WATERBURY, Conn., Jan 22, 2010 /PRNewswire via COMTEX/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a consolidated net loss of $13.7 million for the quarter ended December 31, 2009. The net loss available to common shareholders of $54.4 million for the quarter ended December 31, 2009 included $34 million of imputed dividends related to the Warburg Pincus investment and convertible preferred exchanges completed during the quarter, which did not have any effect on capital levels at year end.
Key points for the quarter:
Increased core pre-tax, pre-provision earnings of $57.4 million compared to $56.1 million for the third quarter.
Increased tangible common equity by $71 million with completion of the Warburg Pincus investment; also bolstered common equity by exchanging common stock for $27 million par amount of outstanding Webster convertible preferred stock.
Reduced levels of provision for loan losses and net charge-offs of $67.0 million and $51.8 million, respectively, compared to $85.0 million and $64.6 million in the third quarter.
Improved net interest margin of 3.26 percent compared to 3.18 percent for the third quarter of 2009.
Improved core to total deposit ratio of 71 percent compared to 69 percent at September 30, 2009, reflecting core deposit growth of $394 million.
Improved loan-to-deposit ratio of 81 percent compared to 83 percent at September 30, 2009.
Webster Chairman and Chief Executive Officer James C. Smith said, "The fourth quarter was marked by many significant improvements in Webster's operating fundamentals, especially as seen in stabilizing and improved credit metrics, including lower delinquencies, a reduced provision for losses, lower net charge-offs, and higher loan loss coverage." Other positive trends include improved earnings before loan loss provision, expanded net interest margin, and continuing strong core deposit growth. While our results do not yet reflect a return to profitability, our solid performance and improving trends are encouraging. Our recently announced lending and hiring initiatives reflect our positive outlook for continuing improvement throughout 2010."
Net interest income
- Net interest margin improved to 3.26 percent in the fourth quarter with the increase reflecting an 18 basis point decline in the cost of funds offsetting a 10 basis point decline in the yield on interest-earning assets.
- Average interest-earning assets totaled $16.35 billion, up from $16.25 billion last quarter.
Provision for credit losses
- $62.2 million of the $67.0 million provision for credit losses recorded in the fourth quarter was related to the Company's continuing portfolios, and $4.8 million of the provision for credit losses was related to the discontinued liquidating portfolio.
- Net charge-offs were $51.8 million in the fourth quarter compared to $64.6 million for the quarter ended September 30, 2009; $43.2 million was related to the continuing portfolios compared to $51.4 million in the third quarter and $8.5 million was related to the discontinued liquidating portfolio compared to $13.2 million in the third quarter.
Noninterest income
- Noninterest income includes a net gain on sale of investment securities of $53,000 compared to a net loss of $4.7 million in the third quarter. Fourth quarter results also include a net gain of $3.6 million on the fair value accounting mark on warrants issued in connection with the Warburg Pincus investment.
Noninterest expenses
- Noninterest expenses, inclusive of severance and other one-time costs, increased $5.1 million from the third quarter. The fourth quarter included $6.5 million in severance and other one-time costs while the third quarter included $4.2 million in such charges. Included in the $6.5 million in severance and other costs were $3.7 million in facilities related charges, reflecting actions towards full consolidation of back office facilities, and $1.1 million in fraud related expense. Foreclosed and repossessed asset write-downs of $2.7 million and $2.2 million are also included in noninterest expenses in the respective periods.
Income taxes
- Due to the pre-tax loss, the effective tax rate for the fourth quarter was not meaningful. The Company recorded a $1.6 million tax benefit in the quarter on the $15.3 million pre-tax loss applicable to continuing operations in the period.
Investment securities
- Total investment securities were $4.8 billion at December 31, 2009 compared to $4.6 billion at September 30, 2009. The carrying value of the available for sale portfolio included $3 million in net unrealized losses compared to net unrealized losses of $4 million at September 30, 2009, while the carrying value of the held to maturity portfolio does not reflect $61 million in net unrealized gains compared to net unrealized gains of $103 million at September 30, 2009.
Loans
- Total loans were $11.0 billion at December 31, 2009 compared to $11.3 billion at September 30, 2009. In the fourth quarter, residential mortgage loans increased by $60.6 million while consumer, commercial and commercial real estate loans declined by $74.2 million, $239.2 million and $32.8 million, respectively. The decline in commercial loans reflects reductions of $72.2 million in asset based loans and $53.7 million in equipment finance loans, as well as the sale of the insurance premium finance subsidiary in the quarter which had $93.5 million in loans at September 30, 2009.
- The discontinued liquidating portfolio of indirect home equity and national construction loans, included in the consumer and residential loan portfolios, declined by $13.2 million from September 30, 2009 to $219.1 million and $4.8 million, respectively.
Asset quality
- Total nonperforming loans were $373.0 million or 3.38 percent of total loans at December 31, 2009 compared to $361.1 million or 3.19 percent at September 30, 2009. The increase in nonperforming loans reflects a combined increase of $19.9 million in non-accrual commercial real estate, residential development and asset based lending loans and a combined decrease of $8.0 million in all other loan categories.
- Past due loans for the continuing portfolios decreased to $90.5 million at December 31, 2009 compared to $114.9 million at September 30, 2009. Past due loans for the liquidating portfolio decreased to $10.4 million at December 31, 2009 compared to $12.6 million at September 30, 2009.
Deposits and borrowings
- Total deposits were $13.6 billion at December 31, 2009 compared to the same amount at September 30, 2009. The core categories of demand, NOW, money market and savings increased by a combined amount of $393.8 million while certificates of deposit and brokered deposits decreased by $317.9 million and $44.5 million, respectively.
- Total borrowings were $2.0 billion, a decline of $134.9 million from $2.1 billion at September 30, 2009 primarily from maturities of FHLB advances of $118.6 million in the quarter. Borrowings represented 11.2 percent of total assets at December 31, 2009 compared to 11.9 percent at September 30, 2009.
