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WEBSTER REPORTS THIRD QUARTER 2022 EPS OF $1.31; ADJUSTED EPS OF $1.46

10/20/2022

STAMFORD, Conn., Oct. 20, 2022 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced net income available to common shareholders of $229.8 million, or $1.31 per diluted share, for the quarter ended September 30, 2022, compared to $93.7 million, or $1.03 per diluted share, for the quarter ended September 30, 2021.

Third quarter 2022 results include $36.8 million pre-tax, ($27.2 million after tax), or $0.15 per diluted share, of expenses related to the merger, strategic initiatives, and other charges. Excluding these expenses, earnings per diluted share would have been $1.46 for the quarter ended September 30, 2022. Reported results prior to the first quarter of 2022 reflect legacy Webster Financial results only.

"Third quarter results reflect the strong progress our colleagues have made in creating a high performing and differentiated company," said John R. Ciulla, president and chief executive officer. "While executing on integration activities, we have maintained a laser-focus on our clients, resulting in financial performance that exceeds the targets we set forth at the announcement of the MOE more than a year ago."

Highlights for the third quarter of 2022:

  • Revenue of $664.6 million.
  • Period end loan and lease balance of $47.8 billion; 80 percent commercial loans and leases, 20 percent consumer loans, and a loan to deposit ratio of 89 percent.
  • Period end deposit balance of $54.0 billion.
  • Provision for credit losses totaled $36.5 million.
  • Charges related to the merger, strategic initiatives, and other totaled $36.8 million.
  • Return on average assets of 1.38 percent; adjusted 1.54 percent (non-GAAP).
  • Return on average tangible common equity of 18.62 percent; adjusted 20.76 percent (non-GAAP).
  • Net interest margin of 3.54 percent, up 26 basis points from prior quarter.
  • Common equity tier 1 ratio of 10.82 percent.
  • Efficiency ratio (non-GAAP) of 41.17 percent.
  • Tangible common equity ratio of 7.27 percent.
  • Repurchased approximately $100 million in shares under Webster's share repurchase program.

"Not only were our financial results strong this quarter, the underlying drivers of increases in profitability should provide tailwinds into the future," said Glenn MacInnes, executive vice president and chief financial officer. "Our net interest income should continue to benefit from higher interest rates, and we continue to execute on the efficiencies created in our recent merger."

Increases in the balance sheet and income statement, when compared to a year ago, are largely attributable to the merger with Sterling Bancorp on January 31, 2022.

Line of Business performance compared to the third quarter of 2021

Commercial Banking

Webster's Commercial Banking segment serves businesses that have more than $2 million of revenue through our business banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, and treasury services business units. Additionally, our Wealth group provides wealth management solutions to business owners, operators, and consumers within our targeted markets and retail footprint. As of September 30, 2022, Commercial Banking had $38.5 billion in loans and leases and $20.8 billion in deposit balances.

Commercial Banking Operating Results:






Percent


Three months ended September 30,


Favorable/

(In thousands)


2022

2021


(Unfavorable)

Net interest income


$333,554

$152,012



119.4 %


Non-interest income


40,497

22,782



77.8


Operating revenue


374,051

174,794



114.0


Non-interest expense


102,415

50,244



(103.8)


Pre-tax, pre-provision net revenue


$271,636

$124,550



118.1















Percent



At September 30,


Increase/

(In millions)


2022

2021


(Decrease)

Loans and leases


$38,493

$14,655



162.7 %


Deposits


20,828

10,103



106.2


AUA / AUM (off balance sheet)


2,121

2,847



(25.5)


Pre-tax, pre-provision net revenue increased $147.1 million to $271.6 million in the quarter as compared to prior year. The increase in balances and income was largely attributable to the merger. Net interest income increased $181.5 million to $333.6 million, primarily driven by the merger, organic growth in loans and deposits since the merger, and the impact of the rising rate environment. Non-interest income increased $17.7 million to $40.5 million, with $18.8 million driven by the merger, partially offset by lower direct investment income. Non-interest expense increased $52.2 million to $102.4 million, with $47.2 million due to the merger, and $5.0 million primarily to support loan and deposit growth.

HSA Bank

Webster's HSA Bank division offers a comprehensive consumer-directed healthcare solution that includes health savings accounts, health reimbursement arrangements, flexible spending accounts and commuter benefits. Health savings accounts are distributed nationwide directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants and financial advisors. As of September 30, 2022, HSA Bank had $11.1 billion in total footings comprising $7.9 billion in deposit balances and $3.2 billion in assets under administration through linked investment accounts.

HSA Bank Operating Results:






Percent


Three months ended September 30,


Favorable/

(In thousands)


2022

2021


(Unfavorable)

Net interest income


$58,567

$42,074



39.2 %


Non-interest income


25,842

24,756



4.4


Operating revenue


84,409

66,830



26.3


Non-interest expense


36,725

32,374



(13.4)


Pre-tax, net revenue


$47,684

$34,456



38.4















Percent



At September 30,


Increase/

(Dollars in millions)


2022

2021


(Decrease)

Number of accounts (thousands)


3,133

3,003



4.3 %










Deposits


$7,889

$7,329



7.6


Linked investment accounts (off balance sheet)


3,233

3,427



(5.7)


Total footings


$11,122

$10,756



3.4


Pre-tax net revenue increased $13.2 million to $47.7 million in the quarter as compared to prior year. Net interest income increased $16.5 million to $58.6 million, primarily due to an increase in net deposit spread and growth in deposits. Non-interest income increased $1.1 million to $25.8 million, due primarily to increased interchange revenue. Non-interest expense increased $4.4 million to $36.7 million, primarily due to incremental expenses from Bend's acquired business and higher compensation, temporary help, and travel expenses.

