WATERBURY, Conn., Jan. 22, 2015 /PRNewswire/ -- Webster
Financial Corporation (NYSE: WBS), the holding company for
Webster Bank, N.A., today announced
net income available to common shareholders of $48.4 million, or $0.53 per diluted share, for the quarter ended
December 31, 2014 compared to
$41.1 million, or $0.45 per diluted share, for the quarter ended
December 31, 2013. The quarter ended
December 31, 2013 included a
$0.05 per diluted share negative
impact from the Volcker Rule.
For the full year 2014, net income available to common
shareholders was $189.2 million, or
$2.08 per diluted share, compared to
$168.7 million, or $1.86 per diluted share, for the full year
2013.
"Strong loan demand boosted revenue and profit in the fourth
quarter and full year 2014. Revenue grew for the twenty-first
consecutive quarter and net income reached record levels," said
James C. Smith, chairman and chief
executive officer. "Record lending to businesses once again led the
way, as Webster bankers excelled in service to our customers and
communities. Further strength in credit quality reflects our
customers' solid financial condition amid a gradually improving
economy."
Highlights for the fourth quarter of 2014 compared to the
fourth quarter of 2013:
- Core revenue of $214.2 million, a
record, increased 4.3 percent, while core expenses increased by 2.2
percent leading to record core pre-provision net revenue of
$86.6 million, or a 7.5 percent
improvement.
- Record level of net income at $51.0
million, up 16.6 percent.
- Efficiency ratio of 58.65 percent, an improvement of 65 basis
points. Positive operating leverage of 2.1 percent.
- Continued improvement in asset quality: annualized net
charge-off rate at 20 basis points of average total loans is at the
lowest level since the third quarter of 2007; nonperforming loans
as a percentage of total loans at December
31, 2014 is at the lowest level since the end of 2007.
- Annualized return on average tangible common shareholders'
equity of 11.75 percent.
Year-over-year highlights:
- Growth in commercial and commercial real estate loans of
$1.0 billion, or 15.3 percent.
Overall loan growth of $1.2 billion,
or 9.5 percent.
- Deposit growth of $797.2 million,
or 5.4 percent.
"Webster's consistent achievement of revenue growth while
strategically investing in our businesses resulted in the
efficiency ratio improving a full percentage point to 59.30 percent
in 2014," said Glenn MacInnes,
executive vice president and chief financial officer. "Webster's
recent Health Savings Account acquisition underscores our ability
to invest in businesses that achieve Economic Profit."
Quarterly net interest income compared to fourth quarter of
2013:
- Net interest income was $160.6
million, a record, compared to $153.9
million.
- Net interest margin was 3.17 percent compared to 3.27 percent.
The yield on interest-earning assets declined by 11 basis points,
while the cost of funds was unchanged.
- Average interest-earning assets totaled $20.5 billion and grew by $1.4 billion, or 7.4 percent.
- Average loans grew by $1.2
billion, or 9.3 percent.
Quarterly provision for loan losses:
- The Company recorded a provision for loan losses of
$9.5 million in the fourth quarter of
2014 compared to $9.5 million in the
third quarter of 2014 and $9.0
million in the fourth quarter of 2013.
- Net charge-offs were $6.7 million
compared to $7.9 million in the prior
quarter and $14.0 million a year ago.
The ratio of net charge-offs to average loans on an annualized
basis was 0.20 percent compared to 0.24 percent in the prior
quarter and 0.45 percent a year ago.
- The allowance for loan losses represented 1.15 percent of total
loans at December 31, 2014 compared
to 1.16 percent at September 30, 2014
and 1.20 percent at December 31,
2013. The allowance for loan losses represented 121 percent
of nonperforming loans at December 31
compared to 112 percent at September
30 and 94 percent a year ago.
Quarterly non-interest income compared to the fourth quarter
of 2013:
- Total non-interest income was $53.8
million compared to $44.3
million, an increase of $9.5
million. Excluding securities gains and other-than-temporary
impairment charges, a $2.0 million
year-over-year increase in core non-interest income reflects an
increase of $2.4 million in loan
related fees, an increase of $2.3
million in other income, and a $0.7
million increase in deposit service fees offset by a
$1.8 million reduction in mortgage
banking activities and a $1.5 million
reduction in wealth and investment services.
Quarterly non-interest expense compared to the fourth quarter
of 2013:
- Total non-interest expense was $130.3
million compared to $126.6
million, an increase of $3.7
million. Included in non-interest expense are $2.7 million of net one-time costs. These costs
primarily consist of a provision for a litigation reserve and other
costs. There were $1.6 million of net
one-time costs in the year-ago quarter.
- Non-interest expense, excluding one-time costs, increased
$2.5 million. This increase is
attributable to an increase of $3.1
million in compensation and benefits primarily related to
annual merit increases and an increase of $1.2 million in technology and equipment expense
primarily due to the installation of a new core system at the
company's HSA Bank division offset by a $1.7
million reduction in professional and outside services.
- Foreclosed and repossessed asset expenses were $0.2 million compared to $0.4 million, while net gains on foreclosed and
repossessed assets were flat to a year ago at $0.2 million.
Quarterly income taxes compared to the fourth quarter of
2013:
- The Company recorded $23.6
million of income tax expense in the fourth quarter. The
effective tax rate was 31.6 percent compared to 30.0 percent a year
ago, reflecting a $0.3 million net
tax expense specific to the quarter, compared to a $0.3 million net tax benefit a year ago, and the
effects of increased pre-tax income and decreased benefits from
tax-exempt interest income
Investment securities:
- Total investment securities were $6.7
billion at December 31, 2014
compared to $6.5 billion at
September 30, 2014 and a year ago.
The carrying value of the available-for-sale portfolio included
$25.9 million of net unrealized gains
compared to $20.8 million at
September 30 and $3.9 million a year ago, while the carrying value
of the held-to-maturity portfolio does not reflect $75.8 million of net unrealized gains compared to
$57.8 million at September 30 and $12.2
million a year ago.
Loans:
- Total loans were $13.9 billion at
December 31, 2014 compared to
$13.5 billion at September 30, 2014 and $12.7 billion at December
31, 2013. In the quarter, commercial, commercial real
estate, and residential mortgage loans increased by $164.9 million, $200.3
million, and $53.8 million,
respectively, while consumer loans decreased by $32.5 million.
- Compared to a year ago, commercial, commercial real estate,
residential mortgage, and consumer loans increased by $543.7 million, $496.1
million, $147.8 million, and
$12.7 million, respectively.
- Loan originations for portfolio in the fourth quarter were
$1.319 billion compared to
$1.168 billion in the third quarter
and $1.094 billion a year ago. In
addition, $87 million of residential
loans were originated for sale in the quarter compared to
$78 million in the prior quarter and
$95 million a year ago.
