In the news release, Webster Reports Third Quarter Results, issued
22-Oct-2009 by Webster Financial Corporation over PR Newswire, we
are advised by the company that the first bullet point under the
"Warburg Pincus Investment" heading should be replaced with the
following: WATERBURY, Conn., Oct. 22 /PRNewswire-FirstCall/ --
Webster Financial Corporation (NYSE:WBS), the holding company for
Webster Bank, N.A., today announced a consolidated net loss of
$19.2 million and net loss available to common shareholders of
$26.1 million for the quarter ended September 30, 2009. For the
first nine months of 2009, the consolidated net loss was $61.9
million and net loss available to common shareholders was $30.9
million. Key points for the quarter: -- Strong deposit growth of
$426 million in the quarter; up $1.7 billion year to date. --
Improved loan-to-deposit ratio of 83 percent compared to 88 percent
at June 30, 2009. -- Improved core to total deposit ratio of 69
percent compared to 65 percent at June 30, 2009. -- Improved net
interest margin of 3.18 percent compared to 3.04 percent for the
second quarter of 2009. -- Increased the allowance for credit
losses to 2.97 percent of total loans; recorded $85.0 million in
provision for credit losses and net charge-offs of $64.6 million.
-- Higher core pre-tax, pre-provision earnings of $56 million
compared to $51 million for the second quarter. -- The Warburg
Pincus investment announced on July 27, 2009 added $40 million of
common equity during the quarter. The remaining $75 million
investment in common equity, non-voting perpetual participating
preferred stock, and warrants was completed on October 15, 2009
after receipt of regulatory approval. Webster Chairman and Chief
Executive Officer James C. Smith said, "Webster reported progress
on several fronts in the quarter. Capital levels continue to
improve and are well in excess of all regulatory requirements;
earnings before credit provisions increased by 10 percent; and
deposits and deposit market share are on the rise. We saw
significant improvement in the net interest margin, loan
delinquencies were flat for the third consecutive quarter and
overall performance was solid considering the challenging
environment." Warburg Pincus Investment -- During the third
quarter, Webster announced that the global private equity firm,
Warburg Pincus, would make a $115 million investment in Webster's
common stock. An initial amount of $40 million in the form of 4.0
million common shares was invested on July 27, 2009. The remaining
$75 million was invested on October 15, 2009 with $30 million in
the form of 3.0 million common shares and $45 million in junior
non-voting preferred stock, which converts into an additional 4.5
million common shares, subject to the receipt of shareholder
approval, 1.8 million seven-year A-Warrants, Series 1, which
initially have a strike price of $10.00 per share, with the strike
price increasing to $11.50 per share on October 15, 2011 and to
$13.00 per share on October 15, 2013; and 1.2 million seven-year
B-Warrants, Series 1 with a strike price of $2.50 per share which
will only become exercisable and transferable if shareholder
approval is not received by February 28, 2010. The B-Warrants,
Series 1 will expire immediately upon receipt of shareholder
approval. This investment, coupled with the successful exchange
offer for convertible preferred stock and trust preferred
securities completed during the second quarter, has allowed Webster
to increase common equity by $285 million with minimal dilution to
tangible book value. -- Including the initial $40 million realized
under the Warburg Pincus investment during the third quarter,
Webster's ratio of Tier 1 common to risk-weighted assets was 6.39
percent at September 30, 2009 and including the recently funded $75
million on a proforma basis, would have been 6.93 percent at
September 30, 2009. Smith said, "The recent approval by the Fed and
funding of the balance of the Warburg Pincus investment has
significantly boosted our capital position subsequent to the
quarter end. We are pleased to have this transaction completed and
to have Warburg as an investor in Webster." Net interest income --
Net interest margin improved to 3.18 percent in the third quarter
compared to 3.04 percent in the second quarter; the increase
reflects a 28 basis point decline in the cost of funds offsetting a
12 basis point decline in the yield on interest-earning assets. --
Average interest-earning assets totaled $16.2 billion, up from
$16.0 billion last quarter. Provision for credit losses -- $56.5
million of the provision for credit losses recorded in the quarter
was related to the Company's continuing portfolios and $28.5
million was related to the discontinued liquidating portfolio. --
Net charge-offs were $64.6 million in the quarter compared to $49.9
million for the quarter ended June 30, 2009; $51.4 million was
related to the continuing portfolios and $13.2 million was related
to the discontinued liquidating portfolio. Noninterest income --
Deposit service fees increased by $0.9 million from last quarter,
reflecting seasonality in account usage. -- Wealth and investment
services revenues increased by $0.1 million from the last quarter,
primarily from an increase in the value of assets under management.
-- Loan related fees declined by $0.8 million from the last
quarter, reflective of lower application volumes and amendment fees
in the quarter. -- Mortgage banking revenue declined by $2.0
million from the last quarter from decreased mortgage lending
activity in the period. -- Net loss on sale of investment
securities totaled $4.7 million as $4.9 million of pooled trust
preferred securities were sold for tax purposes. -- Other income
increased by $2.2 million primarily from higher credit card
referral fees, direct investment income and receipt of insurance
proceeds. -- Loss of $1.3 million on the write-down of investments
on certain pooled trust preferred securities to fair value based on
credit deterioration in certain underlying issuers. Noninterest
expenses -- Noninterest expenses, inclusive of severance and other
one time costs and the special FDIC assessment, declined $3.0
million from the second quarter. The second quarter included $8.0
million in FDIC special assessment and $1.3 million in severance
and other charges, while the third quarter included $4.1 million in
such charges. Included in the third quarter charges is the
establishment of a $3.1 million reserve for fraud which had no
customer impact and excludes any consideration of recovery. Income
taxes -- Due to the pre-tax loss, the effective tax rate for the
third quarter was not meaningful. The Company recorded a $22.0
million tax benefit in the quarter on the $41.3 million pre-tax
loss applicable to continuing operations in the period. Investment
securities -- Total investment securities were $4.6 billion at
September 30, 2009 compared to $4.2 billion at June 30, 2009. The
carrying value of the available for sale portfolio included $4
million in net unrealized losses compared to $53 million at June
30, 2009, while the carrying value of the held to maturity
portfolio does not reflect $103 million in net unrealized gains at
September 30 compared to $33 million at June 30, 2009. Loans --
Total loans were $11.3 billion at September 30, 2009 compared to
$11.6 billion at June 30, 2009. In the third quarter, residential
mortgage, consumer, commercial and commercial real estate loans
declined by $38.9 million, $64.4 million, $164.2 million and $20.8
million, respectively. -- The discontinued liquidating portfolio of
indirect home equity and national construction loans, included in
the consumer and residential loan portfolios, declined by $18.5
million from June 30, 2009 to $231.3 million and $5.8 million,
respectively. Asset quality -- Total nonperforming loans were
$361.1 million or 3.19 percent of total loans at September 30, 2009
compared to $350.4 million or 3.02 percent at June 30, 2009. The
increase in nonperforming loans reflects a combined increase of
$12.9 million in performing non-accrual residential mortgages and
consumer loans, an increase of $30.9 million in non-accrual
commercial real estate loans and a combined decrease of $33.1
million in all other categories. -- Past due loans for the
continuing portfolios increased to $114.9 million at September 30,
2009 compared to $112.5 million at June 30, 2009. Past due loans
for the liquidating portfolio increased to $12.6 million at
September 30, 2009 compared to $9.9 million at June 30, 2009.