Consumer Banking

Consumer Banking serves consumer and business banking customers primarily throughout southern New England and the New York Metro and Suburban markets. Consumer Banking is comprised of the Consumer Lending and Small Business Banking (businesses that have less than $2 million of revenue) business units, as well as a distribution network consisting of 201 banking centers and 354 ATMs, a customer care center, and a full range of web and mobile-based banking services. Additionally, our Webster Investment Services group provides investment services to consumers and small business owners within our targeted markets and retail footprint. As of September 30, 2022, Consumer Banking had $9.3 billion in loans and $23.9 billion in deposit balances, as well as $7.4 billion in assets under administration.

Consumer Banking Operating Results:






Percent


Three months ended September 30,


Favorable/

(In thousands)


2022

2021


(Unfavorable)

Net interest income


$195,748

$98,572



98.6 %


Non-interest income


33,838

24,292



39.3


Operating revenue


229,586

122,864



86.9


Non-interest expense


109,588

73,212



(49.7)


Pre-tax, pre-provision net revenue


$119,998

$49,652



141.7















Percent



At September 30,


Increase/

(In millions)


2022

2021


(Decrease)

Loans


$9,302

$6,925



34.3 %


Deposits


23,859

12,591



89.5


AUA (off balance sheet)


7,369

4,194



75.7


Pre-tax, pre-provision net revenue increased $70.3 million to $120.0 million in the quarter as compared to prior year. The increase in balances and income was largely attributable to the merger. Net interest income increased $97.2 million to $195.7 million, with $71.7 million driven by the merger, and $25.5 million driven by deposit and loan growth, coupled with the impact of the rising rate environment. Non-interest income increased $9.5 million to $33.8 million, with $6.1 million driven by the merger, and $4.7 million from higher deposit, loan, and investment services income, partially offset by $1.5 million in lower mortgage banking fee income. Non-interest expense increased $36.4 million to $109.6 million, primarily driven by $38.4 million of incremental expenses due to the merger, partially offset by lower shared services charges.

Consolidated financial performance:

Quarterly net interest income compared to the third quarter of 2021:

  • Net interest income was $551.0 million compared to $229.7 million.
  • Net interest margin was 3.54 percent compared to 2.80 percent. The yield on interest-earning assets increased by 104 basis points, and the cost of interest-bearing liabilities increased by 32 basis points.
  • Average interest-earning assets totaled $62.2 billion and increased by $29.3 billion, or 89.2 percent.
  • Average loans and leases totaled $46.2 billion and increased by $24.7 billion, or 114.6 percent.
  • Average deposits totaled $54.0 billion and increased by $24.1 billion, or 80.8 percent.

Quarterly provision for credit losses:

  • The provision for credit losses reflects a $36.5 million expense in the quarter, contributing to a $2.8 million increase in the allowance for credit losses on loans and leases and a $5.2 million increase in reserves on unfunded commitments. The provision for credit losses reflected an expense of $12.2 million in the prior quarter, compared to $7.8 million a year ago.
  • Net charge-offs were $28.5 million, compared to $9.6 million in the prior quarter and $0.9 million a year ago. The ratio of net charge-offs to average loans and leases on an annualized basis was 0.25 percent, compared to 0.09 percent in the prior quarter and 0.02 percent a year ago.
  • The allowance for credit losses on loans and leases represented 1.20 percent of total loans and leases at September 30, 2022, compared to 1.25 percent at June 30, 2022 and 1.46 percent at September 30, 2021. The allowance represented 274 percent of nonperforming loans and leases at September 30, 2022 compared to 231 percent at June 30, 2022 and 309 percent at September 30, 2021.

Quarterly non-interest income compared to the third quarter of 2021:

  • Total non-interest income was $113.6 million compared to $83.8 million, an increase of $29.8 million. The increase primarily reflects the impact of the merger with Sterling, offset by lower direct investment income and mortgage banking revenue. Total non-interest income includes a net $0.3 million related to a gain on the early termination of repurchase agreements partially offset by a loss on the sale of investment securities.

Quarterly non-interest expense compared to the third quarter of 2021:

  • Total non-interest expense was $330.1 million compared to $180.2 million, an increase of $149.9 million. Total non-interest expense includes a net $26.7 million of merger and strategic initiatives and a $10.5 million donation to the Webster Bank Charitable Foundation, compared to $5.8 million of merger and strategic initiative related charges a year ago. Excluding those charges, total non-interest expense increased $118.5 million which primarily reflects the impact of the merger with Sterling.

Quarterly income taxes compared to the third quarter of 2021:

  • Income tax expense was $64.1 million compared to $29.8 million, and the effective tax rate was 21.5 percent compared to 23.7 percent. The lower effective tax rate in the current period primarily reflects higher levels of tax-exempt income and tax credits than a year ago, partially offset by the effects of increased income overall in 2022 compared to 2021.

Investment securities:

  • Total investment securities, net were $14.6 billion, compared to $15.2 billion at June 30, 2022 and $9.4 billion at September 30, 2021. The carrying value of the available-for-sale portfolio included $941.8 million of net unrealized losses, compared to net unrealized losses of $609.8 million at June 30, 2022 and net unrealized gains of $44.7 million at September 30, 2021. The carrying value of the held-to-maturity portfolio does not reflect $855.9 million of net unrealized losses, compared to net unrealized losses of $539.4 million at June 30, 2022 and net unrealized gains of $152.9 million at September 30, 2021.

Loans and Leases:

  • Total loans and leases were $47.8 billion, compared to $45.6 billion at June 30, 2022 and $21.6 billion at September 30, 2021. Compared to June 30, 2022, commercial loans and leases increased by $1.1 billion, commercial real estate loans increased by $0.7 billion, residential mortgages increased by $0.4 billion, while consumer loans decreased by $28.4 million.
  • Compared to a year ago, commercial loans and leases increased by $11.5 billion, commercial real estate loans increased by $12.3 billion, residential mortgages increased by $2.5 billion, and consumer loans increased by $1.3 million.
  • Loan originations for the portfolio were $5.1 billion, compared to $5.0 billion in the prior quarter and $2.0 billion a year ago. In addition, $1.5 million of residential loans were originated for sale in the quarter, compared to $5.0 million in the prior quarter and $56.7 million a year ago.