Asset quality:
- Past due loans were $40.3 million
at December 31, 2014 compared to
$45.3 million at September 30, 2014 and $52.9 million a year ago. Compared to
September 30, past due commercial
non-mortgage loans decreased $6.7
million while past due residential mortgage, commercial real
estate, equipment financing, and liquidating consumer loans
increased $1.2 million, $1.1 million, $0.3
million, and $0.2 million,
respectively. Loans past due 90 days and still accruing decreased
$1.2 million. Compared to a year ago,
past due consumer, commercial real estate, commercial non-mortgage,
residential mortgages, and consumer liquidating loans decreased
$3.1 million, $2.2 million, $2.0
million, $1.1 million, and
$0.1 million, respectively, while
past due equipment financing loans increased $0.3 million. Loans past due 90 days and still
accruing decreased $4.5 million.
- Past due loans represented 0.29 percent of total loans at year
end, 0.34 percent at September 30,
and 0.42 percent a year ago. Past due loans for the continuing
portfolio were $38.6 million at year
end compared to $43.9 million at
September 30 and $51.1 million a year ago. Past due loans for the
liquidating portfolio were $1.7
million at December 31
compared to $1.4 million at
September 30 and $1.8 million a year ago.
- Total nonperforming loans decreased to $131.9 million, or 0.95 percent of total loans,
at quarter end compared to $139.8
million, or 1.03 percent, at September 30, and $162.9
million, or 1.28 percent, a year ago. Total paying
nonperforming loans at December 31
were $30.5 million compared to
$35.0 million at September 30 and $48.8
million a year ago.
Deposits and borrowings:
- Total deposits were $15.7 billion
at December 31, 2014 compared to
$15.5 billion at September 30, 2014 and $14.9 billion a year ago. Compared to
September 30, increases of
$342.1 million in demand deposits,
$108.7 million in interest-bearing
checking, $15.1 million in savings,
and $5.7 million in brokered
certificates of deposit were offset by declines of $330.6 million in money market deposits and
$36.4 million in certificates of
deposit. Compared to a year ago, increases of $512.2 million in interest-bearing checking,
$470.7 million in demand deposits,
$151.9 million in brokered
certificates of deposit, and $28.8
million in savings were offset by declines of $259.1 million in money market deposits and
$107.5 million in certificates of
deposit.
- Core to total deposits were 85.5 percent at December 31, 85.2 percent at September 30, and 85.0 percent a year ago. Loans
to deposits were 88.8 percent compared to 86.9 percent at
September 30 and 85.5 percent a year
ago.
- Total borrowings were $4.3
billion at year end compared to $3.8
billion at September 30 and
$3.6 billion a year ago.
Capital:
- The return on average tangible common shareholders' equity and
the return on average common shareholders' equity were 11.75
percent and 8.84 percent, respectively, for the fourth quarter of
2014 compared to 11.14 percent and 8.06 percent, respectively, in
the fourth quarter of 2013.
- The tangible equity and tangible common equity ratios were 8.14
percent and 7.45 percent, respectively, at December 31, 2014 compared to 8.24 percent and
7.49 percent, respectively, at December 31,
2013. The Tier 1 common equity to risk-weighted assets ratio
was 11.44 percent at December 31
compared to 11.43 percent a year ago.
- Book value and tangible book value per common share were
$23.99 and $18.10, respectively, at December 31, 2014 compared to $22.77 and $16.85,
respectively, at December 31,
2013.
Webster Financial Corporation is the holding company for
Webster Bank, National Association.
With $22.5 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust and investment services through 164 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 2014 fourth quarter
earnings announcement will be held today, Thursday, January 22, 2015 at 9:00 a.m. (Eastern) and may be heard through
Webster's Investor Relations website at www.wbst.com, or in
listen-only mode by calling 1-877-407-8289 or 201-689-8341
internationally. The call will be archived on the website and
available for future retrieval.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements can be identified by words
such as "believes," "anticipates," "expects," "intends,"
"targeted," "continue," "remain," "will," "should," "may," "plans,"
"estimates," and similar references to future periods; however,
such words are not the exclusive means of identifying such
statements. Examples of forward-looking statements include,
but are not limited to: (i) projections of revenues, expenses,
income or loss, earnings or loss per share, and other financial
items; (ii) statements of plans, objectives, and expectations
of Webster or its management or Board of Directors;
(iii) statements of future economic performance; and
(iv) statements of assumptions underlying such statements.
Forward-looking statements are based on Webster's current
expectations and assumptions regarding its business, the economy,
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks, and changes in circumstances that are difficult to predict.
Webster's actual results may differ materially from those
contemplated by the forward-looking statements, which are neither
statements of historical fact nor guarantees or assurances of
future performance. Factors that could cause actual results to
differ from those discussed in the forward-looking statements
include, but are not limited to: (1) local, regional,
national, and international economic conditions and the impact they
may have on us and our customers and our assessment of that impact;
(2) volatility and disruption in national and international
financial markets; (3) government intervention in the U.S.
financial system; (4) changes in the level of nonperforming assets
and charge-offs; (5) changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; (6) adverse conditions in
the securities markets that lead to impairment in the value of
securities in our investment portfolio; (7) inflation, interest
rate, securities market, and monetary fluctuations; (8) the timely
development and acceptance of new products and services and
perceived overall value of these products and services by
customers; (9) changes in consumer spending, borrowings, and
savings habits; (10) technological changes; (11) the ability to
increase market share and control expenses; (12) changes in the
competitive environment among banks, financial holding companies,
and other financial service providers; (13) the effect of changes
in laws and regulations (including laws and regulations concerning
taxes, banking, securities, and insurance) with which we and our
subsidiaries must comply, including those under the Dodd-Frank Wall
Street Reform and Consumer Protection Act and the Basel III update
to the Basel Accords that is under development; (14) the effect of
changes in accounting policies and practices, as may be adopted by
the regulatory agencies, as well as the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board, and
other accounting standard setters; (15) the costs and effects of
legal and regulatory developments including the resolution of legal
proceedings or regulatory or other governmental inquiries and the
results of regulatory examinations or reviews; and (16) our success
at managing the risks involved in the foregoing items and
(17) the other factors that are described in the Company's
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q
under the heading "Risk Factors." Any forward-looking
statement made by the Company in this release speaks only as of the
date on which it is made. Factors or events that could cause the
Company's actual results to differ may emerge from time to time,
and it is not possible for the Company to predict all of them. The
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this
press release contains certain non-GAAP financial measures. A
reconciliation of net income and other performance ratios, as
adjusted, is included in the accompanying selected financial
highlights table.
We believe that providing certain non-GAAP financial measures
provides investors with information useful in understanding our
financial performance, our performance trends and financial
position. Specifically, we provide measures based on what we
believe are our operating earnings on a consistent basis and
exclude non-core operating items which affect the GAAP reporting of
results of operations. We utilize these measures for internal
planning and forecasting purposes. We, as well as securities
analysts, investors, and other interested parties, also use these
measures to compare peer company operating performance. We believe
that our presentation and discussion, together with the
accompanying reconciliations, provides a complete understanding of
factors and trends affecting our business and allows investors to
view performance in a manner similar to management. These non-GAAP
measures should not be considered a substitute for GAAP basis
measures and results, and we strongly encourage investors to review
our consolidated financial statements in their entirety and not to
rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names.
