WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited) |
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| At or for the Three Months Ended |
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(In thousands, except per share data) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Income and performance ratios: |
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Net income | $ 59,471 | $ 57,660 | $ 51,817 | $ 50,603 | $ 47,047 |
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Earnings applicable to common shareholders | 57,342 | 55,501 | 49,634 | 48,398 | 44,921 |
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Earnings per diluted common share | 0.62 | 0.60 | 0.54 | 0.53 | 0.49 |
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Return on average assets | 0.91 % | 0.89 % | 0.82 % | 0.81 % | 0.76 % |
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Return on average tangible common shareholders' equity (non-GAAP) | 12.47 | 12.31 | 11.24 | 11.25 | 10.63 |
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Return on average common shareholders' equity | 9.43 | 9.26 | 8.36 | 8.31 | 7.80 |
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Non-interest income as a percentage of total revenue | 24.65 | 27.60 | 26.93 | 26.89 | 26.15 |
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Asset quality: |
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Allowance for loan and lease losses | $ 199,107 | $ 194,320 | $ 187,925 | $ 180,428 | $ 174,201 |
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Nonperforming assets | 177,935 | 137,946 | 132,350 | 137,347 | 145,787 |
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Allowance for loan and lease losses / total loans and leases | 1.16 % | 1.14 % | 1.13 % | 1.11 % | 1.10 % |
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Net charge-offs / average loans and leases (annualized) | 0.13 | 0.15 | 0.16 | 0.19 | 0.41 |
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Nonperforming loans and leases / total loans and leases | 1.02 | 0.79 | 0.77 | 0.82 | 0.89 |
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Nonperforming assets / total loans and leases plus OREO | 1.04 | 0.81 | 0.80 | 0.84 | 0.92 |
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Allowance for loan and lease losses / nonperforming loans and leases | 114.54 | 144.98 | 146.57 | 135.75 | 123.79 |
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Other ratios: |
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Tangible equity (non-GAAP) | 7.82 % | 7.67 % | 7.74 % | 7.75 % | 7.63 % |
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Tangible common equity (non-GAAP) | 7.34 | 7.19 | 7.25 | 7.25 | 7.13 |
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Tier 1 risk-based capital (a) | 11.40 | 11.19 | 11.16 | 11.19 | 11.33 |
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Total risk-based capital (a) | 12.93 | 12.68 | 12.64 | 12.66 | 12.80 |
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Common equity tier 1 risk-based capital (a) | 10.73 | 10.52 | 10.48 | 10.50 | 10.61 |
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Shareholders' equity / total assets | 9.85 | 9.69 | 9.80 | 9.86 | 9.77 |
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Net interest margin | 3.22 | 3.11 | 3.10 | 3.08 | 3.11 |
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Efficiency ratio (non-GAAP) | 62.10 | 63.13 | 61.43 | 61.47 | 62.00 |
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Equity and share related: |
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Common equity | $ 2,437,648 | $ 2,404,302 | $ 2,388,919 | $ 2,354,256 | $ 2,312,076 |
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Book value per common share | 26.45 | 26.17 | 26.06 | 25.68 | 25.24 |
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Tangible book value per common share (non-GAAP) | 20.26 | 19.94 | 19.80 | 19.41 | 18.95 |
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Common stock closing price | 50.04 | 54.28 | 38.01 | 33.95 | 35.90 |
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Dividends declared per common share | 0.25 | 0.25 | 0.25 | 0.25 | 0.23 |
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Common shares issued and outstanding | 92,154 | 91,868 | 91,687 | 91,677 | 91,617 |
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Weighted-average common shares outstanding - Basic | 91,886 | 91,572 | 91,365 | 91,244 | 91,328 |
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Weighted-average common shares outstanding - Diluted | 92,342 | 92,099 | 91,857 | 91,745 | 91,809 |
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(a) Presented as projected for March 31, 2017 and actual for the remaining periods. |
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WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited) |
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(In thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 |
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Assets: |
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Cash and due from banks | $ 184,044 | $ 190,663 | $ 198,174 |
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Interest-bearing deposits | 38,150 | 29,461 | 27,805 |
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Securities: |
