Attached files

file filename
8-K - 8-K - WEBSTER FINANCIAL CORPa8-kq42016earningsrelease.htm


Exhibit 99.1
image0a02.jpg

Media Contact
 
 
  
Investor Contact
Sarah Barr, 203-578-2287
 
 
  
Terry Mangan, 203-578-2318
sbarr@websterbank.com
 
 
  
tmangan@websterbank.com

WEBSTER REPORTS 2016 FOURTH QUARTER EARNINGS

WATERBURY, Conn., January 19, 2017 - Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced earnings applicable to common shareholders of $55.5 million, or $0.60 per diluted share, for the quarter ended December 31, 2016 compared to $49.6 million, or $0.54 per diluted share, for the quarter ended December 31, 2015.

For the full year 2016, net income available to common shareholders was $198.4 million, or $2.16 per diluted share, compared to $195.4 million, or $2.14 per diluted share, for the full year 2015.

I am pleased to report that Webster finished its best year ever with a strong fourth quarter. Record quarterly loan originations of $1.8 billion coupled with a modest increase in the net interest margin contributed to Webster’s 29th consecutive quarter of year-over-year revenue growth and our 18th consecutive quarter of double-digit year-over-year commercial loan growth,” said James C. Smith, chairman and chief executive officer. “Credit quality remains strong with net charge-offs on loans at their lowest level in nearly a decade. Our solid results showcase our sustained progress in executing sound growth strategies that maximize value for our customers and shareholders.”
Highlights for the fourth quarter of 2016 compared to the fourth quarter of 2015:
Revenue of $255.9 million, an increase of 9.8 percent, including record levels of net interest income of $185.3 million and non-interest income of $70.6 million, which includes a one-time gain on the sale of an asset.
Loan growth of $1.4 billion, or 8.6 percent, with growth of $1.2 billion in commercial and commercial real estate loans.
Deposit growth of $1.4 billion, or 7.5 percent, with growth of $1.0 billion in transactional and health savings account deposits.
Net charge-off ratio of 0.15 percent.
Annualized return on average tangible common shareholders’ equity (non-GAAP) of 12.31 percent.
“Our focus remains the same,” said Glenn MacInnes, executive vice president and chief financial officer. “We continue to have a disciplined approach in investing in our business to achieve consistent long-term growth and increase shareholder value.”






Quarterly net interest income compared to the fourth quarter of 2015:

Net interest income was $185.3 million compared to $173.3 million.
Net interest margin was 3.11 percent compared to 3.08 percent. The yield on interest-earning assets increased by 3 basis points, while the cost of funds remained flat.
Average interest-earning assets totaled $24.1 billion and grew by $1.4 billion, or 6.3 percent.
Average loans totaled $16.8 billion and grew by $1.3 billion, or 8.4 percent.
Quarterly provision for loan losses:

The Company recorded a provision for loan losses of $12.5 million compared to $14.3 million in the prior quarter and $13.8 million a year ago.
Net charge-offs were $6.1 million compared to $6.8 million in the prior quarter and $11.8 million a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.15 percent compared to 0.16 percent in the prior quarter and 0.31 percent a year ago.
The allowance for loan losses represented 1.14 percent of total loans compared to 1.13 percent at September 30, 2016 and 1.12 percent at December 31, 2015. The allowance for loan losses represented 145 percent of nonperforming loans compared to 147 percent at September 30, 2016 and 125 percent at December 31, 2015.
Quarterly non-interest income compared to the fourth quarter of 2015:

Total non-interest income was $70.6 million compared to $59.7 million, an increase of $10.9 million. The increase reflects income from a one-time gain on the sale of an asset of $7.3 million and increases of $1.5 million in deposit service fees and $1.2 million in loan fees.
Quarterly non-interest expense compared to the fourth quarter of 2015:

Total non-interest expense was $161.9 million compared to $143.8 million, an increase of $18.1 million. The increase reflects added expenses of $4.8 million related to the Boston expansion, $3.2 million related to direct expense growth at HSA Bank, $2.3 million in occupancy expense, $1.6 million in marketing expense, and $1.4 million in technology and equipment. The remaining increase reflects compensation expense primarily related to variable deferred compensation driven by Webster’s higher share price.






Quarterly income taxes compared to the fourth quarter of 2015:

Income tax expense was $23.8 million compared to $23.6 million, and the effective tax rate was 29.3 percent compared to 31.3 percent. A portion of the one-time gain noted above is treated as capital for tax purposes which allowed the Company to recognize as a benefit in the quarter a reduction in the valuation allowance on its deferred tax assets applicable to capital losses.
Excluding the tax effects associated with the one-time asset gain noted above, the effective tax rate would have been 32.2 percent in the quarter.
Investment securities:

Total investment securities were $7.2 billion compared to $7.1 billion at September 30, 2016 and $6.9 billion at December 31, 2015. The carrying value of the available-for-sale portfolio included $24.7 million of net unrealized losses compared to $21.4 million of net unrealized gains at September 30, 2016 and $10.3 million of net unrealized losses at December 31, 2015, while the carrying value of the held-to-maturity portfolio does not reflect $35.5 million of net unrealized losses compared to $87.6 million of net unrealized gains at September 30, 2016 and $38.5 million of net unrealized gains at December 31, 2015.
Loans:

Total loans were $17.0 billion compared to $16.6 billion at September 30, 2016 and $15.7 billion at December 31, 2015. Compared to September 30, 2016, commercial, commercial real estate, and residential mortgage loans increased by $175.1 million, $230.3 million, and $20.6 million, respectively, while consumer loans decreased by $22.8 million.
Compared to a year ago, commercial, commercial real estate, and residential mortgage loans increased by $660.0 million, $519.2 million, and $193.7 million, respectively, while consumer loans decreased by $18.1 million.
Loan originations for portfolio were $1.686 billion compared to $1.204 billion in the prior quarter and $1.534 billion a year ago. In addition, $132 million of residential loans were originated for sale in the quarter compared to $138 million in the prior quarter and $98 million a year ago.
Asset quality:

Total nonperforming loans were $134.0 million, or 0.79 percent of total loans, compared to $128.2 million, or 0.77 percent, at September 30, 2016 and $139.9 million, or 0.89 percent, at December 31, 2015. Total paying nonperforming loans were $38.4 million compared to $34.5 million at September 30, 2016 and $48.7 million at December 31, 2015.