Asset quality:

  • Total nonperforming loans and leases were $209.5 million, or 0.44 percent of total loans and leases, compared to $247.5 million, or 0.54 percent of total loans and leases, at June 30, 2022 and $101.8 million, or 0.47 percent of total loans and leases, at September 30, 2021. As of September 30, 2022, $82.0 million of nonperforming loans and leases were contractually current.
  • Past due loans and leases were $46.4 million, compared to $51.7 million at June 30, 2022 and $17.1 million at September 30, 2021.

Deposits and borrowings:

  • Total deposits were $54.0 billion, compared to $53.1 billion at June 30, 2022 and $30.0 billion at September 30, 2021. Core deposits to total deposits were 95.2 percent, compared to 95.2 percent at June 30, 2022 and 93.7 percent at September 30, 2021. The loan to deposit ratio was 88.5 percent, compared to 86.0 percent at June 30, 2022 and 71.9 percent at September 30, 2021.
  • Total borrowings were $5.9 billion, compared to $5.3 billion at June 30, 2022 and $1.3 billion at September 30, 2021.

Capital:

  • The return on average common shareholders' equity and the return on average tangible common shareholders' equity were 11.78 percent and 18.62 percent, respectively, compared to 11.61 percent and 14.16 percent, respectively, in the third quarter of 2021.
  • The tangible equity and tangible common equity ratios were 7.70 percent and 7.27 percent, respectively, compared to 8.12 percent and 7.71 percent, respectively, at September 30, 2021. The common equity tier 1 risk-based capital ratio was 10.82 percent, compared to 11.77 percent at September 30, 2021.
  • Book value and tangible book value per common share were $43.32 and $27.69, respectively, compared to $35.78 and $29.63, respectively, at September 30, 2021.
  • Repurchased approximately $100 million in shares under Webster's share repurchase program.

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank Division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country's largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $69 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Conference Call

A conference call covering Webster's third quarter 2022 earnings announcement will be held today, Thursday, October 20, 2022 at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster's Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern) on October 20, 2022. To access the replay, dial 800-770-2030, or 647-362-9199 for international callers. The replay conference ID number is 8607257.

Media Contact
Alice Ferreira, 203-578-2610
acferreira@websterbank.com

Investor Contact
Emlen Harmon, 212-309-7646
eharmon@websterbank.com

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) our ability to successfully integrate the operations of Webster and Sterling Bancorp and realize the anticipated benefits of the merger; (2) our ability to successfully execute our business plan and strategic initiatives, and manage any risks or uncertainties; (3) our ability to successfully achieve the anticipated cost reductions and operating efficiencies from planned strategic initiatives, including process automation, organization simplification, and spending reductions, and avoid any higher than anticipated costs or delays in the ongoing implementation; (4) local, regional, national, and international economic conditions and the impact they may have on us and our customers; (5) volatility and disruption in national and international financial markets, including as a result of geopolitical conflict such as the war between Russia and Ukraine; (6) the potential adverse effects of the ongoing novel coronavirus (COVID-19) pandemic, or other unusual and infrequently occurring events, and any governmental or societal responses thereto; (7) changes in laws and regulations, including those concerning banking, taxes, dividends, securities, insurance, and healthcare, with which we and our subsidiaries must comply; (8) adverse conditions in the securities markets that lead to impairment in the value of our investment securities and goodwill; (9) inflation, changes in interest rates, and monetary fluctuations; (10) the replacement of and transition from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) as the primary interest rate benchmark; (11) the timely development and acceptance of new products and services and the perceived value of those products and services by customers; (12) changes in deposit flows, consumer spending, borrowings, and savings habits; (13) our ability to implement new technologies and maintain secure and reliable technology systems; (14) the effects of any cyber threats, attacks or events or fraudulent activity; (15) performance by our counterparties and vendors; (16) our ability to increase market share and control expenses; (17) changes in the competitive environment among banks, financial holding companies, and other financial services providers; (18) changes in the level of non-performing assets and charge-offs; (19) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (20) the effect of changes in accounting policies and practices applicable to us, including the impact of recently adopted accounting guidance; (21) legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (22) our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; and (23) the other factors that are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the headings "Risk Factors" and "Management Discussion and Analysis of Financial Condition and Results of Operations." 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, ROATCE, and other performance ratios, in each case 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. 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

(In thousands, except per share data)

September 30,
2022



June 30,
2022



March 31,
2022



December 31,
2021



September 30,
2021




















Income and performance ratios:



















Net income (loss)

$

233,968



$

182,311



$

(16,747)



$

111,038



$

95,713

Net income (loss) available to common shareholders


229,806




178,148




(20,178)




109,069




93,745

Earnings (loss) per diluted common share


1.31




1.00




(0.14)




1.20




1.03

Return on average assets


1.38

%



1.10

%



(0.12)

%



1.26

%



1.10

Return on average tangible common shareholders' equity (non-GAAP)


18.62




14.50




(1.36)




16.23




14.16

Return on average common shareholders' equity


11.78




9.09




(1.25)




13.35




11.61

Non-interest income as a percentage of total revenue


17.10




19.90




20.88




28.44




26.73




















Asset quality:



















Allowance for credit losses on loans and leases

$

574,325



$

571,499



$

569,371



$

301,187



$

314,922

Nonperforming assets


211,627




250,242




251,206




112,590




104,209

Allowance for credit losses on loans and leases / total loans and leases


1.20

%



1.25

%



1.31

%



1.35

%



1.46

Net charge-offs (recoveries) / average loans and leases (annualized)


