WATERBURY, Conn., Oct. 22 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a consolidated net loss of $19.2 million and net loss available to common shareholders of $26.1 million for the quarter ended September 30, 2009. For the first nine months of 2009, the consolidated net loss was $61.9 million and net loss available to common shareholders was $30.9 million.
Key points for the quarter:
-- Strong deposit growth of $426 million in the quarter; up $1.7 billion
year to date.
-- Improved loan-to-deposit ratio of 83 percent compared to 88 percent at
June 30, 2009.
-- Improved core to total deposit ratio of 69 percent compared to 65
percent at June 30, 2009.
-- Improved net interest margin of 3.18 percent compared to 3.04 percent
for the second quarter of 2009.
-- Increased the allowance for credit losses to 2.97 percent of total
loans; recorded $85.0 million in provision for credit losses and net
charge-offs of $64.6 million.
-- Higher core pre-tax, pre-provision earnings of $56 million compared to
$51 million for the second quarter.
-- The Warburg Pincus investment announced on July 27, 2009 added $40
million of common equity during the quarter. The remaining $75 million
investment in common equity, non-voting perpetual participating
preferred stock, and warrants was completed on October 15, 2009 after
receipt of regulatory approval.
Webster Chairman and Chief Executive Officer James C. Smith said, "Webster reported progress on several fronts in the quarter. Capital levels continue to improve and are well in excess of all regulatory requirements; earnings before credit provisions increased by 10 percent; and deposits and deposit market share are on the rise. We saw significant improvement in the net interest margin, loan delinquencies were flat for the third consecutive quarter and overall performance was solid considering the challenging environment."
Warburg Pincus Investment
-- During the third quarter, Webster announced that the global private
equity firm, Warburg Pincus, would make a $115 million investment in
Webster's common stock. An initial amount of $40 million in the form of
4.0 million common shares was invested on July 27, 2009. The remaining
$75 million was invested on October 15, 2009 with $30 million in the
form of 3.0 million common shares and $45 million in junior non-voting
preferred stock, which converts into an additional 4.5 million common
shares, subject to the receipt of shareholder approval, 6.8 million
seven-year A-Warrants, Series 2, which initially have a strike price of
$10.00 per share, with the strike price increasing to $11.50 per share
on October 15, 2011 and to $13.00 per share on October 15, 2013; and 4.3
million seven-year B-Warrants, Series 2 with a strike price of $2.50 per
share which will only become exercisable and transferable if shareholder
approval is not received by February 28, 2010. The B-Warrants, Series 2
will expire immediately upon receipt of shareholder approval. This
investment, coupled with the successful exchange offer for convertible
preferred stock and trust preferred securities completed during the
second quarter, has allowed Webster to increase common equity by $285
million with minimal dilution to tangible book value.
-- Including the initial $40 million realized under the Warburg Pincus
investment during the third quarter, Webster's ratio of Tier 1 common to
risk-weighted assets was 6.39 percent at September 30, 2009 and
including the recently funded $75 million on a proforma basis, would
have been 6.93 percent at September 30, 2009.
Smith said, "The recent approval by the Fed and funding of the balance of the Warburg Pincus investment has significantly boosted our capital position subsequent to the quarter end. We are pleased to have this transaction completed and to have Warburg as an investor in Webster."
Net interest income
-- Net interest margin improved to 3.18 percent in the third quarter
compared to 3.04 percent in the second quarter; the increase reflects a
28 basis point decline in the cost of funds offsetting a 12 basis point
decline in the yield on interest-earning assets.
-- Average interest-earning assets totaled $16.2 billion, up from $16.0
billion last quarter.
Provision for credit losses
-- $56.5 million of the provision for credit losses recorded in the quarter
was related to the Company's continuing portfolios and $28.5 million was
related to the discontinued liquidating portfolio.
-- Net charge-offs were $64.6 million in the quarter compared to $49.9
million for the quarter ended June 30, 2009; $51.4 million was related
to the continuing portfolios and $13.2 million was related to the
discontinued liquidating portfolio.
Noninterest income
-- Deposit service fees increased by $0.9 million from last quarter,
reflecting seasonality in account usage.
-- Wealth and investment services revenues increased by $0.1 million from
the last quarter, primarily from an increase in the value of assets
under management.
-- Loan related fees declined by $0.8 million from the last quarter,
reflective of lower application volumes and amendment fees in the
quarter.
-- Mortgage banking revenue declined by $2.0 million from the last quarter
from decreased mortgage lending activity in the period.
-- Net loss on sale of investment securities totaled $4.7 million as $4.9
million of pooled trust preferred securities were sold for tax purposes.
-- Other income increased by $2.2 million primarily from higher credit card
referral fees, direct investment income and receipt of insurance
proceeds.
-- Loss of $1.3 million on the write-down of investments on certain pooled
trust preferred securities to fair value based on credit deterioration
in certain underlying issuers.
Noninterest expenses
-- Noninterest expenses, inclusive of severance and other one time costs
and the special FDIC assessment, declined $3.0 million from the second
quarter. The second quarter included $8.0 million in FDIC special
assessment and $1.3 million in severance and other charges, while the
third quarter included $4.1 million in such charges. Included in the
third quarter charges is the establishment of a $3.1 million reserve for
fraud which had no customer impact and excludes any consideration of
recovery.
Income taxes
-- Due to the pre-tax loss, the effective tax rate for the third quarter
was not meaningful. The Company recorded a $22.0 million tax benefit in
the quarter on the $41.3 million pre-tax loss applicable to continuing
operations in the period.
Investment securities
-- Total investment securities were $4.6 billion at September 30, 2009
compared to $4.2 billion at June 30, 2009. The carrying value of the
available for sale portfolio included $4 million in net unrealized
losses compared to $53 million at June 30, 2009, while the carrying
value of the held to maturity portfolio does not reflect $103 million in
net unrealized gains at September 30 compared to $33 million at June 30,
2009.
Loans
-- Total loans were $11.3 billion at September 30, 2009 compared to $11.6
billion at June 30, 2009. In the third quarter, residential mortgage,
consumer, commercial and commercial real estate loans declined by $38.9
million, $64.4 million, $164.2 million and $20.8 million, respectively.
-- The discontinued liquidating portfolio of indirect home equity and
national construction loans, included in the consumer and residential
loan portfolios, declined by $18.5 million from June 30, 2009 to $231.3
million and $5.8 million, respectively.
