WATERBURY, Conn., Oct. 21,
2021 /PRNewswire/ -- Webster Financial Corporation (NYSE:
WBS), the holding company for Webster
Bank, N.A. and its HSA Bank division, today announced
earnings applicable to common shareholders of $93.2 million, or $1.03 per diluted share, for the quarter ended
September 30, 2021, compared to $66.9
million, or $0.75 per diluted
share, for the quarter ended September 30, 2020. Earnings per
diluted share would have been $1.08
for the quarter ended September 30, 2021, adjusting for a net
$5.8 million ($4.3 million after tax) of merger related
costs and strategic optimization initiatives.
"Webster delivered strong financial performance as evidenced by
linked quarter loan growth of 2.7%, excluding PPP, and deposit
growth of 4.1%," said John R.
Ciulla, chairman and chief executive officer. "While we
continue to deliver for clients, communities, colleagues and
shareholders, integration plans for our merger with Sterling are
well established and we are prepared to execute the transaction
upon receipt of all regulatory approvals."
Highlights for the third quarter of 2021:
- Revenue of $313.5 million, an
increase of 6.5 percent compared to a year ago.
- Loan growth of 2.7 percent linked quarter, excluding Paycheck
Protection Program (PPP) loans, led by commercial and residential
which increased 3.3 percent.
- Current Expected Credit Loss (CECL) provision of $7.8 million with a reserve increase of
$7.0 million compared to the prior
quarter primarily driven by loan growth, resulting in an allowance
coverage of 1.46 percent, or 1.49 percent excluding $0.4 billion of PPP loans.
- Deposit growth of $1.2 billion or
4.1 percent linked quarter, with growth of $741.6 million in demand and interest-bearing
checking deposits and $516.4 million
in money market deposits.
- Charges related to merger and strategic optimization
initiatives totaled $5.8
million.
- Net interest margin of 2.80 percent.
- Efficiency ratio (non-GAAP) of 54.8 percent.
"Credit quality and economic conditions continued to improve,
supporting favorable trends for non-performing loans and net
charge-offs in the quarter," said Glenn
MacInnes, executive vice president and chief financial
officer. "The strength of our balance sheet continues to position
us well for the future."
Line of Business performance compared to the third quarter of
2020
Commercial Banking
Webster's Commercial Banking segment serves businesses that have
more than $2 million of revenue
through our business banking, middle market, asset-based lending,
equipment finance, commercial real estate, sponsor finance, and
treasury services business units. Additionally, our Wealth group
provides wealth management solutions to business owners, operators,
and consumers within our targeted markets and retail footprint. As
of September 30, 2021, Commercial Banking had $14.7 billion in loans and leases and
$10.2 billion in deposit
balances.
Commercial Banking Operating Results:
|
|
|
|
|
Percent
|
|
Three months ended
September 30,
|
|
Favorable/
|
(In
thousands)
|
|
2021
|
2020
|
|
(Unfavorable)
|
Net interest
income
|
|
$152,556
|
|
$132,026
|
|
|
|
15.5
|
%
|
|
Non-interest
income
|
|
30,076
|
|
20,710
|
|
|
|
45.2
|
|
|
Operating
revenue
|
|
182,632
|
|
152,736
|
|
|
|
19.6
|
|
|
Non-interest
expense
|
|
64,917
|
|
66,482
|
|
|
|
2.4
|
|
|
Pre-tax,
pre-provision net revenue
|
|
$117,715
|
|
$86,254
|
|
|
|
36.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
|
|
|
At September
30,
|
|
Increase/
|
(In
millions)
|
|
2021
|
2020
|
|
(Decrease)
|
Loans and
leases
|
|
$14,655
|
|
$14,544
|
|
|
|
0.8
|
%
|
|
Deposits
|
|
10,219
|
|
8,326
|
|
|
|
22.7
|
|
|
AUA / AUM (off
balance sheet)
|
|
7,041
|
|
6,000
|
|
|
|
17.4
|
|
|
Pre-tax, pre-provision net revenue increased $31.5 million to $117.7
million in the quarter as compared to prior year. Net
interest income increased $20.5
million to $152.6 million,
primarily driven by PPP loan fee acceleration associated with PPP
loan forgiveness, loan rates, and deposit growth. Non-interest
income increased $9.4 million to
$30.1 million, driven by higher
syndication fees, fair value adjustments on direct investments, and
trust and investment service fees. Non-interest expense decreased
$1.6 million to $64.9 million, primarily driven by lower support
costs.
HSA Bank
Webster's HSA Bank division offers a comprehensive
consumer-directed healthcare solution that includes health savings
accounts, health reimbursement arrangements, flexible spending
accounts and commuter benefits. Health savings accounts are
distributed nationwide directly to employers and individual
consumers, as well as through national and regional insurance
carriers, benefit consultants and financial advisors. As of
September 30, 2021, HSA Bank had $10.7
billion in total footings comprising $7.3 billion in deposit balances and $3.4 billion in assets under administration
through linked investment accounts.
HSA Bank Operating Results:
|
|
|
|
|
Percent
|
|
Three months ended
September 30,
|
|
Favorable/
|
(In
thousands)
|
|
2021
|
2020
|
|
(Unfavorable)
|
Net interest
income
|
|
$42,074
|
|
$39,861
|
|
|
|
5.6
|
%
|
|
Non-interest
income
|
|
24,756
|
|
27,235
|
|
|
|
(9.1)
|
|
|
Operating
revenue
|
|
66,830
|
|
67,096
|
|
|
|
(0.4)
|
|
|
Non-interest
expense
|
|
32,800
|
|
34,789
|
|
|
|
5.7
|
|
|
Pre-tax, net
revenue
|
|
$34,030
|
|
$32,307
|
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
|
|
|
At September
30,
|
|
Increase/
|
(Dollars in
millions)
|
|
2021
|
2020
|
|
(Decrease)
|
Number of accounts
(thousands)
|
|
3,003
|
|
2,968
|
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$7,329
|
|
$6,976
|
|
|
|
5.1
|
|
|
Linked investment
accounts (off balance sheet)
|
|
3,427
|
|
2,454
|
|
|
|
39.6
|
|
|
Total
footings
|
|
$10,756
|
|
$9,430
|
|
|
|
14.1
|
|
|
Pre-tax net revenue increased $1.7
million to $34.0 million in
the quarter as compared to prior year. Net interest income
increased $2.2 million to
$42.1 million, due to growth in
deposits. Non-interest income decreased $2.5
million to $24.8 million,
primarily due to decreases in third-party administrator closure
fees. Non-interest expense decreased $2.0
million to $32.8 million,
primarily due to reduced compensation and benefits expenses.
Retail Banking
Retail Banking serves consumer and business banking customers
primarily throughout southern New England and into Westchester County, New York. Retail Banking
is comprised of the Consumer Lending and Small Business Banking
(businesses that have less than $2
million of revenue) business units, as well as a
distribution network consisting of 130 banking centers and 254
ATMs, a customer care center, and a full range of web and
mobile-based banking services. As of September 30, 2021,
Retail Banking had $6.9 billion in
loans and $12.5 billion in deposit
balances.
Retail Banking Operating Results:
|
|
|
|
|
Percent
|
|
Three months ended
September 30,
|
|
Favorable/
|
(In
thousands)
|
|
2021
|
2020
|
|
(Unfavorable)
|
Net interest
income
|
|
$98,028
|
|
$83,609
|
|
|
|
17.2
|
%
|
|
Non-interest
income
|
|
16,998
|
|
21,359
|
|
|
|
(20.4)
|
|
|
Operating
revenue
|
|
115,026
|
|
104,968
|
|
|
|
9.6
|
|
|
Non-interest
expense
|
|
73,480
|
|
80,119
|
|
|
|
8.3
|
|
|
Pre-tax,
pre-provision net revenue
|
|
$41,546
|
|
$24,849
|
|
|
|
67.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
|
|
|
At September
30,
|
|
Increase/
|
(In
millions)
|
|
2021
|
2020
|
|
(Decrease)
|
Loans
|
|
$6,925
|
|
$7,308
|
|
|
|
(5.2)
|
%
|
|
Deposits
|
|
12,475
|
|
11,623
|
|
|
|
7.3
|
|
|
Pre-tax, pre-provision net revenue increased $16.7 million to $41.5
million in the quarter as compared to prior year. Net
interest income increased $14.4
million to $98.0 million,
driven by PPP loan fee acceleration associated with PPP loan
forgiveness, deposit balance growth, and lower interest paid on
deposits, partially offset by lower consumer loan balances.
Non-interest income decreased $4.4
million to $17.0 million,
resulting from lower mortgage banking fee income, partially offset
by higher deposit service fees. Non-interest expense decreased
$6.6 million to $73.5 million, driven by lower employee-related,
occupancy, technology and equipment, and marketing expenses.
