WATERBURY, Conn., July 16, 2010 /PRNewswire via COMTEX/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced consolidated net income of $17.6 million for the quarter ended June 30, 2010. Net income available to common shareholders after $4.9 million of preferred dividends was $12.7 million, or $.15 per diluted share, for the quarter ended June 30, 2010.
Key points for the quarter:
Core pre-tax, pre-provision earnings were $57.0 million compared to $57.3 million for the first quarter of 2010.
Reduced levels of provision for loan losses and net charge-offs of $32.0 million and $31.8 million, respectively, compared to $43.0 million and $40.3 million in the first quarter.
Non-performing loans declined by 9 percent to $317.3 million compared to $348.8 million at March 31, 2010.
Past due loans declined by 17 percent to $95.4 million compared to $114.9 million at March 31, 2010.
Stable net interest margin of 3.27 percent compared to 3.28 percent for the first quarter.
Core to total deposit ratio of 74 percent, comparable to the first quarter.
Webster Chairman and Chief Executive Officer James C. Smith said, "Webster's performance continues to strengthen as credit trends and earnings have improved. Our results signal clearly that the regional economy is slowly recovering. Loan originations increased 46 percent in the quarter and the pipeline is strong as we fulfill our pledge to help finance the economic recovery. Our service quality ratings are on the rise as measured by J.D. Power, and our extended hours in our branches and Customer Care Center have been positively received by our customers."
Net interest income
- The net interest margin declined by 1 basis point to 3.27 percent in the quarter, reflecting a 4 basis point decline in the cost of funds offset by a 5 basis point decline in the yield on interest-earning assets. The margin also includes a 4 basis point negative impact from accelerated Fannie Mae loan buybacks from mortgage backed securities during the second quarter based on a recently announced policy change. For comparison, the first quarter margin included a 3 basis point negative impact from Freddie Mac buybacks related to a similar policy change.
- Average interest-earning assets totaled $16.6 billion, up from $16.5 billion last quarter.
Provision for loan losses
- $27.5 million of the $32.0 million provision for loan losses recorded in the quarter was related to the Company's continuing portfolios, and $4.5 million was related to the liquidating portfolio.
- Net charge-offs were $31.8 million in the quarter compared to $40.3 million for the quarter ended March 31, 2010; $24.5 million was related to the continuing portfolios compared to $31.4 million and $7.3 million was related to the liquidating portfolio compared to $8.9 million.
"Asset quality continued to improve in the second quarter, reflected by a lower level of non- performing loans, reduced charge-offs and a further decline in delinquency levels," noted Webster Senior Executive Vice President and Chief Financial Officer/Chief Risk Officer Jerry Plush. "As a result, our provision for losses recorded for the quarter was significantly below recent periods. While we remain cautious, if such asset quality trends were to continue in coming quarters, this could bode well for reduced provisioning."
Non-interest income
- Non-interest income includes a net gain on sale of investment securities of $4.4 million compared to a net gain of $4.3 million in the first quarter. Second quarter results also include a $1.2 million credit related other-than-temporary impairment loss on the write-down of investments to fair value compared to a credit related impairment loss of $3.7 million in the first quarter. In addition, second quarter results include a gain of $15.0 million related to the previously announced sale of 594,107 shares in the Higher One initial public offering and the recognition of an unrealized gain on 605,893 Higher One shares still held.
Non-interest expenses
- Non-interest expenses, inclusive of other costs, increased $14.0 million from the first quarter and included a $19.7 million accrual related to a previously announced litigation reserve, an addition of $3.5 million to the reserve for loan repurchases, and $0.9 million of severance expenses. Foreclosed and repossessed asset write-downs of $0.9 million and $2.1 million are also included in non-interest expenses in the respective periods.
Income taxes
- The Company recorded $0.6 million of income tax expense in the quarter on the $18.2 million of pre-tax income applicable to continuing operations in the period. A tax benefit of approximately $6.9 million on the previously announced $19.7 million reserve for litigation established by the Company in the second quarter is reflected in the $0.6 million of income tax expense that was recorded in the quarter and otherwise based on an estimated annual effective tax rate of 19 percent.
Investment securities
- Total investment securities were $5.4 billion at June 30, 2010 compared to $5.3 billion at March 31, 2010. The carrying value of the available for sale portfolio included $28.2 million in net unrealized gains compared to net unrealized losses of $0.8 million at March 31, while the carrying value of the held to maturity portfolio does not reflect $134.3 million in net unrealized gains compared to net unrealized gains of $77.0 million at March 31.
Loans
- Total loans were $10.9 billion at both June 30, 2010 and March 31, 2010. Total originations for the quarter were $579 million compared to $383 million in the first quarter. Originations consisted of $225 million in residential, $199 million in commercial non-mortgage, $51 million in consumer, $53 million in Equipment Finance, $12 million in asset-based lending, and $39 million in commercial mortgage. In the quarter, residential mortgage loans increased by $86.7 million while commercial, commercial real estate and consumer loans declined by $58.7 million, $27.7 million and $40.3 million, respectively. The decline in commercial loans reflects reductions of $41.7 million in equipment finance loans and $16.0 million in asset based loans while core franchise loan balances were essentially flat. The decline in commercial real estate reflects reductions of $14.6 million in residential development and net payoffs in the core portfolio, while the decline in consumer reflects net pay-downs and continued pricing discipline on new production.
- The liquidating portfolio of indirect home equity and national construction loans, included in the consumer and residential loan portfolios, declined by $13.4 million from March 31 to $194.7 million and $2.4 million, respectively.
- National construction loans that have converted to permanent financing and are included in the residential loan portfolio declined by $4.1 million from March 31 to $28.5 million.
Asset quality
- Total non-performing loans were $317.3 million or 2.92 percent of total loans at June 30, 2010 compared to $348.8 million or 3.20 percent at March 31, 2010. The decrease in nonperforming loans reflects a combined decrease of $36.6 million in nonaccrual loans in all loan categories except commercial and commercial real estate, which increased $2.0 million and $3.1 million, respectively. Paying nonperforming loans totaled $105.3 million at June 30 compared to $103.4 million at March 31.
- Past due loans for the continuing portfolios decreased to $86.8 million at June 30 compared to $105.6 million at March 31. Past due loans for the liquidating portfolio decreased to $6.5 million at June 30 compared to $8.6 million at March 31. The decrease in past due loans in the continuing portfolios at June 30 includes two commercial credits, aggregating $14 million, which cured shortly after the end of the first quarter.