Past due loans were $42.0 million compared to $39.2 million at September 30, 2016 and $39.2 million at December 31, 2015. Included in past due loans are loans past due 90 days or more and still accruing, which decreased $4.7 million from the prior quarter and $1.3 million from the prior year.
Deposits and borrowings:

Total deposits were $19.3 billion compared to $19.2 billion at September 30, 2016 and $18.0 billion at December 31, 2015. Core deposits to total deposits were 89.5 percent compared to 89.5 percent at September 30, 2016 and 88.4 percent at December 31, 2015. Loans to deposits were 88.2 percent compared to 86.6 percent at September 30, 2016 and 87.3 percent at December 31, 2015.
Total borrowings were $4.0 billion compared to $3.6 billion at September 30, 2016 and $4.0 billion at December 31, 2015.
Capital:

The return on average tangible common shareholders’ equity and the return on average common shareholders’ equity were 12.31 percent and 9.26 percent, respectively, compared to 11.82 percent and 8.67 percent, respectively, in the fourth quarter of 2015.
The tangible equity and tangible common equity ratios were 7.67 percent and 7.19 percent, respectively, compared to 7.63 percent and 7.12 percent, respectively, at December 31, 2015. The common equity tier 1 risk-based capital ratio was 10.51 percent compared to 10.70 percent at December 31, 2015.
Book value and tangible book value per common share were $26.17 and $19.94, respectively, compared to $24.99 and $18.69, respectively, at December 31, 2015.

***






Webster Financial Corporation is the holding company for Webster Bank, National Association. With $26.1 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 175 banking centers and 350 ATMs. Webster also provides mobile and Internet banking. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides health savings account trustee and administrative services. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
Conference Call

A conference call covering Webster’s 2016 fourth quarter earnings announcement will be held today, Thursday, January 19, 2017 at 9:00 a.m. (Eastern) and may be heard through Webster’s Investor Relations website at www.wbst.com, or in listen-only mode by calling 877-407-8289 or 201-689-8341 internationally. The call will be archived on the website and available for future retrieval.
Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives, and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; (2) volatility and disruption in national and international financial markets; (3) government intervention in the U.S. financial system; (4) changes in the level of nonperforming assets and charge-offs; (5) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (6) adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (7) inflation, interest rate, securities market, and monetary fluctuations; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by customers; (9) changes in consumer spending, borrowings, and savings habits; (10) technological changes and cyber-security matters; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, financial holding companies, and other financial services providers; (13) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; (15) the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (16) our success at managing the risks involved in the foregoing items and (17) the other factors that are described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the headings “Risk Factors” and ‘Management Discussion and Analysis of Financial Condition and Results of Operation.” Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ





may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying selected financial highlights table.

We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. 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.
---30---







WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
 
 
 
 
 
 
 
 
 
 
At or for the Three Months Ended
(In thousands, except per share data)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
 
 
 
 
 
 
 
 
 
 
Income and performance ratios:
 
 
 
 
 
 
 
 
 
Net income
$
57,660

 
$
51,817

 
$
50,603

 
$
47,047

 
$
51,812

Earnings applicable to common shareholders
55,501

 
49,634

 
48,398

 
44,921

 
49,646

Earnings per diluted common share
0.60

 
0.54

 
0.53

 
0.49

 
0.54

Return on average assets
0.89
%
 
0.82
%
 
0.81
%
 
0.76
%
 
0.85
%
Return on average tangible common shareholders' equity (non-GAAP)
12.31

 
11.24

 
11.25

 
10.63

 
11.82

Return on average common shareholders’ equity
9.26

 
8.36

 
8.31

 
7.80

 
8.67

Non-interest income as a percentage of total revenue
27.60

 
26.93

 
26.89

 
26.15

 
25.61

 
 
 
 
 
 
 
 
 
 
Asset quality:
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
194,320

 
$
187,925

 
$
180,428

 
$
174,201

 
$
174,990

Nonperforming assets
137,946

 
132,350

 
137,347

 
145,787

 
144,970

Allowance for loan and lease losses / total loans and leases
1.14
%
 
1.13
%
 
1.11
%
 
1.10
%
 
1.12
%
Net charge-offs / average loans and leases (annualized)
0.15

 
0.16

 
0.19

 
0.41

 
0.31

Nonperforming loans and leases / total loans and leases
0.79

 
0.77

 
0.82

 
0.89

 
0.89

Nonperforming assets / total loans and leases plus OREO
0.81

 
0.80

 
0.84

 
0.92

 
0.92

Allowance for loan and lease losses / nonperforming loans and leases
144.98

 
146.57

 
135.75

 
123.79

 
125.05

 
 
 
 
 
 
 
 
 
 
Other ratios:
 
 
 
 
 
 
 
 
 
Tangible equity (non-GAAP)
7.67
%
 
7.74
%
 
7.75
%
 
7.63
%
 
7.63
%
Tangible common equity (non-GAAP)
7.19

 
7.25

 
7.25

 
7.13

 
7.12

Tier 1 risk-based capital (a)
11.18

 
11.16

 
11.19

 
11.33

 
11.53

Total risk-based capital (a)
12.67

 
12.64

 
12.66

 
12.80

 
12.91

Common equity tier 1 risk-based capital (a)
10.51

 
10.48

 
10.50

 
10.61

 
10.70

Shareholders’ equity / total assets
9.70

 
9.80

 
9.86

 
9.77

 
9.80

Net interest margin
3.11

 
3.10

 
3.08

 
3.11

 
3.08

Efficiency ratio (non-GAAP)
63.13

 
61.43

 
61.47

 
62.00

 
60.30

 
 
