Webster Reports First Quarter 2022 EPS of $(0.14); Adjusted EPS OF $1.24

Apr 28, 2022

STAMFORD, Conn.April 28, 2022 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced net (loss) income available to common shareholders of $(20.2) million, or $(0.14) per diluted share, for the quarter ended March 31, 2022, compared to $106.1 million, or $1.17 per diluted share, for the quarter ended March 31, 2021.

First quarter 2022 results reflect the impact of the January 31, 2022 merger with Sterling Bancorp ("Sterling") and include $279.5 million pre-tax, ($204.3 million after tax), or $1.38 per diluted share, of primarily merger-related expenses and initial non-purchase credit deteriorated (non-PCD) provision. Excluding these expenses, earnings per diluted share would have been $1.24 for the quarter ended March 31, 2022. Reported results prior to the first quarter of 2022 reflect legacy Webster Financial results only.

"This was a landmark quarter for Webster, as we closed our merger of equals with Sterling Bancorp," said John R. Ciulla, President and Chief Executive Officer. "We are excited about our future as a combined entity, as we are adding scale, talent, and capabilities that will enhance our client experience. I am equally proud we were able to produce strong underlying business trends while at the same time combining these complementary organizations."

Highlights for the first quarter of 2022:

  • Completed merger with Sterling Bancorp, the parent company of Sterling National Bank, which closed effective January 31, 2022, creating an approximately $65 billion institution.
  • Completed the acquisition of Bend Financial, Inc. which will advance our delivery of a differentiated modern approach to HSA management and engagement.
  • Charges related to the merger, strategic initiatives, and initial non-PCD provision totaled $279.5 million.
  • Revenue of $498.3 million.
  • Current period includes a state deferred tax asset revaluation benefit of $9.9 million.
  • Period end loan and lease balance of $43.5 billion; 80 percent commercial loans and leases, 20 percent consumer loans, and a loan to deposit ratio of 80 percent.
  • Period end deposit balance of $54.4 billion.
  • Provision totaled $188.8 million and included $175.1 million related to non-PCD loans and leases.
  • Return on average assets of (0.12) percent; adjusted 1.37 percent (non-GAAP).
  • Return on average tangible common equity of (1.36) percent; adjusted 17.01 percent (non-GAAP).
  • Net interest margin of 3.21 percent includes net accretion of 0.29 percent.
  • Common equity tier 1 ratio of 11.42 percent.
  • Efficiency ratio (non-GAAP) of 48.73 percent.
  • Tangible common equity ratio of 8.26 percent.
  • Authorized to repurchase an additional $600 million in shares under Webster's existing share repurchase program.

"The power of our combined entity is already evident in our financial performance," said Glenn MacInnes, Executive Vice President and Chief Financial Officer. "On an adjusted basis, we generated a return on assets of 1.37 percent and return on tangible common equity of 17 percent. We also exhibited meaningful growth in key product categories, and anticipate carrying this momentum into future periods."

The first quarter results do not represent a full quarter of comparable combined earnings given the merger with Sterling Bancorp on January 31, 2022. Additionally, the increases in the balance sheet and income statement during the quarter are largely attributable to the merger.

Line of Business performance compared to the first quarter of 2021

Webster realigned its investment services related operations from Commercial Banking to Consumer Banking to deliver operational efficiencies and better serve its customers.  As a result, effective January 1, 2022, $4.3 billion of assets under administration (off balance sheet) and $125 million of deposits were moved from Commercial Banking to Consumer Banking. In addition, the expense allocation approach was modified to exclude certain overhead and merger-related expenses that are not tied directly to segment performance. Prior period results have been recasted.

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 March 31, 2022, Commercial Banking had $34.9 billion in loans and leases and $21.5 billion in deposit balances.

Commercial Banking Operating Results:

         

Percent

 

Three months ended March 31,

 

Favorable/

(In thousands)

 

2022

2021

 

(Unfavorable)

Net interest income

 

$287,069

$141,486

   

102.9 %

 

Non-interest income

 

38,743

18,376

   

110.8

 

Operating revenue

 

325,812

159,862

   

103.8

 

Non-interest expense

 

89,240

46,284

   

(92.8)

 

Pre-tax, pre-provision net revenue

 

$236,572

$113,578

   

108.3

 
               
         

Percent

   

At March 31,

 

Increase/

(In millions)

 

2022

2021

 

(Decrease)

Loans and leases

 

$34,928

$14,413

   

142.3 %

 

Deposits

 

21,528

8,313

   

159.0

 

AUA / AUM (off balance sheet)

 

2,692

2,686

   

0.2

 

Pre-tax, pre-provision net revenue increased $123.0 million to $236.6 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 $145.6 million to $287.1 million, with $136.3 million driven by the merger, and $9.3 million due to loan and deposit growth in the legacy Webster portfolios. Non-interest income increased $20.4 million to $38.7 million, with $15.9 million driven by the merger, and $4.5 million driven by growth in loan related fees and client hedging activity. Non-interest expense increased $43.0 million to $89.2 million, with $37.9 million due to the merger, and $5.1 million driven by loan and deposit growth in the legacy Webster portfolios.

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 March 31, 2022, HSA Bank had $11.6 billion in total footings comprising $7.8 billion in deposit balances and $3.8 billion in assets under administration through linked investment accounts.

On February 18, 2022 Webster closed on the acquisition of Bend Financial, Inc. Leveraging Bend's cloud native technology, HSA Bank will accelerate our digital transformation and strengthen our technology to enhance customer experience.