Deposits and borrowings
- Total deposits were $13.5 billion at June 30, 2010 compared to $14.0 billion at March 31, 2010. The decline was due to expected outflows of municipal deposits at quarter end from NOW accounts. Increases of $101.7 million in non-interest bearing deposits and $149.3 million in savings accounts were offset by declines of $405.1, $193.7, and $166.2 million in NOW accounts, money market deposit accounts and certificates of deposits, respectively. Non-interest bearing deposits increased to 13 percent of total deposits at June 30 compared to 12 percent at March 31.
- Total borrowings were $2.2 billion at June 30 compared to $2.0 billion at March 31. The increase consisted entirely of short term funding at quarter end to offset net outflows of municipal deposits. Borrowings represented 12 percent of total assets at June 30 and 11 percent at March 31.
Capital
The tangible common equity and Tier 1 common equity to risk weighted assets ratios increased to 5.79 percent and 8.12 percent, respectively, compared to 5.53 percent and 7.90 percent at March 31, 2010.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.7 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 500 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, and the equipment finance firm, Webster Capital Finance, 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 Webster's website at www.websterbank.com.
Conference Call
A conference call covering Webster's second quarter earnings announcement will be held today, Friday, July 16, at 9:00 a.m. EDT and may be heard through Webster's investor relations website at http://www.websteronline.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 release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements can be identified by words such as "believes", "anticipates", "expects", "intends", "targeted", "continue", "remain", "will", "should", "may", "plans", "estimates" and similar references to future periods, however such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Webster's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Webster's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national and international economic conditions; (2) government intervention in the U.S. financial system; (3) changes in the level of non-performing assets and charge-offs; (4) inflation, interest rate, securities market and monetary fluctuations, and management's estimates and projections of such fluctuations; (5) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (6) changes in management's estimate of the adequacy of the allowance for loan losses; (7) the risks associated with the continued diversification of assets and adverse changes to credit quality; (8) technological changes; (9) the Company's ability to increase market share and control expenses; (10) changes in laws, regulations and policies (including tax, banking, securities and insurance laws, regulations and policies); (11) changes in applicable accounting policies and practice; (12) legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (13) the Company's success at managing the risks involved in the foregoing items; and (14) the other factors that are described in the Company's Annual Report on Form 10-K under the heading "Risk Factors." Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
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.
Media Contact Investor Contact
Ed Steadham 203-578-2287 Terry Mangan 203-578-2318
esteadham@websterbank.com tmangan@websterbank.com
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
-----------------------------------------
At or for the Three
Months Ended June 30,
(In thousands, except per share data) 2010 2009
------------------------------------- ---- ----
Net income (loss) and performance
ratios (annualized):
---------------------------------
Net income (loss) attributable to
Webster Financial Corporation $17,638 $(31,562)
Net income (loss) available to common
shareholders 12,730 16,799
Net income (loss) per diluted common
share 0.15 (0.65)
Return on average shareholders'
equity 3.81% (6.81)%
Return on average tangible equity 5.40 (9.68)
Return on average assets 0.39 (0.72)
Income (loss) and performance ratios,
(annualized), attributable to
Webster Financial Corporation from
continuing operations:
-------------------------------------
Income (loss) from continuing
operations $17,638 $(31,875)
Net income (loss) available to common
shareholders 12,730 16,486
Net income (loss) from continuing
operations per diluted common share 0.15 (0.66)
Return on average shareholders'
equity 3.81% (6.88)%
Return on average tangible equity 5.40 (9.78)
Return on average assets 0.39 (0.73)
Noninterest income as a percentage of
total revenue 33.11 22.87
Efficiency ratio (a) 65.67 66.40
Asset quality:
--------------
Allowance for loan losses $344,087 $305,999
Non-performing assets 349,203 384,203
Allowance for loan losses /total
loans 3.17% 2.64%
Net charge-offs /average loans
(annualized) 1.17 1.66
Non-performing loans / total loans 2.92 3.02
Non-performing assets /total loans
plus OREO 3.21 3.30
Allowance for loan losses /non-
performing loans 108.44 87.33
Other ratios (annualized):
--------------------------
Tangible capital ratio 7.68% 7.58%
Tangible common equity ratio 5.79 4.92
Tier 1 risk-based capital ratio (d) 12.85 11.83
Total-risk based capital (d) 14.72 13.93
Tier 1 common equity /risk weighted
assets (d) 8.12 6.50
Shareholders' equity / total assets 10.56 10.55
Interest-rate spread 3.22 2.96
Net interest margin 3.27 3.04
Share and equity related:
-------------------------
Common equity $1,549,620 $1,392,820
Book value per common share 19.75 21.73
Tangible book value per common share 12.79 13.15
Common stock closing price 17.94 8.05
Dividends declared per common share 0.01 0.01
Common shares issued and outstanding 78,478 64,098
Basic shares (average) 78,004 53,398
Diluted shares (average) 82,721 58,486
At or for the Six
Months Ended June 30,
(In thousands, except per share data) 2010 2009
------------------------------------- ---- ----
Net income (loss) and performance
ratios (annualized):
---------------------------------
Net income (loss) attributable to
Webster Financial Corporation $19,059 $(42,686)
Net income (loss) available to common
shareholders 6,661 (4,754)
Net income (loss) per diluted common
share 0.08 (0.96)
Return on average shareholders'
equity 2.02% (4.60)%
Return on average tangible equity 2.85 (6.54)
Return on average assets 0.21 (0.49)
Income (loss) and performance ratios,
(annualized), attributable to
Webster Financial Corporation from
continuing operations:
-------------------------------------
Income (loss) from continuing
operations $19,059 $(42,999)
Net income (loss) available to common
shareholders 6,661 (5,067)
Net income (loss) from continuing
operations per diluted common share 0.08 (0.97)
Return on average shareholders'
equity 2.02% (4.63)%
Return on average tangible equity 2.85 (6.59)
Return on average assets 0.21 (0.49)
Noninterest income as a percentage of
total revenue 29.91 27.37
Efficiency ratio (a) 65.21 66.91
Asset quality:
--------------
Allowance for loan losses $344,087 $305,999
Non-performing assets 349,203 384,203
Allowance for loan losses /total
loans 3.17% 2.64%
Net charge-offs /average loans
(annualized) 1.32 1.33
Non-performing loans / total loans 2.92 3.02
Non-performing assets /total loans
plus OREO 3.21 3.30
Allowance for loan losses /non-
performing loans 108.44 87.33
Other ratios (annualized):
--------------------------
Tangible capital ratio 7.68% 7.58%
Tangible common equity ratio 5.79 4.92
Tier 1 risk-based capital ratio (d) 12.85 11.83
Total-risk based capital (d) 14.72 13.93
Tier 1 common equity /risk weighted
assets (d) 8.12 6.50
Shareholders' equity / total assets 10.56 10.55
Interest-rate spread 3.22 2.93
Net interest margin 3.27 3.01
Share and equity related:
-------------------------
Common equity $1,549,620 $1,392,820
Book value per common share 19.75 21.73
Tangible book value per common share 12.79 13.15
Common stock closing price 17.94 8.05
Dividends declared per common share 0.02 0.02
Common shares issued and outstanding 78,478 64,098
Basic shares (average) 77,972 52,478
Diluted shares (average) 82,090 58,344
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 2010 reporting periods
and actual for the 2009 reporting periods.
WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
----------------------------------------
June 30, March 31, June 30,
(In thousands) 2010 2010 2009
-------------- ---- ---- ----
Assets:
Cash and due from banks $179,490 $158,065 $254,638
Short-term investments 40,041 162,193 8,216
Investment securities:
8,785 - -
Trading, at fair value
2,206,362 2,365,956 1,405,872
Available for sale, at fair value
3,136,605 2,915,923 2,767,965
Held-to-maturity --------- --------- ---------
5,351,752 5,281,879 4,173,837
Total securities
Loans held for sale 11,109 29,790 113,936
Loans:
Commercial 2,831,637 2,890,353 3,333,610
Commercial real estate 2,126,853 2,154,534 2,235,776
Residential mortgages 2,980,984 2,894,291 2,881,955
Consumer 2,917,086 2,957,342 3,159,361
--------- --------- ---------
10,856,560 10,896,520 11,610,702
Total loans
Allowance for loan losses (344,087) (343,871) (305,999)
-------- -------- --------
10,512,473 10,552,649 11,304,703
Loans, net
Prepaid FDIC premiums 68,257 73,752 -
Federal Home Loan Bank and
Federal Reserve Bank
stock 143,874 140,874 137,874
Premises and equipment, net 164,865 171,178 179,625
Goodwill and other
intangible assets, net 553,958 555,355 561,013
Cash surrender value of
life insurance policies 293,387 290,786 285,064
Deferred tax asset, net 101,855 121,010 153,745
Accrued interest receivable
and other assets 322,087 487,184 279,925
------- ------- -------
Total Assets $17,743,148 $18,024,715 $17,452,576
=========== =========== ===========
Liabilities and Equity:
Deposits:
Non-interest bearing
deposits $1,763,819 $1,662,122 $1,595,390
NOW accounts 2,504,659 2,909,737 2,591,108
Money market deposit
accounts 2,190,611 2,384,297 1,618,910
Savings accounts 3,521,547 3,372,260 2,778,970
Certificates of deposit 3,447,534 3,613,735 4,422,033
Brokered deposits 51,375 51,375 168,171
13,479,545 13,993,526 13,174,582
Total deposits
Securities sold under
agreements to repurchase
and other short-term
debt 960,197 849,876 1,015,099
Federal Home Loan Bank
advances 629,828 574,378 663,123
Long-term debt 586,617 588,540 590,520
Accrued expenses and other
liabilities 203,222 162,678 158,102
------- ------- -------
15,859,409 16,168,998 15,601,426
Total liabilities
Webster Financial
Corporation shareholders'
equity 1,874,091 1,846,076 1,841,518
Non controlling interests 9,648 9,641 9,632
----- ----- -----
1,883,739 1,855,717 1,851,150
Total equity --------- --------- ---------
Total Liabilities and
Equity $17,743,148 $18,024,715 $17,452,576
=========== =========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Operations (unaudited)
-------------------------------------------------
Three Months Ended
June 30,
--------
(In thousands, except per share data) 2010 2009
------------------------------------- ---- ----
Interest income:
Interest and fees on loans and leases $122,447 $137,533
Investment securities 55,443 48,799
Loans held for sale 144 833
Total interest income 178,034 187,165
------- -------
Interest expense:
Deposits 30,482 49,982
Borrowings 15,210 17,895
Total interest expense 45,692 67,877
------ ------
Net interest income 132,342 119,288
Provision for loan losses 32,000 85,000
Net interest income after provision for
loan losses 100,342 34,288
------- ------
Non-interest income:
Deposit service fees 29,345 29,984
Loan related fees 7,225 6,350
Wealth and investment services 6,218 6,081
Mortgage banking activities 427 3,433
Increase in cash surrender value of life
insurance policies 2,612 2,665
Net gain (loss) on sale of investment
securities 4,364 (13,593)
Other income 1,501 1,325
-----
51,692 36,245
Higher One -gain on sale and MTM
adjustment 15,016 -
Loss on write-down of investment
securities to fair value (1,188) (27,110)
Gain on the exchange of trust preferreds
for common stock - 24,336
Gain on early extinguishment of
subordinated notes - -
Visa share transactions - 1,907
Total non-interest income 65,520 35,378
------ ------
Non-interest expenses:
Compensation and benefits 60,584 59,189
Occupancy 13,546 13,594
Technology and equipment expense 15,657 15,288
Marketing 5,226 3,196
Professional and outside services 3,566 3,394
Intangible assets amortization 1,397 1,450
Foreclosed and repossessed asset expenses 1,009 1,799
Foreclosed and repossessed asset write-
downs 891 2,829
Deposit insurance 7,161 5,959
Other expenses 14,578 14,066
------
123,615 120,764
Provision for litigation reserve 19,676 -
Provision for loan repurchases 3,500 -
Other, including fraud related costs 876 1,313
FDIC special assessment - 8,000
Total non-interest expenses 147,667 130,077
------- -------
Income (loss) from continuing operations
before income taxes 18,195 (60,411)
Income tax expense (benefit) 550 (28,536)
---
Income (loss) from continuing operations 17,645 (31,875)
Income from discontinued operations, net
of tax - 313
--- ---
Consolidated net income (loss) 17,645 (31,562)
Less: Net income attributable to
noncontrolling interests 7
---
Net income (loss) attributable to Webster
Financial Corp. 17,638 (31,562)
Preferred stock dividends, accretion and
extinguishment gain (4,908) 48,361
------
Net income (loss) available to common
shareholders $12,730 $16,799
======= =======
Diluted shares (average) 82,721 58,486
Net income (loss) per common share
available to common shareholders:
Basic
Income (loss) from continuing operations $0.16 $0.30
Net income (loss) 0.16 0.31
Diluted
Income (loss) from continuing operations 0.15 (0.66)
Net income (loss) 0.15 (0.65)
See Selected Financial Highlights for
footnotes.