Asset quality
-- Total nonperforming loans were $361.1 million or 3.19 percent of total
loans at September 30, 2009 compared to $350.4 million or 3.02 percent
at June 30, 2009. The increase in nonperforming loans reflects a
combined increase of $12.9 million in performing non-accrual residential
mortgages and consumer loans, an increase of $30.9 million in
non-accrual commercial real estate loans and a combined decrease of
$33.1 million in all other categories.
-- Past due loans for the continuing portfolios increased to $114.9 million
at September 30, 2009 compared to $112.5 million at June 30, 2009. Past
due loans for the liquidating portfolio increased to $12.6 million at
September 30, 2009 compared to $9.9 million at June 30, 2009.
Deposits and borrowings
-- Total deposits were $13.6 billion at September 30, 2009 compared to
$13.2 billion at June 30, 2009. The core categories of demand, NOW,
money market and savings increased by a combined amount of $737.3
million while certificates of deposit and brokered deposits decreased by
$273.3 million and $37.9 million, respectively.
-- Core deposits, which exclude certificates of deposits and brokered
deposits, represented 68.5 percent of total deposits at September 30,
2009 compared to 65.2 percent at June 30, 2009 and 60.5 percent a year
ago.
-- Total borrowings were $2.1 billion, a decline of $0.2 billion from $2.3
billion at June 30, 2009. Borrowings represented 11.9 percent of total
assets at September 30, 2009 compared to 13.0 percent at June 30, 2009.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.8 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 third quarter earnings announcement will be held today, Thursday, October 22, 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
This press release may contain forward looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Actual results could differ materially from management expectations, projections and estimates. Factors that could cause future results to vary from current management expectations include, but are not limited to, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the federal government, any failure to receive the approval of Webster's shareholders in connection with Warburg Pincus' investment, changes in tax policies, rates and regulations of federal, state and local tax authorities, changes in interest rates, deposit flows, the cost of funds, demand for loan products, demand for financial services, competition, changes in the quality or composition of our loan and investment portfolios, changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices. Some of these and other factors are discussed in the annual and quarterly reports of Webster Financial Corporation previously filed with the Securities and Exchange Commission. Such developments, or any combination thereof, could have an adverse impact on the company's financial position and results of operations. Except as required by law, Webster does not undertake to update any such forward looking statements.
Additional Information
In connection with the Investment Agreement, Webster has filed with the Securities and Exchange Commission (the "SEC") a preliminary proxy statement. Webster will mail the definitive proxy statement, when available, to its shareholders. Investors and security holders are urged to read the proxy statement regarding the investment when it becomes available because it will contain important information. You may obtain a free copy of the proxy statement (when available) and other related documents filed by Webster with the SEC at the SEC's website at http://www.sec.gov. The definitive proxy statement (when available) and the other documents may also be obtained for free by accessing Webster's website at http://www.websterbank.com under the heading "Investor Relations" and then under the heading "Financial Reports" and then under the heading "SEC Filings."
Participants in the Solicitation
Webster and its directors, executive officers and certain other members of management and employees may be soliciting proxies from shareholders in favor of certain matters relating to Warburg Pincus' investment. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders in connection with such matters is filed with the SEC. Information about the directors and executive officers of Webster is set forth in Webster's definitive proxy statement filed with the SEC on March 20, 2009. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the preliminary proxy statement filed with the SEC on September 21, 2009. You may obtain a free copy of the definitive proxy statement (when available) and other related documents filed by Webster with the SEC at the SEC's website at http://www.sec.gov. The definitive proxy statement (when available) and the other documents may also be obtained for free by accessing Webster's website at http://www.websterbank.com under the heading "Investor Relations" and then under the heading "Financial Reports" and then under the heading "SEC Filings."
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 At or for the Nine
Months Ended Months Ended
(In thousands, September 30, September 30,
except per share data) 2009 2008 2009 2008
-------------------------------------------------------------------------
Net loss and performance
ratios (annualized):
-------------------------------------------------------------------------
Net loss $(19,250) $(16,539) $(61,936) $(20,683)
Net loss per diluted
common share (0.39) (0.42) (0.54) (0.51)
Return on average
shareholders' equity (4.14)% (3.54)% (4.45)% (1.54)%
Return on average
tangible equity (5.88) (5.89) (6.32) (2.65)
Return on average assets (0.44) (0.38) (0.47) (0.16)
Loss from continuing operations
and performance ratios (annualized):
-------------------------------------------------------------------------
Loss from continuing
operations $(19,250) $(16,021) $(62,249) $(17,602)