Deposits and borrowings -- Total deposits were $13.6 billion at
September 30, 2009 compared to $13.2 billion at June 30, 2009. The
core categories of demand, NOW, money market and savings increased
by a combined amount of $737.3 million while certificates of
deposit and brokered deposits decreased by $273.3 million and $37.9
million, respectively. -- Core deposits, which exclude certificates
of deposits and brokered deposits, represented 68.5 percent of
total deposits at September 30, 2009 compared to 65.2 percent at
June 30, 2009 and 60.5 percent a year ago. -- Total borrowings were
$2.1 billion, a decline of $0.2 billion from $2.3 billion at June
30, 2009. Borrowings represented 11.9 percent of total assets at
September 30, 2009 compared to 13.0 percent at June 30, 2009.
Webster Financial Corporation is the holding company for Webster
Bank, National Association. With $17.8 billion in assets, Webster
provides business and consumer banking, mortgage, financial
planning, trust and investment services through 181 banking
offices, 492 ATMs, telephone banking and the Internet. Webster Bank
owns the asset-based lending firm Webster Business Credit
Corporation, the insurance premium finance company Budget
Installment Corp., Center Capital Corporation, an equipment finance
company headquartered in Farmington, Conn., and provides health
savings account trustee and administrative services through HSA
Bank, a division of Webster Bank. Member FDIC and equal housing
lender. For more information about Webster, including past press
releases and the latest annual report, visit the Webster website at
http://www.websteronline.com/. Conference Call A conference call
covering Webster's third quarter earnings announcement will be held
today, Thursday, October 22, at 9:00 a.m. EDT and may be heard
through Webster's investor relations website at
http://www.wbst.com/, or in listen-only mode by calling
1-877-407-8289 or 201-689-8341 internationally. The call will be
archived on the website and available for future retrieval.
Forward-looking statements This press release may contain forward
looking statements within the meaning of the Securities Exchange
Act of 1934, as amended. Actual results could differ materially
from management expectations, projections and estimates. Factors
that could cause future results to vary from current management
expectations include, but are not limited to, general economic
conditions, legislative and regulatory changes, monetary and fiscal
policies of the federal government, any failure to receive the
approval of Webster's shareholders in connection with Warburg
Pincus' investment, changes in tax policies, rates and regulations
of federal, state and local tax authorities, changes in interest
rates, deposit flows, the cost of funds, demand for loan products,
demand for financial services, competition, changes in the quality
or composition of our loan and investment portfolios, changes in
accounting principles, policies or guidelines, and other economic,
competitive, governmental and technological factors affecting our
operations, markets, products, services and prices. Some of these
and other factors are discussed in the annual and quarterly reports
of Webster Financial Corporation previously filed with the
Securities and Exchange Commission. Such developments, or any
combination thereof, could have an adverse impact on the company's
financial position and results of operations. Except as required by
law, Webster does not undertake to update any such forward looking
statements. Additional Information In connection with the
Investment Agreement, Webster has filed with the Securities and
Exchange Commission (the "SEC") a preliminary proxy statement.
Webster will mail the definitive proxy statement, when available,
to its shareholders. Investors and security holders are urged to
read the proxy statement regarding the investment when it becomes
available because it will contain important information. You may
obtain a free copy of the proxy statement (when available) and
other related documents filed by Webster with the SEC at the SEC's
website at http://www.sec.gov/. The definitive proxy statement
(when available) and the other documents may also be obtained for
free by accessing Webster's website at http://www.websterbank.com/
under the heading "Investor Relations" and then under the heading
"Financial Reports" and then under the heading "SEC Filings."
Participants in the Solicitation Webster and its directors,
executive officers and certain other members of management and
employees may be soliciting proxies from shareholders in favor of
certain matters relating to Warburg Pincus' investment. Information
regarding the persons who may, under the rules of the SEC, be
considered participants in the solicitation of the shareholders in
connection with such matters is filed with the SEC. Information
about the directors and executive officers of Webster is set forth
in Webster's definitive proxy statement filed with the SEC on March
20, 2009. Additional information regarding the participants in the
proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the
preliminary proxy statement filed with the SEC on September 21,
2009. You may obtain a free copy of the definitive proxy statement
(when available) and other related documents filed by Webster with
the SEC at the SEC's website at http://www.sec.gov/. The definitive
proxy statement (when available) and the other documents may also
be obtained for free by accessing Webster's website at
http://www.websterbank.com/ under the heading "Investor Relations"
and then under the heading "Financial Reports" and then under the
heading "SEC Filings." Non-GAAP Financial Measures In addition to
results presented in accordance with GAAP, this press release
contains certain non-GAAP financial measures. A reconciliation of
net income and other performance ratios, as adjusted, is included
in the accompanying selected financial highlights table. We believe
that providing certain non-GAAP financial measures provides
investors with information useful in understanding our financial
performance, our performance trends and financial position.
