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WATERBURY, Conn., April 21, 2009 /PRNewswire-FirstCall via COMTEX/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a net operating loss of $11.3 million before preferred dividends in the quarter ended March 31, 2009 and record deposit growth for the quarter.
Key points for the quarter include:
Deposits grew a record $810 million, improving the loan-to-deposit
ratio to 95 percent.
The net operating loss of $11.3 million before preferred dividends is
narrowed from recent quarters.
Webster recorded $66.0 million for loan losses. Net loan charge-offs
were $30.1 million. The allowance for credit losses increased to
2.33% of total loans.
Webster's strong tangible capital position grew to 7.75 percent at
March 31, 2009 compared to 7.70 percent at December 31, 2008 and 5.77
percent a year ago. Webster exceeds all requirements for well
capitalized regulatory ratios by a significant margin.
Noninterest expenses declined by 6 percent from a year ago, apart from
increases in foreclosed property expense and FDIC deposit insurance
assessment.
Webster Chairman and Chief Executive Officer James C. Smith said, "While the underlying performance of our business is encouraging, our first quarter results reflect our cautious approach in the face of a weakening economy. As in the previous quarter, we made sizeable provisions for loan losses.
"Webster enjoyed record growth of $810 million in deposits across our business lines during the period as consumers and businesses increasingly value strong, local banks," Smith continued. "Meanwhile, we continue to lend actively in the market and extended $762 million in new credit to businesses and consumers during the quarter."
Webster also announced today that its Board of Directors, at its April 20, 2009 meeting, declared a regular quarterly cash dividend of $.01 per common share. The dividend is payable on May 18, 2009 to shareholders of record on May 4, 2009.
Net interest income
-- Net interest margin was 2.99 percent in the first quarter compared to
3.20 percent in the fourth quarter; the anticipated decline reflects the
full-quarter impact of Federal Reserve rate reductions totaling 175 bps
during the course of the fourth quarter as well as interest reversals in
the first quarter from higher levels of non performing assets.
-- Average interest-earning assets totaled $16.1 billion, up from $15.9
billion last quarter.
Provision for credit losses
-- $54 million of the provision for credit losses recorded in the quarter
was related to the Company's continuing portfolios and $12 million
was related to the discontinued liquidating portfolio.
-- Net charge-offs were $30.1 million in the quarter compared to $52.8
million for the quarter ended December 31, 2008.
Noninterest income
-- Deposit service fees declined by $2.1 million from last quarter,
primarily from seasonality in the first quarter.
-- Wealth and investment services revenues declined by $730,000 from the
last quarter, primarily due to a decline in the value of assets under
management due to prevailing market conditions.
-- Loan related fees declined by $665,000 from the last quarter, primarily
from lower origination levels in certain asset classes.
-- Net gain on sale of securities totaled $4.5 million, the result of a
$5.7 million gain on sale of $393 million of mortgage backed securities
during the quarter and losses of $1.2 million on sales of $5 million in
common stock.
-- Gain of $6.0 million in connection with the early extinguishment of
$22.5 million of subordinated notes and related swaps
Noninterest expenses
-- Noninterest expenses declined by $7.1 million from a year ago excluding
foreclosed property expenses and FDIC insurance assessment. The increase
in noninterest expenses from last quarter primarily represents
seasonality in compensation and benefits expense and higher amounts for
foreclosed property expense and FDIC deposit insurance assessment.
Income taxes
-- Due to the pre-tax loss, the effective tax rate for the first quarter
was not meaningful. The Company recorded a $0.6 million tax benefit in
the quarter on the $11.9 million pre-tax loss applicable to continuing
operations in the period.
Investment securities
-- Total investment securities were $3.7 billion at March 31, 2009 compared
to $3.8 billion at December 31, 2008. The market value of the held to
maturity portfolio improved to $ 50 million in unrealized gains, while
the market value on the available for sale portfolio was relatively
unchanged from December 31, 2008 with $110 million in unrealized losses.
Loans
-- Total loans were $12.1 billion at March 31, 2009 compared to $12.2
billion at December 31, 2008. In the first quarter, residential mortgage
loans and commercial real estate loans increased by $115.6 million and
$18.1 million, respectively, while commercial loans and consumer loans
declined by $171.8 million and $54.1 million, respectively.