HSA Bank Operating Results:

         

Percent

 

Three months ended March 31,

 

Favorable/

(In thousands)

 

2022

2021

 

(Unfavorable)

Net interest income

 

$44,577

$42,109

   

5.9 %

 

Non-interest income

 

26,958

27,005

   

(0.2)

 

Operating revenue

 

71,535

69,114

   

3.5

 

Non-interest expense

 

36,409

36,005

   

(1.1)

 

Pre-tax, net revenue

 

$35,126

$33,109

   

6.1

 
               
         

Percent

   

At March 31,

 

Increase/

(Dollars in millions)

 

2022

2021

 

(Decrease)

Number of accounts (thousands)

 

3,067

3,040

   

0.9 %

 
               

Deposits

 

$7,805

$7,455

   

4.7

 

Linked investment accounts (off balance sheet)

 

3,761

3,118

   

20.6

 

Total footings

 

$11,566

$10,573

   

9.4

 

Pre-tax net revenue increased $2.0 million to $35.1 million in the quarter as compared to prior year. Net interest income increased $2.5 million to $44.6 million, primarily due to an increase in net deposit spread and growth in deposits. Non-interest income was flat at $27.0 million. Non-interest expense increased $0.4 million to $36.4 million, primarily due to incremental expenses from Bend's acquired business, partially offset by lower compensation and benefits costs.

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 202 banking centers and 359 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 March 31, 2022, Consumer Banking had $8.6 billion in loans and $24.1 billion in deposit balances, as well as $7.9 billion in assets under administration.

Consumer Banking Operating Results:

         

Percent

 

Three months ended March 31,

 

Favorable/

(In thousands)

 

2022

2021

 

(Unfavorable)

Net interest income

 

$136,580

$89,365

   

52.8 %

 

Non-interest income

 

27,892

22,872

   

21.9

 

Operating revenue

 

164,472

112,237

   

46.5

 

Non-interest expense

 

95,747

75,311

   

(27.1)

 

Pre-tax, pre-provision net revenue

 

$68,725

$36,926

   

86.1

 
               
         

Percent

   

At March 31,

 

Increase/

(In millions)

 

2022

2021

 

(Decrease)

Loans

 

$8,589

$6,888

   

24.7 %

 

Deposits

 

24,115

12,715

   

89.7

 

AUA (off balance sheet)

 

7,929

4,008

   

97.9

 

Pre-tax, pre-provision net revenue increased $31.8 million to $68.7 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 $47.2 million to $136.6 million, with $42.3 million driven by the merger, and $4.9 million driven by deposit and loan growth coupled with lower interest paid on deposits. Non-interest income increased $5.0 million to $27.9 million, with $4.4 million driven by the merger and $0.6 million driven by higher deposit service fees. Non-interest expense increased $20.4 million to $95.7 million, primarily driven by the incremental expenses from the merger.

Consolidated financial performance:

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

  • Net interest income was $394.2 million compared to $223.8 million.
  • Net interest margin was 3.21 percent compared to 2.92 percent. The yield on interest-earning assets increased by 25 basis points, and the cost of interest-bearing liabilities decreased by 3 basis points.
  • Average interest-earning assets totaled $50.3 billion and increased by $19.2 billion, or 61.6 percent.
  • Average loans and leases totaled $35.9 billion and grew by $14.4 billion, or 67.2 percent.
  • Average deposits totaled $45.9 billion and grew by $17.6 billion, or 62.4 percent.

Quarterly provision for credit losses:

  • The provision for credit losses reflects a $188.8 million provision in the quarter, contributing to a $268.2 million increase in the allowance for credit losses on loans and leases. The provision for the quarter includes $175.1 million associated with day one accounting provision required for loans and leases acquired during the quarter from the Sterling merger. The provision for credit losses reflected a benefit of $15.0 million in the prior quarter compared to a benefit of $25.8 million a year ago.
  • Net charge-offs were $8.9 million, compared to net recoveries of $(1.2) million in the prior quarter and net charge-offs of $5.3 million a year ago. The ratio of net charge-offs (recoveries) to average loans and leases on an annualized basis was 0.10 percent, compared to (0.02) percent in the prior quarter and 0.10 percent a year ago.
  • The allowance for credit losses on loans and leases represented 1.31 percent of total loans and leases at March 31, 2022, compared to 1.35 percent at December 31, 2021 and 1.54 percent at March 31, 2021. The allowance represented 229 percent of nonperforming loans and leases at March 31, 2022 compared to 274 percent at December 31, 2021 and 218 percent at March 31, 2021.

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

  • Total non-interest income was $104.0 million compared to $76.8 million, an increase of $27.2 million. The increase primarily reflects the two month impact of the merger with Sterling.

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

  • Total non-interest expense was $359.8 million compared to $188.0 million, an increase of $171.8 million. Total non-interest expense includes a net $104.4 million of merger and strategic initiative charges compared to $9.4 million of strategic initiative charges a year ago. Excluding those charges, total non-interest expense increased $76.8 million which primarily reflects the two month impact of the merger with Sterling.

Quarterly income taxes compared to the first quarter of 2021:

  • Income tax (benefit) expense was $(33.6) million compared to $30.2 million, and the effective tax benefit rate was (66.7) percent compared to an effective tax rate of 21.8 percent. The income tax benefit in the current quarter reflects the pre-tax loss, coupled with the effects of tax-exempt income and tax credits, and includes $9.3 million of net tax benefits related to the merger.

Investment securities:

  • Total investment securities, net were $15.1 billion, compared to $10.4 billion at December 31, 2021 and $8.9 billion at March 31, 2021. All investment securities acquired from the merger were classified as available-for-sale. The carrying value of the available-for-sale portfolio included $328.4 million of net unrealized losses, compared to net unrealized gains of $7.2 million at December 31, 2021 and $51.3 million at March 31, 2021. The carrying value of the held-to-maturity portfolio does not reflect $270.8 million of net unrealized losses, compared to net unrealized gains of $82.6 million at December 31, 2021 and $162.6 million at March 31, 2021.

