WEBSTER REPORTS SECOND QUARTER 2022 EPS OF $1.00; ADJUSTED EPS OF $1.29
Webster Financial Corporation (NYSE: WBS) reported a net income of $178.1 million ($1.00 per diluted share) for Q2 2022, a significant increase from $92.1 million ($1.01) in Q2 2021. The results include $66.5 million in merger-related costs. Excluding these, earnings would be $1.29 per diluted share. Revenue reached $607.6 million, driven by strong loan growth, with commercial loans comprising 80% of total loans. The common equity tier 1 ratio stood at 11.04%, and share repurchases totaled $100 million.
- Net income rose to $178.1 million from $92.1 million year-over-year.
- Revenue increased to $607.6 million, highlighting strong loan growth.
- Commercial loans constituted 80% of the loan portfolio.
- Common equity tier 1 ratio of 11.04% indicates strong capital position.
- Share repurchase program resulted in $100 million in buybacks.
- Merger-related expenses totaled $66.5 million, impacting net earnings.
- Total non-interest expense increased significantly by $171.2 million due to merger costs.
- Net interest margin increased only marginally to 3.28%, indicating potential challenges in maintaining profitability.
STAMFORD, Conn., July 21, 2022 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced net income available to common shareholders of
Second quarter 2022 results include
"Our second quarter performance is a great reflection of the strength of Webster," said John R. Ciulla, President and Chief Executive Officer. "We achieved strong and diverse loan growth, the quality of our core deposit franchise was evident in this rising rate environment, and we maintained our strong capital position, providing flexibility as we operate through a changing macro environment."
Highlights for the second quarter of 2022:
- Revenue of
$607 .6 million.
- Period end loan and lease balance of
$45 .6 billion; 80 percent commercial loans and leases, 20 percent consumer loans, and a loan to deposit ratio of 86 percent.
- Period end deposit balance of
$53 .1 billion.
- Provision for credit losses totaled
$12.2 million .
- Charges related to the merger and strategic initiatives totaled
$66 .5 million.
- Return on average assets of 1.10 percent; adjusted 1.41 percent (non-GAAP).
- Return on average tangible common equity of 14.50 percent; adjusted 18.45 percent (non-GAAP).
- Net interest margin of 3.28 percent includes net accretion of 0.19 percent.
- Common equity tier 1 ratio of 11.04 percent.
- Efficiency ratio (non-GAAP) of 45.25 percent.
- Tangible common equity ratio of 7.68 percent.
- Repurchased
$100 million in shares under Webster's share repurchase program.
"Our financial performance illustrates both merger synergies and the organic growth we anticipate our company will produce," said Glenn MacInnes, Executive Vice President and Chief Financial Officer. "On an adjusted basis, we generated a return on assets of 1.41 percent and return on tangible common equity of 18.5 percent. Earnings improvement was broad, with interest income, fees and expenses all trending positively."
Increases in the balance sheet and income statement, when compared to a year ago, are largely attributable to the merger with Sterling Bancorp on January 31, 2022.
Line of Business performance compared to the second quarter of 2021
Commercial Banking
Webster's Commercial Banking segment serves businesses that have more than
Commercial Banking Operating Results: | |||||||
Percent | |||||||
Three months ended June 30, | Favorable/ | ||||||
(In thousands) | 2022 | 2021 | (Unfavorable) | ||||
Net interest income | 137.2 % | ||||||
Non-interest income | 49,430 | 18,378 | 169.0 | ||||
Operating revenue | 382,851 | 158,967 | 140.8 | ||||
Non-interest expense | 102,720 | 46,275 | (122.0) | ||||
Pre-tax, pre-provision net revenue | 148.6 | ||||||
Percent | |||||||
At June 30, | Increase/ | ||||||
(In millions) | 2022 | 2021 | (Decrease) | ||||
Loans and leases | 150.0 % | ||||||
Deposits | 20,501 | 8,729 | 134.9 | ||||
AUA / AUM (off balance sheet) | 2,266 | 2,863 | (20.8) |
Pre-tax, pre-provision net revenue increased
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, 2022, HSA Bank had
HSA Bank Operating Results: | |||||||
Percent | |||||||
Three months ended June 30, | Favorable/ | ||||||
(In thousands) | 2022 | 2021 | (Unfavorable) | ||||
Net interest income | 17.5 % | ||||||
Non-interest income | 26,552 | 26,554 | — | ||||
Operating revenue | 76,110 | 68,747 | 10.7 | ||||
Non-interest expense | 37,540 | 32,423 | (15.8) | ||||
Pre-tax, net revenue | 6.2 | ||||||
Percent | |||||||
At June 30, | Increase/ | ||||||
(Dollars in millions) | 2022 | 2021 | (Decrease) | ||||
Number of accounts (thousands) | 3,077 | 2,995 | 2.7 % | ||||
Deposits | 6.2 | ||||||
Linked investment accounts (off balance sheet) | 3,277 | 3,384 | (3.1) | ||||
Total footings | 3.3 |
Pre-tax net revenue increased
Consumer Banking
Consumer Banking serves consumer and business banking customers primarily throughout southern New England and the New York Metro and Suburban markets. Consumer Banking is comprised of the Consumer Lending and Small Business Banking (businesses that have less than
Consumer Banking Operating Results: | |||||||
Percent | |||||||
Three months ended June 30, | Favorable/ | ||||||
(In thousands) | 2022 | 2021 | (Unfavorable) | ||||
Net interest income | 92.4 % | ||||||
Non-interest income | 30,784 | 24,098 | 27.7 | ||||
Operating revenue | 209,851 | 117,173 | 79.1 | ||||
Non-interest expense | 107,312 | 74,149 | (44.7) | ||||
Pre-tax, pre-provision net revenue | 138.3 | ||||||
Percent | |||||||
At June 30, | Increase/ | ||||||
(In millions) | 2022 | 2021 | (Decrease) | ||||
Loans | 31.4 % | ||||||
Deposits | 23,841 | 12,795 | 86.3 | ||||
AUA (off balance sheet) | 7,536 | 4,198 | 79.5 |
Pre-tax, pre-provision net revenue increased
Consolidated financial performance:
Quarterly net interest income compared to the second quarter of 2021:
- Net interest income was
$486.7 million compared to$220.9 million .
- Net interest margin was 3.28 percent compared to 2.82 percent. The yield on interest-earning assets increased by 51 basis points, and the cost of interest-bearing liabilities increased by 5 basis points.
- Average interest-earning assets totaled
$60.1 billion and increased by$28.5 billion , or 90.0 percent.
- Average loans and leases totaled
$44.1 billion and grew by$22.7 billion , or 106.0 percent.
- Average deposits totaled
$53.4 billion and grew by$24.7 billion , or 86.0 percent.