-- In-market loan originations increased by $200 million from the fourth
quarter.
-- Out-of-market asset based loans declined by $92.9 million from year-end,
or more than half of the decline in commercial loans noted above.
-- The discontinued liquidating portfolio of indirect home equity and
national construction loans, included in the consumer and residential
loan amounts, declined by $22.3 million from year-end.
Asset quality
-- Total nonperforming loans were $316.2 million or 2.61 percent of total
loans at March 31, 2009 compared to $232.6 million or 1.91 percent at
December 31, 2008. The increase in nonperforming loans was primarily
attributed to increased non accruals in commercial loan categories of
$58 million, $14 million in residential loans and $13 million in
consumer loans.
-- Past due loans for the continuing portfolios declined to $112.8 million
at March 31, 2009 compared to $118.4 million at December 31, 2008. Past
due loans for the liquidating portfolio declined to $12.2 million at
March 31, 2009 compared to $20.1 million at December 31, 2008.
Deposits and borrowings
-- Total deposits were $12.7 billion at March 31, 2009 compared to $11.9
billion at December 31, 2008. Money market, savings, NOW accounts and
demand deposits increased $438.6 million, $214.9 million, $133.7 million
and $37.0 million, respectively, while certificates of deposits
decreased $38.6 million. Retail, HSA Bank and Government Finance
deposits grew by $256 million, $86 million and $393 million,
respectively.
-- Core deposits, which exclude certificates of deposits and brokered
deposits, represented 61.7 percent of total deposits at March 31, 2009
compared to 59.0 percent at December 31, 2008 and 60.7 percent a year
ago.
-- Total borrowings were $2.5 billion, a decline of $1.1 billion from $3.6
billion at December 31, 2008. FHLB advances declined from $1.34 billion
at December 31, 2008 to $671 million at March 31, 2009.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.3 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 492 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, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websteronline.com.
Conference Call
A conference call covering Webster's first quarter earnings announcement will be held today, Tuesday, April 21, at 9:00 a.m. EDT and may be heard through Webster's investor relations website at www.wbst.com, or in listen-only mode by calling 1-877-407-8289 or 201-689-8341 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 2008. 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. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying selected financial highlights table.
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
At or for the Three
Months Ended March 31,
(In thousands, except per share data) 2009 2008
Net income (loss) and performance
ratios (annualized):
Net income (loss) $(11,341) $24,365
Net income (loss) per diluted common
share (0.41) 0.47
Return on average shareholders'
equity (2.44) % 5.62 %
Return on average tangible equity (3.47) 9.95
Return on average assets (0.26) 0.57
Income (loss) from continuing
operations and performance ratios
(annualized):
Income (loss) from continuing
operations $(11,341) $26,489
Net income (loss) from continuing
operations per diluted common share (0.41) 0.51
Return on average shareholders'
equity (2.44)% 6.11 %
Return on average tangible equity (3.47) 10.82
Return on average assets (0.26) 0.62
Noninterest income as a percentage of
total revenue 31.41 27.71
Efficiency ratio (a) 67.59 65.21
Asset quality:
Allowance for credit losses $281,729 $189,808
Nonperforming assets 348,351 153,984
Allowance for credit losses / total
loans 2.33 % 1.51 %
Net charge-offs / average loans
(annualized) 0.99 0.75
Nonperforming loans / total loans 2.61 1.11
Nonperforming assets / total loans
plus OREO 2.87 1.22
Allowance for credit losses /
nonperforming loans 89.11 135.87
Other ratios (annualized):
Tangible capital ratio 7.75 % 5.77 %
Tangible common equity ratio 4.05 5.77
Total-risk based capital (d) 14.40 11.37
Shareholders' equity / total assets 10.75 9.96
Interest-rate spread 2.91 3.20
Net interest margin 2.99 3.27
Share related:
Book value per common share $23.45 $32.71
Tangible book value per common share 13.02 18.36
Common stock closing price 4.25 27.87
Dividends declared per common share 0.01 0.30
Common shares issued and outstanding 52,830 52,490
Basic shares (average) 52,102 52,001
Diluted shares (average) 52,102 52,297
Footnotes:
(a) Calculated using SNL's methodology - noninterest expense (excluding
foreclosed property expenses, intangible amortization, goodwill
impairments and other charges) as a percentage of net interest income
(FTE basis) plus noninterest income (excluding gain/loss on securities
and other charges).
