Webster Financial Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Total Net Charge-Offs for the Quarter Ended December 31, 2017; Provides Earnings Guidance for the First Quarter of 2018
January 23, 2018 at 06:00 pm IST
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Webster Financial Corp. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total interest income of $236,115,000 compared to $211,432,000 a year ago. Net interest income was $204,932,000 compared to $185,259,000 a year ago. Income before income taxes was $86,922,000 compared to $81,505,000 a year ago. Net income was $69,893,000 compared to $57,660,000 a year ago. Earnings available to common shareholders was $67,710,000 or $0.73 per diluted share compared to $55,501,000 or $0.60 per diluted share a year ago. Return on average tangible common shareholders' equity (non-GAAP) was 13.85% against 12.31% a year ago. Adjusted net income was $67.6 million, up 5% from prior quarter and 17% from prior year. Adjusted earnings per share were $0.71. Net interest income after provision for loan and lease losses was $191,932,000 compared to $172,759,000 a year ago.
For the year, the company reported total interest income of $913,605,000 compared to $821,913,000 a year ago. Net interest income was $796,287,000 compared to $718,513,000 a year ago. Income before income taxes was $353,790,000 compared to $303,450,000 a year ago. Net income was $255,439,000 compared to $207,127,000 a year ago. Net income available to common shareholders was $246,831,000 or $2.67 per diluted share compared to $198,423,000 or $2.16 per diluted share a year ago. Book value and tangible book value per common share were $27.76 and $21.59 respectively, compared to $26.17 and $19.94, respectively, at December 31, 2016. Net interest income after provision for loan and lease losses was $755,387,000 compared to $662,163,000 a year ago.
For the quarter ended December 31, 2017, the company reported total net charge-offs of $14,809,000 compared to $6,105,000 a year ago. The increase in net charge-offs is primarily due to an increase in commercial charge-offs.
The company provided earnings guidance for the first quarter of 2018. The company expects average loan growth to be in a range of 1% to 2%. The company expects average interest-earning assets to grow approximately 1%, as securities remain relatively flat. The company expects NIM to be up 5 to 7 basis points. Given earning asset and NIM expectations, the company expects net interest income to increase between $5 million and $7 million. The company expects tax rate on a non-FTE basis to be approximately 21%, which, of course, takes into account the new lower corporate statutory tax rate.
Webster Financial Corporation is the holding company for Webster Bank, N.A. and its HSA Bank division. The Company's segments include Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment serves businesses with more than two million dollars of revenue through its commercial real estate and equipment finance, business banking, asset-based lending and commercial services, private banking, treasury management and other business units. The HSA Bank segment offers a comprehensive consumer-directed employee benefit and healthcare solution that includes health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefits. The Consumer Banking segment operates a distribution network, throughout southern New England and the New York metro and suburban markets, that comprises approximately 198 banking centers and 349 automated teller machines, a customer care center and a full range of Web and mobile-based banking services.
Webster Financial Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Total Net Charge-Offs for the Quarter Ended December 31, 2017; Provides Earnings Guidance for the First Quarter of 2018