Media
Contact
|
Investor
Contact
|
Bob Guenther,
203-578-2391
|
Terry Mangan,
203-578-2318
|
rguenther@websterbank.com
|
tmangan@websterbank.com
|
WEBSTER FINANCIAL
CORPORATION
Selected Financial Highlights (unaudited)
|
|
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
|
|
|
(In thousands,
except per share data)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
51,015
|
|
$
50,458
|
|
$
47,856
|
|
$
50,423
|
|
$
43,754
|
|
Net income available
to common shareholders
|
48,376
|
|
47,819
|
|
45,217
|
|
47,784
|
|
41,115
|
|
Net income per
diluted common share
|
0.53
|
|
0.53
|
|
0.50
|
|
0.53
|
|
0.45
|
|
Return on average
assets
|
0.93 %
|
|
0.94 %
|
|
0.90 %
|
|
0.96 %
|
|
0.85 %
|
|
Return on average
tangible common shareholders' equity
|
11.75
|
|
11.86
|
|
11.52
|
|
12.51
|
|
11.14
|
|
Return on average
common shareholders' equity
|
8.84
|
|
8.88
|
|
8.54
|
|
9.16
|
|
8.06
|
|
Non-interest income
as a percentage of total revenue
|
25.08
|
|
24.44
|
|
23.48
|
|
24.29
|
|
22.34
|
|
Efficiency
ratio
|
58.65
|
|
58.98
|
|
59.26
|
|
60.34
|
|
59.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
|
$
152,573
|
|
Nonperforming
assets
|
138,436
|
|
145,053
|
|
151,207
|
|
152,900
|
|
171,607
|
|
Allowance for loan
losses / total loans
|
1.15 %
|
|
1.16 %
|
|
1.17 %
|
|
1.18 %
|
|
1.20 %
|
|
Net charge-offs /
average loans (annualized)
|
0.20
|
|
0.24
|
|
0.24
|
|
0.25
|
|
0.45
|
|
Nonperforming loans /
total loans
|
0.95
|
|
1.03
|
|
1.09
|
|
1.12
|
|
1.28
|
|
Nonperforming assets
/ total loans plus OREO
|
1.00
|
|
1.07
|
|
1.14
|
|
1.18
|
|
1.35
|
|
Allowance for loan
losses / nonperforming loans
|
120.73
|
|
111.91
|
|
107.19
|
|
105.84
|
|
93.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Other ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
ratio
|
8.14 %
|
|
8.35 %
|
|
8.34 %
|
|
8.26 %
|
|
8.24 %
|
|
Tangible common
equity ratio
|
7.45
|
|
7.64
|
|
7.62
|
|
7.53
|
|
7.49
|
|
Tier 1 risk-based
capital ratio (a)
|
12.96
|
|
13.06
|
|
12.97
|
|
13.07
|
|
13.07
|
|
Total risk-based
capital (a)
|
14.06
|
|
14.17
|
|
14.09
|
|
14.20
|
|
14.21
|
|
Tier 1 common equity
/ risk-weighted assets (a)
|
11.44
|
|
11.50
|
|
11.40
|
|
11.45
|
|
11.43
|
|
Shareholders' equity
/ total assets
|
10.31
|
|
10.59
|
|
10.61
|
|
10.58
|
|
10.59
|
|
Net interest
margin
|
3.17
|
|
3.17
|
|
3.19
|
|
3.26
|
|
3.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and equity
related:
|
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
2,171,032
|
|
$
2,159,201
|
|
$
2,132,829
|
|
$
2,087,980
|
|
$
2,057,539
|
|
Book value per common
share
|
23.99
|
|
23.93
|
|
23.63
|
|
23.13
|
|
22.77
|
|
Tangible book value
per common share
|
18.10
|
|
18.02
|
|
17.72
|
|
17.21
|
|
16.85
|
|
Common stock closing
price
|
32.53
|
|
29.14
|
|
31.54
|
|
31.06
|
|
31.18
|
|
Dividends declared
per common share
|
0.20
|
|
0.20
|
|
0.20
|
|
0.15
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
90,512
|
|
90,248
|
|
90,246
|
|
90,269
|
|
90,367
|
|
Basic shares
(weighted average)
|
90,045
|
|
89,888
|
|
89,776
|
|
89,880
|
|
89,887
|
|
Diluted shares
(weighted average)
|
90,741
|
|
90,614
|
|
90,528
|
|
90,658
|
|
90,602
|
|
|
(a) The ratios
presented are projected for December 31,2014 and actual for the
remaining periods presented.
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
|
(In
thousands)
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
Assets:
|
|
|
|
|
|
|
Cash and due from
banks
|
$
261,544
|
|
$
207,128
|
|
$
223,616
|
|
Interest-bearing
deposits
|
132,695
|
|
105,394
|
|
23,674
|
|
Investment
securities:
|
|
|
|
|
|
|
Available for sale,
at fair value
|
2,793,873
|
|
2,873,886
|
|
3,106,931
|
|
Held to
maturity
|
3,872,955
|
|
3,641,979
|
|
3,358,721
|
|
Total
securities
|
6,666,828
|
|
6,515,865
|
|
6,465,652
|
|
Loans held for
sale
|
67,952
|
|
26,083
|
|
20,802
|
|
Loans:
|
|
|
|
|
|
|
Commercial
|
4,287,021
|
|
4,122,141
|
|
3,743,301
|
|
Commercial real
estate
|
3,554,428
|
|
3,354,107
|
|
3,058,362
|
|
Residential
mortgages
|
3,509,175
|
|
3,455,354
|
|
3,361,425
|
|
Consumer
|
2,549,401
|
|
2,581,900
|
|
2,536,688
|
|
Total
loans
|
13,900,025
|
|
13,513,502
|
|
12,699,776
|
|
Allowance for loan
losses
|
(159,264)
|
|
(156,482)
|
|
(152,573)
|
|
Loans,
net
|
13,740,761
|
|
13,357,020
|
|
12,547,203
|
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
193,290
|
|
171,174
|
|
158,878
|
|
Premises and
equipment, net
|
121,933
|
|
118,608
|
|
121,605
|
|
Goodwill and other
intangible assets, net
|
532,553
|
|
532,969
|
|
535,238
|
|
Cash surrender value
of life insurance policies
|
440,073
|
|
438,100
|
|
430,535
|
|
Deferred tax asset,
net
|
74,077
|
|
62,884
|
|
65,109
|
|
Accrued interest
receivable and other assets
|
301,304
|
|
291,657
|
|
260,687
|
|
Total
Assets
|
$
22,533,010
|
|
$ 21,826,882
|
|
$ 20,852,999
|
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Demand
|
$
3,598,872
|
|
$
3,256,741
|
|
$
3,128,152
|
|
Interest-bearing
checking
|
3,979,846
|
|
3,871,152
|
|
3,467,601
|
|
Money
market
|
1,908,522
|
|
2,239,106
|
|
2,167,593
|
|
Savings
|
3,892,778
|
|
3,877,673
|
|
3,863,930
|
|
Certificates of
deposit
|
1,971,567
|
|
2,007,942
|
|
2,079,027
|
|
Brokered certificates
of deposit
|
300,020
|
|
294,304
|
|
148,117
|
|
Total
deposits
|
15,651,605
|
|
15,546,918
|
|
