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WATERBURY, Conn.--(BUSINESS WIRE)--April 15, 2004--Webster
Financial Corporation (NYSE:WBS), the holding company for Webster
Bank, today announced net income of $42.3 million in the first
quarter, compared to $39.9 million in the year-ago period, an increase
of 6 percent. Net income per diluted share was $.90 in the first
quarter, an increase of 5 percent compared to $.86 in the year-ago
period.
"We are pleased to report higher earnings and continuing
double-digit loan and deposit growth," stated Webster chairman and
chief executive officer James C. Smith. "We look forward to advancing
our strategic plan and capitalizing on new opportunities as we
complete our conversion to a commercial bank. With our expansion into
the Rhode Island and Massachusetts markets through our pending
acquisition of FirstFed, Webster will become the largest independent
bank headquartered in southern New England."
Revenues and Expenses
Total revenues (net interest income plus total noninterest income)
were $160.5 million in the first quarter, compared to $157.8 million a
year ago. Impacting the quarter was the implementation on December 31,
2003 of Financial Accounting Standards Board Interpretation No.
("FIN") 46 (revised), which required the reclassification of $3.5
million of capital trust securities expense in the first quarter of
2004 from noninterest expense to interest expense. Adjusting the prior
period for this effect, total revenues would have grown by $5.6
million, or 4 percent, from a year ago.
Net interest income was $105.8 million in the first quarter of
2004, compared to $104.7 million in the year-ago period and $107.3
million in the fourth quarter. Excluding the effect of FIN 46R, net
interest income would have grown by $4.1 million, or 4 percent, from a
year ago and by $2.0 million, or 2 percent, from the fourth quarter.
These increases reflect growth in the loan portfolio over the past
year.
Webster's net interest margin (annualized net interest income as a
percentage of average earning assets) was 3.09 percent in the quarter
compared to FIN 46R-adjusted 3.21 percent in the year-ago period and
3.08 percent in the fourth quarter. The decline from the year-ago
period reflects the generally lower interest rate environment over the
past year.
In the first quarter of 2004, total noninterest income increased 3
percent to $54.7 million, compared to $53.1 million in the year-ago
period. Excluding securities gains of $5.5 million in the first
quarter and $2.6 million in the year-ago period, noninterest income
decreased 3 percent in the first quarter to $49.2 million from $50.5
million in the year-ago period. This decrease principally reflects
reductions in financial advisory services due to the sale of Duff &
Phelps during the quarter and lower net gains on sales of loans and
loan servicing due to reduced mortgage origination volume. Partially
offsetting this was growth in insurance revenues, wealth management
and investment services and loan service fees.
Total noninterest expenses for the 2004 first quarter were $92.1
million, a decrease from $92.8 million in the year-ago period and
$98.3 million in the fourth quarter. Adjusting for the effect of FIN
46R, noninterest expenses grew by $2.3 million, or 3%, from a year ago
reflecting the impact of acquisitions and continuing investment in
personnel, technology and infrastructure to meet our strategic plan
for growth. Also adjusting for $1.3 million of acquisition costs in
the fourth quarter, total noninterest expenses declined by $1.3
million, or 1%, largely as a result of active management of
mortgage-related costs.
Balance Sheet Growth
At March 31, 2004, total assets were $15.1 billion, up 5 percent
from $14.4 billion a year ago. Total loans of $9.5 billion at March
31, 2004 increased 12 percent from $8.5 billion the prior year.
Deposits totaled $8.6 billion at March 31, 2004, up over $850 million,
or 11 percent, compared to a year ago. Over the past year, core
deposit growth was especially strong at 13 percent.
"Continuing strong loan and deposit growth have helped to produce
another solid quarter and strengthened our growing commercial
franchise," stated Webster president and chief operating officer
William T. Bromage.
At the end of the first quarter, commercial loans, including
commercial real estate, were $3.4 billion, up 13 percent from $3.0
billion a year ago. Consumer loans, primarily home equity loans and
lines, increased 18 percent to $2.2 billion, compared to $1.8 billion
one year ago. All loan categories showed growth compared to the fourth
quarter. Commercial and consumer loans comprised 58 percent of total
loans at March 31, 2004, compared to 57 percent a year ago.