Quarterly provision for credit losses:
- The provision for credit losses reflects a
$12.2 million expense in the quarter, contributing to a$2 .1 million increase in the allowance for credit losses on loans and leases. The provision for credit losses reflected an expense of$188.8 million in the prior quarter, which included$175.1 million associated with day one accounting provision required for loans and leases acquired during the quarter from the Sterling merger, compared to a benefit of$21.5 million a year ago.
- Net charge-offs (recoveries) were
$9.6 million , compared to$8.9 million in the prior quarter and$(1.2) million a year ago. The ratio of net charge-offs (recoveries) to average loans and leases on an annualized basis was 0.09 percent, compared to 0.10 percent in the prior quarter and (0.02) percent a year ago.
- The allowance for credit losses on loans and leases represented 1.25 percent of total loans and leases at June 30, 2022, compared to 1.31 percent at March 31, 2022 and 1.43 percent at June 30, 2021. The allowance represented 231 percent of nonperforming loans and leases at June 30, 2022 compared to 229 percent at March 31, 2022 and 255 percent at June 30, 2021.
Quarterly non-interest income compared to the second quarter of 2021:
- Total non-interest income was
$120.9 million compared to$72.7 million , an increase of$48.2 million . The increase primarily reflects the impact of the merger with Sterling, along with higher deposit and loan related fees as a result of higher transactional activity.
Quarterly non-interest expense compared to the second quarter of 2021:
- Total non-interest expense was
$358.2 million compared to$187.0 million , an increase of$171.2 million . Total non-interest expense includes a net$66.5 million of merger and strategic initiative charges compared to$18.2 million a year ago. Excluding those charges, total non-interest expense increased$122.9 million which primarily reflects the impact of the merger with Sterling.
Quarterly income taxes compared to the second quarter of 2021:
- Income tax expense was
$54.8 million compared to$34.0 million , and the effective tax rate was 23.1 percent compared to 26.6 percent. The higher effective tax rate in the period a year ago reflects the effects of merger related expenses recognized during the period that were estimated to be largely nondeductible for tax purposes.
Investment securities:
- Total investment securities, net were
$15.2 billion , compared to$15.1 billion at March 31, 2022 and$8.9 billion at June 30, 2021. The carrying value of the available-for-sale portfolio included$609.8 million of net unrealized losses, compared to net unrealized losses of$328.4 million at March 31, 2022 and net unrealized gains of$49.3 million at June 30, 2021. The carrying value of the held-to-maturity portfolio does not reflect$539.4 million of net unrealized losses, compared to net unrealized losses of$270.8 million at March 31, 2022 and net unrealized gains of$170.5 million at June 30, 2021.
Loans and Leases:
- Total loans and leases were
$45.6 billion , compared to$43.5 billion at March 31, 2022 and$21.5 billion at June 30, 2021. Compared to March 31, 2022, commercial loans and leases increased by$1.1 billion , commercial real estate loans and leases increased by$0.6 billion , residential mortgages increased by$0.4 billion , and consumer loans decreased by$6.5 million .
- Compared to a year ago, commercial loans and leases increased by
$10.1 billion , commercial real estate loans and leases increased by$11.7 billion , and residential mortgages increased by$2.4 billion , while consumer loans decreased by$29.6 million .
- Loan originations for the portfolio were
$5.0 billion , compared to$2.6 billion in the prior quarter and$2.3 billion a year ago. In addition,$5.0 million of residential loans were originated for sale in the quarter, compared to$23.1 million in the prior quarter and$54.6 million a year ago.
Asset quality:
- Total nonperforming loans and leases were
$247.5 million , or 0.54 percent of total loans and leases, compared to$248.1 million , or 0.57 percent of total loans and leases, at March 31, 2022 and$120.7 million , or 0.56 percent of total loans and leases, at June 30, 2021. As of June 30, 2022,$90.3 million of nonperforming loans and leases were contractually current.
- Past due loans and leases were
$51.7 million , compared to$71.5 million at March 31, 2022 and$18.4 million at June 30, 2021.
Deposits and borrowings:
- Total deposits were
$53.1 billion , compared to$54.4 billion at March 31, 2022 and$28.8 billion at June 30, 2021. Core deposits to total deposits were 95.2 percent, compared to 94.8 percent at March 31, 2022 and 93.0 percent at June 30, 2021. The loan to deposit ratio was 86.0 percent, compared to 80.1 percent at March 31, 2022 and 74.4 percent at June 30, 2021.
- Total borrowings were
$5.3 billion , compared to$1.6 billion at March 31, 2022 and$1.2 billion at June 30, 2021.
Capital:
- The return on average common shareholders' equity and the return on average tangible common shareholders' equity were 9.09 percent and 14.50 percent, respectively, compared to 11.63 percent and 14.26 percent, respectively, in the second quarter of 2021.
- The tangible equity and tangible common equity ratios were 8.12 percent and 7.68 percent, respectively, compared to 8.35 percent and 7.91 percent, respectively, at June 30, 2021. The common equity tier 1 risk-based capital ratio was 11.04 percent, compared to 11.66 percent at June 30, 2021.
- Book value and tangible book value per common share were
$43.82 and$28.31 , respectively, compared to$35.15 and$28.99 , respectively, at June 30, 2021.
- Repurchased
$100 million in shares under Webster's share repurchase program.
Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank Division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country's largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with
Conference Call
A conference call covering Webster's second quarter 2022 earnings announcement will be held today, Thursday, July 21, 2022 at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster's Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern) on July 21, 2022. To access the replay, dial 800-770-2030, or 647-362-9199 for international callers. The replay conference ID number is 8607257.
