WATERBURY, Conn., Jan. 21, 2016 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common shareholders of $50.6 million, or $0.55 per diluted share, for the quarter ended December 31, 2015 compared to $48.4 million, or $0.53 per diluted share, for the quarter ended December 31, 2014.
For the full year 2015, net income available to common shareholders was $197.6 million, or $2.15 per diluted share, compared to $189.2 million, or $2.08 per diluted share, for the full year 2014.
"Webster's record net income for the fourth quarter and full year 2015 showcase our sustained progress in executing growth strategies that maximize value to customers and shareholders," said James C. Smith, chairman and chief executive officer. "Record quarterly loan originations and net interest margin expansion helped produce our 25(th) consecutive quarter of year-over-year core revenue growth. Record full year 2015 loan originations of $5.6 billion were 19 percent higher than a year ago, as Webster bankers excelled in service to our customers and communities."
Highlights for the fourth quarter of 2015 compared to the fourth quarter of 2014:
-- Record quarterly pre-provision net revenue of $90.3 million, an increase of 4.2 percent. -- Loan growth of $1.8 billion, or 12.8 percent, with double-digit growth in commercial, commercial real estate and residential mortgage loans. -- Deposit growth of $2.3 billion, or 14.7 percent, primarily reflecting HSA Bank's strong organic growth and its January 2015 acquisition. -- Record core revenue of $233.6 million, an increase of 9.1 percent, including a record level of net interest income of $173.3 million. -- Efficiency ratio of 59.87 percent represents the eleventh consecutive quarter at or below 60 percent. -- Annualized return on average tangible common shareholders' equity of 11.99 percent.
"We've now achieved eleven consecutive quarters with the efficiency ratio at or below 60 percent," said Glenn MacInnes, executive vice president and chief financial officer. "We've accomplished this even as we continue to invest in our future."
Quarterly net interest income compared to the fourth quarter of 2014:
-- Net interest income was $173.3 million compared to $160.6 million. -- Net interest margin was 3.08 percent compared to 3.17 percent. The yield on interest-earning assets declined by 10 basis points, while the cost of funds declined by 2 basis points. -- Net interest margin increased 4 basis points on a linked-quarter basis. -- Average interest-earning assets totaled $22.7 billion and grew by $2.2 billion, or 10.8 percent. -- Average loans grew by $1.7 billion, or 12.7 percent.
Quarterly provision for loan losses:
-- The Company recorded a provision for loan losses of $13.8 million compared to $13.0 million in the third quarter and $9.5 million a year ago. The increase compared to each period primarily reflects continued growth in the loan portfolio. -- Net charge-offs were $11.8 million compared to $7.9 million in the prior quarter and $6.7 million a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.31 percent compared to 0.21 percent in the prior quarter and 0.20 percent a year ago. The increase in net charge-offs was primarily in the commercial segment. -- The allowance for loan losses represented 1.12 percent of total loans compared to 1.14 percent at September 30, 2015 and 1.15 percent at December 31, 2014. The allowance for loan losses represented 125 percent of nonperforming loans compared to 109 percent at September 30 and 123 percent a year ago.
Quarterly non-interest income compared to the fourth quarter of 2014:
-- Total non-interest income was $60.3 million compared to $53.8 million, an increase of $6.6 million. Excluding securities gains and other-than-temporary impairment charges, a year-over-year increase of $6.7 million in core non-interest income reflects increases of $8.3 million in deposit service fees related to HSA Bank and $1.3 million in mortgage banking activities, offset by decreases of $2.5 million in loan related fees and $0.5 million in wealth and investment services.
Quarterly non-interest expense compared to the fourth quarter of 2014:
-- Total non-interest expense was $143.2 million compared to $130.2 million, an increase of $13.0 million. -- Non-interest expense, excluding one-time costs, increased $15.8 million with $8.9 million of the increase related to HSA Bank. The remaining $6.9 million increase reflects higher compensation expense, professional and outside services, and other.
Quarterly income taxes compared to the fourth quarter of 2014:
-- Income tax expense was $24.1 million compared to $23.8 million. The effective tax rate was 31.5 percent compared to 31.8 percent, and the current quarter included a $1.2 million net tax benefit specific to the period compared to $0.1 million a year ago.
Investment securities:
-- Total investment securities were $6.9 billion compared to $7.0 billion at September 30, 2015 and $6.7 billion a year ago. The carrying value of the available-for-sale portfolio included $10.3 million of net unrealized losses compared to net unrealized gains of $16.0 million at September 30 and $25.9 million a year ago, while the carrying value of the held-to-maturity portfolio does not reflect $38.5 million of net unrealized gains compared to $72.3 million at September 30 and $75.8 million a year ago.
Loans:
-- Total loans were $15.7 billion compared to $15.2 billion at September 30, 2015 and $13.9 billion a year ago. Compared to September 30, commercial, commercial real estate, consumer, and residential mortgage loans increased by $223.7 million, $134.5 million, $51.9 million, and $45.2 million, respectively. -- Compared to a year ago, commercial, residential mortgage, commercial real estate, and consumer loans increased by $629.5 million, $551.8 million, $437.2 million, and $153.2 million, respectively. -- Loan originations for portfolio were $1.534 billion compared to $1.207 billion in the third quarter and $1.378 billion a year ago. In addition, $98 million of residential loans were originated for sale in the quarter compared to $117 million in the prior quarter and $87 million a year ago.
