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WATERBURY, Conn., Oct. 19 /PRNewswire-FirstCall/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced net income of $46.6 million in the third quarter compared to $49.4
million in the year-ago quarter. Net income per diluted share was $.86
compared to $.92 a year ago. For the first nine months of 2005, net income was
$140.4 million compared to $137.5 million a year ago. Net income per share was
$2.59 and $2.73 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.
Cash net income, which adds stock-based compensation and intangible
amortization expenses back to net income, was $51.3 million compared to $53.8
million in the year-ago quarter. Cash net income per share was $.95 in the
third quarter compared to $1.00 a year ago. For the first nine months of 2005,
cash net income was $154.5 million compared to $149.5 million a year ago. Cash
net income per share was $2.85 and $2.96 in the respective periods.
Included in net income are gains on the sale of securities. In the third
quarter, these gains represented $.01 per share compared to $.07 a year ago.
For the first nine months of 2005, securities gains were $.03 per share
compared to $.22 a year ago. The reduced level of securities and securities
gains in 2005 is consistent with Webster's emphasis on delivering high quality
earnings. In addition, one-time expenses equivalent to $.03 per share in the
third quarter and $.08 in the first nine months of 2005 were incurred in
support of Webster's core infrastructure conversion project.
"Our third quarter results demonstrate continued strong core growth in
deposits and commercial loans and the further strengthening of our balance
sheet," stated Webster Chairman and Chief Executive Officer James C. Smith.
"Webster's plan for growth is producing high quality earnings for our
shareholders in the near term while affirming our commitment to investing in
our future."
Revenues
Total revenues (net interest income plus total noninterest income) were
$185.6 million in the third quarter, compared to $180.4 million a year ago, an
increase of 3 percent. Adjusting both periods to exclude securities gains,
total revenues grew by 6 percent. Driving the growth in revenues was net
interest income, which totaled $129.6 million in the third quarter of 2005
compared to $121.3 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 3.26 percent in the
third quarter, an improvement of 20 basis points from 3.06 percent in the
year-ago period. 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 recent interest
rate environment, with longer-term interest rates not rising at the same level
as short-term rates, resulted in a 6 basis point decline from the net interest
margin of 3.32 percent in the second quarter of 2005.
In the third quarter of 2005, total noninterest income was $56.0 million
compared to $59.1 million in the year-ago period. Excluding securities gains
of $1.1 million and $5.8 million in the respective periods, noninterest income
increased in the third quarter to $54.8 million from $53.3 million in the
year-ago period. Deposit service fees grew by $1.6 million, or 8 percent, from
a year ago aided by recently acquired HSA Bank while loan and loan servicing
fees grew by 12 percent. Gains on sales of loans and loan servicing totaled
$3.7 million in the quarter and decreased 17 percent from a year ago primarily
as a result of the impact of competitive pricing in the market.
The provision for loan losses totaled $2.0 million in the third quarter
and exceeded net loan charge-offs by $0.2 million. This compares to a
provision of $4.0 million a year ago, which exceeded net loan charge-offs by
$1.7 million. The annualized net loan charge-off ratio was 0.06 percent of
average loans in the third quarter compared to 0.08 percent a year ago.
Expenses
Total noninterest expenses for the 2005 third quarter were $114.9 million,
which includes $2.2 million of non-recurring charges under Webster's core
infrastructure conversion project, compared to $103.8 million in the year-ago
period. Adjusting each period for acquisitions, investments in de novo branch
expansion and the non-recurring core infrastructure conversion charges, total
noninterest expenses were $106.8 million in the third quarter and $101.8
million a year ago for an increase of just under 5 percent. The increase
reflects higher employee-related costs and investments in technology to
support Webster's new core systems.
Balance Sheet Trends
Total assets were $17.8 billion at September 30, 2005, same as a year ago.
Total loans of $12.2 billion increased 5 percent from $11.6 billion the prior
year, while deposits were $11.7 billion, up 12 percent from $10.4 billion a
year ago.
