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WATERBURY, Conn., Jan. 26 /PRNewswire-FirstCall/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced net income of $45.5 million in the fourth quarter compared to $16.3
million a year ago, which reflected a nonrecurring charge in conjunction with
a balance sheet de-leveraging program. Net income per diluted share was $.84
compared to $.30 a year ago. For the full year, net income was $185.9 million
compared to $153.8 million in 2004. Net income per share was $3.43 for 2005
and $3.00 in the prior year.
Cash net income, which adds stock-based compensation and intangible
amortization expenses back to net income, was $50.1 million compared to $20.7
million in the year-ago quarter. Cash net income per share was $.93 in the
fourth quarter compared to $.38 a year ago. For the full year, cash net income
was $204.6 million compared to $170.2 million a year ago. Cash net income per
share was $3.77 and $3.32 in the respective years.
Results in 2004 reflect the impact of Webster's balance sheet
de-leveraging program including $32.4 million of after-tax costs. Those costs
reduced earnings per share by $.60 in the fourth quarter and by $.63 for the
full year. Results in 2005 reflect one-time expenses equivalent to $.02 per
share in the fourth quarter and $.10 for the full year incurred in support of
Webster's now-completed core infrastructure conversion project.
"We committed ourselves in 2005 to a set of core operating principles
designed to increase tangible capital and reduce our exposure to rising
interest rates while maintaining our focus on growing loans and deposits,"
stated Webster Chairman and Chief Executive Officer James C. Smith. "Progress
in each of these areas has strengthened our balance sheet and contributed to
higher quality earnings. In addition, completion of our core infrastructure
conversion project means that Webster now has the technology platform in place
to support our vision to be the leading regional financial services provider."
Included in net income are gains on the sale of securities. In the fourth
quarter, these gains represented $.01 per share compared to $.02 a year ago
exclusive of losses on securities under the de-leveraging transaction. For the
full year 2005, securities gains were $.04 per share compared to $.25 a year
ago apart from the de-leveraging transaction. The reduced level of securities
gains in 2005 is consistent with Webster's emphasis on delivering high quality
earnings.
Revenues
Total revenues (net interest income plus total noninterest income) were
$187.9 million in the fourth quarter compared to $180.6 million a year ago
adjusted for the de-leveraging transaction, an increase of 4 percent.
Adjusting both periods to exclude securities gains, total revenues grew by 4
percent as well. On this same basis, total revenues for all of 2005 were
$734.6 million and increased by 10 percent from the prior year when also
excluding Duff & Phelps, which was sold in the first quarter of 2004.
Net interest income totaled $129.7 million in the fourth quarter compared
to $127.6 million in the year-ago period, an increase of 2 percent. This
increase primarily reflects growth in earning assets over the past year, led
by growth in commercial loans in particular, partially offset by the effects
of a flatter yield curve and narrowing margins. Net interest income totaled
$517.3 million in the full year 2005 and grew by 11 percent from 2004 as a
result of growth in earning assets and margin benefit from the de-leveraging
transaction.
Webster's net interest margin (annualized tax-equivalent net interest
income as a percentage of average earning assets) was 3.22 percent in the
fourth quarter compared to 3.25 percent a year ago and 3.26 percent in the
third quarter. The decline from each period reflects the recent interest rate
environment, which has resulted in asset yields not rising at the same pace as
the cost of liabilities. For the full year 2005, however, the net interest
margin improved to 3.29 percent compared to 3.11 percent the prior year, with
the increase reflecting the benefit of Webster's de-leveraging in the fourth
quarter of 2004.
Total noninterest income was $58.2 million in the fourth quarter compared
to $53.0 million a year ago adjusted for the de-leveraging transaction.
Excluding securities gains of $1.0 million and $3.2 million of revenue
particular to the quarter, noninterest income increased 9 percent from a year
ago and totaled $54.0 million. Deposit service fees totaled $22.9 million and
increased 11 percent from a year ago reflecting growth in customer
transactions. Wealth management fees totaled $6.2 million and increased 19
percent reflecting strength in trust fees and investment product sales. Loan
and loan servicing fees totaled $9.3 million and increased 20 percent. Other
income totaled $3.5 million compared to $2.7 million a year ago.