Consolidated financial performance:
Quarterly net interest income compared to the third quarter
of 2020:
- Net interest income was $229.7
million compared to $219.3
million.
- Net interest margin was 2.80 percent compared to 2.88 percent.
The yield on interest-earning assets declined by 21 basis points,
and the cost of interest-bearing liabilities declined by 14 basis
points.
- Average interest-earning assets totaled $32.9 billion and grew by $2.0 billion, or 6.5 percent.
- Average loans totaled $21.5
billion and declined by $0.3
billion, or 1.5 percent.
- Average deposits totaled $29.8
billion and grew by $2.9
billion, or 10.8 percent.
Quarterly provision for credit losses:
- The provision for credit losses reflects a $7.8 million provision in the quarter,
contributing to a $7.0 million
increase in the allowance for credit losses on loans and leases.
The increase in the allowance is based primarily on loan growth.
The provision for credit losses reflected a $21.5 million benefit in the prior quarter
compared to an expense of $22.8
million a year ago.
- Net charge-offs (recoveries) were $0.9
million, compared to $(1.2)
million in the prior quarter and $11.5 million a year ago. The ratio of net
charge-offs (recoveries) to average loans on an annualized basis
was 0.02 percent, compared to (0.02) percent in the prior quarter
and 0.21 percent a year ago.
- The allowance for credit losses on loans and leases represented
1.46 percent of total loans at September 30,
2021, compared to 1.43 percent at June 30, 2021 and 1.69 percent at September 30, 2020. Excluding $0.4 billion of risk free PPP loans, the coverage
ratio was 1.49 percent at September 30,
2021, compared to 1.49 percent at June 30, 2021 excluding $0.8 billion of risk free PPP loans, and 1.80
percent at September 30, 2020
excluding $1.4 billion of risk free
PPP loans. The allowance represented 309 percent of nonperforming
loans at September 30, 2021 compared
to 255 percent at June 30, 2021 and
227 percent at September 30,
2020.
Quarterly non-interest income compared to the third quarter
of 2020:
- Total non-interest income was $83.8
million compared to $75.1
million, an increase of $8.7
million. This primarily reflects an increase of $9.0 million in other due to fair value
adjustments on direct investments; $4.3
million in loan related fees driven by higher syndication
and prepayment fees; $1.8 million in
deposit service fees driven by higher overdraft and cash management
fees; and $1.7 million primarily due
to increased investment activity. These increases were partially
offset by a $5.6 million decrease in
mortgage banking activities which is in line with our strategic
choice to originate loans for portfolio along with lower spreads on
loans originated for sale and a $2.5
million decrease in HSA fee income due to prior year closure
fees from third-party administrator custodial accounts and lower
account service related charges.
Quarterly non-interest expense compared to the third quarter
of 2020:
- Total non-interest expense was $180.2
million compared to $184.0
million, a decrease of $3.8
million. Total non-interest expense includes a net
$5.8 million of merger and strategic
initiative related charges compared to $4.8
million of strategic initiatives a year ago. Excluding those
charges, total non-interest expense decreased $4.8 million reflecting a $2.5 million decrease in compensation and
benefits, a $1.8 million decrease in
occupancy, and a $0.9 million
decrease in the reserve for unfunded lines.
Quarterly income taxes compared to the third quarter of
2020:
- Income tax expense was $29.8
million compared to $18.3
million, and the effective tax rate was 23.7 percent
compared to 20.9 percent. The higher effective tax rate in the
quarter primarily reflects the effects of increased pre-tax income
in 2021 compared to 2020.
Investment securities:
- Total investment securities were $9.4
billion, compared to $8.9
billion at June 30, 2021 and
$9.0 billion at September 30, 2020. The carrying value of the
available-for-sale portfolio included $44.7
million of net unrealized gains, compared to $49.3 million at June 30,
2021 and $103.1 million at
September 30, 2020. The carrying
value of the held-to-maturity portfolio does not reflect
$152.9 million of net unrealized
gains, compared to $170.5 million at
June 30, 2021 and $283.0 million at September 30, 2020.
Loans:
- Total loans were $21.6 billion,
compared to $21.5 billion at
June 30, 2021 and $21.9 billion at September
30, 2020. Compared to June 30,
2021, commercial real estate loans increased by $112.0 million while commercial loans (excluding
PPP loans) increased by $189.0
million, residential mortgages increased by $311.2 million, consumer loans decreased by
$59.3 million, and PPP loans
decreased by $447.5 million.
- Compared to a year ago, commercial real estate loans increased
by $215.1 million and commercial
loans (excluding PPP loans) increased by $502.5 million, while consumer loans decreased by
$315.1 million and residential
mortgages increased by $281.7
million. PPP loans totaled $0.4
billion at September 30,
2021.
- Loan originations for the portfolio were $1.987 billion, compared to $2.333 billion ($2.269
billion excluding PPP loan originations) in the prior
quarter and $1.560 billion
($1.525 billion excluding PPP loan
originations) a year ago. In addition, $57
million of residential loans were originated for sale in the
quarter, compared to $55 million in
the prior quarter and $149 million a
year ago.
Asset quality:
- Total nonperforming loans were $101.8
million, or 0.47 percent of total loans, compared to
$120.7 million, or 0.56 percent of
total loans, at June 30, 2021 and
$162.6 million, or 0.74 percent of
total loans, at September 30, 2020.
As of September 30, 2021,
$40.3 million of nonperforming loans
were contractually current.
- Past due loans were $17.1
million, compared to $18.4
million at June 30, 2021 and
$21.8 million at September 30, 2020.
Deposits and borrowings:
- Total deposits were $30.0
billion, compared to $28.8
billion at June 30, 2021 and
$26.9 billion at September 30, 2020. Core deposits to total
deposits were 93.7 percent, compared to 93.0 percent at
June 30, 2021 and 90.5 percent at
September 30, 2020. The loan to
deposit ratio was 71.9 percent, compared to 74.4 percent at
June 30, 2021 and 81.2 percent at
September 30, 2020.
- Total borrowings were $1.3
billion, compared to $1.2
billion at June 30, 2021 and
$2.3 billion at September 30, 2020.
Capital:
- The return on average common shareholders' equity and the
return on average tangible common shareholders' equity were 11.61
percent and 14.16 percent, respectively, compared to 8.80 percent
and 10.91 percent, respectively, in the third quarter of 2020.
- The tangible equity and tangible common equity ratios were 8.12
percent and 7.71 percent, respectively, compared to 8.19 percent
and 7.75 percent, respectively, at September
30, 2020. The common equity tier 1 risk-based capital ratio
was 11.77 percent, compared to 11.23 percent at September 30, 2020.
- Book value and tangible book value per common share were
$35.78 and $29.63, respectively, compared to $34.09 and $27.86,
respectively, at September 30,
2020.
Webster Financial Corporation is the holding company for
Webster Bank, National Association
and its HSA Bank division. With $35.4
billion in assets, Webster provides business and consumer
banking, mortgage, financial planning, trust, and investment
services through 130 banking centers and 254 ATMs. Webster also
provides mobile 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 third quarter 2021
earnings announcement will be held today, Thursday,
October 21, 2021 at 9:00 a.m. Eastern
Time. To listen to the live call, please dial 877-407-8289,
or 201-689-8341 for international callers. The webcast, along with
related slides, will be available on the Webster website
(www.wbst.com). A replay of the conference call will be available
for one week via the website listed above, beginning at
approximately 11:00 a.m. (Eastern) on
October 21, 2021. To access the replay, dial 877-660-6853, or
201-612-7415 for international callers. The replay conference ID
number is 13723032.