Media Contact
Alice Ferreira, 203-578-2610
acferreira@websterbank.com
Investor Contact
Emlen Harmon, 212-309-7646
eharmon@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 successfully integrate the operations of Webster and 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 planned 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, including as a result of geopolitical conflict such as the war between Russia and Ukraine; (6) the potential adverse effects of the ongoing novel coronavirus (COVID-19) pandemic, or other unusual and infrequently occurring events, and any governmental or societal responses thereto; (7) changes in laws and regulations, including those concerning banking, taxes, dividends, securities, insurance, and healthcare, with which we and our subsidiaries must comply; (8) adverse conditions in the securities markets that lead to impairment in the value of our investment securities and goodwill; (9) inflation, changes in interest rates, and monetary fluctuations; (10) the replacement of and transition from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) as the primary interest rate benchmark; (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 the level of non-performing assets and charge-offs; (19) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (20) the effect of changes in accounting policies and practices applicable to us, including the impact of recently adopted accounting guidance; (21) legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (22) our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; and (23) 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 Operations." 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, ROATCE, and other performance ratios, in each case 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 | ||||||||||||||||||
At or for the Three Months Ended | ||||||||||||||||||
(In thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||
Income and performance ratios: | ||||||||||||||||||
Net income (loss) | $ | 182,311 | $ | (16,747) | $ | 111,038 | $ | 95,713 | $ | 94,035 | ||||||||
Net income (loss) available to common shareholders | 178,148 | (20,178) | 109,069 | 93,745 | 92,066 | |||||||||||||
Earnings (loss) per diluted common share | 1.00 | (0.14) | 1.20 | 1.03 | 1.01 | |||||||||||||
Return on average assets | 1.10 | % | (0.12) | % | 1.26 | % | 1.10 | % | 1.12 | |||||||||
Return on average tangible common shareholders' equity (non-GAAP) | 14.50 | (1.36) | 16.23 | 14.16 | 14.26 | |||||||||||||
Return on average common shareholders' equity | 9.09 | (1.25) | 13.35 | 11.61 | 11.63 | |||||||||||||
Non-interest income as a percentage of total revenue | 19.90 | 20.88 | 28.44 | 26.73 | 24.77 | |||||||||||||
Asset quality: | ||||||||||||||||||
Allowance for credit losses on loans and leases | $ | 571,499 | $ | 569,371 | $ | 301,187 | $ | 314,922 | $ | 307,945 | ||||||||
Nonperforming assets | 250,242 | 251,206 | 112,590 | 104,209 | 123,497 | |||||||||||||
Allowance for credit losses on loans and leases / total loans and leases | 1.25 | % | 1.31 | % | 1.35 | % | 1.46 | % | 1.43 | |||||||||
Net charge-offs (recoveries) / average loans and leases (annualized) | 0.09 | 0.10 | (0.02) | 0.02 | (0.02) | |||||||||||||
Nonperforming loans and leases / total loans and leases | 0.54 | 0.57 | 0.49 | 0.47 | 0.56 | |||||||||||||
Nonperforming assets / total loans and leases plus OREO | 0.55 | 0.58 | 0.51 | 0.48 | 0.57 | |||||||||||||
Allowance for credit losses on loans and leases / nonperforming loans and leases | 230.88 | 229.48 | 274.36 | 309.44 | 255.05 | |||||||||||||
Other ratios: | ||||||||||||||||||
Tangible equity (non-GAAP) | 8.12 | % | 8.72 | % | 8.39 | % | 8.12 | % | 8.35 | |||||||||
Tangible common equity (non-GAAP) | 7.68 | 8.26 | 7.97 | 7.71 | 7.91 | |||||||||||||
Tier 1 risk-based capital (a) | 11.61 | 12.05 | 12.32 | 12.39 | 12.30 | |||||||||||||
Total risk-based capital (a) | 13.86 | 14.41 | 13.64 | 13.79 | 13.70 | |||||||||||||
Common equity tier 1 risk-based capital (a) | 11.04 | 11.46 | 11.72 | 11.77 | 11.66 | |||||||||||||
Shareholders' equity / total assets | 11.83 | 12.55 | 9.85 | 9.57 | 9.86 | |||||||||||||
Net interest margin | 3.28 | 3.21 | 2.73 | 2.80 | 2.82 | |||||||||||||
Efficiency ratio (non-GAAP) | 45.25 | 48.73 | 54.85 | 54.84 | 56.64 | |||||||||||||
Equity and share related: | ||||||||||||||||||
Common equity | $ | 7,713,809 | $ | 7,893,156 | $ | 3,293,288 | $ | 3,241,152 | $ | 3,184,668 | ||||||||
Book value per common share | 43.82 | 44.32 | 36.36 | 35.78 | 35.15 | |||||||||||||
Tangible book value per common share (non-GAAP) | 28.31 | 28.94 | 30.22 | 29.63 | 28.99 | |||||||||||||
Common stock closing price | 42.15 | 56.12 | 55.84 | 54.46 | 53.34 | |||||||||||||
Dividends declared per common share | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | |||||||||||||
Common shares issued and outstanding | 176,041 | 178,102 | 90,584 | 90,588 | 90,594 | |||||||||||||
Weighted-average common shares outstanding - Basic | 175,845 | 147,394 | 90,052 | 90,038 | 90,027 | |||||||||||||
Weighted-average common shares outstanding - Diluted | 175,895 | 147,533 | 90,284 | 90,232 | 90,221 | |||||||||||||
(a) Presented as preliminary for June 30, 2022 and actual for the remaining periods. |
WEBSTER FINANCIAL CORPORATION | ||||||||||
(In thousands) | June 30, | March 31, | June 30, | |||||||
Assets: | ||||||||||
Cash and due from banks | $ | 294,482 | $ | 240,435 | $ | 193,430 | ||||
Interest-bearing deposits | 607,323 | 552,778 | 1,386,463 | |||||||
Securities: | ||||||||||
