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WATERBURY, Conn., July 19, 2005 /PRNewswire-FirstCall via COMTEX/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced net income of $46.3 million in the second quarter compared to $45.8
million in the year-ago quarter. Net income per diluted share was $.85
compared to $.91 a year ago. For the first six months of 2005, net income was
$93.8 million compared to $88.2 million a year ago. Net income per share was
$1.73 and $1.81 in the respective periods. Average diluted shares outstanding
are higher in 2005 as a result of shares issued in connection with the
acquisition of FIRSTFED AMERICA BANCORP, INC. on May 14, 2004.
Gains on the sale of securities are included in all of the amounts above.
These gains represented $.01 per share in the second quarter compared to $.07
in the year-ago quarter. For the first six months of 2005, securities gains
were $.02 per share compared to $.15 a year ago. The reduced level of
securities gains per share in 2005 is consistent with Webster's emphasis on
delivering high quality earnings. In addition, one-time expenses equivalent to
$.04 in the second quarter were incurred in support of Webster's core
infrastructure conversion project.
Cash net income, which adds stock-based compensation and intangible
amortization expenses back to net income, was $51.1 million compared to $50.0
million in the year-ago quarter. Cash net income per share was $.94 in the
second quarter compared to $.99 a year ago. For the first six months of 2005,
cash net income was $103.2 million compared to $95.8 million a year ago. Cash
net income per share was $1.90 and $1.96 in the respective periods.
"The second quarter results show strong growth in deposits and commercial
loans and ongoing progress toward achieving our strategic and financial
goals," said Webster Chairman and Chief Executive Officer James C. Smith. "We
remain focused on a strong balance sheet, solid organic growth and high
quality earnings as we continue to invest in our future."
Revenues
Total revenues (net interest income plus total noninterest income) were
$183.5 million in the second quarter, compared to $170.5 million a year ago,
an increase of 8 percent. Adjusting both periods to exclude securities gains,
total revenues grew by 11 percent.
Net interest income was $129.8 million in the second quarter of 2005
compared to $113.5 million in the year-ago period. The increase over the prior
year reflects growth in the loan portfolio fully funded by deposit growth and
a higher net interest margin.
Webster's net interest margin (annualized tax-equivalent net interest
income as a percentage of average earning assets) was 3.32 percent in the
second quarter, an improvement of 30 basis points from 3.02 percent in the
year-ago period. The net interest margin also was 3.32 percent in the first
quarter of 2005. The increase from a year ago reflects the benefit of
Webster's de-leveraging in the fourth quarter of 2004 and the impact of higher
interest rates on earning asset yields over the past year.
The provision for loan losses totaled $2.0 million in the second quarter.
Recoveries on loans previously charged off exceeded loans charged off during
the quarter by $0.3 million. As a result, the allowance for loan losses
increased by $2.3 million during the quarter. This compares to a provision of
$5.0 million a year ago, which exceeded net loan charge-offs by $2.8 million.
The reduction in the provision from a year ago reflects Webster's favorable
asset quality and the net recovery in the quarter. The annualized net loan
charge-off ratio was (0.01) percent of average loans in the second quarter
compared to 0.08 percent a year ago.
In the second quarter of 2005, total noninterest income was $53.6 million
compared to $57.1 million in the year-ago period. Excluding securities gains
of $0.7 million and $5.6 million in the respective periods, noninterest income
increased in the second quarter to $52.9 million from $51.5 million in the
year-ago period.
Webster's core fee revenues reflect growth in our businesses over the past
year. They are revenues from deposit service fees, insurance, loan and loan
servicing and wealth management, which totaled $45.6 million in the second
quarter and grew by 6 percent compared to a year ago. Deposit service fees
totaled $21.7 million and grew by 13 percent from a year ago aided by the
FIRSTFED and HSA Bank acquisitions. Gains on sales of loans and loan servicing
totaled $3.0 million in the quarter and decreased by $2.3 million from a year
ago primarily as a result of lower mortgage origination volumes and sales into
the secondary markets.
