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WATERBURY, Conn.--(BUSINESS WIRE)--April 15, 2003--Webster
Financial Corporation (NYSE: WBS), the holding company for Webster
Bank, today reported a 32 percent increase in net income per diluted
share for the first quarter of 2003, compared to the year-ago period.
For the quarter ended March 31, 2003, Webster's net income increased
to $39.9 million or $.86 per diluted share, compared to $32.3 million
or $.65 per diluted share for the year-ago period.
Net income per diluted share, excluding the cumulative effect of a
change in accounting method in the 2002 first quarter, increased 8
percent for the quarter ended March 31, 2003, compared to the same
period last year. Included in net income for the 2002 first quarter
was a transitional goodwill impairment writedown of $7.3 million, net
of taxes, related to the cumulative effect of a change in method of
accounting for the implementation of SFAS No. 142. In the first
quarter of 2002, net income before the transitional goodwill
impairment writedown was $39.6 million.
"Webster's solid performance in the first quarter reflects our
success in implementing our strategic plan for growth," stated Webster
chairman and chief executive officer, James C. Smith. "Webster has
strengthened its position as a leading regional financial services
provider offering a broad range of useful products and services to our
growing customer base. Growth in our balance sheet, revenues and
earnings over the past year demonstrate that Webster is creating
shareholder value by meeting the financial needs of its customers."
Revenues and Expenses
Webster's continued improvement in earnings per share has been led
by strong revenue growth. Total revenues, consisting of net interest
income and total noninterest income, grew by 14 percent compared to
the year-ago period. The growth was due primarily to expansion of
noninterest income, growth in loans and an increase in core deposits
over the past year.
For the first quarter of 2003, net interest income rose 8 percent
to $104.7 million from $96.5 million a year ago and increased slightly
from $104.1 million in the fourth quarter. Net interest margin
(annualized net interest income as a percentage of average earning
assets) was 3.30 percent in the first quarter of 2003, compared to
3.51 percent in the year ago period and 3.39 percent in the fourth
quarter. Earning asset growth over the past year, particularly in the
loan portfolio, was responsible for both increasing net interest
income and helping to offset the compression of net interest margin
caused by the lower interest rate environment.
For the first quarter of 2003, total noninterest income increased
28 percent to $53.1 million, up from $41.5 million in the year-ago
period. This increase is due primarily to growth in deposit service
fees, insurance revenue, loan and loan servicing fees and net gain on
sale of loans and loan servicing, all of which amounted to $36.5
million and increased by 43 percent from the year-ago period.
Acquisitions over the past year accounted for almost one-half of the
43 percent increase. For the first quarter of 2003, total noninterest
income represented 34 percent of total revenue, compared to 30 percent
in the year-ago period.
Total noninterest expenses for the 2003 first quarter increased to
$92.8 million, up 22 percent from $76.2 million one year ago and an
increase of 4 percent from $89.2 million in the fourth quarter. The
rise in total noninterest expenses over the prior year's period is due
to acquisitions and strategic investments in core businesses. The $3.7
million increase in total noninterest expenses from the fourth quarter
is due primarily to acquisitions in the first quarter of 2003.
Balance Sheet Growth
At March 31, 2003, total assets increased to $14.4 billion, up 16
percent from $12.3 billion one year ago and an increase of 7 percent
from $13.5 billion at the end of 2002. Total loans of $8.5 billion at
March 31, 2003 increased 19 percent from a year ago and 8 percent from
year-end. Webster's loan growth is primarily attributed to the
Whitehall asset-based lending acquisition in August of 2002 and to
growth in the home equity portfolio.
"Webster has taken another step in our transformation to the
commercial bank model," stated William T. Bromage, Webster president
and chief operating officer. "Our efforts to increase our commercial
and consumer loans and our mix of lower-cost core deposits gained
significant momentum in 2002. Webster has maintained that course in
the first quarter, further diversifying our mix and expanding our
fee-income businesses."
At the end of the first quarter, commercial loans, including
commercial real estate, were $3.0 billion, up from $2.3 billion one
year ago and $2.8 billion at December 31, 2002. Consumer loans totaled
$1.8 billion at the end of the first quarter, compared to $1.2 billion
one year ago and $1.7 billion at year end. Commercial loans and
consumer loans were 57 percent of total loans at March 31, 2003,
compared to 50 percent of total loans one year ago.