Available for sale | 8,638,358 | 8,744,897 | 3,262,893 | |||||||
Held to maturity, net | 6,547,998 | 6,362,254 | 5,623,243 | |||||||
Total securities, net | 15,186,356 | 15,107,151 | 8,886,136 | |||||||
Loans held for sale | 388 | 17,970 | 4,335 | |||||||
Loans and Leases: | ||||||||||
Commercial | 18,520,595 | 17,386,139 | 8,417,719 | |||||||
Commercial real estate | 18,141,670 | 17,584,947 | 6,410,672 | |||||||
Residential mortgages | 7,223,728 | 6,798,199 | 4,856,302 | |||||||
Consumer | 1,760,750 | 1,767,200 | 1,790,308 | |||||||
Total loans and leases | 45,646,743 | 43,536,485 | 21,475,001 | |||||||
Allowance for credit losses on loans and leases | (571,499) | (569,371) | (307,945) | |||||||
Loans and leases, net | 45,075,244 | 42,967,114 | 21,167,056 | |||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 329,424 | 206,123 | 76,874 | |||||||
Premises and equipment, net | 449,578 | 490,004 | 215,716 | |||||||
Goodwill and other intangible assets, net | 2,729,551 | 2,738,353 | 558,485 | |||||||
Cash surrender value of life insurance policies | 1,228,484 | 1,222,898 | 570,380 | |||||||
Deferred tax asset, net | 269,790 | 178,042 | 78,268 | |||||||
Accrued interest receivable and other assets | 1,424,401 | 1,410,616 | 616,609 | |||||||
Total Assets | $ | 67,595,021 | $ | 65,131,484 | $ | 33,753,752 | ||||
Liabilities and Shareholders' Equity: | ||||||||||
Deposits: | ||||||||||
Demand | $ | 13,576,152 | $ | 13,570,702 | $ | 6,751,373 | ||||
Health savings accounts | 7,777,786 | 7,804,858 | 7,323,421 | |||||||
Interest-bearing checking | 9,547,749 | 9,579,839 | 3,843,725 | |||||||
Money market | 10,884,656 | 11,964,649 | 3,442,319 | |||||||
Savings | 8,736,712 | 8,615,138 | 5,471,584 | |||||||
Certificates of deposit | 2,554,102 | 2,821,097 | 2,014,544 | |||||||
Total deposits | 53,077,157 | 54,356,283 | 28,846,966 | |||||||
Securities sold under agreements to repurchase and other borrowings | 1,743,782 | 518,733 | 507,124 | |||||||
Federal Home Loan Bank advances | 2,510,810 | 10,903 | 138,444 | |||||||
Long-term debt | 1,076,559 | 1,078,274 | 565,297 | |||||||
Accrued expenses and other liabilities | 1,188,925 | 990,156 | 366,216 | |||||||
Total liabilities | 59,597,233 | 56,954,349 | 30,424,047 | |||||||
Preferred stock | 283,979 | 283,979 | 145,037 | |||||||
Common shareholders' equity | 7,713,809 | 7,893,156 | 3,184,668 | |||||||
Total shareholders' equity | 7,997,788 | 8,177,135 | 3,329,705 | |||||||
Total Liabilities and Shareholders' Equity | $ | 67,595,021 | $ | 65,131,484 | $ | 33,753,752 |
WEBSTER FINANCIAL CORPORATION | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans and leases | $ | 431,538 | $ | 185,919 | $ | 777,814 | $ | 376,455 | ||||||
Interest and dividends on securities | 82,202 | 45,586 | 145,728 | 90,533 | ||||||||||
Loans held for sale | 7 | 53 | 33 | 144 | ||||||||||
Total interest income | 513,747 | 231,558 | 923,575 | 467,132 | ||||||||||
Interest expense: | ||||||||||||||
Deposits | 12,459 | 5,094 | 19,858 | 11,533 | ||||||||||
Borrowings | 14,628 | 5,612 | 22,809 | 10,983 | ||||||||||
Total interest expense | 27,087 | 10,706 | 42,667 | 22,516 | ||||||||||
Net interest income | 486,660 | 220,852 | 880,908 | 444,616 | ||||||||||
Provision for credit losses | 12,243 | (21,500) | 201,088 | (47,250) | ||||||||||
Net interest income after provision for loan and lease losses | 474,417 | 242,352 | 679,820 | 491,866 | ||||||||||
Non-interest income: | ||||||||||||||
Deposit service fees | 51,385 | 41,439 | 99,212 | 81,908 | ||||||||||
Loan and lease related fees | 27,907 | 7,862 | 50,586 | 16,175 | ||||||||||
Wealth and investment services | 11,244 | 10,087 | 21,841 | 19,490 | ||||||||||
Mortgage banking activities | 102 | 1,319 | 530 | 3,961 | ||||||||||
Increase in cash surrender value of life insurance policies | 8,244 | 3,603 | 14,976 | 7,136 | ||||||||||
Other income | 22,051 | 8,392 | 37,823 | 20,789 | ||||||||||
Total non-interest income | 120,933 | 72,702 | 224,968 | 149,459 | ||||||||||
Non-interest expense: | ||||||||||||||
Compensation and benefits | 187,656 | 97,754 | 371,658 | 205,354 | ||||||||||
Occupancy | 51,593 | 14,010 | 70,208 | 29,660 | ||||||||||
Technology and equipment | 41,498 | 27,124 | 96,899 | 55,640 | ||||||||||
Marketing | 3,441 | 3,227 | 6,950 | 5,731 | ||||||||||
Professional and outside services | 15,332 | 21,025 | 69,423 | 30,801 | ||||||||||
Intangible assets amortization | 8,802 | 1,132 | 15,189 | 2,271 | ||||||||||
Loan workout expenses | 732 | 327 | 1,412 | 721 | ||||||||||
Deposit insurance | 6,748 | 3,749 | 11,970 | 7,705 | ||||||||||
Other expenses | 42,425 | 18,680 | 74,303 | 37,127 | ||||||||||
Total non-interest expense | 358,227 | 187,028 | 718,012 | 375,010 | ||||||||||
Income before income taxes | 237,123 | 128,026 | 186,776 | 266,315 | ||||||||||
Income tax expense | 54,812 | 33,991 | 21,212 | 64,202 | ||||||||||
Net income | 182,311 | 94,035 | 165,564 | 202,113 | ||||||||||
Preferred stock dividends | (4,163) | (1,969) | (7,594) | (3,938) | ||||||||||
Net income available to common shareholders | $ | 178,148 | $ | 92,066 | $ | 157,970 | $ | 198,175 | ||||||
Weighted-average common shares outstanding - Diluted | 175,895 | 90,221 | 161,785 | 90,164 | ||||||||||
Earnings per common share: | ||||||||||||||
Basic | $ | 1.00 | $ | 1.02 | $ | 0.97 | $ | 2.19 | ||||||
Diluted | 1.00 | 1.01 | 0.97 | 2.19 |
WEBSTER FINANCIAL CORPORATION | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
(In thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||
Interest income: | ||||||||||||||||||