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Available for sale | 2,897,060 | 2,991,091 | 3,080,469 |
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Held to maturity | 4,212,050 | 4,160,658 | 4,012,289 |
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Total securities | 7,109,110 | 7,151,749 | 7,092,758 |
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Loans held for sale | 28,698 | 67,577 | 30,425 |
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Loans and Leases: |
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Commercial | 5,639,244 | 5,576,560 | 4,975,332 |
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Commercial real estate | 4,530,507 | 4,510,846 | 4,046,911 |
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Residential mortgages | 4,290,685 | 4,254,682 | 4,109,243 |
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Consumer | 2,634,063 | 2,684,500 | 2,726,869 |
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Total loans and leases | 17,094,499 | 17,026,588 | 15,858,355 |
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Allowance for loan and lease losses | (199,107) | (194,320) | (174,201) |
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Loans and leases, net | 16,895,392 | 16,832,268 | 15,684,154 |
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Federal Home Loan Bank and Federal Reserve Bank stock | 163,557 | 194,646 | 188,347 |
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Premises and equipment, net | 134,551 | 137,413 | 134,212 |
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Goodwill and other intangible assets, net | 570,992 | 572,047 | 576,145 |
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Cash surrender value of life insurance policies | 521,427 | 517,852 | 506,746 |
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Deferred tax asset, net | 76,869 | 84,391 | 81,191 |
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Accrued interest receivable and other assets | 280,126 | 294,462 | 412,134 |
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Total Assets | $ 26,002,916 | $ 26,072,529 | $ 24,932,091 |
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Liabilities and Shareholders' Equity: |
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Deposits: |
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Demand | $ 3,913,058 | $ 4,021,061 | $ 3,625,605 |
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Interest-bearing checking | 2,607,060 | 2,528,274 | 2,421,692 |
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Health savings accounts | 4,793,734 | 4,362,503 | 4,084,190 |
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Money market | 2,452,726 | 2,047,121 | 2,319,588 |
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Savings | 4,456,980 | 4,320,090 | 4,244,383 |
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Certificates of deposit | 1,718,193 | 1,724,906 | 1,727,934 |
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Brokered certificates of deposit | 299,906 | 299,902 | 301,131 |
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Total deposits | 20,241,657 | 19,303,857 | 18,724,523 |
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Securities sold under agreements to repurchase and other borrowings | 807,573 | 949,526 | 910,149 |
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Federal Home Loan Bank advances | 1,922,832 | 2,842,908 | 2,363,131 |
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Long-term debt | 225,577 | 225,514 | 225,323 |
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Accrued expenses and other liabilities | 244,919 | 223,712 | 274,179 |
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Total liabilities | 23,442,558 | 23,545,517 | 22,497,305 |
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Preferred stock | 122,710 | 122,710 | 122,710 |
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Common shareholders' equity | 2,437,648 | 2,404,302 | 2,312,076 |
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Total shareholders' equity | 2,560,358 | 2,527,012 | 2,434,786 |
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Total Liabilities and Shareholders' Equity | $ 26,002,916 | $ 26,072,529 | $ 24,932,091 |
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WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited) |
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| Three Months Ended March 31, |
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(In thousands, except per share data) |
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| 2017 | 2016 |
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Interest income: |
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Interest and fees on loans and leases |
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| $ 167,808 | $ 149,808 |
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Interest and dividends on securities |
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| 51,556 | 52,254 |
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Loans held for sale |
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| 316 | 273 |
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Total interest income |
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| 219,680 | 202,335 |