14,854,420
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,250,756
|
|
1,236,975
|
|
1,331,662
|
|
Federal Home Loan
Bank advances
|
2,859,431
|
|
2,290,204
|
|
2,052,421
|
|
Long-term
debt
|
226,237
|
|
226,208
|
|
228,365
|
|
Accrued expenses and
other liabilities
|
222,300
|
|
215,727
|
|
176,943
|
|
Total
liabilities
|
20,210,329
|
|
19,516,032
|
|
18,643,811
|
|
|
|
|
|
|
|
|
Preferred
stock
|
151,649
|
|
151,649
|
|
151,649
|
|
Common shareholders'
equity
|
2,171,032
|
|
2,159,201
|
|
2,057,539
|
|
Webster Financial
Corporation shareholders' equity
|
2,322,681
|
|
2,310,850
|
|
2,209,188
|
|
Total Liabilities
and Equity
|
$
22,533,010
|
|
$ 21,826,882
|
|
$ 20,852,999
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
(In thousands,
except per share data)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
132,604
|
|
$
124,110
|
|
$
511,612
|
|
$
489,372
|
|
Interest and
dividends on securities
|
50,921
|
|
51,294
|
|
206,472
|
|
196,200
|
|
Loans held for
sale
|
226
|
|
307
|
|
857
|
|
2,068
|
|
Total interest
income
|
183,751
|
|
175,711
|
|
718,941
|
|
687,640
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
11,322
|
|
10,800
|
|
44,162
|
|
46,582
|
|
Borrowings
|
11,781
|
|
11,027
|
|
46,338
|
|
44,330
|
|
Total interest
expense
|
23,103
|
|
21,827
|
|
90,500
|
|
90,912
|
|
Net interest
income
|
160,648
|
|
153,884
|
|
628,441
|
|
596,728
|
|
Provision for loan
losses
|
9,500
|
|
9,000
|
|
37,250
|
|
33,500
|
|
Net interest
income after provision for loan losses
|
151,148
|
|
144,884
|
|
591,191
|
|
563,228
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
25,928
|
|
25,182
|
|
103,431
|
|
98,968
|
|
Loan related
fees
|
8,361
|
|
5,930
|
|
23,212
|
|
21,860
|
|
Wealth and investment
services
|
8,517
|
|
9,990
|
|
34,946
|
|
34,771
|
|
Mortgage banking
activities
|
977
|
|
2,775
|
|
4,070
|
|
16,359
|
|
Increase in cash
surrender value of life insurance policies
|
3,278
|
|
3,422
|
|
13,178
|
|
13,770
|
|
Net gain on
investment securities
|
1,121
|
|
4
|
|
5,499
|
|
712
|
|
Other
income
|
6,492
|
|
4,238
|
|
18,917
|
|
11,887
|
|
|
54,674
|
|
51,541
|
|
203,253
|
|
198,327
|
|
Loss on write-down of
investment securities to fair value
|
(899)
|
|
(7,277)
|
|
(1,145)
|
|
(7,277)
|
|
Total non-interest
income
|
53,775
|
|
44,264
|
|
202,108
|
|
191,050
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
71,220
|
|
68,155
|
|
270,151
|
|
264,835
|
|
Occupancy
|
11,518
|
|
12,084
|
|
47,325
|
|
48,794
|
|
Technology and
equipment expense
|
15,827
|
|
14,583
|
|
61,993
|
|
60,326
|
|
Marketing
|
3,918
|
|
3,225
|
|
15,379
|
|
15,502
|
|
Professional and
outside services
|
1,855
|
|
3,601
|
|
8,296
|
|
9,532
|
|
Intangible assets
amortization
|
416
|
|
1,193
|
|
2,685
|
|
4,919
|
|
Foreclosed and
repossessed asset expenses
|
244
|
|
400
|
|
1,223
|
|
1,338
|
|
Foreclosed and
repossessed asset gains
|
(238)
|
|
(229)
|
|
(1,297)
|
|
(1,295)
|
|
Loan workout
expenses
|
685
|
|
1,370
|
|
3,507
|
|
6,216
|
|
Deposit
insurance
|
5,856
|
|
5,116
|
|
22,670
|
|
21,114
|
|
Other
expenses
|
16,288
|
|
15,547
|
|
67,177
|
|
61,129
|
|
|
127,589
|
|
125,045
|
|
499,109
|
|
492,410
|
|
Debt prepayment
penalties
|
—
|
|
—
|
|
—
|
|
43
|
|
Severance, contract,
and other
|
633
|
|
389
|
|
964
|
|
4,284
|
|
Acquisition
costs
|
396
|
|
—
|
|
540
|
|
—
|
|
Branch and facility
optimization
|
276
|
|
1,205
|
|
125
|
|
1,322
|
|
Provision for
litigation and settlements
|
1,400
|
|
—
|
|
1,400
|
|
—
|
|
Total non-interest
expense
|
130,294
|
|
126,639
|
|
502,138
|
|
498,059
|
|
Income before income
taxes
|
74,629
|
|
62,509
|
|
291,161
|
|
256,219
|
|
Income tax
expense
|
23,614
|
|
18,755
|
|
91,409
|
|
76,670
|
|
Net
income
|
51,015
|
|
43,754
|
|
199,752
|
|
179,549
|
|
Preferred stock
dividends
|
(2,639)
|
|
(2,639)
|
|
(10,556)
|
|
(10,803)
|
|
Net income
available to common shareholders
|
$
48,376
|
|
$
41,115
|
|
$
189,196
|
|
$
168,746
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
90,741
|
|
90,602
|
|
90,620
|
|
90,261
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
0.46
|
|
$
2.10
|
|
$
1.90
|
|
Diluted
|
0.53
|
|
0.45
|
|
2.08
|
|
1.86
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Consolidated Statements of Income
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
(In thousands,
except per share data)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
132,604
|
|
$
129,227
|
|
$
125,771
|
|
$
124,010
|
|
$
124,110
|
|
Interest and
dividends on securities
|
50,921
|
|
50,448
|
|
51,511
|
|
53,592
|
|
51,294
|
|
Loans held for
sale
|
226
|
|
239
|
|
215
|
|
177
|
|
307
|
|
Total interest
income
|
183,751
|
|
179,914
|
|
177,497
|
|
177,779
|
|
175,711
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,322
|
|
11,345
|
|
10,851
|
|
10,644
|
|
10,800
|
|
Borrowings
|
11,781
|
|
11,199
|
|
11,524
|
|
11,834
|
|
11,027
|
|
Total interest
expense
|
23,103
|
|
22,544
|
|
22,375
|
|
22,478
|
|
21,827
|
|
Net interest
income
|
160,648
|
|
157,370
|
|
155,122
|
|
155,301
|
|
153,884
|
|
Provision for loan
losses
|
9,500
|
|
9,500
|
|
9,250
|
|
9,000
|
|
9,000
|
|
Net interest
income after provision for loan losses
|
151,148
|
|
147,870
|
|
145,872
|
|
146,301
|
|
144,884
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
25,928
|
|
26,489
|
|
26,302
|
|
24,712