Core deposits (consisting of checking, money market and savings
accounts) of $5.9 billion at March 31, 2004 increased by 13 percent
from one year ago and represented 68 percent of total deposits,
compared to 66 percent one year ago. Total deposits at March 31, 2004
grew at an annualized rate of 13 percent from year-end. Webster's
growth in deposits has been driven in part by its High Performance
Checking products and the continuing success of its de novo branches
in Fairfield County, Connecticut and Westchester County, New York.
Book value per common share of $26.18 at March 31, 2004 increased
from $23.47 one year ago. Tangible book value per share of $19.60 at
March 31, 2004 increased from $16.92 one year ago.
Asset Quality
Nonperforming assets totaled $41.3 million or 0.27 percent of
total assets at March 31, 2004, compared to $61.9 million or 0.43
percent a year ago and $42.9 million or 0.29 percent at December 31,
2003.
"Webster's commitment to a balanced and diversified portfolio has
allowed us to maintain overall credit quality during a period of
significant growth," stated Webster chief financial officer William J.
Healy.
The allowance for loan losses totaled $123.6 million, or 1.30
percent of total loans at March 31, 2004, compared to $118.6 million,
or 1.39 percent, a year ago and $121.7 million, or 1.32 percent, at
December 31, 2003. The ratio of the allowance to nonperforming loans
at March 31, 2004 increased to 338 percent, compared to 219 percent a
year ago and 323 percent at December 31, 2003. The improvements in
this ratio are due primarily to the decline in nonperforming loans.
The provision for loan losses totaled $5.0 million in the first
quarter compared to $5.0 million in the year-ago period.
Webster's net loan charge-offs in the first quarter of 2004 were
$3.1 million compared to $3.4 million in the year-ago period. The
annualized net charge-off ratio was 0.13 percent in the 2004 first
quarter, compared to 0.16 percent in the year-ago period.
Strategic Actions
Webster announced in January that its Board of Directors has
elected Laurence C. Morse to membership on Webster's board, effective
January 2004.
In March, Webster announced the sale of its majority interest in
Duff & Phelps, LLC, the Chicago-based financial advisory services and
investment banking firm, to a group including management teams from
Duff & Phelps and Stone Ridge Partners and an investor group led by
Lovell Minnick Partners, LLC. Webster will maintain a strategic
alliance with Duff & Phelps, with preferred customer status.
FIRSTFED AMERICA BANCORP, INC., of Swansea, Massachusetts and the
holding company for First Federal Savings Bank of America, has
announced that its annual shareholder meeting will be on April 22. A
shareholder vote to approve the sale of FIRSTFED to Webster is the
primary agenda for the meeting. Webster had announced its definitive
agreement to acquire FIRSTFED in October 2003.
Webster also is scheduled to appear before the Commonwealth of
Massachusetts Board of Bank Inc. on April 27 to seek approval of the
FIRSTFED sale. Board approval is anticipated to be the final
regulatory stage for Webster. If approved, the sale of FIRSTFED to
Webster will be finalized in the middle of the second quarter.
Webster Financial Corporation is the holding company for Webster
Bank and Webster Insurance. With $15.1 billion in assets, Webster
provides business and consumer banking, mortgage, insurance, financial
planning, trust and investment services through 119 banking offices,
233 ATMs, a Connecticut-based call center and the Internet. Webster
Bank owns the asset-based lending firm Webster Business Credit
Corporation, the insurance premium finance company Budget Installment
Corp., Center Capital Corporation, an equipment finance company
headquartered in Farmington, Connecticut and Webster Trust Company,
N.A. In addition, Webster expects to close on its acquisition of
FIRSTFED AMERICA BANCORP, INC., which has $2.6 billion in assets,
during the second quarter of 2004.
For more information about Webster, including past press releases
and the latest Annual Report, visit the Webster Web site at
www.websteronline.com.
Conference Call
A conference call covering Webster's 2004 first quarter earnings
announcement will be held today, Thursday, April 15, at 1:00 p.m.