Loans and Leases:

  • Total loans and leases were $43.5 billion, compared to $22.3 billion at December 31, 2021 and $21.3 billion at March 31, 2021. Compared to December 31, 2021, commercial loans and leases increased by $8.8 billion, commercial real estate loans and leases increased by $11.0 billion, residential mortgages increased by $1.4 billion, and consumer loans increased by $88.3 million.
  • Compared to a year ago, commercial loans and leases increased by $8.9 billion, commercial real estate loans and leases increased by $11.2 billion, and residential mortgages increased by $2.1 billion, while consumer loans decreased by $89.7 million.
  • Loan originations for the portfolio were $2.570 billion, compared to $2.553 billion in the prior quarter and $1.807 billion a year ago. In addition, $23 million of residential loans were originated for sale in the quarter, compared to $42 million in the prior quarter and $81 million a year ago.

Asset quality:

  • Total nonperforming loans and leases were $248.1 million, or 0.57 percent of total loans and leases, compared to $109.8 million, or 0.49 percent of total loans and leases, at December 31, 2021 and $150.4 million, or 0.71 percent of total loans and leases, at March 31, 2021. As of March 31, 2022, $115.1 million of nonperforming loans and leases were contractually current.
  • Past due loans and leases were $73.0 million, compared to $21.9 million at December 31, 2021 and $20.4 million at March 31, 2021.

Deposits and borrowings:

  • Total deposits were $54.4 billion, compared to $29.8 billion at December 31, 2021 and $28.5 billion at March 31, 2021. Core deposits to total deposits were 94.8 percent, compared to 94.0 percent at December 31, 2021 and 92.2 percent at March 31, 2021. The loan to deposit ratio was 80.1 percent, compared to 74.6 percent at December 31, 2021 and 74.8 percent at March 31, 2021.
  • Total borrowings were $1.6 billion, compared to $1.2 billion at both December 31, 2021 and March 31, 2021.

Capital:

  • The return on average common shareholders' equity and the return on average tangible common shareholders' equity were (1.25) percent and (1.36) percent, respectively, compared to 13.65 percent and 16.79 percent, respectively, in the first quarter of 2021.
  • The tangible equity and tangible common equity ratios were 8.72 percent and 8.26 percent, respectively, compared to 8.30 percent and 7.85 percent, respectively, at March 31, 2021. The common equity tier 1 risk-based capital ratio was 11.42 percent, compared to 11.89 percent at March 31, 2021.
  • Book value and tangible book value per common share were $44.32 and $28.94, respectively, compared to $34.60 and $28.41, respectively, at March 31, 2021.

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 $65 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 first quarter 2022 earnings announcement will be held today, Thursday, April 28, 2022 at 9:00 a.m. Eastern Time. To listen to the live call, please dial 877-407-8289, or 201-689-8341 for international callers. The webcast, along with related slides, will be available on the Webster website (www.wbst.com). A replay of the conference call will be available for one week via the website listed above, beginning at approximately 11:00 a.m. (Eastern) on April 28, 2022. To access the replay, dial 877-660-6853, or 201-612-7415 for international callers. The replay conference ID number is 13728411.

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)

 

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

   
                                         

Income and performance ratios:

                                       

Net (loss) income

$

(16,747)

   

$

111,038

   

$

95,713

   

$

94,035

   

$

108,078

   

Net (loss) income available to common shareholders

 

(20,178)

     

109,069

     

93,745

     

92,066

     

106,109

   

Earnings (loss) per diluted common share

 

(0.14)

     

1.20

     

1.03

     

1.01

     

1.17

   

Return on average assets

 

(0.12)

%

   

1.26

%

   

1.10

%

   

1.12

%

   

1.31

%

 

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

 

(1.36)

     

16.23

     

14.16

     

14.26

     

16.79

   

Return on average common shareholders' equity

 

(1.25)

     

13.35

     

11.61

     

11.63

     

13.65

   

Non-interest income as a percentage of total revenue

 

20.88

     

28.44

     

26.73

     

24.77

     

25.54

   
                                         

Asset quality:

                                       

Allowance for credit losses on loans and leases

$

569,371

   

$

301,187

   

$

314,922

   

$

307,945

   

$

328,351

   

Nonperforming assets

 

251,206

     

112,590

     

104,209

     

123,497

     

152,808

   

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

 

1.31

%

   

1.35

%

   

1.46

%

   

1.43

%

   

1.54

%

 

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

 

0.10

     

(0.02)

     

0.02

     

(0.02)

     

0.10

   

Nonperforming loans and leases / total loans and leases

 

0.57

     

0.49

     

0.47

     

0.56

     

0.71

   

Nonperforming assets / total loans and leases plus OREO

 

0.58

     

0.51

     

0.48

     

0.57

     

0.72

   

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

 

229.48

     

274.36

     

309.44

     

255.05

     

218.29

   
                                         

Other ratios:

                                       

Tangible equity (non-GAAP)

 

8.72

%

   

8.39

%

   

8.12

%

   

8.35

%

   

8.30

%

 

Tangible common equity (non-GAAP)

 

8.26

     

7.97

     

7.71

     

7.91

     

7.85

   

Tier 1 risk-based capital (a)

 

12.01

     

12.32

     

12.39

     

12.30

     

12.55

   

Total risk-based capital (a)

 

14.37

     

13.64

     

13.79

     

13.70

     

14.08

   

Common equity tier 1 risk-based capital (a)