|
|
25,182
|
|
Loan related
fees
|
8,361
|
|
5,479
|
|
4,890
|
|
4,482
|
|
5,930
|
|
Wealth and investment
services
|
8,517
|
|
8,762
|
|
8,829
|
|
8,838
|
|
9,990
|
|
Mortgage banking
activities
|
977
|
|
1,805
|
|
513
|
|
775
|
|
2,775
|
|
Increase in cash
surrender value of life insurance policies
|
3,278
|
|
3,346
|
|
3,296
|
|
3,258
|
|
3,422
|
|
Net gain on
investment securities
|
1,121
|
|
42
|
|
—
|
|
4,336
|
|
4
|
|
Other
income
|
6,492
|
|
5,071
|
|
3,839
|
|
3,515
|
|
4,238
|
|
|
54,674
|
|
50,994
|
|
47,669
|
|
49,916
|
|
51,541
|
|
Loss on write-down of
investment securities to fair value
|
(899)
|
|
(85)
|
|
(73)
|
|
(88)
|
|
(7,277)
|
|
Total non-interest
income
|
53,775
|
|
50,909
|
|
47,596
|
|
49,828
|
|
44,264
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
71,220
|
|
66,849
|
|
65,711
|
|
66,371
|
|
68,155
|
|
Occupancy
|
11,518
|
|
11,557
|
|
11,491
|
|
12,759
|
|
12,084
|
|
Technology and
equipment expense
|
15,827
|
|
15,419
|
|
15,737
|
|
15,010
|
|
14,583
|
|
Marketing
|
3,918
|
|
4,032
|
|
4,249
|
|
3,180
|
|
3,225
|
|
Professional and
outside services
|
1,855
|
|
2,470
|
|
1,269
|
|
2,702
|
|
3,601
|
|
Intangible assets
amortization
|
416
|
|
432
|
|
669
|
|
1,168
|
|
1,193
|
|
Foreclosed and
repossessed asset expenses
|
244
|
|
387
|
|
134
|
|
458
|
|
400
|
|
Foreclosed and
repossessed asset gains
|
(238)
|
|
(225)
|
|
(574)
|
|
(260)
|
|
(229)
|
|
Loan workout
expenses
|
685
|
|
969
|
|
801
|
|
1,052
|
|
1,370
|
|
Deposit
insurance
|
5,856
|
|
5,938
|
|
5,565
|
|
5,311
|
|
5,116
|
|
Other
expenses
|
16,288
|
|
17,227
|
|
17,008
|
|
16,654
|
|
15,547
|
|
|
127,589
|
|
125,055
|
|
122,060
|
|
124,405
|
|
125,045
|
|
Severance, contract,
and other
|
633
|
|
42
|
|
267
|
|
22
|
|
389
|
|
Acquisition
costs
|
396
|
|
144
|
|
—
|
|
—
|
|
—
|
|
Branch and facility
optimization
|
276
|
|
(599)
|
|
258
|
|
190
|
|
1,205
|
|
Provision for
litigation and settlements
|
1,400
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total non-interest
expense
|
130,294
|
|
124,642
|
|
122,585
|
|
124,617
|
|
126,639
|
|
Income before income
taxes
|
74,629
|
|
74,137
|
|
70,883
|
|
71,512
|
|
62,509
|
|
Income tax
expense
|
23,614
|
|
23,679
|
|
23,027
|
|
21,089
|
|
18,755
|
|
Net
income
|
51,015
|
|
50,458
|
|
47,856
|
|
50,423
|
|
43,754
|
|
Preferred stock
dividends
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
(2,639)
|
|
Net income
available to common shareholders
|
$
48,376
|
|
$
47,819
|
|
$
45,217
|
|
$
47,784
|
|
$
41,115
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
(average)
|
90,741
|
|
90,614
|
|
90,528
|
|
90,658
|
|
90,602
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share available to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
0.53
|
|
$
0.50
|
|
$
0.53
|
|
$
0.46
|
|
Diluted
|
0.53
|
|
0.53
|
|
0.50
|
|
0.53
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
13,715,522
|
|
$
133,141
|
|
3.83 %
|
|
$ 12,548,193
|
|
$
124,540
|
|
3.92 %
|
|
Investment securities
(a)
|
6,522,767
|
|
51,778
|
|
3.19
|
|
6,327,569
|
|
53,141
|
|
3.37
|
|
Federal Home Loan and
Federal Reserve Bank stock
|
177,324
|
|
1,206
|
|
2.70
|
|
158,878
|
|
862
|
|
2.15
|
|
Interest-bearing
deposits
|
43,864
|
|
28
|
|
0.25
|
|
15,190
|
|
11
|
|
0.28
|
|
Loans held for
sale
|
25,427
|
|
226
|
|
3.55
|
|
30,645
|
|
307
|
|
4.01
|
|
Total
interest-earning assets
|
20,484,904
|
|
$
186,379
|
|
3.61 %
|
|
19,080,475
|
|
$
178,861
|
|
3.72 %
|
|
Non-interest-earning
assets
|
1,545,106
|
|
|
|
|
|
1,495,745
|
|
|
|
|
|
Total
assets
|
$
22,030,010
|
|
|
|
|
|
$ 20,576,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,364,956
|
|
$
—
|
|
—%
|
|
$
3,038,618
|
|
$
—
|
|
—%
|
|
Savings, interest
checking, and money market
|
9,912,875
|
|
4,359
|
|
0.17
|
|
9,618,539
|
|
4,668
|
|
0.19
|
|
Certificates of
deposit
|
2,288,075
|
|
6,963
|
|
1.21
|
|
2,248,483
|
|
6,132
|
|
1.08
|
|
Total
deposits
|
15,565,906
|
|
11,322
|
|
0.29
|
|
14,905,640
|
|
10,800
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,282,805
|
|
4,514
|
|
1.38
|
|
1,320,820
|
|
5,278
|
|
1.56
|
|
Federal Home Loan
Bank advances
|
2,444,900
|
|
4,857
|
|
0.78
|
|
1,734,177
|
|
3,930
|
|
0.89
|
|
Long-term
debt
|
226,218
|
|
2,410
|
|
4.26
|
|
228,741
|
|
1,819
|
|
3.18
|
|
Total
borrowings
|
3,953,923
|
|
11,781
|
|
1.17
|
|
3,283,738
|
|
11,027
|
|
1.32
|
|
Total
interest-bearing liabilities
|
19,519,829
|
|
$
23,103
|
|
0.47 %
|
|
18,189,378
|
|
$
21,827
|
|
0.47 %
|
|
Non-interest-bearing
liabilities
|
169,475
|
|
|
|
|
|
194,758
|
|
|
|
|
|
Total
liabilities
|
19,689,304
|
|
|
|
|
|
18,384,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
151,649
|
|
|
|
|
|
151,649
|
|
|
|
|
|
Common shareholders'
equity
|
2,189,057
|
|
|
|
|
|
2,040,435
|
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,340,706
|
|
|
|
|
|
2,192,084
|
|
|
|
|
|
Total liabilities and
equity
|
$
22,030,010
|
|
|
|
|
|
$ 20,576,220
|
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
163,276
|
|
|
|
|
|
157,034
|
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(2,628)
|
|
|
|
|
|
(3,150)
|
|
|
|
Net interest
income
|
|
|
$
160,648
|
|
|
|
|
|
$
153,884
|
|
|
|
Net interest
margin
|
|
|
|
|
3.17 %
|
|
|
|
|
|
3.27 %
|
|
|
|
(a) For purposes
of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average
balance.