The provision for loan losses totaled $2.0 million in the fourth quarter
and exceeded net loan charge-offs by $0.6 million. The provision was $4.0
million a year ago which exceeded net loan charge-offs by $1.3 million. For
the full year, the provision totaled $9.5 million and exceeded net loan
charge-offs by $5.5 million compared to the full year 2004 provision of $18.0
million which exceeded net loan charge-offs by $7.7 million. The annualized
net loan charge-off ratio was 0.05 percent of average loans in the fourth
quarter compared to 0.09 percent a year ago and 0.03 percent for all of 2005
compared to 0.10 percent in 2004.
Expenses
Total noninterest expenses of $119.4 million in the fourth quarter of 2005
reflected $4.3 million of expenses that were particular to the quarter,
including $1.3 million of non-recurring charges under Webster's core
infrastructure conversion project. This compares to total noninterest expenses
of $154.0 million a year ago, which included $45.8 million of de-leveraging
costs. Further adjusting each period for acquisitions and investments in de
novo branch expansion, total noninterest expenses were $108.8 million in the
fourth quarter and $102.8 million a year ago. The increase from a year ago
reflects investments in customer contact personnel, other employee-related
costs and investments in technology to support Webster's new core systems.
Balance Sheet Trends
Total assets were $17.8 billion at December 31, 2005 and increased by 5
percent from a year ago. Total loans were $12.3 billion and also increased by
5 percent from a year ago. Deposits were $11.6 billion and increased by $1.1
billion, or 10 percent, from a year ago aided by our de novo branching program
and the acquisition of HSA Bank in March 2005. The ratio of loans to deposits
improved to 106 percent at December 31, 2005 compared to 111 percent a year
ago.
"We opened eight new retail banking branches in 2005 across our southern
New England franchise," stated Webster President and Chief Operating Officer
William T. Bromage. "These eight offices contributed to the $273 million of
new deposits during the year under our de novo branch expansion program that
now has 19 branches opened since 2002 with a total of $572 million in
deposits."
At the end of the fourth quarter, commercial loans were $4.7 billion,
including commercial and industrial loans at $2.9 billion, up 11 percent from
a year ago, and commercial real estate loans at $1.8 billion, up 5 percent.
Consumer loans, primarily home equity loans and lines, increased 5 percent to
$2.8 billion compared to $2.6 billion a year ago. Commercial, commercial real
estate and consumer loans comprised 61 percent of total loans at December 31,
2005 compared to 59 percent a year ago.
Demand and NOW deposits have grown by 10 percent and 19 percent,
respectively, compared to a year ago while certificates of deposit balances
have grown by 26 percent as consumer preferences have shifted to this product
offering. Wholesale borrowings as a percent of total assets declined to 25
percent at December 31, 2005 compared to 28 percent a year ago as total
deposit growth exceeded loan growth by almost $500 million over the past year.
"Deposits grew at twice the level of loans over the past year, which
allowed us to reduce higher-cost borrowings by over $300 million," stated
Webster Chief Financial Officer William J. Healy. "As a result of our balance
sheet management, the ratios of loans to deposits and borrowings to total
assets, as well as our tangible equity ratio, improved significantly compared
to a year ago."
Book value per common share of $30.70 at December 31, 2005 increased from
$28.79 a year ago. Tangible book value per share of $18.03 at December 31,
2005 increased from $16.30 last year. The ratio of tangible equity to tangible
assets increased to 5.54 percent at December 31, 2005 compared to 5.21 percent
a year ago. Return on average tangible equity was 18.8 percent in the fourth
quarter compared to 22.4 percent a year ago apart from de-leveraging costs
while the cash return on average tangible equity was 20.7 percent and 24.4
percent in the respective periods.
Asset Quality
Nonperforming assets increased during the quarter and totaled $73.0
million, or 0.41 percent of total assets, at December 31, 2005 compared to
$60.4 million, or 0.34 percent, at September 30 and $39.2 million, or 0.23
percent, a year ago.
The allowance for loan losses was $155.6 million, or 1.27 percent of total
loans, at December 31, 2005 compared to $150.1 million, or 1.28 percent, a
year ago and $155.1 million, or 1.27 percent, at September 30. The ratio of
the allowance to nonperforming loans at December 31, 2005 was 232 percent
compared to 416 percent a year ago and 265 percent at September 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 157 banking offices, 304 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 fourth quarter earnings
announcement will be held today, Thursday, January 26, 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.