 

11.42

     

11.72

     

11.77

     

11.66

     

11.89

   

Shareholders' equity / total assets

 

12.55

     

9.85

     

9.57

     

9.86

     

9.84

   

Net interest margin

 

3.21

     

2.73

     

2.80

     

2.82

     

2.92

   

Efficiency ratio (non-GAAP)

 

48.73

     

54.85

     

54.84

     

56.64

     

58.46

   
                                         

Equity and share related:

                                       

Common equity

$

7,893,156

   

$

3,293,288

   

$

3,241,152

   

$

3,184,668

   

$

3,127,891

   

Book value per common share

 

44.32

     

36.36

     

35.78

     

35.15

     

34.60

   

Tangible book value per common share (non-GAAP)

 

28.94

     

30.22

     

29.63

     

28.99

     

28.41

   

Common stock closing price

 

56.12

     

55.84

     

54.46

     

53.34

     

55.11

   

Dividends declared per common share

 

0.40

     

0.40

     

0.40

     

0.40

     

0.40

   

Common shares issued and outstanding

 

178,102

     

90,584

     

90,588

     

90,594

     

90,410

   

Weighted-average common shares outstanding - Basic

 

147,394

     

90,052

     

90,038

     

90,027

     

89,809

   

Weighted-average common shares outstanding - Diluted

 

147,533

     

90,284

     

90,232

     

90,221

     

90,108

   
 

(a) Presented as preliminary for March 31st, 2022 and actual for the remaining periods.

 

 

WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)

(In thousands)

 

March 31,
2022

     

December 31,
2021

     

March 31,
2021

Assets:

                   

Cash and due from banks

$

240,435

   

$

137,385

   

$

160,703

Interest-bearing deposits

 

552,778

     

324,185

     

1,210,958

Securities:

                   

Available for sale

 

8,744,897

     

4,234,854

     

3,313,980

Held to maturity, net

 

6,362,254

     

6,198,125

     

5,567,785

Total securities, net

 

15,107,151

     

10,432,979

     

8,881,765

Loans held for sale

 

17,970

     

4,694

     

17,262

Loans and Leases:

                   

Commercial

 

17,386,139

     

8,576,786

     

8,437,487

Commercial real estate

 

17,584,947

     

6,603,180

     

6,338,056

Residential mortgages

 

6,798,199

     

5,412,905

     

4,668,945

Consumer

 

1,767,200

     

1,678,858

     

1,856,895

Total loans and leases

 

43,536,485

     

22,271,729

     

21,301,383

Allowance for credit losses on loans and leases

 

(569,371)

     

(301,187)

     

(328,351)

Loans and leases, net

 

42,967,114

     

21,970,542

     

20,973,032

Federal Home Loan Bank and Federal Reserve Bank stock

 

206,123

     

71,836

     

77,674

Premises and equipment, net

 

490,004

     

204,557

     

220,982

Goodwill and other intangible assets, net

 

2,738,353

     

556,242

     

559,617

Cash surrender value of life insurance policies

 

1,222,898

     

572,305

     

567,298

Deferred tax asset, net

 

178,042

     

109,405

     

80,235

Accrued interest receivable and other assets

 

1,410,616

     

531,469

     

509,511

Total Assets

$

65,131,484

   

$

34,915,599

   

$

33,259,037

                     

Liabilities and Shareholders' Equity:

                   

Deposits:

                   

Demand

$

13,570,702

   

$

7,060,488

   

$

6,680,114

Health savings accounts

 

7,804,858

     

7,397,582

     

7,455,181

Interest-bearing checking

 

9,579,839

     

4,182,497

     

3,792,309

Money market

 

11,964,649

     

3,718,953

     

3,015,565

Savings

 

8,615,138

     

5,689,739

     

5,304,532

Certificates of deposit

 

2,821,097

     

1,797,770

     

2,234,133

Total deposits

 

54,356,283

     

29,847,029

     

28,481,834

Securities sold under agreements to repurchase and other borrowings

 

518,733

     

674,896

     

498,378

Federal Home Loan Bank advances

 

10,903

     

10,997

     

138,554

Long-term debt

 

1,078,274

     

562,931

     

566,480

Accrued expenses and other liabilities

 

990,156

     

381,421

     

300,863

Total liabilities

 

56,954,349

     

31,477,274

     

29,986,109

Preferred stock

 

283,979

     

145,037

     

145,037

Common shareholders' equity

 

7,893,156

     

3,293,288

     

3,127,891

Total shareholders' equity

 

8,177,135

     

3,438,325

     

3,272,928

Total Liabilities and Shareholders' Equity

$

65,131,484

   

$

34,915,599

   

$

33,259,037

 

 

 

WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)

           

Three Months Ended March 31,

(In thousands, except per share data)

                 

2022

     

2021

Interest income:

                           

Interest and fees on loans and leases

               

$

346,276

   

$

190,536

Interest and dividends on securities

                 

63,526

     

44,947

Loans held for sale

                 

26

     

91

Total interest income

                 

409,828

     

235,574

Interest expense:

                           

Deposits

                 

7,399

     

6,439

Borrowings

                 

8,181

     

5,371

Total interest expense

                 

15,580

     

11,810

Net interest income

                 

394,248

     

223,764

Provision for credit losses

                 

188,845

     

(25,750)

Net interest income after provision for loan and lease losses

                 

205,403

     

249,514

Non-interest income:

                           

Deposit service fees

                 

47,827

     

40,469

Loan and lease related fees

                 

22,679

     

8,313

Wealth and investment services

                 

10,597

     

9,403

Mortgage banking activities

                 

428

     

2,642

Increase in cash surrender value of life insurance policies

                 