Specifically, we provide measures based on what we believe are our
operating earnings on a consistent basis and exclude non-core
operating items which affect the GAAP reporting of results of
operations. We utilize these measures for internal planning and
forecasting purposes. We, as well as securities analysts, investors
and other interested parties, also use these measures to compare
peer company operating performance. We believe that our
presentation and discussion, together with the accompanying
reconciliations, provides a complete understanding of factors and
trends affecting our business and allows investors to view
performance in a manner similar to management. These non-GAAP
measures should not be considered a substitute for GAAP basis
measures and results and we strongly encourage investors to review
our consolidated financial statements in their entirety and not to
rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names. WEBSTER FINANCIAL
CORPORATION Selected Financial Highlights (unaudited)
-------------------------------------------------------------------------
At or for the Three At or for the Nine Months Ended Months Ended
(In thousands, September 30, September 30, except per share data)
2009 2008 2009 2008
-------------------------------------------------------------------------
Net loss and performance ratios (annualized):
-------------------------------------------------------------------------
Net loss $(19,250) $(16,539) $(61,936) $(20,683) Net loss per
diluted common share (0.39) (0.42) (0.54) (0.51) Return on average
shareholders' equity (4.14)% (3.54)% (4.45)% (1.54)% Return on
average tangible equity (5.88) (5.89) (6.32) (2.65) Return on
average assets (0.44) (0.38) (0.47) (0.16) Loss from continuing
operations and performance ratios (annualized):
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Loss from continuing operations $(19,250) $(16,021) $(62,249)
$(17,602) Net loss from continuing operations per diluted common
share (0.39) (0.41) (0.55) (0.45) Return on average shareholders'
equity (4.14)% (3.43)% (4.47)% (1.31)% Return on average tangible
equity (5.88) (5.70) (6.35) (2.26) Return on average assets (0.44)
(0.37) (0.47) (0.14) Noninterest income as a percentage of total
revenue 25.85 10.87 26.85 13.22 Efficiency ratio (a) 65.11 59.60
66.29 63.52 Asset quality:
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Allowance for credit losses $336,511 $198,669 $336,511 $198,669
Nonperforming assets 393,593 249,675 393,593 249,675 Allowance for
credit losses / total loans 2.97% 1.54% 2.97% 1.54% Net charge-offs
/ average loans (annualized) 2.25 1.29 1.62 0.89 Nonperforming
loans / total loans 3.19 1.76 3.19 1.76 Nonperforming assets /
total loans plus OREO 3.47 1.94 3.47 1.94 Allowance for credit
losses / nonperforming loans 93.20 87.55 93.20 87.55 Other ratios
(annualized):
-------------------------------------------------------------------------
Tangible capital ratio 7.70% 6.34% 7.70% 6.34% Tangible common
equity ratio 5.10 5.00 5.10 5.00 Total-risk based capital (d) 14.05
13.10 14.05 13.10 Tier 1 common equity / risk weighted assets (d)
6.40 6.91 6.40 6.91 Shareholders' equity / total assets 10.60 10.37
10.60 10.37 Interest-rate spread 3.12 3.24 2.99 3.21 Net interest
margin 3.18 3.32 3.07 3.28 Share related:
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Book value per common share $21.11 $30.19 $21.11 $30.19 Tangible
book value per common share 13.05 16.13 13.05 16.13 Common stock
closing price 12.47 25.25 12.47 25.25 Dividends declared per common
share 0.01 0.30 0.03 0.90 Common shares issued and outstanding
68,140 52,711 68,140 52,711 Basic shares (average) 66,281 52,032
57,125 52,017 Diluted shares (average) 66,281 52,032 57,125 52,017
Footnotes: ---------- (a) Calculated using SNL's methodology -
noninterest expense (excluding foreclosed property expenses,
intangible amortization, goodwill impairments and other charges) as
a percentage of net interest income (FTE basis) plus noninterest
income (excluding gain/loss on securities and other charges). (b)
For purposes of the yield computation, unrealized gains (losses) on
securities available for sale are excluded from the average
balance. (c) NCLC is defined as National Construction Lending
Center (d) The ratios presented are projected for the 2009
reporting periods and actual for the 2008 reporting periods.
WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheet
(unaudited)
-------------------------------------------------------------------------
September 30, June 30, September 30, (In thousands) 2009 2009 2008
-------------------------------------------------------------------------
Assets: Cash and due from depository institutions $173,437 $254,638
$221,195 Short-term investments 360,618 8,216 6,449 Investment
securities: Trading, at fair value - - 1,197 Available for sale, at
fair value 1,912,283 1,405,872 824,118 Held-to-maturity 2,702,881
2,767,965 2,031,665 --------- --------- --------- Total securities
4,615,164 4,173,837 2,856,980 Loans held for sale 37,005 113,936
3,247 Loans: Residential mortgages 2,843,066 2,881,955 3,567,825
Consumer 3,094,927 3,159,361 3,256,314 Commercial 3,169,425
3,333,610 3,677,069 Commercial real estate 2,214,941 2,235,776
2,365,181 --------- --------- --------- Total loans 11,322,359
11,610,702 12,866,389 Allowance for loan losses (326,406) (305,999)
(189,169) -------- -------- -------- Loans, net 10,995,953
11,304,703 12,677,220 Assets held for disposition 9,920 6,247 900
Federal Home Loan Bank and Federal Reserve Bank stock 140,874
137,874 134,874 Accrued interest receivable 70,007 69,317 75,830
Premises and equipment, net 179,353 179,625 188,443 Goodwill and
other intangible assets, net 559,592 561,013 754,026 Cash surrender
value of life insurance 286,806 285,064 277,176 Deferred tax
assets, net 139,458 153,745 127,628 Prepaid expenses and other
assets 240,099 204,361 192,069 ------- ------- ------- Total Assets
$17,808,286 $17,452,576 $17,516,037 =========== ===========
=========== Liabilities and Equity: Deposits: Demand deposits
$1,571,980 $1,595,390 $1,509,319 NOW accounts 2,544,260 2,591,108
1,740,650 Money market deposit accounts 2,209,145 1,618,910
1,591,599 Savings accounts 2,996,318 2,778,970 2,318,014
Certificates of deposit 4,148,759 4,422,033 4,492,767 Brokered
deposits 130,268 168,171 180,026 ------- ------- ------- Total
deposits 13,600,730 13,174,582 11,832,375 Securities sold under
agreements to repurchase and other short-term debt 872,030
1,015,099 1,688,728 Federal Home Loan Bank advances 663,210 663,123
1,355,931 Long-term debt 589,600 590,520 657,004 Liabilities held
for disposition 15,075 - - Accrued expenses and other liabilities
170,267 158,102 155,810 ------- ------- ------- Total liabilities
15,910,912 15,601,426 15,689,848 Shareholders' equity 1,887,734
1,841,518 1,816,569 Noncontrolling interests 9,640 9,632 9,620
----- ----- ----- Total equity 1,897,374 1,851,150 1,826,189
--------- --------- --------- Total Liabilities and Equity
$17,808,286 $17,452,576 $17,516,037 =========== ===========
=========== See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION Consolidated Statements of Operations
(unaudited)
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Three Months Ended Nine Months Ended September 30, September 30,