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, 501 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, 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 fourth quarter earnings announcement will be held today, Friday, January 22, at 9:00 a.m. EST 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 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.
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
-----------------------------------------
At or for the Three
Months Ended December 31,
(In thousands, except per share data) 2009 2008
------------------------------------- ---- ----
Net loss and performance ratios
(annualized):
-------------------------------
Net loss $(13,696) $(300,286)
Net loss per diluted common share (0.84) (5.91)
Return on average shareholders' equity (2.81)% (61.69)%
Return on average tangible equity (3.91) (99.44)
Return on average assets (0.31) (6.87)
Loss from continuing operations and
performance ratios (annualized):
-----------------------------------
Loss from continuing operations
attributable to Webster Financial
Corporation $(13,685) $(300,294)
Net loss from continuing operations per
diluted common share (0.84) (5.91)
Return on average shareholders' equity (2.81)% (61.70)%
Return on average tangible equity (3.91) (99.45)
Return on average assets (0.31) (6.87)
Noninterest income as a percentage of
total revenue 29.06 (213.84)
Efficiency ratio (a) 64.88 58.96
Asset quality:
--------------
Allowance for loan losses $341,184 $235,329
Nonperforming assets 401,965 263,189
Allowance for loan losses / total loans 3.09 % 1.93 %
Net charge-offs /average loans
(annualized) 1.85 1.66
Nonperforming loans / total loans 3.38 1.91
Nonperforming assets /total loans plus
OREO 3.63 2.15
Allowance for loan losses /
nonperforming loans 91.48 101.19
Other ratios (annualized):
--------------------------
Tangible capital ratio 8.10 % 7.70 %
Tangible common equity ratio 5.64 4.08
Total-risk based capital (d) 15.34 15.20
Tier 1 common equity /risk weighted
assets (d) 7.83 5.66
Shareholders' equity / total assets 10.98 10.66
Interest-rate spread 3.20 3.11
Net interest margin 3.26 3.20
Share related:
--------------
Book value per common share $19.60 $23.78
Tangible book value per common share 12.57 13.35
Common stock closing price 11.87 13.78
Dividends declared per common share 0.01 0.30
Common shares issued and outstanding 77,893 52,884
Basic shares (average) 71,445 52,031
Diluted shares (average) 72,747 52,031
At or for the Twelve
Months Ended December 31,
(In thousands, except per share data) 2009 2008
------------------------------------- ---- ----
Net loss and performance ratios
(annualized):
-------------------------------
Net loss $(75,632) $(320,970)
Net loss per diluted common share (2.14) (6.42)
Return on average shareholders' equity (4.02)% (17.55)%
Return on average tangible equity (5.68) (29.68)
Return on average assets (0.43) (1.85)
Loss from continuing operations and
performance ratios (annualized):
-----------------------------------
Loss from continuing operations
attributable to Webster Financial
Corporation $(75,934) $(317,897)
Net loss from continuing operations per
diluted common share (2.15) (6.36)
Return on average shareholders' equity (4.04)% (17.39)%
Return on average tangible equity (5.71) (29.40)
Return on average assets (0.43) (1.84)
Noninterest income as a percentage of
total revenue 27.45 (5.87)
Efficiency ratio (a) 65.92 62.38
Asset quality:
--------------
Allowance for loan losses $341,184 $235,329
Nonperforming assets 401,965 263,189
Allowance for loan losses / total loans 3.09 % 1.93 %
Net charge-offs /average loans
(annualized) 1.68 1.09
Nonperforming loans / total loans 3.38 1.91
Nonperforming assets /total loans plus
OREO 3.63 2.15
Allowance for loan losses /
nonperforming loans 91.48 101.19
Other ratios (annualized):
--------------------------
Tangible capital ratio 8.10 % 7.70 %
Tangible common equity ratio 5.64 4.08
Total-risk based capital (d) 15.34 15.20
Tier 1 common equity /risk weighted
assets (d) 7.83 5.66
Shareholders' equity / total assets 10.98 10.66
Interest-rate spread 3.07 3.21
Net interest margin 3.13 3.28
Share related:
--------------
Book value per common share $19.60 $23.78
Tangible book value per common share 12.57 13.35
Common stock closing price 11.87 13.78
Dividends declared per common share 0.04 1.20
Common shares issued and outstanding 77,893 52,884
Basic shares (average) 60,943 52,020
Diluted shares (average) 63,917 52,020
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)
----------------------------------------
December September December
31, 30, 31,
(In thousands) 2009 2009 2008
-------------- ---- ---- ----
Assets:
Cash and due from depository
institutions $171,184 $173,437 $259,208
Short-term investments 390,310 360,618 22,154
Investment securities:
Trading, at fair value - - 77
Available for sale, at fair
value 2,126,043 1,912,283 1,188,705
Held-to-maturity 2,658,869 2,702,881 2,522,511
--------- --------- ---------
Total securities 4,784,912 4,615,164 3,711,293
Loans held for sale 12,528 37,005 24,524
Loans:
Residential mortgages 2,903,637 2,843,066 3,068,441
Consumer 3,020,714 3,094,927 3,300,169
Commercial 2,930,239 3,169,425 3,586,807
Commercial real estate 2,182,120 2,214,941 2,232,174
--------- --------- ---------
Total loans 11,036,710 11,322,359 12,187,591
Allowance for loan losses (341,184) (326,406) (235,329)
-------- -------- --------
Loans, net 10,695,526 10,995,953 11,952,262
Accrued interest receivable 65,041 70,007 74,307
Prepaid FDIC premiums 79,241 - -
Federal Home Loan Bank and
Federal Reserve Bank stock 140,874 140,874 134,874
Premises and equipment, net 178,422 179,353 185,928
Goodwill and other intangible
assets, net 556,752 559,592 563,926
Cash surrender value of life
insurance 289,486 286,806 279,807
Deferred tax assets, net 121,733 139,458 189,337
Prepaid expenses and other
assets 253,188 250,019 185,917
------- ------- -------
Total Assets $17,739,197 $17,808,286 $17,583,537
=========== =========== ===========
Liabilities and Equity:
Deposits:
Demand deposits $1,664,958 $1,571,980 $1,493,295
NOW accounts 2,912,510 2,544,260 1,802,250
Money market deposit accounts 1,991,423 2,209,145 1,356,361
Savings accounts 3,146,603 2,996,318 2,361,169
Certificates of deposit 3,830,865 4,148,759 4,677,615
Brokered deposits 85,768 130,268 194,200
