 percent.
- Deposit growth of $2.1 billion,
or 13.8 percent, primarily reflecting HSA Bank's strong organic
growth and its recent acquisition.
- Record core revenue of $222.9
million increased 9.9 percent and contributed to core
pre-provision net revenue of $85.9
million, or a 6.8 percent improvement.
- Record net interest income of $163.5
million.
- Efficiency ratio of 59.94 percent represents the ninth
consecutive quarter at or below 60 percent.
- Annualized return on average tangible common shareholders'
equity of 12.49 percent.
"Webster continued to demonstrate expense discipline during the
quarter, maintaining an efficiency ratio at or below 60 percent for
the ninth consecutive quarter while investing in growth
opportunities," said Glenn MacInnes,
executive vice president and chief financial officer. "Our balance
sheet is well-positioned for the anticipated rise in interest rates
as the economy continues to strengthen."
Quarterly net interest income compared to the second quarter
of 2014:
- Net interest income was $163.5
million compared to $155.1
million.
- Net interest margin was 3.05 percent compared to 3.19 percent.
The yield on interest-earning assets declined by 16 basis points,
while the cost of funds declined by 2 basis points.
- Average interest-earning assets totaled $21.7 billion and grew by $2.0 billion, or 10.1 percent.
- Average loans grew by $1.4
billion, or 10.5 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$12.75 million compared to
$9.75 million in the first quarter
and $9.25 million a year ago. The
increase compared to each period reflects ongoing growth in the
loan portfolio.
- Net charge-offs were $6.9 million
compared to $7.0 million in the prior
quarter and $8.0 million a year ago.
The ratio of net charge-offs to average loans on an annualized
basis was 0.19 percent compared to 0.20 percent in the prior
quarter and 0.24 percent a year ago.
- The allowance for loan losses represented 1.14 percent of total
loans compared to 1.14 percent at March 31,
2015 and 1.17 percent at June 30,
2014. The allowance for loan losses represented 100 percent
of nonperforming loans compared to 106 percent at March 31 and 108 percent a year ago.
Quarterly non-interest income compared to the second quarter
of 2014:
- Total non-interest income was $59.9
million compared to $47.6
million, an increase of $12.3
million. Excluding securities gains and other-than-temporary
impairment charges, a year-over-year increase of $11.7 million in core non-interest income
reflects increases of $8.2 million in
deposit service fees of which $8.9
million related to HSA Bank, primarily from the acquisition,
$2.0 million in mortgage banking
activities, $0.9 million in loan
related fees, and $0.8 million in
other income.
Quarterly non-interest expense compared to the second quarter
of 2014:
- Total non-interest expense was $137.4
million compared to $122.5
million, an increase of $15.0
million. Included in non-interest expense are $0.8 million of net one-time costs, which
consisted primarily of branch and facility optimization and
severance expenses. There were $0.5
million of net one-time costs in the year-ago quarter.
- Non-interest expense, excluding one-time costs, increased
$14.7 million with $9.8 million of the increase related to HSA Bank,
primarily from the acquisition. The remaining $4.9 million increase reflects higher base
compensation due to merit increases, incentives, group insurance,
and professional and outside services.
Quarterly income taxes compared to the second quarter of
2014:
- The Company recorded $20.7
million of income tax expense compared to $23.2 million, a decrease of $2.5 million. The effective tax rate was 28.2
percent, reflecting a $3.7 million
net tax benefit, compared to 32.6 percent a year ago.
- The $3.7 million net tax benefit
included a net non-cash benefit of $4.4
million from a change in the estimated realizability of the
Company's state deferred tax assets, and a related increase in
expense of $0.7 million, including
$0.4 million attributable to the
first quarter.
Investment securities:
- Total investment securities were $6.9
billion compared to $6.9
billion at March 31, 2015 and
$6.5 billion a year ago. The carrying
value of the available-for-sale portfolio included $14.9 million of net unrealized gains compared to
$36.9 million at March 31 and $33.6
million a year ago, while the carrying value of the
held-to-maturity portfolio does not reflect $50.6 million of net unrealized gains compared to
$99.8 million at March 31 and $73.7
million a year ago.
Loans:
- Total loans were $14.8 billion
compared to $14.3 billion at
March 31, 2015 and $13.3 billion a year ago. Compared to
March 31, residential mortgage,
commercial, commercial real estate, and consumer loans increased by
$239.2 million, $123.9 million, $107.2
million, and $37.0 million,
respectively.
- Compared to a year ago, commercial, commercial real estate,
residential mortgage, and consumer loans increased by $499.3 million, $478.4
million, $467.4 million, and
$57.1 million, respectively.
- Loan originations for portfolio were $1.363 billion compared to $1.062 billion in the first quarter and
$1.069 billion a year ago. In
addition, $147 million of residential
loans were originated for sale in the quarter compared to
$87 million in the prior quarter and
$73 million a year ago.
Asset quality:
- Past due loans were $32.4 million
compared to $45.1 million at
March 31, 2015 and $47.7 million a year ago. Loans past due 90 days
and still accruing decreased $0.2
million from the prior quarter and increased $0.1 million from the prior year.
- Total nonperforming loans increased to $167.9 million, or 1.14 percent of total loans,
compared to $152.2 million, or 1.07
percent, at March 31 and $143.8 million, or 1.08 percent, a year ago.
Total paying nonperforming loans were $48.7
million compared to $53.8
million at March 31 and
$37.6 million a year ago.
Deposits and borrowings:
- Total deposits were $17.3 billion
compared to $17.5 billion and
$15.2 billion a year ago. Core to
total deposits were 87.8 percent compared to 87.4 percent at
March 31, and 84.8 percent a year
ago. Loans to deposits were 85.4 percent compared to 81.3 percent
at March 31 and 87.3 percent a year
ago.
- Total borrowings were $3.8
billion compared to $2.9
billion at March 31 and
$3.8 billion a year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 12.49
percent and 9.03 percent, respectively, compared to 11.51 percent
and 8.53 percent, respectively, in the second quarter of 2014.