(In thousands, except per -------------- -------------- share data)
2009 2008 2009 2008
-------------------------------------------------------------------------
Interest income: Loans including fees $131,266 $175,363 $409,566
$542,421 Investment securities 52,975 39,210 152,601 116,657 Loans
held for sale 716 54 1,713 1,546 --- --- ----- ----- Total interest
income 184,957 214,627 563,880 660,624 ------- ------- -------
------- Interest expense: Deposits 41,977 57,731 144,867 193,028
Borrowings 16,308 27,715 54,856 87,873 ------ ------ ------ ------
Total interest expense 58,285 85,446 199,723 280,901 ------ ------
------- ------- Net interest income 126,672 129,181 364,157 379,723
Provision for credit losses 85,000 45,500 236,000 86,300 ------
------ ------- ------ Net interest income after provision for
credit losses 41,672 83,681 128,157 293,423 ------ ------ -------
------- Non-interest income: Deposit service fees 30,844 31,738
88,787 90,114 Loan related fees 5,557 7,171 18,389 21,920 Wealth
and investment services 6,160 7,070 17,991 21,660 Mortgage banking
activities 1,406 50 5,445 894 Increase in cash surrender value of
life insurance 2,692 2,606 7,949 7,810 Net (loss) gain on sale of
investment securities (4,728) (50) (13,863) 199 Other income 3,517
2,731 5,117 5,369 ----- ----- ----- ----- 45,448 51,316 129,815
147,966 Gain on the exchange of trust preferreds for common stock -
- 24,336 - Gain on early extinguishment of subordinated notes - -
5,993 - Loss on write-down of investments to fair value (1,290)
(33,507) (28,400) (89,684) Visa share transactions - - 1,907 1,625
Loss on sale of FNMA/FHLMC preferred stock - (2,060) - (2,060)
------ ------ ------ ------ Total non-interest income 44,158 15,749
133,651 57,847 ------ ------ ------- ------ Non-interest expenses:
Compensation and benefits 59,772 61,314 175,430 187,623 Occupancy
13,572 12,827 41,461 39,637 Furniture and equipment 15,199 14,892
45,627 45,686 Marketing 3,802 2,478 10,104 11,061 Outside services
3,628 3,798 10,806 11,657 Intangible amortization 1,421 1,464 4,334
4,476 Foreclosed and repossessed asset expenses 1,733 1,496 4,868
2,844 Foreclosed and repossessed asset write-downs 2,232 1,968
8,354 2,685 FDIC deposit insurance assessment 5,942 532 16,491
1,230 Other expenses 15,616 13,998 43,982 44,061 ------ ------
------ ------ 122,917 114,767 361,457 350,960 Severance and other
costs 4,169 1,535 5,722 10,253 Impairment of goodwill - 1,013 -
9,513 FDIC special assessment - - 8,000 - --- --- ----- --- Total
non-interest expenses 127,086 117,315 375,179 370,726 -------
------- ------- ------- Loss from continuing operations before
income taxes (41,256) (17,885) (113,371) (19,456) Income tax
benefit (22,014) (1,878) (51,143) (1,860) ------- ------ -------
------ Loss from continuing operations (19,242) (16,007) (62,228)
(17,596) (Loss) income from discontinued operations, net of tax -
(518) 313 (3,081) --- ---- --- ------ Consolidated net loss
$(19,242) $(16,525) $(61,915) $(20,677) Less: Net income
attributable to noncontrolling interests 8 14 21 6 --- --- --- ---
Net loss attributable to Webster Financial Corporation (19,250)
(16,539) (61,936) (20,683) Preferred stock dividends, accretion and
extinguishment gain (6,850) (5,209) 31,082 (5,640) ------ ------
------ ------ Net loss available to common shareholders $(26,100)
$(21,748) $(30,854) $(26,323) ======== ======== ======== ========
Diluted shares (average) 66,281 52,032 57,125 52,017 Net loss per
common share: Basic Loss from continuing operations $(0.39) $(0.41)
$(0.55) $(0.45) Net loss (0.39) (0.42) (0.54) (0.51) Diluted Loss
from continuing operations (0.39) (0.41) (0.55) (0.45) Net loss
(0.39) (0.42) (0.54) (0.51) See Selected Financial Highlights for
footnotes. WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated
Statements of Operations (unaudited)
-------------------------------------------------------------------------
Three Months Ended ------------------------- Sept. June March 30,
30, 31, (In thousands, except per share data) 2009 2009 2009
-------------------------------------------------------------------------
Interest income: Loans including fees $131,266 $137,533 $140,767
Investment securities 52,975 48,799 50,827 Loans held for sale 716
833 164 --- --- --- Total interest income 184,957 187,165 191,758
------- ------- ------- Interest expense: Deposits 41,977 49,982
52,908 Borrowings 16,308 17,895 20,653 ------ ------ ------ Total
interest expense 58,285 67,877 73,561 ------ ------ ------ Net
interest income 126,672 119,288 118,197 Provision for credit losses
85,000 85,000 66,000 ------ ------ ------ Net interest income after
provision for credit losses 41,672 34,288 52,197 ------ ------
------ Noninterest income: Deposit service fees 30,844 29,984
27,959 Loan related fees 5,557 6,350 6,482 Wealth and investment
services 6,160 6,081 5,750 Mortgage banking activities 1,406 3,433
606 Increase in cash surrender value of life insurance 2,692 2,665
2,592 Net (loss) gain on sale of investment securities (4,728)
(13,593) 4,458 Other income 3,517 1,325 275 ----- ----- --- 45,448
36,245 48,122 Gain on the exchange of trust preferreds for common
stock - 24,336 - Gain on early extinguishment of debt and swaps - -
5,993 Loss on write-down of investments to fair value (1,290)
(27,110) - Loss on sale of FNMA/ FHLMC preferred stock - - - Visa
share transactions - 1,907 - --- ----- --- Total noninterest income
44,158 35,378 54,115 ------ ------ ------ Noninterest expenses:
Compensation and benefits 59,772 59,189 56,469 Occupancy 13,572
13,594 14,295 Furniture and equipment 15,199 15,288 15,140
Marketing 3,802 3,196 3,106 Outside services 3,628 3,394 3,784
Intangible amortization 1,421 1,450 1,463 Foreclosed and
repossessed asset expenses 1,733 1,799 1,179 Foreclosed and
repossessed asset write-downs 2,232 2,829 3,450 FDIC deposit
insurance assessment 5,942 5,959 4,590 Other expenses 15,616 14,066
14,302 ------ ------ ------ 122,917 120,764 117,778 Severance and
other costs 4,169 1,313 240 FDIC special assessment - 8,000 -
Goodwill impairment - - - --- --- --- Total noninterest expenses
127,086 130,077 118,018 ------- ------- ------- Loss from
continuing operations before income taxes (41,256) (60,411)
(11,706) Income tax benefit (22,014) (28,536) (593) ------- -------
---- Loss from continuing operations (19,242) (31,875) (11,113)
Income (loss) from discontinued operations, net of tax - 313 - ---
--- --- Consolidated net loss $(19,242) $(31,562) $(11,113) Less:
Net income (loss) attributable to noncontrolling interests 8 - 13
--- --- --- Net loss attributable to Webster Financial Corporation
(19,250) $(31,562) $(11,126) Preferred stock dividends, accretion
and extinguishment gain (6,850) 48,361 (10,430) ------ ------
------- Net (loss) income available to common shareholders
$(26,100) $16,799 $(21,556) -------- ------- -------- Diluted
shares (average) 66,281 53,398 52,102 Net income (loss) per common
share: Basic (Loss) income from continuing operations $(0.39) $0.31
$(0.41) Net (loss) income (0.39) 0.31 (0.41) Diluted (Loss) income
from continuing operations (0.39) 0.31 (0.41) Net (loss) income
(0.39) 0.31 (0.41) Three Months Ended ------------------ Dec. Sept.