Asset quality:
-- Past due loans were $39.2 million compared to $41.3 million at September 30, 2015 and $42.3 million a year ago. Loans past due 90 days and still accruing decreased $0.2 million from the prior quarter and were flat to the prior year. -- Total nonperforming loans decreased to $139.9 million, or 0.89 percent of total loans, compared to $159.0 million, or 1.04 percent, at September 30 and $129.9 million, or 0.93 percent, a year ago. Total paying nonperforming loans were $48.7 million compared to $45.0 million at September 30 and $30.5 million a year ago.
Deposits and borrowings:
-- Total deposits were $18.0 billion compared to $17.6 billion at September 30, 2015 and $15.7 billion a year ago. Core to total deposits were 88.4 percent compared to 88.3 percent at September 30 and 85.5 percent a year ago. Loans to deposits were 87.3 percent compared to 86.5 percent at September 30 and 88.8 percent a year ago. -- Total borrowings were $4.0 billion compared to $3.8 billion at September 30 and $4.3 billion a year ago.
Capital:
-- The return on average tangible common shareholders' equity and the return on average common shareholders' equity were 11.99 percent and 8.79 percent, respectively, compared to 11.74 percent and 8.84 percent, respectively, in the fourth quarter of 2014. -- The tangible equity and tangible common equity ratios were 7.63 percent and 7.12 percent, respectively, compared to 8.14 percent and 7.45 percent, respectively, at December 31, 2014. The common equity tier 1 risk-based capital ratio was 10.71 percent compared to 11.43 percent a year ago. -- Book value and tangible book value per common share were $25.01 and $18.71, respectively, compared to $23.99 and $18.10, respectively, a year ago.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $24.7 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 178 banking centers and 353 ATMs, with an additional 2 banking centers scheduled to open soon in greater Boston (subject to regulatory approval). Webster also provides telephone banking, mobile banking, and Internet banking. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides health savings account trustee and administrative services. 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 2015 fourth quarter earnings announcement will be held today, Thursday, January 21, 2016 at 9:00 a.m. (Eastern) and may be heard through Webster's Investor Relations website at www.wbst.com, or in listen-only mode by calling 877-407-8289 or 201-689-8341 internationally. The call will be archived on the website and available for future retrieval.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements can be identified by words such as "believes," "anticipates," "expects," "intends," "targeted," "continue," "remain," "will," "should," "may," "plans," "estimates," and similar references to future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives, and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Webster's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; (2) volatility and disruption in national and international financial markets; (3) government intervention in the U.S. financial system; (4) changes in the level of nonperforming assets and charge-offs; (5) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (6) adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (7) inflation, interest rate, securities market, and monetary fluctuations; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by customers; (9) changes in consumer spending, borrowings, and savings habits; (10) technological changes and cyber-security matters; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, financial holding companies, and other financial services providers; (13) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; (15) the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (16) our success at managing the risks involved in the foregoing items and (17) 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 Operation." Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying selected financial highlights table.
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Media Contact Investor Contact Bob Guenther, 203-578-2391 Terry Mangan, 203-578-2318 rguenther@websterbank.com tmangan@websterbank.com
WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited) ---------------------------------------- At or for the Three Months Ended -------------------------------- (In thousands, except per share data) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Income and performance ratios (annualized): ----------------------------------- Net income $52,579 $51,536 $52,503 $49,722 $51,006 Net income available to common shareholders 50,555 49,512 50,479 47,083 48,367 Net income per diluted common share 0.55 0.54 0.55 0.52 0.53 Return on average assets 0.86 % 0.86 % 0.90 % 0.88 % 0.93 % Return on average tangible common shareholders' equity 11.99 11.89 12.49 11.82 11.74 Return on average common shareholders' equity 8.79 8.68 9.03 8.57 8.84 Non-interest income as a percentage of total revenue 25.82 26.78 26.80 26.60 25.08 Efficiency ratio 59.87 59.49 59.88 59.69 58.54 Asset quality: -------------- Allowance for loan and lease losses $174,990 $172,992 $167,860 $161,970 $159,264 Nonperforming assets 144,970 164,387 172,825 157,546 136,397 Allowance for loan and lease losses / total loans and leases 1.12 % 1.14 % 1.14 % 1.14 % 1.15 % Net charge-offs / average loans and leases (annualized) 0.31 0.21 0.19 0.20 0.20 Nonperforming loans and leases /total loans and leases 0.89 1.04 1.14 1.07 0.93 Nonperforming assets /total loans and leases plus OREO 0.92 1.08 1.17 1.10 0.98 Allowance for loan and lease losses / nonperforming loans and leases 125.05 108.80 100.00 106.39 122.62 Other ratios (annualized): -------------------------- Tangible equity 7.63 % 7.76 % 7.81 % 7.87 % 8.14 % Tangible common equity 7.12 7.24 7.27 7.20 7.45 Tier 1 risk-based capital (a), (b) 11.54 11.62 11.80 12.01 12.95 Total risk-based capital (a), (b) 12.91 13.02 13.21 13.44 14.06 Common equity tier 1 risk-based capital (a), (b) 10.71 10.78 10.94 10.93 11.43 Shareholders' equity /total assets 9.79 9.98 10.07 10.19 10.31 Net interest margin 3.08 3.04 3.05 3.10 3.17 Share and equity related: ------------------------- Common equity $2,292,861 $2,279,835 $2,256,985 $2,203,926 $2,171,166 Book value per common share 25.01 24.87 24.55 24.29 23.99 Tangible book value per common share 18.71 18.55 18.23 17.87 18.10 Common stock closing price 37.19 35.63 39.55 37.05 32.53 Dividends declared per common share 0.23 0.23 0.23 0.20 0.20 Common shares issued and outstanding 91,677 91,663 91,919 90,715 90,512 Basic shares (weighted average) 91,419 91,458 90,713 90,251 90,045 Diluted shares (weighted average) 91,956 92,007 91,302 90,841 90,741 (a) The ratios presented are projected for December 31, 2015 and actual for the remaining periods. (b) Calculated under the Basel III capital standard for the 2015 periods and under the Basel I capital standard for the 2014 period.
WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited) -------------------------------------- (In thousands) December 31, September 30, December 31, 2015 2015 2014 --- ---- ---- ---- Assets: Cash and due from banks $251,258 $251,898 $261,544 Interest-bearing deposits 155,907 19,257 132,695 Investment securities: Available for sale, at fair value 2,984,631 3,015,417 2,793,873 Held to maturity 3,923,052 3,951,208 3,872,955 --------- --------- --------- Total securities 6,907,683 6,966,625 6,666,828 Loans held for sale 37,091 38,331 67,952 Loans and Leases: Commercial 4,916,525 4,692,829 4,287,021 Commercial real estate 3,991,649 3,857,155 3,554,428 Residential mortgages 4,061,001 4,015,839 3,509,175 Consumer 2,702,560 2,650,702 2,549,401 --------- --------- --------- Total loans and leases 15,671,735 15,216,525 13,900,025 Allowance for loan and lease losses (174,990) (172,992) (159,264) -------- -------- -------- Loans and leases, net 15,496,745 15,043,533 13,740,761 Federal Home Loan Bank and Federal Reserve Bank stock 188,347 184,280 193,290 Premises and equipment, net 129,426 127,216 121,933 Goodwill and other intangible assets, net 577,699 579,287 532,553 Cash surrender value of life insurance policies 503,093 449,711 440,073 Deferred tax asset, net 101,578 84,743 73,873 Accrued interest receivable and other assets 328,993 324,901 301,670 ------- Total Assets $24,677,820 $24,069,782 $22,533,172 ----------- ----------- ----------- Liabilities and Equity: Deposits: Demand $3,713,063 $3,551,229 $3,598,872 Interest-bearing checking 2,369,971 2,183,267 2,155,047 Health savings accounts 3,802,313 3,643,557 1,824,799 Money market 1,933,460 2,186,383 1,908,522 Savings 4,047,817 3,956,054 3,892,778 Certificates of deposit 1,762,847 1,762,046 1,971,567 Brokered certificates of deposit 323,307 299,694 300,020 ------- ------- ------- Total deposits 17,952,778 17,582,230 15,651,605 Securities sold under agreements to repurchase and other borrowings 1,151,400 1,002,018 1,250,756 Federal Home Loan Bank advances 2,664,139 2,609,212 2,859,431 Long-term debt 226,356 226,327 226,237 Accrued expenses and other liabilities 267,576 247,450 222,328 ------- ------- ------- Total liabilities 22,262,249 21,667,237 20,210,357 ---------- ---------- ---------- Preferred stock 122,710 122,710 151,649 Common shareholders' equity 2,292,861 2,279,835 2,171,166 --------- --------- --------- Webster Financial Corporation shareholders' equity 2,415,571 2,402,545 2,322,815 --------- --------- --------- Total Liabilities and Equity $24,677,820 $24,069,782 $22,533,172 ----------- ----------- -----------
WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited) -------------------------------------------- Three Months Ended December 31, Twelve Months Ended December 31, ------------------------------- -------------------------------- (In thousands, except per share data) 2015 2014 2015 2014 (a) --------------------- ---- ---- ---- ------- Interest income: Interest and fees on loans and leases $145,504 $132,604 $552,441 $511,612 Interest and dividends on securities 52,365 50,921 206,009 206,472 Loans held for sale 291 226 1,590 857 Total interest income 198,160 183,751 760,040 718,941 ------- ------- ------- ------- Interest expense: Deposits 11,476 11,322 46,031 44,162 Borrowings 13,344 11,781 49,384 46,338 Total interest expense 24,820 23,103 95,415 90,500 ------ ------ ------ ------ Net interest income 173,340 160,648 664,625 628,441 Provision for loan and lease losses 13,800 9,500 49,300 37,250 Net interest income after provision for loan and lease losses 159,540 151,148 615,325 591,191 ------- ------- ------- ------- Non-interest income: Deposit service fees 34,231 25,928 136,578 103,431 Loan and lease related fees 5,881 8,361 25,594 23,212 Wealth and investment services 8,052 8,517 32,486 34,946 