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Interest expense: |
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Deposits |
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| 13,435 | 12,299 |
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Borrowings |
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| 13,581 | 13,884 |
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Total interest expense |
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| 27,016 | 26,183 |
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Net interest income |
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| 192,664 | 176,152 |
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Provision for loan and lease losses |
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| 10,500 | 15,600 |
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Net interest income after provision for loan and lease losses |
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| 182,164 | 160,552 |
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Non-interest income: |
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Deposit service fees |
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| 37,006 | 34,925 |
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Loan and lease related fees |
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| 7,208 | 5,044 |
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Wealth and investment services |
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| 7,273 | 7,195 |
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Mortgage banking activities |
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| 2,266 | 3,260 |
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Increase in cash surrender value of life insurance policies |
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| 3,575 | 3,653 |
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Gain on investment securities, net |
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| — | 320 |
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Other income |
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| 5,714 | 8,126 |
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| 63,042 | 62,523 |
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Impairment loss on securities recognized in earnings |
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| — | (149) |
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Total non-interest income |
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| 63,042 | 62,374 |
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Non-interest expense: |
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Compensation and benefits |
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| 88,276 | 80,710 |
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Occupancy |
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| 16,179 | 15,069 |
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Technology and equipment |
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| 21,608 | 19,938 |
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Marketing |
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| 5,441 | 4,924 |
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Professional and outside services |
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| 4,276 | 2,811 |
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Intangible assets amortization |
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| 1,055 | 1,554 |
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Loan workout expenses |
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| 608 | 965 |
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Deposit insurance |
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| 6,732 | 6,786 |
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Other expenses |
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| 19,609 | 19,688 |
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Total non-interest expense |
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| 163,784 | 152,445 |
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Income before income taxes |
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| 81,422 | 70,481 |
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Income tax expense |
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| 21,951 | 23,434 |
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Net income |
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| 59,471 | 47,047 |
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Preferred stock dividends and other |
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| (2,129) | (2,126) |
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Earnings applicable to common shareholders |
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| $ 57,342 | $ 44,921 |
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Weighted-average common shares outstanding - Diluted |
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| 92,342 | 91,809 |
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Earnings per common share: |
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Basic |
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| $ 0.62 | $ 0.49 |