0.25




0.09




0.10




(0.02)




0.02

Nonperforming loans and leases / total loans and leases


0.44




0.54




0.57




0.49




0.47

Nonperforming assets / total loans and leases plus OREO


0.44




0.55




0.58




0.51




0.48

Allowance for credit losses on loans and leases / nonperforming loans and leases


274.12




230.88




229.48




274.36




309.44




















Other ratios:



















Tangible equity (non-GAAP)


7.70

%



8.12

%



8.72

%



8.39

%



8.12

Tangible common equity (non-GAAP)


7.27




7.68




8.26




7.97




7.71

Tier 1 risk-based capital (a)


11.37




11.65




12.05




12.32




12.39

Total risk-based capital (a)


13.41




13.91




14.41




13.64




13.79

Common equity tier 1 risk-based capital (a)


10.82




11.09




11.46




11.72




11.77

Shareholders' equity / total assets


11.33




11.83




12.55




9.85




9.57

Net interest margin


3.54




3.28




3.21




2.73




2.80

Efficiency ratio (non-GAAP)


41.17




45.25




48.73




54.85




54.84




















Equity and share related:



















Common equity

$

7,542,431



$

7,713,809



$

7,893,156



$

3,293,288



$

3,241,152

Book value per common share


43.32




43.82




44.32




36.36




35.78

Tangible book value per common share (non-GAAP)


27.69




28.31




28.94




30.22




29.63

Common stock closing price


45.20




42.15




56.12




55.84




54.46

Dividends declared per common share


0.40




0.40




0.40




0.40




0.40

Common shares issued and outstanding


174,116




176,041




178,102




90,584




90,588

Weighted-average common shares outstanding - Basic


173,868




175,845




147,394




90,052




90,038

Weighted-average common shares outstanding - Diluted


173,944




175,895




147,533




90,284




90,232




















(a) Presented as preliminary for September 30, 2022 and actual for the remaining periods.

 

WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)

(In thousands)

September 30,
2022



June 30,
2022



September 30,
2021

Assets:











Cash and due from banks

$

286,487



$

294,482



$

161,369

Interest-bearing deposits


326,638




607,323




2,442,790

Securities:











Available for sale


8,085,044




8,638,358




3,410,443

Held to maturity, net


6,505,838




6,547,998




5,986,308

Total securities, net


14,590,882




15,186,356




9,396,751

Loans held for sale


898




388




24,969

Loans and Leases:











Commercial


19,642,624




18,520,595




8,159,127

Commercial real estate


18,830,948




18,141,670




6,522,679

Residential mortgages


7,617,955




7,223,728




5,167,527

Consumer


1,732,348




1,760,750




1,731,002

Total loans and leases


47,823,875




45,646,743




21,580,335

Allowance for credit losses on loans and leases


(574,325)




(571,499)




(314,922)

Loans and leases, net


47,249,550




45,075,244




21,265,413

Federal Home Loan Bank and Federal Reserve Bank stock


373,044




329,424




75,936

Premises and equipment, net


434,721




449,578




209,573

Goodwill and other intangible assets, net


2,721,040




2,729,551




557,360

Cash surrender value of life insurance policies


1,230,641




1,228,484




572,368

Deferred tax asset, net


369,737




269,790




96,489

Accrued interest receivable and other assets


1,468,928




1,424,401




571,240

Total Assets

$

69,052,566



$

67,595,021



$

35,374,258












Liabilities and Shareholders' Equity:











Deposits:











Demand

$

13,849,812



$

13,576,152



$

7,154,835

Health savings accounts


7,889,310




7,777,786




7,329,405

Interest-bearing checking


9,203,220




9,547,749




4,181,825

Money market


11,156,579




10,884,656




3,958,700

Savings


9,340,372




8,736,712




5,517,189

Certificates of deposit


2,311,484




2,554,102




1,884,373

Brokered certificates of deposit


258,110




-




-

Total deposits


54,008,887




53,077,157




30,026,327

Securities sold under agreements to repurchase and other borrowings


1,265,414




1,743,782




655,871

Federal Home Loan Bank advances


3,510,717




2,510,810




113,334

Long-term debt


1,074,844




1,076,559




564,114

Accrued expenses and other liabilities


1,366,294




1,188,925




628,423

Total liabilities


61,226,156




59,597,233




31,988,069

Preferred stock


283,979




283,979




145,037

Common shareholders' equity


7,542,431




7,713,809




3,241,152

Total shareholders' equity


7,826,410




7,997,788




3,386,189

Total Liabilities and Shareholders' Equity

$

69,052,566



$

67,595,021



$

35,374,258

 

WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)


Three Months Ended September 30,



Nine Months Ended September 30,

(In thousands, except per share data)

2022



2021



2022



2021

Interest income:















Interest and fees on loans and leases

$

525,960



$

196,273



$

1,303,774



$

572,728

Interest and dividends on securities


91,569




43,362




237,297




133,895

Loans held for sale


40




57




73




201

Total interest income


617,569




239,692




1,541,144




706,824

Interest expense:















Deposits


37,492




4,571




57,350




16,104

Borrowings


29,074




5,430




51,883




16,413

Total interest expense


66,566




10,001




109,233




32,517

Net interest income


551,003




229,691




1,431,911




674,307

Provision for credit losses


36,531




7,750




237,619




(39,500)

Net interest income after provision for loan and lease losses


514,472




221,941




1,194,292




713,807

Non-interest income:















Deposit service fees


50,807




40,258




150,019




122,166

Loan and lease related fees


26,769




10,881




77,355




27,056

Wealth and investment services


11,419




9,985




33,260




29,475

Mortgage banking activities


86




1,525




616




5,486

Increase in cash surrender value of life insurance policies


7,718




3,666




22,694




10,802

(Loss) on sale of investment securities, net


(2,234)