Mortgage banking activities 2,276 977 7,795 4,070 Increase in cash surrender value of life insurance policies 3,383 3,278 13,020 13,178 Net gain on investment securities 80 1,121 609 5,499 Other income 6,474 6,492 23,573 18,917 60,377 54,674 239,655 203,253 Loss on write-down of investment securities to fair value (28) (899) (110) (1,145) Total non-interest income 60,349 53,775 239,545 202,108 ------ ------ ------- ------- Non-interest expense: Compensation and benefits 79,232 71,220 297,517 270,151 Occupancy 11,573 11,518 48,836 47,325 Technology and equipment expense 19,218 15,827 80,026 61,993 Marketing 3,533 3,918 16,053 15,379 Professional and outside services 2,932 1,855 11,156 8,296 Intangible assets amortization 1,588 416 6,340 2,685 Foreclosed and repossessed asset expenses 242 244 827 1,223 Foreclosed and repossessed asset gains (241) (238) (310) (1,297) Loan workout expenses 775 685 3,173 3,507 Deposit insurance 6,242 5,856 24,042 22,670 Other expenses 18,178 16,158 65,919 66,639 ------ ------ ------ ------ 143,272 127,459 553,579 498,571 Severance, contract, and other 254 633 1,099 964 Acquisition costs (386) 396 141 540 Branch and facility optimization 24 276 (265) 125 Provision for litigation and settlements - 1,400 - 1,400 Total non-interest expense 143,164 130,164 554,554 501,600 ------- ------- ------- ------- Income before income taxes 76,725 74,759 300,316 291,699 Income tax expense 24,146 23,753 93,976 91,973 ------ ------ ------ ------ Net income 52,579 51,006 206,340 199,726 Preferred stock dividends (2,024) (2,639) (8,711) (10,556) Net income available to common shareholders $50,555 $48,367 $197,629 $189,170 ------- ------- -------- -------- Diluted shares (average) 91,956 90,741 91,533 90,620 Net income per common share available to common shareholders: Basic $0.55 $0.54 $2.17 $2.10 Diluted 0.55 0.53 2.15 2.08 (a) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."
WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited) --------------------------------------------------------- Three Months Ended ------------------ (In thousands, except per share data) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Interest income: Interest and fees on loans and leases $145,504 $140,520 $135,694 $130,723 $132,604 Interest and dividends on securities 52,365 51,121 50,844 51,679 50,921 Loans held for sale 291 357 432 510 226 Total interest income 198,160 191,998 186,970 182,912 183,751 ------- ------- ------- ------- ------- Interest expense: Deposits 11,476 11,480 11,533 11,542 11,322 Borrowings 13,344 12,508 11,926 11,606 11,781 Total interest expense 24,820 23,988 23,459 23,148 23,103 ------ ------ ------ ------ ------ Net interest income 173,340 168,010 163,511 159,764 160,648 Provision for loan and lease losses 13,800 13,000 12,750 9,750 9,500 Net interest income after provision for loan and lease losses 159,540 155,010 150,761 150,014 151,148 ------- ------- ------- ------- ------- Non-interest income: Deposit service fees 34,231 35,229 34,493 32,625 25,928 Loan and lease related fees 5,881 8,305 5,729 5,679 8,361 Wealth and investment services 8,052 7,761 8,784 7,889 8,517 Mortgage banking activities 2,276 1,441 2,517 1,561 977 Increase in cash surrender value of life insurance policies 3,383 3,288 3,197 3,152 3,278 Net gain on investment securities 80 - 486 43 1,121 Other income 6,474 5,513 4,645 6,941 6,492 60,377 61,537 59,851 57,890 54,674 Loss on write-down of investment securities to fair value (28) (82) - - (899) --- Total non-interest income 60,349 61,455 59,851 57,890 53,775 ------ ------ ------ ------ ------ Non-interest expense: Compensation and benefits 79,232 73,378 74,043 70,864 71,220 Occupancy 11,573 11,987 11,680 13,596 11,518 Technology and equipment expense 19,218 21,336 20,224 19,248 15,827 Marketing 3,533 4,099 4,245 4,176 