Six Months Ended
June 30,
--------
(In thousands, except per share data) 2010 2009
------------------------------------- ---- ----
Interest income:
Interest and fees on loans and leases $245,797 $278,300
Investment securities 109,599 99,626
Loans held for sale 458 997
Total interest income 355,854 378,923
------- -------
Interest expense:
Deposits 62,433 102,890
Borrowings 29,695 38,548
Total interest expense 92,128 141,438
------ -------
Net interest income 263,726 237,485
Provision for loan losses 75,000 151,000
Net interest income after provision for
loan losses 188,726 86,485
------- ------
Non-interest income:
Deposit service fees 57,129 57,943
Loan related fees 13,230 12,832
Wealth and investment services 12,053 11,831
Mortgage banking activities 289 4,039
Increase in cash surrender value of life
insurance policies 5,190 5,257
Net gain (loss) on sale of investment
securities 8,682 (9,135)
Other income 5,815 1,600
102,388 84,367
Higher One -gain on sale and MTM
adjustment 15,016 -
Loss on write-down of investment
securities to fair value (4,868) (27,110)
Gain on the exchange of trust preferreds
for common stock - 24,336
Gain on early extinguishment of
subordinated notes - 5,993
Visa share transactions - 1,907
Total non-interest income 112,536 89,493
------- ------
Non-interest expenses:
Compensation and benefits 121,663 115,658
Occupancy 27,986 27,889
Technology and equipment expense 30,925 30,428
Marketing 10,017 6,302
Professional and outside services 6,168 7,178
Intangible assets amortization 2,794 2,913
Foreclosed and repossessed asset expenses 2,701 2,978
Foreclosed and repossessed asset write-
downs 2,952 6,279
Deposit insurance 13,246 10,549
Other expenses 27,724 28,366
------
246,176 238,540
Provision for litigation reserve 19,676 -
Provision for loan repurchases 3,500 -
Other, including fraud related costs 11,939 1,553
FDIC special assessment - 8,000
Total non-interest expenses 281,291 248,093
------- -------
Income (loss) from continuing operations
before income taxes 19,971 (72,115)
Income tax expense (benefit) 905 (29,129)
---
Income (loss) from continuing operations 19,066 (42,986)
Income from discontinued operations, net
of tax - 313
--- ---
Consolidated net income (loss) 19,066 (42,673)
Less: Net income attributable to
noncontrolling interests 7 13
--- ---
Net income (loss) attributable to Webster
Financial Corp. 19,059 (42,686)
Preferred stock dividends, accretion and
extinguishment gain (12,398) 37,932
-------
Net income (loss) available to common
shareholders $6,661 $(4,754)
====== =======
Diluted shares (average) 82,090 58,344
Net income (loss) per common share
available to common shareholders:
Basic
Income (loss) from continuing operations $0.08 $(0.10)
Net income (loss) 0.08 (0.09)
Diluted
Income (loss) from continuing operations 0.08 (0.97)
Net income (loss) 0.08 (0.96)
See Selected Financial Highlights for
footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Operations
(unaudited)
--------------------------------------------------
Three Months Ended
------------------
March
June 30, 31, Dec. 31,
(In thousands, except per share
data) 2010 2010 2009
------------------------------- ---- ---- ----
Interest income:
Interest and fees on loans and
leases $122,447 $123,350 $127,069
Investment securities 55,443 54,156 54,029
Loans held for sale 144 314 364
Total interest income 178,034 177,820 181,462
------- ------- -------
Interest expense:
Deposits 30,482 31,951 35,937
Borrowings 15,210 14,485 15,044
Total interest expense 45,692 46,436 50,981
------ ------ ------
Net interest income 132,342 131,384 130,481
Provision for loan losses 32,000 43,000 67,000
Net interest income after
provision for loan losses 100,342 88,384 63,481
------- ------ ------
Non-interest income:
Deposit service fees 29,345 27,784 30,634
Loan related fees 7,225 6,005 6,501
Wealth and investment services 6,218 5,835 6,009
Mortgage banking activities 427 (138) 1,456
Increase in cash surrender
value of life insurance
policies 2,612 2,578 2,680
Net gain (loss) on sale of
investment securities 4,364 4,318 54
Other income 1,501 4,314 2,648
51,692 50,696 49,982
Higher One -gain on sale and
MTM adjustment 15,016 - -
Loss on write-down of
investment securities to fair
value (1,188) (3,680) (77)
Gain on the exchange of trust
preferreds for common stock - - -
Warrants -fair value
adjustment - - 3,552
Visa share transactions - - -
Total non-interest income 65,520 47,016 53,457
------ ------ ------
Non-interest expenses:
Compensation and benefits 60,584 61,079 61,644
Occupancy 13,546 14,440 14,061
Technology and equipment
expense 15,657 15,268 15,299
Marketing 5,226 4,791 4,365
Professional and outside
services 3,566 2,602 4,209
Intangible assets amortization 1,397 1,397 1,408
Foreclosed and repossessed
asset expenses 1,009 1,692 2,349
Foreclosed and repossessed
asset write-downs 891 2,061 2,588
Deposit insurance 7,161 6,085 5,565
Other expenses 14,578 13,146 14,192
123,615 122,561 125,680
Provision for litigation award 19,676 - -
Provision for loan repurchases 3,500 - -
Other, including fraud related
costs 876 11,063 6,533
FDIC special assessment - - -
Total non-interest expenses 147,667 133,624 132,213
------- ------- -------
Income (loss) from continuing
operations before income taxes 18,195 1,776 (15,275)
Income tax expense (benefit) 550 355 (1,593)
--- --- ------
Income (loss) from continuing
operations 17,645 1,421 (13,682)
Income (loss) from discontinued
operations, net of tax - - (11)
------------------------------- --- --- ---
Consolidated net income (loss) 17,645 1,421 (13,693)
Less: Net income attributable
to noncontrolling interests 7 - 1
--- --- ---
Net income (loss) attributable
to Webster Financial Corp. 17,638 1,421 (13,694)
Preferred stock dividends,
accretion and extinguishment
gain (4,908) (7,490) (40,700)
Net income (loss) available to
common shareholders $12,730 $(6,069) $(54,394)
------- ------- --------
Diluted shares (average) 82,721 77,922 72,747
Net income (loss) per common share available to
common shareholders:
Basic
Income (loss) from continuing
operations $0.16 $(0.08) $(0.76)
Net income (loss) 0.16 (0.08) (0.76)
Diluted
Income (loss) from continuing
operations 0.15 (0.08) (0.84)
Net income (loss) 0.15 (0.08) (0.84)
See Selected Financial Highlights for
footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Operations
(unaudited)
--------------------------------------------------
Three Months Ended
------------------
Sept.