Total deposits 13,632,127 13,600,730 11,884,890
Securities sold under
agreements to repurchase and
other short-term debt 856,846 872,030 1,570,971
Federal Home Loan Bank
advances 544,651 663,210 1,335,996
Long-term debt 588,419 589,600 687,797
Accrued expenses and other
liabilities 159,120 185,342 220,145
------- ------- -------
Total liabilities 15,781,163 15,910,912 15,699,799
Shareholders' equity 1,948,393 1,887,734 1,874,119
Noncontrolling interests 9,641 9,640 9,619
----- ----- -----
Total equity 1,958,034 1,897,374 1,883,738
--------- --------- ---------
Total Liabilities and Equity $17,739,197 $17,808,286 $17,583,537
=========== =========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Operations (unaudited)
-------------------------------------------------
Three Months Ended
December 31,
------------
(In thousands, except per share data) 2009 2008
------------------------------------- ---- ----
Interest income:
Loans including fees $127,069 $168,200
Investment securities 54,029 40,398
Loans held for sale 364 51
--- ---
Total interest income 181,462 208,649
------- -------
Interest expense:
Deposits 35,937 57,154
Borrowings 15,044 25,427
------ ------
Total interest expense 50,981 82,581
------ ------
Net interest income 130,481 126,068
Provision for credit losses 67,000 100,000
------ -------
Net interest income after provision for
credit losses 63,481 26,068
------ ------
Non-interest income:
Deposit service fees 30,634 30,018
Loan related fees 6,501 7,147
Wealth and investment services 6,009 6,480
Mortgage banking activities 1,456 336
Increase in cash surrender value of life
insurance 2,680 2,631
Net gain (loss) on sale of investment
securities 53 (4,233)
Other income 2,649 1,315
----- -----
49,982 43,694
Gain on the exchange of trust preferreds
for common stock - -
Gain on early extinguishment of
subordinated notes - -
Loss on write-down of investments to
fair value (77) (129,593)
Visa share transactions - -
Warrants - fair value adjustment 3,552 -
----- ---
Total non-interest income 53,457 (85,899)
------ -------
Non-interest expenses:
Compensation and benefits 61,644 52,078
Occupancy 14,061 13,406
Furniture and equipment 15,299 15,469
Marketing 4,365 2,895
Outside services 4,209 4,101
Intangible amortization 1,409 1,463
Foreclosed and repossessed asset
expenses 2,192 1,799
Foreclosed and repossessed asset write-
downs 2,745 1,615
FDIC deposit insurance assessment 5,565 3,468
Other expenses 14,193 13,379
------
125,682 109,673
Severance and other costs 6,533 5,905
Impairment of goodwill - 188,866
FDIC special assessment - -
--- ---
Total non-interest expenses 132,215 304,444
------- -------
Loss from continuing operations before
income taxes (15,277) (364,275)
Income tax benefit (1,593) (63,980)
------ -------
Loss from continuing operations (13,684) (300,295)
(Loss) income from discontinued
operations, net of tax (11) 8
--- ---
Consolidated net loss $(13,695) $(300,287)
Less: Net income (loss) attributable to
noncontrolling interests 1 (1)
--- ---
Net loss attributable to Webster
Financial Corporation (13,696) (300,286)
Preferred stock dividends, accretion and
extinguishment gain (40,704) (7,308)
------- ------
Net loss available to common
shareholders $(54,400) $(307,594)
======== =========
Diluted shares (average) 72,747 52,031
Net loss per common share:
Basic
Loss from continuing operations $(0.76) $(5.91)
Net loss (0.76) (5.91)
Diluted
Loss from continuing operations (0.84) (5.91)
Net loss (0.84) (5.91)
Twelve Months Ended
December 31,
------------
(In thousands, except per share data) 2009 2008
------------------------------------- ---- ----
Interest income:
Loans including fees $536,635 $710,621
Investment securities 206,630 157,055
Loans held for sale 2,077 1,597
----- -----
Total interest income 745,342 869,273
------- -------
Interest expense:
Deposits 180,804 250,182
Borrowings 69,900 113,300
------ -------
Total interest expense 250,704 363,482
------- -------
Net interest income 494,638 505,791
Provision for credit losses 303,000 186,300
------- -------
Net interest income after provision for
credit losses 191,638 319,491
------- -------
Non-interest income:
Deposit service fees 119,421 120,132
Loan related fees 24,890 29,067
Wealth and investment services 24,000 28,140
Mortgage banking activities 6,901 1,230
Increase in cash surrender value of life
insurance 10,629 10,441
Net gain (loss) on sale of investment
securities (13,810) (6,094)
Other income 7,766 6,684
----- -----
179,797 189,600
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 (28,477) (219,277)
Visa share transactions 1,907 1,625
Warrants - fair value adjustment 3,552 -
----- ---
Total non-interest income 187,108 (28,052)
------- -------
Non-interest expenses:
Compensation and benefits 237,074 239,701
Occupancy 55,522 53,043
Furniture and equipment 60,926 61,155
Marketing 14,469 13,956
Outside services 15,015 15,758
Intangible amortization 5,743 5,939
Foreclosed and repossessed asset
expenses 7,060 4,643
Foreclosed and repossessed asset write-
downs 11,099 4,300
FDIC deposit insurance assessment 22,056 4,698
Other expenses 58,175 57,442
487,139 460,635
Severance and other costs 12,255 16,158
Impairment of goodwill - 198,379
FDIC special assessment 8,000 -
----- ---
Total non-interest expenses 507,394 675,172
------- -------
Loss from continuing operations before
income taxes (128,648) (383,733)
Income tax benefit (52,736) (65,840)
------- -------
Loss from continuing operations (75,912) (317,893)
(Loss) income from discontinued
operations, net of tax 302 (3,073)
--- ------
Consolidated net loss $(75,610) $(320,966)
Less: Net income (loss) attributable to
noncontrolling interests 22 4
--- ---
Net loss attributable to Webster
Financial Corporation (75,632) (320,970)
Preferred stock dividends, accretion and
extinguishment gain (9,620) (12,947)
------ -------
Net loss available to common
shareholders $(85,252) $(333,917)
======== =========
Diluted shares (average) 63,917 52,020
Net loss per common share:
Basic
Loss from continuing operations $(1.41) $(6.36)
Net loss (1.40) (6.42)
Diluted
Loss from continuing operations (2.15) (6.36)
Net loss (2.14) (6.42)
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Operations (unaudited)
--------------------------------------------------------------
Three Months Ended
------------------
Sept.