Net loss from continuing
operations per diluted
common share (0.39) (0.41) (0.55) (0.45)
Return on average
shareholders' equity (4.14)% (3.43)% (4.47)% (1.31)%
Return on average
tangible equity (5.88) (5.70) (6.35) (2.26)
Return on average assets (0.44) (0.37) (0.47) (0.14)
Noninterest income as a
percentage of total revenue 25.85 10.87 26.85 13.22
Efficiency ratio (a) 65.11 59.60 66.29 63.52
Asset quality:
-------------------------------------------------------------------------
Allowance for credit losses $336,511 $198,669 $336,511 $198,669
Nonperforming assets 393,593 249,675 393,593 249,675
Allowance for credit losses
/ total loans 2.97% 1.54% 2.97% 1.54%
Net charge-offs / average
loans (annualized) 2.25 1.29 1.62 0.89
Nonperforming loans / total
loans 3.19 1.76 3.19 1.76
Nonperforming assets /
total loans plus OREO 3.47 1.94 3.47 1.94
Allowance for credit losses /
nonperforming loans 93.20 87.55 93.20 87.55
Other ratios (annualized):
-------------------------------------------------------------------------
Tangible capital ratio 7.70% 6.34% 7.70% 6.34%
Tangible common equity ratio 5.10 5.00 5.10 5.00
Total-risk based capital (d) 14.05 13.10 14.05 13.10
Tier 1 common equity / risk
weighted assets (d) 6.40 6.91 6.40 6.91
Shareholders' equity /
total assets 10.60 10.37 10.60 10.37
Interest-rate spread 3.12 3.24 2.99 3.21
Net interest margin 3.18 3.32 3.07 3.28
Share related:
-------------------------------------------------------------------------
Book value per common share $21.11 $30.19 $21.11 $30.19
Tangible book value per
common share 13.05 16.13 13.05 16.13
Common stock closing price 12.47 25.25 12.47 25.25
Dividends declared per
common share 0.01 0.30 0.03 0.90
Common shares issued and
outstanding 68,140 52,711 68,140 52,711
Basic shares (average) 66,281 52,032 57,125 52,017
Diluted shares (average) 66,281 52,032 57,125 52,017
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)
-------------------------------------------------------------------------
September 30, June 30, September 30,
(In thousands) 2009 2009 2008
-------------------------------------------------------------------------
Assets:
Cash and due from
depository institutions $173,437 $254,638 $221,195
Short-term investments 360,618 8,216 6,449
Investment securities:
Trading, at fair value - - 1,197
Available for sale, at
fair value 1,912,283 1,405,872 824,118
Held-to-maturity 2,702,881 2,767,965 2,031,665
--------- --------- ---------
Total securities 4,615,164 4,173,837 2,856,980
Loans held for sale 37,005 113,936 3,247
Loans:
Residential mortgages 2,843,066 2,881,955 3,567,825
Consumer 3,094,927 3,159,361 3,256,314
Commercial 3,169,425 3,333,610 3,677,069
Commercial real estate 2,214,941 2,235,776 2,365,181
--------- --------- ---------
Total loans 11,322,359 11,610,702 12,866,389
Allowance for loan losses (326,406) (305,999) (189,169)
-------- -------- --------
Loans, net 10,995,953 11,304,703 12,677,220
Assets held for disposition 9,920 6,247 900
Federal Home Loan Bank and
Federal Reserve Bank stock 140,874 137,874 134,874
Accrued interest receivable 70,007 69,317 75,830
Premises and equipment, net 179,353 179,625 188,443
Goodwill and other
intangible assets, net 559,592 561,013 754,026
Cash surrender value of
life insurance 286,806 285,064 277,176
Deferred tax assets, net 139,458 153,745 127,628
Prepaid expenses and other
assets 240,099 204,361 192,069
------- ------- -------
Total Assets $17,808,286 $17,452,576 $17,516,037
=========== =========== ===========
Liabilities and Equity:
Deposits:
Demand deposits $1,571,980 $1,595,390 $1,509,319
NOW accounts 2,544,260 2,591,108 1,740,650
Money market deposit
accounts 2,209,145 1,618,910 1,591,599
Savings accounts 2,996,318 2,778,970 2,318,014
Certificates of deposit 4,148,759 4,422,033 4,492,767
Brokered deposits 130,268 168,171 180,026
------- ------- -------
Total deposits 13,600,730 13,174,582 11,832,375
Securities sold under
agreements to repurchase and
other short-term debt 872,030 1,015,099 1,688,728
Federal Home Loan Bank
advances 663,210 663,123 1,355,931
Long-term debt 589,600 590,520 657,004
Liabilities held for
disposition 15,075 - -
Accrued expenses and other
liabilities 170,267 158,102 155,810
------- ------- -------
Total liabilities 15,910,912 15,601,426 15,689,848
Shareholders' equity 1,887,734 1,841,518 1,816,569
Noncontrolling interests 9,640 9,632 9,620
----- ----- -----
Total equity 1,897,374 1,851,150 1,826,189
--------- --------- ---------
Total Liabilities and
Equity $17,808,286 $17,452,576 $17,516,037
=========== =========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Operations (unaudited)
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per -------------- --------------
share data) 2009 2008 2009 2008
-------------------------------------------------------------------------
Interest income:
Loans including fees $131,266 $175,363 $409,566 $542,421
Investment securities 52,975 39,210 152,601 116,657
Loans held for sale 716 54 1,713 1,546
--- --- ----- -----
Total interest income 184,957 214,627 563,880 660,624
------- ------- ------- -------
Interest expense:
Deposits 41,977 57,731 144,867 193,028
Borrowings 16,308 27,715 54,856 87,873
------ ------ ------ ------
Total interest expense 58,285 85,446 199,723 280,901
------ ------ ------- -------
Net interest income 126,672 129,181 364,157 379,723
Provision for credit losses 85,000 45,500 236,000 86,300
------ ------ ------- ------
Net interest income
after provision for
credit losses 41,672 83,681 128,157 293,423
------ ------ ------- -------
Non-interest income:
Deposit service fees 30,844 31,738 88,787 90,114
Loan related fees 5,557 7,171 18,389 21,920
Wealth and investment
services 6,160 7,070 17,991 21,660
Mortgage banking activities 1,406 50 5,445 894
Increase in cash surrender
value of life insurance 2,692 2,606 7,949 7,810
Net (loss) gain on sale of
investment securities (4,728) (50) (13,863) 199