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Yields, and Rates Paid
(unaudited)
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
(Dollars in
thousands)
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
|
Average
balance
|
|
Interest
|
|
Fully tax-
equivalent
yield/rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
13,275,340
|
|
$
513,705
|
|
3.87 %
|
|
$ 12,235,821
|
|
$
490,985
|
|
4.01 %
|
Investment securities
(a)
|
6,446,799
|
|
210,721
|
|
3.28
|
|
6,268,889
|
|
204,287
|
|
3.28
|
Federal Home Loan and
Federal Reserve Bank stock
|
168,036
|
|
4,719
|
|
2.81
|
|
158,233
|
|
3,437
|
|
2.17
|
Interest-bearing
deposits
|
24,376
|
|
63
|
|
0.26
|
|
21,800
|
|
84
|
|
0.39
|
Loans held for
sale
|
22,642
|
|
857
|
|
3.78
|
|
63,870
|
|
2,068
|
|
3.24
|
Total
interest-earning assets
|
19,937,193
|
|
$
730,065
|
|
3.67 %
|
|
18,748,613
|
|
$
700,861
|
|
3.74 %
|
Non-interest-earning
assets
|
1,523,606
|
|
|
|
|
|
1,513,906
|
|
|
|
|
Total
assets
|
$
21,460,799
|
|
|
|
|
|
$ 20,262,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
3,216,777
|
|
$
—
|
|
—%
|
|
$
2,939,324
|
|
$
—
|
|
—%
|
Savings, interest
checking, and money market
|
9,863,703
|
|
17,800
|
|
0.18
|
|
9,511,386
|
|
18,376
|
|
0.19
|
Certificates of
deposit
|
2,280,668
|
|
26,362
|
|
1.16
|
|
2,357,321
|
|
28,206
|
|
1.20
|
Total
deposits
|
15,361,148
|
|
44,162
|
|
0.29
|
|
14,808,031
|
|
46,582
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
1,353,308
|
|
19,388
|
|
1.43
|
|
1,228,002
|
|
20,800
|
|
1.69
|
Federal Home Loan
Bank advances
|
2,038,749
|
|
16,909
|
|
0.83
|
|
1,652,471
|
|
16,229
|
|
0.98
|
Long-term
debt
|
252,368
|
|
10,041
|
|
3.98
|
|
233,850
|
|
7,301
|
|
3.12
|
Total
borrowings
|
3,644,425
|
|
46,338
|
|
1.27
|
|
3,114,323
|
|
44,330
|
|
1.42
|
Total
interest-bearing liabilities
|
19,005,573
|
|
$
90,500
|
|
0.48 %
|
|
17,922,354
|
|
$
90,912
|
|
0.51 %
|
Non-interest-bearing
liabilities
|
165,661
|
|
|
|
|
|
190,452
|
|
|
|
|
Total
liabilities
|
19,171,234
|
|
|
|
|
|
18,112,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
151,649
|
|
|
|
|
|
151,649
|
|
|
|
|
Common shareholders'
equity
|
2,137,916
|
|
|
|
|
|
1,998,064
|
|
|
|
|
Webster Financial
Corp. shareholders' equity
|
2,289,565
|
|
|
|
|
|
2,149,713
|
|
|
|
|
Total liabilities
and equity
|
$
21,460,799
|
|
|
|
|
|
$ 20,262,519
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
639,565
|
|
|
|
|
|
609,949
|
|
|
Less: tax-equivalent
adjustment
|
|
|
(11,124)
|
|
|
|
|
|
(13,221)
|
|
|
Net interest
income
|
|
|
$
628,441
|
|
|
|
|
|
$
596,728
|
|
|
Net interest
margin
|
|
|
|
|
3.21 %
|
|
|
|
|
|
3.26 %
|
|
(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 Balances (unaudited)
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
|
Loan Balances
(actuals):
|
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,087,940
|
|
$
2,984,949
|
|
$
2,978,576
|
|
$
2,926,223
|
|
$
2,723,566
|
|
Equipment
financing
|
537,751
|
|
490,150
|
|
464,948
|
|
457,670
|
|
460,450
|
|
Asset-based
lending
|
661,330
|
|
647,042
|
|
624,565
|
|
585,615
|
|
559,285
|
|
Commercial real
estate
|
3,554,428
|
|
3,354,107
|
|
3,291,892
|
|
3,143,612
|
|
3,058,362
|
|
Residential
mortgages
|
3,509,174
|
|
3,455,353
|
|
3,366,091
|
|
3,356,538
|
|
3,361,424
|
|
Consumer
|
2,457,345
|
|
2,485,870
|
|
2,449,730
|
|
2,422,377
|
|
2,431,786
|
|
Total continuing
portfolio
|
13,807,968
|
|
13,417,471
|
|
13,175,802
|
|
12,892,035
|
|
12,594,873
|
|
Allowance for loan
losses
|
(149,813)
|
|
(145,818)
|
|
(143,440)
|
|
(141,352)
|
|
(137,821)
|
|
Total continuing
portfolio, net
|
13,658,155
|
|
13,271,653
|
|
13,032,362
|
|
12,750,683
|
|
12,457,052
|
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
National Construction
Lending Center (NCLC)
|
1
|
|
1
|
|
1
|
|
1
|
|
1
|
|
Consumer
|
92,056
|
|
96,030
|
|
99,577
|
|
102,706
|
|
104,902
|
|
Total liquidating
portfolio
|
92,057
|
|
96,031
|
|
99,578
|
|
102,707
|
|
104,903
|
|
Allowance for loan
losses
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
|
(12,248)
|
|
(14,752)
|
|
Total liquidating
portfolio, net
|
82,606
|
|
85,367
|
|
88,150
|
|
90,459
|
|
90,151
|
|
Total Loan
Balances (actuals)
|
13,900,025
|
|
13,513,502
|
|
13,275,380
|
|
12,994,742
|
|
12,699,776
|
|
Allowance for loan
losses
|
(159,264)
|
|
(156,482)
|
|
(154,868)
|
|
(153,600)
|
|
(152,573)
|
|
Loans,
net
|
$
13,740,761
|
|
$ 13,357,020
|
|
$ 13,120,512
|
|
$ 12,841,142
|
|
$ 12,547,203
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Balances
(average):
|
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
3,036,412
|
|
$
2,987,403
|
|
$
2,963,150
|
|
$
2,853,516
|
|
$
2,625,654
|
|
Equipment
financing
|
509,331
|
|
478,333
|
|
459,140
|
|
456,391
|
|
436,328
|
|
Asset-based
lending
|
647,952
|
|
621,856
|
|
612,170
|
|
562,443
|
|
587,039
|
|
Commercial real
estate
|
3,452,954
|
|
3,329,767
|
|
3,195,746
|
|
3,080,575
|
|
3,003,837
|
|
Residential
mortgages
|
3,483,444
|
|
3,409,010
|
|
3,361,276
|
|
3,364,746
|
|
3,359,186
|
|
Consumer
|
2,491,359
|
|
2,467,839
|
|
2,437,452
|
|
2,431,900
|
|
2,429,354
|
|
Total continuing
portfolio
|
13,621,452
|
|
13,294,208
|
|
13,028,934
|
|
12,749,571
|
|
12,441,398
|
|
Allowance for loan
losses
|
(150,706)
|
|
(146,863)
|
|
(143,811)
|
|
(143,676)
|
|
(141,460)
|
|
Total continuing
portfolio, net
|
13,470,746
|
|
13,147,345
|
|
12,885,123
|
|
12,605,895
|