-




(2,234)




-

Other income


19,071




17,460




56,894




38,249

Total non-interest income


113,636




83,775




338,604




233,234

Non-interest expense:















Compensation and benefits


173,983




105,352




545,641




310,706

Occupancy


23,517




12,430




93,725




42,090

Technology and equipment


45,283




28,441




142,182




84,081

Marketing


3,918




3,721




10,868




9,452

Professional and outside services


21,618




7,074




91,041




37,875

Intangible assets amortization


8,511




1,124




23,700




3,395

Loan workout expenses


580




203




1,992




924

Deposit insurance


8,026




3,855




19,996




11,560

Other expenses


44,635




18,037




118,938




55,164

Total non-interest expense


330,071




180,237




1,048,083




555,247

Income before income taxes


298,037




125,479




484,813




391,794

Income tax expense


64,069




29,766




85,281




93,968

Net income


233,968




95,713




399,532




297,826

Preferred stock dividends


(4,162)




(1,968)




(11,756)




(5,906)

Net income available to common shareholders

$

229,806



$

93,745



$

387,776



$

291,920
















Weighted-average common shares outstanding - Diluted


173,944




90,232




165,813




90,186
















Earnings per common share:















Basic

$

1.31



$

1.03



$

2.32



$

3.23

Diluted


1.31




1.03




2.32




3.22

 

WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)



Three Months Ended

(In thousands, except per share data)

September 30,
2022



June 30,
2022



March 31,
2022



December 31,
2021



September 30,
2021

Interest income:



















Interest and fees on loans and leases

$

525,960



$

431,538



$

346,276



$

189,985



$

196,273

Interest and dividends on securities


91,569




82,202




63,526




45,990




43,362

Loans held for sale


40




7




26




45




57

Total interest income


617,569




513,747




409,828




236,020




239,692

Interest expense:



















Deposits


37,492




12,459




7,399




4,027




4,571

Borrowings


29,074




14,628




8,181




5,211




5,430

Total interest expense


66,566




27,087




15,580




9,238




10,001

Net interest income


551,003




486,660




394,248




226,782




229,691

Provision for credit losses


36,531




12,243




188,845




(15,000)




7,750

Net interest income after provision for loan and lease losses


514,472




474,417




205,403




241,782




221,941

Non-interest income:



















Deposit service fees


50,807




51,385




47,827




40,544




40,258

Loan and lease related fees


26,769




27,907




22,679




9,602




10,881

Wealth and investment services


11,419




11,244




10,597




10,111




9,985

Mortgage banking activities


86




102




428




733




1,525

Increase in cash surrender value of life insurance policies


7,718




8,244




6,732




3,627




3,666

(Loss) on sale of investment securities, net


(2,234)




-




-




-




-

Other income


19,071




22,051




15,772




25,521




17,460

Total non-interest income


113,636




120,933




104,035




90,138




83,775

Non-interest expense:



















Compensation and benefits


173,983




187,656




184,002




109,283




105,352

Occupancy


23,517




51,593




18,615




13,256




12,430

Technology and equipment


45,283




41,498




55,401




28,750




28,441

Marketing


3,918




3,441




3,509




2,599




3,721

Professional and outside services


21,618




15,332




54,091




9,360




7,074

Intangible assets amortization


8,511




8,802




6,387




1,118




1,124

Loan workout expenses


580




732




680




244




203

Deposit insurance


8,026




6,748




5,222




4,234




3,855

Other expenses


44,635




42,425




31,878




21,009




18,037

Total non-interest expense


330,071




358,227




359,785




189,853




180,237

Income (loss) before income taxes


298,037




237,123




(50,347)




142,067




125,479

Income tax expense (benefit)


64,069




54,812




(33,600)




31,029




29,766

Net income (loss)


233,968




182,311




(16,747)




111,038




95,713

Preferred stock dividends


(4,162)




(4,163)




(3,431)




(1,969)




(1,968)

Net income (loss) available to common shareholders

$

229,806



$

178,148



$

(20,178)



$

109,069



$

93,745




















Weighted-average common shares outstanding - Diluted


173,944




175,895




147,533




90,284




90,232




















Earnings (loss) per common share:



















Basic

$

1.31



$

1.00



$

(0.14)



$

1.20



$

1.03

Diluted


1.31




1.00




(0.14)




1.20




1.03

 

WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)




Three Months Ended September 30,




2022








2021


(Dollars in thousands)


Average balance




Interest




Yield/rate








Average balance



Interest


Yield/rate


Assets:

























Interest-earning assets:

























Loans and leases

$

46,229,678



$

532,062




4.52

%






$

21,538,513


$

197,015


3.60

%

Investment securities (a)


15,039,510




93,561




2.40








8,911,291



43,868


2.01


Federal Home Loan and Federal Reserve Bank stock


326,860




1,875




2.28








76,212



290


1.51


Interest-bearing deposits (b)


585,807




3,278




2.19








2,334,986



896


0.15


Loans held for sale


580




40




 n/m 








11,328



57


2.03


Total interest-earning assets


62,182,435



$

630,816




3.96

%







32,872,330


$

242,126


2.92

%

Non-interest-earning assets


5,823,755
















2,021,962







Total Assets

$

68,006,190















$

34,894,292
































Liabilities and Shareholders' Equity:

























Interest-bearing liabilities:

























Demand deposits

$

13,590,667



$

-




-

%






$

7,182,116


$

-


-

%

Health savings accounts


7,854,425




1,146




0.06








7,346,239



1,463


0.08


Interest-bearing checking, money market and savings


29,798,562




33,808




0.45








13,363,703



1,794


0.05


Certificates of deposit and brokered deposits


2,716,885




2,538




0.37








1,957,286



1,314


0.27


Total deposits


53,960,539




37,492




0.28








29,849,344



4,571


0.06



























Securities sold under agreements to repurchase and other borrowings 


1,369,126




6,242




1.78








544,311



721


0.52


Federal Home Loan Bank advances


2,402,596




13,814




2.25








120,714



492


1.59


Long-term debt (a)