3,918 Professional and outside services 2,932 2,896 2,875 2,453 1,855 Intangible assets amortization 1,588 1,621 1,843 1,288 416 Foreclosed and repossessed asset expenses 242 270 146 169 244 Foreclosed and repossessed asset (gains) losses (241) (68) (537) 536 (238) Loan workout expenses 775 719 801 878 685 Deposit insurance 6,242 6,067 5,492 6,241 5,856 Other expenses 18,178 17,758 15,817 14,166 16,158 ------ ------ ------ ------ ------ 143,272 140,063 136,629 133,615 127,459 Severance, contract, and other 254 34 521 290 633 Acquisition costs (386) - 18 509 396 Branch and facility optimization 24 (243) 278 (324) 276 Provision for litigation and settlements - - - - 1,400 --- ----- Total non-interest expense 143,164 139,854 137,446 134,090 130,164 ------- ------- ------- ------- ------- Income before income taxes 76,725 76,611 73,166 73,814 74,759 Income tax expense 24,146 25,075 20,663 24,092 23,753 ------ Net income 52,579 51,536 52,503 49,722 51,006 Preferred stock dividends (2,024) (2,024) (2,024) (2,639) (2,639) ------ Net income available to common shareholders $50,555 $49,512 $50,479 $47,083 $48,367 ------- ------- ------- ------- ------- Diluted shares (average) 91,956 92,007 91,302 90,841 90,741 Net income per common share available to common shareholders: Basic $0.55 $0.54 $0.55 $0.52 $0.54 Diluted 0.55 0.54 0.55 0.52 0.53
WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Yields, and Rates Paid (unaudited) ---------------------------------------------------------------- Three Months Ended December 31, ------------------------------- 2015 2014 ---- ---- (Dollars in thousands) Average Interest Fully Average Interest Fully balance tax-equivalent balance (b) tax-equivalent yield/rate yield/rate --- ---------- Assets: Interest-earning assets: Loans and leases $15,452,576 $146,091 3.73 % $13,715,522 $133,141 3.83 % Investment securities (a) 6,930,635 52,591 3.04 6,522,767 51,778 3.19 Federal Home Loan and Federal Reserve Bank stock 186,367 1,862 3.96 177,324 1,206 2.70 Interest-bearing deposits 87,019 63 0.28 43,864 28 0.25 Loans held for sale 33,021 291 3.53 25,427 226 3.55 ------ --- ---- ------ --- ---- Total interest-earning assets 22,689,618 $200,898 3.51 % 20,484,904 $186,379 3.61 % Non-interest-earning assets 1,723,575 1,545,268 Total assets $24,413,193 $22,030,172 ----------- ----------- Liabilities and Shareholders' Equity: Interest-bearing liabilities: Deposits: Demand $3,693,704 $ - -% $3,364,956 $ - -% Savings, interest checking, and money market 12,072,461 5,686 0.19 9,912,875 4,359 0.17 Certificates of deposit 2,066,989 5,790 1.11 2,288,075 6,963 1.21 Total deposits 17,833,154 11,476 0.26 15,565,906 11,322 0.29 ---------- ------ ---- ---------- ------ ---- Securities sold under agreements to repurchase and other borrowings 1,132,700 4,150 1.43 1,282,805 4,514 1.38 Federal Home Loan Bank advances 2,566,447 6,759 1.03 2,444,900 4,857 0.78 Long-term debt 226,337 2,435 4.30 226,218 2,410 4.26 Total borrowings 3,925,484 13,344 1.34 3,953,923 11,781 1.17 --------- ------ ---- --------- ------ ---- Total interest-bearing liabilities 21,758,638 $24,820 0.45 % 19,519,829 $23,103 0.47 % Non-interest-bearing liabilities 232,352 169,503 Total liabilities 21,990,990 19,689,332 ---------- ---------- Preferred stock 122,710 151,649 Common shareholders' equity 2,299,493 2,189,191 --------- --------- Webster Financial Corporation shareholders' equity 2,422,203 2,340,840 Total liabilities and equity $24,413,193 $22,030,172 ----------- ----------- Tax-equivalent net interest income 176,078 163,276 Less: tax-equivalent adjustment (2,738) (2,628) Net interest income $173,340 $160,648 -------- -------- Net interest margin 3.08 % 3.17 % ----- ----- (a) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance. (b) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."
WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Yields, and Rates Paid (unaudited) ---------------------------------------------------------------- Twelve Months Ended December 31, -------------------------------- 2015 2014 ---- ---- (Dollars in thousands) Average Interest Fully Average Interest Fully balance tax-equivalent balance (b) tax-equivalent yield/rate yield/rate --- ---------- Assets: Interest-earning assets: Loans and leases $14,746,168 $554,632 3.76 % $13,275,340 $513,705 3.87 % Investment securities (a) 6,846,297 207,675 3.04 6,446,799 210,721 3.28 Federal Home Loan and Federal Reserve Bank stock 188,631 6,479 3.43 168,036 4,719 2.81 Interest-bearing deposits 107,569 281 0.26 24,376 63 0.26 Loans held for sale 41,101 1,590 3.87 22,642 857 3.78 ------ ----- ---- ------ --- ---- Total interest-earning assets 21,929,766 $770,657 3.52 % 19,937,193 $730,065 3.67 % Non-interest-earning assets 1,673,793 1,523,768 Total assets $23,603,559 $21,460,961 ----------- ----------- Liabilities and Shareholders' Equity: Interest-bearing liabilities: Deposits: Demand $3,564,751 $ - -% $3,216,777 $ - -% Savings, interest checking, and money market 11,846,049 21,472 0.18 9,863,703 17,800 0.18 Certificates of deposit 2,138,778 24,559 1.15 2,280,668 26,362 1.16 Total deposits 17,549,578 46,031 0.26 15,361,148 44,162 0.29 ---------- ------ ---- ---------- ------ ---- Securities sold under agreements to repurchase and other borrowings 1,144,963 16,861 1.47 1,353,308 19,388 1.43 Federal Home Loan Bank advances 2,084,496 22,858 1.10 2,038,749 16,909 0.83 Long-term debt 226,292 9,665 4.27 252,368 10,041 3.98 Total borrowings 3,455,751 49,384 1.43 3,644,425 46,338 1.27 --------- ------ ---- --------- ------ ---- Total interest-bearing liabilities 21,005,329 $95,415 0.45 % 19,005,573 $90,500 0.48 % Non-interest-bearing liabilities 209,333 165,689 Total liabilities 21,214,662 19,171,262 ---------- ---------- Preferred stock 134,682 151,649 Common shareholders' equity 2,254,215 2,138,050 --------- --------- Webster Financial Corporation shareholders' equity 2,388,897 2,289,699 Total liabilities and equity $23,603,559 $21,460,961 ----------- ----------- Tax-equivalent net interest income 675,242 639,565 Less: tax-equivalent adjustment (10,617) (11,124) Net interest income $664,625 $628,441 -------- -------- Net interest margin 3.08 % 3.21 % ----- ----- (a) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance. (b) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."
WEBSTER FINANCIAL CORPORATION Five Quarter Loan and Lease Balances (unaudited) ----------------------------------------------- (Dollars in thousands) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Loan and Lease Balances (actuals): Continuing Portfolio: Commercial non- mortgage $3,562,784 $3,423,775 $3,310,863 $3,183,218 $3,087,940 Equipment financing 600,526 552,850 545,441 543,636 537,751 Asset-based lending 753,215 716,204 711,041 716,592 661,330 Commercial real estate 3,991,649 3,857,155 3,770,252 3,663,071 3,554,428 Residential mortgages 4,061,001 4,015,839 3,833,489 3,594,272 3,509,174 Consumer 2,622,998 2,568,009 2,520,970 2,480,270 2,457,345 --------- --------- --------- --------- --------- Total continuing portfolio 15,592,173 15,133,832 14,692,056 14,181,059 13,807,968 Allowance for loan and lease losses (167,626) (165,341) (159,501) (152,825) (149,813) Total continuing portfolio, net 15,424,547 14,968,491 14,532,555 14,028,234 13,658,155 ---------- ---------- ---------- ---------- ---------- Liquidating Portfolio: National Construction Lending Center (NCLC) - - - - 1 Consumer 79,562 82,693 85,470 89,167 92,056 ------ ------ ------ ------ ------ Total liquidating portfolio 79,562 82,693 85,470 89,167 92,057 Allowance for loan and lease losses (7,364) (7,651) (8,359) (9,145) (9,451) ------ ------ ------ ------ ------ Total liquidating portfolio, net 72,198 75,042 77,111 80,022 82,606 ------ ------ ------ ------ ------ Total Loan and Lease Balances (actuals) 15,671,735 15,216,525 14,777,526 14,270,226 13,900,025 Allowance for loan and lease losses (174,990) (172,992) (167,860) (161,970) (159,264) Loans and Leases, net $15,496,745 $15,043,533 $14,609,666 $14,108,256 $13,740,761 ----------- ----------- ----------- ----------- ----------- Loan and Lease Balances (average): Continuing Portfolio: Commercial non- mortgage $3,482,862 $3,363,074 $3,247,527 $3,096,762 $3,036,412 Equipment financing 570,686 549,310 542,112 542,067 509,331 Asset-based lending 721,662 712,811 709,985 675,218 647,952 Commercial real estate 3,955,012 3,804,904 3,705,895 3,574,826 3,452,954 Residential mortgages 4,039,341 3,950,654 3,711,096 3,546,098 3,483,444 Consumer 2,601,955 2,544,789 2,504,668 2,468,422 2,491,359 --------- --------- --------- --------- --------- Total continuing portfolio 15,371,518 14,925,542 14,421,283 13,903,393 13,621,452 Allowance for loan and lease losses (170,724) (163,421) (156,698) (153,790) (150,706) Total continuing portfolio, net 15,200,794 14,762,121 14,264,585 13,749,603 13,470,746 ---------- ---------- ---------- ---------- ---------- Liquidating Portfolio: NCLC - - - 1 1 Consumer 81,058 84,449 87,418 91,088 94,069 ------ ------ ------ ------ ------ Total liquidating portfolio 81,058 84,449 87,418 91,089 94,070 Allowance for loan and lease losses (7,364) (7,651) (8,359) (9,145) (9,451) Total liquidating portfolio, net 73,694 76,798 79,059 81,944 84,619 ------ ------ ------ ------ ------ Total Loan and Lease Balances (average) 15,452,576 15,009,991 14,508,701 13,994,482 13,715,522 Allowance for loan and lease losses (178,088) (171,072) (165,057) (162,935) (160,157) -------- -------- -------- -------- Loans and Leases, net $15,274,488 $14,838,919 $14,343,644 $13,831,547 $13,555,365 ----------- ----------- ----------- ----------- -----------
WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets (unaudited) -------------------------------------------- (Dollars in thousands) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Nonperforming loans and leases: Continuing Portfolio: Commercial non-mortgage $27,086 $40,235 $43,081 $27,057 $6,436 Equipment financing 706 403 301 285 518 Asset-based lending - - - - - Commercial real estate 20,211 23,828 26,893 25,814 18,675 Residential mortgages 54,101 57,603 58,663 61,274 64,022 Consumer 33,972 32,969 34,236 33,696 35,770 ------ Nonperforming loans and leases -continuing portfolio 136,076 155,038 163,174 148,126 125,421 ------- ------- ------- ------- ------- Liquidating Portfolio: Consumer 3,865 3,965 4,682 4,117 4,460 Total nonperforming loans and leases $139,941 $159,003 $167,856 $152,243 $129,881 -------- -------- -------- -------- -------- Other real estate owned and repossessed assets: Continuing Portfolio: Commercial $ - $ - $ - $ - $2,899 Repossessed equipment - - - - 100 Residential 3,788 4,078 3,930 3,051 2,280 Consumer 1,241 1,306 1,039 2,252 1,237 Total continuing portfolio 5,029 5,384 4,969 5,303 6,516 ----- ----- ----- ----- ----- Liquidating Portfolio: Total liquidating portfolio - - - - - Total other real estate owned and repossessed assets $5,029 $5,384 $4,969 $5,303 $6,516 ------ ------ ------ ------ ------ Total nonperforming assets $144,970 $164,387 $172,825 $157,546 $136,397 -------- -------- -------- -------- --------
WEBSTER FINANCIAL CORPORATION Five Quarter Past Due Loans and Leases (unaudited) ------------------------------------------------- (Dollars in thousands) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Past due 30-89 days: Continuing Portfolio: Commercial non- mortgage $4,052 $4,415 $1,778 $3,992 $2,099 Equipment financing 602 739 517 789 701 Asset-based lending - - - - - Commercial real estate 2,250 1,939 1,547 3,962 2,714 Residential mortgages 15,032 15,222 12,315 13,966 17,216 Consumer 14,225 15,850 13,053 18,459 15,867 Past due 30-89 days - continuing portfolio 36,161 38,165 29,210 41,168 38,597 ------ ------ ------ ------ ------ Liquidating Portfolio: Consumer 1,036 953 1,299 1,820 1,658 Total past due 30-89 days 37,197 39,118 30,509 42,988 40,255 ------ ------ ------ ------ ------ Past due 90 days or more and accruing 2,051 2,228 1,923 2,109 2,087 ----- ----- ----- ----- ----- Total past due loans and leases $39,248 $41,346 $32,432 $45,097 $42,342 ------- ------- ------- ------- -------
WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Loan and Lease Losses (unaudited) -------------------------------------------------------------------------- For the Three Months Ended -------------------------- (Dollars in thousands) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Beginning balance $172,992 $167,860 $161,970 $159,264 $156,482 Provision 13,800 13,000 12,750 9,750 9,500 Charge-offs continuing portfolio: Commercial non- mortgage 6,522 2,204 2,541 255 4,097 Equipment financing 244 - 15 15 84 Asset-based lending - - - - - Commercial real estate 1,988 1,346 1,091 3,153 246 Residential mortgages 1,504 1,588 1,461 1,953 1,346 Consumer 4,379 3,991 3,531 3,634 3,648 Charge-offs continuing portfolio 14,637 9,129 8,639 9,010 9,421 ------ ----- ----- ----- ----- Charge-offs liquidating portfolio: NCLC - - - 2 - Consumer 320 840 322 662 563 Charge-offs liquidating portfolio 320 840 322 664 563 Total charge-offs 14,957 9,969 8,961 9,674 9,984 ------ ----- ----- ----- ----- Recoveries continuing portfolio: Commercial non- mortgage 441 558 527 989 1,258 Equipment financing 1,083 32 102 143 702 Asset-based lending 38 157 2 26 - Commercial real estate 325 69 52 202 217 Residential mortgages 115 280 365 104 291 Consumer 948 852 849 821 636 Recoveries continuing portfolio 2,950 1,948 1,897 2,285 3,104 ----- ----- ----- ----- ----- Recoveries liquidating portfolio: NCLC 1 1 4 4 5 Consumer 204 152 200 341 157 Recoveries liquidating portfolio 205 153 204 345 162 Total recoveries 3,155 2,101 2,101 2,630 3,266 ----- ----- ----- ----- ----- Total net charge-offs 11,802 7,868 6,860 7,044 6,718 ------ ----- ----- ----- ----- Ending balance $174,990 $172,992 $167,860 $161,970 $159,264 -------- -------- -------- -------- --------