31, 30, (In thousands, except per share data) 2008 2008
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Interest income: Loans including fees $168,200 $175,363 Investment
securities 40,398 39,210 Loans held for sale 51 54 --- --- Total
interest income 208,649 214,627 ------- ------- Interest expense:
Deposits 57,154 57,731 Borrowings 25,427 27,715 ------ ------ Total
interest expense 82,581 85,446 ------ ------ Net interest income
126,068 129,181 Provision for credit losses 100,000 45,500 -------
------ Net interest income after provision for credit losses 26,068
83,681 ------ ------ Noninterest income: Deposit service fees
30,018 31,738 Loan related fees 7,147 7,171 Wealth and investment
services 6,480 7,070 Mortgage banking activities 336 50 Increase in
cash surrender value of life insurance 2,631 2,606 Net (loss) gain
on sale of investment securities (4,233) (50) Other income 1,315
2,731 ----- ----- 43,694 51,316 Gain on the exchange of trust
preferreds for common stock - - Gain on early extinguishment of
debt and swaps - - Loss on write-down of investments to fair value
(129,593) (33,507) Loss on sale of FNMA/ FHLMC preferred stock -
(2,060) Visa share transactions - - --- --- Total noninterest
income (85,899) 15,749 ------- ------ Noninterest expenses:
Compensation and benefits 52,078 61,314 Occupancy 13,406 12,827
Furniture and equipment 15,469 14,892 Marketing 2,895 2,478 Outside
services 4,101 3,798 Intangible amortization 1,463 1,464 Foreclosed
and repossessed asset expenses 1,799 1,496 Foreclosed and
repossessed asset write-downs 1,615 1,968 FDIC deposit insurance
assessment 3,468 532 Other expenses 13,379 13,998 109,673 114,767
Severance and other costs 5,905 1,535 FDIC special assessment - -
Goodwill impairment 188,866 1,013 ------- ----- Total noninterest
expenses 304,444 117,315 ------- ------- Loss from continuing
operations before income taxes (364,275) (17,885) Income tax
benefit (63,980) (1,878) ------- ------ Loss from continuing
operations (300,295) (16,007) Income (loss) from discontinued
operations, net of tax 8 (518) --- ---- Consolidated net loss
$(300,287) $(16,525) Less: Net income (loss) attributable to
noncontrolling interests (1) 14 --- --- Net loss attributable to
Webster Financial Corporation $(300,286) $(16,539) Preferred stock
dividends, accretion and extinguishment gain (7,308) (5,209) ------
------ Net (loss) income available to common shareholders
$(307,594) $(21,748) --------- -------- Diluted shares (average)
52,031 52,032 Net income (loss) per common share: Basic (Loss)
income from continuing operations $(5.91) $(0.41) Net (loss) income
(5.91) (0.42) Diluted (Loss) income from continuing operations
(5.91) (0.41) Net (loss) income (5.91) (0.42) See Selected
Financial Highlights for footnotes. WEBSTER FINANCIAL CORPORATION
Five Quarter Interest-Rate Spreads (unaudited)
-------------------------------------------------------------------------
Three Months Ended ----------------------------------------------
September June March December September 30, 30, 31, 31, 30, 2009
2009 2009 2008 2008
-------------------------------------------------------------------------
Interest-rate spread -------------------- Yield on interest-
earning assets 4.60% 4.72% 4.82% 5.24% 5.45% Cost of
interest-bearing liabilities 1.48 1.76 1.91 2.13 2.21 ---- ----
---- ---- ---- Interest-rate spread 3.12% 2.96% 2.91% 3.11% 3.24%
==== ==== ==== ==== ==== Net interest margin 3.18% 3.04% 2.99%
3.20% 3.32% ==== ==== ==== ==== ==== Consolidated Average Balances,
Yields and Rates Paid (unaudited)
-------------------------------------------------------------------------
Three Months Ended September 30, 2009
-------------------------------------------------------------------------
Fully tax- Average equivalent (Dollars in thousands) balance
Interest yield/rate
-------------------------------------------------------------------------
Assets: Interest-earning assets: Loans $11,465,068 $131,266 4.54%
Investment securities (b) 4,303,155 55,777 5.14 Loans held for sale
68,663 716 4.17 Federal Home Loan and Federal Reserve Bank stock
138,070 674 1.94 Short-term investments 272,222 187 0.27 -------
--- ---- Total interest-earning assets 16,247,178 188,620 4.60
------- ---- Noninterest-earning assets 1,344,626 --------- Total
assets $17,591,804 =========== Liabilities and Shareholders'
Equity: Interest-bearing liabilities: Demand deposits $1,598,433 $-
-% Savings, NOW and money market deposit accounts 7,444,729 15,602
0.83 Time deposits 4,384,509 26,375 2.39 --------- ------ ----
Total deposits 13,427,671 41,977 1.24 ---------- ------ ----
Securities sold under agreements to repurchase and other short-term
debt 895,771 4,472 1.95 Federal Home Loan Bank advances 662,367
6,514 3.85 Long-term debt 589,384 5,322 3.61 ------- ----- ----
Total borrowings 2,147,522 16,308 2.99 --------- ------ ---- Total
interest-bearing liabilities 15,575,193 58,285 1.48 ------ ----
Noninterest-bearing liabilities 146,798 ------- Total liabilities
15,722,050 Noncontrolling Interests 9,636 Shareholders' equity
1,860,177 --------- Total liabilities and shareholders' equity
$17,591,804 =========== Tax-equivalent net interest income 130,335
Less: tax-equivalent adjustment (3,663) ------ Net interest income
$126,672 ======== Interest-rate spread 3.12% ==== Net interest
margin 3.18% ==== Three Months Ended September 30, 2008
-------------------------------------------------------------------------
Fully tax- Average equivalent (Dollars in thousands) balance
Interest yield/rate
-------------------------------------------------------------------------
Assets: Interest-earning assets: Loans $12,805,398 $175,363 5.43%
Investment securities (b) 2,860,309 41,661 5.62 Loans held for sale
3,810 54 5.62 Federal Home Loan and Federal Reserve Bank stock
132,413 1,265 3.80 Short-term investments 4,193 28 2.64 ----- ---
---- Total interest-earning assets 15,806,123 218,371 5.45 -------
---- Noninterest-earning assets 1,537,759 --------- Total assets
$17,343,882 =========== Liabilities and Shareholders' Equity:
Interest-bearing liabilities: Demand deposits $1,515,047 $- -%
Savings, NOW and money market deposit accounts 5,869,948 19,660
1.33 Time deposits 4,670,268 38,070 3.23 --------- ------ ----
Total deposits 12,055,263 57,730 1.90 ---------- ------ ----
Securities sold under agreements to repurchase and other short-term
debt 1,332,097 8,517 2.50 Federal Home Loan Bank advances 1,291,583
10,181 3.08 Long-term debt 655,760 9,018 5.50 ------- ----- ----
Total borrowings 3,279,440 27,716 3.33 --------- ------ ---- Total
interest-bearing liabilities 15,334,703 85,446 2.21 ------ ----
Noninterest-bearing liabilities 132,762 ------- Total liabilities
15,467,502 Noncontrolling interests 9,614 Shareholders' equity
1,866,803 --------- Total liabilities and shareholders' equity
$17,343,882 =========== Tax-equivalent net interest income 132,925
Less: tax-equivalent adjustment (3,744) ------ Net interest income
$129,181 ======== Interest-rate spread 3.24% ==== Net interest
margin 3.32% ==== See Selected Financial Highlights for footnotes.
WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Yields
and Rates Paid (unaudited)
-------------------------------------------------------------------------
Nine Months Ended September 30, 2009
-------------------------------------------------------------------------
Fully tax- Average equivalent (Dollars in thousands) balance
Interest yield/rate
-------------------------------------------------------------------------
Assets: Interest-earning assets: Loans $11,870,636 $409,566 4.58%
Investment securities (b) 3,975,016 161,352 5.31 Loans held for
sale 55,798 1,713 4.09 Federal Home Loan and Federal Reserve Bank
stock 136,940 1,970 1.92 Short-term investments 102,421 261 0.34
------- --- ---- Total interest-earning assets 16,140,811 574,862
4.71 ------- ---- Noninterest-earning assets 1,417,635 ---------
Total assets $17,558,446 =========== Liabilities and Shareholders'
Equity: Interest-bearing liabilities: Demand deposits $1,557,900 $-
-% Savings, NOW and money market deposit accounts 6,716,808 46,542
0.93 Time deposits 4,665,633 98,325 2.82 --------- ------ ----
Total deposits 12,940,341 144,867 1.50 ---------- ------- ----
Securities sold under agreements to repurchase and other short-term
debt 1,204,744 14,826 1.62 Federal Home Loan Bank advances 732,351
20,028 3.61 Long-term debt 641,152 20,002 4.16 ------- ------ ----
Total borrowings 2,578,247 54,856 2.82 --------- ------ ---- Total
interest-bearing liabilities 15,518,588 199,723 1.72 ------- ----
Noninterest-bearing liabilities 172,467 ------- Total liabilities
15,691,107 Noncontrolling interests 9,629 Shareholders' equity
1,857,762 --------- Total liabilities and shareholders' equity
$17,558,446 =========== 375,139 Less: tax-equivalent adjustment
(10,982) ------- Net interest income $364,157 ========
Interest-rate spread 2.99% ==== Net interest margin 3.07% ==== Nine
Months Ended September 30, 2008
-------------------------------------------------------------------------
Fully tax- Average equivalent (Dollars in thousands) balance
Interest yield/rate
-------------------------------------------------------------------------
Assets: Interest-earning assets: Loans $12,677,899 $542,421 5.67%
Investment securities (b) 2,860,501 123,394 5.62 Loans held for
sale 35,181 1,546 5.86 Federal Home Loan and Federal Reserve Bank
stock 124,922 4,305 4.60 Short-term investments 4,750 106 2.93
----- --- ---- Total interest-earning assets 15,703,253 671,772
5.65 ------- ---- Noninterest-earning assets 1,538,806 ---------
Total assets $17,242,059 =========== Liabilities and Shareholders'
Equity: Interest-bearing liabilities: Demand deposits $1,480,139 $-
-% Savings, NOW and money market deposit accounts 5,852,690 63,145
1.44 Time deposits 4,744,594 129,883 3.65 --------- ------- ----
Total deposits 12,077,423 193,028 2.13 ---------- ------- ----
Securities sold under agreements to repurchase and other short-term
debt 1,330,197 28,298 2.80 Federal Home Loan Bank advances
1,230,280 30,607 3.27 Long-term debt 658,387 28,968 5.87 -------
------ ---- Total borrowings 3,218,864 87,873 3.60 --------- ------
---- Total interest-bearing liabilities 15,296,287 280,901 2.44
------- ---- Noninterest-bearing liabilities 147,586 ------- Total
liabilities 15,443,907 Noncontrolling interest 9,611 Shareholders'
equity 1,788,575 --------- Total liabilities and shareholders'
equity $17,242,059 =========== 390,871 Less: tax-equivalent
adjustment (11,148) ------- Net interest income $379,723 ========
Interest-rate spread 3.21% ==== Net interest margin 3.28% ==== See
Selected Financial Highlights for footnotes. WEBSTER FINANCIAL
CORPORATION Five Quarter Loan balances (unaudited)
-------------------------------------------------------------------------
Sep. 30, June 30, March 31, (Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Loan Balances (actuals): Continuing Portfolio: Residential
mortgages $2,837,240 $2,875,415 $3,170,908 Consumer 2,863,622
2,910,275 2,979,117 Commercial 1,619,284 1,711,995 1,738,640
Equipment financing 951,500 998,258 1,016,718 Asset based lending
598,641 623,357 659,694 Commercial real estate 2,086,298 2,091,811
2,094,751 Residential development 128,643 143,965 155,544 -------
------- ------- Total continuing 11,085,228 11,355,076 11,815,372
Allowances for loan loss (269,306) (264,159) (226,562) --------
-------- -------- Total continuing, net 10,815,922 11,090,917
11,588,810 ---------- ---------- ---------- Liquidating Portfolio:
NCLC (c) 5,826 6,540 13,174 Consumer 231,305 249,086 266,913
------- ------- ------- Total liquidating portfolio 237,131 255,626
280,087 Allowances for loan loss (57,100) (41,840) (44,367) -------
------- ------- Total liquidating, net 180,031 213,786 235,720
------- ------- ------- Total Loan Balances (actuals) 11,322,359
11,610,702 12,095,459 Allowances for loan loss (326,406) (305,999)
(270,929) -------- -------- -------- Loans (net) $10,995,953
$11,304,703 $11,824,530 =========== =========== =========== Loan
Balances (average): Continuing Portfolio: Residential mortgages
$2,831,440 $3,127,099 $3,092,512 Consumer 2,884,543 2,951,691
3,012,178 Commercial 1,675,289 1,750,996 1,784,062 Equipment
finance 975,552 1,011,999 1,026,322 Asset based lending 622,472
652,197 701,263 Commercial real estate 2,089,643 2,090,615
2,083,861 Residential development 139,040 150,674 158,924 -------
------- ------- Total continuing 11,217,980 11,735,271 11,859,122
Allowances for loan loss (260,472) (248,701) (204,619) --------
-------- -------- Total continuing, net 10,957,508 11,486,570
11,654,503 ---------- ---------- ---------- Liquidating Portfolio:
NCLC (c) 6,414 10,090 15,675 Consumer 240,675 258,001 276,219
------- ------- ------- Total liquidating portfolio 247,089 268,091
291,894 Allowances for loan loss (57,100) (41,840) (44,367) -------
------- ------- Total liquidating, net 189,989 226,251 247,527
------- ------- ------- Total Loan Balances (average) 11,465,068
12,003,362 12,151,016 Allowances for loan loss (317,572) (290,541)
(248,986) -------- -------- -------- Loans (net) $11,147,496
$11,712,821 $11,902,030 =========== =========== =========== Dec.