1,075,683




9,018




3.47








564,692



4,217


3.22


Total borrowings


4,847,405




29,074




2.38








1,229,717



5,430


1.82


Total interest-bearing liabilities


58,807,944



$

66,566




0.45

%







31,079,061


$

10,001


0.13

%

Non-interest-bearing liabilities


1,108,202
















439,830







Total liabilities


59,916,146
















31,518,891
































Preferred stock


283,979
















145,037







Common shareholders' equity


7,806,065
















3,230,364







Total shareholders' equity


8,090,044
















3,375,401







Total Liabilities and Shareholders' Equity

$

68,006,190















$

34,894,292







Tax-equivalent net interest income






564,250















232,125




Less: tax-equivalent adjustments






(13,247)















(2,434)




Net interest income





$

551,003














$

229,691




Net interest margin










3.54

%












2.80

%


























(a) For the purposes of our average yield/rate and margin computations, unsettled trades on investment securities and unrealized gain (loss) balances on securities available-for-sale and senior fixed-rate notes hedges are excluded.

(b) Interest-bearing deposits is a component of cash and cash equivalents.

 

WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)




Nine Months Ended September 30,




2022








2021


(Dollars in thousands)


Average balance




Interest




Yield/rate








Average balance



Interest


Yield/rate


Assets:

























Interest-earning assets:

























Loans and leases

$

42,125,526



$

1,317,941




4.14

%






$

21,477,967


$

574,984


3.54

%

Investment securities (a)


14,548,116




246,788




2.22








8,878,820



136,727


2.09


Federal Home Loan and Federal Reserve Bank stock


252,559




4,768




2.52








77,040



909


1.58


Interest-bearing deposits (b)


623,866




4,711




1.00








1,434,552



1419


0.13


Loans held for sale


12,160




73




0.80








11,515



201


2.33


Total interest-earning assets


57,562,227



$

1,574,281




3.60

%







31,879,894


$

714,240


2.98

%

Non-interest-earning assets


5,448,419
















1,968,707







Total Assets

$

63,010,646















$

33,848,601
































Liabilities and Shareholders' Equity:

























Interest-bearing liabilities:

























Demand deposits

$

12,758,489



$

-




-

%






$

6,800,456


$

-


-

%

Health savings accounts


7,809,082




3,358




0.06








7,414,332



4,720


0.09


Interest-bearing checking, money market and savings


27,887,362




48,992




0.23








12,579,762



5,117


0.05


Certificates of deposit and brokered deposits


2,649,328




5,000




0.25








2,146,218



6,267


0.39


Total deposits


51,104,261




57,350




0.15








28,940,768



16,104


0.07



























Securities sold under agreements to repurchase and other borrowings 


1,006,391




9,876




1.29








522,638



2,216


0.56


Federal Home Loan Bank advances


1,198,754




17,034




1.87








131,606



1,539


1.54


Long-term debt (a)


1,017,120




24,973




3.40








565,866



12,658


3.22


Total borrowings


3,222,265




51,883




2.16








1,220,110



16,413


1.85


Total interest-bearing liabilities


54,326,526



$

109,233




0.27

%







30,160,878


$

32,517


0.14

%

Non-interest-bearing liabilities


1,043,313
















373,609







Total liabilities


55,369,839
















30,534,487
































Preferred stock


268,202
















145,037







Common shareholders' equity


7,372,605
















3,169,077







Total shareholders' equity


7,640,807
















3,314,114







Total Liabilities and Shareholders' Equity

$

63,010,646















$

33,848,601







Tax-equivalent net interest income






1,465,048















681,723




Less: tax-equivalent adjustments






(33,137)















(7,416)




Net interest income





$

1,431,911














$

674,307




Net interest margin










3.35

%












2.85

%


























(a) For the purposes of our average yield/rate and margin computations, unsettled trades on investment securities and unrealized gain (loss) balances on securities available-for-sale and senior fixed-rate notes hedges are excluded.


(b) Interest-bearing deposits is a component of cash and cash equivalents.


 

WEBSTER FINANCIAL CORPORATION
Five Quarter Loan and Lease Balances (unaudited)

(Dollars in thousands)


September 30,
2022




June 30,
2022




March 31,
2022




December 31,
2021




September 30,
2021

Loan and Lease Balances (actual):



















Commercial non-mortgage

$

17,838,905



$

16,628,317



$

15,578,594



$

7,509,538



$

7,172,345

Asset-based lending


1,803,719




1,892,278




1,807,545




1,067,248




986,782

Commercial real estate


18,830,948




18,141,670




17,584,947




6,603,180




6,522,679

Residential mortgages


7,617,955




7,223,728




6,798,199




5,412,905




5,167,527

Consumer


1,732,348




1,760,750




1,767,200




1,678,858




1,731,002

Total Loan and Lease Balances


47,823,875




45,646,743




43,536,485




22,271,729




21,580,335

Allowance for credit losses on loans and leases


(574,325)




(571,499)




(569,371)




(301,187)




(314,922)

Loans and Leases, net

$

47,249,550



$

45,075,244



$

42,967,114



$

21,970,542



$

21,265,413




















Loan and Lease Balances (average):



