Interest and fees on loans and leases | $ | 431,538 | $ | 346,276 | $ | 189,985 | $ | 196,273 | $ | 185,919 | ||||||||
Interest and dividends on securities | 82,202 | 63,526 | 45,990 | 43,362 | 45,586 | |||||||||||||
Loans held for sale | 7 | 26 | 45 | 57 | 53 | |||||||||||||
Total interest income | 513,747 | 409,828 | 236,020 | 239,692 | 231,558 | |||||||||||||
Interest expense: | ||||||||||||||||||
Deposits | 12,459 | 7,399 | 4,027 | 4,571 | 5,094 | |||||||||||||
Borrowings | 14,628 | 8,181 | 5,211 | 5,430 | 5,612 | |||||||||||||
Total interest expense | 27,087 | 15,580 | 9,238 | 10,001 | 10,706 | |||||||||||||
Net interest income | 486,660 | 394,248 | 226,782 | 229,691 | 220,852 | |||||||||||||
Provision for credit losses | 12,243 | 188,845 | (15,000) | 7,750 | (21,500) | |||||||||||||
Net interest income after provision for loan and lease losses | 474,417 | 205,403 | 241,782 | 221,941 | 242,352 | |||||||||||||
Non-interest income: | ||||||||||||||||||
Deposit service fees | 51,385 | 47,827 | 40,544 | 40,258 | 41,439 | |||||||||||||
Loan and lease related fees | 27,907 | 22,679 | 9,602 | 10,881 | 7,862 | |||||||||||||
Wealth and investment services | 11,244 | 10,597 | 10,111 | 9,985 | 10,087 | |||||||||||||
Mortgage banking activities | 102 | 428 | 733 | 1,525 | 1,319 | |||||||||||||
Increase in cash surrender value of life insurance policies | 8,244 | 6,732 | 3,627 | 3,666 | 3,603 | |||||||||||||
Other income | 22,051 | 15,772 | 25,521 | 17,460 | 8,392 | |||||||||||||
Total non-interest income | 120,933 | 104,035 | 90,138 | 83,775 | 72,702 | |||||||||||||
Non-interest expense: | ||||||||||||||||||
Compensation and benefits | 187,656 | 184,002 | 109,283 | 105,352 | 97,754 | |||||||||||||
Occupancy | 51,593 | 18,615 | 13,256 | 12,430 | 14,010 | |||||||||||||
Technology and equipment | 41,498 | 55,401 | 28,750 | 28,441 | 27,124 | |||||||||||||
Marketing | 3,441 | 3,509 | 2,599 | 3,721 | 3,227 | |||||||||||||
Professional and outside services | 15,332 | 54,091 | 9,360 | 7,074 | 21,025 | |||||||||||||
Intangible assets amortization | 8,802 | 6,387 | 1,118 | 1,124 | 1,132 | |||||||||||||
Loan workout expenses | 732 | 680 | 244 | 203 | 327 | |||||||||||||
Deposit insurance | 6,748 | 5,222 | 4,234 | 3,855 | 3,749 | |||||||||||||
Other expenses | 42,425 | 31,878 | 21,009 | 18,037 | 18,680 | |||||||||||||
Total non-interest expense | 358,227 | 359,785 | 189,853 | 180,237 | 187,028 | |||||||||||||
Income (loss) before income taxes | 237,123 | (50,347) | 142,067 | 125,479 | 128,026 | |||||||||||||
Income tax expense (benefit) | 54,812 | (33,600) | 31,029 | 29,766 | 33,991 | |||||||||||||
Net income (loss) | 182,311 | (16,747) | 111,038 | 95,713 | 94,035 | |||||||||||||
Preferred stock dividends | (4,163) | (3,431) | (1,969) | (1,968) | (1,969) | |||||||||||||
Net income (loss) available to common shareholders | $ | 178,148 | $ | (20,178) | $ | 109,069 | $ | 93,745 | $ | 92,066 | ||||||||
Weighted-average common shares outstanding - Diluted | 175,895 | 147,533 | 90,284 | 90,232 | 90,221 | |||||||||||||
Earnings (loss) per common share: | ||||||||||||||||||
Basic | $ | 1.00 | $ | (0.14) | $ | 1.20 | $ | 1.03 | $ | 1.02 | ||||||||
Diluted | 1.00 | (0.14) | 1.20 | 1.03 | 1.01 |
WEBSTER FINANCIAL CORPORATION | ||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average balance | Interest | Yield/rate | Average balance | Interest | Yield/rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 44,120,698 | $ | 436,462 | 3.92 | % | $ | 21,413,439 | $ | 186,681 | 3.46 | % | ||||||||||||
Investment securities (a) | 15,165,514 | 85,958 | 2.22 | 8,834,859 | 46,582 | 2.13 | ||||||||||||||||||
Federal Home Loan and Federal Reserve Bank stock | 262,695 | 2,072 | 3.16 | 77,292 | 382 | 1.98 | ||||||||||||||||||
Interest-bearing deposits (b) | 488,870 | 980 | 0.79 | 1,270,121 | 347 | 0.11 | ||||||||||||||||||
Loans held for sale | 18,172 | 7 | 0.15 | 8,898 | 53 | 2.37 | ||||||||||||||||||
Total interest-earning assets | 60,055,949 | $ | 525,479 | 3.46 | % | 31,604,609 | $ | 234,045 | 2.95 | % | ||||||||||||||
Non-interest-earning assets | 6,016,193 | 1,901,412 | ||||||||||||||||||||||
Total Assets | $ | 66,072,142 | $ | 33,506,021 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 13,395,942 | $ | - | - | % | $ | 6,774,206 | $ | - | - | % | ||||||||||||
Health savings accounts | 7,812,313 | 1,125 | 0.06 | 7,446,735 | 1,650 | 0.09 | ||||||||||||||||||
Interest-bearing checking, money market and savings | 29,486,846 | 10,165 | 0.14 | 12,365,074 | 1,603 | 0.05 | ||||||||||||||||||
Certificates of deposit | 2,684,914 | 1,169 | 0.17 | 2,114,889 | 1,841 | 0.35 | ||||||||||||||||||
Total deposits | 53,380,015 | 12,459 | 0.09 | 28,700,904 | 5,094 | 0.07 | ||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 1,064,304 | 2,677 | 1.00 | 500,638 | 860 | 0.68 | ||||||||||||||||||
Federal Home Loan Bank advances | 1,156,449 | 3,164 | 1.08 | 138,483 | 534 | 1.52 | ||||||||||||||||||
Long-term debt (a) | 1,077,395 | 8,787 | 3.38 | 565,874 | 4,218 | 3.22 | ||||||||||||||||||
Total borrowings | 3,298,148 | 14,628 | 1.79 | 1,204,995 | 5,612 | 1.93 | ||||||||||||||||||
Total interest-bearing liabilities | 56,678,163 | $ | 27,087 | 0.19 | % | 29,905,899 | $ | 10,706 | 0.14 | % | ||||||||||||||
Non-interest-bearing liabilities | 1,268,461 | 288,716 | ||||||||||||||||||||||
Total liabilities | 57,946,624 | 30,194,615 | ||||||||||||||||||||||
Preferred stock | 283,979 | 145,037 | ||||||||||||||||||||||
Common shareholders' equity | 7,841,539 | 3,166,369 | ||||||||||||||||||||||