- The tangible equity and tangible common equity ratios were 7.81
percent and 7.27 percent, respectively, compared to 8.34 percent
and 7.62 percent, respectively, at June 30,
2014. The Common Equity Tier 1 Capital ratio was 11.04
percent compared to 11.40 percent a year ago.
- Book value and tangible book value per common share were
$24.55 and $18.23, respectively, compared to $23.64 and $17.72,
respectively, a year ago.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $23.6 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust, and investment services through 165 banking
centers, 314 ATMs, telephone banking, mobile banking, and the
Internet. Webster Bank owns the
asset-based lending firm Webster Business Credit Corporation; the
equipment finance firm Webster Capital Finance Corporation; and HSA
Bank, a division of Webster Bank,
which provides health savings account trustee and administrative
services. Webster Bank is a member
of the FDIC and an equal housing lender. For more information about
Webster, including past press releases and the latest annual
report, visit the Webster website at
www.websterbank.com.
Conference Call
A conference call covering Webster's 2015 second quarter
earnings announcement will be held today, Thursday, July 16, 2015 at 9:00 a.m. (Eastern) and may be heard through
Webster's Investor Relations website at www.wbst.com,
or in listen-only mode by calling 1-877-407-8289 or 201-689-8341
internationally. The call will be archived on the website and
available for future retrieval.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements can be identified by words
such as "believes," "anticipates," "expects," "intends,"
"targeted," "continue," "remain," "will," "should," "may," "plans,"
"estimates," and similar references to future periods; however,
such words are not the exclusive means of identifying such
statements. Examples of forward-looking statements include,
but are not limited to: (i) projections of revenues, expenses,
income or loss, earnings or loss per share, and other financial
items; (ii) statements of plans, objectives, and expectations
of Webster or its management or Board of Directors;
(iii) statements of future economic performance; and
(iv) statements of assumptions underlying such statements.
Forward-looking statements are based on Webster's current
expectations and assumptions regarding its business, the economy,
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks, and changes in circumstances that are difficult to predict.
Webster's actual results may differ materially from those
contemplated by the forward-looking statements, which are neither
statements of historical fact nor guarantees or assurances of
future performance. Factors that could cause actual results to
differ from those discussed in the forward-looking statements
include, but are not limited to: (1) local, regional,
national, and international economic conditions and the impact they
may have on us and our customers and our assessment of that impact;
(2) volatility and disruption in national and international
financial markets; (3) government intervention in the U.S.
financial system; (4) changes in the level of nonperforming assets
and charge-offs; (5) changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; (6) adverse conditions in
the securities markets that lead to impairment in the value of
securities in our investment portfolio; (7) inflation, interest
rate, securities market, and monetary fluctuations; (8) the timely
development and acceptance of new products and services and
perceived overall value of these products and services by
customers; (9) changes in consumer spending, borrowings, and
savings habits; (10) technological changes 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
|
Mangan,
203-578-2318
|
rguenther@websterbank.com
|
tmangan@websterbank.com
|
WEBSTER FINANCIAL
CORPORATION
Selected Financial Highlights (unaudited)
|
|
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
(In thousands,
except per share data)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
Net income
|
$
52,503
|
|
$
49,722
|
|
$
51,006
|
|
$
50,457
|
|
$
47,834
|
Net income available
to common shareholders
|
50,479
|
|
47,083
|
|
48,367
|
|
47,818
|
|
45,195
|
Net income per
diluted common share
|
0.55
|
|
0.52
|
|
0.53
|
|
0.53
|
|
0.50
|
Return on average
assets
|
0.90%
|
|
0.88%
|
|
0.93%
|
|
0.94%
|
|
0.90%
|
Return on average
tangible common shareholders' equity
|
12.49
|
|
11.82
|
|
11.74
|
|
11.86
|
|
11.51
|
Return on average
common shareholders' equity
|
9.03
|
|
8.57
|
|
8.84
|
|
8.87
|
|
8.53
|
Non-interest income
as a percentage of total revenue
|
26.80
|
|
26.60
|
|
25.08
|
|
24.44
|
|
23.48
|
Efficiency
ratio
|
59.94
|
|
59.76
|
|
58.59
|
|
58.91
|
|
59.21
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
Nonperforming
assets
|
172,825
|
|
157,546
|
|
136,397
|
|
144,314
|
|
150,490
|
Allowance for loan
losses / total loans
|
1.14%
|
|
1.14%
|
|
1.15%
|
|
1.16%
|
|
1.17%
|
Net charge-offs /
average loans (annualized)
|
0.19
|
|
0.20
|
|
0.20
|
|
0.24
|
|
0.24
|
Nonperforming loans /
total loans
|
1.14
|
|
1.07
|
|
0.93
|
|
1.03
|
|
1.08
|
Nonperforming assets
/ total loans plus OREO
|
1.17
|
|
1.10
|
|
0.98
|
|
1.07
|
|
1.13
|
Allowance for loan
losses / nonperforming loans
|
100.00
|
|
106.39
|
|
122.62
|
|
112.51
|
|
107.73
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
7.81%
|
|
7.87%
|
|
8.14%
|
|
8.35%
|
|
8.34%
|
Tangible common
equity
|
7.27
|
|
7.20
|
|
7.45
|
|
7.64
|
|
7.62
|
Tier 1 risk-based
capital (a), (b)
|
11.91
|
|
12.01
|
|
12.95
|
|
13.06
|
|
12.97
|
Total risk-based
capital (a), (b)
|
13.33
|
|
13.44
|
|
14.06
|
|
14.17
|
|
14.09
|
Common equity tier 1
risk-based capital (a), (b)
|
11.04
|
|
10.93
|
|
11.43
|
|
11.50
|
|
11.40
|
Shareholders' equity
/ total assets
|
10.07
|
|
10.19
|
|
10.31
|
|
10.59
|
|
10.61
|
Net interest
margin
|
3.05
|
|
3.10
|
|
3.17
|
|
3.17
|
|
3.19
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
2,256,985
|
|
$
2,203,926
|
|
$
2,171,166
|
|
$
2,159,344
|
|
$
2,132,973
|
Book value per common
share
|
24.55
|
|
24.29
|
|
23.99
|
|
23.93
|
|
23.64
|
Tangible book value
per common share
|
18.23
|
|
17.87
|
|
18.10
|
|
18.02
|
|
17.72
|
Common stock closing
price
|
39.55
|
|
37.05
|
|
32.53
|
|
29.14
|
|
31.54
|
Dividends declared
per common share
|
0.23
|
|
0.20
|
|
0.20
|
|
0.20
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
|
90,246
|
Basic shares
(weighted average)
|
90,713
|
|
90,251
|
|
90,045
|
|
89,888
|
|
89,776
|
Diluted shares
(weighted average)
|
91,302
|
|
90,841
|
|
90,741
|
|
90,614
|
|
90,528
|
|
|
|
|
|
|
|
|
|
|
(a) The ratios
presented are projected for June 30, 2015 and actual for the
remaining periods presented.