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Diluted |
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| 0.62 | 0.49 |
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WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited) |
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| Three Months Ended |
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(In thousands, except per share data) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Interest income: |
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Interest and fees on loans and leases | $ 167,808 | $ 161,978 | $ 157,071 | $ 152,171 | $ 149,808 |
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Interest and dividends on securities | 51,556 | 49,011 | 48,204 | 49,967 | 52,254 |
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Loans held for sale | 316 | 443 | 440 | 293 | 273 |
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Total interest income | 219,680 | 211,432 | 205,715 | 202,431 | 202,335 |
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Interest expense: |
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Deposits | 13,435 | 12,591 | 12,594 | 12,374 | 12,299 |
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Borrowings | 13,581 | 13,582 | 12,924 | 13,152 | 13,884 |
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Total interest expense | 27,016 | 26,173 | 25,518 | 25,526 | 26,183 |
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Net interest income | 192,664 | 185,259 | 180,197 | 176,905 | 176,152 |
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Provision for loan and lease losses | 10,500 | 12,500 | 14,250 | 14,000 | 15,600 |
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Net interest income after provision for loan and lease losses | 182,164 | 172,759 | 165,947 | 162,905 | 160,552 |
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Non-interest income: |
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Deposit service fees | 37,006 | 35,132 | 35,734 | 34,894 | 34,925 |
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Loan and lease related fees | 7,208 | 6,018 | 9,253 | 6,266 | 5,044 |
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Wealth and investment services | 7,273 | 6,970 | 7,593 | 7,204 | 7,195 |
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Mortgage banking activities | 2,266 | 3,300 | 4,322 | 3,753 | 3,260 |
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Increase in cash surrender value of life insurance policies | 3,575 | 3,699 | 3,743 | 3,664 | 3,653 |
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Gain on investment securities, net | — | — | — | 94 | 320 |
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Other income | 5,714 | 15,498 | 5,767 | 9,200 | 8,126 |
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| 63,042 | 70,617 | 66,412 | 65,075 | 62,523 |
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Impairment loss on securities recognized in earnings | — | — | — | — | (149) |
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Total non-interest income | 63,042 | 70,617 | 66,412 | 65,075 | 62,374 |
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Non-interest expense: |
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Compensation and benefits | 88,276 | 88,038 | 83,148 | 80,231 | 80,710 |
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Occupancy | 16,179 | 16,195 | 15,004 | 14,842 | 15,069 |
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Technology and equipment | 21,608 | 20,815 | 19,753 | 19,376 | 19,938 |
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Marketing | 5,441 | 5,488 | 4,622 | 4,669 | 4,924 |
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Professional and outside services | 4,276 | 3,441 | 4,795 | 3,754 | 2,811 |
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Intangible assets amortization | 1,055 | 1,082 | 1,493 | 1,523 | 1,554 |
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Loan workout expenses | 608 | 378 | 1,133 | 530 | 965 |
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Deposit insurance | 6,732 | 6,410 | 6,177 | 6,633 | 6,786 |
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Other expenses | 19,609 | 20,024 | 19,972 | 21,220 | 19,688 |
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Total non-interest expense | 163,784 | 161,871 | 156,097 | 152,778 | 152,445 |
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Income before income taxes | 81,422 | 81,505 | 76,262 | 75,202 | 70,481 |
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Income tax expense | 21,951 | 23,845 | 24,445 | 24,599 | 23,434 |
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Net income | 59,471 | 57,660 | 51,817 | 50,603 | 47,047 |
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Preferred stock dividends and other | (2,129) | (2,159) | (2,183) | (2,205) | (2,126) |
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Earnings applicable to common shareholders | $ 57,342 | $ 55,501 | $ 49,634 | $ 48,398 | $ 44,921 |
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Weighted-average common shares outstanding - Diluted | 92,342 | 92,099 | 91,857 | 91,745 | 91,809 |
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Earnings per common share: |