31, Sept. 30, (Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Loan Balances (actuals): Continuing Portfolio: Residential
mortgages $3,049,706 $3,542,416 Consumer 3,016,524 2,960,491
Commercial 1,797,135 1,803,321 Equipment financing 1,037,077
1,006,238 Asset based lending 752,595 867,510 Commercial real
estate 2,070,641 2,147,617 Residential development 161,533 217,564
------- ------- Total continuing 11,885,211 12,545,157 Allowances
for loan loss (191,426) (161,331) -------- -------- Total
continuing, net 11,693,785 12,383,826 ---------- ----------
Liquidating Portfolio: NCLC (c) 18,735 25,409 Consumer 283,645
295,823 ------- ------- Total liquidating portfolio 302,380 321,232
Allowances for loan loss (43,903) (27,838) ------- ------- Total
liquidating, net 258,477 293,394 ------- ------- Total Loan
Balances (actuals) 12,187,591 12,866,389 Allowances for loan loss
(235,329) (189,169) -------- -------- Loans (net) $11,952,262
$12,677,220 =========== =========== Loan Balances (average):
Continuing Portfolio: Residential mortgages $3,449,202 $3,542,938
Consumer 2,989,393 2,924,446 Commercial 1,811,527 1,796,598
Equipment finance 1,015,340 1,007,465 Asset based lending 842,148
844,518 Commercial real estate 2,182,228 2,120,589 Residential
development 161,533 217,564 ------- ------- Total continuing
12,451,371 12,454,118 Allowances for loan loss (167,230) (162,420)
-------- -------- Total continuing, net 12,284,141 12,291,698
---------- ---------- Liquidating Portfolio: NCLC (c) 24,199 43,777
Consumer 293,964 307,503 ------- ------- Total liquidating
portfolio 318,163 351,280 Allowances for loan loss (43,903)
(27,838) ------- ------- Total liquidating, net 274,260 323,442
------- ------- Total Loan Balances (average) 12,769,534 12,805,398
Allowances for loan loss (211,133) (190,258) -------- --------
Loans (net) $12,558,401 $12,615,140 =========== =========== See
Selected Financial Highlights for footnotes. WEBSTER FINANCIAL
CORPORATION Five Quarter Nonperforming Assets (unaudited)
-------------------------------------------------------------------------
Sept. 30, June 30, March 31, (Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Nonperforming loans: Continuing Portfolio: Residential mortgages
$66,180 $59,775 $55,962 Performing non-accrual residential
mortgages 43,581 33,822 10,849 Commercial 61,746 68,979 65,073
Equipment financing 31,784 35,675 16,056 Asset based lending 5,064
24,456 29,353 Commercial real estate 47,644 16,707 12,604
Residential development 44,821 46,808 54,147 Consumer 33,837 33,816
37,518 Performing non-accrual consumer 6,000 4,534 2,652 -----
----- ----- Nonperforming loans - continuing portfolio 340,657
324,572 284,214 ------- ------- ------- Liquidating Portfolio: NCLC
(c) 4,089 5,628 12,259 Performing non-accrual NCLC 825 - - Consumer
14,030 19,521 19,510 Performing non-accrual consumer 1,475 674 185
----- --- --- Nonperforming loans - liquidating portfolio 20,419
25,823 31,954 ------ ------ ------ Total nonperforming loans
$361,076 $350,395 $316,168 -------- -------- -------- Other real
estate owned and repossessed assets: Continuing Portfolio:
Residential mortgages $2,872 $1,808 $1,399 Commercial 13,225 9,340
10,361 Equipment financing 8,479 10,322 13,352 Asset based lending
- - - Commercial real estate - - - Residential development - - -
Consumer 4,833 5,571 369 ----- ----- --- Total continuing 29,409
27,041 25,481 ------ ------ ------ Liquidating Portfolio: NCLC (c)
3,108 5,836 5,563 Consumer - 931 1,139 --- --- ----- Nonperforming
loans - liquidating portfolio 3,108 6,767 6,702 ----- ----- -----
Total other real estate owned and repossessed assets $32,517
$33,808 $32,183 ------- ------- ------- Total nonperforming assets
$393,593 $384,203 $348,351 ======== ======== ======== Dec. 31,
Sept. 30, (Dollars in thousands) 2008 2008
-------------------------------------------------------------------------
Nonperforming loans: Continuing Portfolio: Residential mortgages
$48,731 $39,445 Performing non-accrual residential mortgages 3,771
- Commercial 32,915 33,842 Equipment financing 13,138 7,462 Asset
based lending 17,072 17,239 Commercial real estate 8,032 8,971
Residential development 48,628 71,065 Consumer 29,627 23,668
Performing non-accrual consumer 312 - --- --- Nonperforming loans -
continuing portfolio 202,226 201,692 ------- ------- Liquidating
Portfolio: NCLC (c) 12,821 14,227 Performing non-accrual NCLC 581 -
Consumer 16,757 10,994 Performing non-accrual consumer 181 - ---
--- Nonperforming loans - liquidating portfolio 30,340 25,221
------ ------ Total nonperforming loans $232,566 $226,913 --------
-------- Other real estate owned and repossessed assets: Continuing
Portfolio: Residential mortgages $1,863 $3,071 Commercial 9,782
1,026 Equipment financing 13,086 12,261 Asset based lending - -
Commercial real estate - - Residential development - - Consumer
1,244 2,835 ----- ----- Total continuing 25,975 19,193 ------
------ Liquidating Portfolio: NCLC (c) 3,519 2,943 Consumer 1,129
626 ----- --- Nonperforming loans - liquidating portfolio 4,648
3,569 ----- ----- Total other real estate owned and repossessed
assets $30,623 $22,762 ------- ------- Total nonperforming assets
$263,189 $249,675 ======== ======== See Selected Financial
Highlights for footnotes. WEBSTER FINANCIAL CORPORATION Five
Quarter Past Due Loans (unaudited)
-------------------------------------------------------------------------
Sept. 30, June 30, March 31, (Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Past due 30-89 days: Accruing loans: Continuing Portfolio:
Residential mortgages $38,927 $39,955 $45,798 Commercial 9,735
8,460 8,033 Equipment financing 10,407 13,464 16,404 Asset based
lending - - 145 Commercial real estate 23,872 19,053 8,373
Residential development 776 3,210 1,004 Consumer 31,178 28,354
33,092 ------ ------ ------ Past Due 30-89 days - continuing
portfolio 114,895 112,496 112,849 ------- ------- -------
Liquidating Portfolio: NCLC (c) 910 1 1 Consumer 11,680 9,880
12,244 ------ ----- ------ Past Due 30-89 days - liquidating
portfolio 12,590 9,881 12,245 ------ ----- ------ Accruing loans
past due 90 days or more: Residential mortgages - - - Commercial
2,685 445 573 Equipment financing - - - Asset based lending - - -
Commercial real estate 206 475 - Residential development - - 150
Consumer - - - --- --- --- Accruing loans past due 90 days or more:
2,891 920 723 ----- --- --- Total past due loans $130,376 $123,297
$125,817 ======== ======== ======== Dec. 31, Sept. 30, (Dollars in
thousands) 2008 2008
-------------------------------------------------------------------------
Past due 30-89 days: Accruing loans: Continuing Portfolio:
Residential mortgages $45,909 $40,209 Commercial 15,817 7,196
Equipment financing 9,860 8,102 Asset based lending 3,676 -
Commercial real estate 7,158 18,241 Residential development 2,096
5,832 Consumer 33,848 23,279 ------ ------ Past Due 30-89 days -
continuing portfolio 118,364 102,859 ------- ------- Liquidating
Portfolio: NCLC (c) 4,487 3,046 Consumer 15,621 15,370 ------
------ Past Due 30-89 days - liquidating portfolio 20,108 18,416
------ ------ Accruing loans past due 90 days or more: Residential
mortgages - - Commercial 459 534 Equipment financing - - Asset
based lending - - Commercial real estate 450 174 Residential
development 201 - Consumer - - --- --- Accruing loans past due 90
days or more: 1,110 708 ----- --- Total past due loans $139,582
$121,983 ======== ======== See Selected Financial Highlights for
footnotes. WEBSTER FINANCIAL CORPORATION Five Quarter Changes in
the Allowance for Credit Losses (unaudited)
-------------------------------------------------------------------------
For the Three Months Ended -------------------------------- Sept.