Expenses
Total noninterest expenses for the 2005 second quarter were $113.5
million, which includes $3.5 million of non-recurring charges under Webster's
core infrastructure conversion project, compared to $97.2 million in the year-
ago period. Adjusting each period for acquisitions, investments in de novo
branch expansion and the core infrastructure conversion, total noninterest
expenses were $93.0 million in the second quarter and $89.3 million a year ago
for an increase of approximately 4 percent. On this basis, total noninterest
expenses were $183.8 million for the first six months of 2005 and $175.9
million a year ago and also increased by approximately 4 percent.
Balance Sheet Trends
At June 30, 2005, total assets were $17.5 billion, up 3 percent from $17.0
billion a year ago. Total loans of $11.8 billion at June 30, 2005 increased 5
percent from $11.3 billion the prior year, while deposits were $11.6 billion,
up 12 percent from $10.4 billion a year ago.
"Strong deposit growth exceeding the growth in loans has enabled Webster
to make a meaningful reduction in total wholesale borrowings," stated Webster
President and Chief Operating Officer William T. Bromage. "Commercial lending
is a strategic focus which is reflected in our double-digit loan growth for
this segment."
At the end of the second quarter, commercial loans were $4.4 billion,
including Commercial & Industrial loans at $2.8 billion, up 13 percent from a
year ago, and commercial real estate loans at $1.6 billion, up 6 percent.
Consumer loans, primarily home equity loans and lines, increased 6 percent to
$2.7 billion compared to $2.5 billion a year ago. Commercial, commercial real
estate and consumer loans comprised 60 percent of total loans at June 30, 2005
compared to 58 percent a year ago.
Demand and NOW deposits have grown by 11 percent and 15 percent,
respectively, compared to a year ago while certificates of deposit balances
have grown by 20 percent as consumer preferences have shifted to this product
offering. Wholesale borrowings as a percent of total assets declined to 23.7
percent at June 30, 2005 compared to 29.9 percent a year ago as total deposit
growth exceeded loan growth by $687 million over the past year.
"Webster's performance has resulted in an improved tangible equity
position," stated Webster Chief Financial Officer William J. Healy. "Earnings
retention and balance sheet management have contributed to substantial
improvement in our tangible equity ratio over the past year."
Book value per common share of $29.94 at June 30, 2005 increased from
$27.37 a year ago. Tangible book value per share of $17.18 at June 30, 2005
increased from $15.02 last year. The ratio of tangible equity to tangible
assets increased to 5.38 percent at June 30, 2005 compared to 4.71 percent a
year ago. Return on average tangible equity was 20.2 percent in the second
quarter compared to 22.1 percent a year ago while the cash return on average
tangible equity was 22.3 percent and 24.1 percent in the respective periods.
Asset Quality
Nonperforming assets totaled $44.2 million or 0.25 percent of total assets
at June 30, 2005, down from $47.7 million or 0.28 percent a year ago and $49.1
million or 0.28 percent at March 31, 2005.
The allowance for loan losses was $154.8 million, or 1.31 percent of total
loans at June 30, 2005, compared to $146.5 million, or 1.30 percent, a year
ago and $152.5 million, or 1.30 percent, at March 31, 2005. The ratio of the
allowance to nonperforming loans at June 30, 2005 was 369 percent compared to
332 percent a year ago and 334 percent at March 31, 2005.
Strategic Actions
During the second quarter, Webster celebrated grand openings for de novo
branches in Groton and Bridgeport, Conn., our first branches in these towns,
bringing the total retail branch system to 153. The branches increase
Webster's presence in New London and Fairfield Counties.
In April, Webster unveiled a new corporate identity including a new logo
with a contemporary look meant to capture Webster's momentum and communicate
the energy and approachability that are at the heart of Webster's We Find A
Way brand promise.
Also in April, Webster named Scott McBrair head of Retail Banking,
including consumer and small business operations. He is responsible for
Webster's 153 branch system, the bank's contact center and on-line banking
capabilities and Webster's full range of retail banking products including
checking, money market funds, certificates of deposit and small business
loans.
In June, Webster completed its acquisition of J. Bush & Co., an investment
management business. J. Bush & Co. works closely with high-net worth
individuals as well as institutions to provide them investment management
advice. The company has retained its name and operates as a division of the
Bank's investment management group, Webster Financial Advisors (WFA).
