U.S. Markets closed

Webster Reports Second Quarter 2019 Earnings Of $1.05 Per Share

WATERBURY, Conn., July 18, 2019 /PRNewswire/ -- Webster Financial Corporation (WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced earnings applicable to common shareholders of $96.2 million, or $1.05 per diluted share, for the quarter ended June 30, 2019, compared to $79.5 million, or $0.86 per diluted share, for the quarter ended June 30, 2018. Earnings per diluted share would have been $0.92 for the quarter ended June 30, 2018, adjusting for one-time expenses of $8.6 million.

"Webster's solid performance continued in the second quarter as we've now posted four consecutive quarters with return on common equity above 13 percent," said John R. Ciulla, president and chief executive officer. "Tangible book value per share is 15 percent higher than a year ago even as we increased the quarterly common dividend by 21 percent in April."

Highlights for the second quarter of 2019 compared to prior year:

  • Revenue of $317.6 million, an increase of 8.3 percent.
  • Loan growth of $1.2 billion, or 6.9 percent, led by commercial and commercial real estate loans, which increased 10.5 percent.
  • Deposit growth of $1.3 billion, or 5.9 percent, with growth of $694 million, or 12.6 percent, in HSA deposits.
  • Net interest margin of 3.63 percent, up 6 basis points.
  • Pre-tax, pre-provision net revenue growth of $24.1 million, or 21.3 percent, led by HSA Bank's growth of 23.9 percent. Adjusting for $8.6 million of one-time expenses in the prior year, growth was 12.7 percent.
  • Efficiency ratio of 56.1 percent (non-GAAP) compared to 57.8 percent.
  • Annualized return on average common shareholders' equity of 13.47 percent compared to 12.22 percent; annualized return on average tangible common shareholders' equity (non-GAAP) of 16.88 percent compared to 15.76 percent.

"Total revenue growth of 8 percent compared to prior year resulted in record pre-tax, pre-provision net revenue and our ninth consecutive quarter of positive operating leverage," said Glenn MacInnes, executive vice president and chief financial officer. "Credit quality remains strong, with noteworthy reductions this quarter in nonperforming, commercial classified and past due loans."

Line of Business performance compared to the second quarter of 2018

Commercial Banking
Webster's Commercial Banking segment serves middle market, commercial real estate, asset-based lending, equipment finance, private banking, and treasury and payment solutions clients. As of June 30, 2019, Commercial Banking had $11.0 billion in loans and leases and $3.9 billion in deposit balances.

Commercial Banking Operating Results:


Three months ended June 30,


Percent

Favorable/

(In thousands)

2019

2018


(Unfavorable)

Net interest income

$92,171

$88,459


4.2%

Non-interest income

14,645

15,041


(2.6)

Operating revenue

106,816

103,500


3.2

Non-interest expense

46,196

42,979


(7.5)

Pre-tax, pre-provision net revenue

$60,620

$60,521


0.2







At June 30,


Percent

Increase/

(In millions)

2019

2018


(Decrease)

Loans and leases

$11,005

$9,936


10.8%

Deposits

$3,870

$3,681


5.1

Pre-tax, pre-provision net revenue increased $0.1 million to $60.6 million in the quarter as compared to prior year. Net interest income increased $3.7 million to $92.2 million, primarily due to loan and deposit growth and higher deposit margins. Non-interest income decreased $0.4 million to $14.6 million, primarily due to lower syndication fees in the quarter. Non-interest expense increased $3.2 million to $46.2 million, primarily due to investments in people and technology.

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 June 30, 2019, HSA Bank had $8.0 billion in total footings comprising $6.2 billion in deposit balances and $1.8 billion in assets under administration through linked investment accounts.