30, June 30,
(In thousands, except per share data) 2009 2009
------------------------------------- ---- ----
Interest income:
Interest and fees on loans and leases $131,266 $137,533
Investment securities 52,975 48,799
Loans held for sale 716 833
Total interest income 184,957 187,165
------- -------
Interest expense:
Deposits 41,977 49,982
Borrowings 16,308 17,895
Total interest expense 58,285 67,877
------ ------
Net interest income 126,672 119,288
Provision for loan losses 85,000 85,000
------ ------
Net interest income after provision
for loan losses 41,672 34,288
------ ------
Non-interest income:
Deposit service fees 30,844 29,984
Loan related fees 5,557 6,350
Wealth and investment services 6,160 6,081
Mortgage banking activities 1,406 3,433
Increase in cash surrender value of
life insurance policies 2,692 2,665
Net gain (loss) on sale of investment
securities (4,728) (13,593)
Other income 3,517 1,325
45,448 36,245
Higher One -gain on sale and MTM
adjustment - -
Loss on write-down of investment
securities to fair value (1,290) (27,110)
Gain on the exchange of trust
preferreds for common stock - 24,336
Warrants - fair value adjustment - -
Visa share transactions - 1,907
Total non-interest income 44,158 35,378
------ ------
Non-interest expenses:
Compensation and benefits 59,772 59,189
Occupancy 13,572 13,594
Technology and equipment expense 15,199 15,288
Marketing 3,802 3,196
Professional and outside services 3,628 3,394
Intangible assets amortization 1,421 1,450
Foreclosed and repossessed asset
expenses 1,733 1,799
Foreclosed and repossessed asset
write-downs 2,232 2,829
Deposit insurance 5,942 5,959
Other expenses 15,616 14,066
122,917 120,764
Provision for litigation award - -
Provision for loan repurchases - -
Other, including fraud related costs 4,169 1,313
FDIC special assessment - 8,000
Total non-interest expenses 127,086 130,077
------- -------
Income (loss) from continuing
operations before income taxes (41,256) (60,411)
Income tax expense (benefit) (22,014) (28,536)
------- -------
Income (loss) from continuing
operations (19,242) (31,875)
Income (loss) from discontinued
operations, net of tax - 313
-------------------------------
Consolidated net income (loss) (19,242) (31,562)
Less: Net income attributable to
noncontrolling interests 8 -
--- ---
Net income (loss) attributable to
Webster Financial Corp. (19,250) (31,562)
Preferred stock dividends, accretion
and extinguishment gain (6,850) 48,361
Net income (loss) available to common
shareholders $(26,100) $16,799
-------- -------
Diluted shares (average) 66,281 58,486
Net income (loss) per common share available to
common shareholders:
Basic
Income (loss) from continuing
operations $(0.39) $0.30
Net income (loss) (0.39) 0.31
Diluted
Income (loss) from continuing
operations (0.39) (0.66)
Net income (loss) (0.39) (0.65)
See Selected Financial Highlights for
footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Interest-Rate Spreads and Margin (unaudited)
Three Months Ended
June March December
30, 31, 31,
2010 2010 2009
Interest-rate spread
--------------------
Yield on interest-
earning assets 4.37% 4.42% 4.50%
Cost of interest-
bearing liabilities 1.15 1.19 1.30
---- ---- ----
Interest-rate spread 3.22% 3.23% 3.20%
==== ==== ====
Net interest margin 3.27% 3.28% 3.26%
==== ==== ====
Three Months Ended
September June
30, 30,
2009 2009
Interest-rate spread
--------------------
Yield on interest-
earning assets 4.60% 4.72%
Cost of interest-
bearing liabilities 1.48 1.76
---- ----
Interest-rate spread 3.12% 2.96%
==== ====
Net interest margin 3.18% 3.04%
==== ====
Consolidated Average Balances, Yields and Rates Paid (unaudited)
Three Months Ended June 30, 2010 2009
(Dollars in thousands) Average Interest Fully tax-
balance equivalent
yield/rate
Assets:
Interest-earning assets:
Loans $10,877,997 $122,447 4.49%
Investment securities (b) 5,374,567 58,126 4.33
Loans held for sale 12,761 144 4.51
Federal Home Loan and Federal
Reserve Bank stock 142,918 746 2.09
Short-term investments 185,364 121 0.26
------- --- ----
Total interest-earning assets 16,593,607 181,584 4.37
------- ----
Noninterest-earning assets 1,382,519
---------
Total assets $17,976,126
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,715,043 $- - %
Savings, NOW and money market
deposits 8,657,141 13,203 0.61
Certificates of deposit 3,628,750 17,279 1.91
--------- ------ ----
Total deposits 14,000,934 30,482 0.87
---------- ------ ----
Securities sold under agreements
to repurchase
and other short-term debt 785,028 4,122 2.08
Federal Home Loan Bank advances 576,880 4,746 3.25
Long-term debt 587,702 6,342 4.32
------- ----- ----
Total borrowings 1,949,610 15,210 3.10
--------- ------ ----
Total interest-bearing
liabilities 15,950,544 45,692 1.15
------ ----
Noninterest-bearing liabilities 163,744
-------
Total liabilities 16,114,288
Noncontrolling interests 9,639
Webster Financial Corp.
shareholders' equity 1,852,199
---------
Total liabilities and equity $17,976,126
===========
Tax-equivalent net interest
income 135,892
Less: tax-equivalent adjustment (3,550)
------
Net interest income $132,342
========
Interest-rate spread 3.22%
====
Net interest margin 3.27%
====
Three Months Ended June 30, 2009
Fully
(Dollars in thousands) Average Interest tax-
balance equivalent
yield/
rate
Assets:
Interest-earning assets:
Loans $12,003,362 $137,533 4.57%
Investment securities (b) 3,804,936 51,689 5.32
Loans held for sale 77,787 833 4.28
Federal Home Loan and Federal
Reserve Bank stock 137,841 670 1.95
Short-term investments 12,124 43 1.39
------ --- ----
Total interest-earning assets 16,036,050 190,768 4.72
------- ----
Noninterest-earning assets 1,443,322
---------
Total assets $17,479,372
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,567,026 $- - %
Savings, NOW and money market
deposits 6,745,909 15,229 0.91
Certificates of deposit 4,778,929 34,753 2.92
--------- ------ ----
Total deposits 13,091,864 49,982 1.53
---------- ------ ----
Securities sold under agreements
to repurchase
and other short-term debt 1,031,671 4,554 1.75
Federal Home Loan Bank advances 666,604 6,459 3.83
Long-term debt 653,712 6,882 4.21
------- ----- ----
Total borrowings 2,351,987 17,895 3.02
--------- ------ ----
Total interest-bearing
liabilities 15,443,851 67,877 1.76
------ ----
Noninterest-bearing liabilities 171,611
-------
Total liabilities 15,615,462
Noncontrolling interests 9,630
Webster Financial Corp.