|
(b) Calculated
under the Basel III capital standard at June 30,2015 and March 31,
2015 and under the Basel I capital standard for the remaining
periods presented.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
(In
thousands)
|
June 30,
2015
|
|
March 31,
2015
|
|
June 30,
2014 (a)
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
205,650
|
|
$
233,970
|
|
$
287,917
|
Interest-bearing
deposits
|
142,083
|
|
119,297
|
|
18,620
|
Investment
securities:
|
|
|
|
|
|
Available for
sale, at fair value
|
2,837,158
|
|
2,968,109
|
|
2,980,031
|
Held to
maturity
|
4,064,022
|
|
3,923,189
|
|
3,478,803
|
Total securities
|
6,901,180
|
|
6,891,298
|
|
6,458,834
|
Loans held for
sale
|
63,535
|
|
45,866
|
|
31,671
|
Loans:
|
|
|
|
|
|
Commercial
|
4,567,345
|
|
4,443,446
|
|
4,068,089
|
Commercial real
estate
|
3,770,252
|
|
3,663,071
|
|
3,291,892
|
Residential
mortgages
|
3,833,489
|
|
3,594,272
|
|
3,366,092
|
Consumer
|
2,606,440
|
|
2,569,437
|
|
2,549,307
|
Total loans
|
14,777,526
|
|
14,270,226
|
|
13,275,380
|
Allowance for loan
losses
|
(167,860)
|
|
(161,970)
|
|
(154,868)
|
Loans, net
|
14,609,666
|
|
14,108,256
|
|
13,120,512
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
180,290
|
|
193,290
|
|
168,595
|
Premises and
equipment, net
|
123,828
|
|
123,548
|
|
119,840
|
Goodwill and other
intangible assets, net
|
580,908
|
|
582,751
|
|
533,402
|
Cash surrender value
of life insurance policies
|
446,423
|
|
443,225
|
|
436,445
|
Deferred tax asset,
net
|
79,257
|
|
61,136
|
|
57,462
|
Accrued interest
receivable and other assets
|
287,966
|
|
304,051
|
|
291,186
|
Total
Assets
|
$ 23,620,786
|
|
$
23,106,688
|
|
$
21,524,484
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
$
3,547,356
|
|
$
3,450,316
|
|
$
3,249,996
|
Interest-bearing checking
|
2,214,973
|
|
2,267,350
|
|
2,073,652
|
Health savings
accounts
|
3,665,019
|
|
3,529,301
|
|
1,754,986
|
Money
market
|
1,757,095
|
|
2,114,300
|
|
1,844,014
|
Savings
|
3,998,169
|
|
3,978,655
|
|
3,973,109
|
Certificates of
deposit
|
1,811,864
|
|
1,905,943
|
|
2,029,008
|
Brokered
certificates of deposit
|
299,790
|
|
299,785
|
|
278,080
|
Total deposits
|
17,294,266
|
|
17,545,650
|
|
15,202,845
|
Securities sold under
agreements to repurchase and other borrowings
|
1,014,504
|
|
1,083,877
|
|
1,401,259
|
Federal Home Loan
Bank advances
|
2,509,285
|
|
1,584,357
|
|
2,217,324
|
Long-term
debt
|
226,297
|
|
226,267
|
|
226,178
|
Accrued expenses and
other liabilities
|
196,739
|
|
310,962
|
|
192,256
|
Total liabilities
|
21,241,091
|
|
20,751,113
|
|
19,239,862
|
|
|
|
|
|
|
Preferred
stock
|
122,710
|
|
151,649
|
|
151,649
|
Common shareholders'
equity
|
2,256,985
|
|
2,203,926
|
|
2,132,973
|
Webster Financial Corporation shareholders' equity
|
2,379,695
|
|
2,355,575
|
|
2,284,622
|
Total Liabilities
and Equity
|
$ 23,620,786
|
|
$
23,106,688
|
|
$
21,524,484
|
|
|
|
|
|
|
(a) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
(a)
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
135,694
|
|
$
125,771
|
|
$
266,417
|
|
$
249,781
|
Interest and
dividends on securities
|
50,844
|
|
51,511
|
|
102,523
|
|
105,103
|
Loans held for
sale
|
432
|
|
215
|
|
942
|
|
392
|
Total
interest income
|
186,970
|
|
177,497
|
|
369,882
|
|
355,276
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
11,533
|
|
10,851
|
|
23,075
|
|
21,495
|
Borrowings
|
11,926
|
|
11,524
|
|
23,532
|
|
23,358
|
Total
interest expense
|
23,459
|
|
22,375
|
|
46,607
|
|
44,853
|
Net
interest income
|
163,511
|
|
155,122
|
|
323,275
|
|
310,423
|
Provision for loan
losses
|
12,750
|
|
9,250
|
|
22,500
|
|
18,250
|
Net
interest income after provision for loan losses
|
150,761
|
|
145,872
|
|
300,775
|
|
292,173
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,493
|
|
26,302
|
|
67,118
|
|
51,014
|
Loan related
fees
|
5,729
|
|
4,890
|
|
11,408
|
|
9,372
|
Wealth and investment
services
|
8,784
|
|
8,829
|
|
16,673
|
|
17,667
|
Mortgage banking
activities
|
2,517
|
|
513
|
|
4,078
|
|
1,288
|
Increase in cash
surrender value of life insurance policies
|
3,197
|
|
3,296
|
|
6,349
|
|
6,554
|
Net gain on
investment securities
|
486
|
|
—
|
|
529
|
|
4,336
|
Other income
|
4,645
|
|
3,839
|
|
11,586
|
|
7,354
|
|
59,851
|
|
47,669
|
|
117,741
|
|
97,585
|
Loss on write-down of
investment securities to fair value
|
—
|
|
(73)
|
|
—
|
|
(161)
|
Total
non-interest income
|
59,851
|
|
47,596
|
|
117,741
|
|
97,424
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
74,043
|
|
65,711
|
|
144,907
|
|
132,082