Webster Financial Corporation is the holding company for Webster Bank,
National Association and Webster Insurance. With $17.5 billion in assets,
Webster provides business and consumer banking, mortgage, insurance, financial
planning, trust and investment services through 153 banking offices, 291 ATMs,
telephone banking 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 provides health
savings account trustee and administrative services through HSA Bank, a
division of Webster Bank.
For more information about Webster, including past press releases and the
latest Annual Report, visit the Webster website at
http://www.websteronline.com.
CONTACT: Webster Bank
Media:
Meghan Thompson, 203-578-2287
mthompson@websterbank.com
or
Investors:
Terry Mangan, 203-578-2318
tmangan@websterbank.com
Conference Call
A conference call covering Webster's 2005 second quarter earnings
announcement will be held today, Tuesday, July 19, at 11:00 a.m. Eastern Time
and may be heard through Webster's investor relations website at
http://www.wbst.com, or in listen-only mode by calling 1-877-407-3980 or 201-
689-8475 internationally. 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 2004. Except as required by law, Webster does not
undertake to update any such forward looking information.
In addition to results presented in accordance with GAAP, this press
release contains certain non-GAAP financial measures. We believe that
providing certain non-GAAP financial measures, such as cash basis net income,
provides investors with information useful in understanding our financial
performance, our performance trends and financial position. A reconciliation
of cash basis net income to net income is included in the accompanying
financial tables, elsewhere in this report.
Selected Financial Highlights (unaudited)
At or for the Three At or for the Six
Months Ended June 30, Months Ended June 30,
(In thousands, except per
share data) 2005 2004 2005 2004
Net income and performance
ratios (annualized):
Net income $46,258 $45,843 $93,753 $88,166
Net income per diluted
common share 0.85 0.91 1.73 1.81
Return on average
shareholders' equity 11.57% 13.86% 11.85% 14.06%
Return on average tangible
equity 20.20 22.13 20.74 20.70
Return on average assets 1.07 1.12 1.09 1.14
Noninterest income as a
percentage of total
revenue 29.24 33.47 29.25 33.77
Efficiency ratio (a,d) 61.86 56.98 60.67 57.18
Cash income and
performance ratios
(annualized) (b):
Net income $46,258 $45,843 $93,753 $88,166
Stock-based compensation,
net of tax 1,620 1,206 3,023 1,981
Intangible amortization,
net of tax 3,256 2,978 6,442 5,638
Cash income 51,134 50,027 103,218 95,785
Cash income per diluted
common share 0.94 0.99 1.90 1.96
Cash return on average
shareholders' equity 12.78% 15.12% 13.04% 15.27%
Cash return on average
tangible equity 22.33 24.15 22.83 22.48
Cash return on average
assets 1.18 1.22 1.20 1.23
Asset quality:
Allowance for loan losses $154,822 $146,511 $154,822 $146,511
Nonperforming assets 44,241 47,658 44,241 47,658
Allowance for loan losses
/ total loans 1.31% 1.30% 1.31% 1.30%
Net charge-offs/ average
loans (annualized) (0.01) 0.08 0.01 0.11
Nonperforming loans /
total loans 0.35 0.39 0.35 0.39
Nonperforming assets /
total assets 0.25 0.28 0.25 0.28
Allowance for loan losses
/ nonperforming loans 369.49 332.24 369.49 332.24
Other ratios (annualized):
Tangible capital ratio 5.38% 4.71% 5.38% 4.71%
Shareholders' equity /
total assets 9.22 8.52 9.22 8.52
Interest-rate spread 3.29 2.99 3.28 3.02
Net interest margin 3.32 3.02 3.32 3.05
Share related:
Book value per common
share $29.94 $27.37 $29.94 $27.37
Tangible book value per
common share 17.18 15.02 17.18 15.02
Common stock closing price 46.69 47.02 46.69 47.02
Dividends declared per
common share 0.25 0.23 0.48 0.44
Common shares issued and
outstanding 53,807 53,016 53,807 53,016
Basic shares (average) 53,618 49,699 53,594 47,922
Diluted shares (average) 54,278 50,475 54,244 48,767
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) For purposes of this computation, unrealized gains (losses) are
excluded from the average balance for rate calculations.