HSA Bank Operating Results:


Three months ended June 30,


Percent

Favorable/

(In thousands)

2019

2018


(Unfavorable)

Net interest income

$42,626

$35,265


20.9%

Non-interest income

24,979

22,882


9.2

Operating revenue

67,605

58,147


16.3

Non-interest expense

34,253

31,220


(9.7)

Pre-tax net revenue

$33,352

$26,927


23.9






At June 30,


Percent

Increase/

(Dollars in millions)

2019

2018


(Decrease)

Number of accounts (thousands)

2,964

2,674


10.8%

Deposits

$6,212

$5,518


12.6

Linked investment accounts*

1,817

1,476


23.1

Total footings

$8,029

$6,994


14.8

*Linked investment accounts are held off balance sheet

Pre-tax net revenue increased $6.4 million to $33.4 million in the quarter as compared to prior year. Net interest income increased $7.4 million to $42.6 million, due to 13 percent growth in deposits and 7 percent improvement in deposit spreads. Non-interest income increased $2.1 million to $25.0 million, primarily due to 11 percent growth in accounts over the past year. Non-interest expense increased $3.0 million to $34.3 million, primarily due to account growth and expanded distribution.

Community Banking
Community Banking serves consumer and business banking customers primarily throughout southern New England and into Westchester County, New York. Community Banking is comprised of the Personal Banking and Business Banking operating segments, as well as a distribution network consisting of 157 banking centers and 308 ATMs, a customer care center, and a full range of web and mobile-based banking services. As of June 30, 2019, Community Banking had $8.3 billion in loans and $12.5 billion in deposit balances.

Community Banking Operating Results:


Three months ended June 30,


Percent

Favorable/

(In thousands)

2019

2018


(Unfavorable)

Net interest income

$102,699

$101,902


0.8%

Non-interest income

27,675

26,378


4.9

Operating revenue

130,374

128,280


1.6

Non-interest expense

96,166

95,197


(1.0)

Pre-tax, pre-provision net revenue

$34,208

$33,083


3.4







At June 30,


Percent

Increase/

(In millions)

2019

2018


(Decrease)

Loans

$8,265

$8,090


2.2%

Deposits

$12,480

$11,796


5.8

Pre-tax, pre-provision net revenue increased $1.1 million to $34.2 million in the quarter as compared to prior year. Net interest income increased $0.8 million to $102.7 million, primarily due to growth in both deposit and loan balances, which more than offset decreased interest rate spreads on those balances.  Non-interest income was up $1.3 million due to increased deposit and loan related fee income. Non-interest expense increased $1.0 million to $96.2 million driven by increased employee related expenses, investments in technology and compliance.

Consolidated financial performance:

Quarterly net interest income compared to the second quarter of 2018:

  • Net interest income was $241.8 million compared to $225.0 million.
  • Net interest margin was 3.63 percent compared to 3.57 percent. The yield on interest-earning assets increased by 26 basis points, and the cost of interest-bearing liabilities increased by 21 basis points.
  • Average interest-earning assets totaled $26.7 billion and grew by $1.4 billion, or 5.7 percent.
  • Average loans totaled $19.0 billion and grew by $1.1 billion, or 6.4 percent.
  • Average deposits totaled $22.7 billion and grew by $1.3 billion, or 6.3 percent.

Quarterly provision for loan losses:

  • The provision for loan losses was $11.9 million, compared to $8.6 million in the prior quarter and $10.5 million a year ago.
  • Net charge-offs were $11.6 million, compared to $9.6 million in the prior quarter and $8.5 million a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.24 percent, compared to 0.21 percent in the prior quarter and 0.19 percent a year ago.
  • The allowance for loan losses represented 1.10 percent of total loans at June 30, 2019, compared to 1.12 percent at March 31, 2019 and 1.15 percent at June 30, 2018. The allowance for loan losses represented 143 percent of nonperforming loans compared to 133 percent at March 31, 2019 and 148 percent at June 30, 2018.

Quarterly non-interest income compared to the second quarter of 2018:

  • Total non-interest income was $75.9 million, compared to $68.4 million, an increase of $7.5 million. This reflects an increase of $3.5 million in miscellaneous fee income, $2.6 million in client hedging income, and $2.1 million in HSA fee income driven by account fees and interchange due to account growth.