Other income 3,517 2,731 5,117 5,369
----- ----- ----- -----
45,448 51,316 129,815 147,966
Gain on the exchange of
trust preferreds for
common stock - - 24,336 -
Gain on early
extinguishment of
subordinated notes - - 5,993 -
Loss on write-down of
investments to fair value (1,290) (33,507) (28,400) (89,684)
Visa share transactions - - 1,907 1,625
Loss on sale of FNMA/FHLMC
preferred stock - (2,060) - (2,060)
------ ------ ------ ------
Total non-interest
income 44,158 15,749 133,651 57,847
------ ------ ------- ------
Non-interest expenses:
Compensation and benefits 59,772 61,314 175,430 187,623
Occupancy 13,572 12,827 41,461 39,637
Furniture and equipment 15,199 14,892 45,627 45,686
Marketing 3,802 2,478 10,104 11,061
Outside services 3,628 3,798 10,806 11,657
Intangible amortization 1,421 1,464 4,334 4,476
Foreclosed and repossessed
asset expenses 1,733 1,496 4,868 2,844
Foreclosed and repossessed
asset write-downs 2,232 1,968 8,354 2,685
FDIC deposit insurance
assessment 5,942 532 16,491 1,230
Other expenses 15,616 13,998 43,982 44,061
------ ------ ------ ------
122,917 114,767 361,457 350,960
Severance and other costs 4,169 1,535 5,722 10,253
Impairment of goodwill - 1,013 - 9,513
FDIC special assessment - - 8,000 -
--- --- ----- ---
Total non-interest
expenses 127,086 117,315 375,179 370,726
------- ------- ------- -------
Loss from continuing
operations before income
taxes (41,256) (17,885) (113,371) (19,456)
Income tax benefit (22,014) (1,878) (51,143) (1,860)
------- ------ ------- ------
Loss from continuing
operations (19,242) (16,007) (62,228) (17,596)
(Loss) income from
discontinued operations,
net of tax - (518) 313 (3,081)
--- ---- --- ------
Consolidated net loss $(19,242) $(16,525) $(61,915) $(20,677)
Less: Net income
attributable to
noncontrolling interests 8 14 21 6
--- --- --- ---
Net loss attributable to
Webster Financial
Corporation (19,250) (16,539) (61,936) (20,683)
Preferred stock dividends,
accretion and extinguishment
gain (6,850) (5,209) 31,082 (5,640)
------ ------ ------ ------
Net loss available to
common shareholders $(26,100) $(21,748) $(30,854) $(26,323)
======== ======== ======== ========
Diluted shares (average) 66,281 52,032 57,125 52,017
Net loss per common share:
Basic
Loss from continuing
operations $(0.39) $(0.41) $(0.55) $(0.45)
Net loss (0.39) (0.42) (0.54) (0.51)
Diluted
Loss from continuing
operations (0.39) (0.41) (0.55) (0.45)
Net loss (0.39) (0.42) (0.54) (0.51)
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Operations (unaudited)
-------------------------------------------------------------------------
Three Months Ended
-------------------------
Sept. June March
30, 30, 31,
(In thousands, except per share data) 2009 2009 2009
-------------------------------------------------------------------------
Interest income:
Loans including fees $131,266 $137,533 $140,767
Investment securities 52,975 48,799 50,827
Loans held for sale 716 833 164
--- --- ---
Total interest income 184,957 187,165 191,758
------- ------- -------
Interest expense:
Deposits 41,977 49,982 52,908
Borrowings 16,308 17,895 20,653
------ ------ ------
Total interest expense 58,285 67,877 73,561
------ ------ ------
Net interest income 126,672 119,288 118,197
Provision for credit losses 85,000 85,000 66,000
------ ------ ------
Net interest income after
provision for credit losses 41,672 34,288 52,197
------ ------ ------
Noninterest income:
Deposit service fees 30,844 29,984 27,959
Loan related fees 5,557 6,350 6,482
Wealth and investment services 6,160 6,081 5,750
Mortgage banking activities 1,406 3,433 606
Increase in cash surrender
value of life insurance 2,692 2,665 2,592
Net (loss) gain on sale of
investment securities (4,728) (13,593) 4,458
Other income 3,517 1,325 275
----- ----- ---
45,448 36,245 48,122
Gain on the exchange of trust
preferreds for common stock - 24,336 -
Gain on early extinguishment
of debt and swaps - - 5,993
Loss on write-down of
investments to fair value (1,290) (27,110) -
Loss on sale of FNMA/
FHLMC preferred stock - - -
Visa share transactions - 1,907 -
--- ----- ---
Total noninterest income 44,158 35,378 54,115
------ ------ ------
Noninterest expenses:
Compensation and benefits 59,772 59,189 56,469
Occupancy 13,572 13,594 14,295
Furniture and equipment 15,199 15,288 15,140
Marketing 3,802 3,196 3,106
Outside services 3,628 3,394 3,784
Intangible amortization 1,421 1,450 1,463
Foreclosed and repossessed asset
expenses 1,733 1,799 1,179
Foreclosed and repossessed
asset write-downs 2,232 2,829 3,450
FDIC deposit insurance assessment 5,942 5,959 4,590
Other expenses 15,616 14,066 14,302
------ ------ ------
122,917 120,764 117,778
Severance and other costs 4,169 1,313 240
FDIC special assessment - 8,000 -
Goodwill impairment - - -
--- --- ---
Total noninterest expenses 127,086 130,077 118,018
------- ------- -------
Loss from continuing operations
before income taxes (41,256) (60,411) (11,706)
Income tax benefit (22,014) (28,536) (593)
------- ------- ----
Loss from continuing operations (19,242) (31,875) (11,113)
Income (loss) from discontinued
operations, net of tax - 313 -
--- --- ---
Consolidated net loss $(19,242) $(31,562) $(11,113)
Less: Net income (loss) attributable
to noncontrolling interests 8 - 13
--- --- ---
Net loss attributable to Webster
Financial Corporation (19,250) $(31,562) $(11,126)
Preferred stock dividends, accretion
and extinguishment gain (6,850) 48,361 (10,430)
------ ------ -------
Net (loss) income available to
common shareholders $(26,100) $16,799 $(21,556)
-------- ------- --------
Diluted shares (average) 66,281 53,398 52,102
Net income (loss) per common share:
Basic
(Loss) income from
continuing operations $(0.39) $0.31 $(0.41)
Net (loss) income (0.39) 0.31 (0.41)
Diluted
(Loss) income from
continuing operations (0.39) 0.31 (0.41)
Net (loss) income (0.39) 0.31 (0.41)
Three Months Ended
------------------
Dec. Sept.