Eastern Time and may be heard through Webster's investor relations Web
site at www.wbst.com, or in listen-only mode by calling 1-800-901-5218
(Access Code: 32674862). The call will be archived on the Web site 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 2003.
WEBSTER FINANCIAL CORPORATION
----------------------------------------------------------------------
Selected Financial Highlights (unaudited)
----------------------------------------------------------------------
At or for the Three
Months Ended March 31,
(In thousands, except per share data) 2004 2003
----------------------------------------------------------------------
Net income and performance ratios (annualized):
-----------------------------------------------
Net income $ 42,323 $ 39,937
Net income per diluted common share 0.90 0.86
Return on average shareholders' equity 14.28 % 15.21 %
Return on average assets 1.15 1.16
Noninterest income as a percentage of total
revenue 34.09 33.68
Efficiency Ratio (a) 57.40 58.80
Cash income and performance ratios (annualized)(b):
---------------------------------------------------
Net income $ 42,323 $ 39,937
Tax-effected stock-based compensation 647 913
Tax-effected intangible amortization 2,660 2,575
---------- -----------
Cash income 45,630 43,425
Cash income per diluted common share 0.97 0.94
Cash return on average shareholders' equity 15.40 % 16.54 %
Cash return on average assets 1.24 1.27
Asset Quality:
-----------------------------------------------
Allowance for loan losses $ 123,613 $ 118,596
Nonperforming assets 41,262 61,921
Allowance for loan losses / total loans 1.30 % 1.39 %
Net charge-offs/ average loans (annualized) 0.13 0.16
Nonperforming loans / total loans 0.38 0.64
Nonperforming assets / total assets 0.27 0.43
Allowance for loan losses / nonperforming loans 338.30 218.51
Other ratios (annualized):
-----------------------------------------------
Shareholders' equity / total assets 8.03 % 7.46 %
Interest-rate spread 3.04 3.26
Net interest margin 3.09 3.30
Share related:
-----------------------------------------------
Book value per common share $ 26.18 $ 23.47
Tangible book value per common share 19.60 16.92
Common stock closing price 50.71 35.12
Dividends declared per common share 0.21 0.19
Common shares issued and outstanding 46,299 45,617
Basic shares (average) 46,146 45,461
Diluted shares (average) 47,059 46,192
Footnotes:
(a) Noninterest expense as a percentage of net interest income plus
noninterest income.
(b) Cash income represents net income excluding the after tax effects
of non-cash charges related to the amortization of intangible
assets and stock-based compensation, which includes stock options
and restricted stock.
(c) Webster adopted FIN 46R on December 31, 2003, and in accordance
with its provisions, deconsolidated the capital trusts and
reported the associated liabilities as other long-term debt.
Commencing in 2004, the costs have been reclassified from
noninterest expenses to interest expense.
(d) For purposes of this computation, unrealized gains (losses) are
excluded from the average balance for rate calculations.