6,732

     

3,533

Other income

                 

15,772

     

12,397

Total non-interest income

                 

104,035

     

76,757

Non-interest expense:

                           

Compensation and benefits

                 

184,002

     

107,600

Occupancy

                 

18,615

     

15,650

Technology and equipment

                 

55,401

     

28,516

Marketing

                 

3,509

     

2,504

Professional and outside services

                 

54,091

     

9,776

Intangible assets amortization

                 

6,387

     

1,139

Loan workout expenses

                 

680

     

394

Deposit insurance

                 

5,222

     

3,956

Other expenses

                 

31,878

     

18,447

Total non-interest expense

                 

359,785

     

187,982

(Loss) income before income taxes

                 

(50,347)

     

138,289

Income tax (benefit) expense

                 

(33,600)

     

30,211

Net (loss) income

                 

(16,747)

     

108,078

Preferred stock dividends

                 

(3,431)

     

(1,969)

Net (loss) income available to common shareholders

               

$

(20,178)

   

$

106,109

                             

Weighted-average common shares outstanding - Diluted

                 

147,533

     

90,108

                             

(Loss) Earnings per common share:

                           

Basic

               

$

(0.14)

   

$

1.18

Diluted

                 

(0.14)

     

1.17

 

 

 

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

   

Three Months Ended

(In thousands, except per share data)

 

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

Interest income:

                                   

Interest and fees on loans and leases

$

346,276

   

$

189,985

   

$

196,273

   

$

185,919

   

$

190,536

Interest and dividends on securities

 

63,526

     

45,990

     

43,362

     

45,586

     

44,947

Loans held for sale

 

26

     

45

     

57

     

53

     

91

Total interest income

 

409,828

     

236,020

     

239,692

     

231,558

     

235,574

Interest expense:

                                   

Deposits

 

7,399

     

4,027

     

4,571

     

5,094

     

6,439

Borrowings

 

8,181

     

5,211

     

5,430

     

5,612

     

5,371

Total interest expense

 

15,580

     

9,238

     

10,001

     

10,706

     

11,810

Net interest income

 

394,248

     

226,782

     

229,691

     

220,852

     

223,764

Provision for credit losses

 

188,845

     

(15,000)

     

7,750

     

(21,500)

     

(25,750)

Net interest income after provision for loan and lease losses

 

205,403

     

241,782

     

221,941

     

242,352

     

249,514

Non-interest income:

                                   

Deposit service fees

 

47,827

     

40,544

     

40,258

     

41,439

     

40,469

Loan and lease related fees

 

22,679

     

9,602

     

10,881

     

7,862

     

8,313

Wealth and investment services

 

10,597

     

10,111

     

9,985

     

10,087

     

9,403

Mortgage banking activities

 

428

     

733

     

1,525

     

1,319

     

2,642

Increase in cash surrender value of life insurance policies

 

6,732

     

3,627

     

3,666

     

3,603

     

3,533

Other income

 

15,772

     

25,521

     

17,460

     

8,392

     

12,397

Total non-interest income

 

104,035

     

90,138

     

83,775

     

72,702

     

76,757

Non-interest expense:

                                   

Compensation and benefits

 

184,002

     

109,283

     

105,352

     

97,754

     

107,600

Occupancy

 

18,615

     

13,256

     

12,430

     

14,010

     

15,650

Technology and equipment

 

55,401

     

28,750

     

28,441

     

27,124

     

28,516

Marketing

 

3,509

     

2,599

     

3,721

     

3,227

     

2,504

Professional and outside services

 

54,091

     

9,360

     

7,074

     

21,025

     

9,776

Intangible assets amortization

 

6,387

     

1,118

     

1,124

     

1,132

     

1,139

Loan workout expenses

 

680

     

244

     

203

     

327

     

394

Deposit insurance

 

5,222

     

4,234

     

3,855

     

3,749

     

3,956

Other expenses

 

31,878

     

21,009

     

18,037

     

18,680

     

18,447

Total non-interest expense

 

359,785

     

189,853

     

180,237

     

187,028

     

187,982

(Loss) income before income taxes

 

(50,347)

     

142,067

     

125,479

     

128,026

     

138,289

Income tax (benefit) expense

 

(33,600)

     

31,029

     

29,766

     

33,991

     

30,211

Net (loss) income

 

(16,747)

     

111,038

     

95,713

     

94,035

     

108,078

Preferred stock dividends

 

(3,431)

     

(1,969)

     

(1,968)

     

(1,969)

     

(1,969)

Net (loss) income available to common shareholders

$

(20,178)

   

$

109,069

   

$

93,745

   

$

92,066

   

$

106,109

                                     

Weighted-average common shares outstanding - Diluted

 

147,533

     

90,284

     

90,232

     

90,221

     

90,108

                                     

(Loss) Earnings per common share:

                                   

Basic

$

(0.14)

   

$

1.20

   

$

1.03

   

$

1.02

   

$

1.18

Diluted

 

(0.14)

     

1.20

     

1.03

     

1.01

     

1.17

 

 

 

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

 
   

Three Months Ended March 31,

 
   

2022

             

2021

 

(Dollars in thousands)

 

Average balance

     

Interest

     

Yield/rate

             

Average balance

   

Interest

 

Yield/rate

 

Assets:

                                               

Interest-earning assets:

                                               

Loans and leases

$

35,912,829

   

$

349,417

     

3.90

%

         

$

21,481,320

 

$

191,288

 

3.57

%

Investment securities (a)

 

13,421,543

     

67,269

     

2.02

             

8,890,075

   

46,277

 

2.12

 

Federal Home Loan and Federal Reserve Bank stock

 

166,357

     