 
 
 
 
 
 
 
 
Equity and share related:
 
 
 
 
 
 
 
 
 
Common equity
$
2,404,302

 
$
2,388,919

 
$
2,354,256

 
$
2,312,076

 
$
2,291,250

Book value per common share
26.17

 
26.06

 
25.68

 
25.24

 
24.99

Tangible book value per common share (non-GAAP)
19.94

 
19.80

 
19.41

 
18.95

 
18.69

Common stock closing price
54.28

 
38.01

 
33.95

 
35.90

 
37.19

Dividends declared per common share
0.25

 
0.25

 
0.25

 
0.23

 
0.23

 
 
 
 
 
 
 
 
 
 
Common shares issued and outstanding
91,868

 
91,687

 
91,677

 
91,617

 
91,677

Weighted-average common shares outstanding - Basic
91,572

 
91,365

 
91,244

 
91,328

 
91,419

Weighted-average common shares outstanding - Diluted
92,099

 
91,857

 
91,745

 
91,809

 
91,956

 
(a) Presented as projected for December 31, 2016 and actual for the remaining periods.






WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
 
 
 
 
 
(In thousands)
December 31,
2016
 
September 30,
2016
 
December 31, 2015 (a) (b)
Assets:
 
 
 
 
 
Cash and due from banks
$
190,663

 
$
199,989

 
$
199,693

Interest-bearing deposits
29,461

 
21,938

 
155,907

Securities:
 
 
 
 
 
Available for sale
2,991,091

 
3,040,111

 
2,984,631

Held to maturity
4,160,658

 
4,022,332

 
3,923,052

Total securities
7,151,749

 
7,062,443

 
6,907,683

Loans held for sale
67,577

 
66,578

 
37,091

Loans and Leases:
 
 
 
 
 
Commercial
5,576,560

 
5,401,498

 
4,916,525

Commercial real estate
4,510,846

 
4,280,513

 
3,991,649

Residential mortgages
4,254,682

 
4,234,047

 
4,061,001

Consumer
2,684,500

 
2,707,343

 
2,702,560

Total loans and leases
17,026,588

 
16,623,401

 
15,671,735

Allowance for loan and lease losses
(194,320
)
 
(187,925
)
 
(174,990
)
Loans and leases, net
16,832,268

 
16,435,476

 
15,496,745

Federal Home Loan Bank and Federal Reserve Bank stock
194,646

 
185,104

 
188,347

Premises and equipment, net
137,413

 
137,067

 
129,426

Goodwill and other intangible assets, net
572,047

 
573,129

 
577,699

Cash surrender value of life insurance policies
517,852

 
514,153

 
503,093

Deferred tax asset, net
84,391

 
73,228

 
101,578

Accrued interest receivable and other assets
286,597

 
364,512

 
343,856

Total Assets
$
26,064,664

 
$
25,633,617

 
$
24,641,118

 
 
 
 
 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
Deposits:
 
 
 
 
 
Demand
$
4,021,061

 
$
3,993,750

 
$
3,713,063

Interest-bearing checking
2,528,274

 
2,429,222

 
2,369,971

Health savings accounts
4,362,503

 
4,187,823

 
3,802,313

Money market
2,047,121

 
2,342,236

 
1,933,460

Savings
4,320,090

 
4,226,934

 
4,047,817

Certificates of deposit
1,724,906

 
1,721,056

 
1,762,847

Brokered certificates of deposit
299,902

 
299,887

 
323,307

Total deposits
19,303,857

 
19,200,908

 
17,952,778

Securities sold under agreements to repurchase and other borrowings
949,526

 
800,705

 
1,151,400

Federal Home Loan Bank advances
2,842,908

 
2,587,983

 
2,664,139

Long-term debt
225,514

 
225,450

 
225,260

Accrued expenses and other liabilities
215,847

 
306,942

 
233,581

Total liabilities
23,537,652

 
23,121,988

 
22,227,158

Preferred stock
122,710

 
122,710

 
122,710

Common shareholders' equity
2,404,302

 
2,388,919

 
2,291,250

Total shareholders’ equity
2,527,012

 
2,511,629

 
2,413,960

Total Liabilities and Shareholders' Equity
$
26,064,664

 
$
25,633,617

 
$
24,641,118

 
(a) A policy election was made effective in the first quarter 2016 to account for loans originated for sale under the fair value option of ASU 820. The loans held for sale balance does not reflect this policy at December 31, 2015.
(b) Certain previously reported information has been modified to reflect immaterial corrections to HSA Bank results.






WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(In thousands, except per share data)
2016
 
2015
 
2016
 
2015 (a)
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
161,978

 
$
145,504

 
$
621,028

 
$
552,441

Interest and dividends on securities
49,011

 
52,365

 
199,436

 
206,009

Loans held for sale
443

 
291

 
1,449

 
1,590

Total interest income
211,432

 
198,160

 
821,913

 
760,040

Interest expense:
 
 
 
 
 
 
 
Deposits
12,591

 
11,476

 
49,858

 
46,031

Borrowings
13,582

 
13,344

 
53,542

 
49,384

Total interest expense
26,173

 
24,820

 
103,400

 
95,415

Net interest income
185,259

 
173,340

 
718,513

 
664,625

Provision for loan and lease losses
12,500

 
13,800

 
56,350

 
49,300

Net interest income after provision for loan and lease losses
172,759

 
159,540

 
662,163

 
615,325

Non-interest income:
 
 
 
 
 
 
 