30, June 30, March 31, (Dollars in thousands) 2009 2009 2009
-------------------------------------------------------------------------
Beginning balance $316,037 $281,729 $245,829 Provision 85,000
85,000 66,000 Charge-offs continuing portfolio: Residential
mortgages 2,721 4,793 2,964 Commercial 13,729 8,983 5,388 Equipment
financing 7,939 6,324 2,236 Asset based lending 15,926 5,297 2,981
Commercial real estate - - - Residential development 3,019 2,350 48
Consumer 10,237 10,242 6,541 ------ ------ ----- Charge-offs
continuing portfolio 53,571 37,989 20,158 Charge-offs liquidating
portfolio: NCLC (c) 135 3,387 2,086 Consumer 13,256 10,825 9,911
------ ------ ----- Charge-offs liquidating portfolio 13,391 14,212
11,997 ------ ------ ------ Total charge-offs 66,962 52,201 32,155
------ ------ ------ Recoveries continuing portfolio: Residential
mortgages 277 115 24 Commercial 435 230 378 Equipment financing 821
203 287 Asset based lending - - 5 Commercial real estate - - -
Residential development - 9 - Consumer 642 702 766 --- --- ---
Recoveries continuing portfolio 2,175 1,259 1,460 ----- ----- -----
Recoveries liquidating portfolio: NCLC (c) 62 825 528 Consumer 132
187 67 --- --- --- Recoveries liquidating portfolio 194 1,012 595
--- ----- --- Total recoveries 2,369 2,271 2,055 ----- ----- -----
Total net charge-offs 64,593 49,930 30,100 ------ ------ ------
Change in unfunded commitments 67 (762) - Ending balance $336,511
$316,037 $281,729 ======== ======== ======== Components: Allowance
for loan losses $326,406 $305,999 $270,929 Reserve for unfunded
credit commitments 10,105 10,038 10,800 ------ ------ ------
Allowance for credit losses $336,511 $316,037 $281,729 ========
======== ======== For the Three Months Ended
-------------------------- Dec. 31, Sept. 30, (Dollars in
thousands) 2008 2008
-------------------------------------------------------------------------
Beginning balance $198,669 $194,368 Provision 100,000 45,500
Charge-offs continuing portfolio: Residential mortgages 3,778 1,623
Commercial 5,416 6,593 Equipment financing 1,222 998 Asset based
lending 176 7,245 Commercial real estate 53 - Residential
development 30,158 161 Consumer 3,887 4,643 ----- ----- Charge-offs
continuing portfolio 44,690 21,263 Charge-offs liquidating
portfolio: NCLC (c) 777 14,025 Consumer 8,779 6,767 ----- -----
Charge-offs liquidating portfolio 9,556 20,792 ----- ------ Total
charge-offs 54,246 42,055 ------ ------ Recoveries continuing
portfolio: Residential mortgages 85 5 Commercial 225 89 Equipment
financing 177 303 Asset based lending 129 61 Commercial real estate
- - Residential development - - Consumer 180 256 --- --- Recoveries
continuing portfolio 796 714 --- --- Recoveries liquidating
portfolio: NCLC (c) 595 151 Consumer 15 (9) --- --- Recoveries
liquidating portfolio 610 142 --- --- Total recoveries 1,406 856
----- --- Total net charge-offs 52,840 41,199 ------ ------ Change
in unfunded commitments - - Ending balance $245,829 $198,669
======== ======== Components: Allowance for loan losses $235,329
$189,169 Reserve for unfunded credit commitments 10,500 9,500
------ ----- Allowance for credit losses $245,829 $198,669 ========
======== See Selected Financial Highlights for footnotes. WEBSTER
FINANCIAL CORPORATION Asset Quality Ratios
-------------------------------------------------------------------------
For the Three Months Ended
--------------------------------------------------- (Dollars in
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, thousands) 2009
2009 2009 2008 2008
-------------------------------------------------------------------------
Total Portfolio --------------- Allowance for loan losses / total
loans 2.88% 2.64% 2.24% 1.93% 1.47% Allowance for credit losses /
total loans 2.97 2.72 2.33 2.02 1.54 Net charge-offs / average
loans (annualized) 2.25 1.66 0.99 1.66 1.29 Nonperforming loans /
total loans 3.19 3.02 2.61 1.91 1.76 Nonperforming assets / total
loans plus OREO 3.47 3.30 2.87 2.15 1.94 Allowance for credit
losses / nonperforming loans 93.20 90.19 89.11 105.70 87.55
Continuing Portfolio -------------------- Allowance for loan losses
/ total loans 2.43% 2.33% 1.92% 1.61% 1.29% Allowance for credit
losses / total loans 2.52 2.41 2.01 1.70 1.36 Net charge-offs /
average loans (annualized) 1.83 1.25 0.63 1.41 0.66 Nonperforming
loans / total loans 3.07 2.86 2.41 1.70 1.61 Nonperforming assets /
total loans plus OREO 3.33 3.09 2.62 1.92 1.76 Allowance for credit
losses / nonperforming loans 82.02 84.48 83.52 102.35 86.09
Liquidating Portfolio --------------------- NCLC (C) --------
Allowance for loan losses / total loans 17.16% 23.00% 30.86% 30.01%
22.85% Net charge- offs / average loans (annualized) 4.55 101.57
39.76 2.99 126.76 Nonperforming loans / total loans 84.35 86.06
93.05 71.53 55.99 Allowance for loan losses / nonperforming loans
20.35 26.72 33.16 41.96 40.8 Consumer -------- Allowance for loan
losses / total loans 24.25% 16.19% 15.10% 13.50% 7.45% Net charge-
offs / average loans (annualized) 21.81 16.49 14.26 11.93 8.81
Nonperforming loans / total loans 6.70 8.11 7.38 5.97 3.72
Allowance for loan losses / nonperforming loans 361.82 199.73
204.63 225.99 200.5 See Selected Financial Highlights for
footnotes. DATASOURCE: Webster Financial Corporation CONTACT:
Media, Ed Steadham, +1-203-578-2287, , or Investor, Terry Mangan,
+1-203-578-2318, Web Site: http://www.websteronline.com/
Copyright