Media Contact
Alice
Ferreira, 203-578-2610
acferreira@websterbank.com
Investor Contact
Kristen
Manginelli, 203-578-2307
kmanginelli@websterbank.com
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements can be identified by words
such as "believes," "anticipates," "expects," "intends,"
"targeted," "continue," "remain," "will," "should," "may," "plans,"
"estimates," and similar references to future periods; however,
such words are not the exclusive means of identifying such
statements. Examples of forward-looking statements include, but are
not limited to: (i) projections of revenues, expenses, income or
loss, earnings or loss per share, and other financial items; (ii)
statements of plans, objectives, and expectations of Webster or its
management or Board of Directors; (iii) statements of future
economic performance; and (iv) statements of assumptions underlying
such statements. Forward-looking statements are based on Webster's
current expectations and assumptions regarding its business, the
economy, and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks, and changes in circumstances that are
difficult to predict. Webster's actual results may differ
materially from those contemplated by the forward-looking
statements, which are neither statements of historical fact nor
guarantees or assurances of future performance. Factors that could
cause actual results to differ from those discussed in the
forward-looking statements include, but are not limited to: (1) our
ability to complete the merger with Sterling Bancorp and realize
the anticipated benefits of the merger; (2) our ability to
successfully execute our business plan and strategic initiatives,
and manage any risks or uncertainties; (3) our ability to
successfully achieve the anticipated cost reductions and operating
efficiencies from our completed branch consolidations and other
strategic initiatives, including process automation, organization
simplification, and spending reductions, and avoid any higher than
anticipated costs or delays in the ongoing implementation; (4)
local, regional, national, and international economic conditions
and the impact they may have on us and our customers; (5)
volatility and disruption in national and international financial
markets; (6) the potential adverse effects of the ongoing novel
coronavirus (COVID-19) pandemic and any governmental or societal
responses thereto, or other unusual and infrequently occurring
events; (7) changes in the level of nonperforming assets and
charge-offs; (8) changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; (9) adverse conditions in
the securities markets that lead to impairment in the value of our
investment securities; (10) inflation, changes in interest rates
(including the replacement of LIBOR as an interest rate benchmark),
and monetary fluctuations; (11) the timely development and
acceptance of new products and services and the perceived value of
those products and services by customers; (12) changes in deposit
flows, consumer spending, borrowings, and savings habits; (13) our
ability to implement new technologies and maintain secure and
reliable technology systems; (14) the effects of any cyber threats,
attacks or events or fraudulent activity; (15) performance by our
counterparties and vendors; (16) our ability to increase market
share and control expenses; (17) changes in the competitive
environment among banks, financial holding companies, and other
financial services providers; (18) changes in laws and regulations
(including those concerning banking, taxes, dividends, securities,
insurance, and healthcare) with which we and our subsidiaries must
comply; (19) the effect of changes in accounting policies and
practices applicable to us, including impacts of recently adopted
accounting guidance; (20) legal and regulatory developments
including the resolution of legal proceedings or regulatory or
other governmental inquiries and the results of regulatory
examinations or reviews; (21) our ability to appropriately address
social, environmental, and sustainability concerns that may arise
from our business activities; and (22) 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. We utilize these measures for internal planning and
forecasting purposes. We, as well as securities analysts,
investors, and other interested parties, also use these measures to
compare peer company operating performance. We believe that our
presentation and discussion, together with the accompanying
reconciliations, provides a complete understanding of factors and
trends affecting our business and allows investors to view
performance in a manner similar to management. These non-GAAP
measures should not be considered a substitute for GAAP basis
measures and results, and we strongly encourage investors to review
our consolidated financial statements in their entirety and not to
rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names.
WEBSTER FINANCIAL
CORPORATION
Selected Financial Highlights (unaudited)
|
|
|
|
|
At or for the
Three Months Ended
|
|
|
(In thousands,
except per share data)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and
performance ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
95,713
|
|
|
$
|
94,035
|
|
|
$
|
108,078
|
|
|
$
|
60,044
|
|
|
$
|
69,281
|
|
|
Earnings applicable
to common shareholders
|
|
93,171
|
|
|
|
91,555
|
|
|
|
105,530
|
|
|
|
57,715
|
|
|
|
66,890
|
|
|
Earnings per diluted
common share
|
|
1.03
|
|
|
|
1.01
|
|
|
|
1.17
|
|
|
|
0.64
|
|
|
|
0.75
|
|
|
Return on average
assets
|
|
1.10
|
%
|
|
|
1.12
|
%
|
|
|
1.31
|
%
|
|
|
0.73
|
%
|
|
|
0.84
|
%
|
|
Return on average
tangible common shareholders' equity (non-GAAP)
|
|
14.16
|
|
|
|
14.26
|
|
|
|
16.79
|
|
|
|
9.31
|
|
|
|
10.91
|
|
|
Return on average
common shareholders' equity
|
|
11.61
|
|
|
|
11.63
|
|
|
|
13.65
|
|
|
|
7.51
|
|
|
|
8.80
|
|
|
Non-interest income
as a percentage of total revenue
|
|
26.73
|
|
|
|
24.77
|
|
|
|
25.54
|
|
|
|
26.14
|
|
|
|
25.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans and leases
|
$
|
314,922
|
|
|
$
|
307,945
|
|
|
$
|
328,351
|
|
|
$
|
359,431
|
|
|
$
|
369,811
|
|
|
Nonperforming
assets
|
|
104,209
|
|
|
|
123,497
|
|
|
|
152,808
|
|
|
|
170,314
|
|
|
|
167,314
|
|
|
Allowance for credit
losses on loans and leases / total loans and leases
|
|
1.46
|
%
|
|
|
1.43
|
%
|
|
|
1.54
|
%
|
|
|
1.66
|
%
|
|
|
1.69
|
%
|
|
Net charge-offs
(recoveries) / average loans and leases (annualized)
|
|
0.02
|
|
|
|
(0.02)
|
|
|
|
0.10
|
|
|
|
0.17
|
|
|
|
0.21
|
|
|
Nonperforming loans
and leases / total loans and leases
|
|
0.47
|
|
|
|
0.56
|
|
|
|
0.71
|
|
|
|
0.78
|
|
|
|
0.74
|
|
|
Nonperforming assets
/ total loans and leases plus OREO
|
|
0.48
|
|
|
|
0.57
|
|
|
|
0.72
|
|
|
|
0.79
|
|
|
|
0.77
|
|
|
Allowance for credit
losses on loans and leases / nonperforming loans and
leases
|
|
309.44
|
|
|
|
255.05
|
|
|
|
218.29
|
|
|
|
213.94
|
|
|
|
227.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
(non-GAAP)
|
|
8.12
|
%
|
|
|
8.35
|
%
|
|
|
8.30
|
%
|
|
|
8.35
|
%
|
|
|
8.19
|
%
|
|
Tangible common
equity (non-GAAP)
|
|
7.71
|
|
|
|
7.91
|
|
|
|
7.85
|
|
|
|
7.90
|
|
|
|
7.75
|
|
|
Tier 1 risk-based
capital (a)
|
|
12.39
|
|
|
|
12.30
|
|
|
|
12.55
|
|
|
|
11.99
|
|
|
|
11.88
|
|
|
Total risk-based
capital (a)
|
|
13.79
|
|
|
|
13.70
|
|
|
|
14.08
|
|
|
|
13.59
|
|
|
|
13.47
|
|
|
Common equity tier 1
risk-based capital (a)
|
|
11.77
|
|
|
|
11.66
|
|
|
|
11.89
|
|
|
|
11.35
|
|
|
|
11.23
|
|
|
Shareholders' equity
/ total assets
|
|
9.57
|
|
|
|
9.86
|
|
|
|
9.84
|
|
|
|
9.92
|
|
|
|
9.76
|
|
|
Net interest
margin
|
|
2.80
|
|
|
|
2.82
|
|
|
|
2.92
|
|
|
|
2.83
|
|
|
|
2.88
|
|
|
Efficiency ratio
(non-GAAP)
|
|
54.84
|
|
|
|
56.64
|
|
|
|
58.46
|
|
|
|
60.27
|
|
|
|
59.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and share
related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
equity
|
$
|
3,241,152
|
|
|
$
|
3,184,668
|
|
|
$
|
3,127,891
|
|
|
$
|
3,089,588
|
|
|
$
|
3,074,653
|
|
|
Book value per common
share
|
|
35.78
|
|
|
|
35.15
|
|
|
|
34.60
|
|
|
|
34.25
|
|
|
|
34.09
|
|
|
Tangible book value
per common share (non-GAAP)
|
|
29.63
|
|
|
|
28.99
|
|
|
|
28.41
|
|
|
|
28.04
|
|
|
|
27.86
|
|
|
Common stock closing
price
|
|
54.46
|
|
|
|
53.34
|
|
|
|
55.11
|
|
|
|
42.15
|
|
|
|
26.41
|
|
|
Dividends declared
per common share
|
|
0.40
|
|
|
|
0.40
|
|
|
|
0.40
|
|
|
|
0.40
|
|
|
|
0.40
|
|
|
Common shares issued
and outstanding
|
|
90,588
|
|
|
|
90,594
|
|
|
|
90,410
|
|
|
|
90,199
|
|
|
|
90,204
|
|
|
Weighted-average
common shares outstanding - Basic
|
|
90,038
|
|
|
|
90,027
|
|
|
|
89,809
|
|
|
|
89,645
|
|
|
|
89,630
|
|
|
Weighted-average
common shares outstanding - Diluted
|
|
90,232
|
|
|
|
90,221
|
|
|
|
90,108
|
|
|
|
89,915
|
|
|
|
89,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Presented as
preliminary for September 30, 2021 and actual for the remaining
periods. In accordance with regulatory capital rules, the Company
elected an option to delay the estimated impact of CECL on its
regulatory capital for two years followed by a three year
transition period ending December 31, 2024. As a result, capital
ratios and amounts as of September 30, 2021 exclude the impact of
the increased allowance for credit losses on loans,
held-to-maturity debt securities and unfunded loan commitments
attributed to the adoption of CECL.