Deposit service fees
35,132

 
33,675

 
140,685

 
135,057

Loan and lease related fees
7,065

 
5,881

 
30,113

 
25,594

Wealth and investment services
6,970

 
8,052

 
28,962

 
32,486

Mortgage banking activities
2,253

 
2,276

 
11,103

 
7,795

Increase in cash surrender value of life insurance policies
3,699

 
3,383

 
14,759

 
13,020

Gain on investment securities, net

 
80

 
414

 
609

Other income
15,498

 
6,360

 
38,591

 
23,326

 
70,617

 
59,707

 
264,627

 
237,887

Impairment loss on securities recognized in earnings

 
(28
)
 
(149
)
 
(110
)
Total non-interest income
70,617

 
59,679

 
264,478

 
237,777

Non-interest expense:
 
 
 
 
 
 
 
Compensation and benefits
88,038

 
79,232

 
331,726

 
297,517

Occupancy
16,195

 
11,573

 
60,294

 
48,836

Technology and equipment
20,815

 
19,834

 
79,882

 
80,813

Marketing
5,488

 
3,533

 
19,703

 
16,053

Professional and outside services
3,441

 
2,932

 
14,801

 
11,156

Intangible assets amortization
1,082

 
1,588

 
5,652

 
6,340

Loan workout expenses
378

 
775

 
3,006

 
3,173

Deposit insurance
6,410

 
6,242

 
26,006

 
24,042

Other expenses
20,024

 
18,071

 
82,121

 
67,411

Total non-interest expense
161,871

 
143,780

 
623,191

 
555,341

Income before income taxes
81,505

 
75,439

 
303,450

 
297,761

Income tax expense
23,845

 
23,627

 
96,323

 
93,032

Net income
57,660

 
51,812

 
207,127

 
204,729

Preferred stock dividends and other
(2,159
)
 
(2,166
)
 
(8,704
)
 
(9,368
)
Earnings applicable to common shareholders
$
55,501

 
$
49,646

 
$
198,423

 
$
195,361

 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - Diluted
92,099

 
91,956

 
91,856

 
91,533

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
Basic
$
0.61

 
$
0.54

 
$
2.17

 
$
2.16

Diluted
0.60

 
0.54

 
2.16

 
2.14

 
 
 
 
 
 
 
 
(a) Certain previously reported information has been modified to reflect immaterial corrections to HSA Bank results.






WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
(In thousands, except per share data)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Interest income:
 
 
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
161,978

 
$
157,071

 
$
152,171

 
$
149,808

 
$
145,504

Interest and dividends on securities
49,011

 
48,204

 
49,967

 
52,254

 
52,365

Loans held for sale
443

 
440

 
293

 
273

 
291

Total interest income
211,432

 
205,715

 
202,431

 
202,335

 
198,160

Interest expense:
 
 
 
 
 
 
 
 
 
Deposits
12,591

 
12,594

 
12,374

 
12,299

 
11,476

Borrowings
13,582

 
12,924

 
13,152

 
13,884

 
13,344

Total interest expense
26,173

 
25,518

 
25,526

 
26,183

 
24,820

Net interest income
185,259

 
180,197

 
176,905

 
176,152

 
173,340

Provision for loan and lease losses
12,500

 
14,250

 
14,000

 
15,600

 
13,800

Net interest income after provision for loan and lease losses
172,759

 
165,947

 
162,905

 
160,552

 
159,540

Non-interest income:
 
 
 
 
 
 
 
 
 
Deposit service fees
35,132

 
35,734

 
34,894

 
34,925

 
33,675

Loan and lease related fees
7,065

 
10,299

 
7,074

 
5,675

 
5,881

Wealth and investment services
6,970

 
7,593

 
7,204

 
7,195

 
8,052

Mortgage banking activities
2,253

 
3,276

 
2,945

 
2,629

 
2,276

Increase in cash surrender value of life insurance policies
3,699

 
3,743

 
3,664

 
3,653

 
3,383

Gain on investment securities, net

 

 
94

 
320

 
80

Other income
15,498

 
5,767

 
9,200

 
8,126

 
6,360

 
70,617

 
66,412

 
65,075

 
62,523

 
59,707

Impairment loss on securities recognized in earnings

 

 

 
(149
)
 
(28
)
Total non-interest income
70,617

 
66,412

 
65,075

 
62,374

 
59,679

Non-interest expense:
 
 
 
 
 
 
 
 
 
Compensation and benefits
88,038

 
83,148

 
80,231

 
80,309

 
79,232

Occupancy
16,195

 
15,004

 
14,842

 
14,253

 
11,573

Technology and equipment
20,815

 
19,753

 
19,376

 
19,938

 
19,834

Marketing
5,488

 
4,622

 
4,669

 
4,924

 
3,533

Professional and outside services
3,441

 
4,795

 
3,754

 
2,811

 
2,932

Intangible assets amortization
1,082

 
1,493

 
1,523

 
1,554

 
1,588

Loan workout expenses
378

 
1,133

 
530

 
965

 
775

Deposit insurance
6,410

 
6,177

 
6,633

 
6,786

 
6,242

Other expenses
20,024

 
19,972

 
21,220

 
20,905

 
18,071

Total non-interest expense
161,871

 
156,097

 
152,778

 
152,445

 
143,780

Income before income taxes
81,505

 
76,262

 
75,202

 
70,481

 
75,439

Income tax expense
23,845

 
24,445

 
24,599

 
23,434

 
23,627

Net income
57,660

 
51,817

 
50,603

 
47,047

 
51,812

Preferred stock dividends and other
(2,159
)
 
(2,183
)
 
(2,205
)
 
(2,126
)
 
(2,166
)
Earnings applicable to common shareholders
$
55,501

 
$
49,634

 
$
48,398

 
$
44,921

 
$
49,646

 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - Diluted
92,099

 
91,857

 
91,745

 
91,809

 
91,956

 
 