Commercial non-mortgage

$

16,780,780



$

15,850,507



$

12,568,454



$

7,304,985



$

7,280,258

Asset-based lending


1,811,073




1,851,956




1,540,301




1,010,874




956,535

Commercial real estate


18,503,077




17,756,151




13,732,925




6,575,865




6,510,100

Residential mortgages


7,384,704




6,905,509




6,322,495




5,309,127




5,036,329

Consumer


1,750,044




1,756,575




1,748,654




1,701,250




1,755,291

Total Loan and Lease Balances

$

46,229,678



$

44,120,698



$

35,912,829



$

21,902,101



$

21,538,513



WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited)

(Dollars in thousands)


September 30,
2022




June 30,
2022




March 31,
2022




December 31,
2021




September 30,
2021

Nonperforming loans and leases:



















Commercial non-mortgage

$

80,002



$

112,006



$

108,460



$

63,553



$

40,774

Asset-based lending


25,115




25,862




5,494




2,114




2,139

Commercial real estate


49,054




49,935




74,581




5,058




15,972

Residential mortgages


25,563




27,213




27,318




15,591




19,327

Consumer 


29,782




32,514




32,258




23,462




23,558

Total nonperforming loans and leases

$

209,516



$

247,530



$

248,111



$

109,778



$

101,770




















Other real estate owned and repossessed assets:



















Residential mortgages

$

2,024



$

2,558



$

2,582



$

2,276



$

1,759

Consumer


87




154




513




536




680

Total other real estate owned and repossessed assets

$

2,111



$

2,712



$

3,095



$

2,812



$

2,439

Total nonperforming assets

$

211,627



$

250,242



$

251,206



$

112,590



$

104,209


Past due 30-89 days:



















Commercial non-mortgage

$

17,440



$

6,006



$

8,025



$

9,340



$

5,537

Asset-based lending


-




-




24,103




-




-

Commercial real estate


6,050




25,587




20,533




921




821

Residential mortgages


12,577




10,781




9,307




3,561




3,447

Consumer


9,656




9,275




9,379




5,576




7,158

Total past due 30-89 days

$

45,723



$

51,649



$

71,347



$

19,398



$

16,963

Past due 90 days or more and accruing


711




8




124




2,507




107

Total past due loans and leases

$

46,434



$

51,657



$

71,471



$

21,905



$

17,070

 

WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)








For the Three Months Ended






(Dollars in thousands)


September 30,
2022




June 30,
2022




March 31,
2022




December 31,
2021




September 30,
2021






ACL on loans and leases, beginning balance

$

571,499



$

569,371



$

301,187



$

314,922



$

307,945






Initial allowance on PCD loans and leases (1)


-




-




88,045




-




-






Provision


31,352




11,728




189,068




(14,980)




7,898






Charge-offs:
























Commercial portfolio


31,356




18,757




11,248




799




1,723






Consumer portfolio


1,453




896




1,120




1,382




2,053






Total charge-offs


32,809




19,653




12,368




2,181




3,776






Recoveries:
























Commercial portfolio


1,413




7,765




1,364




1,107




142






Consumer portfolio


2,870




2,288




2,075




2,319




2,713






Total recoveries


4,283




10,053




3,439




3,426




2,855






Total net charge-offs (recoveries)


28,526




9,600




8,929




(1,245)




921






ACL on loans and leases, ending balance

$

574,325



$

571,499



$

569,371



$

301,187



$

314,922






























ACL on unfunded loan commitments, beginning balance

$

20,149



$

19,640



$

13,104



$

12,170



$

11,974






Acquisition of Sterling


-




-




6,749




-




-






Provision


5,180




509




(213)




934




196






ACL on unfunded loan commitments, ending balance 

$

25,329



$

20,149



$

19,640



$

13,104



$

12,170






Total ending balance

$

599,654



$

591,648



$

589,011



$

314,291



$

327,092






























(1) Represents the establishment of the initial reserve for PCD loans and leases net of $48 million in charge-offs recognized upon completion of the merger in accordance with GAAP.

 

WEBSTER FINANCIAL CORPORATION
Reconciliations to GAAP Financial Measures






























The Company evaluates its business based on certain ratios that utilize non-GAAP financial measures. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results and financial position of the Company. Other companies may define or calculate supplemental financial data differently.






























The efficiency ratio, which measures the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. Return on average tangible common shareholders' equity (ROATCE) measures the Company's net income available to common shareholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average shareholders' equity less average preferred stock and average goodwill and intangible assets. The tangible equity ratio represents shareholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The tangible common equity ratio represents shareholders' equity less preferred stock and goodwill and intangible assets divided by total assets less goodwill and intangible assets. Tangible book value per common share represents shareholders' equity less preferred stock and goodwill and intangible assets divided by common shares outstanding at the end of the period. Core deposits express total deposits less certificates of deposit and brokered time deposits. Adjusted net income (loss) available to common shareholders, adjusted diluted earnings per share (EPS), adjusted ROATCE, and adjusted return on average assets (ROAA) are calculated by excluding after tax non-operational items including merger-related expenses and the initial non-PCD provision related to the merger. See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP.
































At or for the Three Months Ended






(In thousands, except per share data)


September 30,
2022




June 30,
2022




March 31,
2022




December 31,
2021




September 30,
2021






Efficiency ratio:
























Non-interest expense

$

330,071



$

358,227



$

359,785



$

189,853



$

180,237






Less: Foreclosed property activity


(393)




(358)




(75)




(347)




(142)






Intangible assets amortization


8,511




8,802




6,387




1,118




1,124






Operating lease depreciation


2,115




2,425




1,632




-




-






Strategic initiatives and other (1)


11,617




(152)




(4,140)




600




(4,011)






Merger related


25,536




66,640




108,495




10,560




9,847






Debt prepayment costs


-




-




-




2,526




-






Non-interest expense

$

282,685



$

280,870



$

247,486



$

175,396



$

173,419






Net interest income

$

551,003



$

486,660



$

394,248



$

226,782



$

229,691






Add: Tax-equivalent adjustment


13,247




11,732




8,158




2,397




2,434






Non-interest income


113,636




120,933




104,035




90,138




83,775






Other income (2)