Dec. 31, 30, June 30,
(In thousands, except per
share data) 2009 2009 2009
------------------------- ---- ---- ----
Interest income:
Loans including fees $127,069 $131,266 $137,533
Investment securities 54,029 52,975 48,799
Loans held for sale 364 716 833
--- --- ---
Total interest income 181,462 184,957 187,165
------- ------- -------
Interest expense:
Deposits 35,937 41,977 49,982
Borrowings 15,044 16,308 17,895
------ ------ ------
Total interest expense 50,981 58,285 67,877
------ ------ ------
Net interest income 130,481 126,672 119,288
Provision for credit
losses 67,000 85,000 85,000
------ ------ ------
Net interest income after
provision for credit
losses 63,481 41,672 34,288
------ ------ ------
Noninterest income:
Deposit service fees 30,634 30,844 29,984
Loan related fees 6,501 5,557 6,350
Wealth and investment
services 6,009 6,160 6,081
Mortgage banking
activities 1,456 1,406 3,433
Increase in cash surrender
value of life insurance 2,680 2,692 2,665
Net gain (loss) on sale of
investment securities 53 (4,728) (13,593)
Other income 2,649 3,517 1,325
----- ----- -----
49,982 45,448 36,245
Gain on the exchange of
trust preferreds for
common stock - - 24,336
Gain on early
extinguishment of debt
and swaps - - -
Loss on write-down of
investments to fair value (77) (1,290) (27,110)
Warrants -fair value
adjustment 3,552 - -
Visa share transactions - - 1,907
--- --- -----
Total noninterest income 53,457 44,158 35,378
------ ------ ------
Noninterest expenses:
Compensation and benefits 61,644 59,772 59,189
Occupancy 14,061 13,572 13,594
Furniture and equipment 15,299 15,199 15,288
Marketing 4,365 3,802 3,196
Outside services 4,209 3,628 3,394
Intangible amortization 1,409 1,421 1,450
Foreclosed and repossessed
asset expenses 2,192 1,733 1,799
Foreclosed and repossessed
asset write-downs 2,745 2,232 2,829
FDIC deposit insurance
assessment 5,565 5,942 5,959
Other expenses 14,193 15,616 14,066
125,682 122,917 120,764
Severance and other costs 6,533 4,169 1,313
FDIC special assessment - - 8,000
Goodwill impairment - - -
--- --- ---
Total noninterest expenses 132,215 127,086 130,077
------- ------- -------
Loss from continuing
operations before income
taxes (15,277) (41,256) (60,411)
Income tax benefit (1,593) (22,014) (28,536)
------ ------- -------
Loss from continuing
operations (13,684) (19,242) (31,875)
(Loss) income from
discontinued operations,
net of tax (11) - 313
--- --- ---
Consolidated net loss $(13,695) $(19,242) $(31,562)
Less: Net income (loss)
attributable to
noncontrolling interests 1 8 -
--- --- ---
Net loss attributable to
Webster Financial
Corporation (13,696) $(19,250) $(31,562)
Preferred stock dividends,
accretion and
extinguishment gain (40,704) (6,850) 48,361
------- ------ ------
Net (loss) income
available to common
shareholders $(54,400) $(26,100) $16,799
-------- -------- -------
Diluted shares (average) 72,386 66,281 53,398
Net income (loss) per
common share:
Basic
(Loss) income from
continuing operations $(0.76) $(0.39) $0.31
Net (loss) income (0.76) (0.39) 0.31
Diluted
Loss from continuing
operations (0.84) (0.39) (0.66)
Net loss (0.84) (0.39) (0.66)
Three Months Ended
------------------
March
31, Dec. 31,
(In thousands, except per share data) 2009 2008
------------------------------------- ---- ----
Interest income:
Loans including fees $140,767 $168,200
Investment securities 50,827 40,398
Loans held for sale 164 51
--- ---
Total interest income 191,758 208,649
------- -------
Interest expense:
Deposits 52,908 57,154
Borrowings 20,653 25,427
------ ------
Total interest expense 73,561 82,581
------ ------
Net interest income 118,197 126,068
Provision for credit losses 66,000 100,000
------ -------
Net interest income after provision for
credit losses 52,197 26,068
------ ------
Noninterest income:
Deposit service fees 27,959 30,018
Loan related fees 6,482 7,147
Wealth and investment services 5,750 6,480
Mortgage banking activities 606 336
Increase in cash surrender value of life
insurance 2,592 2,631
Net gain (loss) on sale of investment
securities 4,458 (4,233)
Other income 275 1,315
--- -----
48,122 43,694
Gain on the exchange of trust preferreds
for common stock - -
Gain on early extinguishment of debt and
swaps 5,993 -
Loss on write-down of investments to
fair value - (129,593)
Warrants - fair value adjustment - -
Visa share transactions - -
--- ---
Total noninterest income 54,115 (85,899)
------ -------
Noninterest expenses:
Compensation and benefits 56,469 52,078
Occupancy 14,295 13,406
Furniture and equipment 15,140 15,469
Marketing 3,106 2,895
Outside services 3,784 4,101
Intangible amortization 1,463 1,463
Foreclosed and repossessed asset
expenses 1,179 1,799
Foreclosed and repossessed asset write-
downs 3,450 1,615
FDIC deposit insurance assessment 4,590 3,468
Other expenses 14,302 13,379
117,778 109,673
Severance and other costs 240 5,905
FDIC special assessment - -
Goodwill impairment - 188,866
--- -------
Total noninterest expenses 118,018 304,444
------- -------
Loss from continuing operations before