(b) For purposes of the yield computation, unrealized gains (losses) on
securities available for sale are excluded from the average balance.
(c) NCLC is defined as National Construction Lending Center
(d) The ratios presented are projected for the 2009 reporting periods and
actual for the 2008 reporting periods.
WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheet (unaudited)
March 31, Dec. 31, March 31,
(In thousands) 2009 2008 2008
Assets:
Cash and due from depository
institutions $208,862 $259,208 $274,321
Short-term investments 19,942 22,154 4,042
Investment securities:
Trading, at fair value - 77 1,049
Available for sale, at fair
value 1,097,229 1,188,705 760,502
Held-to-maturity 2,429,887 2,522,511 2,091,918
Other securities 134,874 134,874 117,213
Total securities 3,661,990 3,846,167 2,970,682
Loans held for sale 48,876 24,524 8,223
Loans:
Residential mortgages 3,184,082 3,068,441 3,635,314
Commercial 3,415,051 3,586,807 3,571,954
Commercial real estate 2,250,295 2,232,174 2,196,110
Consumer 3,246,031 3,300,169 3,197,591
Total loans 12,095,459 12,187,591 12,600,969
Allowance for loan losses (270,929) (235,329) (180,308)
Loans, net 11,824,530 11,952,262 12,420,661
Accrued interest receivable 67,951 74,307 77,593
Premises and equipment, net 182,629 185,928 192,928
Goodwill and other intangible
assets, net 562,462 563,926 766,467
Cash surrender value of life
insurance 282,399 279,807 271,947
Assets held for disposition 5,571 5,571 6,912
Unsettled trades 750 105 27,568
Deferred tax assets, net 199,531 189,337 80,565
Prepaid expenses and other
Assets 191,241 180,241 141,653
Total Assets $17,256,734 $17,583,537 $17,243,562
Liabilities and Equity:
Deposits:
Demand deposits $1,530,334 $1,493,295 $1,475,258
NOW accounts 1,935,926 1,802,250 1,825,963
Money market deposit
accounts 1,794,943 1,356,361 1,704,655
Savings accounts 2,576,058 2,361,169 2,361,522
Certificates of deposit 4,638,977 4,677,615 4,564,887
Brokered deposits 218,520 194,200 211,007
Total deposits 12,694,758 11,884,890 12,143,292
Securities sold under agreements
to repurchase and
other short-term debt 1,146,852 1,570,971 1,642,320
Federal Home Loan Bank advances 671,294 1,335,996 869,079
Long-term debt 661,968 687,797 666,891
Liabilities held for disposition - - 806
Accrued expenses and other
liabilities 216,789 220,187 194,881
Total liabilities 15,391,661 15,699,841 15,517,269
Shareholders' equity 1,855,496 1,874,119 1,716,716
Noncontrolling interest 9,577 9,577 9,577
Total equity 1,865,073 1,883,696 1,726,293
Total Liabilities and Equity $17,256,734 $17,583,537 $17,243,562
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Operations (unaudited)
Three Months Ended
March 31,
(In thousands, except per share data) 2009 2008
Interest income:
Loans $140,767 $191,272
Investments 50,827 39,332
Loans held for sale 164 1,400
Total interest income 191,758 232,004
Interest expense:
Deposits 52,908 75,242
Borrowings 20,653 31,906
Total interest expense 73,561 107,148
Net interest income 118,197 124,856
Provision for credit losses 66,000 15,800
Net interest income after
provision for credit losses 52,197 109,056
Noninterest income:
Deposit service fees 27,959 28,433
Loan related fees 6,482 6,858
Wealth and investment services 5,750 6,956