----------------------------------------------------------------------
Consolidated Statements of Condition (unaudited)
----------------------------------------------------------------------
March 31, December 31, March 31,
(In thousands) 2004 2003 2003
----------------------------------------------------------------------
Assets:
Cash and due from depository
institutions $ 230,137 $ 209,234 $ 238,370
Short-term investments 22,130 42,420 13,696
Securities:
Trading, at fair value 2,845 555 10,924
Available for sale, at fair
value 4,231,102 4,128,255 4,497,686
Held-to-maturity securities 200,531 173,371 -
------------- ------------- -------------
Total securities 4,434,478 4,302,181 4,508,610
Loans held for sale 135,771 89,830 321,637
Loans:
Residential mortgages 3,972,123 3,744,013 3,657,707
Commercial 2,101,195 2,040,921 1,947,167
Commercial real estate 1,288,509 1,281,516 1,062,891
Consumer 2,169,011 2,146,359 1,841,526
------------- ------------- -------------
Total loans 9,530,838 9,212,809 8,509,291
Allowance for loan losses (123,613) (121,674) (118,596)
------------- ------------- -------------
Loans, net 9,407,225 9,091,135 8,390,695
Accrued interest receivable 51,297 52,756 58,137
Premises and equipment, net 99,866 95,631 82,525
Goodwill and intangible
assets 322,483 330,929 320,942
Cash surrender value of life
insurance 182,511 180,556 174,181
Prepaid expenses and other
assets 204,372 174,018 246,866
------------- ------------- -------------
Total Assets $ 15,090,270 $ 14,568,690 $ 14,355,659
============= ============= =============
Liabilities and Shareholders'
Equity:
Deposits:
Demand deposits $ 1,081,455 $ 1,090,060 $ 974,044
NOW accounts 1,098,972 1,052,690 991,592
Money market deposit
accounts 1,779,468 1,581,276 1,454,157
Savings accounts 1,891,298 1,869,398 1,746,447
Certificates of deposit 2,676,910 2,681,986 2,543,060
------------- ------------- -------------
Total retail deposits 8,528,103 8,275,410 7,709,300
Treasury deposits 109,979 96,725 74,509
------------- ------------- -------------
Total deposits 8,638,082 8,372,135 7,783,809
Federal Home Loan Bank
advances 2,437,014 2,511,495 2,885,098
Federal funds purchased and
securities sold under
agreements to repurchase 2,150,719 1,892,138 2,030,553
Other long-term debt (c) 532,760 532,760 326,000
Accrued expenses and other
liabilities 110,156 97,690 128,921
------------- ------------- -------------
Total liabilities 13,868,731 13,406,218 13,154,381
Corporation-obligated
mandatorily redeemable
capital securities of
subsidiary trusts (c) - - 121,255
Preferred stock of subsidiary
corporation 9,577 9,577 9,577
Shareholders' equity 1,211,962 1,152,895 1,070,446
------------- ------------- -------------
Total Liabilities and
Shareholders' Equity $ 15,090,270 $ 14,568,690 $ 14,355,659
============= ============= =============
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Consolidated Statements of Income (unaudited)
----------------------------------------------------------------------
Three Months Ended
March 31,
(In thousands, except per share data) 2004 2003
----------------------------------------------------------------------
Interest income:
Loans $ 118,591 $ 113,221
Securities and short-term investments 44,608 51,745
Loans held for sale 1,070 4,481
---------- ----------
Total interest income 164,269 169,447
---------- ----------
Interest expense:
Deposits 25,830 29,418
Borrowings 32,633 35,353
---------- ----------
Total interest expense 58,463 64,771
---------- ----------
Net interest income 105,806 104,676
Provision for loan losses 5,000 5,000
---------- ----------
Net interest income after provision
for loan losses 100,806 99,676
---------- ----------
Noninterest income:
Deposit service fees 17,185 16,890
Insurance revenue 11,638 10,964
Loan and loan servicing fees 6,649 5,905
Wealth and investment services 5,116 4,578
Financial advisory services 3,808 5,431
Gain on sale of loans and loan servicing, net 1,025 2,771
Increase in cash surrender value of life
insurance 1,954 2,115
Other 1,848 1,861
---------- ----------
49,223 50,515
Gain on sale of securities, net 5,500 2,633