|
Occupancy
|
11,680
|
|
11,491
|
|
25,276
|
|
24,250
|
Technology and
equipment expense
|
20,224
|
|
15,737
|
|
39,472
|
|
30,747
|
Marketing
|
4,245
|
|
4,249
|
|
8,421
|
|
7,429
|
Professional and
outside services
|
2,875
|
|
1,269
|
|
5,328
|
|
3,971
|
Intangible assets
amortization
|
1,843
|
|
669
|
|
3,131
|
|
1,837
|
Foreclosed and
repossessed asset expenses
|
146
|
|
134
|
|
315
|
|
592
|
Foreclosed and
repossessed asset gains
|
(537)
|
|
(574)
|
|
(1)
|
|
(834)
|
Loan workout
expenses
|
801
|
|
801
|
|
1,679
|
|
1,853
|
Deposit
insurance
|
5,492
|
|
5,565
|
|
11,733
|
|
10,876
|
Other
expenses
|
15,817
|
|
16,898
|
|
29,983
|
|
33,398
|
|
136,629
|
|
121,950
|
|
270,244
|
|
246,201
|
Severance, contract,
and other
|
521
|
|
267
|
|
811
|
|
289
|
Acquisition
costs
|
18
|
|
—
|
|
527
|
|
—
|
Branch and facility
optimization
|
278
|
|
258
|
|
(46)
|
|
448
|
Total
non-interest expense
|
137,446
|
|
122,475
|
|
271,536
|
|
246,938
|
Income before income
taxes
|
73,166
|
|
70,993
|
|
146,980
|
|
142,659
|
Income tax
expense
|
20,663
|
|
23,159
|
|
44,755
|
|
44,396
|
Net
income
|
52,503
|
|
47,834
|
|
102,225
|
|
98,263
|
Preferred stock
dividends
|
(2,024)
|
|
(2,639)
|
|
(4,663)
|
|
(5,278)
|
Net income
available to common shareholders
|
$
50,479
|
|
$
45,195
|
|
$
97,562
|
|
$
92,985
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
91,302
|
|
90,528
|
|
91,070
|
|
90,584
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$
0.50
|
|
$
1.07
|
|
$
1.03
|
Diluted
|
0.55
|
|
0.50
|
|
1.07
|
|
1.02
|
|
|
|
|
|
|
|
|
(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)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
135,694
|
|
$
130,723
|
|
$
132,604
|
|
$
129,227
|
|
$
125,771
|
Interest and
dividends on securities
|
50,844
|
|
51,679
|
|
50,921
|
|
50,448
|
|
51,511
|
Loans held for
sale
|
432
|
|
510
|
|
226
|
|
239
|
|
215
|
Total
interest income
|
186,970
|
|
182,912
|
|
183,751
|
|
179,914
|
|
177,497
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,533
|
|
11,542
|
|
11,322
|
|
11,345
|
|
10,851
|
Borrowings
|
11,926
|
|
11,606
|
|
11,781
|
|
11,199
|
|
11,524
|
Total
interest expense
|
23,459
|
|
23,148
|
|
23,103
|
|
22,544
|
|
22,375
|
Net
interest income
|
163,511
|
|
159,764
|
|
160,648
|
|
157,370
|
|
155,122
|
Provision for loan
losses
|
12,750
|
|
9,750
|
|
9,500
|
|
9,500
|
|
9,250
|
Net
interest income after provision for loan losses
|
150,761
|
|
150,014
|
|
151,148
|
|
147,870
|
|
145,872
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
34,493
|
|
32,625
|
|
25,928
|
|
26,489
|
|
26,302
|
Loan related
fees
|
5,729
|
|
5,679
|
|
8,361
|
|
5,479
|
|
4,890
|
Wealth and investment
services
|
8,784
|
|
7,889
|
|
8,517
|
|
8,762
|
|
8,829
|
Mortgage banking
activities
|
2,517
|
|
1,561
|
|
977
|
|
1,805
|
|
513
|
Increase in cash
surrender value of life insurance policies
|
3,197
|
|
3,152
|
|
3,278
|
|
3,346
|
|
3,296
|
Net gain on
investment securities
|
486
|
|
43
|
|
1,121
|
|
42
|
|
—
|
Other
income
|
4,645
|
|
6,941
|
|
6,492
|
|
5,071
|
|
3,839
|
|
59,851
|
|
57,890
|
|
54,674
|
|
50,994
|
|
47,669
|
Loss on write-down of
investment securities to fair value
|
—
|
|
—
|
|
(899)
|
|
(85)
|
|
(73)
|
Total
non-interest income
|
59,851
|
|
57,890
|
|
53,775
|
|
50,909
|
|
47,596
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
74,043
|
|
70,864
|
|
71,220
|
|
66,849
|
|
65,711
|
Occupancy
|
11,680
|
|
13,596
|
|
11,518
|
|
11,557
|
|
11,491
|
Technology and
equipment expense
|
20,224
|
|
19,248
|
|
15,827
|
|
15,419
|
|
15,737
|
Marketing
|
4,245
|
|
4,176
|
|
3,918
|
|
4,032
|
|
4,249
|
Professional and
outside services
|
2,875
|
|
2,453
|
|
1,855
|
|
2,470
|
|
1,269
|
Intangible assets
amortization
|
1,843
|
|
1,288
|
|
416
|
|
432
|
|
669
|
Foreclosed and
repossessed asset expenses
|
146
|
|
169
|
|
244
|
|
387
|
|
134
|
Foreclosed and
repossessed asset (gains) losses
|
(537)
|
|
536
|
|
(238)
|
|
(225)
|
|
(574)
|
Loan workout
expenses
|
801
|
|
878
|
|
685
|
|
969
|
|
801
|
Deposit
insurance
|
5,492
|
|
6,241
|
|
5,856
|
|
5,938
|
|
5,565
|
Other
expenses
|
15,817
|
|
14,166
|
|
16,158
|
|
17,083
|
|
16,898
|
|
136,629
|
|
133,615
|
|
127,459
|
|
124,911
|
|
121,950
|
Severance, contract,
and other
|
521
|
|
290
|
|
633
|
|
42
|
|
267
|
Acquisition
costs
|
18
|
|
509
|
|
396
|
|
144
|
|
—
|
Branch and facility
optimization
|
278
|
|
(324)
|
|
276
|
|
(599)
|
|
258
|
Provision for
litigation and settlements
|
—
|
|
—
|
|
1,400
|
|
—
|
|
—
|
Total
non-interest expense
|
137,446
|
|
134,090
|
|