Quarterly non-interest expense compared to the second quarter of 2018:

  • Total non-interest expense was $180.6 million, compared to $180.4 million, an increase of $0.2 million. Prior period includes a $7.2 million charge in deposit insurance and a $1.4 million charge related to banking center optimization costs. The adjusted increase of $8.8 million reflects increases of $5.5 million in compensation and benefits due to annual merit increases and higher medical costs, $1.2 million in technology/equipment, $1.3 million in professional and outside services, and $4.0 million in other expenses primarily due to legal expenses, sales costs, and pension.

Quarterly income taxes compared to the second quarter of 2018:

  • Income tax expense was $26.5 million compared to $20.7 million and the effective tax rate was 21.1 percent compared to 20.3 percent.
  • The higher effective tax rate in the quarter reflects a lower level of discrete tax benefits recognized during the period compared to a year ago coupled with a higher level of pre-tax income in the quarter compared to the year-ago period.

Investment securities:

  • Total investment securities were $7.6 billion, compared to $7.5 billion at March 31, 2019 and $7.1 billion at June 30, 2018. The carrying value of the available-for-sale portfolio included $12.0 million of net unrealized losses, compared to $58.6 million at March 31, 2019 and $86.5 million at June 30, 2018. The carrying value of the held-to-maturity portfolio does not reflect $37.8 million of net unrealized gains, compared to $46.8 million at March 31, 2019 and $130.2 million at June 30, 2018.

Loans:

  • Total loans were $19.3 billion, compared to $18.8 billion at March 31, 2019 and $18.0 billion at June 30, 2018. Compared to March 31, 2019, commercial real estate loans increased by $232.6 million, commercial loans increased by $174.6 million, and residential mortgages increased by $86.9 million while consumer loans decreased by $38.4 million.
  • Compared to a year ago, commercial real estate loans increased by $644.2 million, commercial loans increased by $521.0 million, and residential mortgages increased by $263.1 million while consumer loans decreased by $184.4 million.
  • Loan originations for portfolio were $1.382 billion, compared to $1.132 billion in the prior quarter and $1.509 billion a year ago. In addition, $41 million of residential loans were originated for sale in the quarter, compared to $33 million in the prior quarter and $44 million a year ago.

Asset quality:

  • Total nonperforming loans were $148.1 million, or 0.77 percent of total loans, compared to $158.9 million, or 0.84 percent, at March 31, 2019 and $140.1 million, or 0.78 percent, at June 30, 2018. Total paying nonperforming loans were $52.9 million, compared to $38.6 million at March 31, 2019 and $34.1 million at June 30, 2018.
  • Past due loans were $32.3 million, compared to $50.5 million at March 31, 2019 and $33.5 million at June 30, 2018.

Deposits and borrowings:

  • Total deposits were $22.6 billion, compared to $22.8 billion at March 31, 2019 and $21.3 billion at June 30, 2018. Core deposits to total deposits were 85.3 percent, compared to 85.3 percent at March 31, 2019 and 86.7 percent at June 30, 2018. The loan to deposit ratio was 85.3 percent, compared to 82.7 percent at March 31, 2019 and 84.5 percent at June 30, 2018.
  • Total borrowings were $2.9 billion, compared to $2.2 billion at March 31, 2019 and $2.7 billion at June 30, 2018.

Capital:

  • The return on average common shareholders' equity and the return on average tangible common shareholders' equity were 13.47 percent and 16.88 percent, respectively, compared to 12.22 percent and 15.76 percent, respectively, in the second quarter of 2018.
  • The tangible equity and tangible common equity ratios were 8.82 percent and 8.31 percent, respectively, compared to 8.29 percent and 7.75 percent, respectively, at June 30, 2018. The common equity tier 1 risk-based capital ratio was 11.46 percent, compared to 10.99 percent at June 30, 2018.
  • Book value and tangible book value per common share were $31.74 and $25.63, respectively, compared to $28.40 and $22.25, respectively, at June 30, 2018.

