Webster Financial Corporation
Consolidated Statements of Condition (unaudited)
June 30, June 30,
(Dollars in thousands) 1999 1998
Assets:
Cash and Due From
Depository Institutions $ 161,332 $ 144,556
Interest-bearing Deposits 6,658 9,005
Securities:
Trading, at Fair Value 70,561 77,527
Available for Sale, at Fair Value 2,693,847 3,285,305
Held to Maturity, (Fair Value:$338,802
in 1999; $375,777 in 1998) 346,826 374,192
Loans Receivable:
Residential Loans 3,802,376 3,832,334
Commercial Real Estate Loans 510,584 394,497
Commercial and Industrial Loans 534,224 245,357
Home Equity Loans 448,904 459,864
Other Consumer Loans 44,099 45,215
Allowance for Loan Losses (61,379) (56,604)
Loans Receivable, Net 5,278,808 4,920,663
Accrued Interest Receivable 55,883 53,287
Premises and Equipment, Net 85,883 77,944
Foreclosed Properties, Net 3,939 8,137
Intangible Assets 139,338 83,550
Cash Surrender Value of Life Insurance 144,788 102,662
Prepaid Expenses and Other Assets 69,127 52,315
Total Assets $ 9,056,990 $ 9,189,143
Liabilities and Shareholders' Equity:
Deposits:
Checking and NOW $ 1,202,577 $ 963,702
Savings and MMDAs 1,572,770 1,401,951
Certificates of Deposit 2,944,519 3,370,721
Total Deposits 5,719,866 5,736,374
Borrowed Funds 2,476,449 2,570,566
Accrued Expenses and Other Liabilities 95,660 134,200
Total Liabilities 8,291,975 8,441,140
Corporation-Obligated Mandatorily Redeemable
Capital Securities of Subsidiary Trusts 150,000 150,000
Preferred Stock of Subsidiary Corporation 49,577 49,577
Shareholders' Equity 565,438 548,426
Total Liabilities and
Shareholders' Equity $ 9,056,990 $ 9,189,143
Consolidated Statements of Income (unaudited)
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in thousands,
except per
share data) 1999 1998 1999 1998
Interest Income:
Loans $ 95,669 $ 95,035 $ 188,894 $ 192,893
Securities and
Interest-bearing
Deposits 49,844 64,593 102,528 125,934
Total Interest
Income 145,513 159,628 291,422 318,827
Interest Expense:
Deposits 46,906 57,018 95,486 113,693
Borrowings 31,519 42,959 65,261 82,086
Total Interest
Expense 78,425 99,977 160,747 195,779
Net Interest Income 67,088 59,651 130,675 123,048
Provision for
Loan Losses 2,100 1,900 4,100 3,800
Net Interest Income
After Provision for
Loan Losses 64,988 57,751 126,575 119,248
Noninterest Income:
Fees and Service
Charges 14,057 9,552 26,943 19,065
Gain on Sale of Loans
and Loan Servicing, Net 634 2,299 1,439 2,565
Gain on Sale
of Securities, Net 1,712 7,028 3,419 10,126
Other Noninterest
Income 3,757 2,931 7,856 5,380
Total Noninterest
Income 20,160 21,810 39,657 37,136
Noninterest Expenses:
Salaries and
Employee Benefits 21,430 19,219 42,396 38,756
Occupancy Expense
of Premises 4,434 3,892 8,771 7,767
Furniture and
Equipment Expenses 4,799 4,271 9,481 8,638
Intangible Amortization 3,091 2,363 5,610 4,662
Marketing Expenses 2,203 2,140 4,350 4,029
Other Operating
Expenses 9,416 8,833 18,152 17,629
45,373 40,718 88,760 81,481
Acquisition-Related
Expenses -- 17,400 -- 17,400
Capital Securities
Expense 3,662 3,692 7,323 7,354
Dividends on Preferred
Stock of Subsidiary
Corporation 980 1,038 2,000 2,076
Total Noninterest
Expenses 50,015 62,848 98,083 108,311
Income Before
Income Taxes 35,133 16,713 68,149 48,073
Income Taxes 11,946 7,313 23,171 18,952
Net Income $ 23,187 $ 9,400 $ 44,978 $ 29,121
Net Income Per Common
Share Before Acquisition
Related Expenses:
Basic $0.63 $0.59 $1.23 $1.12
Diluted $0.61 $0.58 $1.20 $1.09
Net Income Per Common
Share After Acquisition
Related Expenses:
Basic $0.63 $0.25 $1.23 $0.77
Diluted $0.61 $0.24 $1.20 $0.75
Selected Financial Highlights (unaudited)
At or For the At or For the
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in thousands,
except per share data) 1999 1998 1999 1998
Operating and Performance Ratios (annualized):
Return on Average Shareholders'
Equity Before Acquisition
Related Expenses 17.52 % 17.13 % 16.91 % 16.36 %
Return on Average Shareholders'
Equity After Acquisition
Related Expenses 17.52 7.13 16.91 11.25
Return on Average Assets
Before Acquisition
Related Expenses 1.04 0.94 1.01 0.89
Return on Average Assets
After Acquisition
Related Expenses 1.04 0.39 1.01 0.61
Noninterest Expenses
/ Average Assets 2.24 2.62 2.19 2.29
Noninterest Expenses Excl.