"Webster's double-digit organic growth in deposits and commercial loans
over the past year reflects increasing success in our markets," stated Webster
President and Chief Operating Officer William T. Bromage. "Our expanding
regional footprint and our role as a trusted local provider offer substantial
opportunity for future growth."
At the end of the third quarter, commercial loans were $4.6 billion,
including commercial and industrial loans at $3.0 billion, up 15 percent from
a year ago, and commercial real estate loans at $1.6 billion, up 3 percent.
Consumer loans, primarily home equity loans and lines, increased 6 percent to
$2.7 billion compared to $2.6 billion a year ago. Commercial, commercial real
estate and consumer loans comprised 61 percent of total loans at September 30,
2005 compared to 59 percent a year ago.
Demand and NOW deposits have grown by 6 percent and 26 percent (14 percent
adjusted for the HSA Bank acquisition), respectively, compared to a year ago
while certificates of deposit balances have grown by 29 percent as consumer
preferences have shifted to this product offering. Wholesale borrowings as a
percent of total assets declined to 25 percent at September 30, 2005 compared
to 32 percent a year ago as total deposit growth exceeded loan growth by $601
million over the past year.
"We actively manage our balance sheet, consistent with our stated
operating principles," stated Webster Chief Financial Officer William J.
Healy. "In the past year, we've made significant progress improving our loan
to deposit ratio, reducing reliance on wholesale borrowings and building our
tangible equity ratio."
Book value per common share of $30.41 at September 30, 2005 increased from
$28.54 a year ago. Tangible book value per share of $17.71 at September 30,
2005 increased from $16.30 last year. The ratio of tangible equity to tangible
assets increased to 5.45 percent at September 30, 2005 compared to 4.92
percent a year ago. Return on average tangible equity was 19.6 percent in the
third quarter compared to 23.6 percent a year ago while the cash return on
average tangible equity was 21.6 percent and 25.7 percent in the respective
periods.
Asset Quality
Nonperforming assets increased during the quarter and totaled $60.4
million, or 0.34 percent of total assets, at September 30, 2005 compared to
$44.2 million, or 0.25 percent, at June 30 and $40.0 million, or 0.22 percent,
a year ago.
The allowance for loan losses was $155.1 million, or 1.27 percent of total
loans, at September 30, 2005 compared to $148.2 million, or 1.28 percent, a
year ago and $154.8 million, or 1.31 percent, at June 30. The ratio of the
allowance to nonperforming loans at September 30, 2005 was 265 percent
compared to 401 percent a year ago and 369 percent at June 30.
Webster Financial Corporation is the holding company for Webster Bank,
National Association and Webster Insurance. With $17.8 billion in assets,
Webster provides business and consumer banking, mortgage, insurance, financial
planning, trust and investment services through 154 banking offices, 293 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.
Conference Call
A conference call covering Webster's 2005 third quarter earnings
announcement will be held today, Wednesday, October 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.
Forward-looking Statements
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.
Non-GAAP Financial Measures
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.