Webster's residential mortgage business generated $974 million in
mortgage originations in the first quarter, compared to $449 million a
year ago. In the first quarter of 2003, 72 percent of this amount came
from national wholesale mortgage banking operations, while 28 percent
came from Webster's retail channel.
Total deposits were $7.8 billion at March 31, 2003, an increase of
9 percent from $7.2 billion in the year-ago period and an increase of
2 percent from $7.6 billion at December 31, 2002. Core deposits at
March 31, 2003 represented 66 percent of total deposits, up from 59
percent a year ago. Webster's growth was driven in part by its High
Performance Checking campaign initiated in August of 2002 and the
continuing success of its de novo branch expansion program in
Fairfield County, Connecticut.
Book value per common share of $23.47 at March 31, 2003 increased
by 14 percent from $20.55 one year ago and increased by 3 percent from
$22.69 at December 31, 2002.
Asset Quality
Webster's net loan charge-offs in the first quarter of 2003 were
$3.4 million, compared to $2.4 million in the year-ago period. The
annualized charge-off ratio was 16 basis points in the 2003 first
quarter, compared to 14 basis points in the year-ago period.
Non-performing assets rose to $61.9 million or 0.43 percent of total
assets at March 31, 2003, compared to $54.3 million or 0.44 percent a
year ago and $50.0 million or 0.37 percent of total assets at December
31, 2002. Classified loans were 1.5 percent of total loans at March
31, 2003 compared to 2.0 percent one year ago and 1.4 percent at
December 31, 2002.
"Webster's credit quality measures remain well within recent
historical levels and our allowance for loan losses has increased by
20 percent over the past year," stated William J. Healy, Webster chief
financial officer. "Our ability to confront credit issues while
maintaining overall measures of asset quality demonstrates our
disciplined approach to risk management."
The allowance for loan losses totaled $118.6 million at March 31,
2003 compared to $98.9 million a year ago and $116.8 million at
December 31, 2002. The allowance represented 1.39 percent of total
loans at March 31, 2003 compared to 1.39 percent a year ago and 1.48
percent at December 31, 2002. The ratio of the allowance to
nonperforming loans at March 31, 2003 was 219 percent, compared to 197
percent a year ago and 270 percent at December 31, 2002.
Strategic Actions
In January, Webster announced the acquisition of The Mathog &
Moniello Companies, an East Haven, Connecticut-based commercial
property and casualty agency that specializes in providing risk
management products and services to self-insured businesses and
groups. The firm was one of the largest independent insurance agencies
in Connecticut with approximately 90 employees and additional offices
in West Hartford, CT and Harrison, New York. Mathog & Moniello's 2002
revenue was approximately $11 million.
Webster Bank also completed in January an offering of $200 million
in subordinated notes to institutional investors. The subordinated
notes were rated investment grade and constituted new funding that
increased Webster Bank's regulatory capital.
Also in the first quarter of 2003, Webster Bank announced the
acquisition of Budget Installment Corp., an insurance premium
financing company based in Rockville Centre, New York. Budget
Installment Corp. finances commercial property and casualty premiums
for businesses that pay their premiums on an installment basis. The
thirty year-old company currently has approximately 8,000 active
borrower accounts located in New York and New Jersey.
In January, Webster declared a regular quarterly dividend of $.19
per common share. The announcement marked the 61st consecutive
quarterly dividend since Webster first paid a dividend in 1987.
Gomez, Inc., the nation's leading Internet channel benchmarking
and improvement strategies firm, announced in April that Webster
Bank's website (www.websteronline.com) ranks eighteenth in a national
survey of Internet banking capabilities. The survey measured the
functionality, usability and performance dimensions of Internet
banking across the United States. Gomez specifically cited Webster's
self-service capabilities, 12-month statement offerings and secure
bill-pay system as factors in its recognition.
Webster Financial Corporation is the holding company for Webster
Bank and Webster Insurance. With $14 billion in assets, Webster Bank
provides business and consumer banking, mortgage, insurance, trust and
investment services through 110 banking offices, 219 ATMs, a
Connecticut-based call center and the Internet. Webster Financial
Corporation is majority owner of Chicago-based Duff & Phelps, LLC, a
leader in financial advisory services. Webster Bank owns the
asset-based lending firm, Whitehall Business Credit Corporation,
Budget Installment Corp., Center Capital Corporation, an equipment
finance company headquartered in Farmington, Connecticut and Webster
Trust Company, N.A.