WEBSTER FINANCIAL CORP.
Selected Financial Highlights (unaudited)
At or for the Three At or for the Year
Months Ended December 31, Ended December 31,
(In thousands, except per 2005 2004 2005 2004
share data)
Net income and performance
ratios (annualized):
Net income $45,500 $16,306 $185,855 $153,833
Net income per diluted
common share 0.84 0.30 3.43 3.00
Return on average
shareholders' equity 11.04 % 4.28 % 11.52 % 11.14 %
Return on average tangible
equity 18.81 7.50 19.95 18.03
Return on average assets 1.02 0.38 1.06 0.94
Noninterest income as a
percentage of total
revenue 30.99 27.67 29.92 31.94
Efficiency ratio (a,d) 63.53 87.33 61.71 65.00
Net income and performance
ratios before deleveraging charges
(annualized):
Net income $45,500 $16,306 $185,855 $153,833
Debt prepayment penalties,
net of tax -- 29,745 -- 29,745
Loss on sale of
securities, net of tax -- 2,702 -- 2,702
Net income before
deleveraging charges 45,500 48,753 185,855 186,280
Net income per diluted
common share 0.84 0.90 3.43 3.63
Return on average
shareholders' equity 11.04 % 12.81 % 11.52 % 13.49 %
Return on average tangible
equity 18.81 22.43 19.95 21.84
Return on average assets 1.02 1.13 1.06 1.13
Noninterest income as a
percentage of total
revenue 30.99 29.33 29.92 32.35
Efficiency Ratio (a) 63.53 59.97 61.71 58.00
Cash income and
performance ratios
(annualized) (b):
Net income $45,500 $16,306 $185,855 $153,833
Stock-based compensation,
net of tax 1,352 1,248 5,845 4,490
Intangible amortization,
net of tax 3,250 3,149 12,943 11,924
Cash income 50,102 20,703 204,643 170,247
Cash income per diluted
common share 0.93 0.38 3.77 3.32
Cash return on average
shareholders' equity 12.15 % 5.44 % 12.69 % 12.33 %
Cash return on average
tangible equity 20.72 9.52 21.97 19.96
Cash return on average
assets 1.12 0.48 1.17 1.04
Cash income and
performance ratios before
deleveraging charges
(annualized) (b):
Net income before
deleveraging charges $45,500 $48,753 $185,855 $186,280
Stock-based compensation,
net of tax 1,352 1,248 5,845 4,490
Intangible amortization,
net of tax 3,250 3,149 12,943 11,924
Cash income 50,102 53,150 204,643 202,694
Cash income per diluted
common share 0.93 0.98 3.77 3.95
Cash return on average
shareholders' equity 12.15 % 13.97 % 12.69 % 14.68 %
Cash return on average
tangible equity 20.72 24.45 21.97 23.76
Cash return on average
assets 1.12 1.23 1.17 1.23
Asset quality:
Allowance for loan losses $155,632 $150,112 $155,632 $150,112
Nonperforming assets 73,014 39,166 73,014 39,166
Allowance for loan losses
/ total loans 1.27 % 1.28 % 1.27 % 1.28 %
Net charge-offs/ average
loans (annualized) 0.05 0.09 0.03 0.10
Nonperforming loans /
total loans 0.55 0.31 0.55 0.31
Nonperforming assets /
total assets 0.41 0.23 0.41 0.23
Allowance for loan losses
/ nonperforming loans 231.50 415.50 231.50 415.50
Other ratios (annualized):
Tangible capital ratio 5.54 % 5.21 % 5.54 % 5.21 %
Shareholders' equity /
total assets 9.24 9.07 9.24 9.07
Interest-rate spread 3.18 3.22 3.25 3.09
Net interest margin 3.22 3.25 3.29 3.11
Share related:
Book value per common
share $30.70 $28.79 $30.70 $28.79
Tangible book value per
common share 18.03 16.30 18.03 16.30
Common stock closing price 46.90 50.64 46.90 50.64
Dividends declared per
common share 0.25 0.23 0.98 0.90
Common shares issued and
outstanding 53,662 53,628 53,662 53,628
Basic shares (average) 53,473 53,187 53,577 50,506
Diluted shares (average) 54,129 54,045 54,236 51,352
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, the efficiency ratio
would be 62.84% and 87.16% for the three months ending December 31,
2005 and 2004 and 60.61% and 64.93% for twelve months ended December
31, 2005 and 2004, respectively.