31, 30,
(In thousands, except per share data) 2008 2008
-------------------------------------------------------------------------
Interest income:
Loans including fees $168,200 $175,363
Investment securities 40,398 39,210
Loans held for sale 51 54
--- ---
Total interest income 208,649 214,627
------- -------
Interest expense:
Deposits 57,154 57,731
Borrowings 25,427 27,715
------ ------
Total interest expense 82,581 85,446
------ ------
Net interest income 126,068 129,181
Provision for credit losses 100,000 45,500
------- ------
Net interest income after
provision for credit losses 26,068 83,681
------ ------
Noninterest income:
Deposit service fees 30,018 31,738
Loan related fees 7,147 7,171
Wealth and investment services 6,480 7,070
Mortgage banking activities 336 50
Increase in cash surrender
value of life insurance 2,631 2,606
Net (loss) gain on sale of
investment securities (4,233) (50)
Other income 1,315 2,731
----- -----
43,694 51,316
Gain on the exchange of trust
preferreds for common stock - -
Gain on early extinguishment
of debt and swaps - -
Loss on write-down of
investments to fair value (129,593) (33,507)
Loss on sale of FNMA/
FHLMC preferred stock - (2,060)
Visa share transactions - -
--- ---
Total noninterest income (85,899) 15,749
------- ------
Noninterest expenses:
Compensation and benefits 52,078 61,314
Occupancy 13,406 12,827
Furniture and equipment 15,469 14,892
Marketing 2,895 2,478
Outside services 4,101 3,798
Intangible amortization 1,463 1,464
Foreclosed and
repossessed asset
expenses 1,799 1,496
Foreclosed and repossessed
asset write-downs 1,615 1,968
FDIC deposit insurance assessment 3,468 532
Other expenses 13,379 13,998
109,673 114,767
Severance and other costs 5,905 1,535
FDIC special assessment - -
Goodwill impairment 188,866 1,013
------- -----
Total noninterest expenses 304,444 117,315
------- -------
Loss from continuing operations
before income taxes (364,275) (17,885)
Income tax benefit (63,980) (1,878)
------- ------
Loss from continuing operations (300,295) (16,007)
Income (loss) from discontinued
operations, net of tax 8 (518)
--- ----
Consolidated net loss $(300,287) $(16,525)
Less: Net income (loss) attributable
to noncontrolling interests (1) 14
--- ---
Net loss attributable to Webster
Financial Corporation $(300,286) $(16,539)
Preferred stock dividends, accretion
and extinguishment gain (7,308) (5,209)
------ ------
Net (loss) income available to
common shareholders $(307,594) $(21,748)
--------- --------
Diluted shares (average) 52,031 52,032
Net income (loss) per common share:
Basic
(Loss) income from
continuing operations $(5.91) $(0.41)
Net (loss) income (5.91) (0.42)
Diluted
(Loss) income from
continuing operations (5.91) (0.41)
Net (loss) income (5.91) (0.42)
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Interest-Rate Spreads (unaudited)
-------------------------------------------------------------------------
Three Months Ended
----------------------------------------------
September June March December September
30, 30, 31, 31, 30,
2009 2009 2009 2008 2008
-------------------------------------------------------------------------
Interest-rate spread
--------------------
Yield on interest-
earning assets 4.60% 4.72% 4.82% 5.24% 5.45%
Cost of interest-bearing
liabilities 1.48 1.76 1.91 2.13 2.21
---- ---- ---- ---- ----
Interest-rate spread 3.12% 2.96% 2.91% 3.11% 3.24%
==== ==== ==== ==== ====
Net interest margin 3.18% 3.04% 2.99% 3.20% 3.32%
==== ==== ==== ==== ====
Consolidated Average Balances, Yields and Rates Paid (unaudited)
-------------------------------------------------------------------------
Three Months Ended September 30, 2009
-------------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
-------------------------------------------------------------------------
Assets:
Interest-earning assets:
Loans $11,465,068 $131,266 4.54%
Investment securities (b) 4,303,155 55,777 5.14
Loans held for sale 68,663 716 4.17
Federal Home Loan and
Federal Reserve Bank stock 138,070 674 1.94
Short-term investments 272,222 187 0.27
------- --- ----
Total interest-earning
assets 16,247,178 188,620 4.60
------- ----
Noninterest-earning assets 1,344,626
---------
Total assets $17,591,804
===========
Liabilities and Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $1,598,433 $- -%
Savings, NOW and money
market deposit accounts 7,444,729 15,602 0.83
Time deposits 4,384,509 26,375 2.39
--------- ------ ----
Total deposits 13,427,671 41,977 1.24
---------- ------ ----
Securities sold under
agreements to repurchase
and other short-term debt 895,771 4,472 1.95
Federal Home Loan Bank
advances 662,367 6,514 3.85
Long-term debt 589,384 5,322 3.61
------- ----- ----
Total borrowings 2,147,522 16,308 2.99
--------- ------ ----
Total interest-bearing
liabilities 15,575,193 58,285 1.48
------ ----
Noninterest-bearing
liabilities 146,798
-------
Total liabilities 15,722,050
Noncontrolling Interests 9,636
Shareholders' equity 1,860,177
---------
Total liabilities and
shareholders' equity $17,591,804
===========
Tax-equivalent net interest
income 130,335
Less: tax-equivalent
adjustment (3,663)
------
Net interest income $126,672
========
Interest-rate spread 3.12%
====
Net interest margin 3.18%
====
Three Months Ended September 30, 2008
-------------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
-------------------------------------------------------------------------
Assets:
Interest-earning assets:
Loans $12,805,398 $175,363 5.43%
Investment securities (b) 2,860,309 41,661 5.62
Loans held for sale 3,810 54 5.62
Federal Home Loan and
Federal Reserve Bank stock 132,413 1,265 3.80
Short-term investments 4,193 28 2.64
----- --- ----
Total interest-earning
assets 15,806,123 218,371 5.45
------- ----
Noninterest-earning assets 1,537,759
---------
Total assets $17,343,882
===========
Liabilities and Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $1,515,047 $- -%
Savings, NOW and money
market
deposit accounts 5,869,948 19,660 1.33
Time deposits 4,670,268 38,070 3.23
--------- ------ ----
Total deposits 12,055,263 57,730 1.90
---------- ------ ----
Securities sold under
agreements to repurchase
and other short-term debt 1,332,097 8,517 2.50
Federal Home Loan Bank
advances 1,291,583 10,181 3.08
Long-term debt 655,760 9,018 5.50