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Basic | $ 0.62 | $ 0.61 | $ 0.54 | $ 0.53 | $ 0.49 |
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Diluted | 0.62 | 0.60 | 0.54 | 0.53 | 0.49 |
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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, |
| 2017 |
| 2016 |
(Dollars in thousands) | Average balance | Interest | Yield/rate |
| Average balance | Interest | Yield/rate |
Assets: |
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Interest-earning assets: |
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Loans and leases | $ 17,041,156 | $ 168,729 | 3.97 % |
| $ 15,798,897 | $ 150,536 | 3.79 % |
Securities (a) | 7,071,274 | 52,851 | 2.98 |
| 6,895,407 | 53,012 | 3.07 |
Federal Home Loan and Federal Reserve Bank stock | 182,211 | 1,687 | 3.76 |
| 188,347 | 1,417 | 3.03 |
Interest-bearing deposits | 68,157 | 130 | 0.77 |
| 57,337 | 72 | 0.49 |
Loans held for sale | 36,239 | 316 | 3.49 |
| 26,623 | 273 | 4.10 |
Total interest-earning assets | 24,399,037 | $ 223,713 | 3.67 % |
| 22,966,611 | $ 205,310 | 3.56 % |
Non-interest-earning assets (b) | 1,642,732 |
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| 1,822,608 |
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Total Assets | $ 26,041,769 |
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| $ 24,789,219 |
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Liabilities and Shareholders' Equity: |
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Interest-bearing liabilities: |
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Demand deposits | $ 3,935,232 | $ — | —% |
| $ 3,665,928 | $ — | —% |
Savings, interest checking, and money market deposits | 14,060,535 | 7,780 | 0.22 |
| 12,761,677 | 6,615 | 0.21 |
Certificates of deposit | 2,022,522 | 5,655 | 1.13 |
| 2,057,650 | 5,684 | 1.11 |
Total deposits | 20,018,289 | 13,435 | 0.27 |
| 18,485,255 | 12,299 | 0.27 |
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Securities sold under agreements to repurchase and other borrowings | 905,239 | 3,540 | 1.56 |
| 1,048,997 | 4,173 | 1.57 |
Federal Home Loan Bank advances | 2,136,804 | 7,493 | 1.40 |
| 2,337,746 | 7,247 | 1.23 |
Long-term debt | 225,541 | 2,548 | 4.52 |
| 226,191 | 2,464 | 4.36 |
Total borrowings | 3,267,584 | 13,581 | 1.66 |
| 3,612,934 | 13,884 | 1.52 |
Total interest-bearing liabilities | 23,285,873 | $ 27,016 | 0.47 % |
| 22,098,189 | $ 26,183 | 0.47 % |
Non-interest-bearing liabilities (b) | 196,542 |
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| 258,476 |
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Total liabilities | 23,482,415 |
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| 22,356,665 |
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Preferred stock | 122,710 |
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| 122,710 |
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Common shareholders' equity | 2,436,644 |
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| 2,309,844 |
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Total shareholders' equity (b) | 2,559,354 |
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| 2,432,554 |
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Total Liabilities and Shareholders' Equity | $ 26,041,769 |
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| $ 24,789,219 |
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Tax-equivalent net interest income |
| 196,697 |
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| 179,127 |
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Less: tax-equivalent adjustments |
| (4,033) |
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| (2,975) |
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Net interest income |
| $ 192,664 |
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| $ 176,152 |
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Net interest margin |
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| 3.22 % |
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| 3.11 % |
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(a) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance. |
(b) Previously reported 2016 average balance has been modified to reflect immaterial correction to HSA Bank results. |
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WEBSTER FINANCIAL CORPORATION Five Quarter Loan and Lease Balances (unaudited) |
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(Dollars in thousands) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Loan and Lease Balances (actuals): |
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Commercial non-mortgage | $ 4,171,246 | $ 4,135,625 | $ 3,976,931 | $ 3,798,436 | $ 3,607,176 |
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Equipment financing | 619,861 | 635,629 | 621,696 | 618,343 | 596,572 |
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Asset-based lending | 848,137 | 805,306 | 802,871 | 779,046 | 771,584 |
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Commercial real estate | 4,530,507 | 4,510,846 | 4,280,513 | 4,191,087 | 4,046,911 |
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Residential mortgages | 4,290,685 | 4,254,682 | 4,234,047 | 4,156,665 | 4,109,243 |
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Consumer | 2,634,063 | 2,684,500 | 2,707,343 | 2,728,452 | 2,726,869 |