 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
 
 
Basic
$
0.61

 
$
0.54

 
$
0.53

 
$
0.49

 
$
0.54

Diluted
0.60

 
0.54

 
0.53

 
0.49

 
0.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
 
Three Months Ended December 31,
 
 
 
2016
 
 
 
 
 
2015
 
 
(Dollars in thousands)
Average
balance
 
Interest
 
Yield/rate
 
Average
balance
 
Interest
 
Yield/rate
Assets:
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
$
16,755,408

 
$
162,901

 
3.84
%
 
$
15,452,576

 
$
146,091

 
3.73
%
Securities (a)
7,058,135

 
50,187

 
2.85

 
6,930,635

 
52,591

 
3.04

Federal Home Loan and Federal Reserve Bank stock
189,338

 
1,724

 
3.62

 
186,367

 
1,862

 
3.96

Interest-bearing deposits
57,912

 
79

 
0.53

 
87,019

 
63

 
0.28

Loans held for sale
55,938

 
443

 
3.16

 
33,021

 
291

 
3.53

Total interest-earning assets
24,116,731

 
$
215,334

 
3.54
%
 
22,689,618

 
$
200,898

 
3.51
%
Non-interest-earning assets (b)
1,708,317

 
 
 
 
 
1,674,978

 
 
 
 
Total Assets
$
25,825,048

 
 
 
 
 
$
24,364,596

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
4,005,076

 
$

 
%
 
$
3,693,704

 
$

 
%
Savings, interest checking, and money market deposits
13,257,671

 
6,850

 
0.21

 
12,072,461

 
5,686

 
0.19

Certificates of deposit
2,026,121

 
5,741

 
1.13

 
2,066,989

 
5,790

 
1.11

Total deposits
19,288,868

 
12,591

 
0.26

 
17,833,154

 
11,476

 
0.26

 
 
 
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase and other borrowings
960,960

 
3,529

 
1.44

 
1,132,700

 
4,150

 
1.43

Federal Home Loan Bank advances
2,631,478

 
7,516

 
1.12

 
2,566,447

 
6,759

 
1.03

Long-term debt
225,478

 
2,537

 
4.50

 
226,337

 
2,435

 
4.30

Total borrowings
3,817,916

 
13,582

 
1.40

 
3,925,484

 
13,344

 
1.34

Total interest-bearing liabilities
23,106,784

 
$
26,173

 
0.45
%
 
21,758,638

 
$
24,820

 
0.45
%
Non-interest-bearing liabilities (b)
192,165

 
 
 
 
 
185,366

 
 
 
 
Total liabilities
23,298,949

 
 
 
 
 
21,944,004

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
122,710

 
 
 
 
 
122,710

 
 
 
 
Common shareholders' equity
2,403,389

 
 
 
 
 
2,297,882

 
 
 
 
Total shareholders' equity (b)
2,526,099

 
 
 
 
 
2,420,592

 
 
 
 
Total Liabilities and Shareholders' Equity
$
25,825,048

 
 
 
 
 
$
24,364,596

 
 
 
 
Tax-equivalent net interest income
 
 
189,161

 
 
 
 
 
176,078

 
 
Less: tax-equivalent adjustments
 
 
(3,902
)
 
 
 
 
 
(2,738
)
 
 
Net interest income
 
 
$
185,259

 
 
 
 
 
$
173,340

 
 
Net interest margin
 
 
 
 
3.11
%
 
 
 
 
 
3.08
%
 
(a) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance.
(b) Previously reported 2015 average balance has been modified to reflect immaterial corrections, for cash collateral related to derivatives, and to HSA Bank results.
 






WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
 
Twelve Months Ended December 31,
 
 
 
2016
 
 
 
 
 
2015
 
 
(Dollars in thousands)
Average
balance
 
Interest
 
Yield/rate
 
Average
balance
 
Interest
 
Yield/rate
Assets:
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
$
16,266,101

 
$
624,300

 
3.84
%
 
$
14,746,168

 
$
554,632

 
3.76
%
Securities (a)
6,910,649

 
203,467

 
2.95

 
6,846,297

 
207,675

 
3.04

Federal Home Loan and Federal Reserve Bank stock
188,854

 
6,039

 
3.20

 
188,631

 
6,479

 
3.43

Interest-bearing deposits
57,747

 
295

 
0.51

 
107,569

 
281

 
0.26

Loans held for sale
44,560

 
1,449

 
3.25

 
41,101

 
1,590

 
3.87

Total interest-earning assets
23,467,911

 
$
835,550

 
3.56
%
 
21,929,766

 
$
770,657

 
3.52
%
Non-interest-earning assets (b)
1,753,316

 
 
 
 
 
1,625,196

 
 
 
 
Total Assets
$
25,221,227

 
 
 
 
 
$
23,554,962

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
3,853,700

 
$

 
%
 
$
3,564,751

 
$

 
%
Savings, interest checking, and money market deposits
13,072,577

 
27,331

 
0.21

 
11,846,049

 
21,472

 
0.18

Certificates of deposit
2,027,029

 
22,527

 
1.11

 
2,138,778

 
24,559

 
1.15

Total deposits
18,953,306

 
49,858

 
0.26

 
17,549,578

 
46,031

 
0.26

 
 
 
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase and other borrowings
947,858

 
14,528

 
1.53

 
1,144,963

 
16,861

 
1.47

Federal Home Loan Bank advances
2,413,309

 
29,033

 
1.20

 
2,084,496

 
22,858

 
1.10

Long-term debt
225,607

 
9,981

 
4.42

 
226,292

 
9,665

 
4.27

Total borrowings
3,586,774

 
53,542

 
1.49

 
3,455,751

 
49,384

 
1.43

Total interest-bearing liabilities
22,540,080

 
$
103,400

 
0.46
%
 
21,005,329

 
$
95,415

 
0.45
%
Non-interest-bearing liabilities (b)
199,730

 
 