For more information about Webster, including past press releases
and the latest Annual Report, visit the Webster website at
www.websteronline.com.
Conference Call
A conference call covering today's announcement will be held
today, Tuesday, April 15, at 2:00 p.m. Eastern Standard Time and may
be heard through Webster's investor relations website at
www.websteronline.com, or in listen-only mode by calling
1-800-491-4331 (Access Code: 3330070). The call will be archived on
the website and available for future retrieval.
Statements in this press release regarding Webster Financial
Corporation's business that are not historical facts are
"forward-looking statements" that involve risks and uncertainties. For
a discussion of such risks and uncertainties that could cause actual
results to differ from those contained in the forward-looking
statement, see "Forward Looking Statements" in Webster's Annual Report
for 2002.
----------------------------------------------------------------------
Selected Financial Highlights (unaudited)
----------------------------------------------------------------------
At or for the Three
Months Ended March 31,
(In thousands, except per share data) 2003 2002 (a)
----------------------------------------------------------------------
Net income and performance ratios
(annualized):
-------------------------------------------
Net income $ 39,937 $ 32,335
Net income per diluted common share 0.86 0.65
Return on average shareholders' equity 15.21 % 12.79 %
Return on average assets 1.16 1.09
Net income and performance ratios before
cumulative effect of change in accounting
method (annualized):
---------------------------------------------
Net income $ 39,937 $ 32,335
Cumulative effect of change in accounting
method (b) - 7,280
--------- --------
Net income before cumulative effect of change
in accounting method 39,937 39,615
Net income per diluted common share 0.86 0.80
Return on average shareholders' equity 15.21 % 15.66 %
Return on average assets 1.16 1.33
Noninterest income as a percentage of total
revenue 33.68 30.07
Efficiency ratio (e) 58.80 55.23
Cash income and performance ratios
(annualized) (c):
---------------------------------------------
Net income $ 39,937 $32,335
Cumulative effect of change in accounting
method (b) - 7,280
Tax-effected intangible ammortization 2,575 2,625
--------- --------
Cash income 42,512 42,420
Cash income per diluted common share 0.92 0.85
Cash return on average shareholders' equity 16.19 % 16.70 %
Cash return on average assets 1.24 1.42
Asset Quality:
---------------------------------------------
Allowance for loan losses $ 118,596 $98,930
Nonperforming assets 61,921 54,325
Allowance for loan losses / total loans 1.39 % 1.39 %
Net charge-offs/ average loans (annualized) 0.16 0.14
Nonperforming loans / total loans 0.64 0.70
Nonperforming assets / total assets 0.43 0.44
Allowance for loan losses / nonperforming
loans 218.51 196.68
Other ratios (annualized):
---------------------------------------------
Shareholders' equity / total assets 7.46 % 8.14 %
Interest-rate spread 3.26 3.42
Net interest margin 3.30 3.51
Share related:
---------------------------------------------
Book value per common share $ 23.47 $ 20.55
Tangible book value per common share 16.92 14.67
Common stock closing price 35.12 37.43
Dividends declared per common share 0.19 0.17
Common shares issued and outstanding 45,617 48,879
Basic shares (average) 45,461 48,803
Diluted shares (average) 46,192 49,583
Footnotes:
(a) Adjusted to reflect the adoption of SFAS No. 123, "Accounting for
Stock-Based Compensation", SFAS No. 142, "Goodwill and Other
Intangible Assets", and SFAS No.147, "Acquisitions of Certain
Financial Institutions" during 2002.
(b) Cumulative effect of change in accounting method for 2002 is a
SFAS No. 142 transitional goodwill impairment charge of $11.2 million,
net of taxes, $7.3 million.
(c) Net income excluding tax-effected intangible amortization of $2.6
million and cumulative effect of change in accounting method of $7.3
million.
(d) For purposes of this computation, unrealized gains(losses) are
excluded from the average balance for rate calculations.
(e) Noninterest expense as a percentage of net interest income plus
noninterest income.