130,164
|
|
124,498
|
|
122,475
|
Income before income
taxes
|
73,166
|
|
73,814
|
|
74,759
|
|
74,281
|
|
70,993
|
Income tax
expense
|
20,663
|
|
24,092
|
|
23,753
|
|
23,824
|
|
23,159
|
Net
income
|
52,503
|
|
49,722
|
|
51,006
|
|
50,457
|
|
47,834
|
Preferred stock
dividends
|
(2,024)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
Net income
available to common shareholders
|
$
50,479
|
|
$
47,083
|
|
$
48,367
|
|
$
47,818
|
|
$
45,195
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
91,302
|
|
90,841
|
|
90,741
|
|
90,614
|
|
90,528
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$
0.52
|
|
$
0.54
|
|
$
0.53
|
|
$
0.50
|
Diluted
|
0.55
|
|
0.52
|
|
0.53
|
|
0.53
|
|
0.50
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Average balance
(b)
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 14,508,701
|
|
$
136,223
|
|
3.74%
|
|
$
13,129,865
|
|
$
126,292
|
|
3.83%
|
Investment
securities (a)
|
6,854,413
|
|
51,483
|
|
3.02
|
|
6,411,407
|
|
52,604
|
|
3.29
|
Federal Home
Loan and Federal Reserve Bank stock
|
192,707
|
|
1,379
|
|
2.87
|
|
166,350
|
|
1,158
|
|
2.79
|
Interest-bearing deposits
|
124,769
|
|
79
|
|
0.25
|
|
16,792
|
|
11
|
|
0.27
|
Loans held for
sale
|
50,382
|
|
432
|
|
3.43
|
|
20,099
|
|
215
|
|
4.27
|
Total interest-earning assets
|
21,730,972
|
|
$
189,596
|
|
3.48%
|
|
19,744,513
|
|
$
180,280
|
|
3.64%
|
Non-interest-earning assets
|
1,657,980
|
|
|
|
|
|
1,507,081
|
|
|
|
|
Total assets
|
$ 23,388,952
|
|
|
|
|
|
$
21,251,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,450,633
|
|
$
—
|
|
—%
|
|
$
3,099,114
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
11,767,724
|
|
5,300
|
|
0.18
|
|
9,752,872
|
|
4,413
|
|
0.18
|
Certificates of
deposit
|
2,163,918
|
|
6,233
|
|
1.16
|
|
2,280,571
|
|
6,438
|
|
1.13
|
Total
deposits
|
17,382,275
|
|
11,533
|
|
0.27
|
|
15,132,557
|
|
10,851
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold
under agreements to repurchase and other borrowings
|
1,111,385
|
|
4,186
|
|
1.49
|
|
1,412,820
|
|
5,082
|
|
1.42
|
Federal Home
Loan Bank advances
|
2,092,840
|
|
5,329
|
|
1.01
|
|
2,035,813
|
|
4,002
|
|
0.78
|
Long-term
debt
|
226,277
|
|
2,411
|
|
4.26
|
|
249,276
|
|
2,440
|
|
3.91
|
Total borrowings
|
3,430,502
|
|
11,926
|
|
1.38
|
|
3,697,909
|
|
11,524
|
|
1.24
|
Total interest-bearing liabilities
|
20,812,777
|
|
$
23,459
|
|
0.45%
|
|
18,830,466
|
|
$
22,375
|
|
0.47%
|
Non-interest-bearing liabilities
|
197,323
|
|
|
|
|
|
150,319
|
|
|
|
|
Total liabilities
|
21,010,100
|
|
|
|
|
|
18,980,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
142,109
|
|
|
|
|
|
151,649
|
|
|
|
|
Common
shareholders' equity
|
2,236,743
|
|
|
|
|
|
2,119,160
|
|
|
|
|
Webster
Financial Corp. shareholders' equity
|
2,378,852
|
|
|
|
|
|
2,270,809
|
|
|
|
|
Total liabilities and equity
|
$ 23,388,952
|
|
|
|
|
|
$
21,251,594
|
|
|
|
|
Tax-equivalent
net interest income
|
|
|
166,137
|
|
|
|
|
|
157,905
|
|
|
Less:
tax-equivalent adjustment
|
|
|
(2,626)
|
|
|
|
|
|
(2,783)
|
|
|
Net interest income
|
|
|
$
163,511
|
|
|
|
|
|
$
155,122
|
|
|
Net interest margin
|
|
|
|
|
3.05%
|
|
|
|
|
|
3.19%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Average balance
(b)
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 14,253,012
|
|
$
267,477
|
|
3.75%
|
|
$
12,992,371
|
|
$
250,804
|
|
3.85%
|
Investment
securities (a)
|
6,775,633
|
|
103,909
|
|
3.08
|
|
6,416,165
|
|
107,529
|
|
3.36
|
Federal Home
Loan and Federal Reserve Bank stock
|
192,997
|
|
2,695
|
|
2.82
|
|
162,675
|
|
2,325
|
|
2.88
|
Interest-bearing deposits
|
112,393
|
|
142
|
|
0.25
|
|
16,373
|
|
22
|
|
0.27
|
Loans held for
sale
|
45,551
|
|
942
|
|
4.14
|
|
19,119
|
|
392
|
|
4.10
|
Total
interest-earning assets
|
21,379,586
|
|
$
375,165
|
|
3.51%
|
|
19,606,703
|
|
$
361,072
|
|
3.68%
|
Non-interest-earning assets
|
1,650,845
|
|
|
|
|
|
1,509,416
|
|
|
|
|
Total
assets
|
$ 23,030,431
|
|
|
|
|
|
$
21,116,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,452,428
|
|
$
—
|
|
—%
|
|
$
3,098,058
|
|
$
—
|
|
—%
|
Savings,
interest checking, and money market
|
11,655,056
|
|
10,136
|
|
0.18
|
|
9,798,648
|
|
8,932
|
|
0.18
|
Certificates
of deposit
|
2,203,169
|
|
12,939
|
|
1.18
|
|
2,265,510
|
|
12,563
|
|
1.12
|
Total
deposits
|
17,310,653
|
|
23,075
|
|
0.27
|
|
15,162,216
|
|
21,495
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,154,962
|
|
8,573
|
|
1.48
|
|
1,382,301
|
|
10,287
|
|
1.48
|
Federal Home Loan
Bank advances
|
1,764,602
|
|
10,150
|
|
1.14
|
|
1,879,609
|
|