 
 
 
162,347

 
 
 
 
Total liabilities
22,739,810

 
 
 
 
 
21,167,676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
122,710

 
 
 
 
 
134,682

 
 
 
 
Common shareholders' equity
2,358,707

 
 
 
 
 
2,252,604

 
 
 
 
Total shareholders' equity (b)
2,481,417

 
 
 
 
 
2,387,286

 
 
 
 
Total Liabilities and Shareholders' Equity
$
25,221,227

 
 
 
 
 
$
23,554,962

 
 
 
 
Tax-equivalent net interest income
 
 
732,150

 
 
 
 
 
675,242

 
 
Less: tax-equivalent adjustments
 
 
(13,637
)
 
 
 
 
 
(10,617
)
 
 
Net interest income
 
 
$
718,513

 
 
 
 
 
$
664,625

 
 
Net interest margin
 
 
 
 
3.12
%
 
 
 
 
 
3.08
%
 
(a) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance.
(b) Previously reported 2015 average balance has been modified to reflect immaterial corrections, for cash collateral related to derivatives, and to HSA Bank results.
 






WEBSTER FINANCIAL CORPORATION Five Quarter Loan and Lease Balances (unaudited)
 
 
 
 
 
 
 
 
(Dollars in thousands)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Loan and Lease Balances (actuals):
 
 
 
 
 
 
 
 
 
Continuing Portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
$
4,135,625

 
$
3,976,931

 
$
3,798,436

 
$
3,607,176

 
$
3,562,784

Equipment financing
635,629

 
621,696

 
618,343

 
596,572

 
600,526

Asset-based lending
805,306

 
802,871

 
779,046

 
771,584

 
753,215

Commercial real estate
4,510,846

 
4,280,513

 
4,191,087

 
4,046,911

 
3,991,649

Residential mortgages
4,254,682

 
4,234,047

 
4,156,665

 
4,109,243

 
4,061,001

Consumer
2,619,525

 
2,637,773

 
2,655,504

 
2,649,644

 
2,622,998

Total continuing portfolio
16,961,613

 
16,553,831

 
16,199,081

 
15,781,130

 
15,592,173

Allowance for loan and lease losses
(189,238
)
 
(182,472
)
 
(174,693
)
 
(167,769
)
 
(167,626
)
Total continuing portfolio, net
16,772,375

 
16,371,359

 
16,024,388

 
15,613,361

 
15,424,547

Liquidating Portfolio:
 
 
 
 
 
 
 
 
 
Consumer
64,975

 
69,570

 
72,948

 
77,225

 
79,562

Allowance for loan and lease losses
(5,082
)
 
(5,453
)
 
(5,735
)
 
(6,432
)
 
(7,364
)
Total liquidating portfolio, net
59,893

 
64,117

 
67,213

 
70,793

 
72,198

Total Loan and Lease Balances (actuals)
17,026,588

 
16,623,401

 
16,272,029

 
15,858,355

 
15,671,735

Allowance for loan and lease losses
(194,320
)
 
(187,925
)
 
(180,428
)
 
(174,201
)
 
(174,990
)
Loans and Leases, net
$
16,832,268

 
$
16,435,476

 
$
16,091,601

 
$
15,684,154

 
$
15,496,745

 
 
 
 
 
 
 
 
 
 
Loan and Lease Balances (average):
 
 
 
 
 
 
 
 
 
Continuing Portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
$
4,053,728

 
$
3,921,609

 
$
3,726,394

 
$
3,605,483

 
$
3,482,862

Equipment financing
630,546

 
615,473

 
607,259

 
600,123

 
570,686

Asset-based lending
780,587

 
744,319

 
765,605

 
750,328

 
721,662

Commercial real estate
4,343,949

 
4,224,602

 
4,099,855

 
4,019,260

 
3,955,012

Residential mortgages
4,252,106

 
4,200,357

 
4,137,879

 
4,101,396

 
4,039,341

Consumer
2,626,630

 
2,645,944

 
2,667,028

 
2,643,792

 
2,601,955

Total continuing portfolio
16,687,546

 
16,352,304

 
16,004,020

 
15,720,382

 
15,371,518

Allowance for loan and lease losses
(187,483
)
 
(180,433
)
 
(175,100
)
 
(173,479
)
 
(170,724
)
Total continuing portfolio, net
16,500,063

 
16,171,871

 
15,828,920

 
15,546,903

 
15,200,794

Liquidating Portfolio:
 
 
 
 
 
 
 
 
 
Consumer
67,862

 
71,338

 
75,328

 
78,515

 
81,058

Allowance for loan and lease losses
(5,082
)
 
(5,453
)
 
(5,735
)
 
(6,432
)
 
(7,364
)
Total liquidating portfolio, net
62,780

 
65,885

 
69,593

 
72,083

 
73,694

Total Loan and Lease Balances (average)
16,755,408

 
16,423,642

 
16,079,348

 
15,798,897

 
15,452,576

Allowance for loan and lease losses
(192,565
)
 
(185,886
)
 
(180,835
)
 
(179,911
)
 
(178,088
)
Loans and Leases, net
$
16,562,843

 
$
16,237,756

 
$
15,898,513

 
$
15,618,986

 
$
15,274,488







WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
Continuing Portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
$
38,550

 
$
27,398

 
$
28,700

 
$
32,517

 
$
27,086

Equipment financing
225

 
202

 
480

 
868

 
706

Asset-based lending

 

 

 

 

Commercial real estate
10,521

 
14,379

 
13,923

 
15,381

 
20,211

Residential mortgages
47,201

 
49,117

 
52,437

 
53,700

 
54,101

Consumer
34,655

 
34,294

 
34,016

 
34,581

 
33,972

Nonperforming loans and leases - continuing portfolio
131,152

 
125,390

 
129,556

 
137,047

 
136,076

Liquidating Portfolio:
 