Mortgage banking activities 606 740
Increase in cash surrender value of
life insurance 2,592 2,581
Net gain on sale of investment
securities 4,458 123
Other income 275 1,784
48,122 47,475
Gain on early extinguishment of
debt and swaps 5,993 -
Loss on write-down of investments
to fair value - (1,253)
Visa share redemption - 1,625
Total noninterest income 54,115 47,847
Noninterest expenses:
Compensation and benefits 56,469 63,443
Occupancy 14,295 13,682
Furniture and equipment 15,140 15,160
Marketing 3,106 3,643
Outside services 3,784 4,153
Intangible amortization 1,463 1,548
Foreclosed and repossessed property
expenses 1,179 280
REO and foreclosed writedowns 3,450 233
FDIC deposit insurance assessment 4,590 354
Other expenses 14,530 14,265
118,006 116,761
Severance and other costs 240 (650)
Total noninterest expenses 118,246 116,111
Income (loss) from continuing
operations before income taxes (11,934) 40,792
Income taxes (benefit) (593) 14,303
Income (loss) from continuing
operations (11,341) 26,489
Income (loss) from discontinued
operations, net of tax - (2,124)
Net income (loss) $(11,341) $24,365
Preferred stock dividends and
accretion of discount 10,215 -
Net income (loss) available to
common shareholders $(21,556) $24,365
Diluted shares (average) 52,102 52,297
Net income (loss) per common share:
Basic
Income (loss) from continuing
operations $(0.41) $0.51
Net income (loss) (0.41) 0.47
Diluted
Income (loss) from continuing
operations (0.41) 0.51
Net income (loss) (0.41) 0.47
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Operations (unaudited)
(In thousands, except Three Months Ended
per share data) March 31, Dec. 31, Sept. 30, June 30, March 31,
2009 2008 2008 2008 2008
Interest income:
Loans $140,767 $168,200 $175,363 $175,786 $191,272
Investments 50,827 40,398 39,210 38,115 39,332
Loans held for sale 164 51 54 92 1,400
Total interest
Income 191,758 208,649 214,627 213,993 232,004
Interest expense:
Deposits 52,908 57,154 57,731 60,055 75,242
Borrowings 20,653 25,427 27,715 28,252 31,906
Total interest
Expense 73,561 82,581 85,446 88,307 107,148
Net interest income 118,197 126,068 129,181 125,686 124,856
Provision for credit
losses 66,000 100,000 45,500 25,000 15,800
Net interest income
after provision for
credit losses 52,197 26,068 83,681 100,686 109,056
Noninterest income:
Deposit service fees 27,959 30,018 31,738 29,943 28,433
Loan related fees 6,482 7,147 7,171 7,891 6,858
Wealth and investment
services 5,750 6,480 7,070 7,634 6,956
Mortgage banking
activities 606 336 50 104 740
Increase in cash
surrender value of
life insurance 2,592 2,631 2,606 2,623 2,581
Net gain (loss) on
sale of investment
securities 4,458 (4,233) (50) 126 123
Other income 275 1,315 2,731 854 1,784
48,122 43,694 51,316 49,175 47,475
Gain on early
extinguishment of
debt and swaps 5,993 - - - -
Loss on write-down of
investments to fair
value - (129,593) (33,507) (54,924) (1,253)
Loss on sale of
FNMA/FHLMC preferred
stock - - (2,060) - -
VISA share redemption - - - - 1,625
Total noninterest
income 54,115 (85,899) 15,749 (5,749) 47,847
Noninterest expenses:
Compensation and
benefits 56,469 52,078 61,314 62,866 63,443
Occupancy 14,295 13,406 12,827 13,128 13,682
Furniture and
equipment 15,140 15,469 14,892 15,634 15,160