Webster Financial Corporation is the holding company for Webster Bank, National Association and its HSA Bank division. With $28.9 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 157 banking centers and 308 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 2019 second quarter earnings announcement will be held today, Thursday, July 18, 2019 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 impact of recent changes with respect to the recognition of credit losses; (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. 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)

June 30, 2019


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018





















Income and performance ratios:




















Net income

$

98,649



$

99,736



$

98,838



$

99,673



$

81,682


Earnings applicable to common shareholders


96,193




97,549




96,666




97,460




79,489


Earnings per diluted common share


1.05




1.06




1.05




1.06




0.86


Return on average assets


1.38

%



1.44

%



1.44

%



1.47

%



1.22

%

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


16.88




17.70




18.22




18.88




15.76


Return on average common shareholders' equity


13.47




14.01




14.31




14.74




12.22


Non-interest income as a percentage of total revenue


23.88




22.12




23.58




23.88




23.31






















Asset quality:




















Allowance for loan and lease losses

$

211,671



$

211,389



$

212,353



$

211,832



$

207,322


Nonperforming assets


153,247




164,431




161,617




157,967




146,047


Allowance for loan and lease losses / total loans and leases


1.10

%



1.12

%



1.15

%



1.16

%



1.15

%

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


0.24




0.21




0.21




0.13




0.19


Nonperforming loans and leases / total loans and leases


0.77




0.84




0.84




0.83




0.78


Nonperforming assets / total loans and leases plus OREO


0.80




0.87




0.87




0.86




0.81


Allowance for loan and lease losses / nonperforming loans and leases


142.97




133.01




137.22




138.76




148.00






















Other ratios:




















Tangible equity (non-GAAP)


8.82

%



8.68

%



8.59

%



8.41

%



8.29

%

Tangible common equity (non-GAAP)


8.31




8.16




8.05




7.86




7.75


Tier 1 risk-based capital (a)


12.15




12.17




12.16




11.96




11.74


Total risk-based capital (a)


13.54




13.60




13.63




13.44




13.21


Common equity tier 1 risk-based capital (a)


11.46




11.46




11.44




11.23




10.99


Shareholders' equity / total assets


10.59




10.50




10.45




10.30




10.21


Net interest margin


3.63




3.74




3.66




3.61




3.57


Efficiency ratio (non-GAAP)


56.09




55.93




56.19




57.41




57.78






















Equity and share related:




















Common equity

$

2,920,180



$

2,821,218



$

2,741,478



$

2,671,161



$

2,616,686


Book value per common share


31.74




30.62




29.72




28.96




28.40


Tangible book value per common share (non-GAAP)


25.63




24.51




23.60




22.83




22.25


Common stock closing price


47.77




50.67




49.29




58.96




63.70


Dividends declared per common share


0.40




0.33




0.33




0.33




0.33






















Common shares issued and outstanding


92,007




92,125




92,247




92,230




92,151


Weighted-average common shares outstanding - Basic


91,534




91,962




91,971




91,959




91,893


Weighted-average common shares outstanding - Diluted


91,855




92,225




92,202




92,208




92,173




(a) Presented as projected for June 30, 2019 and actual for the remaining periods.


 

 

WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)











(In thousands)

June 30, 2019



March 31, 2019



June 30, 2018

Assets:











Cash and due from banks

$

190,828



$

167,587



$

228,628

Interest-bearing deposits


26,652




53,072




70,654

Securities:











Available for sale


2,978,657




2,977,316




2,780,581

Held to maturity


4,636,707




4,480,160




4,356,219

Total securities


7,615,364




7,457,476




7,136,800

Loans held for sale


19,249




20,615




18,645

Loans and Leases:











Commercial


7,025,506




6,850,942




6,504,521

Commercial real estate


5,224,382




4,991,825




4,580,200

Residential mortgages


4,718,704




4,631,787




4,455,580

Consumer


2,301,291




2,339,736




2,485,695

Total loans and leases


19,269,883




18,814,290




18,025,996

Allowance for loan and lease losses


(211,671)




(211,389)




(207,322)