---------- ----------
Total noninterest income 54,723 53,148
---------- ----------
Noninterest expenses:
Compensation and benefits 53,127 50,561
Occupancy 8,365 8,099
Furniture and equipment 7,641 7,521
Intangible amortization 4,092 3,962
Marketing 2,984 3,485
Professional services 2,899 2,478
Capital trust securities (c) - 2,922
Other 13,033 13,778
---------- ----------
Total noninterest expenses 92,141 92,806
---------- ----------
Income before income taxes 63,388 60,018
Income taxes 21,065 20,081
---------- ----------
Net income $ 42,323 $ 39,937
========== ==========
Net income per common share:
Basic $ 0.92 $ 0.88
Diluted 0.90 0.86
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Consolidated Statements of Income (unaudited)
----------------------------------------------------------------------
Three Months Ended
(In thousands,
except per share March 31, Dec. 31, Sept. 30, June 30, March 31,
data) 2004 2003 2003 2003 2003
----------------------------------------------------------------------
Interest income:
Loans $118,591 $117,982 $114,750 $114,724 $113,221
Securities and short-
term investments 44,608 43,065 42,050 45,772 51,745
Loans held for sale 1,070 1,791 4,896 4,241 4,481
--------- --------- --------- --------- ---------
Total interest
income 164,269 162,838 161,696 164,737 169,447
--------- --------- --------- --------- ---------
Interest expense:
Deposits 25,830 26,319 26,824 28,750 29,418
Borrowings 32,633 29,224 33,943 35,368 35,353
--------- --------- --------- --------- ---------
Total interest
expense 58,463 55,543 60,767 64,118 64,771
--------- --------- --------- --------- ---------
Net interest
income 105,806 107,295 100,929 100,619 104,676
Provision for loan
losses 5,000 5,000 10,000 5,000 5,000
--------- --------- --------- --------- ---------
Net interest
income after
provision for
loan losses 100,806 102,295 90,929 95,619 99,676
--------- --------- --------- --------- ---------
Noninterest income:
Deposit service fees 17,185 17,731 17,868 17,529 16,890
Insurance revenue 11,638 9,077 9,954 9,980 10,964
Loan and loan
servicing fees 6,649 8,001 7,755 4,723 5,905
Wealth and investment
services 5,116 4,416 4,826 4,521 4,578
Financial advisory
services 3,808 7,265 4,833 5,229 5,431
Gain on sale of loans
and loan servicing,
net 1,025 2,854 9,829 4,066 2,771
Increase in cash
surrender value of
life insurance 1,954 2,082 2,150 2,143 2,115
Other 1,848 2,402 2,737 1,423 1,861
--------- --------- --------- --------- ---------
49,223 53,828 59,952 49,614 50,515
Gain on sale of
securities, net 5,500 2,715 4,560 8,666 2,633
--------- --------- --------- --------- ---------
Total noninterest
income 54,723 56,543 64,512 58,280 53,148
--------- --------- --------- --------- ---------
Noninterest expenses:
Compensation and
benefits 53,127 53,722 51,592 50,506 50,561
Occupancy 8,365 7,470 7,457 7,672 8,099
Furniture and
equipment 7,641 7,792 8,255 7,575 7,521
Intangible
amortization 4,092 4,067 4,001 3,968 3,962
Marketing 2,984 2,058 2,729 3,236 3,485
Professional services 2,899 3,654 2,582 2,994 2,478
Capital trust
securities (c) - 3,485 2,774 2,742 2,922
Acquisition costs - 1,349 142 6 -
Other 13,033 14,683 14,165 14,500 13,778
--------- --------- --------- --------- ---------
Total noninterest
expenses 92,141 98,280 93,697 93,199 92,806
--------- --------- --------- --------- ---------
Income before income
taxes 63,388 60,558 61,744 60,700 60,018
Income taxes 21,065 19,172 20,429 20,090 20,081
--------- --------- --------- --------- ---------
Net income $ 42,323 $ 41,386 $ 41,315 $ 40,610 $ 39,937
========= ========= ========= ========= =========
Net income per common
share:
Basic $ 0.92 $ 0.90 $ 0.91 $ 0.89 $ 0.88
Diluted 0.90 0.89 0.89 0.88 0.86
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Retail and Wholesale Interest-Rate Spreads (unaudited)
----------------------------------------------------------------------
Three Months Ended, March December September June March
2004 2003 2003 2003 2003
----------------------------------------------------------------------
Interest-rate spread
--------------------
Total interest-earning