Total shareholders' equity | 8,125,518 | 3,311,406 | ||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 66,072,142 | $ | 33,506,021 | ||||||||||||||||||||
Tax-equivalent net interest income | 498,392 | 223,339 | ||||||||||||||||||||||
Less: tax-equivalent adjustments | (11,732) | (2,487) | ||||||||||||||||||||||
Net interest income | $ | 486,660 | $ | 220,852 | ||||||||||||||||||||
Net interest margin | 3.28 | % | 2.82 | % | ||||||||||||||||||||
(a) For the purposes of our average yield/rate and margin computations, unsettled trades on investment securities and 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 | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average balance | Interest | Yield/rate | Average balance | Interest | Yield/rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans and leases | $ | 40,039,437 | $ | 785,879 | 3.91 | % | $ | 21,447,192 | $ | 377,969 | 3.51 | % | ||||||||||||
Investment securities (a) | 14,298,347 | 153,227 | 2.12 | 8,862,314 | 92,859 | 2.13 | ||||||||||||||||||
Federal Home Loan and Federal Reserve Bank stock | 214,792 | 2,893 | 2.72 | 77,461 | 619 | 1.61 | ||||||||||||||||||
Interest-bearing deposits (b) | 643,210 | 1,433 | 0.44 | 976,873 | 523 | 0.11 | ||||||||||||||||||
Loans held for sale | 18,046 | 33 | 0.36 | 11,610 | 144 | 2.48 | ||||||||||||||||||
Total interest-earning assets | 55,213,832 | $ | 943,465 | 3.40 | % | 31,375,450 | $ | 472,114 | 3.01 | % | ||||||||||||||
Non-interest-earning assets | 5,257,642 | 1,941,640 | ||||||||||||||||||||||
Total Assets | $ | 60,471,474 | $ | 33,317,090 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 12,335,504 | $ | - | - | % | $ | 6,606,464 | $ | - | - | % | ||||||||||||
Health savings accounts | 7,786,035 | 2,212 | 0.06 | 7,448,943 | 3,257 | 0.09 | ||||||||||||||||||
Interest-bearing checking, money market and savings | 26,915,923 | 15,184 | 0.11 | 12,181,295 | 3,323 | 0.06 | ||||||||||||||||||
Certificates of deposit | 2,614,989 | 2,462 | 0.19 | 2,242,250 | 4,953 | 0.45 | ||||||||||||||||||
Total deposits | 49,652,451 | 19,858 | 0.08 | 28,478,952 | 11,533 | 0.08 | ||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 822,017 | 3,634 | 0.88 | 511,622 | 1,495 | 0.58 | ||||||||||||||||||
Federal Home Loan Bank advances | 586,857 | 3,220 | 1.09 | 137,143 | 1,047 | 1.52 | ||||||||||||||||||
Long-term debt (a) | 987,353 | 15,955 | 3.36 | 566,462 | 8,441 | 3.22 | ||||||||||||||||||
Total borrowings | 2,396,227 | 22,809 | 1.93 | 1,215,227 | 10,983 | 1.87 | ||||||||||||||||||
Total interest-bearing liabilities | 52,048,678 | $ | 42,667 | 0.16 | % | 29,694,179 | $ | 22,516 | 0.15 | % | ||||||||||||||
Non-interest-bearing liabilities | 1,010,331 | 339,949 | ||||||||||||||||||||||
Total liabilities | 53,059,009 | 30,034,128 | ||||||||||||||||||||||
Preferred stock | 260,183 | 145,037 | ||||||||||||||||||||||
Common shareholders' equity | 7,152,282 | 3,137,925 | ||||||||||||||||||||||
Total shareholders' equity | 7,412,465 | 3,282,962 | ||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 60,471,474 | $ | 33,317,090 | ||||||||||||||||||||
Tax-equivalent net interest income | 900,798 | 449,598 | ||||||||||||||||||||||
Less: tax-equivalent adjustments | (19,890) | (4,982) | ||||||||||||||||||||||
Net interest income | $ | 880,908 | $ | 444,616 | ||||||||||||||||||||
Net interest margin | 3.24 | % | 2.87 | % | ||||||||||||||||||||
(a) For the purposes of our average yield/rate and margin computations, unsettled trades on investment securities and 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 | ||||||||||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||
Loan and Lease Balances (actual): | ||||||||||||||||||
Commercial non-mortgage | $ | 16,628,317 | $ | 15,578,594 | $ | 7,509,538 | $ | 7,172,345 | $ | 7,473,758 | ||||||||
Asset-based lending | 1,892,278 | 1,807,545 | 1,067,248 | 986,782 | 943,961 | |||||||||||||
Commercial real estate | 18,141,670 | 17,584,947 | 6,603,180 | 6,522,679 | 6,410,672 | |||||||||||||
Residential mortgages | 7,223,728 | 6,798,199 | 5,412,905 | 5,167,527 | 4,856,302 | |||||||||||||
Consumer | 1,760,750 | 1,767,200 | 1,678,858 | 1,731,002 | 1,790,308 | |||||||||||||
Total Loan and Lease Balances | 45,646,743 | 43,536,485 | 22,271,729 | 21,580,335 | 21,475,001 | |||||||||||||
Allowance for credit losses on loans and leases | (571,499) | (569,371) | (301,187) | (314,922) | (307,945) | |||||||||||||
Loans and Leases, net | $ | 45,075,244 | $ | 42,967,114 | $ | 21,970,542 | $ | 21,265,413 | $ | 21,167,056 | ||||||||
Loan and Lease Balances (average): | ||||||||||||||||||
Commercial non-mortgage | $ | 15,850,507 | $ | 12,568,454 | $ | 7,304,985 | $ | 7,280,258 | $ | 7,545,398 | ||||||||
Asset-based lending | 1,851,956 | 1,540,301 | 1,010,874 | 956,535 | 937,580 | |||||||||||||
Commercial real estate | 17,756,151 | 13,732,925 | 6,575,865 | 6,510,100 | 6,365,830 | |||||||||||||
Residential mortgages | 6,905,509 | 6,322,495 | 5,309,127 | 5,036,329 | 4,738,859 | |||||||||||||
Consumer | 1,756,575 | 1,748,654 | 1,701,250 | 1,755,291 | 1,825,772 | |||||||||||||
Total Loan and Lease Balances | $ | 44,120,698 | $ | 35,912,829 | $ | 21,902,101 | $ | 21,538,513 | $ | 21,413,439 |
WEBSTER FINANCIAL CORPORATION | ||||||||||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||
Nonperforming loans and leases: | ||||||||||||||||||
Commercial non-mortgage | $ | 112,006 | $ | 108,460 | $ | 63,553 | $ | 40,774 | $ | 57,831 | ||||||||
Asset-based lending | 25,862 | 5,494 | 2,114 | 2,139 | 2,403 | |||||||||||||
Commercial real estate | 49,935 | 74,581 | 5,058 | 15,972 | 12,687 | |||||||||||||