income taxes (11,706) (364,275)
Income tax benefit (593) (63,980)
---- -------
Loss from continuing operations (11,113) (300,295)
(Loss) income from discontinued
operations, net of tax - 8
--- ---
Consolidated net loss $(11,113) $(300,287)
Less: Net income (loss) attributable to
noncontrolling interests 13 (1)
--- ---
Net loss attributable to Webster
Financial Corporation $(11,126) $(300,286)
Preferred stock dividends, accretion and
extinguishment gain (10,430) (7,308)
------- ------
Net (loss) income available to common
shareholders $(21,556) $(307,594)
-------- ---------
Diluted shares (average) 52,102 52,031
Net income (loss) per common share:
Basic
(Loss) income from continuing operations $(0.41) $(5.91)
Net (loss) income (0.41) (5.91)
Diluted
Loss from continuing operations (0.41) (5.91)
Net loss (0.41) (5.91)
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Interest-Rate Spreads (unaudited)
------------------------------------------------
Three Months Ended
------------------
December September June March December
31, 30, 30, 31, 31,
2009 2009 2009 2009 2008
---- ---- ---- ---- ----
Interest-rate spread
--------------------
Yield on interest-
earning assets 4.50% 4.60% 4.72% 4.82% 5.24%
Cost of interest-bearing
liabilities 1.30 1.48 1.76 1.91 2.13
---- ---- ---- ---- ----
Interest-rate spread 3.20% 3.12% 2.96% 2.91% 3.11%
==== ==== ==== ==== ====
Net interest margin 3.26% 3.18% 3.04% 2.99% 3.20%
==== ==== ==== ==== ====
Consolidated Average Balances, Yields and Rates Paid (unaudited)
Three Months Ended December
31, 2009
--------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $11,182,063 $127,069 4.50%
Investment securities (b) 4,673,090 56,607 4.86
Loans held for sale 41,250 364 3.53
Federal Home Loan and Federal
Reserve Bank stock 140,874 716 2.02
Short-term investments 317,183 211 0.26
------- --- ----
Total interest-earning
assets 16,354,460 184,967 4.50
------- ----
Noninterest-earning assets 1,331,093
---------
Total assets $17,685,553
===========
Liabilities and Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $1,639,058 $- - %
Savings, NOW and money market
deposit accounts 7,749,872 14,429 0.74
Time deposits 4,110,743 21,508 2.08
--------- ------ ----
Total deposits 13,499,673 35,937 1.06
---------- ------ ----
Securities sold under
agreements to repurchase
and other short-term debt 884,867 4,449 1.97
Federal Home Loan Bank
advances 594,919 5,259 3.46
Long-term debt 589,548 5,336 3.62
------- ----- ----
Total borrowings 2,069,334 15,044 2.87
--------- ------ ----
Total interest-bearing
liabilities 15,569,007 50,981 1.30
------ ----
Noninterest-bearing
liabilities 158,592
-------
Total liabilities 15,727,599
Noncontrolling interests 9,638
Shareholders' equity 1,948,316
---------
Total liabilities and
shareholders' equity $17,685,553
===========
Tax-equivalent net interest
income 133,986
Less: tax-equivalent
adjustment (3,505)
------
Net interest income $130,481
========
Interest-rate spread 3.20%
====
Net interest margin 3.26%
====
Three Months Ended December
31, 2008
--------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $12,769,534 $168,200 5.22%
Investment securities (b) 3,000,195 42,918 5.42
Loans held for sale 4,093 51 4.99
Federal Home Loan and Federal
Reserve Bank stock 134,874 1,196 3.53
Short-term investments 11,399 40 1.38
------ --- ----
Total interest-earning
assets 15,920,095 212,405 5.24
------- ----
Noninterest-earning assets 1,570,208
---------
Total assets $17,490,303
===========
Liabilities and Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $1,510,066 $- - %
Savings, NOW and money market
deposit accounts 5,550,224 17,849 1.28
Time deposits 4,823,332 39,305 3.24
--------- ------ ----
Total deposits 11,883,622 57,154 1.91
---------- ------ ----
Securities sold under
agreements to repurchase
and other short-term debt 1,446,049 6,345 1.72
Federal Home Loan Bank
advances 1,384,706 8,630 2.44
Long-term debt 665,382 10,452 6.28
------- ------ ----
Total borrowings 3,496,137 25,427 2.87
--------- ------ ----
Total interest-bearing
liabilities 15,379,759 82,581 2.13
------ ----
Noninterest-bearing
liabilities 154,048
-------
Total liabilities 15,533,807
Noncontrolling interests 9,577
Shareholders' equity 1,946,919
---------
Total liabilities and
shareholders' equity $17,490,303
===========
Tax-equivalent net interest
income 129,824
Less: tax-equivalent
adjustment (3,756)
------
Net interest income $126,068
========
Interest-rate spread 3.11%
====
Net interest margin 3.20%
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields and Rates Paid (unaudited)
------------------------------------------------------------------
Twelve Months Ended December
31, 2009
---------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $11,697,078 $536,635 4.59%
Investment securities (b) 4,150,969 217,961 5.18
Loans held for sale 52,131 2,077 3.98
Federal Home Loan and Federal
Reserve Bank stock 137,931 2,685 1.95
Short-term investments 156,553 471 0.30
------- --- ----
Total interest-earning
assets 16,194,662 759,829 4.68