Media Contact
Clark Finley 203-578-2287
cfinley@websterbank.com
Investor Contact
Terry Mangan 203-578-2318
tmangan@websterbank.com
Selected Financial Highlights (unaudited)
At or for the Three At or for the Nine
Months Ended Months Ended
September 30, September 30,
(In thousands, except per
share data) 2005 2004 2005 2004
Net income and performance
ratios (annualized):
Net income $46,602 $49,361 $140,355 $137,527
Net income per diluted
common share 0.86 0.92 2.59 2.73
Return on average
shareholders' equity 11.39% 13.25% 11.69% 13.75%
Return on average tangible
equity 19.59 23.56 20.34 21.64
Return on average assets 1.06 1.13 1.08 1.13
Noninterest income as a
percentage of total revenue 30.16 32.76 29.56 33.41
Efficiency ratio (a,d) 61.93 57.53 61.09 57.30
Cash income and performance
ratios (annualized) (b):
Net income $46,602 $49,361 $140,355 $137,527
Stock-based compensation,
net of tax 1,470 1,260 4,493 3,242
Intangible amortization,
net of tax 3,251 3,138 9,693 8,776
Cash income 51,323 53,759 154,541 149,545
Cash income per diluted
common share 0.95 1.00 2.85 2.96
Cash return on average
shareholders' equity 12.55% 14.43% 12.87% 14.95%
Cash return on average
tangible equity 21.57 25.65 22.39 23.53
Cash return on average assets 1.16 1.23 1.19 1.23
Asset quality:
Allowance for loan losses $155,052 $148,179 $155,052 $148,179
Nonperforming assets 60,355 39,993 60,355 39,993
Allowance for loan losses/
total loans 1.27% 1.28% 1.27% 1.28%
Net charge-offs/average
loans (annualized) 0.06 0.08 0.03 0.10
Nonperforming loans/
total loans 0.48 0.32 0.48 0.32
Nonperforming assets/
total assets 0.34 0.22 0.34 0.22
Allowance for loan losses/
nonperforming loans 264.87 400.87 264.87 400.87
Other ratios (annualized):
Tangible capital ratio 5.45% 4.92% 5.45% 4.92%
Shareholders' equity/
total assets 9.19 8.53 9.19 8.53
Interest-rate spread 3.22 3.04 3.26 3.02
Net interest margin 3.26 3.06 3.30 3.05
Share related:
Book value per common share $30.41 $28.54 $30.41 $28.54
Tangible book value per
common share 17.71 16.30 17.71 16.30
Common stock closing price 44.96 49.39 44.96 49.39
Dividends declared per
common share 0.25 0.23 0.73 0.67
Common shares issued and
outstanding 53,795 53,185 53,795 53,185
Basic shares (average) 53,648 52,938 53,612 49,606
Diluted shares (average) 54,310 53,767 54,269 50,448
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 cost in 2005, the efficiency
ratio would be 60.73% and 59.85% for the three and nine months ended
September 30, 2005, respectively.
Consolidated Statements of Condition (unaudited)
September 30, June 30, September 30,
(In thousands) 2005 2005 2004
Assets:
Cash and due from depository
institutions $269,859 $322,376 $234,449
Short-term investments 9,224 13,088 25,783
Securities:
Trading, at fair value 1,901 1,409 2,635
Available for sale, at fair value 2,668,226 2,649,930 4,164,056
Held-to-maturity securities 1,161,507 1,196,368 323,378
Total securities 3,831,634 3,847,707 4,490,069
Loans held for sale 247,365 245,174 111,175
Loans:
Residential mortgages 4,812,298 4,690,318 4,773,284
Commercial 2,978,537 2,781,938 2,586,351
Commercial real estate 1,666,384 1,666,235 1,619,968
Consumer 2,740,019 2,671,197 2,595,629
Total loans 12,197,238 11,809,688 11,575,232
Allowance for loan losses (155,052) (154,822) (148,179)
Loans, net 12,042,186 11,654,866 11,427,053
Accrued interest receivable 73,253 67,380 65,812
Premises and equipment, net 179,463 171,579 136,385
Goodwill and intangible assets 703,740 708,387 676,176
Cash surrender value of life insurance 235,467 233,129 226,503
Prepaid expenses and other assets 214,865 208,511 408,837