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Balance Sheets (unaudited)
|
|
(In
thousands)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
September 30,
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
161,369
|
|
|
$
|
193,430
|
|
|
$
|
181,524
|
|
Interest-bearing
deposits
|
|
2,442,790
|
|
|
|
1,386,463
|
|
|
|
60,276
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
3,410,443
|
|
|
|
3,262,893
|
|
|
|
3,304,217
|
|
Held to maturity,
net
|
|
5,986,308
|
|
|
|
5,623,243
|
|
|
|
5,723,128
|
|
Total securities,
net
|
|
9,396,751
|
|
|
|
8,886,136
|
|
|
|
9,027,345
|
|
Loans held for
sale
|
|
24,969
|
|
|
|
4,335
|
|
|
|
29,018
|
|
Loans and
Leases:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
8,159,127
|
|
|
|
8,417,719
|
|
|
|
8,612,549
|
|
Commercial real
estate
|
|
6,522,679
|
|
|
|
6,410,672
|
|
|
|
6,307,567
|
|
Residential
mortgages
|
|
5,167,527
|
|
|
|
4,856,302
|
|
|
|
4,885,821
|
|
Consumer
|
|
1,731,002
|
|
|
|
1,790,308
|
|
|
|
2,046,086
|
|
Total loans and
leases
|
|
21,580,335
|
|
|
|
21,475,001
|
|
|
|
21,852,023
|
|
Allowance for credit
losses on loans and leases
|
|
(314,922)
|
|
|
|
(307,945)
|
|
|
|
(369,811)
|
|
Loans and leases,
net
|
|
21,265,413
|
|
|
|
21,167,056
|
|
|
|
21,482,212
|
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
|
75,936
|
|
|
|
76,874
|
|
|
|
89,611
|
|
Premises and
equipment, net
|
|
209,573
|
|
|
|
215,716
|
|
|
|
250,535
|
|
Goodwill and other
intangible assets, net
|
|
557,360
|
|
|
|
558,485
|
|
|
|
561,902
|
|
Cash surrender value
of life insurance policies
|
|
572,368
|
|
|
|
570,380
|
|
|
|
561,021
|
|
Deferred tax asset,
net
|
|
96,489
|
|
|
|
78,268
|
|
|
|
76,695
|
|
Accrued interest
receivable and other assets
|
|
571,240
|
|
|
|
616,609
|
|
|
|
674,304
|
|
Total
Assets
|
$
|
35,374,258
|
|
|
$
|
33,753,752
|
|
|
$
|
32,994,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
$
|
7,154,835
|
|
|
$
|
6,751,373
|
|
|
$
|
6,136,814
|
|
Health savings
accounts
|
|
7,329,405
|
|
|
|
7,323,421
|
|
|
|
6,976,280
|
|
Interest-bearing
checking
|
|
4,181,825
|
|
|
|
3,843,725
|
|
|
|
3,390,921
|
|
Money
market
|
|
3,958,700
|
|
|
|
3,442,319
|
|
|
|
3,069,098
|
|
Savings
|
|
5,517,189
|
|
|
|
5,471,584
|
|
|
|
4,777,000
|
|
Certificates of
deposit
|
|
1,884,373
|
|
|
|
2,014,544
|
|
|
|
2,570,440
|
|
Total
deposits
|
|
30,026,327
|
|
|
|
28,846,966
|
|
|
|
26,920,553
|
|
Securities sold under
agreements to repurchase and other borrowings
|
|
655,871
|
|
|
|
507,124
|
|
|
|
1,301,822
|
|
Federal Home Loan
Bank advances
|
|
113,334
|
|
|
|
138,444
|
|
|
|
433,243
|
|
Long-term
debt
|
|
564,114
|
|
|
|
565,297
|
|
|
|
568,846
|
|
Accrued expenses and
other liabilities
|
|
628,423
|
|
|
|
366,216
|
|
|
|
550,289
|
|
Total
liabilities
|
|
31,988,069
|
|
|
|
30,424,047
|
|
|
|
29,774,753
|
|
Preferred
stock
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
Common shareholders'
equity
|
|
3,241,152
|
|
|
|
3,184,668
|
|
|
|
3,074,653
|
|
Total
shareholders' equity
|
|
3,386,189
|
|
|
|
3,329,705
|
|
|
|
3,219,690
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
35,374,258
|
|
|
$
|
33,753,752
|
|
|
$
|
32,994,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Statements of Income (unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
(In thousands,
except per share data)
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2020
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
|
196,273
|
|
|
$
|
188,001
|
|
|
$
|
572,728
|
|
|
$
|
600,709
|
|
Interest and
dividends on securities
|
|
43,362
|
|
|
|
51,009
|
|
|
|
133,895
|
|
|
|
164,687
|
|
Loans held for
sale
|
|
57
|
|
|
|
229
|
|
|
|
201
|
|
|
|
588
|
|
Total interest
income
|
|
239,692
|
|
|
|
239,239
|
|
|
|
706,824
|
|
|
|
765,984
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
4,571
|
|
|
|
12,598
|
|
|
|
16,104
|
|
|
|
59,246
|
|
Borrowings
|
|
5,430
|
|
|
|
7,385
|
|
|
|
16,413
|
|
|
|
32,274
|
|
Total interest
expense
|
|
10,001
|
|
|
|
19,983
|
|
|
|
32,517
|
|
|
|
91,520
|
|
Net interest
income
|
|
229,691
|
|
|
|
219,256
|
|
|
|
674,307
|
|
|
|
674,464
|
|
Provision for credit
losses
|
|
7,750
|
|
|
|
22,750
|
|
|
|
(39,500)
|
|
|
|
138,750
|
|
Net interest
income after provision for loan and lease losses
|
|
221,941
|
|
|
|
196,506
|
|
|
|
713,807
|
|
|
|
535,714
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
|
40,258
|
|
|
|
39,278
|
|
|
|
122,166
|
|
|
|
117,687
|
|
Loan and lease
related fees
|
|
10,881
|
|
|
|
6,568
|
|
|
|
27,056
|
|
|
|
20,032
|
|
Wealth and investment
services
|
|
9,985
|
|
|
|
8,255
|
|
|
|
29,475
|
|
|
|
24,096
|
|
Mortgage banking
activities
|
|
1,525
|
|
|
|
7,087
|
|
|
|
5,486
|
|
|
|
14,185
|
|
Increase in cash
surrender value of life insurance policies
|
|
3,666
|
|
|
|
3,695
|
|
|
|
10,802
|
|
|
|
10,899
|
|
Gain on investment
securities, net
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
Other
income
|
|
17,460
|
|
|
|
10,177
|
|
|
|
38,249
|
|
|
|
21,607
|
|
Total non-interest
income
|
|
83,775
|
|
|
|
75,060
|
|
|
|
233,234
|
|
|
|
208,514
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
105,352
|
|
|
|
104,019
|
|
|
|
310,706
|
|
|
|
305,637
|
|
Occupancy
|
|
12,430
|
|
|
|
14,275
|
|
|
|
42,090
|
|
|
|
43,005
|
|
Technology and
equipment
|
|
28,441
|
|
|
|
27,846
|
|
|
|
84,081
|
|
|
|
83,151
|
|
Marketing
|
|
3,721
|
|
|
|
3,852
|
|
|
|
9,452
|
|
|
|
10,640
|
|
Professional and
outside services
|
|
7,074
|
|
|
|
9,223
|
|
|
|
37,875
|
|
|
|
21,044
|
|
Intangible assets
amortization
|
|
1,124
|
|
|
|
1,089
|
|
|
|
3,395
|
|
|
|
3,013
|
|
Loan workout
expenses
|
|
203
|
|
|
|
612
|
|
|
|
924
|
|
|
|
1,497
|
|
Deposit
insurance
|
|
3,855
|
|
|
|
4,204
|
|
|
|
11,560
|
|
|
|
13,944
|
|
Other
expenses
|
|
18,037
|
|
|
|
18,876
|
|
|
|
55,164
|
|
|
|
57,485
|
|
Total non-interest
expense
|
|
180,237
|
|
|
|
183,996
|
|
|
|
555,247
|
|
|
|
539,416
|
|
Income before income
taxes
|
|
125,479
|
|
|
|
87,570
|
|
|
|
391,794
|
|
|
|
204,812
|
|
Income tax
expense
|
|
29,766
|
|
|
|
18,289
|
|
|
|
93,968
|
|
|
|
44,235
|
|
Net
income
|
|
95,713
|
|
|
|
69,281
|
|
|
|
297,826
|
|
|
|
160,577
|
|
Preferred stock
dividends and other
|
|
(2,542)
|
|
|
|
(2,391)
|
|
|
|
(7,567)
|
|
|
|
(6,819)
|
|
Earnings
applicable to common shareholders
|
$
|
93,171
|
|
|
$
|
66,890
|
|
|
$
|
290,259
|
|
|
$
|
153,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - Diluted
|
|
90,232
|
|
|
|
89,738
|
|
|
|
90,186
|
|
|
|
90,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.03
|
|
|
$
|
0.75
|
|
|
$
|
3.23
|
|
|
$
|
1.71
|
|
Diluted
|
|
1.03
|
|
|
|
0.75
|
|
|
|
3.22
|
|
|
|
1.70
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Consolidated Statements of Income
(unaudited)
|
|
|
Three Months
Ended
|
(In thousands,
except per share data)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases
|
$
|
196,273
|
|
|
$
|
185,919
|
|
|
$
|
190,536
|
|
|
$
|
189,010
|
|
|
$
|
188,001
|
Interest and
dividends on securities
|
|
43,362
|
|
|
|
45,586
|
|
|
|
44,947
|
|
|
|
46,874
|
|
|
|
51,009
|
Loans held for
sale
|
|
57
|
|
|
|
53
|
|
|
|
91
|
|
|
|
181
|
|
|
|
229
|
Total interest
income
|
|
239,692
|
|
|