WEBSTER FINANCIAL CORPORATION Reconciliations to GAAP Financial Measures ------------------------------------------ The Company evaluates its business based on the following 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 common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights). The tangible equity ratio represents total ending shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights). The tangible common equity ratio represents ending common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights). Tangible book value per common share represents ending common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding. 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. Accordingly, this is also a non-GAAP financial measure. 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. At or for the Three Months Ended -------------------------------- (Dollars in thousands, except per share data) December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 --- ---- ---- ---- ---- ---- Reconciliation of net income available to common shareholders to annualized net income used in the return on average tangible common shareholders' equity ratio ---------------------------------------------------------- Net income available to common shareholders $50,555 $49,512 $50,479 $47,083 $48,367 Amortization of intangibles (tax- affected @ 35%) 1,032 1,054 1,198 837 270 ----- ----- ----- --- --- Quarterly net income adjusted for amortization of intangibles 51,587 50,566 51,677 47,920 48,637 Annualized net income used in the return on average tangible common shareholders' equity ratio $206,348 $202,264 $206,708 $191,680 $194,548 -------- -------- -------- -------- -------- Reconciliation of average common shareholders' equity to average tangible common shareholders' equity -------------------------------------------------------- Average common shareholders' equity $2,299,493 $2,280,960 $2,236,743 $2,198,254 $2,189,191 Average goodwill (538,373) (538,373) (538,373) (537,147) (529,887) Average intangible assets (excluding mortgage servicing rights) (40,225) (41,845) (43,538) (39,559) (2,862) ------- ------- ------- ------- Average tangible common shareholders' equity $1,720,895 $1,700,742 $1,654,832 $1,621,548 $1,656,442 ---------- ---------- ---------- ---------- ---------- Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity ---------------------------------------------------- Shareholders' equity $2,415,571 $2,402,545 $2,379,695 $2,355,575 $2,322,815 Goodwill (538,373) (538,373) (538,373) (538,373) (529,887) Intangible assets (excluding mortgage servicing rights) (39,326) (40,914) (42,535) (44,378) (2,666) Tangible shareholders' equity $1,837,872 $1,823,258 $1,798,787 $1,772,824 $1,790,262 ---------- ---------- ---------- ---------- ---------- Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity ----------------------------------------------------------- Common shareholders' equity $2,292,861 $2,279,835 $2,256,985 $2,203,926 $2,171,166 Goodwill (538,373) (538,373) (538,373) (538,373) (529,887) Intangible assets (excluding mortgage servicing rights) (39,326) (40,914) (42,535) (44,378) (2,666) Tangible common shareholders' equity $1,715,162 $1,700,548 $1,676,077 $1,621,175 $1,638,613 ---------- ---------- ---------- ---------- ---------- Reconciliation of period-end assets to period-end tangible assets ---------------------------------------------------------- Assets $24,677,820 $24,069,782 $23,620,786 $23,106,688 $22,533,172 Goodwill (538,373) (538,373) (538,373) (538,373) (529,887) Intangible assets (excluding mortgage servicing rights) (39,326) (40,914) (42,535) (44,378) (2,666) Tangible assets $24,100,121 $23,490,495 $23,039,878 $22,523,937 $22,000,619 ----------- ----------- ----------- ----------- ----------- Book value per common share --------------------------- Common shareholders' equity $2,292,861 $2,279,835 $2,256,985 $2,203,926 $2,171,166 Ending common shares issued and outstanding (in thousands) 91,677 91,663 91,919 90,715 90,512 Book value per common share $25.01 $24.87 $24.55 $24.29 $23.99 ------ ------ ------ ------ ------ Tangible book value per common share ------------------------------------ Tangible common shareholders' equity $1,715,162 $1,700,548 $1,676,077 $1,621,175 $1,638,613 Ending common shares issued and outstanding (in thousands) 91,677 91,663 91,919 90,715 90,512 Tangible book value per common share $18.71 $18.55 $18.23 $17.87 $18.10 ------ ------ ------ ------ ------ Reconciliation of non-interest expense to non-interest expense used in the efficiency ratio ------------------------------------------------------ Non-interest expense $143,164 $139,854 $137,446 $134,090 $130,164 Foreclosed property expense (242) (270) (146) (169) (244) Intangible assets amortization (1,588) (1,621) (1,843) (1,288) (416) Other expense 349 277 (280) (1,011) (2,467) Non-interest expense used in the efficiency ratio $141,683 $138,240 $135,177 $131,622 $127,037 -------- -------- -------- -------- -------- Income used in the efficiency ratio ----------------------------------- Net interest income before provision for loan losses $173,340 $168,010 $163,511 $159,764 $160,648 Fully taxable- equivalent adjustment 2,738 2,596 2,626 2,657 2,628 Non-interest income 60,349 61,455 59,851 57,890 53,775 Net gain on investment securities (80) - (486) (43) (1,121) Other 303 324 242 242 1,085 Income used in the efficiency ratio $236,650 $232,385 $225,744 $220,510 $217,015 -------- -------- -------- -------- --------
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/webster-reports-2015-fourth-quarter-earnings-300207714.html
SOURCE Webster Financial Corporation