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Total Loan and Lease Balances (actuals) | 17,094,499 | 17,026,588 | 16,623,401 | 16,272,029 | 15,858,355 |
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Allowance for loan and lease losses | (199,107) | (194,320) | (187,925) | (180,428) | (174,201) |
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Loans and Leases, net | $ 16,895,392 | $ 16,832,268 | $ 16,435,476 | $ 16,091,601 | $ 15,684,154 |
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Loan and Lease Balances (average): |
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|
|
|
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Commercial non-mortgage | $ 4,148,625 | $ 4,053,728 | $ 3,921,609 | $ 3,726,394 | $ 3,605,483 |
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Equipment financing | 625,306 | 630,546 | 615,473 | 607,259 | 600,123 |
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Asset-based lending | 845,269 | 780,587 | 744,319 | 765,605 | 750,328 |
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Commercial real estate | 4,479,379 | 4,343,949 | 4,224,602 | 4,099,855 | 4,019,260 |
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Residential mortgages | 4,279,662 | 4,252,106 | 4,200,357 | 4,137,879 | 4,101,396 |
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Consumer | 2,662,915 | 2,694,492 | 2,717,282 | 2,742,356 | 2,722,307 |
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Total Loan and Lease Balances (average) | 17,041,156 | 16,755,408 | 16,423,642 | 16,079,348 | 15,798,897 |
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Allowance for loan and lease losses | (198,308) | (192,565) | (185,886) | (180,835) | (179,911) |
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Loans and Leases, net | $ 16,842,848 | $ 16,562,843 | $ 16,237,756 | $ 15,898,513 | $ 15,618,986 |
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Note: The presentation of loan information above, and on the tables that follow, no longer presents liquidating portfolio information separately. |
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WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets (unaudited) |
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(Dollars in thousands) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Nonperforming loans and leases: |
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|
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Commercial non-mortgage | $ 74,483 | $ 38,550 | $ 27,398 | $ 28,700 | $ 32,517 |
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Equipment financing | 703 | 225 | 202 | 480 | 868 |
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Asset-based lending | — | — | — | — | — |
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Commercial real estate | 9,793 | 10,521 | 14,379 | 13,923 | 15,381 |
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Residential mortgages | 46,792 | 47,201 | 49,117 | 52,437 | 53,700 |
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Consumer | 42,054 | 37,538 | 37,122 | 37,372 | 38,256 |
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Total nonperforming loans and leases | $ 173,825 | $ 134,035 | $ 128,218 | $ 132,912 | $ 140,722 |
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Other real estate owned and repossessed assets: |
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Commercial | $ — | $ — | $ 308 | $ — | $ — |
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Repossessed equipment | 82 | — | 70 | 220 | 342 |
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Residential | 2,296 | 2,625 | 2,987 | 3,395 | 3,329 |
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Consumer | 1,732 | 1,286 | 767 | 820 | 1,394 |
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Total other real estate owned and repossessed assets | $ 4,110 | $ 3,911 | $ 4,132 | $ 4,435 | $ 5,065 |
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Total nonperforming assets | $ 177,935 | $ 137,946 | $ 132,350 | $ 137,347 | $ 145,787 |
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WEBSTER FINANCIAL CORPORATION Five Quarter Past Due Loans and Leases (unaudited) |
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(Dollars in thousands) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Past due 30-89 days: |
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|
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|
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Commercial non-mortgage | $ 1,685 | $ 1,949 | $ 2,522 | $ 2,050 | $ 7,265 |
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Equipment financing | 1,298 | 1,596 | 3,477 | 404 | 594 |
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Asset-based lending | — | — | — | — | — |
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Commercial real estate | 2,072 | 8,173 | 1,229 | 3,017 | 20,730 |
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Residential mortgages | 11,530 | 11,202 | 11,081 | 9,632 | 10,456 |
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Consumer | 14,762 | 18,293 | 15,449 | 13,845 | 13,233 |
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Total past due 30-89 days | 31,347 | 41,213 | 33,758 | 28,948 | 52,278 |