|
231,558
|
|
|
|
235,574
|
|
|
|
236,065
|
|
|
|
239,239
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
4,571
|
|
|
|
5,094
|
|
|
|
6,439
|
|
|
|
8,651
|
|
|
|
12,598
|
Borrowings
|
|
5,430
|
|
|
|
5,612
|
|
|
|
5,371
|
|
|
|
10,485
|
|
|
|
7,385
|
Total interest
expense
|
|
10,001
|
|
|
|
10,706
|
|
|
|
11,810
|
|
|
|
19,136
|
|
|
|
19,983
|
Net interest
income
|
|
229,691
|
|
|
|
220,852
|
|
|
|
223,764
|
|
|
|
216,929
|
|
|
|
219,256
|
Provision for credit
losses
|
|
7,750
|
|
|
|
(21,500)
|
|
|
|
(25,750)
|
|
|
|
(1,000)
|
|
|
|
22,750
|
Net interest
income after provision for loan and lease losses
|
|
221,941
|
|
|
|
242,352
|
|
|
|
249,514
|
|
|
|
217,929
|
|
|
|
196,506
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
fees
|
|
40,258
|
|
|
|
41,439
|
|
|
|
40,469
|
|
|
|
38,345
|
|
|
|
39,278
|
Loan and lease
related fees
|
|
10,881
|
|
|
|
7,862
|
|
|
|
8,313
|
|
|
|
9,095
|
|
|
|
6,568
|
Wealth and investment
services
|
|
9,985
|
|
|
|
10,087
|
|
|
|
9,403
|
|
|
|
8,820
|
|
|
|
8,255
|
Mortgage banking
activities
|
|
1,525
|
|
|
|
1,319
|
|
|
|
2,642
|
|
|
|
4,110
|
|
|
|
7,087
|
Increase in cash
surrender value of life insurance policies
|
|
3,666
|
|
|
|
3,603
|
|
|
|
3,533
|
|
|
|
3,662
|
|
|
|
3,695
|
Other
income
|
|
17,460
|
|
|
|
8,392
|
|
|
|
12,397
|
|
|
|
12,731
|
|
|
|
10,177
|
Total non-interest
income
|
|
83,775
|
|
|
|
72,702
|
|
|
|
76,757
|
|
|
|
76,763
|
|
|
|
75,060
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
105,352
|
|
|
|
97,754
|
|
|
|
107,600
|
|
|
|
122,754
|
|
|
|
104,019
|
Occupancy
|
|
12,430
|
|
|
|
14,010
|
|
|
|
15,650
|
|
|
|
28,024
|
|
|
|
14,275
|
Technology and
equipment
|
|
28,441
|
|
|
|
27,124
|
|
|
|
28,516
|
|
|
|
29,122
|
|
|
|
27,846
|
Marketing
|
|
3,721
|
|
|
|
3,227
|
|
|
|
2,504
|
|
|
|
3,485
|
|
|
|
3,852
|
Professional and
outside services
|
|
7,074
|
|
|
|
21,025
|
|
|
|
9,776
|
|
|
|
11,380
|
|
|
|
9,223
|
Intangible assets
amortization
|
|
1,124
|
|
|
|
1,132
|
|
|
|
1,139
|
|
|
|
1,147
|
|
|
|
1,089
|
Loan workout
expenses
|
|
203
|
|
|
|
327
|
|
|
|
394
|
|
|
|
261
|
|
|
|
612
|
Deposit
insurance
|
|
3,855
|
|
|
|
3,749
|
|
|
|
3,956
|
|
|
|
4,372
|
|
|
|
4,204
|
Other
expenses
|
|
18,037
|
|
|
|
18,680
|
|
|
|
18,447
|
|
|
|
18,985
|
|
|
|
18,876
|
Total non-interest
expense
|
|
180,237
|
|
|
|
187,028
|
|
|
|
187,982
|
|
|
|
219,530
|
|
|
|
183,996
|
Income before income
taxes
|
|
125,479
|
|
|
|
128,026
|
|
|
|
138,289
|
|
|
|
75,162
|
|
|
|
87,570
|
Income tax
expense
|
|
29,766
|
|
|
|
33,991
|
|
|
|
30,211
|
|
|
|
15,118
|
|
|
|
18,289
|
Net
income
|
|
95,713
|
|
|
|
94,035
|
|
|
|
108,078
|
|
|
|
60,044
|
|
|
|
69,281
|
Preferred stock
dividends and other
|
|
(2,542)
|
|
|
|
(2,480)
|
|
|
|
(2,548)
|
|
|
|
(2,329)
|
|
|
|
(2,391)
|
Earnings
applicable to common shareholders
|
$
|
93,171
|
|
|
$
|
91,555
|
|
|
$
|
105,530
|
|
|
$
|
57,715
|
|
|
$
|
66,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - Diluted
|
|
90,232
|
|
|
|
90,221
|
|
|
|
90,108
|
|
|
|
89,915
|
|
|
|
89,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.03
|
|
|
$
|
1.02
|
|
|
$
|
1.18
|
|
|
$
|
0.64
|
|
|
$
|
0.75
|
Diluted
|
|
1.03
|
|
|
|
1.01
|
|
|
|
1.17
|
|
|
|
0.64
|
|
|
|
0.75
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net
Interest Margin on a Fully Tax-equivalent Basis
(unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2021
|
|
|
|
|
|
|
|
2020
|
|
(Dollars in
thousands)
|
|
Average
balance
|
|
|
|
Interest
|
|
|
|
Yield/rate
|
|
|
|
|
|
|
|
Average
balance
|
|
|
Interest
|
|
Yield/rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
|
21,538,513
|
|
|
$
|
197,015
|
|
|
|
3.60
|
%
|
|
|
|
|
|
$
|
21,870,740
|
|
$
|
188,865
|
|
3.40
|
%
|
Investment securities
(a)
|
|
8,911,291
|
|
|
|
43,868
|
|
|
|
2.01
|
|
|
|
|
|
|
|
8,762,692
|
|
|
52,154
|
|
2.47
|
|
Federal Home Loan and
Federal
Reserve Bank stock
|
|
76,212
|
|
|
|
290
|
|
|
|
1.51
|
|
|
|
|
|
|
|
91,232
|
|
|
600
|
|
2.62
|
|
Interest-bearing
deposits (b)
|
|
2,334,986
|
|
|
|
896
|
|
|
|
0.15
|
|
|
|
|
|
|
|
102,059
|
|
|
26
|
|
0.10
|
|
Loans held for
sale
|
|
11,328
|
|
|
|
57
|
|
|
|
2.03
|
|
|
|
|
|
|
|
31,211
|
|
|
229
|
|
2.94
|
|
Total
interest-earning assets
|
|
32,872,330
|
|
|
$
|
242,126
|
|
|
|
2.92
|
%
|
|
|
|
|
|
|
30,857,934
|
|
$
|
241,874
|
|
3.13
|
%
|
Non-interest-earning
assets
|
|
2,021,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,057,503
|
|
|
|
|
|
|
Total
Assets
|
$
|
34,894,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32,915,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
|
7,182,116
|
|
|
$
|
-
|
|
|
|
-
|
%
|
|
|
|
|
|
$
|
6,228,436
|
|
$
|
-
|
|
-
|
%
|
Health savings
accounts
|
|
7,346,239
|
|
|
|
1,463
|
|
|
|
0.08
|
|
|
|
|
|
|
|
6,953,641
|
|
|
2,073
|
|
0.12
|
|
Interest-bearing
checking, money
market and savings
|
|
13,363,703
|
|
|
|
1,794
|
|
|
|
0.05
|
|
|
|
|
|
|
|
11,167,653
|
|
|
3,983
|
|
0.14
|
|
Certificates of
deposit
|
|
1,957,286
|
|
|
|
1,314
|
|
|
|
0.27
|
|
|
|
|
|
|
|
2,589,888
|
|
|
6,542
|
|
1.00
|
|
Total
deposits
|
|
29,849,344
|
|
|
|
4,571
|
|
|
|
0.06
|
|
|
|
|
|
|
|
26,939,618
|
|
|
12,598
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to
repurchase and other borrowings
|
|
544,311
|
|
|
|
721
|
|
|
|
0.52
|
|
|
|
|
|
|
|
1,225,616
|
|
|
608
|
|
0.19
|
|
Federal Home Loan
Bank advances
|
|
120,714
|
|
|
|
492
|
|
|
|
1.59
|
|
|
|
|
|
|
|
449,085
|
|
|
2,528
|
|
2.20
|
|
Long-term debt
(a)
|
|
564,692
|
|
|
|
4,217
|
|
|
|
3.22
|
|
|
|
|
|
|
|
569,425
|
|
|
4,249
|
|
3.25
|
|
Total
borrowings
|
|
1,229,717
|
|
|
|
5,430
|
|
|
|
1.82
|
|
|
|
|
|
|
|
2,244,126
|
|
|
7,385
|
|
1.33
|
|
Total
interest-bearing liabilities
|
|
31,079,061
|
|
|
$
|
10,001
|
|
|
|
0.13
|
%
|
|
|
|
|
|
|
29,183,744
|
|
$
|
19,983
|
|
0.27
|
%
|
Non-interest-bearing
liabilities
|
|
439,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
526,363
|
|
|
|
|
|
|
Total
liabilities
|
|
31,518,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,710,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
145,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145,037
|
|
|
|
|
|
|
Common shareholders'
equity
|
|
3,230,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,060,293
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
3,375,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,205,330
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
34,894,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32,915,437
|
|
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
|
|
|
232,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221,891
|
|
|
|
Less: tax-equivalent
adjustments
|
|
|
|
|
|
(2,434)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,635)
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
229,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
219,256
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
|
2.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
2.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes
of the yield/rate computation, unrealized gain (loss) balances on
securities available for sale and senior fixed-rate notes hedges
are excluded.