Consolidated Statements of Condition (unaudited)
December 31, September 30, December 31,
(In thousands) 2005 2005 2004
Assets:
Cash and due from depository
institutions $293,706 $269,859 $248,825
Short-term investments 36,302 9,224 17,629
Securities:
Trading, at fair value 2,257 1,901 --
Available for sale, at fair
value 2,555,419 2,668,226 2,494,406
Held-to-maturity securities 1,142,909 1,161,507 1,229,613
Total securities 3,700,585 3,831,634 3,724,019
Loans held for sale 267,919 247,365 147,211
Loans:
Residential mortgages 4,828,564 4,812,298 4,775,344
Commercial 2,876,528 2,978,537 2,584,738
Commercial real estate 1,808,494 1,666,384 1,715,047
Consumer 2,771,700 2,740,019 2,637,646
Total loans 12,285,286 12,197,238 11,712,775
Allowance for loan losses (155,632) (155,052) (150,112)
Loans, net 12,129,654 12,042,186 11,562,663
Accrued interest receivable 85,779 73,253 63,406
Premises and equipment, net 182,856 179,463 149,069
Goodwill and intangible assets 698,570 703,740 694,165
Cash surrender value of life
insurance 237,822 235,467 228,120
Prepaid expenses and other assets 191,198 214,865 185,490
Total Assets $17,824,391 $17,807,056 $17,020,597
Liabilities and Shareholders'
Equity:
Deposits:
Demand deposits $1,546,096 $1,431,642 $1,409,682
NOW accounts 1,622,403 1,600,481 1,368,213
Money market deposit accounts 1,789,781 1,971,075 1,996,918
Savings accounts 2,015,045 2,032,927 2,253,073
Certificates of deposit 4,249,874 4,118,765 3,376,718
Total retail deposits 11,223,199 11,154,890 10,404,604
Treasury deposits 407,946 507,302 166,684
Total deposits 11,631,145 11,662,192 10,571,288
Federal Home Loan Bank advances 2,215,722 2,064,963 2,590,335
Securities sold under agreements
to repurchase and other
short-term debt 1,525,906 1,633,906 1,438,483
Other long-term debt 648,682 673,999 670,015
Accrued expenses and other
liabilities 146,133 126,537 196,925
Total liabilities 16,167,588 16,161,597 15,467,046
Preferred stock of subsidiary
corporation 9,577 9,577 9,577
Shareholders' equity 1,647,226 1,635,882 1,543,974
Total Liabilities and
Shareholders' Equity $17,824,391 $17,807,056 $17,020,597
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(In thousands, except per share data)
2005 2004 2005 2004
Interest income:
Loans $187,607 $154,177 $689,041 $547,308
Securities and short-term
investments 42,503 42,807 169,861 178,118
Loans held for sale 3,563 1,718 12,945 6,682
Total interest income 233,673 198,702 871,847 732,108
Interest expense:
Deposits 57,132 32,993 188,437 120,606
Borrowings 46,879 38,109 166,069 143,341
Total interest expense 104,011 71,102 354,506 263,947
Net interest income 129,662 127,600 517,341 468,161
Provision for loan losses 2,000 4,000 9,500 18,000
Net interest income after
provision for loan losses 127,662 123,600 507,841 450,161
Noninterest income:
Deposit service fees 22,909 20,712 85,967 77,743
Insurance revenue 10,678 10,348 44,015 43,506
Loan and loan servicing fees 9,290 7,727 33,232 28,574
Wealth and investment services 6,174 5,198 23,151 22,207
Gain on sale of loans and loan
servicing, net 2,322 2,492 11,573 13,305
Increase in cash surrender value
of life insurance 2,360 2,283 9,241 8,835
Financial advisory services -- -- -- 3,808