----------------------------------------------------------------------
Consolidated Statements of Condition (unaudited)
----------------------------------------------------------------------
March 31, December 31, March 31,
(In thousands) 2003 2002 2002 (a)
----------------------------------------------------------------------
Assets:
Cash and due from depository
institutions $ 238,370 $ 266,463 $ 167,160
Short-term investments 13,696 15,596 33,472
Securities:
Trading, at fair value 10,924 5,752 527
Available for sale, at
fair value 4,497,686 4,119,245 4,221,800
------------- ---------- ----------
Total securities 4,508,610 4,124,997 4,222,327
Loans held for sale 321,637 405,157 102,348
Loans:
Residential mortgages 3,657,707 3,386,207 3,561,986
Commercial 1,947,167 1,798,898 1,385,276
Commercial real estate 1,062,891 1,029,332 952,553
Consumer 1,841,526 1,698,202 1,237,098
-------------- ----------- -----------
Total loans 8,509,291 7,912,639 7,136,913
Allowance for loan losses (118,596) (116,804) (98,930)
-------------- ------------ -----------
Loans, net 8,390,695 7,795,835 7,037,983
Accrued interest receivable 58,137 54,601 58,928
Premises and equipment, net 82,525 84,683 82,209
Goodwill and intangible assets 320,942 297,359 305,677
Cash surrender value of life
insurance 174,181 172,066 165,225
Prepaid expenses and
other assets 246,866 251,247 159,766
------------- ----------- -----------
Total assets $14,355,659 $13,468,004 $12,335,095
============ =========== ===========
Liabilities and Shareholders' Equity:
Deposits:
Checking and NOW $ 1,965,636 $ 1,927,880 $ 1,661,341
Savings and MMDAs 3,200,604 2,987,595 2,592,132
Certificates of deposit 2,543,060 2,592,701 2,794,048
------------- ----------- ------------
Total retail deposits 7,709,300 7,508,176 7,047,521
Treasury deposits 74,509 97,946 121,825
------------- ----------- -----------
Total deposits 7,783,809 7,606,122 7,169,346
Federal Home Loan Bank
advances 2,885,098 2,163,029 2,399,579
Other borrowings 2,030,553 2,166,640 1,377,647
Senior notes and subordinated
debt 326,000 126,000 126,000
Accrued expenses and other
liabilities 128,921 239,923 98,555
------------- ----------- -----------
Total liabilities 13,154,381 12,301,714 11,171,127
Corporation-obligated
mandatorily redeemable
capital securities of
subsidiary trusts 121,255 121,255 150,000
Preferred stock of
subsidiary corporation 9,577 9,577 9,577
Shareholders' equity 1,070,446 1,035,458 1,004,391
------------- ---------- ----------
Total liabilities and
shareholders' equity $14,355,659 $13,468,004 $12,335,095
============ ============ ============
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Consolidated Statements of Income (unaudited)
----------------------------------------------------------------------
Three Months Ended
March 31,
(In thousands, except per share data) 2003 2002 (a)
----------------------------------------------------------------------
Interest income:
Loans and loans held for sale $ 117,702 $111,495
Securities and short-term investments 51,745 59,598
-------- ---------
Total interest income 169,447 171,093
--------- ---------
Interest expense:
Deposits 29,418 39,613
Borrowings 35,353 34,997
--------- ---------
Total interest expense 64,771 74,610
--------- ---------
Net interest income 104,676 96,483
Provision for loan losses 5,000 4,000
--------- ---------
Net interest income after provision for loan
losses 99,676 92,483
--------- ---------
Noninterest income:
Deposit service fees 16,890 13,806
Insurance revenue 10,964 7,436
Loan and loan servicing fees 5,905 3,885
Financial advisory services 5,431 3,959
Trust and investment services 4,578 4,387
Gain on sale of loans and loan servicing, net 2,771 393
Increase in cash surrender value of
life insurance 2,115 2,202
Other 1,861 2,010
--------- ---------
Total fee revenue 50,515 38,078
Gain on sale of securities, net 2,633 3,405
--------- ---------
Total noninterest income 53,148 41,483
--------- ---------
Noninterest expenses:
Compensation and benefits 50,561 40,148
Occupancy 8,099 6,285
Furniture and equipment 7,521 6,568
Intangible amortization 3,962 4,038
Marketing 3,485 2,424
Professional services 2,478 2,327
Capital securities and preferred stock dividend 3,138 3,832
