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Webster Reports 2013 First Quarter Earnings

                 Webster Reports 2013 First Quarter Earnings

Diluted Earnings per Share of $.44 for the Quarter - an Increase of 5 Percent
over Prior Year

PR Newswire

WATERBURY, Conn., April 15, 2013

WATERBURY, Conn., April 15, 2013 /PRNewswire/ --Webster Financial Corporation
(NYSE: WBS), the holding company for Webster Bank, N.A., today announced net
income available to common shareholders of $39.2 million, or $0.44 per diluted
share, for the quarter ended March 31, 2013 compared to $38.3 million, or
$0.42 per diluted share, for the quarter ended March 31, 2012.

Highlights for the quarter or at March 31 include:

Combined growth in commercial and commercial real estate loans of $822.7
million, or 15.5 percent, from a year ago.

Deposit growth of $679.4 million, or 4.9 percent, from a year ago.

Positive operating leverage of 5.7 percent compared to a year ago as core
revenue grew by 3.5 percent and core expenses declined by 2.2 percent; as a
result, the efficiency ratio improved by 347 basis points from a year ago.

Continued improvement in asset quality as evidenced by a reduction of $169
million, or 33.5 percent, in commercial classified loans from a year ago while
past due loans declined $19.9 million, or 33.2 percent from a year ago.
Nonperforming assets increased $19.1 million, or 10.4 percent, from a year ago
and otherwise would have decreased as a net of $44.0 million of residential
and consumer loans were classified as nonaccrual under regulatory guidance
that took effect in the fourth quarter of 2012.

Return on average assets and return on average tangible common equity were
0.84 percent and 11.28 percent, respectively, in the quarter compared to 0.82
percent and 12.04 percent, respectively, in the year ago quarter.

James C. Smith, chairman and chief executive officer, said, "Webster's first
quarter results delivered a solid 16 percent increase in core pre-tax,
pre-provision net earnings from a year ago. Core revenue grew and expenses
dropped, creating positive operating leverage ofsix percent compared to a
year ago. Loans grew by six percent from a year ago, led by another
double-digit increase in the commercial portfolio as we continued to help lead
the region's economic recovery."

Net interest income

  oNet interest income was $145.8 million in the first quarter of 2013
    compared to $143.4 million a year ago.
  oNet interest margin was 3.23 percent compared to 3.36 percent a year ago.
    The yield on interest-earning assets declined 30 basis points and the cost
    of funds declined 18 basis points from the year ago quarter.
  oAverage interest-earning assets totaled $18.5 billion in the quarter and
    grew by 5.9 percent from a year ago.
  oAverage loans grew by $749.3 million, or 6.6 percent, from the year ago
    quarter.

Provision for loan losses

  oThe Company recorded a provision for loan losses of $7.5 million in both
    the first quarter of 2013 and fourth quarter of 2012, and $4.0 million in
    the year ago period; the increased level of the provision reflects growth
    in the loan portfolio over prior year.
  oNet charge-offs were $16.8 million in the quarter compared to $27.2
    million a year ago. The ratio of net charge-offs to average loans on an
    annualized basis was 0.56 percent in the quarter compared to 0.96 percent
    a year ago.
  oThe allowance for loan losses represented 1.40 percent of total loans at
    March 31, 2013 compared to 1.47 percent at December 31, 2012 and 1.86
    percent at March 31, 2012.

Noninterest income

  oTotal noninterest income in the first quarter of 2013 increased $4.3
    million compared to a year ago; there were $0.1 million of securities
    gains in the quarter while the year ago quarter had no securities gains.
  oExcluding securities gains, the $4.2 million increase in core noninterest
    income compared to a year ago reflects increases of $2.6 million in
    mortgage banking activities, $0.9 million from increase in cash surrender
    value of life insurance policies and $0.5 million from wealth and
    investment services. Other income was $0.2 million lower than in the year
    ago quarter reflecting a write-down of $1.5 million in the current quarter
    on a loan previously transferred to held for sale.

Webster President and Chief Operating Officer Jerry Plush noted, "During the
first quarter, we announced outsourcing agreements with Jones Lang LaSalle for
optimization of our facilities management and location decision-making and
with Fidelity Information Services for management of our IT network and
enhancement of our ability to deliver exceptional service to customers. These
agreements create not only cost savings for future quarters but enhance our
ability to optimize the size and locations of our banking centers and enable
us to roll out new banking technologies quickly and seamlessly. We also
launched our eForms initiative which will drive additional efficiency gains in
future periods."