Foreclosed Property,
Acquisition Related,
Non-recurring, Capital Sec. ,
Pref. Div. & Intangible
Amortization Expenses
/ Avg. Assets 1.89 1.59 1.86 1.61
Efficiency Ratio (a) 55.33 59.45 55.71 58.00
Efficiency Ratio (b) 49.85 52.90 50.10 51.62
Shareholders' Equity
/ Total Assets 6.24 5.97 6.24 5.97
Interest Rate Spread 3.07 % 2.48 % 2.99 % 2.59 %
Net Interest Margin 3.20 % 2.64 % 3.12 % 2.76 %
Loan Originations:
Residential $ 295,797 $ 293,331 $ 603,235 $ 531,191
Commercial 111,502 57,929 208,542 92,783
Consumer 67,635 69,913 128,885 117,631
Asset Quality:
Nonaccrual Loans $ 31,058 $ 29,679 $ 31,058 $ 29,679
Nonaccrual Assets, Net 34,998 37,815 34,998 37,815
Allowance for Loan
Losses 61,379 56,604 61,379 56,604
Allowances for
Nonaccrual Assets 61,605 57,102 61,605 57,102
Nonaccrual Assets
/ Total Assets 0.39 % 0.41 % 0.39 % 0.41 %
Allowance for Loan Losses
/ Nonaccrual Loans 197.63 190.72 197.63 190.72
Allowances for
Nonaccrual Assets
/ Nonaccrual Assets 174.89 149.04 174.89 149.04
Share Related:
Book Value Per
Common Share $ 14.88 $ 14.31 $ 14.88 $ 14.31
Tangible Book Value
Per Common Share $ 11.21 $ 12.13 $ 11.21 $ 12.13
Common Stock
Closing Price $ 27.13 $ 33.25 $ 27.13 $ 33.25
Dividend Declared
Per Common Share $ 0.12 $ 0.11 $ 0.23 $ 0.21
Common Shares Issued
and Outstanding 38,008,607 38,326,963 38,008,607 38,326,963
Basic Shares 37,095,498 38,020,449 36,682,728 37,923,320
Diluted Shares 37,751,574 38,798,872 37,338,282 38,679,191
(a) Excludes Acquisition Related, Intangible Amortization and Foreclosed
Property Expenses.
(b) Excludes Acquisition Related, Intangible Amortization, Capital
Securities, Preferred Dividend and Foreclosed Property Expenses.