Loans and leases, net


19,058,212




18,602,901




17,818,674

Federal Home Loan Bank and Federal Reserve Bank stock


118,371




106,674




141,293

Premises and equipment, net


278,227




279,580




127,973

Goodwill and other intangible assets, net


562,214




563,176




566,061

Cash surrender value of life insurance policies


546,963




546,094




537,431

Deferred tax asset, net


73,462




76,576




106,910

Accrued interest receivable and other assets


452,501




364,378




283,668

Total Assets

$

28,942,043



$

28,238,129



$

27,036,737












Liabilities and Shareholders' Equity:











Deposits:











Demand

$

4,174,806



$

4,224,144



$

4,151,259

Health savings accounts


6,212,372




6,209,213




5,517,929

Interest-bearing checking


2,636,109




2,560,975




2,637,346

Money market


2,073,006




2,299,229




2,016,453

Savings


4,169,492




4,102,740




4,180,666

Certificates of deposit


3,291,617




3,273,120




2,478,589

Brokered certificates of deposit


41,376




81,507




361,114

Total deposits


22,598,778




22,750,928




21,343,356

Securities sold under agreements to repurchase and other borrowings


956,920




688,065




862,568

Federal Home Loan Bank advances


1,426,656




951,730




1,576,956

Long-term debt


538,379




524,303




225,894

Accrued expenses and other liabilities


356,093




356,848




266,240

Total liabilities


25,876,826




25,271,874




24,275,014

Preferred stock


145,037




145,037




145,037

Common shareholders' equity


2,920,180




2,821,218




2,616,686

Total shareholders' equity


3,065,217




2,966,255




2,761,723

Total Liabilities and Shareholders' Equity

$

28,942,043



$

28,238,129



$

27,036,737

 

 

WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)


Three Months Ended June 30,


Six Months Ended June 30,

(In thousands, except per share data)

2019



2018


2019



2018

Interest income:














Interest and fees on loans and leases

$

235,949



$

207,820


$

464,713



$

401,040

Interest and dividends on securities


56,163




52,523



113,441




105,082

Loans held for sale


145




148



293




290

Total interest income


292,257




260,491



578,447




506,412

Interest expense:














Deposits


32,757




20,225



63,777




38,381

Borrowings


17,713




15,256



31,332




28,853

Total interest expense


50,470




35,481



95,109




67,234

Net interest income


241,787




225,010



483,338




439,178

Provision for loan and lease losses


11,900




10,500



20,500




21,500

Net interest income after provision for loan and lease losses


229,887




214,510



462,838




417,678

Non-interest income:














Deposit service fees


43,118




40,859



86,142




81,310

Loan and lease related fees


6,558




6,333



14,377




13,329

Wealth and investment services


8,309




8,456



15,960




16,326

Mortgage banking activities


932




1,235



1,696




2,379

Increase in cash surrender value of life insurance policies


3,650




3,643



7,234




7,215

Other income


13,286




7,848



19,056




16,562

Total non-interest income


75,853




68,374



144,465




137,121

Non-interest expense:














Compensation and benefits


98,527




93,052



196,312




187,817

Occupancy


14,019




15,842



28,715




30,987

Technology and equipment


25,767




24,604



51,464




48,466

Marketing


4,243




4,889



7,571




8,441

Professional and outside services


5,634




4,381



11,682




9,169

Intangible assets amortization


962




962



1,924




1,924

Loan workout expenses


832




844



1,492




1,420

Deposit insurance


4,453




13,687



8,883




20,404

Other expenses


26,203




22,198



48,283




43,446

Total non-interest expense


180,640




180,459



356,326




352,074

Income before income taxes


125,100




102,425



250,977




202,725

Income tax expense


26,451




20,743



52,592




40,818

Net income


98,649




81,682



198,385




161,907

Preferred stock dividends and other


(2,456)




(2,193)



(4,902)




(4,334)

Earnings applicable to common shareholders

$

96,193



$

79,489


$

193,483



$

157,573















Weighted-average common shares outstanding - Diluted


91,855




92,173



91,898




92,236















Earnings per common share:














Basic

$

1.05



$

0.87


$

2.11



$

1.71

Diluted


1.05




0.86



2.11




1.71


 