Noninterest expense

  oTotal noninterest expense of $125.5 million in the first quarter of 2013
    decreased $2.3 million compared to the year ago period. Included in
    noninterest expense in the first quarter of 2013 are $1.6 million of net
    one-time costs that amounted to $.01 per diluted share on an after-tax
    basis. These costs consisted primarily of contract termination and
    severance expenses. There were $1.2 million of net one-time costs in the
    year ago quarter that also amounted to $.01 per diluted share.
  oTotal noninterest expense excluding one-time costs decreased $2.7 million
    from the first quarter of 2012. The decrease largely reflects a reduction
    of $2.6 million in compensation and benefits expense.
  oForeclosed and repossessed asset expenses were $0.2 million in the quarter
    compared to $0.5 million a year ago, while gains on foreclosed and
    repossessed assets were $0.3 million and $0.7 million in the respective
    periods.

Income taxes

  oThe Company recorded $18.9 million of income tax expense in the first
    quarter of 2013 on the $61.0 million of pre-tax income in the period. The
    effective tax rate was 31.0 percent compared to 29.9 percent a year ago,
    which reflected a net tax benefit of $0.5 million specific to that period.

Investment securities

  oTotal investment securities were $6.4 billion at March 31, 2013 and $6.2
    billion a year ago. The carrying value of the available for sale portfolio
    included $64.5 million in net unrealized gains compared to net unrealized
    gains of $43.4 million a year ago, while the carrying value of the held to
    maturity portfolio does not reflect $130.9 million in net unrealized gains
    compared to net unrealized gains of $154.9 million a year ago.

Loans

  oTotal loans were $12.0 billion at both March 31, 2013 and December 31,
    2012, and $11.3 billion at March 31, 2012. In the quarter, commercial and
    commercial real estate loans increased by $23.4 million and $7.9 million,
    respectively. Residential mortgage and consumer loans decreased by $4.7
    million and $53.3 million, respectively.
  oCompared to a year ago, commercial, commercial real estate and residential
    mortgage loans increased by $457.5 million, $365.2 million and $16.9
    million, respectively. Consumer loans decreased by $149.6 million.
  oLoan originations for portfolio in the first quarter were $690.5 million
    compared to $1.279 billion in the fourth quarter and $790.8 million a year
    ago. In addition, $229.0 million of residential loans were originated and
    sold with servicing retained in the quarter compared to $221.8 million in
    the fourth quarter and $131.4 million a year ago.

Asset quality

  oPast due loans decreased to $40.0 million at March 31, 2013 compared to
    $74.3 million at December 31, 2012 and $60.0 million at March 31, 2012.
    Compared to December 31, 2012, past due commercial real estate,
    residential mortgage and consumer loans decreased by $13.4 million, $8.6
    million and $10.3 million, respectively. Compared to March 31, 2012, all
    loan categories contributed to the decline except commercial real estate,
    which totaled $1.3 million compared to $1.1 million a year ago.
  oPast due loans represented 0.33 percent of total loans at March 31, 0.62
    percent at December 31 and 0.53 percent a year ago. Past due loans for the
    continuing portfolios were $37.2 million at March 31 compared to $70.7
    million at December 31 and $54.7 million a year ago. Past due loans for
    the liquidating portfolio were $2.8 million at March 31 compared to $3.6
    million at December 31 and $5.3 million a year ago.
  oTotal nonperforming loans increased to $198.8 million, or 1.66 percent of
    total loans, at March 31, 2013 compared to $194.8 million, or 1.62
    percent, at December 31, 2012 and $178.3 million, or 1.58 percent, at
    March 31, 2012. Included in nonperforming loans at March 31 and December
    31 are $44.0 million and $39.5 million, respectively, of residential and
    consumer loans classified as nonaccrual under regulatory guidance that
    took effect in the fourth quarter of 2012. Total paying nonperforming
    loans at March 31 were $55.3 million compared to $46.5 million at December
    31 and $18.1 million a year ago, with the increase consisting primarily of
    the loans classified as such due to the regulatory guidance.