|
|
(b)
Interest-bearing deposits is a component of cash and cash
equivalents.
|
|
WEBSTER FINANCIAL
CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net
Interest Margin on a Fully Tax-equivalent Basis
(unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
|
|
|
|
|
|
|
2020
|
|
(Dollars in
thousands)
|
|
Average
balance
|
|
|
|
Interest
|
|
|
|
Yield/rate
|
|
|
|
|
|
|
|
Average
balance
|
|
|
Interest
|
|
Yield/rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
|
21,477,967
|
|
|
$
|
574,984
|
|
|
|
3.54
|
%
|
|
|
|
|
|
$
|
21,270,350
|
|
$
|
603,100
|
|
3.75
|
%
|
Investment securities
(a)
|
|
8,878,820
|
|
|
|
136,727
|
|
|
|
2.09
|
|
|
|
|
|
|
|
8,554,646
|
|
|
167,027
|
|
2.67
|
|
Federal Home Loan and
Federal Reserve Bank stock
|
|
77,040
|
|
|
|
909
|
|
|
|
1.58
|
|
|
|
|
|
|
|
108,788
|
|
|
2,716
|
|
3.33
|
|
Interest-bearing
deposits (b)
|
|
1,434,552
|
|
|
|
1,419
|
|
|
|
0.13
|
|
|
|
|
|
|
|
89,989
|
|
|
222
|
|
0.32
|
|
Loans held for
sale
|
|
11,515
|
|
|
|
201
|
|
|
|
2.33
|
|
|
|
|
|
|
|
25,944
|
|
|
588
|
|
3.02
|
|
Total
interest-earning assets
|
|
31,879,894
|
|
|
$
|
714,240
|
|
|
|
2.98
|
%
|
|
|
|
|
|
|
30,049,717
|
|
$
|
773,653
|
|
3.43
|
%
|
Non-interest-earning
assets
|
|
1,968,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,017,159
|
|
|
|
|
|
|
Total
Assets
|
$
|
33,848,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32,066,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
|
6,800,456
|
|
|
$
|
-
|
|
|
|
-
|
%
|
|
|
|
|
|
$
|
5,525,573
|
|
$
|
-
|
|
-
|
%
|
Health savings
accounts
|
|
7,414,332
|
|
|
|
4,720
|
|
|
|
0.09
|
|
|
|
|
|
|
|
6,854,101
|
|
|
7,973
|
|
0.16
|
|
Interest-bearing
checking, money market and savings
|
|
12,579,762
|
|
|
|
5,117
|
|
|
|
0.05
|
|
|
|
|
|
|
|
10,427,634
|
|
|
22,848
|
|
0.29
|
|
Certificates of
deposit
|
|
2,146,218
|
|
|
|
6,267
|
|
|
|
0.39
|
|
|
|
|
|
|
|
2,841,385
|
|
|
28,425
|
|
1.34
|
|
Total
deposits
|
|
28,940,768
|
|
|
|
16,104
|
|
|
|
0.07
|
|
|
|
|
|
|
|
25,648,693
|
|
|
59,246
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase and other borrowings
|
|
522,638
|
|
|
|
2,216
|
|
|
|
0.56
|
|
|
|
|
|
|
|
1,366,292
|
|
|
5,318
|
|
0.51
|
|
Federal Home Loan
Bank advances
|
|
131,606
|
|
|
|
1,539
|
|
|
|
1.54
|
|
|
|
|
|
|
|
870,063
|
|
|
13,145
|
|
1.98
|
|
Long-term debt
(a)
|
|
565,866
|
|
|
|
12,658
|
|
|
|
3.22
|
|
|
|
|
|
|
|
563,805
|
|
|
13,811
|
|
3.52
|
|
Total
borrowings
|
|
1,220,110
|
|
|
|
16,413
|
|
|
|
1.85
|
|
|
|
|
|
|
|
2,800,160
|
|
|
32,274
|
|
1.55
|
|
Total
interest-bearing liabilities
|
|
30,160,878
|
|
|
$
|
32,517
|
|
|
|
0.14
|
%
|
|
|
|
|
|
|
28,448,853
|
|
$
|
91,520
|
|
0.43
|
%
|
Non-interest-bearing
liabilities
|
|
373,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
433,207
|
|
|
|
|
|
|
Total
liabilities
|
|
30,534,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,882,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
145,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145,037
|
|
|
|
|
|
|
Common shareholders'
equity
|
|
3,169,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,039,779
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
3,314,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,184,816
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
33,848,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32,066,876
|
|
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
|
|
|
681,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
682,133
|
|
|
|
Less: tax-equivalent
adjustments
|
|
|
|
|
|
(7,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,669)
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
674,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
674,464
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
|
2.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
3.03
|
%
|
|
|
(a) For purposes
of the yield/rate computation, unrealized gain (loss) balances on
securities available for sale and senior fixed-rate notes hedges
are excluded.
|
|
(b)
Interest-bearing deposits is a component of cash and cash
equivalents.