11,186




3,805




3,082




431




327






Less: Operating lease depreciation


2,115




2,425




1,632




-




-






(Loss) on sale of investment securities, net


(2,234)




-




-




-




-






O ther ( 3 )


2,548




-




-




-




-






Income

$

686,643



$

620,705



$

507,891



$

319,748



$

316,227






Efficiency ratio


41.17

%



45.25

%



48.73

%



54.85

%



54.84

%





























Return on average tangible common shareholders' equity: 
























Net income (loss)

$

233,968



$

182,311



$

(16,747)



$

111,038



$

95,713






Less: Preferred stock dividends


4,162




4,163




3,431




1,969




1,968






Add: Intangible assets amortization, tax-effected


6,724




6,954




5,046




883




888






Adjusted income (loss)

$

236,530



$

185,102



$

(15,132)



$

109,952



$

94,633






Adjusted income (loss), annualized basis

$

946,120



$

740,408



$

(60,528)



$

439,808



$

378,532






Average shareholders' equity

$

8,090,044



$

8,125,518



$

6,691,490



$

3,411,911



$

3,375,401






Less: Average preferred stock


283,979




283,979




236,121




145,037




145,037






Average goodwill and other intangible assets


2,725,200




2,733,827




2,007,266




556,784




557,902






Average tangible common shareholders' equity

$

5,080,865



$

5,107,712



$

4,448,103



$

2,710,090



$

2,672,462






Return on average tangible common shareholders' equity


18.62

%



14.50

%



(1.36)

%



16.23

%



14.16

%





























(1) Strategic initiatives and other is comprised of a contribution to the Webster foundation of $10.5 million (included within other non-interest expense), professional & outside services of $1.4 million, and occupancy of $(0.2) million.

(2) Other income includes the taxable equivalent of net income generated from low income housing tax-credit investments.

( 3 ) Other is comprised of a $2.5 million gain related to the early termination of repurchase agreements.

 

WEBSTER FINANCIAL CORPORATION
Reconciliations to GAAP Financial Measures (continued)























At or for the Three Months Ended

(In thousands, except per share data)


September 30,
2022




June 30,
2022





March 31,
2022




December 31,
2021




September 30,
2021

Tangible equity:




















Shareholders' equity

$

7,826,410



$

7,997,788




$

8,177,135



$

3,438,325



$

3,386,189

Less: Goodwill and other intangible assets


2,721,040




2,729,551





2,738,353




556,242




557,360

Tangible shareholders' equity

$

5,105,370



$

5,268,237




$

5,438,782



$

2,882,083



$

2,828,829

Total assets

$

69,052,566



$

67,595,021




$

65,131,484



$

34,915,599



$

35,374,258

Less: Goodwill and other intangible assets


2,721,040




2,729,551





2,738,353




556,242




557,360

Tangible assets

$

66,331,526



$

64,865,470




$

62,393,131



$

34,359,357



$

34,816,898

Tangible equity


7.70

%



8.12


%



8.72

%



8.39

%



8.12





















Tangible common equity:




















Tangible shareholders' equity

$

5,105,370



$

5,268,237




$

5,438,782



$

2,882,083



$

2,828,829

Less: Preferred stock


283,979




283,979





283,979




145,037




145,037

Tangible common shareholders' equity

$

4,821,391



$

4,984,258




$

5,154,803



$

2,737,046



$

2,683,792

Tangible assets

$

66,331,526



$

64,865,470




$

62,393,131



$

34,359,357



$

34,816,898

Tangible common equity


7.27

%



7.68


%



8.26

%



7.97

%



7.71





















Tangible book value per common share:




















Tangible common shareholders' equity

$

4,821,391



$

4,984,258




$

5,154,803



$

2,737,046



$

2,683,792

Common shares outstanding


174,116




176,041





178,102




90,584




90,588

Tangible book value per common share

$

27.69



$

28.31




$

28.94



$

30.22



$

29.63





















Core deposits:




















Total deposits

$

54,008,887



$

53,077,157




$

54,356,283



$

29,847,029



$

30,026,327

Less: Certificates of deposit


2,311,484




2,554,102





2,821,097




1,797,770




1,884,373

 Brokered certificates of deposit


258,110




-





-




-




-

Core deposits

$

51,439,293



$

50,523,055




$

51,535,186



$

28,049,259



$

28,141,954























Three months ended September 30, 2022


















Adjusted ROATCE:




















Net income

$

233,968


















Less: Preferred stock dividends


4,162


















Add: Intangible assets amortization, tax-effected


6,724


















Strategic initiatives and other, tax-effected


8,467


















Merger related, tax-effected


18,968


















Loss on sale of investment securities, net, tax-effected


1,628


















Other, tax-effected


(1,857)


















Adjusted income

$

263,736


















Adjusted income, annualized basis

$

1,054,944


















Average shareholders' equity

$

8,090,044


















Less: Average preferred stock


283,979


















Average goodwill and other intangible assets


2,725,200


















Average tangible common shareholders' equity

$

5,080,865


















Adjusted return on average tangible common shareholders' equity  


20.76

%





































Adjusted ROAA:




















Net income

$

233,968


















Add: Intangible assets amortization, tax-effected


8,467


















Merger related, tax-effected


18,968


















Loss on sale of investment securities, net, tax-effected


1,628


















Other, tax-effected


(1,857)


















Adjusted income

$

261,174


















Adjusted income, annualized basis

$

1,044,696


















Average assets

$

68,006,190


















Adjusted return on average assets


1.54

%





































(In millions, except per share data)




















GAAP to adjusted reconciliation:





















Three months ended September 30, 2022











Pre-Tax Income




Net Income Available to Common Shareholders





Diluted EPS









Reported (GAAP)

$

298.0



$

229.8