Deposits and borrowings

  oTotal deposits were $14.6 billion at March 31, 2013 compared to $14.5
    billion at December 31, 2012 and $13.9 billion at March 31, 2012. Compared
    to December 31, increases of $206.8 million in interest-bearing checking
    and $65.7 million in savings deposits were offset by declines of $31.8
    million in demand deposits, $39.3 in money market deposits and $108.3
    million in certificates of deposit. Compared to a year ago, increases of
    $357.9 million in demand, $479.6 in interest-bearing checking, $120.7
    million in money market and $50.2 million in savings deposits were offset
    by a decline of $329.0 million in certificates of deposit.
  oCore to total deposits and loans to deposits were 83.3 percent and 82.1
    percent, respectively, compared to 82.5 percent and 82.8 percent at
    December 31, and 80.2 percent and 81.1 percent a year ago.
  oTotal borrowings were $3.2 billion at both March 31 and December 31, and
    $3.1 billion a year ago.

Capital

  oAs previously disclosed, the holder of 8.625 million warrants on Webster's
    common stock exercised the warrants on a net exercise basis on March 22,
    2013. Webster issued 4.565 million shares, net, of common stock. The
    issuance of the 4.565 million shares is reflected in the 90.237 million
    common shares issued and outstanding at March 31, 2013.
  oThe tangible equity and tangible common equity ratios were 8.12 percent
    and 7.35 percent, respectively, at March 31, 2013 compared to 7.27 percent
    and 7.11 percent, respectively, a year ago. The tier 1 common equity to
    risk-weighted assets ratio was 11.02 percent at March 31 compared to 10.96
    percent a year ago.
  oBook value and tangible book value per common share were $21.90 and
    $15.93, respectively, at March 31 compared to $21.24 and $15.05,
    respectively a year ago. The comparisons for each figure to a year ago
    reflect the 4.565 million shares issued during the first quarter of 2013
    in connection with the exercise of the 8.625 million warrants on Webster's
    common stock.
  oReturn on average tangible common shareholders' equity and return on
    average common shareholders' equity were 11.28 percent and 8.01 percent,
    respectively, in the first quarter compared to 12.04 percent and 8.30
    percent, respectively, a year ago.

Webster Financial Corporation is the holding company for Webster Bank,
National Association. With $20 billion in assets, Webster provides business
and consumer banking, mortgage, financial planning, trust and investment
services through 168 banking centers, 294 ATMs, telephone banking, mobile
banking, and the Internet. 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 2013 first quarter earnings announcement
will be held today, Monday, April 15, 2013 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 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 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 non-performing 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; (11) the ability to increase
market share and control expenses; (12) changes in the competitive environment
among banks, financial holding companies, and other financial service
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 those under the
Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III
update to the Basel Accords that is under development; (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;
and (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-Kand Quarterly Reports on Form 10-Q under the heading "Risk Factors."
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. 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.



Media Contact              Investor Contact
Bob Guenther, 203-578-2391 Terry Mangan 203-578-2318
rguenther@websterbank.com  tmangan@websterbank.com

WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
                           At or for the Three Months Ended
(In thousands, March 31,  December31,  September30,  June30,   March31,
except per
share data)    2013        2012          2012           2012        2012
Income and
performance
ratios
(annualized):
Net income
attributable   $       $         $          $       $    
to Webster      42,117    48,526        44,993         41,240      38,938
Financial
Corp.
Net income
available to   39,231      47,911        44,378         40,625      38,323
common
shareholders
Net income per
diluted common 0.44        0.52          0.48           0.44        0.42
share
Return on      0.84 %      0.98 %        0.92 %         0.86 %      0.82 %
average assets
Return on
average
tangible       11.28       13.66         13.03          12.38       12.04
common
shareholders'
equity
Return on
average common 8.01        9.74          9.19           8.62        8.30
shareholders'
equity
Noninterest
income as a    24.88       26.57         25.07          24.70       23.48
percentage of
total revenue
Efficiency     62.16       59.68         62.25          63.75       65.63
ratio
Asset quality:
Allowance for  $       $          $           $        $   
loan losses    167,840     177,129       186,089        198,757     210,288
Nonperforming  203,355     198,181       167,524        173,621     184,218
assets
Allowance for
loan losses /  1.40 %      1.47 %        1.59 %         1.72 %      1.86 %
total loans
Net
charge-offs /  0.56        0.56          0.61           0.58        0.96
average loans
(annualized)
Nonperforming
loans / total  1.66        1.62          1.39           1.47        1.58
loans
Nonperforming
assets / total 1.69        1.65          1.43           1.50        1.63
loans plus
OREO
Allowance for
loan losses /  84.42       90.93         114.44         117.44      117.96
nonperforming
loans
Other ratios
(annualized):
Tangible       8.12 %      7.92 %        7.52 %         7.35 %      7.27 %
equity ratio
Tangible
common equity  7.35        7.15          7.37           7.20        7.11
ratio
Tier 1
risk-based     12.72       12.47         11.90          12.82       12.86
capital ratio
^(a)
Total
risk-based     13.98       13.73         13.16          14.08       14.12
capital ^(a)
Tier 1 common
equity /       11.02       10.78         11.10          10.97       10.96
risk-weighted
assets ^(a)
Shareholders'
equity / total 10.58       10.39         10.05          9.94        9.90
assets
Net interest   3.23        3.27          3.28           3.32        3.36
margin
Share and
equity
related:
Common equity  $         $            $             $          $ 
               1,976,482  1,941,881    1,954,739     1,902,609  1,866,003
Book value per 21.90       22.75         22.24          21.65       21.24
common share
Tangible book
value per      15.93       16.42         16.08          15.47       15.05
common share
Common stock   24.26       20.55         23.70          21.66       22.67
closing price
Dividends
declared per   0.10        0.10          0.10           0.10        0.05
common share
Common shares
issued and     90,237      85,341        87,899         87,885      87,849
outstanding
Basic shares
(weighted      85,501      86,949        87,394         87,291      87,216
average)
Diluted shares
(weighted      89,662      91,315        91,884         91,543      91,782
average)
(a) The ratios presented are projected for March 31, 2013 and actual for the
remaining periods presented.



WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
                            March31,         December31,     March31,
(In thousands)
                            2013              2012             2012
Assets:
Cash and due from banks     $             $    252,283  $    173,027
                            118,657
Interest-bearing deposits   51,352            98,205           77,921
Investment securities:
 Available for sale, at    3,318,238         3,136,160        3,144,867
fair value
 Held to maturity          3,111,169         3,107,529        3,079,654
 Total securities          6,429,407         6,243,689        6,224,521
Loans held for sale         96,706            107,633          59,615
Loans:
 Commercial                3,346,483         3,323,044        2,888,977
 Commercial real estate    2,790,954         2,783,061        2,425,797
 Residential mortgages     3,287,072         3,291,724        3,270,213
 Consumer                  2,577,523         2,630,867        2,727,163
 Total loans               12,002,032        12,028,696       11,312,150
Allowance for loan losses   (167,840)         (177,129)        (210,288)
 Loans, net                11,834,192        11,851,567       11,101,862
Prepaid FDIC premiums       16,644            16,323           32,507
Federal Home Loan Bank and  158,878           155,630          142,595
Federal Reserve Bank stock
Premises and equipment, net 127,609           134,562          141,088
Goodwill and other          538,915           540,157          544,180
intangible assets, net
Cash surrender value of     420,562           418,293          309,556
life insurance policies
Deferred tax asset, net     55,656            68,681           81,676
Accrued interest receivable 261,960           259,742          245,594
and other assets
Total Assets                $  20,110,538   $ 20,146,765    $ 19,134,142
Liabilities and Equity:
Deposits:
 Demand                    $   2,849,355  $  2,881,131   $  2,491,442
 Interest-bearing checking 3,286,540         3,079,767        2,806,950
 Money market              2,165,744         2,205,072        2,045,090
 Savings                   3,885,394         3,819,713        3,835,180
 Certificates of deposit   2,292,441         2,418,853        2,646,783
 Brokered certificates of  144,408           126,299          119,052
deposit
 Total deposits            14,623,882        14,530,835       13,944,497
Securities sold under
agreements to repurchase    1,033,767         1,076,160        1,268,589
and other short-term
borrowings
Federal Home Loan Bank      1,902,563         1,827,612        1,352,466
advances
Long-term debt              230,709           334,276          474,318
Accrued expenses and other  191,486           284,352          199,330
liabilities
 Total liabilities         17,982,407        18,053,235       17,239,200
Preferred stock             151,649           151,649          28,939
Common shareholders' equity 1,976,482         1,941,881        1,866,003
 Webster Financial
Corporation shareholders'   2,128,131         2,093,530        1,894,942
equity
Total Liabilities and       20,110,538        20,146,765       19,134,142
Equity



WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
(In thousands, except per share data)   Three months ended March 31,
                                        2013                2012
Interest income:
Interest and fees on loans and leases   $     121,061   $    120,741
Interest and dividends on securities    48,385              52,868
Loans held for sale                     637                 498
 Total interest income                 170,083             174,107
Interest expense:
Deposits                                12,850              16,056
Borrowings                              11,437              14,683
 Total interest expense                24,287              30,739
 Net interest income                   145,796             143,368
Provision for loan losses               7,500               4,000
 Net interest income after provision   138,296             139,368
for loan losses
Noninterest income:
Deposit service fees                    23,994              23,363
Loan related fees                       4,585               4,869
Wealth and investment services          7,766               7,221
Mortgage banking activities             7,031               4,383
Increase in cash surrender value of     3,384               2,517
life insurance policies
Net gain on investment securities       106                 —
Other income                            1,412               1,633
 Total noninterest income              48,278              43,986
Noninterest expense:
Compensation and benefits               66,050              68,619
Occupancy                               12,879              12,882
Technology and equipment expense        15,353              15,582
Marketing                               4,811               4,100
Professional and outside services       2,150               2,692
Intangible assets amortization          1,242               1,397
Foreclosed and repossessed asset        175                 467
expenses
Foreclosed and repossessed asset gains  (284)               (664)
Loan workout expenses                   1,974               1,824
Deposit insurance                       5,174               5,709
Other expenses                          14,375              13,990
                                        123,899             126,598
Debt prepayment penalties               43                  1,134
Severance, contract, and other          1,593               81
 Total noninterest expense             125,535             127,813
Income before income taxes              61,039              55,541
Income tax expense                      18,922              16,603
 Net income attributable to Webster    42,117              38,938
Financial Corp.
Preferred stock dividends               (2,886)             (615)
 Net income available to common        $      39,231  $     38,323
shareholders
Diluted shares (average)                89,662              91,782
Net income per common share available
to common shareholders:
 Basic                                 $            $       0.44
                                        0.46
 Diluted                               0.44                0.42



WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
               Three Months Ended
(In thousands, March31,   December31,  September30,  June30,  March31,
except per                  2012          2012
share data)    2013                                      2012       2012
Interest
income:
Interest and   $        $          $           $       $   
fees on loans  121,061      122,179       121,367        121,379    120,741
and leases
Interest and
dividends on   48,385       49,752        50,194         52,597     52,868
securities
Loans held for 637          615           655            657        498
sale
Total interest 170,083      172,546       172,216        174,633    174,107
income
Interest
expense:
Deposits       12,850       13,885        14,543         15,102     16,056
Borrowings     11,437       12,389        12,783         15,153     14,683
Total interest 24,287       26,274        27,326         30,255     30,739
expense
Net interest   145,796      146,272       144,890        144,378    143,368
income
Provision for  7,500        7,500         5,000          5,000      4,000
loan losses
Net interest
income after   138,296      138,772       139,890        139,378    139,368
provision for
loan losses
Noninterest
income:
Deposit        23,994       24,823        24,728         23,719     23,363
service fees
Loan related   4,585        5,570         4,039          3,565      4,869
fees
Wealth and
investment     7,766        7,859         7,186          7,249      7,221
services
Mortgage
banking        7,031        8,515         6,515          3,624      4,383
activities
Increase in
cash surrender
value of life  3,384        3,496         2,680          2,561      2,517
insurance
policies
Net gain on
investment     106          —             810            2,537      —
securities
Other income   1,412        2,677         2,521          4,098      1,633
Total
noninterest    48,278       52,940        48,479         47,353     43,986
income
Noninterest
expense:
Compensation   66,050       65,769        66,126         63,587     68,619
and benefits
Occupancy      12,879       12,209        12,462         12,578     12,882
Technology and
equipment      15,353       15,489        15,118         16,021     15,582
expense
Marketing      4,811        3,104         4,529          5,094      4,100
Professional
and outside    2,150        2,479         2,790          3,387      2,692
services
Intangible
assets         1,242        1,242         1,384          1,397      1,397
amortization
Foreclosed and
repossessed    175          267           118            176        467
asset expenses
Foreclosed and
repossessed    (284)        (383)         (409)          (670)      (664)
asset gains
Loan workout   1,974        2,338         1,693          2,201      1,824
expenses
Deposit        5,174        5,642         5,675          5,723      5,709
insurance
Other expenses 14,375       13,934        13,805         14,443     13,990
               123,899      122,090       123,291        123,937    126,598
Debt
prepayment     43           —             391            2,515      1,134
penalties
Severance,
contract, and  1,593        835           205            727        81
other
Total
noninterest    125,535      122,925       123,887        127,179    127,813
expense
Income before  61,039       68,787        64,482         59,552     55,541
income taxes
Income tax     18,922       20,261        19,489         18,312     16,603
expense
Net income
attributable
to Webster     42,117       48,526        44,993         41,240     38,938
Financial
Corp.
Preferred
stock          (2,886)      (615)         (615)          (615)      (615)
dividends
Net income
available to   $       $         $          $      $    
common         39,231       47,911        44,378         40,625     38,323
shareholders
 Diluted
shares         89,662       91,315        91,884         91,543     91,782
(average)
Net income per
common share
available to
common
shareholders:
 Basic    $       $        $        $      $    
                 0.46      0.55        0.51             0.46     0.44
 Diluted  0.44         0.52          0.48           0.44       0.42



WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields, and Rates Paid (unaudited)
Three Months Ended               2013                               2012
March 31,
(Dollars in         Average                Fully tax-  Average                Fully tax-
thousands)          balance      Interest  equivalent  balance      Interest  equivalent
                                           yield/rate                         yield/rate
Assets:
Interest-earning
assets:
Loans             $           $      4.04 %      $            $      4.27 %
                    12,024,588  121,061               11,275,333  120,741
Investment        6,194,885    51,015    3.33 %      5,961,336    55,680    3.76 %
securities ^(a)
Loans held for    89,334       637       2.85 %      51,705       498       3.85 %
sale
Federal Home Loan
and Federal Reserve 156,261      847       2.20 %      143,551      876       2.45 %
Bank stock
Interest-bearing  82,215       46        0.22 %      77,435       30        0.15 %
deposits
Total
interest-earning    18,547,283   173,606   3.76 %      17,509,360   177,825   4.06 %
assets
Noninterest-earning 1,504,196                          1,394,077
assets
Total assets        20,051,479                         18,903,437
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Deposits:
                    $          $                  $           $   
Demand              2,836,051         —%          2,435,197         —%
                                  —                                —
Savings, interest
checking, and money 9,318,300    4,622     0.20 %      8,628,048    5,794     0.27 %
market
Certificates of     2,500,450    8,228     1.33 %      2,810,203    10,262    1.47 %
deposit
Total deposits      14,654,801   12,850    0.36 %      13,873,448   16,056    0.47 %
Securities sold
under agreements to
repurchase and      1,091,437    5,055     1.85 %      1,166,550    4,434     1.50 %
other short-term
borrowings
Federal Home Loan   1,747,858    4,539     1.04 %      1,260,217    4,564     1.43 %
Bank advances
Long-term debt      247,077      1,843     2.98 %      507,116      5,685     4.48 %
Total borrowings    3,086,372    11,437    1.48 %      2,933,883    14,683    1.99 %
Total
interest-bearing    17,741,173   24,287    0.55 %      16,807,331   30,739    0.73 %
liabilities
Noninterest-bearing 199,369                            219,332
liabilities
Total liabilities   17,940,542                         17,026,663
Preferred stock     151,649                            28,939
Common
shareholders'       1,959,288                          1,847,835
equity
Webster Financial
Corp. shareholders' 2,110,937                          1,876,774
equity
Total liabilities   $                                 $
and equity          20,051,479                        18,903,437
Tax-equivalent net               149,319                            147,086
interest income
Less:
tax-equivalent                   (3,523)                            (3,718)
adjustment
Net interest income              $                               $   
                                 145,796                            143,368
Net interest margin                        3.23 %                             3.36 %
(a) For purposes of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average balance.