shareholders' equity 1,854,280
---------
Total liabilities and equity $17,479,372
===========
Tax-equivalent net interest
income 122,891
Less: tax-equivalent adjustment (3,603)
------
Net interest income $119,288
========
Interest-rate spread 2.96%
====
Net interest margin 3.04%
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields and Rates Paid (unaudited)
------------------------------------------------------------------
Six Months Ended June 30, 2010
------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $10,927,030 $245,797 4.50%
Investment securities (b) 5,221,609 114,962 4.41
Loans held for sale 20,063 458 4.57
Federal Home Loan and Federal
Reserve Bank stock 141,902 1,462 2.08
Short-term investments 217,732 283 0.26
-------
Total interest-earning assets 16,528,336 362,962 4.39
------- ----
Noninterest-earning assets 1,390,512
Total assets $17,918,848
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,678,551 $- - %
Savings, NOW and money market
deposits 8,512,228 27,081 0.64
Certificates of deposit 3,705,533 35,352 1.92
Total deposits 13,896,312 62,433 0.91
---------- ------ ----
Securities sold under
agreements to repurchase
and other short-term debt 806,501 8,124 2.00
Federal Home Loan Bank
advances 576,778 9,165 3.16
Long-term debt 588,248 12,406 4.22
Total borrowings 1,971,527 29,695 3.00
--------- ------
Total interest-bearing
liabilities 15,867,839 92,128 1.17
------ ----
Noninterest-bearing
liabilities 157,132
-------
Total liabilities 16,024,971
Noncontrolling interests 9,640
Webster Financial Corporation
shareholders' equity 1,884,237
Total liabilities and equity $17,918,848
===========
270,834
Less: tax-equivalent
adjustment (7,108)
------
Net interest income $263,726
========
Interest-rate spread 3.22%
====
Net interest margin 3.27%
====
Six Months Ended June 30, 2009
------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $12,076,781 $278,300 4.61
Investment securities (b) 3,808,227 105,575 5.40
Loans held for sale 49,259 997 4.05
Federal Home Loan and Federal
Reserve Bank stock 136,366 1,296 1.92
Short-term investments 16,114 74 0.92
------ --- ----
Total interest-earning assets 16,086,747 386,242 4.77
------- ----
Noninterest-earning assets 1,454,622
Total assets $17,541,369
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Demand deposits $1,537,297 $- -
Savings, NOW and money market
deposits 6,346,814 30,940 0.98
Certificates of deposit 4,808,525 71,950 3.02
--------- ------ ----
Total deposits 12,692,636 102,890 1.63
---------- ------- ----
Securities sold under agreements to
repurchase
and other short-term debt 1,361,792 10,355 1.51
Federal Home Loan Bank advances 767,923 13,513 3.50
Long-term debt 667,465 14,680 4.40
------- ------ ----
Total borrowings 2,797,180 38,548 2.75
--------- ------ ----
Total interest-bearing liabilities 15,489,816 141,438 1.84
------- ----
Noninterest-bearing liabilities 185,515
-------
Total liabilities 15,675,331
Noncontrolling interests 9,625
Webster Financial Corporation
shareholders' equity 1,856,413
Total liabilities and equity $17,541,369
===========
244,804
Less: tax-equivalent adjustment (7,319)
------
Net interest income $237,485
========
Interest-rate spread 2.93
====
Net interest margin 3.01
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Loan Balances (unaudited)
June 30, March 31, Dec. 31,
(Dollars in thousands) 2010 2010 2009
---------------------- ---- ---- ----
Loan Balances (actuals):
Continuing Portfolio:
Commercial $1,538,924 $1,539,975 $1,505,956
Equipment financing 804,871 846,562 897,802
Asset based lending 487,842 503,816 526,481
Commercial real estate 2,044,264 2,057,361 2,067,862
Residential development 82,589 97,173 114,258
Residential mortgages 2,978,601 2,890,982 2,898,820
Consumer 2,722,348 2,750,084 2,801,588
--------- --------- ---------
Total continuing 10,659,439 10,685,953 10,812,767
Allowance for loan losses (294,187) (291,171) (287,784)
Total continuing, net 10,365,252 10,394,782 10,524,983
---------- ---------- ----------
Liquidating Portfolio:
NCLC (c) 2,383 3,309 4,817
Consumer 194,738 207,258 219,125
------- ------- -------
Total liquidating
portfolio 197,121 210,567 223,942
Allowance for loan losses (49,900) (52,700) (53,400)
Total liquidating, net 147,221 157,867 170,542
------- ------- -------
Total Loan Balances
(actuals) 10,856,560 10,896,520 11,036,709
Allowance for loan losses (344,087) (343,871) (341,184)
Loans, (net) $10,512,473 $10,552,649 $10,695,525
=========== =========== ===========
Loan Balances (average):
Continuing Portfolio:
Commercial $1,542,994 $1,520,157 $1,548,470
Equipment finance 825,581 871,972 930,050
Asset based lending 497,673 523,938 577,330
Commercial real estate 2,049,162 2,062,769 2,075,754
Residential development 88,866 107,343 125,320
Residential mortgages 2,932,305 2,892,797 2,860,204
Consumer 2,737,076 2,780,063 2,834,923
--------- --------- ---------
Total continuing 10,673,657 10,759,039 10,952,051
Allowance for loan losses (294,079) (291,281) (277,870)
Total continuing, net 10,379,578 10,467,758 10,674,181
---------- ---------- ----------
Liquidating Portfolio:
NCLC (c) 2,574 4,558 5,661
Consumer 201,766 213,013 224,351
------- ------- -------
Total liquidating
portfolio 204,340 217,571 230,012
Allowance for loan losses (49,900) (52,700) (53,400)
Total liquidating, net 154,440 164,871 176,612