821

     

2.00

             

77,632

   

237

 

1.24

 

Interest-bearing deposits (b)

 

799,265

     

453

     

0.23

             

680,367

   

176

 

0.10

 

Loans held for sale

 

17,918

     

26

     

0.58

             

14,351

   

91

 

2.54

 

Total interest-earning assets

 

50,317,912

   

$

417,986

     

3.33

%

           

31,143,745

 

$

238,069

 

3.08

%

Non-interest-earning assets

 

4,490,665

                             

1,982,315

           

Total Assets

$

54,808,577

                           

$

33,126,060

           
                                                 

Liabilities and Shareholders' Equity:

                                               

Interest-bearing liabilities:

                                               

Demand deposits

$

11,263,282

   

$

-

     

-

%

         

$

6,436,858

 

$

-

 

-

%

Health savings accounts

 

7,759,465

     

1,087

     

0.06

             

7,451,175

   

1,607

 

0.09

 

Interest-bearing checking, money market and savings

 

24,316,436

     

5,019

     

0.08

             

11,995,473

   

1,720

 

0.06

 

Certificates of deposit

 

2,544,286

     

1,293

     

0.21

             

2,371,026

   

3,112

 

0.53

 

Total deposits

 

45,883,469

     

7,399

     

0.07

             

28,254,532

   

6,439

 

0.09

 
                                                 

Securities sold under agreements to repurchase and other borrowings

 

577,039

     

957

     

0.66

             

522,728

   

635

 

0.49

 

Federal Home Loan Bank advances

 

10,936

     

56

     

2.03

             

135,787

   

513

 

1.51

 

Long-term debt (a)

 

896,310

     

7,168

     

3.34

             

567,058

   

4,223

 

3.23

 

Total borrowings

 

1,484,285

     

8,181

     

2.26

             

1,225,573

   

5,371

 

1.82

 

Total interest-bearing liabilities

 

47,367,754

   

$

15,580

     

0.13

%

           

29,480,105

 

$

11,810

 

0.16

%

Non-interest-bearing liabilities

 

749,333

                             

391,752

           

Total liabilities

 

48,117,087

                             

29,871,857

           
                                                 

Preferred stock

 

236,121

                             

145,037

           

Common shareholders' equity

 

6,455,369

                             

3,109,166

           

Total shareholders' equity

 

6,691,490

                             

3,254,203

           

Total Liabilities and Shareholders' Equity

$

54,808,577

                           

$

33,126,060

           

Tax-equivalent net interest income

         

402,406

                           

226,259

     

Less: tax-equivalent adjustments

         

(8,158)

                           

(2,495)

     

Net interest income

       

$

394,248

                         

$

223,764

     

Net interest margin

                 

3.21

%

                     

2.92

%

                                                 

(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)

 

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

Loan and Lease Balances (actual):

                                   

Commercial non-mortgage

$

15,578,594

   

$

7,509,538

   

$

7,172,345

   

$

7,473,758

   

$

7,530,066

Asset-based lending

 

1,807,545

     

1,067,248

     

986,782

     

943,961

     

907,421

Commercial real estate

 

17,584,947

     

6,603,180

     

6,522,679

     

6,410,672

     

6,338,056

Residential mortgages

 

6,798,199

     

5,412,905

     

5,167,527

     

4,856,302

     

4,668,945

Consumer

 

1,767,200

     

1,678,858

     

1,731,002

     

1,790,308

     

1,856,895

Total Loan and Lease Balances

 

43,536,485

     

22,271,729

     

21,580,335

     

21,475,001

     

21,301,383

Allowance for credit losses on loans and leases

 

(569,371)

     

(301,187)

     

(314,922)

     

(307,945)

     

(328,351)

Loans and Leases, net

$

42,967,114

   

$

21,970,542

   

$

21,265,413

   

$

21,167,056

   

$

20,973,032

                                     

Loan and Lease Balances (average):

                                   

Commercial non-mortgage

$

12,568,454

   

$

7,304,985

   

$

7,280,258

   

$

7,545,398

   

$

7,650,367

Asset-based lending

 

1,540,301

     

1,010,874

     

956,535

     

937,580

     

896,093

Commercial real estate

 

13,732,925

     

6,575,865

     

6,510,100

     

6,365,830

     

6,303,765

Residential mortgages

 

6,322,495

     

5,309,127

     

5,036,329

     

4,738,859

     

4,720,703

Consumer

 

1,748,654

     

1,701,250

     

1,755,291

     

1,825,772

     

1,910,392

Total Loan and Lease Balances

$

35,912,829

   

$

21,902,101

   

$

21,538,513

   

$

21,413,439

   

$

21,481,320

 

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

(Dollars in thousands)

 

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

Nonperforming loans and leases:

                                   

Commercial non-mortgage

$

108,460

   

$

63,553

   

$

40,774

   

$

57,831

   

$

60,103

Asset-based lending

 

5,494

     

2,114

     

2,139

     

2,403

     

2,430

Commercial real estate

 

74,581

     

5,058

     

15,972

     

12,687

     

13,743

Residential mortgages

 

27,318

     

15,591

     

19,327

     

21,467

     

42,708

Consumer 

 

32,258

     

23,462

     

23,558

     

26,353

     

31,437

Total nonperforming loans and leases

$

248,111

   

$

109,778

   

$

101,770

   

$

120,741

   

$

150,421

                                     

Other real estate owned and repossessed assets:

                                   

Commercial non-mortgage

$

-

   

$

-

   

$

-

   

$

-

   

$

102

Residential mortgages

 

2,582

     

2,276

     

1,759

     

1,934

     

1,695

Consumer

 

513

     

536

     