Other 3,470 2,692 10,073 7,416
57,203 51,452 217,252 205,394
Gain (loss) on sale of
securities, net 1,026 (2,646) 3,633 14,313
Total noninterest income 58,229 48,806 220,885 219,707
Noninterest expenses:
Compensation and benefits 64,905 57,128 241,469 219,320
Occupancy 11,141 9,909 43,292 35,820
Furniture and equipment 14,810 10,889 50,228 37,626
Intangible amortization 5,001 4,844 19,913 18,345
Marketing 3,981 2,533 14,267 13,380
Professional services 3,594 5,523 14,962 15,654
Conversion and infrastructure costs 1,281 300 8,138 500
Debt prepayment penalties - 45,761 - 45,761
Other 14,646 17,161 63,301 60,731
Total noninterest expenses 119,359 154,048 455,570 447,137
Income before income taxes 66,532 18,358 273,156 222,731
Income taxes 21,032 2,052 87,301 68,898
Net income $45,500 $16,306 $185,855 $153,833
Diluted shares (average) 54,129 54,045 54,236 51,352
Net income per common share:
Basic $0.85 $0.31 $3.47 $3.05
Diluted 0.84 0.30 3.43 3.00
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31
(In thousands, except 2005 2005 2005 2005 2004
per share data)
Interest income:
Loans $187,607 $175,680 $166,967 $158,787 $154,177
Securities and short-
term investments 42,503 43,775 42,684 40,899 42,807
Loans held for sale 3,563 3,686 2,964 2,732 1,718
Total interest income 233,673 223,141 212,615 202,418 198,702
Interest expense:
Deposits 57,132 51,338 44,099 35,868 32,993
Borrowings 46,879 42,191 38,681 38,318 38,109
Total interest expense 104,011 93,529 82,780 74,186 71,102
Net interest income 129,662 129,612 129,835 128,232 127,600
Provision for loan losses 2,000 2,000 2,000 3,500 4,000
Net interest income
after provision for
loan losses 127,662 127,612 127,835 124,732 123,600
Noninterest income:
Deposit service fees 22,909 22,182 21,747 19,129 20,712
Insurance revenue 10,678 10,973 10,562 11,802 10,348
Loan and loan servicing
fees 9,290 7,739 7,274 8,929 7,727
Wealth and investment
services 6,174 5,554 6,028 5,395 5,198
Gain on sale of loans
and loan servicing, net 2,322 3,703 3,012 2,536 2,492
Increase in cash
surrender value of life
insurance 2,360 2,341 2,302 2,238 2,283
Other 3,470 2,347 2,013 2,243 2,692
57,203 54,839 52,938 52,272 51,452
Gain (loss) on sale of
securities, net 1,026 1,141 710 756 (2,646)
Total noninterest
income 58,229 55,980 53,648 53,028 48,806
Noninterest expenses:
Compensation and
benefits 64,905 60,808 57,854 57,902 57,128
Occupancy 11,141 10,482 10,810 10,859 9,909
Furniture and equipment 14,810 13,009 11,611 10,798 10,889
Intangible amortization 5,001 5,001 5,009 4,902 4,844
Marketing 3,981 3,339 3,664 3,283 2,533
Professional services 3,594 3,626 3,972 3,770 5,523
Conversion and
infrastructure costs 1,281 2,217 3,506 1,134 300
Debt prepayment
penalties -- -- -- -- 45,761
Other 14,646 16,450 17,079 15,126 17,161
Total noninterest
expenses 119,359 114,932 113,505 107,774 154,048
Income before income
taxes 66,532 68,660 67,978 69,986 18,358
Income taxes 21,032 22,058 21,720 22,491 2,052
Net income $45,500 $46,602 $46,258 $47,495 $16,306
Diluted shares (average) 54,129 54,310 54,278 54,217 54,045
Net income per common share:
Basic $0.85 $0.87 $0.86 $0.89 $0.31
Diluted 0.84 0.86 0.85 0.88 0.30
See Selected Financial Highlights for footnotes.