 
 
 
 
 
 
 
 
Consumer
2,883

 
2,828

 
3,356

 
3,675

 
3,865

Total nonperforming loans and leases
$
134,035

 
$
128,218

 
$
132,912

 
$
140,722

 
$
139,941

 
 
 
 
 
 
 
 
 
 
Other real estate owned and repossessed assets:
 
 
 
 
 
 
 
 
 
Continuing Portfolio:
 
 
 
 
 
 
 
 
 
Commercial
$

 
$
308

 
$

 
$

 
$

Repossessed equipment

 
70

 
220

 
342

 

Residential
2,625

 
2,987

 
3,395

 
3,329

 
3,788

Consumer
1,286

 
767

 
820

 
1,394

 
1,241

Total other real estate owned and repossessed assets
$
3,911

 
$
4,132

 
$
4,435

 
$
5,065

 
$
5,029

Total nonperforming assets
$
137,946

 
$
132,350

 
$
137,347

 
$
145,787

 
$
144,970







WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans and Leases (unaudited)
 
 
 
 
 
 
 
 
(Dollars in thousands)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Past due 30-89 days:
 
 
 
 
 
 
 
 
 
Continuing Portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
$
1,949

 
$
2,522

 
$
2,050

 
$
7,265

 
$
4,052

Equipment financing
1,596

 
3,477

 
404

 
594

 
602

Asset-based lending

 

 

 

 

Commercial real estate
8,173

 
1,229

 
3,017

 
20,730

 
2,250

Residential mortgages
11,202

 
11,081

 
9,632

 
10,456

 
15,032

Consumer
17,199

 
14,034

 
12,541

 
12,414

 
14,225

Past due 30-89 days - continuing portfolio
40,119

 
32,343

 
27,644

 
51,459

 
36,161

Liquidating Portfolio:
 
 
 
 
 
 
 
 
 
Consumer
1,094

 
1,415

 
1,304

 
819

 
1,036

Total past due 30-89 days
41,213

 
33,758

 
28,948

 
52,278

 
37,197

Past due 90 days or more and accruing
749

 
5,459

 
5,738

 
3,391

 
2,051

Total past due loans and leases
$
41,962

 
$
39,217

 
$
34,686

 
$
55,669

 
$
39,248

 





WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Loan and Lease Losses (unaudited)
 
 
 
 
 
 
For the Three Months Ended
(Dollars in thousands)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Beginning balance
$
187,925

 
$
180,428

 
$
174,201

 
$
174,990

 
$
172,992

Provision
12,500

 
14,250

 
14,000

 
15,600

 
13,800

Charge-offs continuing portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
1,067

 
2,561

 
3,525

 
11,208

 
6,522

Equipment financing
44

 
300

 
70

 
151

 
244

Asset-based lending

 

 

 

 

Commercial real estate
161

 

 
995

 
1,526

 
1,988

Residential mortgages
1,099

 
1,304

 
638

 
1,594

 
1,504

Consumer
6,103

 
5,172

 
4,193

 
4,101

 
4,379

Charge-offs continuing portfolio
8,474

 
9,337

 
9,421

 
18,580

 
14,637

Charge-offs liquidating portfolio:
 
 
 
 
 
 
 
 
 
NCLC

 

 

 

 

Consumer
330

 
87

 
363

 
320

 
320

Charge-offs liquidating portfolio
330

 
87

 
363

 
320

 
320

Total charge-offs
8,804

 
9,424

 
9,784

 
18,900

 
14,957

Recoveries continuing portfolio:
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
439

 
370

 
315

 
455

 
441

Equipment financing
95

 
240

 
156

 
45

 
1,083

Asset-based lending
44

 

 
1

 
2

 
38

Commercial real estate
151

 
194

 
212

 
74

 
325

Residential mortgages
323

 
534

 
133

 
720

 
115

Consumer
1,063

 
963

 
845

 
905

 
948

Recoveries continuing portfolio
2,115

 
2,301

 
1,662

 
2,201

 
2,950

Recoveries liquidating portfolio:
 
 
 
 
 
 
 
 
 
NCLC
25

 
20

 

 
1

 
1

Consumer
559

 
350

 
349

 
309

 
204

Recoveries liquidating portfolio
584

 
370

 
349

 
310

 
205

Total recoveries
2,699

 
2,671

 
2,011

 
2,511

 
3,155

Total net charge-offs
6,105

 
6,753

 
7,773

 
16,389

 
11,802

Ending balance
$
194,320

 
$
187,925

 
$
180,428

 
$
174,201

 
$
174,990







WEBSTER FINANCIAL CORPORATION
Reconciliations to GAAP Financial Measures ____ ___
The Company evaluates its business based on certain ratios that utilize tangible equity, a non-GAAP financial measure. Return on average tangible common shareholders' equity measures the Company’s net income available to common shareholders, adjusted for the tax-affected amortization of intangible assets, as a percentage of average 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.
The efficiency ratio, which measures the costs expended to generate a dollar of revenue, is calculated excluding foreclosed property expense, amortization of intangibles, gain or loss on securities, and other non-recurring items. Core deposits express total deposits less time deposits. Accordingly, these are also non-GAAP financial measures.
The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Company. Other companies may define or calculate supplemental financial data differently. See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP.
 