7,849
|
|
0.83
|
Long-term
debt
|
226,263
|
|
4,809
|
|
4.25
|
|
278,966
|
|
5,222
|
|
3.74
|
Total
borrowings
|
3,145,827
|
|
23,532
|
|
1.49
|
|
3,540,876
|
|
23,358
|
|
1.31
|
Total
interest-bearing liabilities
|
20,456,480
|
|
$
46,607
|
|
0.46%
|
|
18,703,092
|
|
$
44,853
|
|
0.48%
|
Non-interest-bearing
liabilities
|
209,493
|
|
|
|
|
|
158,049
|
|
|
|
|
Total
liabilities
|
20,665,973
|
|
|
|
|
|
18,861,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
146,853
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,217,605
|
|
|
|
|
|
2,103,329
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,364,458
|
|
|
|
|
|
2,254,978
|
|
|
|
|
Total
liabilities and equity
|
$ 23,030,431
|
|
|
|
|
|
$
21,116,119
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
328,558
|
|
|
|
|
|
316,219
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(5,283)
|
|
|
|
|
|
(5,796)
|
|
|
Net
interest income
|
|
|
$
323,275
|
|
|
|
|
|
$
310,423
|
|
|
Net
interest margin
|
|
|
|
|
3.07%
|
|
|
|
|
|
3.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
(b) Certain
previously reported information reflects the retrospective
application of ASU No. 2014-01, "Accounting for Investments in
Qualified Affordable Housing Projects."
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan Balances (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Loan Balances
(actuals):
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
3,310,863
|
|
$
3,183,218
|
|
$
3,087,940
|
|
$
2,984,949
|
|
$
2,978,576
|
Equipment financing
|
545,441
|
|
543,636
|
|
537,751
|
|
490,150
|
|
464,948
|
Asset-based lending
|
711,041
|
|
716,592
|
|
661,330
|
|
647,042
|
|
624,565
|
Commercial real estate
|
3,770,252
|
|
3,663,071
|
|
3,554,428
|
|
3,354,107
|
|
3,291,892
|
Residential mortgages
|
3,833,489
|
|
3,594,272
|
|
3,509,174
|
|
3,455,353
|
|
3,366,091
|
Consumer
|
2,520,970
|
|
2,480,270
|
|
2,457,345
|
|
2,485,870
|
|
2,449,730
|
Total
continuing portfolio
|
14,692,056
|
|
14,181,059
|
|
13,807,968
|
|
13,417,471
|
|
13,175,802
|
Allowance for loan losses
|
(159,501)
|
|
(152,825)
|
|
(149,813)
|
|
(145,818)
|
|
(143,440)
|
Total
continuing portfolio, net
|
14,532,555
|
|
14,028,234
|
|
13,658,155
|
|
13,271,653
|
|
13,032,362
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
National
Construction Lending Center (NCLC)
|
—
|
|
—
|
|
1
|
|
1
|
|
1
|
Consumer
|
85,470
|
|
89,167
|
|
92,056
|
|
96,030
|
|
99,577
|
Total
liquidating portfolio
|
85,470
|
|
89,167
|
|
92,057
|
|
96,031
|
|
99,578
|
Allowance for loan losses
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
Total
liquidating portfolio, net
|
77,111
|
|
80,022
|
|
82,606
|
|
85,367
|
|
88,150
|
Total Loan
Balances (actuals)
|
14,777,526
|
|
14,270,226
|
|
13,900,025
|
|
13,513,502
|
|
13,275,380
|
Allowance for loan
losses
|
(167,860)
|
|
(161,970)
|
|
(159,264)
|
|
(156,482)
|
|
(154,868)
|
Loans,
net
|
$ 14,609,666
|
|
$
14,108,256
|
|
$
13,740,761
|
|
$
13,357,020
|
|
$
13,120,512
|
|
|
|
|
|
|
|
|
|
|
Loan Balances
(average):
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
3,247,527
|
|
$
3,096,762
|
|
$
3,036,412
|
|
$
2,987,403
|
|
$
2,963,150
|
Equipment financing
|
542,112
|
|
542,067
|
|
509,331
|
|
478,333
|
|
459,140
|
Asset-based lending
|
709,985
|
|
675,218
|
|
647,952
|
|
621,856
|
|
612,170
|
Commercial real estate
|
3,705,895
|
|
3,574,826
|
|
3,452,954
|
|
3,329,767
|
|
3,195,746
|
Residential mortgages
|
3,711,096
|
|
3,546,098
|
|
3,483,444
|
|
3,409,010
|
|
3,361,276
|
Consumer
|
2,504,668
|
|
2,468,422
|
|
2,491,359
|
|
2,467,839
|
|
2,437,452
|
Total
continuing portfolio
|
14,421,283
|
|
13,903,393
|
|
13,621,452
|
|
13,294,208
|
|
13,028,934
|
Allowance for loan losses
|
(156,698)
|
|
(153,790)
|
|
(150,706)
|
|
(146,863)
|
|
(143,811)
|
Total
continuing portfolio, net
|
14,264,585
|
|
13,749,603
|
|
13,470,746
|
|
13,147,345
|
|
12,885,123
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
1
|
|
1
|
|
1
|
|
53
|
Consumer
|
87,418
|
|
91,088
|
|
94,069
|
|
97,661
|
|
100,878
|
Total
liquidating portfolio
|
87,418
|
|
91,089
|
|
94,070
|
|
97,662
|
|
100,931
|
Allowance for loan losses
|
(8,359)
|
|
(9,145)
|
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
Total
liquidating portfolio, net
|
79,059
|
|
81,944
|
|
84,619
|
|
86,998
|
|
89,503
|
Total Loan
Balances (average)
|
14,508,701
|
|
13,994,482
|
|
13,715,522
|
|
13,391,870
|
|
13,129,865
|
Allowance for loan
losses
|
(165,057)
|
|
(162,935)
|
|
(160,157)
|
|
(157,527)
|
|
(155,239)
|
Loans,
net
|
$ 14,343,644
|
|
$