Marketing 3,106 2,895 2,478 4,940 3,643
Outside services 3,784 4,101 3,798 3,706 4,153
Intangible
amortization 1,463 1,463 1,464 1,464 1,548
Foreclosed and
repossessed property
expenses 1,179 1,799 1,496 1,068 280
REO and foreclosed
writedowns 3,450 1,615 1,968 484 233
FDIC deposit insurance
assessment 4,590 3,468 532 344 354
Other expenses 14,530 13,593 14,227 16,221 14,265
118,006 109,887 114,996 119,855 116,761
Severance and other
costs 240 5,905 1,535 9,368 (650)
Goodwill impairment - 188,866 1,013 8,500 -
Total noninterest
expenses 118,246 304,658 117,544 137,723 116,111
Income (loss) from
continuing operations
before income
taxes (11,934) (364,489) (18,114) (42,786) 40,792
Income taxes (benefit) (593) (63,980) (1,878) (14,285) 14,303
Income (loss) from
continuing
operations (11,341) (300,509) (16,236) (28,501) 26,489
Income (loss) from
discontinued
operations, net of
tax - 8 (518) (439) (2,124)
Net income
(loss) $(11,341) $(300,501) $(16,754) $(28,940) $24,365
Preferred stock
dividends and
accretion of
discount 10,215 7,093 4,994 - -
Net income (loss)
available to
common
shareholders $(21,556) $(307,594) $(21,748) $(28,940) $24,365
Diluted shares
(average) 52,102 52,031 52,032 52,017 52,297
Net income (loss) per
common share:
Basic
Income (loss) from
continuing
operations $(0.41) $(5.91) $(0.41) $(0.55) $0.51
Net income (loss) (0.41) (5.91) (0.42) (0.56) 0.47
Diluted
Income (loss) from
continuing
operations (0.41) (5.91) (0.41) (0.55) 0.51
Net income (loss) (0.41) (5.91) (0.42) (0.56) 0.47
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Interest-Rate Spreads (unaudited)
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2009 2008 2008 2008 2008
Interest-rate spread
Yield on interest-earning
assets 4.82 % 5.24 % 5.45 % 5.51 % 6.02 %
Cost of interest-bearing
liabilities 1.91 2.13 2.21 2.31 2.82
Interest-rate spread 2.91 % 3.11 % 3.24 % 3.20 % 3.20 %
Net interest margin 2.99 % 3.20 % 3.32 % 3.26 % 3.27 %
Consolidated Average Balances, Yields and Rates Paid (unaudited)
Three Months Ended March 31, 2009
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $12,151,016 $140,767 4.65 %
Investment securities (b) 3,946,429 54,511 5.36
Loans held for sale 20,415 164 3.22
Short-term investments 20,148 32 0.63
Total interest-earning assets 16,138,008 195,474 4.82
Noninterest-earning assets 1,466,046
Total assets $17,604,054
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,507,206 $- - %
Savings, NOW and money market
deposit accounts 5,943,285 15,711 1.07
Time deposits 4,838,449 37,197 3.12
Total deposits 12,288,940 52,908 1.75
Securities sold under agreements to
repurchase
and other short-term debt 1,695,580 5,800 1.37
Federal Home Loan Bank advances 870,368 7,054 3.24
Long-term debt 681,371 7,799 4.58
Total borrowings 3,247,319 20,653 2.54
Total interest-bearing
liabilities 15,536,259 73,561 1.91
Noninterest-bearing liabilities 199,648
Total liabilities 15,735,907
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,858,570
Total liabilities and
shareholders' equity $17,604,054
Tax-equivalent net interest income 121,913
Less: tax-equivalent adjustment (3,716)
Net interest income $118,197
Interest-rate spread 2.91 %
Net interest margin 2.99 %
See Selected Financial Highlights for footnotes.