Residential mortgages | 27,213 | 27,318 | 15,591 | 19,327 | 21,467 | |||||||||||||
Consumer | 32,514 | 32,258 | 23,462 | 23,558 | 26,353 | |||||||||||||
Total nonperforming loans and leases | $ | 247,530 | $ | 248,111 | $ | 109,778 | $ | 101,770 | $ | 120,741 | ||||||||
Other real estate owned and repossessed assets: | ||||||||||||||||||
Residential mortgages | $ | 2,558 | $ | 2,582 | $ | 2,276 | $ | 1,759 | $ | 1,934 | ||||||||
Consumer | 154 | 513 | 536 | 680 | 822 | |||||||||||||
Total other real estate owned and repossessed assets | $ | 2,712 | $ | 3,095 | $ | 2,812 | $ | 2,439 | $ | 2,756 | ||||||||
Total nonperforming assets | $ | 250,242 | $ | 251,206 | $ | 112,590 | $ | 104,209 | $ | 123,497 | ||||||||
Past due 30-89 days: | ||||||||||||||||||
Commercial non-mortgage | $ | 6,006 | $ | 8,025 | $ | 9,340 | $ | 5,537 | $ | 3,154 | ||||||||
Asset-based lending | - | 24,103 | - | - | - | |||||||||||||
Commercial real estate | 25,587 | 20,533 | 921 | 821 | 1,679 | |||||||||||||
Residential mortgages | 10,781 | 9,307 | 3,561 | 3,447 | 4,690 | |||||||||||||
Consumer | 9,275 | 9,379 | 5,576 | 7,158 | 8,829 | |||||||||||||
Total past due 30-89 days | $ | 51,649 | $ | 71,347 | $ | 19,398 | $ | 16,963 | $ | 18,352 | ||||||||
Past due 90 days or more and accruing | 8 | 124 | 2,507 | 107 | 25 | |||||||||||||
Total past due loans and leases | $ | 51,657 | $ | 71,471 | $ | 21,905 | $ | 17,070 | $ | 18,377 |
WEBSTER FINANCIAL CORPORATION | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
ACL on loans and leases, beginning balance | $ | 569,371 | $ | 301,187 | $ | 314,922 | $ | 307,945 | $ | 328,351 | |||||||||||||
Initial allowance on PCD loans and leases (1) | - | 88,045 | - | - | - | ||||||||||||||||||
Provision | 11,728 | 189,068 | (14,980) | 7,898 | (21,574) | ||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||
Commercial portfolio | 18,757 | 11,248 | 799 | 1,723 | 594 | ||||||||||||||||||
Consumer portfolio | 896 | 1,120 | 1,382 | 2,053 | 2,808 | ||||||||||||||||||
Total charge-offs | 19,653 | 12,368 | 2,181 | 3,776 | 3,402 | ||||||||||||||||||
Recoveries: | |||||||||||||||||||||||
Commercial portfolio | 7,765 | 1,364 | 1,107 | 142 | 836 | ||||||||||||||||||
Consumer portfolio | 2,288 | 2,075 | 2,319 | 2,713 | 3,734 | ||||||||||||||||||
Total recoveries | 10,053 | 3,439 | 3,426 | 2,855 | 4,570 | ||||||||||||||||||
Total net charge-offs (recoveries) | 9,600 | 8,929 | (1,245) | 921 | (1,168) | ||||||||||||||||||
ACL on loans and leases, ending balance | $ | 571,499 | $ | 569,371 | $ | 301,187 | $ | 314,922 | $ | 307,945 | |||||||||||||
ACL on unfunded loan commitments, beginning balance | $ | 19,640 | $ | 13,104 | $ | 12,170 | $ | 11,974 | $ | 12,800 | |||||||||||||
Acquisition of Sterling | - | 6,749 | - | - | - | ||||||||||||||||||
Provision | 509 | (213) | 934 | 196 | (826) | ||||||||||||||||||
ACL on unfunded loan commitments, ending balance | $ | 20,149 | $ | 19,640 | $ | 13,104 | $ | 12,170 | $ | 11,974 | |||||||||||||
Total ending balance | $ | 591,648 | $ | 589,011 | $ | 314,291 | $ | 327,092 | $ | 319,919 | |||||||||||||
(1) Represents the establishment of the initial reserve for PCD loans and leases net of |
WEBSTER FINANCIAL CORPORATION | ||||||||||||||||||||
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 (ROATCE) 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 certificates of deposit and brokered time deposits. Adjusted net income (loss) available to common shareholders, adjusted diluted earnings per share (EPS), adjusted ROATCE, and adjusted return on average assets (ROAA) are calculated by excluding after tax non-operational items including merger-related expenses and the initial non-PCD provision related to the merger. 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) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
Efficiency ratio: | ||||||||||||||||||||
Non-interest expense | $ | 358,227 | $ | 359,785 | $ | 189,853 | $ | 180,237 | $ | 187,028 | ||||||||||
Less: Foreclosed property activity | (358) | (75) | (347) | (142) | (137) | |||||||||||||||
Intangible assets amortization | 8,802 | 6,387 | 1,118 | 1,124 | 1,132 | |||||||||||||||
Operating lease depreciation | 2,425 | 1,632 | - | - | - | |||||||||||||||
Strategic initiatives | (152) | (4,140) | 600 | (4,011) | 1,138 | |||||||||||||||
Merger related | 66,640 | 108,495 | 10,560 | 9,847 | 17,047 | |||||||||||||||
Debt prepayment costs | - | - | 2,526 | - | - | |||||||||||||||
Non-interest expense | $ | 280,870 | $ | 247,486 | $ | 175,396 | $ | 173,419 | $ | 167,848 | ||||||||||
Net interest income | $ | 486,660 | $ | 394,248 | $ | 226,782 | $ | 229,691 | $ | 220,852 | ||||||||||
Add: Tax-equivalent adjustment | 11,732 | 8,158 | 2,397 | 2,434 | 2,487 | |||||||||||||||
Non-interest income | 120,933 | 104,035 | 90,138 | 83,775 | 72,702 | |||||||||||||||
Other | 3,805 | 3,082 | 431 | 327 | 309 | |||||||||||||||
Less: Operating lease depreciation | 2,425 | 1,632 | - | - | - | |||||||||||||||
Income | $ | 620,705 | $ | 507,891 | $ | 319,748 | $ | 316,227 | $ | 296,350 | ||||||||||
Efficiency ratio | 45.25 | % | 48.73 | % | 54.85 | % | 54.84 | % | 56.64 | % | ||||||||||
Return on average tangible common shareholders' equity: | ||||||||||||||||||||
Net income (loss) | $ | 182,311 | $ | (16,747) | $ | 111,038 | $ | 95,713 | $ | 94,035 | ||||||||||
Less: Preferred stock dividends | 4,163 | 3,431 | 1,969 | 1,968 | 1,969 | |||||||||||||||
Add: Intangible assets amortization, tax-effected | 6,954 | 5,046 | 883 | 888 | 894 | |||||||||||||||