Other 13,562 10,577
--------- ---------
Total noninterest expenses 92,806 76,199
--------- ---------
Income before income taxes and cumulative effect
of change in accounting method 60,018 57,767
Income taxes 20,081 18,152
---------- ---------
Income before cumulative effect of change in
accounting method 39,937 39,615
Cumulative effect of change in accounting method,
net of taxes (b) - (7,280)
---------- ---------
Net income $ 39,937 $ 32,335
=========== =========
Net income per common share before cumulative
effect of change in accounting method:
Basic $ 0.88 $ 0.81
Diluted 0.86 0.80
Net income per common share:
Basic $ 0.88 $ 0.66
Diluted 0.86 0.65
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Consolidated Statements of Income (unaudited)
----------------------------------------------------------------------
Three Months Ended
(In thousands, March 31, Dec. 31, Sept. 30, June 30, March 31,
except per share data) 2003 2002 2002 2002(a) 2002(a)
----------------------------------------------------------------------
Interest income:
Loans and loans held for
sale $117,702 $120,386 $118,492 $114,027 $111,495
Securities and short-
term investments 51,745 53,189 55,507 59,340 59,598
---------- -------- --------- -------- --------
Total interest
income 169,447 173,575 173,999 173,367 171,093
---------- -------- --------- -------- --------
Interest expense:
Deposits 29,418 33,375 36,169 37,005 39,613
Borrowings 35,353 36,110 35,240 33,797 34,997
---------- -------- --------- -------- --------
Total interest
expense 64,771 69,485 71,409 70,802 74,610
---------- -------- --------- -------- --------
Net interest
income 104,676 104,090 102,590 102,565 96,483
Provision for loan
losses 5,000 16,000 5,000 4,000 4,000
---------- -------- --------- -------- --------
Net interest income
after provision for
loan losses 99,676 88,090 97,590 98,565 92,483
---------- -------- --------- -------- --------
Noninterest income:
Deposit service fees 16,890 17,083 15,797 14,924 13,806
Insurance revenue 10,964 6,875 6,386 6,376 7,436
Loan and loan
servicing fees 5,905 6,089 4,346 4,211 3,885
Financial advisory
services 5,431 4,964 5,997 4,357 3,959
Trust and investment
services 4,578 3,693 3,770 4,068 4,387
Gain on sale of loans
and loan servicing, net 2,771 2,337 1,839 1,239 393
Increase in cash
surrender value of life
insurance 2,115 2,263 2,310 2,267 2,202
Other 1,861 1,129 750 1,047 2,010
---------- -------- --------- -------- --------
Total fee revenue 50,515 44,433 41,195 38,489 38,078
Gain on sale of
securities, net 2,633 13,934 4,912 1,126 3,405
---------- -------- --------- -------- --------
Total noninterest
income 53,148 58,367 46,107 39,615 41,483
Noninterest expenses:
Compensation and
benefits 50,561 46,343 43,303 41,248 40,148
Occupancy 8,099 7,444 6,665 6,212 6,285
Furniture and
equipment 7,521 8,228 7,559 6,812 6,568
Intangible
amortization 3,962 3,997 3,978 4,004 4,038
Marketing 3,485 3,038 2,622 2,438 2,424
Professional
services 2,478 3,503 2,754 2,820 2,327
Capital securities
and preferred stock
dividend 3,138 3,355 3,449 3,753 3,832
Acquisition expenses - - 1,349 616 -
Other 13,562 13,244 12,450 10,940 10,577
---------- -------- --------- -------- --------
Total noninterest
expenses 92,806 89,152 84,129 78,843 76,199
---------- -------- --------- -------- --------
Income before income
taxes and cumulative
effect of change in
accounting method 60,018 57,305 59,568 59,337 57,767
Income taxes 20,081 17,904 19,144 18,765 18,152
---------- -------- --------- -------- --------
Income before
cumulative effect of
change in accounting
method 39,937 39,401 40,424 40,572 39,615
Cumulative effect of
change in accounting
method, net of
taxes (b) - - - - (7,280)
---------- -------- --------- -------- --------
Net income $ 39,937 $ 39,401 $ 40,424 $ 40,572 $ 32,335
========== ======== ========= ======== ========
Net income per common
share before
cumulative effect of
change in accounting
method:
Basic $ 0.88 $ 0.86 $ 0.85 $ 0.83 $ 0.81
Diluted 0.86 0.85 0.84 0.82 0.80
Net income per
common share:
Basic $ 0.88 $ 0.86 $ 0.85 $ 0.83 $ 0.66
Diluted 0.86 0.85 0.84 0.82 0.65
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Retail and Wholesale Interest-Rate Spreads (unaudited)