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Loan and Lease Balances (unaudited)
|
(Dollars in
thousands)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
Loan and Lease
Balances (actual):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
|
7,172,345
|
|
|
$
|
7,473,758
|
|
|
$
|
7,530,066
|
|
|
$
|
7,687,300
|
|
|
$
|
7,722,838
|
Asset-based
lending
|
|
986,782
|
|
|
|
943,961
|
|
|
|
907,421
|
|
|
|
890,598
|
|
|
|
889,711
|
Commercial real
estate
|
|
6,522,679
|
|
|
|
6,410,672
|
|
|
|
6,338,056
|
|
|
|
6,322,637
|
|
|
|
6,307,567
|
Residential
mortgages
|
|
5,167,527
|
|
|
|
4,856,302
|
|
|
|
4,668,945
|
|
|
|
4,782,016
|
|
|
|
4,885,821
|
Consumer
|
|
1,731,002
|
|
|
|
1,790,308
|
|
|
|
1,856,895
|
|
|
|
1,958,664
|
|
|
|
2,046,086
|
Total Loan and
Lease Balances
|
|
21,580,335
|
|
|
|
21,475,001
|
|
|
|
21,301,383
|
|
|
|
21,641,215
|
|
|
|
21,852,023
|
Allowance for credit
losses on loans and leases
|
|
(314,922)
|
|
|
|
(307,945)
|
|
|
|
(328,351)
|
|
|
|
(359,431)
|
|
|
|
(369,811)
|
Loans and Leases,
net
|
$
|
21,265,413
|
|
|
$
|
21,167,056
|
|
|
$
|
20,973,032
|
|
|
$
|
21,281,784
|
|
|
$
|
21,482,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and Lease
Balances (average):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
|
7,280,258
|
|
|
$
|
7,545,398
|
|
|
$
|
7,650,367
|
|
|
$
|
7,662,828
|
|
|
$
|
7,683,879
|
Asset-based
lending
|
|
956,535
|
|
|
|
937,580
|
|
|
|
896,093
|
|
|
|
874,221
|
|
|
|
922,653
|
Commercial real
estate
|
|
6,510,100
|
|
|
|
6,365,830
|
|
|
|
6,303,765
|
|
|
|
6,363,776
|
|
|
|
6,260,114
|
Residential
mortgages
|
|
5,036,329
|
|
|
|
4,738,859
|
|
|
|
4,720,703
|
|
|
|
4,821,199
|
|
|
|
4,914,368
|
Consumer
|
|
1,755,291
|
|
|
|
1,825,772
|
|
|
|
1,910,392
|
|
|
|
2,007,226
|
|
|
|
2,089,726
|
Total Loan and
Lease Balances
|
|
21,538,513
|
|
|
|
21,413,439
|
|
|
|
21,481,320
|
|
|
|
21,729,250
|
|
|
|
21,870,740
|
Allowance for credit
losses on loans and leases
|
|
(308,279)
|
|
|
|
(332,522)
|
|
|
|
(364,358)
|
|
|
|
(375,080)
|
|
|
|
(363,552)
|
Loans and Leases,
net
|
$
|
21,230,234
|
|
|
$
|
21,080,917
|
|
|
$
|
21,116,962
|
|
|
$
|
21,354,170
|
|
|
$
|
21,507,188
|
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Nonperforming Assets and Past Due Loans and Leases
(unaudited)
|
(Dollars in
thousands)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
Nonperforming
loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
|
40,774
|
|
|
$
|
57,831
|
|
|
$
|
60,103
|
|
|
$
|
71,499
|
|
|
$
|
75,080
|
Asset-based
lending
|
|
2,139
|
|
|
|
2,403
|
|
|
|
2,430
|
|
|
|
2,622
|
|
|
|
3,789
|
Commercial real
estate
|
|
15,972
|
|
|
|
12,687
|
|
|
|
13,743
|
|
|
|
21,222
|
|
|
|
8,784
|
Residential
mortgages
|
|
19,327
|
|
|
|
21,467
|
|
|
|
42,708
|
|
|
|
41,033
|
|
|
|
41,498
|
Consumer
|
|
23,558
|
|
|
|
26,353
|
|
|
|
31,437
|
|
|
|
31,629
|
|
|
|
33,485
|
Total
nonperforming loans and leases
|
$
|
101,770
|
|
|
$
|
120,741
|
|
|
$
|
150,421
|
|
|
$
|
168,005
|
|
|
$
|
162,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned and repossessed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
102
|
|
|
$
|
175
|
|
|
$
|
175
|
Residential
mortgages
|
|
1,759
|
|
|
|
1,934
|
|
|
|
1,695
|
|
|
|
1,544
|
|
|
|
3,899
|
Consumer
|
|
680
|
|
|
|
822
|
|
|
|
590
|
|
|
|
590
|
|
|
|
604
|
Total other real
estate owned and repossessed assets
|
$
|
2,439
|
|
|
$
|
2,756
|
|
|
$
|
2,387
|
|
|
$
|
2,309
|
|
|
$
|
4,678
|
Total
nonperforming assets
|
$
|
104,209
|
|
|
$
|
123,497
|
|
|
$
|
152,808
|
|
|
$
|
170,314
|
|
|
$
|
167,314
|
|
Past due 30-89
days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
$
|
5,537
|
|
|
$
|
3,154
|
|
|
$
|
7,395
|
|
|
$
|
8,918
|
|
|
$
|
3,821
|
Asset-based
lending
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,175
|
|
|
|
-
|
Commercial real
estate
|
|
821
|
|
|
|
1,679
|
|
|
|
699
|
|
|
|
3,003
|
|
|
|
329
|
Residential
mortgages
|
|
3,447
|
|
|
|
4,690
|
|
|
|
5,241
|
|
|
|
10,623
|
|
|
|
9,291
|
Consumer
|
|
7,158
|
|
|
|
8,829
|
|
|
|
7,036
|
|
|
|
8,720
|
|
|
|
8,349
|
Total past due
30-89 days
|
|
16,963
|
|
|
|
18,352
|
|
|
|
20,371
|
|
|
|
32,439
|
|
|
|
21,790
|
Past due 90 days
or more and accruing
|
|
107
|
|
|
|
25
|
|
|
|
50
|
|
|
|
445
|
|
|
|
-
|
Total past due
loans and leases
|
$
|
17,070
|
|
|
$
|
18,377
|
|
|
$
|
20,421
|
|
|
$
|
32,884
|
|
|
$
|
21,790
|
WEBSTER FINANCIAL
CORPORATION
Five Quarter Changes in the Allowance for Credit Losses on Loans
and Leases (unaudited)
|
|
|
|
For the Three
Months Ended
|
|
(Dollars in
thousands)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
|
Beginning
balance
|
$
|
307,945
|
|
|
$
|
328,351
|
|
|
$
|
359,431
|
|
|
$
|
369,811
|
|
|
$
|
358,522
|
|
Provision
|
|
7,898
|
|
|
|
(21,574)
|
|
|
|
(25,759)
|
|
|
|
(992)
|
|
|
|
22,753
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
|
1,706
|
|
|
|
431
|
|
|
|
1,164
|
|
|
|
7,876
|
|
|
|
12,085
|
|
Asset-based
lending
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
Commercial real
estate
|
|
17
|
|
|
|
163
|
|
|
|
5,157
|
|
|
|
688
|
|
|
|
1,399
|
|
Residential
mortgages
|
|
88
|
|
|
|
1,105
|
|
|
|
380
|
|
|
|
105
|
|
|
|
546
|
|
Consumer
|
|
1,965
|
|
|
|
1,703
|
|
|
|
2,594
|
|
|
|
2,673
|
|
|
|
1,717
|
|
Total
charge-offs
|
|
3,776
|
|
|
|
3,402
|
|
|
|
9,295
|
|
|
|
11,342
|
|
|
|
15,757
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
non-mortgage
|
|
137
|
|
|
|
824
|
|
|
|
209
|
|
|
|
232
|
|
|
|
1,978
|
|
Asset-based
lending
|
|
-
|
|
|
|
2
|
|
|
|
1,424
|
|
|
|
33
|
|
|
|
-
|
|
Commercial real
estate
|
|
5
|
|
|
|
10
|
|
|
|
3
|
|
|
|
3
|
|
|
|
47
|
|
Residential
mortgages
|
|
672
|
|
|
|
782
|
|
|
|
1,158
|
|
|
|
190
|
|
|
|
521
|
|
Consumer
|
|
2,041
|
|
|
|
2,952
|
|
|
|
1,180
|
|
|
|
1,496
|
|
|
|
1,747
|
|
Total
recoveries
|
|
2,855
|
|
|
|
4,570
|
|
|
|
3,974
|
|
|
|
1,954
|
|
|
|
4,293
|
|
Total net
charge-offs (recoveries)
|
|
921
|
|
|
|
(1,168)
|
|
|
|
5,321
|
|
|
|
9,388
|
|
|
|
11,464
|
|
Ending
balance
|
$
|
314,922
|
|
|
$
|
307,945
|
|
|
$
|
328,351
|
|
|
$
|
359,431
|
|
|
$
|
369,811
|
|
WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates
its business based on certain ratios that utilize non-GAAP
financial measures. The Company believes the use of these non-GAAP
financial measures provides additional clarity in assessing the
results and financial position of the Company. Other companies may
define or calculate supplemental financial data
differently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The efficiency ratio,
which measures the costs expended to generate a dollar of revenue,
is calculated excluding certain non-operational items. Return on
average tangible common shareholders' equity measures the Company's
net income available to common shareholders, adjusted for the
tax-effected amortization of intangible assets, as a percentage of
average shareholders' equity less average preferred stock and
average goodwill and intangible assets. The tangible equity ratio
represents shareholders' equity less goodwill and intangible assets
divided by total assets less goodwill and intangible assets. The
tangible common equity ratio represents shareholders' equity less
preferred stock and goodwill and intangible assets divided by total
assets less goodwill and intangible assets. Tangible book value per
common share represents shareholders' equity less preferred stock
and goodwill and intangible assets divided by common shares
outstanding at the end of the period. Core deposits express total
deposits less time deposits, including brokered time deposits.