Consolidated Average Balances, Yields and Rates Paid (unaudited)
Three Months Ended March 31, 2008
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
Assets:
Interest-earning assets:
Loans $12,540,115 $191,272 6.08 %
Investment securities (b) 2,954,885 42,973 5.75
Loans held for sale 96,372 1,400 5.81
Short-term investments 3,690 37 3.98
Total interest-earning assets 15,595,062 235,682 6.02
Noninterest-earning assets 1,538,898
Total assets $17,133,960
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,437,553 $- - %
Savings, NOW and money market
deposit accounts 5,796,671 24,180 1.67
Time deposits 4,938,280 51,062 4.15
Total deposits 12,172,504 75,242 2.49
Securities sold under agreements to
repurchase
and other short-term debt 1,359,763 11,219 3.26
Federal Home Loan Bank advances 1,039,936 9,879 3.76
Long-term debt 658,789 10,808 6.56
Total borrowings 3,058,488 31,906 4.14
Total interest-bearing
liabilities 15,230,992 107,148 2.82
Noninterest-bearing liabilities 160,546
Total liabilities 15,391,538
Preferred stock of subsidiary
corporation 9,577
Shareholders' equity 1,732,845
Total liabilities and
shareholders' equity $17,133,960
Tax-equivalent net interest income 128,534
Less: tax-equivalent adjustment (3,678)
Net interest income $124,856
Interest-rate spread 3.20 %
Net interest margin 3.27 %
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Loan balances (unaudited)
March 31, Dec. 31, Sept. 30,
(Dollars in thousands) 2009 2008 2008
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages $3,170,908 $3,049,706 $3,542,416
Commercial 1,738,640 1,797,135 1,803,321
Equipment financing 1,016,718 1,037,077 1,006,238
Asset based lending 659,694 752,595 867,510
Commercial real estate 2,094,751 2,070,641 2,147,617
Residential development 155,544 161,533 217,564
Consumer 2,979,117 3,016,524 2,960,491
Total continuing 11,815,372 11,885,211 12,545,157
Allowance for loan
losses (226,562) (191,426) (161,331)
Total continuing,
Net 11,588,810 11,693,785 12,383,826
Liquidating Portfolio:
NCLC (c) 13,174 18,735 25,409
Consumer 266,913 283,645 295,823
Total liquidating
portfolio 280,087 302,380 321,232
Allowance for loan
losses (44,367) (43,903) (27,838)
Total liquidating,
Net 235,720 258,477 293,394
Total Loan Balances (actuals) 12,095,459 12,187,591 12,866,389
Allowances for loan loss (270,929) (235,329) (189,169)
Loans, net $11,824,530 $11,952,262 $12,677,220
Loan Balances (average):
Continuing Portfolio:
Residential mortgages $3,092,512 $3,449,202 $3,542,938
Commercial 1,784,062 1,811,527 1,796,598
Equipment finance 1,026,322 1,015,340 1,007,465
Asset based lending 701,263 842,148 844,518
Commercial real estate 2,083,861 2,182,228 2,120,589
Residential development 158,924 161,533 217,564
Consumer 3,012,178 2,989,393 2,924,446
Total continuing 11,859,122 12,451,371 12,454,118
Allowance for loan
losses (204,619) (167,230) (162,420)
Total continuing,
Net 11,654,503 12,284,141 12,291,698
Liquidating Portfolio:
NCLC (c) 15,675 24,199 43,777
Consumer 276,219 293,964 307,503
Total liquidating
portfolio 291,894 318,163 351,280
Allowance for loan
losses (44,367) (43,903) (27,838)
Total liquidating,
net 247,527 274,260 323,442
Total Loan Balances (average) 12,151,016 12,769,534 12,805,398
Allowance for loan losses (248,986) (211,133) (190,258)
Loans, net $11,902,030 $12,558,401 $12,615,140
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Loan balances (unaudited)
June 30, March 31,
(Dollars in thousands) 2008 2008
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages $3,547,997 $3,580,914
Commercial 1,792,528 1,754,738
Equipment financing 1,002,533 983,455
Asset based lending 842,334 833,761
Commercial real estate 2,083,600 1,951,186
Residential development 230,897 244,924
Consumer 2,910,055 2,871,102