At or for the Three Months Ended
(In thousands, except per share data)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Return on average tangible common shareholders' equity:
 
 
 
 
 
 
 
 
 
Net income (GAAP)
$
57,660

 
$
51,817

 
$
50,603

 
$
47,047

 
$
51,812

Less: Preferred stock dividends (GAAP)
2,024

 
2,024

 
2,024

 
2,024

 
2,024

Add: Intangible assets amortization, tax-affected at 35% (GAAP)
703

 
970

 
990

 
1,010

 
1,032

Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP)
$
56,339

 
$
50,763

 
$
49,569

 
$
46,033

 
$
50,820

Income adjusted for preferred stock dividends and intangible assets amortization, annualized basis (non-GAAP)
$
225,356

 
$
203,052

 
$
198,276

 
$
184,132

 
$
203,280

Average shareholders' equity (non-GAAP)
$
2,526,099

 
$
2,503,960

 
$
2,460,763

 
$
2,432,554

 
$
2,420,592

Less: Average preferred stock (non-GAAP)
122,710

 
122,710

 
122,710

 
122,710

 
122,710

         Average goodwill and other intangible assets (non-GAAP)
572,682

 
573,978

 
575,483

 
577,029

 
578,598

Average tangible common shareholders' equity (non-GAAP)
$
1,830,707

 
$
1,807,272

 
$
1,762,570

 
$
1,732,815

 
$
1,719,284

Return on average tangible common shareholders' equity (non-GAAP)
12.31
%
 
11.24
%
 
11.25
%
 
10.63
%
 
11.82
%
 
 
 
 
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
 
 
 
 
Non-interest expense (GAAP)
$
161,871

 
$
156,097

 
$
152,778

 
$
152,445

 
$
143,780

Less: Foreclosed property activity (GAAP)
(90
)
 
45

 
(123
)
 
(158
)
 
1

         Intangible assets amortization (GAAP)
1,082

 
1,493

 
1,523

 
1,554

 
1,588

         Other expenses (non-GAAP)
1,243

 
793

 
260

 
1,217

 
(108
)
Non-interest expense (non-GAAP)
$
159,636

 
$
153,766

 
$
151,118

 
$
149,832

 
$
142,299

Net interest income (GAAP)
$
185,259

 
$
180,197

 
$
176,905

 
$
176,152

 
$
173,340

Add: Tax-equivalent adjustment (non-GAAP)
3,902

 
3,478

 
3,282

 
2,975

 
2,738

         Non-interest income (GAAP)
70,617

 
66,412

 
65,075

 
62,374

 
59,679

Less: Gain on investment securities, net (GAAP)

 

 
94

 
320

 
80

         Other (non-GAAP)
(408
)
 
(236
)
 
(655
)
 
(481
)
 
(303
)
One-time gain on the sale of an asset (GAAP)
(7,331
)
 

 

 

 

Income (non-GAAP)
$
252,855

 
$
250,323

 
$
245,823

 
$
241,662

 
$
235,980

Efficiency ratio (non-GAAP)
63.13
%
 
61.43
%
 
61.47
%
 
62.00
%
 
60.30
%





WEBSTER FINANCIAL CORPORATION
Reconciliations to GAAP Financial Measures (continued) ___ ___

 
At or for the Three Months Ended
(In thousands, except per share data)
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
 
December 31,
2015
Tangible equity:
 
 
 
 
 
 
 
 
 
Shareholders' equity (GAAP)
$
2,527,012

 
$
2,511,629

 
$
2,476,966

 
$
2,434,786

 
$
2,413,960

Less: Goodwill and other intangible assets (GAAP)
572,047

 
573,129

 
574,622

 
576,145

 
577,699

Tangible shareholders' equity (non-GAAP)
$
1,954,965

 
$
1,938,500

 
$
1,902,344

 
$
1,858,641

 
$
1,836,261

Total assets (GAAP)
$
26,064,664

 
$
25,633,617

 
$
25,120,466

 
$
24,932,091

 
$
24,641,118

Less: Goodwill and other intangible assets (GAAP)
572,047

 
573,129

 
574,622

 
576,145

 
577,699

Tangible assets (non-GAAP)
$
25,492,617

 
$
25,060,488

 
$
24,545,844

 
$
24,355,946

 
$
24,063,419

Tangible equity (non-GAAP)
7.67
%
 
7.74
%
 
7.75
%
 
7.63
%
 
7.63
%
 
 
 
 
 
 
 
 
 
 
Tangible common equity:
 
 
 
 
 
 
 
 
 
Tangible shareholders' equity (non-GAAP)
$
1,954,965

 
$
1,938,500

 
$
1,902,344

 
$
1,858,641

 
$
1,836,261

Less: Preferred stock (GAAP)
122,710

 
122,710

 
122,710

 
122,710

 
122,710

Tangible common shareholders' equity (non-GAAP)
$
1,832,255

 
$
1,815,790

 
$
1,779,634

 
$
1,735,931

 
$
1,713,551

Tangible assets (non-GAAP)
$
25,492,617

 
$
25,060,488

 
$
24,545,844

 
$
24,355,946

 
$
24,063,419

Tangible common equity (non-GAAP)
7.19
%
 
7.25
%
 
7.25
%
 
7.13
%
 
7.12
%
 
 
 
 
 
 
 
 
 
 
Tangible book value per common share:
 
 
 
 
 
 
 
 
 
Tangible common shareholders' equity (non-GAAP)
$
1,832,255

 
$
1,815,790

 
$
1,779,634

 
$
1,735,931

 
$
1,713,551

Common shares outstanding
91,868

 
91,687

 
91,677

 
91,617

 
91,677

Tangible book value per common share (non-GAAP)
$
19.94

 
$
19.80

 
$
19.41

 
$
18.95

 
$
18.69

 
 
 
 
 
 
 
 
 
 
Core deposits:
 
 
 
 
 
 
 
 
 
Total deposits
$
19,303,857

 
$
19,200,908

 
$
18,828,468

 
$
18,724,523

 
$
17,952,778

Less: Certificates of deposit
1,724,906

 
1,721,056

 
1,701,307

 
1,727,934

 
1,762,847

Brokered certificates of deposit
299,902

 
299,887

 
299,883

 
301,131

 
323,307

Core deposits (non-GAAP)
$
17,279,049

 
$
17,179,965

 
$
16,827,278

 
$
16,695,458

 
$
15,866,624