13,831,547
|
|
$
13,555,365
|
|
$
13,234,343
|
|
$
12,974,626
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
43,081
|
|
$
27,057
|
|
$
6,436
|
|
$
12,421
|
|
$
14,152
|
Equipment financing
|
301
|
|
285
|
|
518
|
|
1,659
|
|
863
|
Asset-based lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real estate
|
26,893
|
|
25,814
|
|
18,675
|
|
18,341
|
|
19,023
|
Residential mortgages
|
58,663
|
|
61,274
|
|
64,022
|
|
67,541
|
|
67,722
|
Consumer
|
34,236
|
|
33,696
|
|
35,770
|
|
34,566
|
|
36,526
|
Nonperforming loans - continuing portfolio
|
163,174
|
|
148,126
|
|
125,421
|
|
134,528
|
|
138,286
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
4,682
|
|
4,117
|
|
4,460
|
|
4,560
|
|
5,475
|
Total
nonperforming loans
|
$
167,856
|
|
$
152,243
|
|
$
129,881
|
|
$
139,088
|
|
$
143,761
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
—
|
|
$
—
|
|
$
2,899
|
|
$
2,899
|
|
$
3,238
|
Repossessed equipment
|
—
|
|
—
|
|
100
|
|
100
|
|
100
|
Residential
|
3,930
|
|
3,051
|
|
2,280
|
|
1,712
|
|
2,748
|
Consumer
|
1,039
|
|
2,252
|
|
1,237
|
|
515
|
|
643
|
Total
continuing portfolio
|
4,969
|
|
5,303
|
|
6,516
|
|
5,226
|
|
6,729
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Total
liquidating portfolio
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total other real
estate owned and repossessed assets
|
$
4,969
|
|
$
5,303
|
|
$
6,516
|
|
$
5,226
|
|
$
6,729
|
Total
nonperforming assets
|
$
172,825
|
|
$
157,546
|
|
$
136,397
|
|
$
144,314
|
|
$
150,490
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans (unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
$
1,778
|
|
$
3,992
|
|
$
2,099
|
|
$
8,795
|
|
$
5,045
|
Equipment financing
|
517
|
|
789
|
|
701
|
|
433
|
|
290
|
Asset-based lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real estate
|
1,547
|
|
3,962
|
|
2,714
|
|
1,625
|
|
1,610
|
Residential mortgages
|
12,315
|
|
13,966
|
|
17,216
|
|
15,980
|
|
17,826
|
Consumer
|
13,053
|
|
18,459
|
|
15,867
|
|
15,852
|
|
18,956
|
Past due
30-89 days - continuing portfolio
|
29,210
|
|
41,168
|
|
38,597
|
|
42,685
|
|
43,727
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
1,299
|
|
1,820
|
|
1,658
|
|
1,419
|
|
2,105
|
Total past due
30-89 days
|
30,509
|
|
42,988
|
|
40,255
|
|
44,104
|
|
45,832
|
Loans past due 90
days or more and accruing
|
1,923
|
|
2,109
|
|
2,087
|
|
1,980
|
|
1,828
|
Total past due
loans
|
$
32,432
|
|
$
45,097
|
|
$
42,342
|
|
$
46,084
|
|
$
47,660
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan Losses
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Dollars in
thousands)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Beginning
balance
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
Provision
|
12,750
|
|
9,750
|
|
9,500
|
|
9,500
|
|
9,250
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
2,541
|
|
255
|
|
4,097
|
|
2,738
|
|
3,685
|
Equipment financing
|
15
|
|
15
|
|
84
|
|
491
|
|
20
|
Asset-based lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real estate
|
1,091
|
|
3,153
|
|
246
|
|
139
|
|
447
|
Residential mortgages
|
1,461
|
|
1,953
|
|
1,346
|
|
1,870
|
|
1,840
|
Consumer
|
3,531
|
|
3,634
|
|
3,648
|
|
5,078
|
|
4,075
|
Charge-offs continuing portfolio
|
8,639
|
|
9,010
|
|
9,421
|
|
10,316
|
|
10,067
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
2
|
|
—
|
|
—
|
|
—
|
Consumer
|
322
|
|
662
|
|
563
|
|
1,251
|
|
1,211
|
Charge-offs liquidating portfolio
|
322
|
|
664
|
|
563
|
|
1,251
|
|
1,211
|
Total
charge-offs
|
8,961
|
|
9,674
|
|
9,984
|
|
11,567
|
|
11,278
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial non-mortgage
|
527
|
|
989
|
|
1,258
|
|
967
|
|
1,121
|
Equipment financing
|
102
|
|
143
|
|
702
|
|
336
|
|
397
|
Asset-based lending
|
2
|
|
26
|
|
—
|
|
50
|
|
—
|
Commercial real estate
|
52
|
|
202
|
|
217
|
|
120
|
|
69
|
Residential mortgages
|
365
|
|
104
|
|
291
|
|
250
|
|
495
|
Consumer
|
849
|
|
821
|
|
636
|
|
1,770
|
|
923
|
Recoveries continuing portfolio
|
1,897
|
|
2,285
|
|
3,104
|
|
3,493
|
|
3,005
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
4
|
|
4
|
|
5
|
|
11
|
|
12
|
Consumer
|
200
|
|
341
|
|
157
|
|
177
|
|
279
|
Recoveries liquidating portfolio
|
204
|
|
345
|
|
162
|
|
188
|
|
291
|
Total
recoveries
|
2,101
|
|
2,630
|
|
3,266
|
|
3,681
|
|
3,296
|
Total net
charge-offs
|
6,860
|
|
7,044
|
|
6,718
|
|
7,886
|
|
7,982
|
Ending
balance
|
$
167,860
|
|
$
161,970
|
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
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.