680

     

822

     

590

Total other real estate owned and repossessed assets

$

3,095

   

$

2,812

   

$

2,439

   

$

2,756

   

$

2,387

Total nonperforming assets

$

251,206

   

$

112,590

   

$

104,209

   

$

123,497

   

$

152,808

 

Past due 30-89 days:

                                   

Commercial non-mortgage

$

8,025

   

$

9,340

   

$

5,537

   

$

3,154

   

$

7,395

Asset-based lending

 

24,103

     

-

     

-

     

-

     

-

Commercial real estate

 

22,053

     

921

     

821

     

1,679

     

699

Residential mortgages

 

9,307

     

3,561

     

3,447

     

4,690

     

5,241

Consumer

 

9,379

     

5,576

     

7,158

     

8,829

     

7,036

Total past due 30-89 days

 

72,867

     

19,398

     

16,963

     

18,352

     

20,371

Past due 90 days or more and accruing

 

124

     

2,507

     

107

     

25

     

50

Total past due loans and leases

$

72,991

   

$

21,905

   

$

17,070

   

$

18,377

   

$

20,421

 

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)

 

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

ACL on loans and leases, beginning balance

$

301,187

   

$

314,922

   

$

307,945

   

$

328,351

   

$

359,431

Initial allowance on PCD loans and leases (1)

 

88,045

     

-

     

-

     

-

     

-

Provision

 

189,068

     

(14,980)

     

7,898

     

(21,574)

     

(25,759)

Charge-offs:

                                   

Commercial portfolio

 

11,248

     

799

     

1,723

     

594

     

6,321

Consumer portfolio

 

1,120

     

1,382

     

2,053

     

2,808

     

2,974

Total charge-offs

 

12,368

     

2,181

     

3,776

     

3,402

     

9,295

Recoveries:

                                   

Commercial portfolio

 

1,364

     

1,107

     

142

     

836

     

1,636

Consumer portfolio

 

2,075

     

2,319

     

2,713

     

3,734

     

2,338

Total recoveries

 

3,439

     

3,426

     

2,855

     

4,570

     

3,974

Total net charge-offs (recoveries)

 

8,929

     

(1,245)

     

921

     

(1,168)

     

5,321

ACL on loans and leases, ending balance

$

569,371

   

$

301,187

   

$

314,922

   

$

307,945

   

$

328,351

                                     

ACL on unfunded loan commitments, beginning balance

$

13,104

   

$

12,170

   

$

11,974

   

$

12,800

   

$

12,755

Acquisition of Sterling

 

6,749

     

-

     

-

     

-

     

-

Provision

 

(213)

     

934

     

196

     

(826)

     

45

ACL on unfunded loan commitments, ending balance

$

19,640

   

$

13,104

   

$

12,170

   

$

11,974

   

$

12,800

Total ending balance

$

589,011

   

$

314,291

   

$

327,092

   

$

319,919

   

$

341,151

                                     

(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 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 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)

   

March 31,
2022

     

December 31,
2021

     

September 30,
2021

     

June 30,
2021

     

March 31,
2021

 

Efficiency ratio:

                                       

Non-interest expense

 

$

359,785

   

$

189,853

   

$

180,237

   

$

187,028

   

$

187,982

 

Less: Foreclosed property activity

   

(75)

     

(347)

     

(142)

     

(137)

     

91

 

Intangible assets amortization

   

6,387

     

1,118

     

1,124

     

1,132

     

1,139

 

Operating lease depreciation

   

1,632

     

-

     

-

     

-

     

-

 

Strategic initiatives

   

(4,140)

     

600

     

(4,011)

     

1,138

     

9,441

 

Merger related

   

108,495

     

10,560

     

9,847

     

17,047

     

-

 

Debt prepayment costs

   

-

     

2,526

     

-

     

-

     

-

 

Non-interest expense

 

$

247,486

   

$

175,396

   

$

173,419

   

$

167,848

   

$

177,311

 

Net interest income

 

$

394,248

   

$

226,782

   

$

229,691

   

$

220,852

   

$

223,764

 

Add: Tax-equivalent adjustment

   

8,158

     

2,397

     

2,434

     

2,487

     

2,495

 

Non-interest income

   

104,035

     

90,138

     

83,775

     

72,702

     

76,757

 

Other

   

3,082

     

431

     

327

     

309

     

277

 

Less: Operating lease depreciation

   

1,632

     

-

     

-

     

-

     

-

 

Income

 

$

507,891

   

$

319,748

   

$

316,227

   

$

296,350

   

$

303,293

 

Efficiency ratio

   

48.73

%

   

54.85

%

   

54.84

%

   

56.64

%

   

58.46

%

                                         

Return on average tangible common shareholders' equity:

                                       

Net (loss) income 

 

$

(16,747)

   

$

111,038

   

$

95,713

   

$

94,035

   

$

108,078

 

Less: Preferred stock dividends

   

3,431

     

1,969

     

1,968

     

1,969

     

1,969

 

Add: Intangible assets amortization, tax-effected

   

5,046

     

883

     

888

     

894

     

900

 

(Loss) income adjusted for preferred stock dividends and intangible assets amortization

 

$

(15,132)

   

$

109,952

   

$

94,633

   

$

92,960

   

$

107,009

 

(Loss) income adjusted for preferred stock dividends and intangible assets amortization, annualized basis

 

$

(60,528)

   

$

439,808

   

$

378,532

   

$

371,840

   

$

428,036

 

Average shareholders' equity

 

$

6,691,490

   

$

3,411,911

   

$

3,375,401

   

$

3,311,406

   

$

3,254,203

 

Less: Average preferred stock

   

236,121

     

145,037

     