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Past due 90 days or more and accruing | 747 | 749 | 5,459 | 5,738 | 3,391 |
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Total past due loans and leases | $ 32,094 | $ 41,962 | $ 39,217 | $ 34,686 | $ 55,669 |
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WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Loan and Lease Losses (unaudited) |
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| For the Three Months Ended |
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(Dollars in thousands) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Beginning balance | $ 194,320 | $ 187,925 | $ 180,428 | $ 174,201 | $ 174,990 |
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Provision | 10,500 | 12,500 | 14,250 | 14,000 | 15,600 |
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Charge-offs: |
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Commercial non-mortgage | 123 | 1,067 | 2,561 | 3,525 | 11,208 |
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Equipment financing | 185 | 44 | 300 | 70 | 151 |
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Asset-based lending | — | — | — | — | — |
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Commercial real estate | 102 | 161 | — | 995 | 1,526 |
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Residential mortgages | 732 | 1,099 | 1,304 | 638 | 1,594 |
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Consumer | 6,474 | 6,433 | 5,259 | 4,556 | 4,421 |
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Total charge-offs | 7,616 | 8,804 | 9,424 | 9,784 | 18,900 |
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Recoveries: |
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Commercial non-mortgage | 322 | 439 | 370 | 315 | 455 |
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Equipment financing | 14 | 95 | 240 | 156 | 45 |
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Asset-based lending | — | 44 | — | 1 | 2 |
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Commercial real estate | 7 | 151 | 194 | 212 | 74 |
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Residential mortgages | 237 | 348 | 554 | 133 | 721 |
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Consumer | 1,323 | 1,622 | 1,313 | 1,194 | 1,214 |
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Total recoveries | 1,903 | 2,699 | 2,671 | 2,011 | 2,511 |
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Total net charge-offs | 5,713 | 6,105 | 6,753 | 7,773 | 16,389 |
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Ending balance | $ 199,107 | $ 194,320 | $ 187,925 | $ 180,428 | $ 174,201 |
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WEBSTER FINANCIAL CORPORATION Reconciliations to GAAP Financial Measures |
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The Company evaluates its business based on certain ratios that utilize tangible equity, a non-GAAP financial measure. Return on average tangible common shareholders' equity measures the Company's net income available to common shareholders, adjusted for the tax-affected 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. |
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The efficiency ratio, which measures the costs expended to generate a dollar of revenue, is calculated excluding foreclosed property expense, amortization of intangibles, gain or loss on securities, and other non-recurring items. Core deposits express total deposits less time deposits. Accordingly, these are also non-GAAP financial measures. |
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The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Company. Other companies may define or calculate supplemental financial data differently. See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP. |
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| At or for the Three Months Ended |
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(In thousands, except per share data) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
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Return on average tangible common shareholders' equity: |
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Net income (GAAP) | $ 59,471 | $ 57,660 | $ 51,817 | $ 50,603 | $ 47,047 |
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Less: Preferred stock dividends (GAAP) | 2,024 | 2,024 | 2,024 | 2,024 | 2,024 |
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Add: Intangible assets amortization, tax-affected at 35% (GAAP) | 686 | 703 | 970 | 990 | 1,010 |
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Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP) | $ 58,133 | $ 56,339 | $ 50,763 | $ 49,569 | $ 46,033 |
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Income adjusted for preferred stock dividends and intangible assets amortization, annualized basis (non-GAAP) | $ 232,532 | $ 225,356 | $ 203,052 | $ 198,276 | $ 184,132 |
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Average shareholders' equity (non-GAAP) | $ 2,559,354 | $ 2,526,099 | $ 2,503,960 | $ 2,460,763 | $ 2,432,554 |
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Less: Average preferred stock (non-GAAP) | 122,710 | 122,710 | 122,710 | 122,710 | 122,710 |