------- ----
Noninterest-earning assets 1,395,821
---------
Total assets $17,590,483
===========
Liabilities and Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $1,578,356 $- - %
Savings, NOW and money market
deposit accounts 6,977,196 60,971 0.87
Time deposits 4,525,770 119,833 2.65
--------- ------- ----
Total deposits 13,081,322 180,804 1.38
---------- ------- ----
Securities sold under
agreements to repurchase
and other short-term debt 1,124,118 19,275 1.71
Federal Home Loan Bank
advances 697,711 25,286 3.62
Long-term debt 628,145 25,339 4.03
------- ------ ----
Total borrowings 2,449,974 69,900 2.85
--------- ------ ----
Total interest-bearing
liabilities 15,531,296 250,704 1.61
------- ----
Noninterest-bearing
liabilities 168,970
-------
Total liabilities 15,700,266
Noncontrolling interests 9,631
Shareholders' equity 1,880,586
---------
Total liabilities and
shareholders' equity $17,590,483
===========
509,125
Less: tax-equivalent
adjustment (14,487)
-------
Net interest income $494,638
========
Interest-rate spread 3.07%
====
Net interest margin 3.13%
====
Twelve Months Ended December
31, 2008
---------------------------- ----
Fully
tax-
Average equivalent
yield/
(Dollars in thousands) balance Interest rate
---------------------- ------- -------- ------
Assets:
Interest-earning assets:
Loans $12,700,933 $710,621 5.60%
Investment securities (b) 2,895,616 166,312 5.56
Loans held for sale 27,366 1,597 5.83
Federal Home Loan and
Federal Reserve Bank stock 127,423 5,501 4.32
Short-term investments 6,422 146 2.27
----- --- ----
Total interest-earning
assets 15,757,760 884,177 5.58
------- ----
Noninterest-earning assets 1,546,699
---------
Total assets $17,304,459
===========
Liabilities and
Shareholders' Equity:
Interest-bearing
liabilities:
Demand deposits $1,487,661 $- - %
Savings, NOW and money
market
deposit accounts 5,776,660 80,994 1.40
Time deposits 4,764,386 169,188 3.55
--------- ------- ----
Total deposits 12,028,707 250,182 2.08
---------- ------- ----
Securities sold under
agreements to repurchase
and other short-term debt 1,359,318 34,643 2.55
Federal Home Loan Bank
advances 1,269,098 39,236 3.09
Long-term debt 660,146 39,421 5.97
------- ------ ----
Total borrowings 3,288,562 113,300 3.45
--------- ------- ----
Total interest-bearing
liabilities 15,317,269 363,482 2.37
------- ----
Noninterest-bearing
liabilities 149,236
-------
Total liabilities 15,466,505
Noncontrolling interests 9,577
Shareholders' equity 1,828,377
---------
Total liabilities and
shareholders' equity $17,304,459
===========
520,695
Less: tax-equivalent
adjustment (14,904)
-------
Net interest income $505,791
========
Interest-rate spread 3.21%
====
Net interest margin 3.28%
====
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Loan balances (unaudited)
--------------------------------------
Dec. 31, Sep. 30, June 30,
(Dollars in
thousands) 2009 2009 2009
----------- ---- ---- ----
Loan Balances
(actuals):
Continuing
Portfolio:
Residential
mortgages $2,898,820 $2,837,240 $2,875,415
Consumer 2,801,589 2,863,622 2,910,275
Commercial 1,505,956 1,619,284 1,711,995
Equipment financing 897,802 951,500 998,258
Asset based lending 526,481 598,641 623,357
Commercial real
estate 2,067,862 2,086,298 2,091,811
Residential
development 114,258 128,643 143,965
------- ------- -------
Total continuing 10,812,768 11,085,228 11,355,076
Allowance for loan
losses (287,784) (269,306) (264,159)
-------- -------- --------
Total continuing,
net 10,524,984 10,815,922 11,090,917
---------- ---------- ----------
Liquidating
Portfolio:
NCLC (c) 4,817 5,826 6,540
Consumer 219,125 231,305 249,086
------- ------- -------
Total liquidating
portfolio 223,942 237,131 255,626
Allowance for loan
losses (53,400) (57,100) (41,840)
------- ------- -------
Total liquidating,
net 170,542 180,031 213,786
------- ------- -------
Total Loan Balances
(actuals) 11,036,710 11,322,359 11,610,702
Allowance for loan
losses (341,184) (326,406) (305,999)
-------- -------- --------
Loans (net) $10,695,526 $10,995,953 $11,304,703
=========== =========== ===========
Loan Balances
(average):
Continuing
Portfolio:
Residential
mortgages $2,860,204 $2,831,440 $3,127,099
Consumer 2,834,923 2,884,543 2,951,691
Commercial 1,548,470 1,675,289 1,750,996
Equipment finance 930,050 975,552 1,011,999
Asset based lending 577,330 622,472 652,197
Commercial real
estate 2,075,754 2,089,643 2,090,615
Residential
development 125,320 139,040 150,674
------- ------- -------
Total continuing 10,952,051 11,217,979 11,735,271
Allowance for loan
losses (277,870) (260,472) (248,701)
-------- -------- --------
Total continuing,
net 10,674,181 10,957,507 11,486,570
---------- ---------- ----------
Liquidating
Portfolio:
NCLC (c) 5,661 6,414 10,090
Consumer 224,351 240,675 258,001
------- ------- -------
Total liquidating
portfolio 230,012 247,089 268,091
Allowance for loan
losses (53,400) (57,100) (41,840)
------- ------- -------
Total liquidating,
net 176,612 189,989 226,251
------- ------- -------
Total Loan Balances