----------------------------------------------------------------------
Three Months Ended March December September June March
2003 2002 2002 2002 2002
----------------------------------------------------------------------
Interest-rate spread
---------------------------------
Total interest-earning assets (d) 5.35% 5.61% 5.93% 6.09% 6.24%
Total interest-bearing
liabilities 2.09 2.26 2.48 2.57 2.82
----- ------ ------ ------ ------
Interest-rate spread 3.26% 3.35% 3.45% 3.52% 3.42%
Net interest margin 3.30 3.39 3.52 3.61 3.51
Retail interest-rate spread
---------------------------------
Yield on loans 5.52% 5.71% 6.01% 6.23% 6.39%
Cost of deposits 1.57 1.77 1.96 2.06 2.29
----- ------ ------ ------ ------
Spread 3.95% 3.94% 4.05% 4.17% 4.10%
===== ====== ====== ====== ======
Wholesale interest-rate spread
---------------------------------
Yield on securities (d) 5.02% 5.40% 5.77% 5.84% 5.98%
Cost of borrowings 2.90 3.07 3.40 3.56 3.85
----- ------ ------ ------ ------
Spread 2.12% 2.33% 2.37% 2.28% 2.13%
===== ====== ====== ====== ======
----------------------------------------------------------------------
Consolidated Average Statements of Condition (unaudited)
----------------------------------------------------------------------
Three Months Ended March 31, 2003
----------------------------------------------------------------------
Fully tax-
Average equivalent
(In thousands) balance Interest yield/rate
----------------------------------------------------------------------
Assets:
Interest-earning
assets:
Loans and loans held for sale $8,552,652 $117,702 5.52 %
Securities and short-term
investments 4,235,752 52,089 5.02 (d)
----------- ---------- ----------
Total interest-earning
assets 12,788,404 169,791 5.35
----------
Noninterest-earning assets 935,423
------------
Total assets $13,723,827
============
Liabilities and Shareholders' Equity:
Interest-bearing
liabilities:
Interest-bearing deposits $ 6,646,320 $ 29,418 1.80 %
Noninterest- bearing deposits 951,230 - -
Federal Home Loan
Bank advances 2,581,216 23,791 3.69
Repurchase agreements and
other borrowings 2,000,136 6,252 1.25
Senior notes and subordinated
debt 297,111 5,310 7.15
------------ ----------- -----------
Total interest-bearing
liabilities 12,476,013 64,771 2.09
-----------
Noninterest-bearing
liabilities 66,604
-------------
Total liabilities 12,542,617
Capital securities and preferred
stock of subsidiary corporation 130,832
Shareholders' equity 1,050,378
---------------
Total liabilities and
shareholders' equity $13,723,827
===============
Less: tax-equivalent adjustment (344)
---------
Net interest income $104,676
=========
Interest-rate spread 3.26 %
===========
Net interest margin 3.30 %
===========
Three Months Ended March 31, 2002
----------------------------------------------------------------------
Fully tax-
Average equivalent
(In thousands) balance Interest yield/rate
----------------------------------------------------------------------
Assets:
Interest-earning
assets:
Loans and loans held for sale $6,996,981 $111,495 6.39 %
Securities and short-term
investments 4,044,428 59,902 5.98 (d)
----------- ---------- ----------
Total interest-earning
assets 11,041,409 171,397 6.24
----------
Noninterest-earning assets 874,232
-------------
Total assets $11,915,641
=============
Liabilities and Shareholders' Equity:
Interest-bearing
liabilities:
Interest-bearing
deposits $6,184,667 $39,613 2.60 %
Noninterest-bearing deposits 838,903 - -
Federal Home Loan Bank
advances 2,391,373 27,287 4.56
Repurchase agreements and
other borrowings 1,116,611 4,920 1.76
Senior notes and
subordinated debt 126,000 2,790 8.86
------------- ---------- ------------
Total interest-bearing
liabilities 10,657,554 74,610 2.82
------------- ---------- ------------
Noninterest-bearing
liabilities 86,892
-------------
Total liabilities 10,744,446
Capital securities and preferred
stock of subsidiary corporation 159,577
Shareholders' equity 1,011,618
------------
Total liabilities and
shareholders' equity $11,915,641
============
Less: tax-equivalent adjustment (304)
----------
Net interest income $96,483
==========
Interest-rate spread 3.42 %
===========