(d) Excluding conversion and infrastructure costs in 2005, the efficiency
ratio would be 59.95% and 59.39% for the three and six months ended
June 30, 2005, respectively.
Consolidated Statements of Condition (unaudited)
June 30, March 31, June 30,
(In thousands) 2005 2005 2004
Assets:
Cash and due from depository
institutions $322,376 $266,088 $252,818
Short-term investments 13,088 79,676 39,887
Securities:
Trading, at fair value 1,409 1,038 1,944
Available for sale, at fair
value 2,649,930 2,591,270 3,853,154
Held-to-maturity securities 1,196,368 1,212,934 284,392
Total securities 3,847,707 3,805,242 4,139,490
Loans held for sale 245,174 352,233 153,396
Loans:
Residential mortgages 4,690,318 4,722,897 4,731,950
Commercial 2,781,938 2,674,901 2,455,512
Commercial real estate 1,666,235 1,690,973 1,572,289
Consumer 2,671,197 2,608,303 2,530,443
Total loans 11,809,688 11,697,074 11,290,194
Allowance for loan losses (154,822) (152,519) (146,511)
Loans, net 11,654,866 11,544,555 11,143,683
Accrued interest receivable 67,380 67,953 59,737
Premises and equipment, net 171,579 161,635 132,842
Goodwill and intangible assets 708,387 714,490 681,252
Cash surrender value of life
insurance 233,129 230,823 224,082
Prepaid expenses and
other assets 208,511 190,133 198,683
Total Assets $17,472,197 $17,412,828 $17,025,870
Liabilities and Shareholders'
Equity:
Deposits:
Demand deposits $1,509,957 $1,426,798 $1,362,339
NOW accounts 1,640,692 1,535,595 1,423,822
Money market deposit accounts 1,892,664 1,904,158 2,013,894
Savings accounts 2,284,076 2,276,623 2,281,312
Certificates of deposit 3,830,999 3,545,287 3,184,991
Total retail deposits 11,158,388 10,688,461 10,266,358
Treasury deposits 420,846 295,073 106,564
Deposits held in divested
branches -- 48,301 --
Total deposits 11,579,234 11,031,835 10,372,922
Federal Home Loan Bank advances 2,126,437 2,319,722 2,731,332
Securities sold under agreements
to repurchase and
other short-term debt 1,345,910 1,670,950 1,670,594
Other long-term debt 674,117 674,240 695,417
Accrued expenses and other
liabilities 126,011 142,910 95,112
Total liabilities 15,851,709 15,839,657 15,565,377
Preferred stock of subsidiary
corporation 9,577 9,577 9,577
Shareholders' equity 1,610,911 1,563,594 1,450,916
Total Liabilities and
Shareholders' Equity $17,472,197 $17,412,828 $17,025,870
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands, except per share
data) 2005 2004 2005 2004
Interest income:
Loans $166,967 $129,084 $325,754 $247,675
Securities and short-term
investments 42,684 45,162 83,583 89,770
Loans held for sale 2,964 2,139 5,696 3,209
Total interest income 212,615 176,385 415,033 340,654
Interest expense:
Deposits 44,099 29,172 79,967 55,002
Borrowings 38,681 33,746 76,999 66,379
Total interest expense 82,780 62,918 156,966 121,381
Net interest income 129,835 113,467 258,067 219,273
Provision for loan losses 2,000 5,000 5,500 10,000
Net interest income after
provision for loan losses 127,835 108,467 252,567 209,273
Noninterest income:
Deposit service fees 21,747 19,250 40,876 36,435
Insurance revenue 10,562 10,596 22,364 22,234
Loan and loan servicing fees 7,274 7,305 16,203 13,954
Wealth and investment services 6,028 5,849 11,423 10,965
Gain on sale of loans and loan
servicing, net 3,012 5,321 5,548 6,346
Increase in cash surrender value