Retail and Wholesale Interest Rate Spreads (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended, |
June |
|
March |
|
December |
September |
June |
|
|
|
1999 |
|
1999 |
|
1998 |
|
1998 |
|
1998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Spread |
|
Total
Interest-Earning Assets |
6.95 |
% |
6.98 |
% |
7.07 |
% |
7.04 |
% |
7.00 |
% |
|
Total
Interest-Bearing Liabilities |
3.88 |
|
4.07 |
|
4.25 |
|
4.43 |
|
4.52 |
|
|
Interest
Rate Spread |
3.07 |
% |
2.91 |
% |
2.82 |
% |
2.61 |
% |
2.48 |
% |
|
Net
Interest Margin |
3.20 |
|
3.03 |
|
2.96 |
|
2.79 |
|
2.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Interest Rate Spread |
|
Yield on
Loans |
7.34 |
% |
7.40 |
% |
7.56 |
% |
7.60 |
% |
7.66 |
% |
|
Rate on
Deposits |
3.34 |
|
3.50 |
|
3.69 |
|
3.87 |
|
3.93 |
|
|
Spread |
4.00 |
% |
3.90 |
% |
3.87 |
% |
3.73 |
% |
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Interest Rate Spread |
|
Yield on
Securities |
6.31 |
% |
6.34 |
% |
6.40 |
% |
6.28 |
% |
6.21 |
% |
|
Rate on
Borrowings |
5.16 |
|
5.27 |
|
5.48 |
|
5.70 |
|
5.68 |
|
|
Spread |
1.15 |
% |
1.07 |
% |
0.92 |
% |
0.58 |
% |
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Average Statements of Condition (unaudited)
Three Months Ended June 30, 1999 1998
(Dollars Fully Tax Fully Tax
in Average Equivalent Average Equivalent
thousands) Balance Interest Yield/ Balance Interest Yield/
Rate Rate
Assets:
Interest-Earning Assets:
Loans $5,220,629 $95,669 7.34 %$4,953,184 $95,035 7.66 %
Securities 3,159,790 49,844 6.31 4,160,018 64,593 6.21
Total Interest-
Earning
Assets 8,380,419 145,513 6.95 9,113,202 159,628 7.00
Noninterest-
Earning Assets 544,095 496,665
Total
Assets $8,924,514 $9,609,867
Liabilities and
Shareholders' Equity:
Interest-Bearing
Liabilities:
Interest-bearing
Deposits $5,155,883 $46,906 3.65 %$5,387,901 $57,018 4.23 %
Noninterest-bearing
Deposits 487,446 -- -- 401,633 -- --
Federal Home
Loan Bank
Advances 1,413,323 18,413 5.23 1,787,126 25,658 5.68
Repurchase Agreements
and Other
Borrowings 994,721 12,191 4.92 1,166,881 16,386 5.56
Senior Notes 40,000 915 9.15 40,000 915 9.15
Total Interest-
Bearing
Liabilities 8,091,373 78,425 3.88 8,783,541 99,977 4.52
Noninterest-Bearing
Other Liabilities 104,071 99,057
Total
Liabilities 8,195,444 8,882,598
Capital Securities
and Preferred Stock of
Subsidiary
Corporation 199,577 199,577
Shareholders'
Equity 529,493 527,692
Total Liabilities and
Shareholders'
Equity $8,924,514 $9,609,867
Net Interest Income $67,088 $59,651
Interest Rate Spread 3.07 % 2.48 %
Net Interest Margin 3.20 % 2.64 %
Consolidated Average Statements of Condition (unaudited)
Six Months Ended June 30, 1999 1998
(Dollars Fully Tax Fully Tax
in Average Equivalent Average Equivalent
thousands) Balance Interest Yield/ Balance Interest Yield/
Rate Rate
Assets:
Interest-Earning Assets:
Loans $5,139,085 $188,894 7.37 % $4,766,579 $192,893 8.09%
Securities 3,241,505 102,528 6.33 4,220,979 125,934 5.97
Total Interest-
Earning
Assets 8,380,590 291,422 6.96 8,987,558 318,827 7.10
Noninterest-
Earning Assets 559,624 484,309
Total
Assets $8,940,214 $9,471,867
Liabilities and
Shareholders' Equity:
Interest-Bearing Liabilities:
Interest-bearing
Deposits $5,127,791 $95,486 3.76% $5,402,695 $113,693 4.21%
Noninterest-bearing
Deposits 467,713 -- -- 394,220 -- --
Federal Home Loan
Bank Advances 1,543,521 40,224 5.26 1,702,810 49,167 5.74
Repurchase Agreements
and Other
Borrowings 938,304 23,207 4.99 1,102,461 31,089 5.61
Senior Notes 40,000 1,830 9.15 40,000 1,830 9.15
Total Interest-
Bearing
Liabilities 8,117,329 160,747 3.97 8,642,186 195,779 4.51
Noninterest-Bearing
Other Liabilities 91,209 137,185
Total
Liabilities 8,208,538 8,779,371
Capital Securities and
Preferred Stock of
Subsidiary
Corporation 199,577 174,992
Shareholders'
Equity 532,099 517,504
Total Liabilities
and Shareholders'
Equity $ 8,940,214 $ 9,471,867
Net Interest Income $ 130,675 $ 123,048
Interest Rate Spread 2.99 % 2.59 %
Net Interest Margin 3.12 % 2.76 %
|