Retail and Wholesale Interest-Rate Spreads (unaudited)
Three Months
Ended, December September June March December
2005 2005 2005 2005 2004
Interest-rate spread
Yield on interest-
earning assets 5.73% 5.55% 5.40% 5.22% 5.02%
Cost of interest-
bearing
liabilities 2.55 2.33 2.11 1.94 1.80
Interest-rate
spread 3.18% 3.22% 3.29% 3.28% 3.22%
Net interest
margin 3.22 3.26 3.32 3.32 3.25
Retail interest-rate spread
Yield on loans and
loans held
for sale 6.02% 5.83% 5.66% 5.44% 5.25%
Cost of deposits 1.94 1.76 1.57 1.37 1.25
Spread 4.08% 4.07% 4.09% 4.07% 4.00%
Wholesale interest-rate spread
Yield on securities
and short-term
investments 4.75% 4.67% 4.62% 4.52% 4.37%
Cost of
borrowings 4.19 3.84 3.54 3.23 2.91
Spread 0.56% 0.83% 1.08% 1.29% 1.46%
Consolidated Average Statements of Condition (unaudited)
Three Months Ended December 31, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $12,328,141 $187,608 6.03 %
Securities 3,715,720 44,733 4.76 (c)
Loans held for sale 251,169 3,563 5.67
Short-term investments 19,846 147 2.90
Total interest-earning assets 16,314,876 236,051 5.73
Noninterest-earning assets 1,537,062
Total assets $17,851,938
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,522,306 $ -- -- %
Savings, NOW and money market
deposit accounts 5,502,733 19,065 1.37
Time deposits 4,665,580 38,067 3.24
Total deposits 11,690,619 57,132 1.94
Federal Home Loan Bank advances 2,280,934 22,742 3.90
Repurchase agreements and other
short-term debt 1,454,730 12,568 3.38
Other long-term debt 665,062 11,569 6.96
Total borrowings 4,400,726 46,879 4.19
Total interest-bearing
liabilities 16,091,345 104,011 2.55
Noninterest-bearing liabilities 101,994
Total liabilities 16,193,339
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,649,022
Total liabilities and
shareholders' equity $17,851,938
132,040
Less: tax-equivalent adjustment (2,378)
Net interest income $129,662
Interest-rate spread 3.18 %
Net interest margin 3.22 %
Three Months Ended December 31, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,649,909 $154,177 5.25 %
Securities 4,053,134 44,495 4.39 (c)
Loans held for sale 136,197 1,718 5.05
Short-term investments 25,772 134 2.03
Total interest-earning assets 15,865,012 200,524 5.02
Noninterest-earning assets 1,411,162
Total assets $17,276,174
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,399,592 $ -- -- %
Savings, NOW and money market
deposit accounts 5,643,515 12,340 0.87
Time deposits 3,434,389 20,653 2.39
Total deposits 10,477,496 32,993 1.25
Federal Home Loan Bank advances 2,690,001 19,810 2.88
Repurchase agreements and other
short-term debt 1,778,435 8,455 1.86
Other long-term debt 686,226 9,844 5.74
Total borrowings 5,154,662 38,109 2.91
Total interest-bearing
liabilities 15,632,158 71,102 1.80
Noninterest-bearing liabilities 112,063
Total liabilities 15,744,221
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,522,376
Total liabilities and
shareholders' equity $17,276,174
129,422
Less: tax-equivalent adjustment (1,822)
Net interest income $127,600
Interest-rate spread 3.22 %
Net interest margin 3.25 %
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
Twelve Months Ended December 31, 2005
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $11,930,776 $689,048 5.78 %
Securities 3,806,289 178,106 4.68 (c)
Loans held for sale 232,695 12,945 5.56
Short-term investments 19,982 537 2.69
Total interest-earning assets 15,989,742 880,636 5.50
Noninterest-earning assets 1,484,723
Total assets $17,474,465
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,449,596 $ -- -- %
Savings, NOW and money market
deposit accounts 5,633,897 66,226 1.18
Time deposits 4,215,801 122,211 2.90
Total deposits 11,299,294 188,437 1.67
Federal Home Loan Bank advances 2,256,216 78,623 3.48
Repurchase agreements and other
short-term debt 1,520,086 43,842 2.88
Other long-term debt 673,562 43,604 6.47
Total borrowings 4,449,864 166,069 3.73
Total interest-bearing
liabilities 15,749,158 354,506 2.25
Noninterest-bearing liabilities 102,732
Total liabilities 15,851,890
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,612,998
Total liabilities and
shareholders' equity $17,474,465
526,130
Less: tax-equivalent adjustment (8,789)
Net interest income $517,341
Interest-rate spread 3.25 %
Net interest margin 3.29 %
Twelve Months Ended December 31, 2004
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $10,719,446 $547,308 5.11 %
Securities 4,331,385 183,028 4.23 (c)
Loans held for sale 129,945 6,682 5.14
Short-term investments 30,651 390 1.27
Total interest-earning assets 15,211,427 737,408 4.85
Noninterest-earning assets 1,234,124
Total assets $16,445,551
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,255,897 $ -- -- %
Savings, NOW and money market
deposit accounts 5,286,637 47,683 0.90
Time deposits 3,162,939 72,923 2.31
Total deposits 9,705,473 120,606 1.24
Federal Home Loan Bank advances 2,774,287 82,092 2.96
Repurchase agreements and other
short-term debt 1,834,605 24,693 1.35
Other long-term debt 646,636 36,556 5.65
Total borrowings 5,255,528 143,341 2.73
Total interest-bearing
liabilities 14,961,001 263,947 1.76
Noninterest-bearing liabilities 94,145
Total liabilities 15,055,146
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,380,828
Total liabilities and
shareholders' equity $16,445,551
473,461
Less: tax-equivalent adjustment (5,300)
Net interest income $468,161
Interest-rate spread 3.09 %
Net interest margin 3.11 %
See Selected Financial Highlights for footnotes.