Total Assets $17,807,056 $17,472,197 $17,802,242
Liabilities and Shareholders' Equity:
Deposits:
Demand deposits $1,431,642 $1,509,957 $1,356,924
NOW accounts 1,600,481 1,640,692 1,271,553
Money market deposit accounts 1,971,075 1,892,664 2,153,852
Savings accounts 2,032,927 2,284,076 2,243,949
Certificates of deposit 4,118,765 3,830,999 3,204,624
Total retail deposits 11,154,890 11,158,388 10,230,902
Treasury deposits 507,302 420,846 208,521
Total deposits 11,662,192 11,579,234 10,439,423
Federal Home Loan Bank advances 2,064,963 2,126,437 3,021,503
Securities sold under agreements
to repurchase and other
short-term debt 1,633,906 1,345,910 1,973,478
Other long-term debt 673,999 674,117 695,316
Accrued expenses and other
liabilities 126,537 126,011 144,963
Total liabilities 16,161,597 15,851,709 16,274,683
Preferred stock of subsidiary
corporation 9,577 9,577 9,577
Shareholders' equity 1,635,882 1,610,911 1,517,982
Total Liabilities and
Shareholders' Equity $17,807,056 $17,472,197 $17,802,242
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per 2005 2004 2005 2004
share data)
Interest income:
Loans $175,680 $145,456 $501,434 $393,131
Securities and short-term
investments 43,775 45,541 127,358 135,311
Loans held for sale 3,686 1,755 9,382 4,964
Total interest income 223,141 192,752 638,174 533,406
Interest expense:
Deposits 51,338 32,611 131,305 87,613
Borrowings 42,191 38,853 119,190 105,232
Total interest expense 93,529 71,464 250,495 192,845
Net interest income 129,612 121,288 387,679 340,561
Provision for loan losses 2,000 4,000 7,500 14,000
Net interest income after
provision for loan losses 127,612 117,288 380,179 326,561
Noninterest income:
Deposit service fees 22,182 20,596 63,058 57,031
Insurance revenue 10,973 10,924 33,337 33,158
Loan and loan servicing fees 7,739 6,893 23,942 20,847
Wealth and investment services 5,554 6,044 16,977 17,009
Gain on sale of loans and loan
servicing, net 3,703 4,467 9,251 10,813
Increase in cash surrender value
of life insurance 2,341 2,421 6,881 6,552
Financial advisory services - - - 3,808
Other 2,347 1,912 6,603 4,724
54,839 53,257 160,049 153,942
Gain on sale of securities, net 1,141 5,843 2,607 16,959
Total noninterest income 55,980 59,100 162,656 170,901
Noninterest expenses:
Compensation and benefits 60,808 55,406 176,564 162,192
Occupancy 10,482 9,144 32,151 25,911
Furniture and equipment 13,009 10,103 35,418 26,737
Intangible amortization 5,001 4,827 14,912 13,501
Marketing 3,339 4,233 10,286 10,847
Professional services 3,626 4,294 11,368 10,131
Conversion and infrastructure costs 2,217 200 6,857 200
Other 16,450 15,562 48,655 43,570
Total noninterest expenses 114,932 103,769 336,211 293,089
Income before income taxes 68,660 72,619 206,624 204,373
Income taxes 22,058 23,258 66,269 66,846
Net income $46,602 $49,361 $140,355 $137,527
Diluted shares (average) 54,310 53,767 54,269 50,448
Net income per common share:
Basic $0.87 $0.93 $2.62 $2.77
Diluted 0.86 0.92 2.59 2.73
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended
Sept. 30, June 30, March 31, Dec. 31 Sept. 30,
(In thousands, except 2005 2005 2005 2004 2004
per share data)
Interest income:
Loans $175,680 $166,967 $158,787 $154,177 $145,456
Securities and short-
term investments 43,775 42,684 40,899 42,807 45,541
Loans held for sale 3,686 2,964 2,732 1,718 1,755
Total interest income 223,141 212,615 202,418 198,702 192,752
Interest expense:
Deposits 51,338 44,099 35,868 32,993 32,611
Borrowings 42,191 38,681 38,318 38,109 38,853
Total interest expense 93,529 82,780 74,186 71,102 71,464