assets 4.78 % 4.81 % 4.75 % 5.06 % 5.35 %
Total interest-bearing
liabilities 1.74 1.68 1.80 2.00 2.09
------- ------- ------- ------- -------
Interest-rate spread 3.04 % 3.13 % 2.95 % 3.06 % 3.26 %
Net interest margin 3.09 3.18 2.99 3.10 3.30
Retail interest-rate
spread
--------------------
Yield on loans and loans
held for sale 5.05 % 5.09 % 5.09 % 5.30 % 5.52 %
Cost of deposits 1.24 1.26 1.32 1.46 1.57
------- ------- ------- ------- -------
Spread 3.81 % 3.83 % 3.77 % 3.84 % 3.95 %
======= ======= ======= ======= =======
Wholesale interest-rate
spread
-----------------------
Yield on securities and
short-term investments 4.19 % 4.17 % 4.02 % 4.52 % 5.02 %
Cost of borrowings 2.56 2.41 2.55 2.88 2.90
------- ------- ------- ------- -------
Spread 1.63 % 1.76 % 1.47 % 1.64 % 2.12 %
======= ======= ======= ======= =======
----------------------------------------------------------------------
Consolidated Average Statements of Condition (unaudited)
----------------------------------------------------------------------
Three Months Ended March 31, 2004
----------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
----------------------------------------------------------------------
Assets:
Interest-earning
assets:
Loans $ 9,368,169 $ 118,591 5.05 %
Securities 4,331,501 45,161 4.22 (d)
Loans held for sale 85,276 1,070 5.02
Short-term investments 35,759 66 0.73
------------ ------------ ------------
Total interest-
earning assets 13,820,705 164,888 4.78
------------
Noninterest-earning
assets 889,392
------------
Total assets $14,710,097
============
Liabilities and
Shareholders' Equity:
Interest-bearing
liabilities:
Demand deposits $ 1,058,849 $ - - %
Savings, NOW and money
market deposit
accounts 4,539,038 8,984 0.80
Time deposits 2,789,750 16,846 2.43
------------ ------------ ------------
Total deposits 8,387,637 25,830 1.24
------------ ------------ ------------
Federal Home Loan Bank
advances 2,428,829 19,004 3.10
Fed funds and
repurchase agreements 2,093,519 5,431 1.03
Other long-term debt (c) 532,760 8,198 6.16
------------ ------------ ------------
Total borrowings 5,055,108 32,633 2.56
------------ ------------ ------------
Total interest-
bearing liabilities 13,442,745 58,463 1.74
------------
Noninterest-bearing
liabilities 72,405
------------
Total liabilities 13,515,150
Capital securities and
preferred stock of
subsidiary
corporation (c) 9,577
Shareholders' equity 1,185,370
------------
Total liabilities
and shareholders'
equity $14,710,097
============
106,425
Less: tax-equivalent
adjustment (619)
------------
Net interest income $ 105,806
============
Interest-rate spread 3.04 %
============
Net interest margin 3.09 %
============
----------------------------------------------------------------------
Three Months Ended March 31, 2003
----------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
----------------------------------------------------------------------
Assets:
Interest-earning
assets:
Loans $ 8,225,032 $ 113,221 5.52 %
Securities 4,208,492 52,027 5.05 (d)
Loans held for sale 327,620 4,481 5.47
Short-term investments 27,260 62 0.91
------------ ------------ ------------
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:
Demand deposits $ 951,230 $ - - %
Savings, NOW and money
market deposit
accounts 3,982,828 11,204 1.14
Time deposits 2,663,492 18,214 2.77
------------ ------------ ------------
Total deposits 7,597,550 29,418 1.57
------------ ------------ ------------
Federal Home Loan Bank
advances 2,581,216 23,791 3.69
Fed funds and
repurchase agreements 2,000,136 6,252 1.25
Other long-term debt (c) 297,111 5,310 7.15
------------ ------------ ------------
Total borrowings 4,878,463 35,353 2.90
------------ ------------ ------------
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 (c) 130,832
Shareholders' equity 1,050,378
------------
Total liabilities
and shareholders'
equity $13,723,827
============
105,020
Less: tax-equivalent
adjustment (344)
------------
Net interest income $ 104,676
============
Interest-rate spread 3.26 %
============
Net interest margin 3.30 %
============
See Selected Financial Highlights for footnotes.