------- ------- -------
Total Loan Balances
(average) 10,877,997 10,976,610 11,182,063
Allowance for loan losses (343,979) (343,981) (331,270)
Loans, (net) $10,534,018 $10,632,629 $10,850,793
=========== =========== ===========
Sept. 30, June 30,
(Dollars in thousands) 2009 2009
---------------------- ---- ----
Loan Balances (actuals):
Continuing Portfolio:
Commercial $1,619,284 $1,711,995
Equipment financing 951,500 998,258
Asset based lending 598,641 623,357
Commercial real estate 2,086,298 2,091,811
Residential development 128,643 143,965
Residential mortgages 2,837,240 2,875,415
Consumer 2,863,622 2,910,275
--------- ---------
Total continuing 11,085,228 11,355,076
Allowance for loan losses (269,306) (264,159)
Total continuing, net 10,815,922 11,090,917
---------- ----------
Liquidating Portfolio:
NCLC (c) 5,826 6,540
Consumer 231,305 249,086
------- -------
Total liquidating
portfolio 237,131 255,626
Allowance for loan losses (57,100) (41,840)
Total liquidating, net 180,031 213,786
------- -------
Total Loan Balances
(actuals) 11,322,359 11,610,702
Allowance for loan losses (326,406) (305,999)
Loans, (net) $10,995,953 $11,304,703
=========== ===========
Loan Balances (average):
Continuing Portfolio:
Commercial $1,675,289 $1,750,996
Equipment finance 975,552 1,011,999
Asset based lending 622,472 652,197
Commercial real estate 2,089,643 2,090,615
Residential development 139,040 150,674
Residential mortgages 2,831,440 3,127,099
Consumer 2,884,543 2,951,691
--------- ---------
Total continuing 11,217,979 11,735,271
Allowance for loan losses (260,472) (248,701)
Total continuing, net 10,957,507 11,486,570
---------- ----------
Liquidating Portfolio:
NCLC (c) 6,414 10,090
Consumer 240,675 258,001
------- -------
Total liquidating
portfolio 247,089 268,091
Allowance for loan losses (57,100) (41,840)
Total liquidating, net 189,989 226,251
------- -------
Total Loan Balances
(average) 11,465,068 12,003,362
Allowance for loan losses (317,572) (290,541)
Loans, (net) $11,147,496 $11,712,821
=========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Non-performing Assets (unaudited)
March
June 30, 31, Dec. 31,
(Dollars in thousands) 2010 2010 2009
---------------------- ---- ---- ----
Non-performing loans:
Continuing Portfolio:
Commercial $48,533 $46,486 $56,632
Equipment financing 28,271 32,985 30,152
Asset based lending 21,903 28,647 13,982
Commercial real estate 53,826 50,711 56,144
Residential development 26,941 34,651 47,264
Residential mortgages 60,512 70,908 70,311
Performing non-accrual residential
mortgages 33,112 34,699 39,256
Consumer 23,290 27,832 31,299
Performing non-accrual consumer 8,348 5,735 7,456
----- ----- -----
Nonperforming loans -continuing
portfolio 304,736 332,654 352,496
------- ------- -------
Liquidating Portfolio:
NCLC (c) 1,557 2,483 3,408
Performing non-accrual NCLC 825 825 825
Consumer 8,549 10,895 13,915
Performing non-accrual consumer 1,644 1,990 2,333
----- ----- -----
Nonperforming loans -liquidating
portfolio 12,575 16,193 20,481
------ ------ ------
Total non-performing loans $317,311 $348,847 $372,977
-------- -------- --------
Other real estate owned and
repossessed assets:
Continuing Portfolio:
Commercial $14,918 $13,464 $11,621
Equipment financing 4,757 6,654 6,522
Asset based lending - - -
Commercial real estate - - -
Residential development - - -
Residential mortgages 4,309 4,461 4,131
Consumer 4,542 4,025 5,017
----- ----- -----
Total continuing 28,526 28,604 27,291
------ ------ ------
Liquidating Portfolio:
NCLC (c) 2,939 1,744 1,401
Consumer 427 126 296
--- --- ---
Total liquidating 3,366 1,870 1,697
----------------- ----- ----- -----
Total other real estate owned and
repossessed assets $31,892 $30,474 $28,988
------- ------- -------
Total non-performing assets $349,203 $379,321 $401,965
======== ======== ========
Sept.
30, June 30,
(Dollars in thousands) 2009 2009
---------------------- ---- ----
Non-performing loans:
Continuing Portfolio:
Commercial $61,746 $68,979
Equipment financing 31,784 35,675
Asset based lending 5,064 24,456
Commercial real estate 47,644 16,707
Residential development 44,821 46,808
Residential mortgages 66,180 59,775
Performing non-accrual residential
mortgages 43,581 33,822
Consumer 33,837 33,816
Performing non-accrual consumer 6,000 4,534
----- -----
Nonperforming loans -continuing
portfolio 340,657 324,572
------- -------
Liquidating Portfolio:
NCLC (c) 4,089 5,628
Performing non-accrual NCLC 825 -
Consumer 14,030 19,521
Performing non-accrual consumer 1,475 674
----- ---
Nonperforming loans -liquidating
portfolio 20,419 25,823
------ ------
Total non-performing loans $361,076 $350,395
-------- --------
Other real estate owned and
repossessed assets:
Continuing Portfolio:
Commercial $13,225 $9,340
Equipment financing 8,479 10,322
Asset based lending - -
Commercial real estate - -
Residential development - -
Residential mortgages 2,872 1,808
Consumer 4,833 5,571
----- -----
Total continuing 29,409 27,041
------ ------
Liquidating Portfolio:
NCLC (c) 3,108 5,836
Consumer - 931
--- ---
Total liquidating 3,108 6,767
----------------- ----- -----
Total other real estate owned and
repossessed assets $32,517 $33,808
------- -------
Total non-performing assets $393,593 $384,203
======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
June March Sept.