Total continuing 12,409,944 12,220,080
Allowance for loan
losses (151,997) (138,191)
Total continuing, net 12,257,947 12,081,889
Liquidating Portfolio:
NCLC (c) 46,103 54,400
Consumer 310,407 326,489
Total liquidating
portfolio 356,510 380,889
Allowance for loan
losses (32,871) (42,117)
Total liquidating, net 323,639 338,772
Total Loan Balances (actuals) 12,766,454 12,600,969
Allowances for loan loss (184,868) (180,308)
Loans, net $12,581,586 $12,420,661
Loan Balances (average):
Continuing Portfolio:
Residential mortgages $3,564,040 $3,576,090
Commercial 1,778,444 1,750,913
Equipment finance 1,001,358 984,313
Asset based lending 836,934 822,794
Commercial real estate 2,016,430 1,867,170
Residential development 230,897 244,924
Consumer 2,890,852 2,902,906
Total continuing 12,318,955 12,149,110
Allowance for loan
losses (147,845) (145,909)
Total continuing, net 12,171,110 12,003,201
Liquidating Portfolio:
NCLC (c) 49,656 58,253
Consumer 318,173 332,752
Total liquidating
portfolio 367,829 391,005
Allowance for loan
losses (32,871) (42,127)
Total liquidating, net 334,958 348,878
Total Loan Balances (average) 12,686,784 12,540,115
Allowance for loan losses (180,716) (188,036)
Loans, net $12,506,068 $12,352,079
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
March 31, Dec. 31, Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2008 2008 2008 2008
Nonperforming loans:
Continuing Portfolio:
Residential
mortgages $66,811 $52,502 $39,445 $27,083 $26,242
Commercial 65,073 32,915 33,842 36,808 25,140
Equipment
financing 16,056 13,138 7,462 6,718 5,719
Asset based
lending 29,353 17,072 17,239 18,980 5,124
Commercial real
estate 12,604 8,032 8,971 9,710 7,809
Residential
development 54,147 48,628 71,065 48,130 13,402
Consumer 40,170 29,939 23,668 20,745 17,084
Nonperforming
loans -
continuing
portfolio 284,214 202,226 201,692 168,174 100,520
Liquidating
Portfolio:
NCLC (c) 12,259 13,402 14,227 28,235 29,804
Consumer 19,695 16,938 10,994 10,651 9,378
Nonperforming
loans -
liquidating
portfolio 31,954 30,340 25,221 38,886 39,182
Total nonperforming
loans $316,168 $232,566 $226,913 $207,060 $139,702
Other real estate owned
and repossessed assets:
Continuing Portfolio:
Residential
mortgages $1,399 $1,863 $3,071 $3,792 $1,820
Commercial 10,361 9,782 1,026 1,113 1,113
Equipment
financing 13,352 13,086 12,261 5,663 5,477
Asset based lending - - - - -
Commercial real
estate - - - - -
Residential
development - - - - -
Consumer 369 1,244 2,835 4,173 4,348
Total continuing 25,481 25,975 19,193 14,741 12,758
Liquidating
Portfolio:
NCLC (c) 5,563 3,519 2,943 279 -
Consumer 1,139 1,129 626 2,020 1,524
Nonperforming loans -
liquidating
portfolio 6,702 4,648 3,569 2,299 1,524
Total other real estate
owned and repossessed
assets $32,183 $30,623 $22,762 $17,040 $14,282
Total nonperforming
assets $348,351 $263,189 $249,675 $224,100 $153,984
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
March 31, Dec. 31, Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2008 2008 2008 2008
Past due 30-89 days:
Continuing Portfolio:
Residential
mortgages $45,798 $45,909 $40,209 $27,534 $28,972
Commercial 8,033 15,817 7,196 8,337 10,229
Equipment
financing 16,404 9,860 8,102 9,414 10,269
Asset based lending 145 3,676 - - -
Commercial real
estate 8,373 7,158 18,241 2,756 24,655
Residential
development 1,004 2,096 5,832 2,485 5,999
Consumer 33,092 33,848 23,279 18,137 20,721
Past Due 30-89 days -
continuing
portfolio 112,849 118,364 102,859 68,663 100,845
Liquidating Portfolio:
NCLC (c) 1 4,487 3,046 2,487 1,645
Consumer 12,244 15,621 15,370 8,063 10,473
Past Due 30-89 days -
liquidating
portfolio 12,245 20,108 18,416 10,550 12,118
Accruing loans past due
90 days or more:
Residential mortgages - - - - -
Commercial 573 459 534 1,380 596
Equipment financing - - - - -