|
|
|
|
|
|
|
|
|
|
|
See the tables below
for reconciliations of these non-GAAP financial measures with
financial measures defined by GAAP for the three months ended June
30, 2015, March 31, 2015, December 31, 2014, September 30, 2014,
and June 30, 2014. The Company believes the use of these non-GAAP
financial measures provides additional clarity in assessing the
results of the Company. Other companies may define or calculate
supplemental financial data differently.
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
(Dollars in
thousands, except per share data)
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
Reconciliation of
net income available to common shareholders to net income used
for
computing the return on average tangible common shareholders'
equity ratio
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders
|
$
50,479
|
|
$
47,083
|
|
$
48,367
|
|
$
47,818
|
|
$
45,195
|
Amortization of
intangibles (tax-affected @ 35%)
|
1,198
|
|
837
|
|
270
|
|
281
|
|
435
|
Quarterly net
income adjusted for amortization of intangibles
|
51,677
|
|
47,920
|
|
48,637
|
|
48,099
|
|
45,630
|
Annualized
net income used in the return on average tangible common
shareholders' equity ratio
|
$
206,708
|
|
$
191,680
|
|
$
194,548
|
|
$
192,396
|
|
$
182,520
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$
2,236,743
|
|
$
2,198,254
|
|
$
2,189,191
|
|
$
2,155,246
|
|
$
2,119,160
|
Average
goodwill
|
(538,373)
|
|
(537,147)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
Average intangible
assets (excluding mortgage servicing rights)
|
(43,538)
|
|
(39,559)
|
|
(2,862)
|
|
(3,294)
|
|
(3,762)
|
Average
tangible common shareholders' equity
|
$
1,654,832
|
|
$
1,621,548
|
|
$
1,656,442
|
|
$
1,622,065
|
|
$
1,585,511
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,379,695
|
|
$
2,355,575
|
|
$
2,322,815
|
|
$
2,310,993
|
|
$
2,284,622
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
Tangible
shareholders' equity
|
$
1,798,787
|
|
$
1,772,824
|
|
$
1,790,262
|
|
$
1,778,024
|
|
$
1,751,220
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end common shareholders' equity to period-end tangible
common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,379,695
|
|
$
2,355,575
|
|
$
2,322,815
|
|
$
2,310,993
|
|
$
2,284,622
|
Preferred
stock
|
(122,710)
|
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
Common shareholders'
equity
|
2,256,985
|
|
2,203,926
|
|
2,171,166
|
|
2,159,344
|
|
2,132,973
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
Tangible
common shareholders' equity
|
$
1,676,077
|
|
$
1,621,175
|
|
$
1,638,613
|
|
$
1,626,375
|
|
$
1,599,571
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
Assets
|
$
23,620,786
|
|
$
23,106,688
|
|
$
22,533,172
|
|
$
21,827,045
|
|
$
21,524,484
|
Goodwill
|
(538,373)
|
|
(538,373)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
Intangible assets
(excluding mortgage servicing rights)
|
(42,535)
|
|
(44,378)
|
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
Tangible
assets
|
$
23,039,878
|
|
$
22,523,937
|
|
$
22,000,619
|
|
$
21,294,076
|
|
$
20,991,082
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$
2,256,985
|
|
$
2,203,926
|
|
$
2,171,166
|
|
$
2,159,344
|
|
$
2,132,973
|
Ending common shares
issued and outstanding (in thousands)
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
|
90,246
|
Book value
per share of common stock
|
$
24.55
|
|
$
24.29
|
|
$
23.99
|
|
$
23.93
|
|
$
23.64
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$
1,676,077
|
|
$
1,621,175
|
|
$
1,638,613
|
|
$
1,626,375
|
|
$
1,599,571
|
Ending common shares
issued and outstanding (in thousands)
|
91,919
|
|
90,715
|
|
90,512
|
|
90,248
|
|
90,246
|
Tangible
book value per common share
|
$
18.23
|
|
$
17.87
|
|
$
18.10
|
|
$
18.02
|
|
$
17.72
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
137,446
|
|
$
134,090
|
|
$
130,164
|
|
$
124,498
|
|
$
122,475
|
Foreclosed property
expense
|
(146)
|
|
(169)
|
|
(244)
|
|
(387)
|
|
(134)
|
Intangible assets
amortization
|
(1,843)
|
|
(1,288)
|
|
(416)
|
|
(432)
|
|
(669)
|
Other
expense
|
(280)
|
|
(1,011)
|
|
(2,467)
|
|
638
|
|
49
|
Non-interest expense used in the efficiency ratio
|
$
135,177
|
|
$
131,622
|
|
$
127,037
|
|
$
124,317
|
|
$
121,721
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income to income used in the efficiency ratio
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
$
163,511
|
|
$
159,764
|
|
$
160,648
|
|
$
157,370
|
|
$
155,122
|
Fully
taxable-equivalent adjustment
|
2,626
|
|
2,657
|
|
2,628
|
|
2,700
|
|
2,783
|
Non-interest
income
|
59,851
|
|
57,890
|
|
53,775
|
|
50,909
|
|
47,596
|
Net gain on
investment securities
|
(486)
|
|
(43)
|
|
(1,121)
|
|
(42)
|
|
—
|
Other
|
—
|
|
—
|
|
899
|
|
85
|
|
73
|
Income used
in the efficiency ratio
|
$
225,502
|
|
$
220,268
|
|
$
216,829
|
|
$
211,022
|
|
$
205,574
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2015-second-quarter-earnings-300114233.html
SOURCE Webster Financial Corporation