of life insurance 2,302 2,177 4,540 4,131
Financial advisory services -- -- -- 3,808
Other 2,013 964 4,256 2,812
52,938 51,462 105,210 100,685
Gain on sale of securities, net 710 5,616 1,466 11,116
Total noninterest income 53,648 57,078 106,676 111,801
Noninterest expenses:
Compensation and benefits 57,854 53,659 115,756 106,786
Occupancy 10,810 8,402 21,669 16,767
Furniture and equipment 11,611 8,993 22,409 16,634
Intangible amortization 5,009 4,582 9,911 8,674
Marketing 3,664 3,630 6,947 6,614
Professional services 3,972 2,938 7,742 5,837
Conversion and infrastructure
costs 3,506 -- 4,640 --
Acquistion costs 151 265 329 265
Other 16,928 14,710 31,876 27,743
Total noninterest expenses 113,505 97,179 221,279 189,320
Income before income taxes 67,978 68,366 137,964 131,754
Income taxes 21,720 22,523 44,211 43,588
Net income $46,258 $45,843 $93,753 $88,166
Diluted shares (average) 54,278 50,475 54,244 48,767
Net income per common share:
Basic $0.86 $0.92 $1.75 $1.84
Diluted 0.85 0.91 1.73 1.81
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended
June 30, March 31, Dec. 31 Sept. 30, June 30,
(In thousands, except 2005 2005 2004 2004 2004
per share data)
Interest income:
Loans $166,967 $158,787 $154,177 $145,456 $129,084
Securities and short-
term investments 42,684 40,899 42,807 45,541 45,162
Loans held for sale 2,964 2,732 1,718 1,755 2,139
Total interest income 212,615 202,418 198,702 192,752 176,385
Interest expense:
Deposits 44,099 35,868 32,993 32,611 29,172
Borrowings 38,681 38,318 38,109 38,853 33,746
Total interest expense 82,780 74,186 71,102 71,464 62,918
Net interest income 129,835 128,232 127,600 121,288 113,467
Provision for loan
losses 2,000 3,500 4,000 4,000 5,000
Net interest income
after provision for
loan losses 127,835 124,732 123,600 117,288 108,467
Noninterest income:
Deposit service fees 21,747 19,129 20,712 20,596 19,250
Insurance revenue 10,562 11,802 10,348 10,924 10,596
Loan and loan servicing
fees 7,274 8,929 7,727 6,893 7,305
Wealth and investment
services 6,028 5,395 5,198 6,044 5,849
Gain on sale of loans
and loan servicing, net 3,012 2,536 2,492 4,467 5,321
Increase in cash
surrender value of life
insurance 2,302 2,238 2,283 2,421 2,177
Other 2,013 2,243 2,692 1,912 964
52,938 52,272 51,452 53,257 51,462
Gain on sale of
securities, net 710 756 (2,646) 5,843 5,616
Total noninterest
income 53,648 53,028 48,806 59,100 57,078
Noninterest expenses:
Compensation and
benefits 57,854 57,902 57,128 55,406 53,659
Occupancy 10,810 10,859 9,909 9,144 8,402
Furniture and equipment 11,611 10,798 10,889 10,103 8,993
Intangible amortization 5,009 4,902 4,844 4,827 4,582
Marketing 3,664 3,283 2,533 4,233 3,630
Professional services 3,972 3,770 5,523 4,294 2,938
Conversion and
infrastructure costs 3,506 1,134 300 200 --
Acquistion costs 151 178 426 -- 265
Debt prepayment
penalties -- -- 45,761 -- --
Other 16,928 14,948 16,735 15,562 14,710
Total noninterest
expenses 113,505 107,774 154,048 103,769 97,179
Income before income
taxes 67,978 69,986 18,358 72,619 68,366
Income taxes 21,720 22,491 2,052 23,258 22,523
Net income $46,258 $47,495 $16,306 $49,361 $45,843
Diluted shares (average) 54,278 54,217 54,045 53,767 50,475
Net income per common
share:
Basic $0.86 $0.89 $0.31 $0.93 $0.92
Diluted 0.85 0.88 0.30 0.92 0.91
See Selected Financial Highlights for footnotes.