(average) 11,182,063 11,465,068 12,003,362
Allowance for loan
losses (331,270) (317,572) (290,541)
-------- -------- --------
Loans (net) $10,850,793 $11,147,496 $11,712,821
=========== =========== ===========
March 31, Dec. 31,
(Dollars in thousands) 2009 2008
---------------------- ---- ----
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages $3,170,908 $3,049,706
Consumer 2,979,117 3,016,524
Commercial 1,738,640 1,797,135
Equipment financing 1,016,718 1,037,077
Asset based lending 659,694 752,595
Commercial real estate 2,094,751 2,070,641
Residential development 155,544 161,533
------- -------
Total continuing 11,815,372 11,885,211
Allowance for loan losses (226,562) (191,426)
-------- --------
Total continuing, net 11,588,810 11,693,785
---------- ----------
Liquidating Portfolio:
NCLC (c) 13,174 18,735
Consumer 266,913 283,645
------- -------
Total liquidating portfolio 280,087 302,380
Allowance for loan losses (44,367) (43,903)
------- -------
Total liquidating, net 235,720 258,477
------- -------
Total Loan Balances
(actuals) 12,095,459 12,187,591
Allowance for loan losses (270,929) (235,329)
-------- --------
Loans (net) $11,824,530 $11,952,262
=========== ===========
Loan Balances (average):
Continuing Portfolio:
Residential mortgages $3,092,512 $3,449,202
Consumer 3,012,178 2,989,393
Commercial 1,784,062 1,811,527
Equipment finance 1,026,322 1,015,340
Asset based lending 701,263 842,148
Commercial real estate 2,083,861 2,182,228
Residential development 158,924 161,533
------- -------
Total continuing 11,859,122 12,451,371
Allowance for loan losses (204,619) (167,230)
-------- --------
Total continuing, net 11,654,503 12,284,141
---------- ----------
Liquidating Portfolio:
NCLC (c) 15,675 24,199
Consumer 276,219 293,964
------- -------
Total liquidating portfolio 291,894 318,163
Allowance for loan losses (44,367) (43,903)
------- -------
Total liquidating, net 247,527 274,260
------- -------
Total Loan Balances
(average) 12,151,016 12,769,534
Allowance for loan losses (248,986) (211,133)
-------- --------
Loans (net) $11,902,030 $12,558,401
=========== ===========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
---------------------------------------------
Sept. March
Dec. 31, 30, June 30, 31, Dec. 31,
(Dollars in thousands) 2009 2009 2009 2009 2008
---------------------- ---- ---- ---- ---- ----
Nonperforming loans:
Continuing Portfolio:
Residential mortgages $70,311 $66,180 $59,775 $55,962 $48,731
Performing non-accrual
residential mortgages 39,256 43,581 33,822 10,849 3,771
Commercial 56,632 61,746 68,979 65,073 32,915
Equipment financing 30,152 31,784 35,675 16,056 13,138
Asset based lending 13,982 5,064 24,456 29,353 17,072
Commercial real estate 56,144 47,644 16,707 12,604 8,032
Residential development 47,264 44,821 46,808 54,147 48,628
Consumer 31,299 33,837 33,816 37,518 29,627
Performing non-accrual
consumer 7,456 6,000 4,534 2,652 312
----- ----- ----- ----- ---
Nonperforming loans -
continuing portfolio 352,496 340,657 324,572 284,214 202,226
------- ------- ------- ------- -------
Liquidating Portfolio:
NCLC (c) 3,408 4,089 5,628 12,259 12,821
Performing non-accrual
NCLC 825 825 - - 581
Consumer 13,915 14,030 19,521 19,510 16,757
Performing non-accrual
consumer 2,333 1,475 674 185 181
----- ----- --- --- ---
Nonperforming loans -
liquidating portfolio 20,481 20,419 25,823 31,954 30,340
------ ------ ------ ------ ------
Total nonperforming
loans $372,977 $361,076 $350,395 $316,168 $232,566
-------- -------- -------- -------- --------
Other real estate owned
and repossessed
assets:
Continuing Portfolio:
Residential mortgages $4,131 $2,872 $1,808 $1,399 $1,863
Commercial 11,621 13,225 9,340 10,361 9,782
Equipment financing 6,522 8,479 10,322 13,352 13,086
Asset based lending - - - - -
Commercial real estate - - - - -
Residential development - - - - -
Consumer 5,017 4,833 5,571 369 1,244
----- ----- ----- --- -----
Total continuing 27,291 29,409 27,041 25,481 25,975
------ ------ ------ ------ ------
Liquidating Portfolio:
NCLC (c) 1,401 3,108 5,836 5,563 3,519
Consumer 296 - 931 1,139 1,129
--- --- --- ----- -----
Nonperforming loans -
liquidating portfolio 1,697 3,108 6,767 6,702 4,648
----- ----- ----- ----- -----
Total other real estate
owned and repossessed
assets $28,988 $32,517 $33,808 $32,183 $30,623
------- ------- ------- ------- -------
Total nonperforming
assets $401,965 $393,593 $384,203 $348,351 $263,189
======== ======== ======== ======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
---------------------------------------
Sept. March
Dec. 31, 30, June 30, 31, Dec. 31,
(Dollars in thousands) 2009 2009 2009 2009 2008
---------------------- ---- ---- ---- ---- ----
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Residential mortgages $36,086 $38,927 $39,955 $45,798 $45,909
Commercial 7,870 9,735 8,460 8,033 15,817
Equipment financing 10,642 10,407 13,464 16,404 9,860
Asset based lending - - - 145 3,676
Commercial real estate 8,184 23,872 19,053 8,373 7,158
Residential development 551 776 3,210 1,004 2,096