|
12,299,938
|
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
NCLC
|
1
|
|
1
|
|
53
|
|
1
|
|
1
|
|
Consumer
|
94,069
|
|
97,661
|
|
100,878
|
|
103,777
|
|
106,794
|
|
Total liquidating
portfolio
|
94,070
|
|
97,662
|
|
100,931
|
|
103,778
|
|
106,795
|
|
Allowance for loan
losses
|
(9,451)
|
|
(10,664)
|
|
(11,428)
|
|
(12,248)
|
|
(14,752)
|
|
Total liquidating
portfolio, net
|
84,619
|
|
86,998
|
|
89,503
|
|
91,530
|
|
92,043
|
|
Total Loan
Balances (average)
|
13,715,522
|
|
13,391,870
|
|
13,129,865
|
|
12,853,349
|
|
12,548,193
|
|
Allowance for loan
losses
|
(160,157)
|
|
(157,527)
|
|
(155,239)
|
|
(155,924)
|
|
(156,212)
|
|
Loans,
net
|
$
13,555,365
|
|
$ 13,234,343
|
|
$ 12,974,626
|
|
$ 12,697,425
|
|
$ 12,391,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets (unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014(a)
|
|
December 31,
2013
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
6,436
|
|
$
12,421
|
|
$
14,152
|
|
$
12,869
|
|
$
10,933
|
Equipment
financing
|
518
|
|
1,659
|
|
863
|
|
1,325
|
|
1,141
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
18,675
|
|
18,341
|
|
19,023
|
|
20,009
|
|
17,663
|
Residential
mortgages
|
66,061
|
|
68,280
|
|
68,439
|
|
66,373
|
|
81,370
|
Consumer
|
35,770
|
|
34,566
|
|
36,526
|
|
38,670
|
|
45,573
|
Nonperforming loans -
continuing portfolio
|
127,460
|
|
135,267
|
|
139,003
|
|
139,246
|
|
156,680
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
4,460
|
|
4,560
|
|
5,475
|
|
5,875
|
|
6,245
|
Total
nonperforming loans
|
$
131,920
|
|
$
139,827
|
|
$
144,478
|
|
$
145,121
|
|
$
162,925
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
2,899
|
|
$
2,899
|
|
$
3,238
|
|
$
3,466
|
|
$
3,618
|
Repossessed
equipment
|
100
|
|
100
|
|
100
|
|
123
|
|
134
|
Residential
|
2,280
|
|
1,712
|
|
2,748
|
|
3,721
|
|
4,648
|
Consumer
|
1,237
|
|
515
|
|
643
|
|
469
|
|
282
|
Total continuing
portfolio
|
6,516
|
|
5,226
|
|
6,729
|
|
7,779
|
|
8,682
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Total liquidating
portfolio
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total other real
estate owned and repossessed assets
|
$
6,516
|
|
$
5,226
|
|
$
6,729
|
|
$
7,779
|
|
$
8,682
|
Total
nonperforming assets
|
$
138,436
|
|
$
145,053
|
|
$
151,207
|
|
$
152,900
|
|
$
171,607
|
|
(a) The decreases
reflect the reclassification of $17.6 million of residential and
consumer loans as accruing in the quarter under regulatory
guidance.
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Past Due Loans (unaudited)
|
|
|
|
|
|
(Dollars in
thousands)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
Continuing
Portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
2,099
|
|
$
8,795
|
|
$
5,045
|
|
$
7,913
|
|
$
4,100
|
Equipment
financing
|
701
|
|
433
|
|
290
|
|
698
|
|
362
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial real
estate
|
2,714
|
|
1,625
|
|
1,610
|
|
2,680
|
|
4,897
|
Residential
mortgages
|
17,216
|
|
15,980
|
|
17,826
|
|
18,966
|
|
18,285
|
Consumer
|
15,867
|
|
15,852
|
|
18,956
|
|
14,552
|
|
18,926
|
Past due 30-89 days -
continuing portfolio
|
38,597
|
|
42,685
|
|
43,727
|
|
44,809
|
|
46,570
|
Liquidating
Portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer
|
1,658
|
|
1,419
|
|
2,105
|
|
2,325
|
|
1,806
|
Total past due
30-89 days
|
40,255
|
|
44,104
|
|
45,832
|
|
47,134
|
|
48,376
|
Loans past due 90
days or more and accruing
|
48
|
|
1,241
|
|
1,111
|
|
850
|
|
4,501
|
Total past due
loans
|
$
40,303
|
|
$
45,345
|
|
$
46,943
|
|
$
47,984
|
|
$
52,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Loan Losses
(unaudited)
|
|
|
|
|
|
For the Three
Months Ended
|
(Dollars in
thousands)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
Beginning
balance
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
|
$
152,573
|
|
$
157,545
|
Provision
|
9,500
|
|
9,500
|
|
9,250
|
|
9,000
|
|
9,000
|
Charge-offs
continuing portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
4,097
|
|
2,738
|
|
3,685
|
|
3,148
|
|
5,383
|
Equipment
financing
|
84
|
|
491
|
|
20
|
|
—
|
|
178
|
Asset-based
lending
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
Commercial real
estate
|
246
|
|
139
|
|
447
|
|
2,405
|
|
5,086
|
Residential
mortgages
|
1,346
|
|
1,870
|
|
1,840
|
|
1,158
|
|
2,744
|
Consumer
|
3,648
|
|
5,078
|
|
4,075
|
|
4,517
|
|
4,402
|
Charge-offs
continuing portfolio
|
9,421
|
|
10,316
|
|
10,067
|
|
11,228
|
|
17,796
|
Charge-offs
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Consumer
|
563
|
|
1,251
|
|
1,211
|
|
369
|
|
1,070
|
Charge-offs
liquidating portfolio
|
563
|
|
1,251
|
|
1,211
|
|
369
|
|
1,070
|
Total
charge-offs
|
9,984
|
|
11,567
|
|
11,278
|
|
11,597
|
|
18,866
|
Recoveries continuing
portfolio:
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
1,258
|
|
967
|
|
1,121
|
|
950
|
|
2,029
|
Equipment
financing
|
702
|
|
336
|
|
397
|
|
799
|
|
630
|
Asset-based
lending
|
—
|
|
50
|
|
—
|
|
23
|
|
11
|
Commercial real
estate
|
217
|
|
120
|
|
69
|
|
479
|
|
750
|
Residential
mortgages
|
291
|
|
250
|
|
495
|
|
108
|
|
445
|
Consumer
|
636
|
|
1,770
|
|
923
|
|
865
|
|
769
|
Recoveries continuing
portfolio
|
3,104
|
|
3,493
|
|
3,005
|
|
3,224
|
|
4,634
|
Recoveries
liquidating portfolio:
|
|
|
|
|
|
|
|
|
|
NCLC
|
5
|
|
11
|
|
12
|
|
152
|
|
115
|
Consumer
|
157
|
|
177
|
|
279
|
|
248
|
|
145
|
Recoveries