Asset based lending - - - - -
Commercial real
estate - 450 174 - -
Residential
development 150 201 - - 436
Consumer - - - - -
Accruing loans past due
90 days or more: 723 1,110 708 1,380 1,032
Total past due loans $125,817 $139,582 $121,983 $80,593 $113,995
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Credit Losses (unaudited)
For the Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2008 2008 2008 2008
Beginning balance $245,829 $198,669 $194,368 $189,808 $197,586
Provision 66,000 100,000 45,500 25,000 15,800
Charge-offs continuing
portfolio:
Residential
mortgages 2,964 3,778 1,623 1,036 1,480
Commercial 5,388 5,416 6,593 1,154 4,749
Equipment
financing 2,236 1,222 998 672 490
Asset based lending 2,981 176 7,245 1,623 6,200
Commercial real
estate - 53 - 1,504 -
Residential
development 48 30,158 161 3,711 -
Consumer 6,541 3,887 4,643 2,784 3,697
Charge-offs
continuing
portfolio 20,158 44,690 21,263 12,484 16,616
Charge-offs liquidating
portfolio:
NCLC (c) 2,086 777 14,025 4,203 4,341
Consumer 9,911 8,779 6,767 5,450 3,448
Charge-offs
liquidating
portfolio 11,997 9,556 20,792 9,653 7,789
Total charge-offs 32,155 54,246 42,055 22,137 24,405
Recoveries continuing
portfolio:
Residential mortgages 24 85 5 162 36
Commercial 378 225 89 269 241
Equipment financing 287 177 303 238 251
Asset based lending 5 129 61 375 44
Commercial real
estate - - - - -
Residential
development - - - - -
Consumer 766 180 256 246 255
Recoveries continuing
portfolio 1,460 796 714 1,290 827
Recoveries liquidating
portfolio:
NCLC (c) 528 595 151 406 -
Consumer 67 15 (9) 1 -
Recoveries liquidating
portfolio 595 610 142 407 -
Total recoveries 2,055 1,406 856 1,697 827
Total net charge-offs 30,100 52,840 41,199 20,440 23,578
Ending balance $281,729 $245,829 $198,669 $194,368 $189,808
Components:
Allowance for
Loan losses $270,929 $235,329 $189,169 $184,868 $180,308
Reserve for
unfunded credit
commitments 10,800 10,500 9,500 9,500 9,500
Allowance for
credit losses $281,729 $245,829 $198,669 $194,368 $189,808
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Asset Quality Ratios
For the Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2008 2008 2008 2008
Total Portfolio
Allowance for loan
losses / total loans 2.24 % 1.93 % 1.47 % 1.45 % 1.43 %
Allowance for credit
losses / total loans 2.33 2.02 1.54 1.52 1.51
Net charge-offs /
average loans
(annualized) 0.99 1.66 1.29 0.64 0.75
Nonperforming loans /
total loans 2.61 1.91 1.76 1.62 1.11
Nonperforming assets /
total loans plus OREO 2.87 2.15 1.94 1.75 1.22
Allowance for credit
losses / nonperforming
loans 89.11 105.70 87.55 93.87 135.87
Continuing Portfolio
Allowance for loan
losses / total loans 1.92 % 1.61 % 1.29 % 1.22 % 1.13
Allowance for credit
losses / total loans 2.01 1.70 1.36 1.30 1.21
Net charge-offs /
average loans
(annualized) 0.63 1.41 0.66 0.36 0.51
Nonperforming loans /
total loans 2.41 1.70 1.61 1.36 0.82
Nonperforming assets /
total loans plus OREO 2.62 1.92 1.76 1.47 0.93
Allowance for credit
losses / nonperforming
loans 83.52 102.35 86.09 96.48 146.92
Liquidating Portfolio
NCLC (c)
Allowance for loan
losses / total loans 30.86 % 30.01 % 22.85 % 19.65 % 23.64
Net charge-offs /
average loans
(annualized) 39.76 2.99 126.76 30.59 29.81
Nonperforming loans /
total loans 93.05 71.53 55.99 61.24 54.79
Allowance for loan
losses / nonperforming
loans 33.16 41.96 40.80 32.09 43.15
Consumer
Allowance for loan
losses / total loans 15.10 % 13.50 % 7.45 % 7.53 % 8.96
Net charge-offs /
average loans
(annualized) 14.26 11.93 8.81 6.75 4.2
Nonperforming loans /
total loans 7.38 5.97 3.72 3.37 2.87
Allowance for loan
losses / nonperforming
loans 204.63 225.99 200.5 223.63 312.09
See Selected Financial Highlights for footnotes.
SOURCE Webster Financial Corporation
www.websteronline.com