Net interest income 129,612 129,835 128,232 127,600 121,288
Provision for loan losses 2,000 2,000 3,500 4,000 4,000
Net interest income
after provision for
loan losses 127,612 127,835 124,732 123,600 117,288
Noninterest income:
Deposit service fees 22,182 21,747 19,129 20,712 20,596
Insurance revenue 10,973 10,562 11,802 10,348 10,924
Loan and loan servicing
fees 7,739 7,274 8,929 7,727 6,893
Wealth and investment
services 5,554 6,028 5,395 5,198 6,044
Gain on sale of loans
and loan servicing, net 3,703 3,012 2,536 2,492 4,467
Increase in cash surrender
value of life insurance 2,341 2,302 2,238 2,283 2,421
Other 2,347 2,013 2,243 2,692 1,912
54,839 52,938 52,272 51,452 53,257
Gain (loss) on sale of
securities, net 1,141 710 756 (2,646) 5,843
Total noninterest income 55,980 53,648 53,028 48,806 59,100
Noninterest expenses:
Compensation and benefits 60,808 57,854 57,902 57,128 55,406
Occupancy 10,482 10,810 10,859 9,909 9,144
Furniture and equipment 13,009 11,611 10,798 10,889 10,103
Intangible amortization 5,001 5,009 4,902 4,844 4,827
Marketing 3,339 3,664 3,283 2,533 4,233
Professional services 3,626 3,972 3,770 5,523 4,294
Conversion and
infrastructure costs 2,217 3,506 1,134 300 200
Debt prepayment penalties - - - 45,761 -
Other 16,450 17,079 15,126 17,161 15,562
Total noninterest
expenses 114,932 113,505 107,774 154,048 103,769
Income before income taxes 68,660 67,978 69,986 18,358 72,619
Income taxes 22,058 21,720 22,491 2,052 23,258
Net income $46,602 $46,258 $47,495 $16,306 $49,361
Diluted shares (average) 54,310 54,278 54,217 54,045 53,767
Net income per common
share:
Basic $0.87 $0.86 $0.89 $0.31 $0.93
Diluted 0.86 0.85 0.88 0.30 0.92
See Selected Financial Highlights for footnotes.
Retail and Wholesale Interest-Rate Spreads (unaudited)
Three Months Ended, September June March December September
2005 2005 2005 2004 2004
Interest-rate spread
Yield on interest-earning assets 5.55% 5.40% 5.22% 5.02% 4.82%
Cost of interest-bearing
liabilities 2.33 2.11 1.94 1.80 1.78
Interest-rate spread 3.22% 3.29% 3.28% 3.22% 3.04%
Net interest margin 3.26 3.32 3.32 3.25 3.06
Retail interest-rate spread
Yield on loans and loans held
for sale 5.83% 5.66% 5.44% 5.25% 5.07%
Cost of deposits 1.76 1.57 1.37 1.25 1.25
Spread 4.07% 4.09% 4.07% 4.00% 3.82%
Wholesale interest-rate spread
Yield on securities and short-
term investments 4.67% 4.62% 4.52% 4.37% 4.18%
Cost of borrowings 3.84 3.54 3.23 2.91 2.80
Spread 0.83% 1.08% 1.29% 1.46% 1.38%
Consolidated Average Statements of Condition (unaudited)
Three Months Ended September 30, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,974,880 $175,685 5.81%
Securities 3,906,118 45,997 4.68(c)
Loans held for sale 223,002 3,686 6.61
Short-term investments 20,044 117 2.28
Total interest-earning assets 16,124,044 225,485 5.55
Noninterest-earning assets 1,505,579
Total assets $17,629,623
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,477,230 - -
Savings, NOW and money market
deposit accounts 5,679,259 18,021 1.26
Time deposits 4,413,329 33,317 3.00
Total deposits 11,569,818 51,338 1.76
Federal Home Loan Bank advances 2,128,760 19,134 3.52
Repurchase agreements and other
short-term debt 1,518,921 11,859 3.06
Other long-term debt 674,056 11,198 6.65
Total borrowings 4,321,737 42,191 3.84
Total interest-bearing liabilities 15,891,555 93,529 2.33
Noninterest-bearing liabilities 92,381
Total liabilities 15,983,936
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,636,110
Total liabilities and
shareholders' equity $17,629,623
131,956
Less: tax-equivalent adjustment (2,344)
Net interest income $129,612
Interest-rate spread 3.22%