------- ----- ----
Total borrowings 3,279,440 27,716 3.33
--------- ------ ----
Total interest-bearing
liabilities 15,334,703 85,446 2.21
------ ----
Noninterest-bearing
liabilities 132,762
-------
Total liabilities 15,467,502
Noncontrolling interests 9,614
Shareholders' equity 1,866,803
---------
Total liabilities and
shareholders' equity $17,343,882
===========
Tax-equivalent net interest
income 132,925
Less: tax-equivalent
adjustment (3,744)
------
Net interest income $129,181
========
Interest-rate spread 3.24%
====
Net interest margin 3.32%
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields and Rates Paid (unaudited)
-------------------------------------------------------------------------
Nine Months Ended September 30, 2009
-------------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
-------------------------------------------------------------------------
Assets:
Interest-earning assets:
Loans $11,870,636 $409,566 4.58%
Investment securities (b) 3,975,016 161,352 5.31
Loans held for sale 55,798 1,713 4.09
Federal Home Loan and Federal
Reserve Bank stock 136,940 1,970 1.92
Short-term investments 102,421 261 0.34
------- --- ----
Total interest-earning
assets 16,140,811 574,862 4.71
------- ----
Noninterest-earning assets 1,417,635
---------
Total assets $17,558,446
===========
Liabilities and
Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,557,900 $- -%
Savings, NOW and money market
deposit accounts 6,716,808 46,542 0.93
Time deposits 4,665,633 98,325 2.82
--------- ------ ----
Total deposits 12,940,341 144,867 1.50
---------- ------- ----
Securities sold under
agreements to repurchase
and other short-term debt 1,204,744 14,826 1.62
Federal Home Loan Bank
advances 732,351 20,028 3.61
Long-term debt 641,152 20,002 4.16
------- ------ ----
Total borrowings 2,578,247 54,856 2.82
--------- ------ ----
Total interest-bearing
liabilities 15,518,588 199,723 1.72
------- ----
Noninterest-bearing
liabilities 172,467
-------
Total liabilities 15,691,107
Noncontrolling interests 9,629
Shareholders' equity 1,857,762
---------
Total liabilities and
shareholders' equity $17,558,446
===========
375,139
Less: tax-equivalent
adjustment (10,982)
-------
Net interest income $364,157
========
Interest-rate spread 2.99%
====
Net interest margin 3.07%
====
Nine Months Ended September 30, 2008
-------------------------------------------------------------------------
Fully tax-
Average equivalent
(Dollars in thousands) balance Interest yield/rate
-------------------------------------------------------------------------
Assets:
Interest-earning assets:
Loans $12,677,899 $542,421 5.67%
Investment securities (b) 2,860,501 123,394 5.62
Loans held for sale 35,181 1,546 5.86
Federal Home Loan and Federal
Reserve Bank stock 124,922 4,305 4.60
Short-term investments 4,750 106 2.93
----- --- ----
Total interest-earning
assets 15,703,253 671,772 5.65
------- ----
Noninterest-earning assets 1,538,806
---------
Total assets $17,242,059
===========
Liabilities and
Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits $1,480,139 $- -%
Savings, NOW and money market
deposit accounts 5,852,690 63,145 1.44
Time deposits 4,744,594 129,883 3.65
--------- ------- ----
Total deposits 12,077,423 193,028 2.13
---------- ------- ----
Securities sold under
agreements to repurchase
and other short-term debt 1,330,197 28,298 2.80
Federal Home Loan Bank
advances 1,230,280 30,607 3.27
Long-term debt 658,387 28,968 5.87
------- ------ ----
Total borrowings 3,218,864 87,873 3.60
--------- ------ ----
Total interest-bearing
liabilities 15,296,287 280,901 2.44
------- ----
Noninterest-bearing
liabilities 147,586
-------
Total liabilities 15,443,907
Noncontrolling interest 9,611
Shareholders' equity 1,788,575
---------
Total liabilities and
shareholders' equity $17,242,059
===========
390,871
Less: tax-equivalent
adjustment (11,148)
-------
Net interest income $379,723
========
Interest-rate spread 3.21%
====
Net interest margin 3.28%
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Loan balances (unaudited)
-------------------------------------------------------------------------
Sep. 30, June 30, March 31,
(Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages $2,837,240 $2,875,415 $3,170,908
Consumer 2,863,622 2,910,275 2,979,117
Commercial 1,619,284 1,711,995 1,738,640
Equipment financing 951,500 998,258 1,016,718
Asset based lending 598,641 623,357 659,694
Commercial real estate 2,086,298 2,091,811 2,094,751
Residential development 128,643 143,965 155,544
------- ------- -------
Total continuing 11,085,228 11,355,076 11,815,372
Allowances for loan loss (269,306) (264,159) (226,562)
-------- -------- --------
Total continuing, net 10,815,922 11,090,917 11,588,810
---------- ---------- ----------
Liquidating Portfolio:
NCLC (c) 5,826 6,540 13,174
Consumer 231,305 249,086 266,913
------- ------- -------
Total liquidating
portfolio 237,131 255,626 280,087
Allowances for loan loss (57,100) (41,840) (44,367)
------- ------- -------
Total liquidating, net 180,031 213,786 235,720
------- ------- -------
Total Loan Balances (actuals) 11,322,359 11,610,702 12,095,459
Allowances for loan loss (326,406) (305,999) (270,929)
-------- -------- --------
Loans (net) $10,995,953 $11,304,703 $11,824,530
=========== =========== ===========
Loan Balances (average):
Continuing Portfolio:
Residential mortgages $2,831,440 $3,127,099 $3,092,512
Consumer 2,884,543 2,951,691 3,012,178
Commercial 1,675,289 1,750,996 1,784,062
Equipment finance 975,552 1,011,999 1,026,322
Asset based lending 622,472 652,197 701,263
Commercial real estate 2,089,643 2,090,615 2,083,861
Residential development 139,040 150,674 158,924
------- ------- -------
Total continuing 11,217,980 11,735,271 11,859,122
Allowances for loan loss (260,472) (248,701) (204,619)
-------- -------- --------
Total continuing, net 10,957,508 11,486,570 11,654,503
---------- ---------- ----------
Liquidating Portfolio:
NCLC (c) 6,414 10,090 15,675
Consumer 240,675 258,001 276,219
------- ------- -------
Total liquidating
portfolio 247,089 268,091 291,894
Allowances for loan loss (57,100) (41,840) (44,367)
------- ------- -------
Total liquidating, net 189,989 226,251 247,527
------- ------- -------
Total Loan Balances (average) 11,465,068 12,003,362 12,151,016