145,037

     

145,037

     

145,037

 

Average goodwill and other intangible assets

   

2,007,266

     

556,784

     

557,902

     

559,032

     

560,173

 

Average tangible common shareholders' equity

 

$

4,448,103

   

$

2,710,090

   

$

2,672,462

   

$

2,607,337

   

$

2,548,993

 

Return on average tangible common shareholders' equity

   

(1.36)

%

   

16.23

%

   

14.16

%

   

14.26

%

   

16.79

%

                                         

Tangible equity:

                                       

Shareholders' equity

 

$

8,177,135

   

$

3,438,325

   

$

3,386,189

   

$

3,329,705

   

$

3,272,928

 

Less: Goodwill and other intangible assets

   

2,738,353

     

556,242

     

557,360

     

558,485

     

559,617

 

Tangible shareholders' equity

 

$

5,438,782

   

$

2,882,083

   

$

2,828,829

   

$

2,771,220

   

$

2,713,311

 

Total assets

 

$

65,131,484

   

$

34,915,599

   

$

35,374,258

   

$

33,753,752

   

$

33,259,037

 

Less: Goodwill and other intangible assets

   

2,738,353

     

556,242

     

557,360

     

558,485

     

559,617

 

Tangible assets

 

$

62,393,131

   

$

34,359,357

   

$

34,816,898

   

$

33,195,267

   

$

32,699,420

 

Tangible equity

   

8.72

%

   

8.39

%

   

8.12

%

   

8.35

%

   

8.30

%

                                         

Tangible common equity:

                                       

Tangible shareholders' equity

 

$

5,438,782

   

$

2,882,083

   

$

2,828,829

   

$

2,771,220

   

$

2,713,311

 

Less: Preferred stock

   

283,979

     

145,037

     

145,037

     

145,037

     

145,037

 

Tangible common shareholders' equity

 

$

5,154,803

   

$

2,737,046

   

$

2,683,792

   

$

2,626,183

   

$

2,568,274

 

Tangible assets

 

$

62,393,131

   

$

34,359,357

   

$

34,816,898

   

$

33,195,267

   

$

32,699,420

 

Tangible common equity

   

8.26

%

   

7.97

%

   

7.71

%

   

7.91

%

   

7.85

%

                                         

Tangible book value per common share:

                                       

Tangible common shareholders' equity

 

$

5,154,803

   

$

2,737,046

   

$

2,683,792

   

$

2,626,183

   

$

2,568,274

 

Common shares outstanding

   

178,102

     

90,584

     

90,588

     

90,594

     

90,410

 

Tangible book value per common share

 

$

28.94

   

$

30.22

   

$

29.63

   

$

28.99

   

$

28.41

 
                                         

Core deposits:

                                       

Total deposits

 

$

54,356,283

   

$

29,847,029

   

$

30,026,327

   

$

28,846,966

   

$

28,481,834

 

Less: Certificates of deposit

   

2,821,097

     

1,797,770

     

1,884,373

     

2,014,544

     

2,234,133

 

Core deposits

 

$

51,535,186

   

$

28,049,259

   

$

28,141,954

   

$

26,832,422

   

$

26,247,701

 
                                         
     

Three months ended
March 31, 2022

                                 

Adjusted ROATCE:

                                       

Net (loss) income

 

$

(16,747)

                                 

Less: Preferred stock dividends

   

3,431

                                 

Add: Intangible assets amortization, tax-effected

   

5,046

                                 

Strategic initiatives, tax-effected

   

(3,017)

                                 

Merger related, tax-effected

   

79,698

                                 

Initial non-PCD provision, tax-effected

   

127,585

                                 

Income adjusted for preferred stock dividends, intangible assets amortization, and other

 

$

189,134

                                 

Income adjusted for preferred stock dividends, intangible assets amortization, and other, annualized basis

 

$

756,536

                                 

Average shareholders' equity

 

$

6,691,490

                                 

Less: Average preferred stock

   

236,121

                                 

Average goodwill and other intangible assets

   

2,007,266

                                 

Average tangible common shareholders' equity

 

$

4,448,103

                                 

Adjusted return on average tangible common shareholders' equity

   

17.01

%

                               
                                         

Adjusted ROAA:

                                       

Net (loss) income

 

$

(16,747)

                                 

Add: Strategic initiatives, tax-effected

   

(3,017)

                                 

Merger related, tax-effected

   

79,698

                                 

Initial non-PCD provision, tax-effected

   

127,585

                                 

Income adjusted for strategic initiatives, merger related, and initial non-PCD provision

 

$

187,519

                                 

Income adjusted for strategic initiatives, merger related, and initial non-PCD provision, annualized basis

 

$

750,076

                                 

Average assets

 

$

54,808,577

                                 

Adjusted return on average assets

   

1.37

%

                               
                                         

(In millions, except per share data)

                                       

GAAP to adjusted reconciliation:

                                       
   

Three months ended March 31, 2022

                 
     

Pre-Tax Income (Loss)

     

Net Income (Loss)
Available to Common
Shareholders

     

Diluted EPS

                 

Reported (GAAP)

 

$

(50.3)

   

$

(20.2)

   

$

(0.14)

                 

Strategic initiatives

   

(4.1)

     

(3.0)

     

(0.02)

                 

Merger related expenses

   

108.5

     

79.7

     

0.54

                 

Non-PCD provision

   

175.1

     

127.6

     

0.86

                 

Adjusted (non-GAAP)

 

$

229.2

   

$

184.1

   

$

1.24

                 

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/webster-reports-first-quarter-2022-eps-of-0-14-adjusted-eps-of-1-24--301535198.html

SOURCE Webster Financial Corporation