 

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




















Three Months Ended

(In thousands, except per share data)

June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



June 30, 2018

Interest income:



















Interest and fees on loans and leases

$

235,949



$

228,764



$

225,961



$

215,448



$

207,820

Interest and dividends on securities


56,163




57,278




54,301




52,707




52,523

Loans held for sale


145




148




130




208




148

Total interest income


292,257




286,190




280,392




268,363




260,491

Interest expense:



















Deposits


32,757




31,020




27,629




24,397




20,225

Borrowings


17,713




13,619




15,632




13,594




15,256

Total interest expense


50,470




44,639




43,261




37,991




35,481

Net interest income


241,787




241,551




237,131




230,372




225,010

Provision for loan and lease losses


11,900




8,600




10,000




10,500




10,500

Net interest income after provision for loan and lease losses


229,887




232,951




227,131




219,872




214,510

Non-interest income:



















Deposit service fees


43,118




43,024




40,272




40,601




40,859

Loan and lease related fees


6,558




7,819




7,914




10,782




6,333

Wealth and investment services


8,309




7,651




8,105




8,412




8,456

Mortgage banking activities


932




764




740




1,305




1,235

Increase in cash surrender value of life insurance policies


3,650




3,584




3,693




3,706




3,643

Other income


13,286




5,770




12,439




7,478




7,848

Total non-interest income


75,853




68,612




73,163




72,284




68,374

Non-interest expense:



















Compensation and benefits


98,527




97,785




97,039




96,640




93,052

Occupancy


14,019




14,696




13,974




14,502




15,842

Technology and equipment


25,767




25,697




24,858




24,553




24,604

Marketing


4,243




3,328




4,345




4,052




4,889

Professional and outside services


5,634




6,048




6,201




4,930




4,381

Intangible assets amortization


962




962




962




961




962

Loan workout expenses


832




660




1150




681




844

Deposit insurance


4,453




4,430




4,651




9,694




13,687

Other expenses


26,203




22,080




21,579




22,770




22,198

Total non-interest expense


180,640




175,686




174,759




178,783




180,459

Income before income taxes


125,100




125,877




125,535




113,373




102,425

Income tax expense


26,451




26,141




26,697




13,700




20,743

Net income


98,649




99,736




98,838




99,673




81,682

Preferred stock dividends and other


(2,456)




(2,187)




(2,172)




(2,213)




(2,193)

Earnings applicable to common shareholders

$

96,193



$

97,549



$

96,666



$

97,460



$

79,489




















Weighted-average common shares outstanding - Diluted


91,855




92,225




92,202




92,208




92,173




















Earnings per common share:



















Basic

$

1.05



$

1.06



$

1.05



$

1.06



$

0.87

Diluted


1.05




1.06




1.05




1.06




0.86

 

 

...

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


Three Months Ended June 30,


2019


2018

(Dollars in thousands)

Average balance



Interest



Yield/rate


Average balance


Interest


Yield/rate

Assets:





















Interest-earning assets:





















Loans and leases

$

19,030,278



$

236,620




4.94

%


$

17,886,685


$

208,490


4.63

%

Securities (a)


7,472,731




56,501




3.01




7,142,572



52,277


2.90


Federal Home Loan and Federal Reserve Bank stock


108,244




1,117




4.14




133,114



1,546


4.66


Interest-bearing deposits


50,131




309




2.44




66,339



247


1.47


Loans held for sale


23,210




145




2.49




15,211



148


3.90


Total interest-earning assets


26,684,594



$

294,692




4.39

%



25,243,921


$

262,708


4.13

%

Non-interest-earning assets


1,855,077












1,631,032







Total Assets

$

28,539,671











$

26,874,953




























Liabilities and Shareholders' Equity:





















Interest-bearing liabilities:





















Demand deposits

$

4,266,938



$

-




-

%


$

4,109,165


$

-


-

%

Health savings accounts


6,223,570




3,066




0.20




5,519,917



2,735


0.20


Interest-bearing checking, money market and savings


8,934,579




13,132




0.59




9,041,286