Allowances for loan loss (317,572) (290,541) (248,986)
-------- -------- --------
Loans (net) $11,147,496 $11,712,821 $11,902,030
=========== =========== ===========
Dec. 31, Sept. 30,
(Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages $3,049,706 $3,542,416
Consumer 3,016,524 2,960,491
Commercial 1,797,135 1,803,321
Equipment financing 1,037,077 1,006,238
Asset based lending 752,595 867,510
Commercial real estate 2,070,641 2,147,617
Residential development 161,533 217,564
------- -------
Total continuing 11,885,211 12,545,157
Allowances for loan loss (191,426) (161,331)
-------- --------
Total continuing, net 11,693,785 12,383,826
---------- ----------
Liquidating Portfolio:
NCLC (c) 18,735 25,409
Consumer 283,645 295,823
------- -------
Total liquidating
portfolio 302,380 321,232
Allowances for loan loss (43,903) (27,838)
------- -------
Total liquidating, net 258,477 293,394
------- -------
Total Loan Balances (actuals) 12,187,591 12,866,389
Allowances for loan loss (235,329) (189,169)
-------- --------
Loans (net) $11,952,262 $12,677,220
=========== ===========
Loan Balances (average):
Continuing Portfolio:
Residential mortgages $3,449,202 $3,542,938
Consumer 2,989,393 2,924,446
Commercial 1,811,527 1,796,598
Equipment finance 1,015,340 1,007,465
Asset based lending 842,148 844,518
Commercial real estate 2,182,228 2,120,589
Residential development 161,533 217,564
------- -------
Total continuing 12,451,371 12,454,118
Allowances for loan loss (167,230) (162,420)
-------- --------
Total continuing, net 12,284,141 12,291,698
---------- ----------
Liquidating Portfolio:
NCLC (c) 24,199 43,777
Consumer 293,964 307,503
------- -------
Total liquidating
portfolio 318,163 351,280
Allowances for loan loss (43,903) (27,838)
------- -------
Total liquidating, net 274,260 323,442
------- -------
Total Loan Balances (average) 12,769,534 12,805,398
Allowances for loan loss (211,133) (190,258)
-------- --------
Loans (net) $12,558,401 $12,615,140
=========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
-------------------------------------------------------------------------
Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Nonperforming loans:
Continuing Portfolio:
Residential mortgages $66,180 $59,775 $55,962
Performing non-accrual residential
mortgages 43,581 33,822 10,849
Commercial 61,746 68,979 65,073
Equipment financing 31,784 35,675 16,056
Asset based lending 5,064 24,456 29,353
Commercial real estate 47,644 16,707 12,604
Residential development 44,821 46,808 54,147
Consumer 33,837 33,816 37,518
Performing non-accrual consumer 6,000 4,534 2,652
----- ----- -----
Nonperforming loans - continuing
portfolio 340,657 324,572 284,214
------- ------- -------
Liquidating Portfolio:
NCLC (c) 4,089 5,628 12,259
Performing non-accrual NCLC 825 - -
Consumer 14,030 19,521 19,510
Performing non-accrual consumer 1,475 674 185
----- --- ---
Nonperforming loans - liquidating
portfolio 20,419 25,823 31,954
------ ------ ------
Total nonperforming loans $361,076 $350,395 $316,168
-------- -------- --------
Other real estate owned and repossessed
assets:
Continuing Portfolio:
Residential mortgages $2,872 $1,808 $1,399
Commercial 13,225 9,340 10,361
Equipment financing 8,479 10,322 13,352
Asset based lending - - -
Commercial real estate - - -
Residential development - - -
Consumer 4,833 5,571 369
----- ----- ---
Total continuing 29,409 27,041 25,481
------ ------ ------
Liquidating Portfolio:
NCLC (c) 3,108 5,836 5,563
Consumer - 931 1,139
--- --- -----
Nonperforming loans - liquidating
portfolio 3,108 6,767 6,702
----- ----- -----
Total other real estate owned and
repossessed assets $32,517 $33,808 $32,183
------- ------- -------
Total nonperforming assets $393,593 $384,203 $348,351
======== ======== ========
Dec. 31, Sept. 30,
(Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Nonperforming loans:
Continuing Portfolio:
Residential mortgages $48,731 $39,445
Performing non-accrual residential
mortgages 3,771 -
Commercial 32,915 33,842
Equipment financing 13,138 7,462
Asset based lending 17,072 17,239
Commercial real estate 8,032 8,971
Residential development 48,628 71,065
Consumer 29,627 23,668
Performing non-accrual consumer 312 -
--- ---
Nonperforming loans - continuing
portfolio 202,226 201,692
------- -------
Liquidating Portfolio:
NCLC (c) 12,821 14,227
Performing non-accrual NCLC 581 -
Consumer 16,757 10,994
Performing non-accrual consumer 181 -
--- ---
Nonperforming loans - liquidating
portfolio 30,340 25,221
------ ------
Total nonperforming loans $232,566 $226,913
-------- --------
Other real estate owned and repossessed
assets:
Continuing Portfolio:
Residential mortgages $1,863 $3,071
Commercial 9,782 1,026
Equipment financing 13,086 12,261
Asset based lending - -
Commercial real estate - -
Residential development - -
Consumer 1,244 2,835
----- -----
Total continuing 25,975 19,193
------ ------
Liquidating Portfolio:
NCLC (c) 3,519 2,943
Consumer 1,129 626
----- ---
Nonperforming loans - liquidating
portfolio 4,648 3,569
----- -----
Total other real estate owned and
repossessed assets $30,623 $22,762
------- -------
Total nonperforming assets $263,189 $249,675
======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
-------------------------------------------------------------------------
Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Residential mortgages $38,927 $39,955 $45,798
Commercial 9,735 8,460 8,033
Equipment financing 10,407 13,464 16,404
Asset based lending - - 145
Commercial real estate 23,872 19,053 8,373
Residential development 776 3,210 1,004
Consumer 31,178 28,354 33,092
------ ------ ------
Past Due 30-89 days -
continuing portfolio 114,895 112,496 112,849
------- ------- -------
Liquidating Portfolio:
NCLC (c) 910 1 1
Consumer 11,680 9,880 12,244
------ ----- ------
Past Due 30-89 days -
liquidating portfolio 12,590 9,881 12,245
------ ----- ------
Accruing loans past due 90 days
or more:
Residential mortgages - - -
Commercial 2,685 445 573
Equipment financing - - -
Asset based lending - - -
Commercial real estate 206 475 -
Residential development - - 150
Consumer - - -
--- --- ---
Accruing loans past due 90
days or more: 2,891 920 723
----- --- ---
Total past due loans $130,376 $123,297 $125,817
======== ======== ========
Dec. 31, Sept. 30,
(Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Residential mortgages $45,909 $40,209
Commercial 15,817 7,196
Equipment financing 9,860 8,102
Asset based lending 3,676 -
Commercial real estate 7,158 18,241
Residential development 2,096 5,832
Consumer 33,848 23,279
------ ------
Past Due 30-89 days -
continuing portfolio 118,364 102,859
------- -------
Liquidating Portfolio:
NCLC (c) 4,487 3,046
Consumer 15,621 15,370
------ ------
Past Due 30-89 days -
liquidating portfolio 20,108 18,416
------ ------
Accruing loans past due 90 days
or more:
Residential mortgages - -
Commercial 459 534
Equipment financing - -
Asset based lending - -
Commercial real estate 450 174
Residential development 201 -
Consumer - -
--- ---
Accruing loans past due 90
days or more: 1,110 708
----- ---
Total past due loans $139,582 $121,983
======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Credit Losses (unaudited)
-------------------------------------------------------------------------
For the Three Months Ended
--------------------------------
Sept. 30, June 30, March 31,
(Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Beginning balance $316,037 $281,729 $245,829
Provision 85,000 85,000 66,000
Charge-offs continuing portfolio:
Residential mortgages 2,721 4,793 2,964
Commercial 13,729 8,983 5,388
Equipment financing 7,939 6,324 2,236
Asset based lending 15,926 5,297 2,981
Commercial real estate - - -
Residential development 3,019 2,350 48
Consumer 10,237 10,242 6,541
------ ------ -----
Charge-offs continuing
portfolio 53,571 37,989 20,158
Charge-offs liquidating portfolio:
NCLC (c) 135 3,387 2,086
Consumer 13,256 10,825 9,911
------ ------ -----
Charge-offs liquidating
portfolio 13,391 14,212 11,997
------ ------ ------
Total charge-offs 66,962 52,201 32,155
------ ------ ------
Recoveries continuing portfolio:
Residential mortgages 277 115 24
Commercial 435 230 378
Equipment financing 821 203 287
Asset based lending - - 5
Commercial real estate - - -
Residential development - 9 -
Consumer 642 702 766
--- --- ---
Recoveries continuing portfolio 2,175 1,259 1,460
----- ----- -----
Recoveries liquidating portfolio:
NCLC (c) 62 825 528
Consumer 132 187 67
--- --- ---
Recoveries liquidating portfolio 194 1,012 595
--- ----- ---
Total recoveries 2,369 2,271 2,055
----- ----- -----
Total net charge-offs 64,593 49,930 30,100
------ ------ ------
Change in unfunded commitments 67 (762) -
Ending balance $336,511 $316,037 $281,729
======== ======== ========
Components:
Allowance for loan losses $326,406 $305,999 $270,929
Reserve for unfunded credit
commitments 10,105 10,038 10,800
------ ------ ------
Allowance for credit losses $336,511 $316,037 $281,729
======== ======== ========
For the Three Months Ended
--------------------------
Dec. 31, Sept. 30,
(Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Beginning balance $198,669 $194,368
Provision 100,000 45,500
Charge-offs continuing portfolio:
Residential mortgages 3,778 1,623
Commercial 5,416 6,593
Equipment financing 1,222 998
Asset based lending 176 7,245
Commercial real estate 53 -
Residential development 30,158 161
Consumer 3,887 4,643
----- -----
Charge-offs continuing
portfolio 44,690 21,263
Charge-offs liquidating portfolio:
NCLC (c) 777 14,025
Consumer 8,779 6,767
----- -----
Charge-offs liquidating
portfolio 9,556 20,792
----- ------
Total charge-offs 54,246 42,055
------ ------
Recoveries continuing portfolio:
Residential mortgages 85 5
Commercial 225 89
Equipment financing 177 303
Asset based lending 129 61
Commercial real estate - -
Residential development - -
Consumer 180 256
--- ---
Recoveries continuing portfolio 796 714
--- ---
Recoveries liquidating portfolio:
NCLC (c) 595 151
Consumer 15 (9)
--- ---
Recoveries liquidating portfolio 610 142
--- ---
Total recoveries 1,406 856
----- ---
Total net charge-offs 52,840 41,199
------ ------
Change in unfunded commitments - -
Ending balance $245,829 $198,669
======== ========
Components:
Allowance for loan losses $235,329 $189,169
Reserve for unfunded credit
commitments 10,500 9,500
------ -----
Allowance for credit losses $245,829 $198,669
======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Asset Quality Ratios
-------------------------------------------------------------------------
For the Three Months Ended
---------------------------------------------------
(Dollars in Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
thousands) 2009 2009 2009 2008 2008
-------------------------------------------------------------------------
Total Portfolio
---------------
Allowance for
loan losses /
total loans 2.88% 2.64% 2.24% 1.93% 1.47%
Allowance for
credit losses
/ total loans 2.97 2.72 2.33 2.02 1.54
Net charge-offs /
average loans
(annualized) 2.25 1.66 0.99 1.66 1.29
Nonperforming
loans / total
loans 3.19 3.02 2.61 1.91 1.76
Nonperforming
assets /
total loans
plus OREO 3.47 3.30 2.87 2.15 1.94
Allowance for
credit losses
/ nonperforming
loans 93.20 90.19 89.11 105.70 87.55
Continuing Portfolio
--------------------
Allowance for
loan losses /
total loans 2.43% 2.33% 1.92% 1.61% 1.29%
Allowance for
credit losses
/ total loans 2.52 2.41 2.01 1.70 1.36
Net charge-offs /
average loans
(annualized) 1.83 1.25 0.63 1.41 0.66
Nonperforming
loans / total
loans 3.07 2.86 2.41 1.70 1.61
Nonperforming
assets /
total loans
plus OREO 3.33 3.09 2.62 1.92 1.76
Allowance for
credit losses
/ nonperforming
loans 82.02 84.48 83.52 102.35 86.09
Liquidating Portfolio
---------------------
NCLC (C)
--------
Allowance for
loan losses /
total loans 17.16% 23.00% 30.86% 30.01% 22.85%
Net charge-
offs /
average loans
(annualized) 4.55 101.57 39.76 2.99 126.76
Nonperforming
loans / total
loans 84.35 86.06 93.05 71.53 55.99
Allowance for
loan losses /
nonperforming
loans 20.35 26.72 33.16 41.96 40.8
Consumer
--------
Allowance for
loan losses /
total loans 24.25% 16.19% 15.10% 13.50% 7.45%
Net charge-
offs /
average loans
(annualized) 21.81 16.49 14.26 11.93 8.81
Nonperforming
loans / total
loans 6.70 8.11 7.38 5.97 3.72
Allowance for
loan losses /
nonperforming
loans 361.82 199.73 204.63 225.99 200.5
See Selected Financial Highlights for footnotes.
SOURCE Webster Financial Corporation
Media, Ed Steadham, +1-203-578-2287, esteadham@websterbank.com, or Investor, Terry Mangan, +1-203-578-2318, tmangan@websterbank.com