Retail and Wholesale Interest-Rate Spreads(unaudited)
Three Months Ended, June March December September June
2005 2005 2004 2004 2004
Interest-rate spread
Yield on interest-
earning assets 5.40% 5.22% 5.02% 4.82% 4.68%
Cost of interest-
bearing liabilities 2.11 1.94 1.80 1.78 1.69
Interest-rate spread 3.29% 3.28% 3.22% 3.04% 2.99%
Net interest margin 3.32 3.32 3.25 3.06 3.02
Retail interest-rate spread
Yield on loans and
loans held for sale 5.66% 5.44% 5.25% 5.07% 4.93%
Cost of deposits 1.57 1.37 1.25 1.25 1.23
Spread 4.09% 4.07% 4.00% 3.82% 3.70%
Wholesale interest-rate spread
Yield on securities
and short-term
investments 4.62% 4.52% 4.37% 4.18% 4.09%
Cost of borrowings 3.54 3.23 2.91 2.80 2.50
Spread 1.08% 1.29% 1.46% 1.38% 1.59%
Consolidated Average Statements of Condition (unaudited)
Three Months Ended June 30, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,727,278 $166,968 5.68%
Securities 3,851,741 44,687 4.62(c)
Loans held for sale 242,351 2,964 4.89
Short-term investments 13,260 131 3.91
Total interest-earning
assets 15,834,630 214,750 5.40
Noninterest-earning assets 1,493,233
Total assets $17,327,863
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,451,236 -- --
Savings, NOW and money market
deposit accounts 5,749,931 16,181 1.13
Time deposits 4,078,793 27,918 2.75
Total deposits 11,279,960 44,099 1.57
Federal Home Loan Bank
advances 2,210,809 18,160 3.25
Repurchase agreements
and other short-term debt 1,449,355 9,872 2.69
Other long-term debt 674,178 10,649 6.32
Total borrowings 4,334,342 38,681 3.54
Total interest-bearing
liabilities 15,614,302 82,780 2.11
Noninterest-bearing
liabilities 104,104
Total liabilities 15,718,406
Preferred stock of
subsidiary corporation 9,577
Shareholders' equity 1,599,880
Total liabilities and
shareholders' equity $17,327,863
131,970
Less: tax-equivalent
adjustment (2,135)
Net interest income $129,835
Interest-rate spread 3.29%
Net interest margin 3.32%
Three Months Ended June 30, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $10,440,916 $129,084 4.93%
Securities 4,485,738 46,277 4.11(c)
Loans held for sale 169,092 2,139 5.06
Short-term investments 29,891 84 1.11
Total interest-earning
assets 15,125,637 177,584 4.68
Noninterest-earning assets 1,219,002
Total assets $16,344,639
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,205,224 -- --
Savings, NOW and money market
deposit accounts 5,282,018 11,456 0.87
Time deposits 3,056,167 17,716 2.33
Total deposits 9,543,409 29,172 1.23
Federal Home Loan Bank
advances 2,827,253 19,905 2.79
Repurchase agreements
and other short-term debt 1,860,747 4,888 1.04
Other long-term debt 671,223 8,953 5.34
Total borrowings 5,359,223 33,746 2.50
Total interest-bearing
liabilities 14,902,632 62,918 1.69
Noninterest-bearing
liabilities 109,360
Total liabilities 15,011,992
Preferred stock of
subsidiary corporation 9,577
Shareholders' equity 1,323,070
Total liabilities and
shareholders' equity $16,344,639
114,666
Less: tax-equivalent
adjustment (1,199)
Net interest income $113,467
Interest-rate spread 2.99%
Net interest margin 3.02%
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
Six Months Ended June 30, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,706,386 $325,755 5.56%
Securities 3,801,582 87,376 4.58(c)
Loans held for sale 228,230 5,696 4.99
Short-term investments 20,020 273 2.71
Total interest-
earning assets 15,756,218 419,100 5.31
Noninterest-earning assets 1,447,520
Total assets $17,203,738
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,398,593 -- --
Savings, NOW and money
market deposit accounts 5,677,509 29,140 1.04
Time deposits 3,886,783 50,827 2.64
Total deposits 10,962,885 79,967 1.47
Federal Home Loan Bank