Net interest margin 3.26%
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
Three Months Ended September 30, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,401,076 $145,456 5.06%
Securities 4,456,849 47,095 4.20 (c)
Loans held for sale 129,157 1,755 5.44
Short-term investments 31,231 106 1.33
Total interest-earning assets 16,018,313 194,412 4.82
Noninterest-earning assets 1,413,030
Total assets $17,431,343
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,357,230 - -
Savings, NOW and money market
deposit accounts 5,673,797 12,703 0.89
Time deposits 3,366,232 19,908 2.35
Total deposits 10,397,259 32,611 1.25
Federal Home Loan Bank advances 3,147,887 23,373 2.91
Repurchase agreements and other
short-term debt 1,608,818 5,919 1.44
Other long-term debt 695,365 9,561 5.50
Total borrowings 5,452,070 38,853 2.80
Total interest-bearing
liabilities 15,849,329 71,464 1.78
Noninterest-bearing liabilities 82,696
Total liabilities 15,932,025
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,489,741
Total liabilities and
shareholders' equity $17,431,343
122,948
Less: tax-equivalent adjustment (1,660)
Net interest income $121,288
Interest-rate spread 3.04%
Net interest margin 3.06%
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
Nine Months Ended September 30, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,796,868 $501,440 5.65%
Securities 3,836,811 133,373 4.61 (c)
Loans held for sale 226,468 9,382 5.52
Short-term investments 20,028 390 2.57
Total interest-earning assets 15,880,175 644,585 5.39
Noninterest-earning assets 1,467,085
Total assets $17,347,260
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,425,093 - -
Savings, NOW and money market
deposit accounts 5,678,099 47,161 1.11
Time deposits 4,064,228 84,144 2.77
Total deposits 11,167,420 131,305 1.57
Federal Home Loan Bank advances 2,247,887 55,881 3.28
Repurchase agreements and other
short-term debt 1,542,111 31,274 2.67
Other long-term debt 676,426 32,035 6.31
Total borrowings 4,466,424 119,190 3.53
Total interest-bearing
liabilities 15,633,844 250,495 2.13
Noninterest-bearing liabilities 102,981
Total liabilities 15,736,825
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,600,858
Total liabilities and
shareholders' equity $17,347,260
394,090
Less: tax-equivalent adjustment (6,411)
Net interest income $387,679
Interest-rate spread 3.26%
Net interest margin 3.30%
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
Nine Months Ended September 30, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $10,407,028 $393,131 5.01%
Securities 4,424,813 138,533 4.18 (c)
Loans held for sale 127,846 4,964 5.18
Short-term investments 32,290 256 1.04
Total interest-earning assets 14,991,977 536,884 4.76
Noninterest-earning assets 1,174,680
Total assets $16,166,657
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,207,649 - -
Savings, NOW and money market
deposit accounts 5,166,808 33,143 0.86
Time deposits 3,071,795 54,470 2.37
Total deposits 9,446,252 87,613 1.24
Federal Home Loan Bank advances 2,802,588 62,282 2.92
Repurchase agreements and other
short-term debt 1,853,465 16,238 1.15
Other long-term debt 633,343 26,712 5.62
Total borrowings 5,289,396 105,232 2.62
Total interest-bearing
liabilities 14,735,648 192,845 1.74
Noninterest-bearing liabilities 88,132
Total liabilities 14,823,780
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,333,300
Total liabilities and
shareholders' equity $16,166,657
344,039
Less: tax-equivalent adjustment (3,478)
Net interest income $340,561
Interest-rate spread 3.02%
Net interest margin 3.05%
See Selected Financial Highlights for footnotes.