----------------------------------------------------------------------
Asset Quality (unaudited)
----------------------------------------------------------------------
At or for the Three Months Ended
-------------------------------------------------
(Dollars in March 31, Dec. 31, Sept. 30, June 30, March 31,
thousands) 2004 2003 2003 2003 2003
----------------------------------------------------------------------
Nonperforming Assets
--------------------
Nonperforming loans:
Commercial:
Commercial $ 11,832 $ 14,266 $ 17,024 $ 27,881 $ 27,784
Specialized
industry 5,019 6,427 6,493 3,399 3,399
Equipment
financing 5,561 5,583 8,241 8,722 8,960
-------------------------------------------------
Total
commercial 22,412 26,276 31,758 40,002 40,143
Commercial real
estate 5,583 4,281 1,940 4,920 6,910
Residential 7,941 6,128 7,087 6,596 5,712
Consumer 604 959 718 767 1,510
-------------------------------------------------
Total nonperforming
loans 36,540 37,644 41,503 52,285 54,275
-------------------------------------------------
Loans held for sale - - - - 3,444
-------------------------------------------------
Other real estate
owned and
repossessed assets:
Commercial 4,273 4,296 4,019 4,224 3,967
Residential 325 942 541 520 234
Consumer 124 - - 9 1
-------------------------------------------------
Total other real
estate owned and
repossessed assets 4,722 5,238 4,560 4,753 4,202
-------------------------------------------------
Total nonperforming
assets $ 41,262 $ 42,882 $ 46,063 $ 57,038 $ 61,921
=================================================
----------------------------------------------------------------------
Summary of Classified
Loans
---------------------
Substandard:
Accruing $ 87,477 $ 72,638 $ 69,216 $ 62,064 $ 74,398
Nonaccruing 31,595 29,403 36,365 44,313 45,005
-------------------------------------------------
Total
substandard 119,072 102,041 105,581 106,377 119,403
Doubtful:
Nonaccruing 4,377 6,791 3,792 6,617 7,279
Loss - - - - -
-------------------------------------------------
Total classified
loans $123,449 $108,832 $109,373 $112,994 $126,682
=================================================
Classified as a
percent of total
loans 1.3% 1.2% 1.2% 1.3% 1.5%
-------------------------------------------------
----------------------------------------------------------------------
Allowance for Loan Losses (unaudited)
----------------------------------------------------------------------
At or for the Three Months Ended
-------------------------------------------------
(Dollars in March 31, Dec. 31, Sept. 30, June 30, March 31,
thousands) 2004 2003 2003 2003 2003
----------------------------------------------------------------------
Allowance for Loan
Losses
------------------
Beginning balance $121,674 $117,707 $119,239 $118,596 $116,804
Allowance for
purchased loans - 1,970 - - 146
Provision 5,000 5,000 10,000 5,000 5,000
Charge-offs:
Commercial:
Specialized
industry 826 558 3,870 327 -
All other
commercial 2,249 2,949 9,361 4,232 3,601
-------------------------------------------------
Total
commercial 3,075 3,507 13,231 4,559 3,601
Residential 983 330 39 160 78
Consumer 97 174 122 153 195
-------------------------------------------------
Total
charge-
offs 4,155 4,011 13,392 4,872 3,874
Recoveries (1,094) (1,008) (1,860) (515) (520)
-------------------------------------------------
Net loan
charge-
offs 3,061 3,003 11,532 4,357 3,354
-------------------------------------------------
Ending balance $123,613 $121,674 $117,707 $119,239 $118,596
=================================================
Asset Quality
Ratios:
-------------
Allowance for loan
losses / total
loans 1.30% 1.32% 1.29% 1.37% 1.39%
Net charge-offs/
average loans
(annualized) 0.13 0.13 0.52 0.20 0.16
Nonperforming loans
/ total loans 0.38 0.41 0.46 0.60 0.64
Nonperforming
assets / total
assets 0.27 0.29 0.32 0.39 0.43
Allowance for loan
losses /
nonperforming loans 338.30 323.22 283.61 228.06 218.51
CONTACT: Webster Financial Corporation, Waterbury
Media Contact:
Clark Finley, 203-578-2429
cfinley@websterbank.com
or
Investor Contact:
Terry Mangan, 203-578-2318
tmangan@websterbank.com
SOURCE: Webster Financial Corp.