Income (loss) adjusted for preferred stock dividends and intangible assets amortization | $ | 185,102 | $ | (15,132) | $ | 109,952 | $ | 94,633 | $ | 92,960 | ||||||||||
Income (loss) adjusted for preferred stock dividends and intangible assets amortization, annualized basis | $ | 740,408 | $ | (60,528) | $ | 439,808 | $ | 378,532 | $ | 371,840 | ||||||||||
Average shareholders' equity | $ | 8,125,518 | $ | 6,691,490 | $ | 3,411,911 | $ | 3,375,401 | $ | 3,311,406 | ||||||||||
Less: Average preferred stock | 283,979 | 236,121 | 145,037 | 145,037 | 145,037 | |||||||||||||||
Average goodwill and other intangible assets | 2,733,827 | 2,007,266 | 556,784 | 557,902 | 559,032 | |||||||||||||||
Average tangible common shareholders' equity | $ | 5,107,712 | $ | 4,448,103 | $ | 2,710,090 | $ | 2,672,462 | $ | 2,607,337 | ||||||||||
Return on average tangible common shareholders' equity | 14.50 | % | (1.36) | % | 16.23 | % | 14.16 | % | 14.26 | % | ||||||||||
Tangible equity: | ||||||||||||||||||||
Shareholders' equity | $ | 7,997,788 | $ | 8,177,135 | $ | 3,438,325 | $ | 3,386,189 | $ | 3,329,705 | ||||||||||
Less: Goodwill and other intangible assets | 2,729,551 | 2,738,353 | 556,242 | 557,360 | 558,485 | |||||||||||||||
Tangible shareholders' equity | $ | 5,268,237 | $ | 5,438,782 | $ | 2,882,083 | $ | 2,828,829 | $ | 2,771,220 | ||||||||||
Total assets | $ | 67,595,021 | $ | 65,131,484 | $ | 34,915,599 | $ | 35,374,258 | $ | 33,753,752 | ||||||||||
Less: Goodwill and other intangible assets | 2,729,551 | 2,738,353 | 556,242 | 557,360 | 558,485 | |||||||||||||||
Tangible assets | $ | 64,865,470 | $ | 62,393,131 | $ | 34,359,357 | $ | 34,816,898 | $ | 33,195,267 | ||||||||||
Tangible equity | 8.12 | % | 8.72 | % | 8.39 | % | 8.12 | % | 8.35 | % | ||||||||||
Tangible common equity: | ||||||||||||||||||||
Tangible shareholders' equity | $ | 5,268,237 | $ | 5,438,782 | $ | 2,882,083 | $ | 2,828,829 | $ | 2,771,220 | ||||||||||
Less: Preferred stock | 283,979 | 283,979 | 145,037 | 145,037 | 145,037 | |||||||||||||||
Tangible common shareholders' equity | $ | 4,984,258 | $ | 5,154,803 | $ | 2,737,046 | $ | 2,683,792 | $ | 2,626,183 | ||||||||||
Tangible assets | $ | 64,865,470 | $ | 62,393,131 | $ | 34,359,357 | $ | 34,816,898 | $ | 33,195,267 | ||||||||||
Tangible common equity | 7.68 | % | 8.26 | % | 7.97 | % | 7.71 | % | 7.91 | % | ||||||||||
Tangible book value per common share: | ||||||||||||||||||||
Tangible common shareholders' equity | $ | 4,984,258 | $ | 5,154,803 | $ | 2,737,046 | $ | 2,683,792 | $ | 2,626,183 | ||||||||||
Common shares outstanding | 176,041 | 178,102 | 90,584 | 90,588 | 90,594 | |||||||||||||||
Tangible book value per common share | $ | 28.31 | $ | 28.94 | $ | 30.22 | $ | 29.63 | $ | 28.99 | ||||||||||
Core deposits: | ||||||||||||||||||||
Total deposits | $ | 53,077,157 | $ | 54,356,283 | $ | 29,847,029 | $ | 30,026,327 | $ | 28,846,966 | ||||||||||
Less: Certificates of deposit | 2,554,102 | 2,821,097 | 1,797,770 | 1,884,373 | 2,014,544 | |||||||||||||||
Core deposits | $ | 50,523,055 | $ | 51,535,186 | $ | 28,049,259 | $ | 28,141,954 | $ | 26,832,422 | ||||||||||
Three months ended | ||||||||||||||||||||
Adjusted ROATCE: | ||||||||||||||||||||
Net income | $ | 182,311 | ||||||||||||||||||
Less: Preferred stock dividends | 4,163 | |||||||||||||||||||
Add: Intangible assets amortization, tax-effected | 6,954 | |||||||||||||||||||
Strategic initiatives, tax-effected | (116) | |||||||||||||||||||
Merger related, tax-effected | 50,583 | |||||||||||||||||||
Income adjusted for preferred stock dividends, intangible assets amortization, and other | $ | 235,569 | ||||||||||||||||||
Income adjusted for preferred stock dividends, intangible assets amortization, and other, annualized basis | $ | 942,276 | ||||||||||||||||||
Average shareholders' equity | $ | 8,125,518 | ||||||||||||||||||
Less: Average preferred stock | 283,979 | |||||||||||||||||||
Average goodwill and other intangible assets | 2,733,827 | |||||||||||||||||||
Average tangible common shareholders' equity | $ | 5,107,712 | ||||||||||||||||||
Adjusted return on average tangible common shareholders' equity | 18.45 | % | ||||||||||||||||||
Adjusted ROAA: | ||||||||||||||||||||
Net income | $ | 182,311 | ||||||||||||||||||
Add: Strategic initiatives, tax-effected | (116) | |||||||||||||||||||
Merger related, tax-effected | 50,583 | |||||||||||||||||||
Income adjusted for strategic initiatives and merger related | $ | 232,778 | ||||||||||||||||||
Income adjusted for strategic initiatives and merger related, annualized basis | $ | 931,112 | ||||||||||||||||||
Average assets | $ | 66,072,142 | ||||||||||||||||||
Adjusted return on average assets | 1.41 | % | ||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
GAAP to adjusted reconciliation: | ||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||
Pre-Tax Income | Net Income Available | Diluted EPS | ||||||||||||||||||
Reported (GAAP) | $ | 237.1 | $ | 178.1 | $ | 1.00 | ||||||||||||||
Strategic initiatives | (0.1) | (0.1) | - | |||||||||||||||||
Merger related expenses | 66.6 | 50.6 | 0.29 | |||||||||||||||||
Adjusted (non-GAAP) | $ | 303.6 | $ | 228.6 | $ | 1.29 |
View original content:https://www.prnewswire.com/news-releases/webster-reports-second-quarter-2022-eps-of-1-00-adjusted-eps-of-1-29--301590915.html
SOURCE Webster Financial Corporation
FAQ
What were Webster Financial's earnings per share for Q2 2022?
How much did Webster Financial earn in Q2 2022 compared to Q2 2021?
What percentage of Webster's loans are commercial loans?
What was Webster's revenue for the second quarter of 2022?