Net interest margin 3.51 %
===========
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Asset Quality (unaudited)
----------------------------------------------------------------------
At or for the Three Months Ended,
-------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
(In thousands) 2003 2002 2002 2002 2002
----------------------------------------------------------------------
Nonperforming Assets
------------------------
Nonperforming loans:
Commercial:
Commercial $ 27,784 $ 16,001 $ 19,000 $ 21,626 $ 20,461
Specialized
industry 3,399 3,399 27,231 3,399 3,399
Equipment
financing 8,960 6,586 5,559 6,531 7,510
------------------------------------------------
Total
commercial 40,143 25,986 51,790 31,556 31,370
Commercial real
estate 6,910 9,109 10,124 9,506 11,122
Residential 5,712 7,263 5,521 5,991 6,262
Consumer 1,510 894 1,062 1,409 1,545
------------------------------------------------
Total nonperforming
loans 54,275 43,252 68,497 48,462 50,299
------------------------------------------------
Loans held for sale 3,444 3,706 - - -
------------------------------------------------
Other real estate owned and
repossessed assets:
Commercial 3,967 2,568 3,007 2,294 2,690
Residential 234 477 686 635 1,131
Consumer 1 32 12 170 205
------------------------------------------------
Total other real estate
owned and repossessed
assets 4,202 3,077 3,705 3,099 4,026
------------------------------------------------
Total nonperforming
assets $ 61,921 $ 50,035 $ 72,202 $ 51,561 $ 54,325
================================================
----------------------------------------------------------------------
Summary of Classified Loans
-----------------------------
Substandard:
Accruing $ 74,398 $ 70,245 $102,436 $106,281 $ 94,864
Nonaccruing 45,005 38,994 62,170 43,634 43,146
------------------------------------------------
Total
substandard 119,403 109,239 164,606 149,915 138,010
Doubtful:
Accruing - - 3 6 11
Nonaccruing 7,279 3,743 3,724 3,808 3,756
------------------------------------------------
Total doubtful 7,279 3,743 3,727 3,814 3,767
Loss - - - - -
------------------------------------------------
Total classified
loans $126,682 $112,982 $168,333 $153,729 $141,777
===============================================
Classified as a percent
of loans 1.5% 1.4% 2.1% 2.1% 2.0%
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Allowance for Loan Losses (unaudited)
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At or for the Three Months Ended,
--------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
(In thousands) 2003 2002 2002 2002 2002
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Allowance for Loan Losses
--------------------------
Beginning balance $116,804 $116,118 $ 99,698 $ 98,930 $ 97,307
Allowance for
purchased loans 146 - 16,338 - -
Provision 5,000 16,000 5,000 4,000 4,000
Write-down of loans
transferred to held
for sale - (12,432) - - -
Charge-offs:
Residential 78 84 249 187 362
Commercial:
Specialized industry - 2,569 1,892 854 1,361
All other commercial 3,601 1,031 3,029 2,498 541
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Total commercial 3,601 3,600 4,921 3,352 1,902
Commercial real
estate - - - - -
Consumer 195 220 246 250 377
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Total charge-offs 3,874 3,904 5,416 3,789 2,641
Recoveries (520) (1,022) (498) (557) (264)
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Net loan charge-
offs 3,354 2,882 4,918 3,232 2,377
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Ending balance $118,596 $116,804 $116,118 $99,698 $98,930
================================================
Asset Quality Ratios:
-----------------------------
Allowance for loan losses /
total loans 1.39 % 1.48 % 1.45 % 1.36 % 1.39 %
Net charge-offs/ average loans
(annualized) 0.16 0.14 0.26 0.18 0.14
Nonperforming loans / total
loans 0.64 0.55 0.86 0.66 0.70
Nonperforming assets / total
assets 0.43 0.37 0.54 0.41 0.44
Allowance for loan losses /
nonperforming loans 218.51 270.05 169.52 205.72 196.68
CONTACT: Webster Financial Corporation
Webster Media Contact:
Clark Finley, 203/578-2429
cfinley@websterbank.com
or
Investor Relations Contact:
Terry Mangan, 203/578-2318
tmangan@websterbank.com