liquidating portfolio
|
162
|
|
188
|
|
291
|
|
400
|
|
260
|
Total
recoveries
|
3,266
|
|
3,681
|
|
3,296
|
|
3,624
|
|
4,894
|
Total net
charge-offs
|
6,718
|
|
7,886
|
|
7,982
|
|
7,973
|
|
13,972
|
Ending
balance
|
$
159,264
|
|
$
156,482
|
|
$
154,868
|
|
$
153,600
|
|
$
152,573
|
|
|
|
|
|
|
|
|
|
|
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
December 31, 2014, September 30, 2014, June 30, 2014, March 31,
2014, and December 31, 2013. 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)
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December 31,
2013
|
|
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
|
$
48,376
|
|
$
47,819
|
|
$
45,217
|
|
$
47,784
|
|
$
41,115
|
|
Amortization of
intangibles (tax-affected @ 35%)
|
270
|
|
281
|
|
435
|
|
759
|
|
775
|
|
Quarterly net income
adjusted for amortization of intangibles
|
48,646
|
|
48,100
|
|
45,652
|
|
48,543
|
|
41,890
|
|
Annualized net
income used in the return on average tangible common shareholders'
equity ratio
|
$
194,584
|
|
$
192,400
|
|
$
182,608
|
|
$
194,172
|
|
$
167,560
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
average common shareholders' equity to average tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$
2,189,057
|
|
$
2,155,103
|
|
$
2,119,016
|
|
$
2,087,179
|
|
$
2,040,435
|
|
Average
goodwill
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
Average intangible
assets (excluding mortgage servicing rights)
|
(2,862)
|
|
(3,294)
|
|
(3,762)
|
|
(4,754)
|
|
(5,922)
|
|
Average tangible
common shareholders' equity
|
$
1,656,308
|
|
$
1,621,922
|
|
$
1,585,367
|
|
$
1,552,538
|
|
$
1,504,626
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end shareholders' equity to period-end tangible
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,322,681
|
|
$
2,310,850
|
|
$
2,284,478
|
|
$
2,239,629
|
|
$
2,209,188
|
|
Goodwill
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
Intangible assets
(excluding mortgage servicing rights)
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
|
(4,183)
|
|
(5,351)
|
|
Tangible
shareholders' equity
|
$
1,790,128
|
|
$
1,777,881
|
|
$
1,751,076
|
|
$
1,705,559
|
|
$
1,673,950
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end common shareholders' equity to period-end tangible
common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
2,322,681
|
|
$
2,310,850
|
|
$
2,284,478
|
|
$
2,239,629
|
|
$
2,209,188
|
|
Preferred
stock
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
|
(151,649)
|
|
Common shareholders'
equity
|
2,171,032
|
|
2,159,201
|
|
2,132,829
|
|
2,087,980
|
|
2,057,539
|
|
Goodwill
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
Intangible assets
(excluding mortgage servicing rights)
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
|
(4,183)
|
|
(5,351)
|
|
Tangible common
shareholders' equity
|
$
1,638,479
|
|
$
1,626,232
|
|
$
1,599,427
|
|
$
1,553,910
|
|
$
1,522,301
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
22,533,010
|
|
$ 21,826,882
|
|
$ 21,524,337
|
|
$ 21,175,745
|
|
$ 20,852,999
|
|
Goodwill
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
(529,887)
|
|
Intangible assets
(excluding mortgage servicing rights)
|
(2,666)
|
|
(3,082)
|
|
(3,515)
|
|
(4,183)
|
|
(5,351)
|
|
Tangible
assets
|
$
22,000,457
|
|
$ 21,293,913
|
|
$ 20,990,935
|
|
$ 20,641,675
|
|
$ 20,317,761
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
$
2,171,032
|
|
$
2,159,201
|
|
$
2,132,829
|
|
$
2,087,980
|
|
$
2,057,539
|
|
Ending common shares
issued and outstanding (in thousands)
|
90,512
|
|
90,248
|
|
90,246
|
|
90,269
|
|
90,367
|
|
Book value per
share of common stock
|
$
23.99
|
|
$
23.93
|
|
$
23.63
|
|
$
23.13
|
|
$
22.77
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$
1,638,479
|
|
$
1,626,232
|
|
$
1,599,427
|
|
$
1,553,910
|
|
$
1,522,301
|
|
Ending common shares
issued and outstanding (in thousands)
|
90,512
|
|
90,248
|
|
90,246
|
|
90,269
|
|
90,367
|
|
Tangible book
value per common share
|
$
18.10
|
|
$
18.02
|
|
$
17.72
|
|
$
17.21
|
|
$
16.85
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-interest expense to non-interest expense used in the efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
130,294
|
|
$
124,642
|
|
$
122,585
|
|
$
124,617
|
|
$
126,639
|
|
Foreclosed property
expense
|
(244)
|
|
(387)
|
|
(134)
|
|
(458)
|
|
(400)
|
|
Intangible assets
amortization
|
(416)
|
|
(432)
|
|
(669)
|
|
(1,168)
|
|
(1,193)
|
|
Other
expense
|
(2,467)
|
|
638
|
|
49
|
|
48
|
|
(1,365)
|
|
Non-interest
expense used in the efficiency ratio
|
$
127,167
|
|
$
124,461
|
|
$
121,831
|
|
$
123,039
|
|
$
123,681
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income to income used in the efficiency ratio
|
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
$
160,648
|
|
$
157,370
|
|
$
155,122
|
|
$
155,301
|
|
$
153,884
|
|
Fully
taxable-equivalent adjustment
|
2,628
|
|
2,700
|
|
2,783
|
|
3,013
|
|
3,150
|
|
Non-interest
income
|
53,775
|
|
50,909
|
|
47,596
|
|
49,828
|
|
44,264
|
|
Net gain on
investment securities
|
(1,121)
|
|
(42)
|
|
—
|
|
(4,336)
|
|
(4)
|
|
Other
|
899
|
|
85
|
|
73
|
|
88
|
|
7,277
|
|
Income used in the
efficiency ratio
|
$
216,829
|
|
$
211,022
|
|
$
205,574
|
|
$
203,894
|
|
$
208,571
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/webster-reports-2014-fourth-quarter-earnings-300024137.html
SOURCE Webster Financial Corporation