Adjusted diluted earnings per share (EPS) is calculated by
excluding after tax non-operational items from reported earnings
applicable to common shareholders. See the tables below for
reconciliations of these non-GAAP financial measures with financial
measures defined by GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
|
(In thousands,
except per share data)
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
September 30,
2020
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
$
|
180,237
|
|
|
$
|
187,028
|
|
|
$
|
187,982
|
|
|
$
|
219,530
|
|
|
$
|
183,996
|
|
Less: Foreclosed
property activity (GAAP)
|
|
(142)
|
|
|
|
(137)
|
|
|
|
91
|
|
|
|
(836)
|
|
|
|
(201)
|
|
Intangible assets
amortization (GAAP)
|
|
1,124
|
|
|
|
1,132
|
|
|
|
1,139
|
|
|
|
1,147
|
|
|
|
1,089
|
|
Strategic initiatives
(non-GAAP)
|
|
(4,011)
|
|
|
|
1,138
|
|
|
|
9,441
|
|
|
|
38,265
|
|
|
|
4,786
|
|
Merger related
(non-GAAP)
|
|
9,847
|
|
|
|
17,047
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-interest expense
(non-GAAP)
|
$
|
173,419
|
|
|
$
|
167,848
|
|
|
$
|
177,311
|
|
|
$
|
180,954
|
|
|
$
|
178,322
|
|
Net interest income
(GAAP)
|
$
|
229,691
|
|
|
$
|
220,852
|
|
|
$
|
223,764
|
|
|
$
|
216,929
|
|
|
$
|
219,256
|
|
Add: Tax-equivalent
adjustment (non-GAAP)
|
|
2,434
|
|
|
|
2,487
|
|
|
|
2,495
|
|
|
|
2,577
|
|
|
|
2,635
|
|
Non-interest income
(GAAP)
|
|
83,775
|
|
|
|
72,702
|
|
|
|
76,757
|
|
|
|
76,763
|
|
|
|
75,060
|
|
Other
(non-GAAP)
|
|
327
|
|
|
|
309
|
|
|
|
277
|
|
|
|
291
|
|
|
|
297
|
|
Loss on hedge
terminations (GAAP)
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,680
|
|
|
|
-
|
|
Income
(non-GAAP)
|
$
|
316,227
|
|
|
$
|
296,350
|
|
|
$
|
303,293
|
|
|
$
|
300,240
|
|
|
$
|
297,248
|
|
Efficiency ratio
(non-GAAP)
|
|
54.84
|
%
|
|
|
56.64
|
%
|
|
|
58.46
|
%
|
|
|
60.27
|
%
|
|
|
59.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
|
95,713
|
|
|
$
|
94,035
|
|
|
$
|
108,078
|
|
|
$
|
60,044
|
|
|
$
|
69,281
|
|
Less: Preferred stock
dividends (GAAP)
|
|
1,968
|
|
|
|
1,969
|
|
|
|
1,969
|
|
|
|
1,969
|
|
|
|
1,968
|
|
Add: Intangible
assets amortization, tax-effected (GAAP)
|
|
888
|
|
|
|
894
|
|
|
|
900
|
|
|
|
906
|
|
|
|
860
|
|
Income adjusted for
preferred stock dividends and intangible assets amortization
(non-GAAP)
|
$
|
94,633
|
|
|
$
|
92,960
|
|
|
$
|
107,009
|
|
|
$
|
58,981
|
|
|
$
|
68,173
|
|
Income adjusted for
preferred stock dividends and intangible assets amortization,
annualized basis (non-GAAP)
|
$
|
378,532
|
|
|
$
|
371,840
|
|
|
$
|
428,036
|
|
|
$
|
235,924
|
|
|
$
|
272,692
|
|
Average shareholders'
equity (non-GAAP)
|
$
|
3,375,401
|
|
|
$
|
3,311,406
|
|
|
$
|
3,254,203
|
|
|
$
|
3,239,221
|
|
|
$
|
3,205,330
|
|
Less: Average
preferred stock (non-GAAP)
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
Average goodwill and
other intangible assets (non-GAAP)
|
|
557,902
|
|
|
|
559,032
|
|
|
|
560,173
|
|
|
|
561,303
|
|
|
|
560,959
|
|
Average tangible
common shareholders' equity (non-GAAP)
|
$
|
2,672,462
|
|
|
$
|
2,607,337
|
|
|
$
|
2,548,993
|
|
|
$
|
2,532,881
|
|
|
$
|
2,499,334
|
|
Return on average
tangible common shareholders' equity (non-GAAP)
|
|
14.16
|
%
|
|
|
14.26
|
%
|
|
|
16.79
|
%
|
|
|
9.31
|
%
|
|
|
10.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
$
|
3,386,189
|
|
|
$
|
3,329,705
|
|
|
$
|
3,272,928
|
|
|
$
|
3,234,625
|
|
|
$
|
3,219,690
|
|
Less: Goodwill and
other intangible assets (GAAP)
|
|
557,360
|
|
|
|
558,485
|
|
|
|
559,617
|
|
|
|
560,756
|
|
|
|
561,902
|
|
Tangible
shareholders' equity (non-GAAP)
|
$
|
2,828,829
|
|
|
$
|
2,771,220
|
|
|
$
|
2,713,311
|
|
|
$
|
2,673,869
|
|
|
$
|
2,657,788
|
|
Total assets
(GAAP)
|
$
|
35,374,258
|
|
|
$
|
33,753,752
|
|
|
$
|
33,259,037
|
|
|
$
|
32,590,690
|
|
|
$
|
32,994,443
|
|
Less: Goodwill and
other intangible assets (GAAP)
|
|
557,360
|
|
|
|
558,485
|
|
|
|
559,617
|
|
|
|
560,756
|
|
|
|
561,902
|
|
Tangible assets
(non-GAAP)
|
$
|
34,816,898
|
|
|
$
|
33,195,267
|
|
|
$
|
32,699,420
|
|
|
$
|
32,029,934
|
|
|
$
|
32,432,541
|
|
Tangible equity
(non-GAAP)
|
|
8.12
|
%
|
|
|
8.35
|
%
|
|
|
8.30
|
%
|
|
|
8.35
|
%
|
|
|
8.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity (non-GAAP)
|
$
|
2,828,829
|
|
|
$
|
2,771,220
|
|
|
$
|
2,713,311
|
|
|
$
|
2,673,869
|
|
|
$
|
2,657,788
|
|
Less: Preferred stock
(GAAP)
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
|
|
145,037
|
|
Tangible common
shareholders' equity (non-GAAP)
|
$
|
2,683,792
|
|
|
$
|
2,626,183
|
|
|
$
|
2,568,274
|
|
|
$
|
2,528,832
|
|
|
$
|
2,512,751
|
|
Tangible assets
(non-GAAP)
|
$
|
34,816,898
|
|
|
$
|
33,195,267
|
|
|
$
|
32,699,420
|
|
|
$
|
32,029,934
|
|
|
$
|
32,432,541
|
|
Tangible common
equity (non-GAAP)
|
|
7.71
|
%
|
|
|
7.91
|
%
|
|
|
7.85
|
%
|
|
|
7.90
|
%
|
|
|
7.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity (non-GAAP)
|
$
|
2,683,792
|
|
|
$
|
2,626,183
|
|
|
$
|
2,568,274
|
|
|
$
|
2,528,832
|
|
|
$
|
2,512,751
|
|
Common shares
outstanding
|
|
90,588
|
|
|
|
90,594
|
|
|
|
90,410
|
|
|
|
90,199
|
|
|
|
90,204
|
|
Tangible book
value per common share (non-GAAP)
|
$
|
29.63
|
|
|
$
|
28.99
|
|
|
$
|
28.41
|
|
|
$
|
28.04
|
|
|
$
|
27.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
|
30,026,327
|
|
|
$
|
28,846,966
|
|
|
$
|
28,481,834
|
|
|
$
|
27,335,436
|
|
|
$
|
26,920,553
|
|
Less: Certificates of
deposit
|
|
1,884,373
|
|
|
|
2,014,544
|
|
|
|
2,234,133
|
|
|
|
2,487,818
|
|
|
|
2,570,440
|
|
Core deposits
(non-GAAP)
|
$
|
28,141,954
|
|
|
$
|
26,832,422
|
|
|
$
|
26,247,701
|
|
|
$
|
24,847,618
|
|
|
$
|
24,350,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings
adjusted for strategic optimization initiatives and merger related
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Income
|
|
|
|
Earnings
Applicable to Common Shareholders
|
|
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
Reported
(GAAP)
|
$
|
125.5
|
|
|
$
|
93.2
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
Strategic
initiatives
|
|
(4.0)
|
|
|
|
(3.0)
|
|
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
Merger
related
|
|
9.8
|
|
|
|
7.3
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
Adjusted
(non-GAAP)
|
$
|
131.3
|
|
|
$
|
97.5
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/webster-reports-third-quarter-2021-earnings-of-1-03-per-diluted-share-301405610.html
SOURCE Webster Financial Corporation