At or for the Three Months Ended
(Unaudited) Sept. 30, June 30, March 31,
(Dollars in thousands) 2005 2005 2005
Asset Quality
Nonperforming loans:
Commercial:
Commercial $27,544 $19,073 $17,112
Equipment financing 3,209 3,466 3,800
Total commercial 30,753 22,539 20,912
Commercial real estate 19,650 11,654 15,609
Residential 6,436 6,690 7,528
Consumer 1,699 1,019 1,586
Total nonperforming loans 58,538 41,902 45,635
Loans held for sale 181 - 492
Other real estate owned and
repossessed assets:
Commercial 1,408 2,217 2,472
Residential 218 112 446
Consumer 10 10 85
Total other real estate owned and
repossessed assets 1,636 2,339 3,003
Total nonperforming assets $60,355 $44,241 $49,130
Allowance for Loan Losses
Beginning balance $154,822 $152,519 $150,112
Allowance for purchased loans - - -
Provision 2,000 2,000 3,500
Charge-offs:
Commercial 2,204 1,432 2,155
Residential 378 178 167
Consumer 137 201 142
Total charge-offs 2,719 1,811 2,464
Recoveries (949) (2,114) (1,371)
Net loan (recoveries) charge-offs 1,770 (303) 1,093
Ending balance $155,052 $154,822 $152,519
Asset Quality Ratios:
Allowance for loan losses/total loans 1.27% 1.31% 1.30%
Net charge-offs (recoveries)/average
loans (annualized) 0.06 (0.01) 0.04
Nonperforming loans/total loans 0.48 0.35 0.39
Nonperforming assets/total assets 0.34 0.25 0.28
Allowance for loan losses/
nonperforming loans 264.87 369.49 334.21
At or for the Three Months Ended
(Unaudited) Dec. 31, Sept. 30,
(Dollars in thousands) 2004 2004
Asset Quality
Nonperforming loans:
Commercial:
Commercial $14,624 $12,407
Equipment financing 3,383 4,501
Total commercial 18,007 16,908
Commercial real estate 8,431 11,157
Residential 7,796 7,695
Consumer 1,894 1,204
Total nonperforming loans 36,128 36,964
Loans held for sale - -
Other real estate owned and
repossessed assets:
Commercial 2,824 2,482
Residential 100 527
Consumer 114 20
Total other real estate owned and
repossessed assets 3,038 3,029
Total nonperforming assets $39,166 $39,993
Allowance for Loan Losses
Beginning balance $148,179 $146,511
Allowance for purchased loans 617 -
Provision 4,000 4,000
Charge-offs:
Commercial 3,432 3,556
Residential 367 92
Consumer 147 195
Total charge-offs 3,946 3,843
Recoveries (1,262) (1,511)
Net loan (recoveries) charge-offs 2,684 2,332
Ending balance $150,112 $148,179
Asset Quality Ratios:
Allowance for loan losses/total loans 1.28% 1.28%
Net charge-offs (recoveries)/
average loans (annualized) 0.09 0.08
Nonperforming loans/total loans 0.31 0.32
Nonperforming assets/total assets 0.23 0.22
Allowance for loan losses/
nonperforming loans 415.50 400.87
SOURCE Webster Financial Corporation
-0- 10/19/2005
/CONTACT: Media Contact
Clark Finley 203-578-2287
cfinley@websterbank.com
Investor Contact
Terry Mangan 203-578-2318
tmangan@websterbank.com /
/Photo: http://www.newscom.com/cgi-bin/prnh/20050421/NYTH039LOGO /
/Web site: http://www.websteronline.com
http://www.wbst.com /
(WBS)
CO: Webster Financial Corporation
ST: Connecticut
IN: FIN
SU: ERN CCA
JC
-- NYW048 --
7585 10/19/2005 07:30 EDT http://www.prnewswire.com