30, 31, Dec. 31, 30, June 30,
(Dollars in thousands) 2010 2010 2009 2009 2009
---------------------- ---- ---- ---- ---- ----
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Commercial $11,295 $17,124 $7,871 $9,735 $8,460
Equipment financing 8,818 11,030 10,642 10,407 13,464
Asset based lending - - - - -
Commercial real estate 11,069 16,950 8,183 23,872 19,053
Residential development 200 2,528 551 776 3,210
Residential mortgages 28,015 30,843 36,086 38,927 39,955
Consumer 27,378 27,099 27,214 31,178 28,354
------ ------ ------ ------ ------
Past Due 30-89 days -
continuing portfolio 86,775 105,574 90,547 114,895 112,496
------ ------- ------ ------- -------
Liquidating Portfolio:
NCLC (c) - - 582 910 1
Consumer 6,496 8,596 9,804 11,680 9,880
----- ----- ----- ------ -----
Past Due 30-89 days -
liquidating portfolio 6,496 8,596 10,386 12,590 9,881
----- ----- ------ ------ -----
Accruing loans past due 90
days or more:
Commercial 366 350 50 2,685 445
Equipment financing - - - - -
Asset based lending - - - - -
Commercial real estate 1,305 365 236 206 475
Residential development - - - - -
Residential mortgages 407 - - - -
Consumer 60 - - - -
--- --- --- --- ---
Accruing loans past due 90
days or more: 2,138 715 286 2,891 920
----- --- --- ----- ---
Total past due loans $95,409 $114,885 $101,219 $130,376 $123,297
======= ======== ======== ======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Loan Losses (unaudited)
For the Three Months Ended
--------------------------
March
June 30, 31, Dec. 31,
(Dollars in thousands) 2010 2010 2009
---------------------- ---- ---- ----
Beginning balance $343,871 $341,184 $326,406
Provision 32,000 43,000 67,000
Allowance for sold loans - - (469)
Charge-offs continuing
portfolio:
Commercial 4,101 5,271 6,094
Equipment financing 3,601 5,108 13,302
Asset based lending 5,200 2,447 1,099
Commercial real estate 94 1,382 4,605
Residential development 2,110 5,131 6,600
Residential mortgages 3,067 4,455 2,858
Consumer 10,166 9,896 10,723
------ ----- ------
Charge-offs continuing
portfolio 28,339 33,690 45,281
Charge-offs liquidating
portfolio:
NCLC (c) 1,170 70 1,068
Consumer 6,469 9,315 8,232
----- ----- -----
Charge-offs liquidating
portfolio 7,639 9,385 9,300
----- ----- -----
Total charge-offs 35,978 43,075 54,581
------ ------ ------
Recoveries continuing
portfolio:
Commercial 764 515 476
Equipment financing 1,100 952 898
Asset based lending 497 254 55
Commercial real estate - - -
Residential development 172 - -
Residential mortgages 141 80 82
Consumer 1,153 455 535
----- --- ---
Recoveries continuing
portfolio 3,827 2,256 2,046
----- ----- -----
Recoveries liquidating
portfolio:
NCLC (c) 217 302 614
Consumer 150 204 168
--- --- ---
Recoveries liquidating
portfolio 367 506 782
--- --- ---
Total recoveries 4,194 2,762 2,828
----- ----- -----
Total net charge-offs 31,784 40,313 51,753
------ ------ ------
Ending balance $344,087 $343,871 $341,184
======== ======== ========
For the Three Months Ended
--------------------------
Sept. 30, June 30,
(Dollars in thousands) 2009 2009
---------------------- ---- ----
Beginning balance $305,999 $270,929
Provision 85,000 85,000
Allowance for sold loans - -
Charge-offs continuing
portfolio:
Commercial 13,729 8,983
Equipment financing 7,939 6,324
Asset based lending 15,926 5,297
Commercial real estate - -
Residential development 3,019 2,350
Residential mortgages 2,721 4,793
Consumer 10,237 10,242
------ ------
Charge-offs continuing
portfolio 53,571 37,989
Charge-offs liquidating
portfolio:
NCLC (c) 135 3,387
Consumer 13,256 10,825
------ ------
Charge-offs liquidating
portfolio 13,391 14,212
------ ------
Total charge-offs 66,962 52,201
------ ------
Recoveries continuing
portfolio:
Commercial 435 230
Equipment financing 821 203
Asset based lending - -
Commercial real estate - -
Residential development - 9
Residential mortgages 277 115
Consumer 642 702
--- ---
Recoveries continuing
portfolio 2,175 1,259
----- -----
Recoveries liquidating
portfolio:
NCLC (c) 62 825
Consumer 132 187
--- ---
Recoveries liquidating
portfolio 194 1,012
--- -----
Total recoveries 2,369 2,271
----- -----
Total net charge-offs 64,593 49,930
------ ------
Ending balance $326,406 $305,999
======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Asset Quality Ratios
--------------------
For the Three Months Ended
--------------------------
June March Dec.
30, 31, 31,
(Dollars in thousands) 2010 2010 2009
---------------------- ---- ---- ----
Total Portfolio
----------------------
Allowance for loan losses /total
loans 3.17% 3.16% 3.09%
Net charge-offs /average loans
(annualized) 1.17 1.47 1.85
Nonperforming loans / total loans 2.92 3.20 3.38
Nonperforming assets /total loans
plus OREO 3.21 3.47 3.63
Allowance for loan losses /
nonperforming loans 108.44 98.57 91.48
Continuing Portfolio
--------------------
Allowance for loan losses /total
loans 2.76% 2.72% 2.66%
Net charge-offs /average loans
(annualized) 0.92 1.17 1.58
Nonperforming loans / total loans 2.86 3.11 3.26
Nonperforming assets /total loans
plus OREO 3.12 3.37 3.50
Allowance for loan losses /
nonperforming loans 96.54 87.53 81.64
Liquidating Portfolio
---------------------
NCLC (C)
-------
Allowance for loan losses /total
loans 16.79% 21.15% 18.68%
Net charge-offs (recoveries) /
average loans (annualized) 148.10 (20.36) 32.08
Nonperforming loans / total loans 99.96 99.97 87.88
Allowance for loan losses /
nonperforming loans 16.79 21.16 21.26
Consumer
--------
Allowance for loan losses /total
loans 25.42% 25.09% 23.96%
Net charge-offs /average loans
(annualized) 12.53 17.11 14.38
Nonperforming loans / total loans 5.23 6.22 7.41
Allowance for loan losses /
nonperforming loans 485.63 403.57 323.12
For the Three Months Ended
--------------------------
Sept. June
30, 30,
(Dollars in thousands) 2009 2009
---------------------- ---- ----
Total Portfolio
---------------
Allowance for loan losses /total
loans 2.88% 2.64%
Net charge-offs /average loans
(annualized) 2.25 1.66
Nonperforming loans / total loans 3.19 3.02
Nonperforming assets /total loans
plus OREO 3.47 3.30
Allowance for loan losses /
nonperforming loans 90.40 87.33
Continuing Portfolio
--------------------
Allowance for loan losses /total
loans 2.43% 2.33%
Net charge-offs /average loans
(annualized) 1.83 1.25
Nonperforming loans / total loans 3.07 2.86
Nonperforming assets /total loans
plus OREO 3.33 3.09
Allowance for loan losses /
nonperforming loans 79.05 81.39
Liquidating Portfolio
---------------------
NCLC (C)
-------
Allowance for loan losses /total
loans 17.16% 23.00%
Net charge-offs (recoveries) /
average loans (annualized) 4.55 101.57
Nonperforming loans / total loans 84.35 86.06
Allowance for loan losses /
nonperforming loans 20.35 26.72
Consumer
--------
Allowance for loan losses /total
loans 24.25% 16.19%
Net charge-offs /average loans
(annualized) 21.81 16.49
Nonperforming loans / total loans 6.70 8.11
Allowance for loan losses /
nonperforming loans 361.82 199.73
See Selected Financial Highlights for footnotes.
SOURCE Webster Financial Corporation