advances 2,308,437 36,747 3.17
Fed funds and repurchase
agreements 1,553,899 19,415 2.49
Other long-term debt 677,630 20,837 6.15
Total borrowings 4,539,966 76,999 3.38
Total interest-bearing
liabilities 15,502,851 156,966 2.03
Noninterest-bearing
liabilities 108,370
Total liabilities 15,611,221
Preferred stock of
subsidiary corporation 9,577
Shareholders' equity 1,582,940
Total liabilities and
shareholders' equity $17,203,738
262,134
Less: tax-equivalent adjustment (4,067)
Net interest income $258,067
Interest-rate spread 3.28%
Net interest margin 3.32%
Six Months Ended June 30, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $9,904,542 $247,675 4.99%
Securities 4,408,620 91,438 4.16(c)
Loans held for sale 127,184 3,209 5.05
Short-term investments 32,825 150 0.90
Total interest-
earning assets 14,473,171 342,472 4.73
Noninterest-earning assets 1,054,197
Total assets $15,527,368
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,132,037 -- --
Savings, NOW and money
market deposit accounts 4,910,528 20,440 0.84
Time deposits 2,922,958 34,562 2.38
Total deposits 8,965,523 55,002 1.23
Federal Home Loan Bank
advances 2,628,041 38,909 2.93
Fed funds and repurchase
agreements 1,977,133 10,319 1.03
Other long-term debt 601,991 17,151 5.70
Total borrowings 5,207,165 66,379 2.53
Total interest-bearing
liabilities 14,172,688 121,381 1.71
Noninterest-bearing
liabilities 90,883
Total liabilities 14,263,571
Preferred stock of
subsidiary corporation 9,577
Shareholders' equity 1,254,220
Total liabilities and
shareholders' equity $15,527,368
221,091
Less: tax-equivalent adjustment (1,818)
Net interest income $219,273
Interest-rate spread 3.02%
Net interest margin 3.05%
See Selected Financial Highlights for footnotes.
At or for the Three Months Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
(Dollars in 2005 2005 2004 2004 2004
thousands)
Asset Quality
Nonperforming
loans:
Commercial:
Commercial $19,073 $17,112 $14,624 $12,407 $15,895
Equipment
financing 3,466 3,800 3,383 4,501 5,021
Total
commercial 22,539 20,912 18,007 16,908 20,916
Commercial
real estate 11,654 15,609 8,431 11,157 13,757
Residential 6,690 7,528 7,796 7,695 8,599
Consumer 1,019 1,586 1,894 1,204 826
Total
nonperforming
loans 41,902 45,635 36,128 36,964 44,098
Loans held
for sale -- 492 -- -- --
Other real
estate owned
and repossessed
assets:
Commercial 2,217 2,472 2,824 2,482 3,192
Residential 112 446 100 527 238
Consumer 10 85 114 20 130
Total other real
estate owned
and repossessed
assets 2,339 3,003 3,038 3,029 3,560
Total nonperforming
assets $44,241 $49,130 $39,166 $39,993 $47,658
Allowance for Loan Losses
Beginning
balance $152,519 $150,112 $148,179 $146,511 $123,613
Allowance for
purchased loans -- -- 617 -- 20,081
Provision 2,000 3,500 4,000 4,000 5,000
Charge-offs:
Commercial 1,432 2,155 3,432 3,556 2,646
Residential 178 167 367 92 187
Consumer 201 142 147 195 174
Total charge-
offs 1,811 2,464 3,946 3,843 3,007
Recoveries (2,114) (1,371) (1,262) (1,511) (824)
Net loan
(recoveries)
charge-offs (303) 1,093 2,684 2,332 2,183
Ending balance $154,822 $152,519 $150,112 $148,179 $146,511
Asset Quality Ratios:
Allowance for
loan losses
/ total loans 1.31% 1.30% 1.28% 1.28% 1.30%
Net charge-offs
(recoveries)/
average loans
(annualized) (0.01) 0.04 0.09 0.08 0.08
Nonperforming
loans / total
loans 0.35 0.39 0.31 0.32 0.39
Nonperforming
assets / total
assets 0.25 0.28 0.23 0.22 0.28
Allowance for
loan losses /
nonperforming
loans 369.49 334.21 415.50 400.87 332.24
SOURCE Webster Financial Corporation
Webster Bank Media: Meghan Thompson, 203-578-2287 mthompson@websterbank.com or
Investors: Terry Mangan, 203-578-2318 tmangan@websterbank.com
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