At or for the Three Months Ended
(Unaudited) Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(Dollars in 2005 2005 2005 2005 2004
thousands)
Asset Quality
Nonperforming loans:
Commercial:
Commercial $43,309 $27,544 $19,073 $17,112 $14,624
Equipment
financing 3,065 3,209 3,466 3,800 3,383
Total
commercial 46,374 30,753 22,539 20,912 18,007
Commercial real
estate 12,047 19,650 11,654 15,609 8,431
Residential 6,979 6,436 6,690 7,528 7,796
Consumer 1,829 1,699 1,019 1,586 1,894
Total nonperforming
loans 67,229 58,538 41,902 45,635 36,128
Loans held for sale - 181 - 492 -
Other real estate
owned and
repossessed assets:
Commercial 5,126 1,408 2,217 2,472 2,824
Residential 232 218 112 446 100
Consumer 427 10 10 85 114
Total other real
estate owned and
repossessed assets 5,785 1,636 2,339 3,003 3,038
Total nonperforming
assets $73,014 $60,355 $44,241 $49,130 $39,166
Allowance for Loan
Losses
Beginning balance $155,052 $154,822 $152,519 $150,112 $148,179
Allowance for
purchased loans - - - - 617
Provision 2,000 2,000 2,000 3,500 4,000
Charge-offs:
Commercial 3,272 2,204 1,432 2,155 3,432
Residential 110 378 178 167 367
Consumer 153 137 201 142 147
Total
charge-offs 3,535 2,719 1,811 2,464 3,946
Recoveries (2,115) (949) (2,114) (1,371) (1,262)
Net loan
charge-offs
(recoveries) 1,420 1,770 (303) 1,093 2,684
Ending balance $155,632 $155,052 $154,822 $152,519 $150,112
Asset Quality
Ratios:
Allowance for loan
losses / total
loans 1.27 % 1.27 % 1.31 % 1.30 % 1.28 %
Net charge-offs
(recoveries)/
average loans
(annualized) 0.05 0.06 (0.01) 0.04 0.09
Nonperforming loans
/ total loans 0.55 0.48 0.35 0.39 0.31
Nonperforming assets
/ total assets 0.41 0.34 0.25 0.28 0.23
Allowance for loan
losses /
nonperforming loans 231.50 264.87 369.49 334.21 415.50
Media Contact Investor Contact
Clark Finley 203-578-2287 Terry Mangan 203-578-2318
cfinley@websterbank.com tmangan@websterbank.com
SOURCE Webster Financial Corporation
-0- 01/26/2006
/CONTACT: Media Contact
Clark Finley 203-578-2287
cfinley@websterbank.com
or
Investor Contact
Terry Mangan 203-578-2318
tmangan@websterbank.com /
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/Web site: http://www.websteronline.com
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(WBS)
CO: Webster Financial Corporation
ST: Connecticut
IN: FIN
SU: CCA ERN
RM
-- NYTH063 --
4445 01/26/2006 07:30 EST http://www.prnewswire.com