Consumer 27,214 31,178 28,354 33,092 33,848
------ ------ ------ ------ ------
Past Due 30-89 days -
continuing portfolio 90,547 114,895 112,496 112,849 118,364
------ ------- ------- ------- -------
Liquidating Portfolio:
NCLC (c) 582 910 1 1 4,487
Consumer 9,804 11,680 9,880 12,244 15,621
----- ------ ----- ------ ------
Past Due 30-89 days -
liquidating portfolio 10,386 12,590 9,881 12,245 20,108
------ ------ ----- ------ ------
Accruing loans past due 90
days or more:
Residential mortgages - - - - -
Commercial 50 2,685 445 573 459
Equipment financing - - - - -
Asset based lending - - - - -
Commercial real estate 236 206 475 - 450
Residential development - - - 150 201
Consumer - - - - -
--- --- --- --- ---
Accruing loans past due 90
days or more: 286 2,891 920 723 1,110
--- ----- --- --- -----
Total past due loans $101,219 $130,376 $123,297 $125,817 $139,582
======== ======== ======== ======== ========
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. March
Dec. 31, 30, June 30, 31, Dec. 31,
(Dollars in
thousands) 2009 2009 2009 2009 2008
----------- ---- ---- ---- ---- ----
Beginning balance $336,511 $316,037 $281,729 $245,829 $198,669
Provision 67,000 85,000 85,000 66,000 100,000
Allowance for sold
loans (469) - - - -
Charge-offs
continuing
portfolio:
Residential
mortgages 2,858 2,721 4,793 2,964 3,778
Commercial 6,094 13,729 8,983 5,388 5,416
Equipment financing 13,302 7,939 6,324 2,236 1,222
Asset based lending 1,099 15,926 5,297 2,981 176
Commercial real
estate 4,605 - - - 53
Residential
development 6,600 3,019 2,350 48 30,158
Consumer 10,723 10,237 10,242 6,541 3,887
------ ------ ------ ----- -----
Charge-offs
continuing
portfolio 45,281 53,571 37,989 20,158 44,690
Charge-offs
liquidating
portfolio:
NCLC (c) 1,068 135 3,387 2,086 777
Consumer 8,232 13,256 10,825 9,911 8,779
----- ------ ------ ----- -----
Charge-offs
liquidating
portfolio 9,300 13,391 14,212 11,997 9,556
----- ------ ------ ------ -----
Total charge-offs 54,581 66,962 52,201 32,155 54,246
------ ------ ------ ------ ------
Recoveries
continuing
portfolio:
Residential
mortgages 82 277 115 24 85
Commercial 476 435 230 378 225
Equipment financing 898 821 203 287 177
Asset based lending 55 - - 5 129
Commercial real
estate - - - - -
Residential
development - - 9 - -
Consumer 535 642 702 766 180
--- --- --- --- ---
Recoveries
continuing
portfolio 2,046 2,175 1,259 1,460 796
----- ----- ----- ----- ---
Recoveries
liquidating
portfolio:
NCLC (c) 614 62 825 528 595
Consumer 168 132 187 67 15
--- --- --- --- ---
Recoveries
liquidating
portfolio 782 194 1,012 595 610
--- --- ----- --- ---
Total recoveries 2,828 2,369 2,271 2,055 1,406
----- ----- ----- ----- -----
Total net charge-
offs 51,753 64,593 49,930 30,100 52,840
------ ------ ------ ------ ------
Change in unfunded
commitments - 67 (762) - -
Ending balance $351,289 $336,511 $316,037 $281,729 $245,829
======== ======== ======== ======== ========
Components:
Allowance for loan
losses $341,184 $326,406 $305,999 $270,929 $235,329
Reserve for unfunded
credit commitments 10,105 10,105 10,038 10,800 10,500
------ ------ ------ ------ ------
Allowance for credit
losses $351,289 $336,511 $316,037 $281,729 $245,829
======== ======== ======== ======== ========
See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION
Asset Quality Ratios
--------------------
For the Three Months Ended
--------------------------
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(Dollars in thousands) 2009 2009 2009 2009 2008
---------------------- ---- ---- ---- ---- ----
Total Portfolio
---------------
Allowance for loan losses /
total loans 3.09% 2.88% 2.64% 2.24% 1.93%
Net charge-offs /average loans
(annualized) 1.85 2.25 1.66 0.99 1.66
Nonperforming loans /total
loans 3.38 3.19 3.02 2.61 1.91
Nonperforming assets /total
loans plus OREO 3.63 3.47 3.30 2.87 2.15
Allowance for loan losses /
nonperforming loans 91.48 90.40 87.33 85.69 101.19
Continuing Portfolio
--------------------
Allowance for loan losses /
total loans 2.66% 2.43% 2.33% 1.92% 1.61%
Net charge-offs /average loans
(annualized) 1.58 1.83 1.25 0.63 1.41
Nonperforming loans /total
loans 3.26 3.07 2.86 2.41 1.70
Nonperforming assets /total
loans plus OREO 3.50 3.33 3.09 2.62 1.92
Allowance for loan losses /
nonperforming loans 81.64 79.05 81.39 79.72 97.05
Liquidating Portfolio
---------------------
NCLC (C)
--------
Allowance for loan losses /
total loans 18.68% 17.16% 23.00% 30.86% 30.01%
Net charge-offs /average loans
(annualized) 32.08 4.55 101.57 39.76 2.99
Nonperforming loans /total
loans 87.88 84.35 86.06 93.05 71.53
Allowance for loan losses /
nonperforming loans 21.26 20.35 26.72 33.16 41.96
Consumer
--------
Allowance for loan losses /
total loans 23.96% 24.25% 16.19% 15.10% 13.50%
Net charge-offs /average loans
(annualized) 14.38 21.81 16.49 14.26 11.93
Nonperforming loans /total
loans 7.41 6.70 8.11 7.38 5.97
Allowance for loan losses /
nonperforming loans 323.12 361.82 199.73 204.63 225.99
See Selected Financial Highlights for footnotes.
SOURCE Webster Financial Corporation