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Average goodwill and other intangible assets (non-GAAP) | 571,611 | 572,682 | 573,978 | 575,483 | 577,029 |
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Average tangible common shareholders' equity (non-GAAP) | $ 1,865,033 | $ 1,830,707 | $ 1,807,272 | $ 1,762,570 | $ 1,732,815 |
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Return on average tangible common shareholders' equity (non-GAAP) | 12.47 % | 12.31 % | 11.24 % | 11.25 % | 10.63 % |
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Efficiency ratio: |
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Non-interest expense (GAAP) | $ 163,784 | $ 161,871 | $ 156,097 | $ 152,778 | $ 152,445 |
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Less: Foreclosed property activity (GAAP) | 74 | (90) | 45 | (123) | (158) |
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Intangible assets amortization (GAAP) | 1,055 | 1,082 | 1,493 | 1,523 | 1,554 |
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Other expenses (non-GAAP) | 1,123 | 1,243 | 793 | 260 | 1,217 |
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Non-interest expense (non-GAAP) | $ 161,532 | $ 159,636 | $ 153,766 | $ 151,118 | $ 149,832 |
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Net interest income (GAAP) | $ 192,664 | $ 185,259 | $ 180,197 | $ 176,905 | $ 176,152 |
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Add: Tax-equivalent adjustment (non-GAAP) | 4,033 | 3,902 | 3,478 | 3,282 | 2,975 |
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Non-interest income (GAAP) | 63,042 | 70,617 | 66,412 | 65,075 | 62,374 |
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Less: Gain on investment securities, net (GAAP) | — | — | — | 94 | 320 |
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Other (non-GAAP) | (391) | (408) | (236) | (655) | (481) |
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One-time gain on the sale of an asset (GAAP) | — | (7,331) | — | — | — |
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Income (non-GAAP) | $ 260,130 | $ 252,855 | $ 250,323 | $ 245,823 | $ 241,662 |
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Efficiency ratio (non-GAAP) | 62.10 % | 63.13 % | 61.43 % | 61.47 % | 62.00 % |
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Tangible equity: |
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Shareholders' equity (GAAP) | $ 2,560,358 | $ 2,527,012 | $ 2,511,629 | $ 2,476,966 | $ 2,434,786 |
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Less: Goodwill and other intangible assets (GAAP) | 570,992 | 572,047 | 573,129 | 574,622 | 576,145 |
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Tangible shareholders' equity (non-GAAP) | $ 1,989,366 | $ 1,954,965 | $ 1,938,500 | $ 1,902,344 | $ 1,858,641 |
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Total assets (GAAP) | $ 26,002,916 | $ 26,072,529 | $ 25,633,617 | $ 25,120,466 | $ 24,932,091 |
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Less: Goodwill and other intangible assets (GAAP) | 570,992 | 572,047 | 573,129 | 574,622 | 576,145 |
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Tangible assets (non-GAAP) | $ 25,431,924 | $ 25,500,482 | $ 25,060,488 | $ 24,545,844 | $ 24,355,946 |
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Tangible equity (non-GAAP) | 7.82 % | 7.67 % | 7.74 % | 7.75 % | 7.63 % |
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Tangible common equity: |
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|
|
|
|
|
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Tangible shareholders' equity (non-GAAP) | $ 1,989,366 | $ 1,954,965 | $ 1,938,500 | $ 1,902,344 | $ 1,858,641 |
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Less: Preferred stock (GAAP) | 122,710 | 122,710 | 122,710 | 122,710 | 122,710 |
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Tangible common shareholders' equity (non-GAAP) | $ 1,866,656 | $ 1,832,255 | $ 1,815,790 | $ 1,779,634 | $ 1,735,931 |
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|
Tangible assets (non-GAAP) | $ 25,431,924 | $ 25,500,482 | $ 25,060,488 | $ 24,545,844 | $ 24,355,946 |
|
|
Tangible common equity (non-GAAP) | 7.34 % | 7.19 % | 7.25 % | 7.25 % | 7.13 % |
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Tangible book value per common share: |
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|
Tangible common shareholders' equity (non-GAAP) | $ 1,866,656 | $ 1,832,255 | $ 1,815,790 | $ 1,779,634 | $ 1,735,931 |
|
|
Common shares outstanding | 92,154 | 91,868 | 91,687 | 91,677 | 91,617 |
|
|
Tangible book value per common share (non-GAAP) | $ 20.26 | $ 19.94 | $ 19.80 | $ 19.41 | $ 18.95 |
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Core deposits: |
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|
|
|
|
|
|
|
|
|
|
|
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|
|
Total deposits | $ 20,241,657 | $ 19,303,857 | $ 19,200,908 | $ 18,828,468 | $ 18,724,523 |
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Less: Certificates of deposit | 1,718,193 | 1,724,906 | 1,721,056 | 1,701,307 | 1,727,934 |
|
|
Brokered certificates of deposit | 299,906 | 299,902 | 299,887 | 299,883 | 301,131 |
|
|
Core deposits (non-GAAP) | $ 18,223,558 | $ 17,279,049 | $ 17,179,965 | $ 16,827,278 | $ 16,695,458 |
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