WEBSTER FINANCIAL CORPORATION
Five Quarter Loan Balances (unaudited)
(Dollars in  March31     December31,  September30,  June30,    March31,
thousands)
             2013         2012          2012           2012         2012
Loan
Balances
(actuals):
Continuing
Portfolio:
Commercial   $          $            $             $           $ 
non-mortgage 2,397,774   2,399,500    2,201,732     2,069,127   1,972,205
Equipment    404,597      419,311       401,748        417,654      446,585
financing
Asset based  544,112      504,233       535,327        499,212      470,187
lending
Commercial   2,763,262    2,755,320     2,597,835      2,518,392    2,389,206
real estate
Residential  27,692       27,741        30,058         33,035       36,591
development
Residential  3,287,071    3,291,723     3,292,947      3,300,616    3,270,212
mortgages
Consumer     2,461,595    2,508,992     2,537,039      2,565,654    2,585,685
Total        11,886,103   11,906,820    11,596,686     11,403,690   11,170,671
continuing
Allowance
for loan     (146,020)    (152,495)     (156,214)      (168,882)    (180,413)
losses
Total
continuing,  11,740,083   11,754,325    11,440,472     11,234,808   10,990,258
net
Liquidating
Portfolio:
National
Construction
Lending      1            1             1              1            1
Center
(NCLC)
Consumer     115,928      121,875       130,965        136,306      141,478
Total
liquidating  115,929      121,876       130,966        136,307      141,479
portfolio
Allowance
for loan     (21,820)     (24,634)      (29,875)       (29,875)     (29,875)
losses
Total
liquidating, 94,109       97,242        101,091        106,432      111,604
net
Total Loan
Balances     12,002,032   12,028,696    11,727,652     11,539,997   11,312,150
(actuals)
Allowance
for loan     (167,840)    (177,129)     (186,089)      (198,757)    (210,288)
losses
Loans, net   $           $             $ 11,541,563  $            $
             11,834,192  11,851,567                  11,341,240  11,101,862
Loan
Balances
(average):
Continuing
Portfolio:
Commercial   $          $            $             $           $ 
non-mortgage 2,422,372   2,238,557    2,137,882     2,008,778   1,970,656
Equipment    407,849      405,702       404,180        430,882      458,111
financing
Asset based  528,797      516,749       520,100        480,574      474,264
lending
Commercial   2,744,101    2,653,749     2,528,394      2,453,430    2,336,576
real estate
Residential  27,507       29,322        31,484         35,422       38,401
development
Residential  3,286,946    3,294,254     3,300,067      3,296,306    3,253,199
mortgages
Consumer     2,488,154    2,526,656     2,552,660      2,576,521    2,598,758
Total        11,905,726   11,664,989    11,474,767     11,281,913   11,129,965
continuing
Allowance
for loan     (153,710)    (161,239)     (167,469)      (179,139)    (201,592)
losses
Total
continuing,  11,752,016   11,503,750    11,307,298     11,102,774   10,928,373
net
Liquidating
Portfolio:
NCLC         1            1             1              1            1
Consumer     118,861      127,701       133,566        138,807      145,367
Total
liquidating  118,862      127,702       133,567        138,808      145,368
portfolio
Allowance
for loan     (21,820)     (24,634)      (29,875)       (29,875)     (29,875)
losses
Total
liquidating, 97,042       103,068       103,692        108,933      115,493
net
Total Loan
Balances     12,024,588   11,792,691    11,608,334     11,420,721   11,275,333
(average)
Allowance
for loan     (175,530)    (185,873)     (197,344)      (209,014)    (231,467)
losses
Loans, net   $           $             $ 11,410,990  $            $
             11,849,058  11,606,818                  11,211,707  11,043,866



WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
(Dollars in    March31,   December31,  September30,  June30,  March31,
thousands)
               2013         2012 ^(a)     2012           2012       2012
Nonperforming
loans:
Continuing
Portfolio:
Commercial     $       $         $          $      $    
non-mortgage   16,328       17,538        30,315         29,271     31,547
Equipment      2,801        3,325         3,052          5,862      4,868
financing
Asset based    —            —             92             262        1,475
lending
Commercial     24,484       15,683        15,768         23,457     25,131
real estate
Residential    4,793        5,043         5,431          5,982      6,140
development
Residential    94,711       95,540        79,736         77,336     79,110
mortgages
Consumer      48,370       49,537        23,602         22,616     26,098
Nonperforming
loans -        191,487      186,666       157,996        164,786    174,369
continuing
portfolio
Liquidating
Portfolio:
Consumer      7,323        8,133         4,616          4,460      3,896
Nonperforming
loans -        7,323        8,133         4,616          4,460      3,896
liquidating
portfolio
Total          $        $          $           $       $   
nonperforming  198,810      194,799       162,612        169,246    178,265
loans
Other real
estate owned
and
repossessed
assets:
Continuing
Portfolio:
Commercial     $       $        $        $      $    
                 404      541        917             917    2,051
Repossessed    995          182           1,840          721        674
equipment
Residential    2,629        2,369         1,705          2,271      2,648
Consumer       517          290           450            466        580
Total          4,545        3,382         4,912          4,375      5,953
continuing
Liquidating
Portfolio:
Total          —            —             —              —          —
liquidating
Total other
real estate    $       $        $         $      $    
owned and       4,545      3,382         4,912           4,375     5,953
repossessed
assets
Total          $        $          $           $       $   
nonperforming  203,355      198,181       167,524        173,621    184,218
assets
(a) The increases in the residential and consumer categories during 4Q12 are
related to an OCC requirement to reflect Chapter 7 bankruptcies as nonaccruing
loans.



WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
(Dollars in     March31,   December31,  September30,  June30,  March31,
thousands)
                2013         2012          2012           2012       2012
Past due 30-89
days:
Accruing loans:
Continuing
Portfolio:
Commercial      $       $        $         $      $    
non-mortgage     3,788      2,769         4,424           6,479     6,938
Equipment       1,000        1,926         3,524          1,665      4,099
financing
Asset based     —            —             —              —          —
lending
Commercial real 1,328        14,710        7,136          3,152      1,101
estate
Residential     —            —             317            —          —
development
Residential     16,571       25,182        22,230         26,966     22,915
mortgages
Consumer        14,538       24,860        24,664         22,163     19,592
Past Due 30-89
days -          37,225       69,447        62,295         60,425     54,645
continuing
portfolio
Liquidating
Portfolio:
Consumer        2,794        3,588         4,909          4,377      5,263
Past Due 30-89
days -          2,794        3,588         4,909          4,377      5,263
liquidating
portfolio
Accruing loans
past due 90     —            1,237         205            1,074      43
days or more
Total past due  $       $         $          $      $    
loans           40,019       74,272        67,409         65,876     59,951



WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Loan Losses (unaudited)
                   For the Three Months Ended
                   March    December31,  September30,  June30,  March31,
(Dollars in        31,
thousands)                  2012 ^ (a)    2012           2012       2012
                   2013
                   $     $          $           $       $   
Beginning balance          186,089       198,757        210,288    233,487
                   177,129
 Provision        7,500    7,500         5,000          5,000      4,000
Charge-offs
continuing
portfolio:
Commercial         4,340    6,411         8,642          5,164      14,994
non-mortgage
Equipment          87       682           187            165        634
financing
Asset based        —        69            —              512        —
lending
Commercial real    3,617    170           2,655          1,066      5,848
estate
Residential        143      156           —              —          —
development
Residential        2,936    2,597         3,234          3,948      3,115
mortgages
Consumer           7,357    8,149         6,752          8,122      6,487
Charge-offs
continuing         18,480   18,234        21,470         18,977     31,078
portfolio
Charge-offs
liquidating
portfolio:
NCLC               —        —             28             4          —
Consumer           3,049    5,137         2,482          3,227      3,564
Charge-offs
liquidating        3,049    5,137         2,510          3,231      3,564
portfolio
Total charge-offs  21,529   23,371        23,980         22,208     34,642
Recoveries
continuing
portfolio:
Commercial         901      1,045         779            957        886
non-mortgage
Equipment          828      2,899         3,111          1,115      2,348
financing
Asset based        698      996           518            721        914
lending
Commercial real    91       43            121            34         1,069
estate
Residential        150      721           181            12         31
development
Residential        205      99            318            126        118
mortgages
Consumer           1,437    674           933            2,453      1,932
Recoveries
continuing         4,310    6,477         5,961          5,418      7,298
portfolio
Recoveries
liquidating
portfolio:
NCLC               45       74            35             10         23
Consumer           385      360           316            249        122
Recoveries
liquidating        430      434           351            259        145
portfolio
Total recoveries   4,740    6,911         6,312          5,677      7,443
Total net          16,789   16,460        17,668         16,531     27,199
charge-offs
                   $     $          $           $       $   
Ending balance             177,129       186,089        198,757    210,288
                   167,840
(a) Note: $5.3 million of net charge-offs in 4Q12 relate to an OCC
requirement to reduce Chapter 7 bankruptcies to collateral value.



WEBSTER FINANCIAL CORPORATION
Reconciliations to GAAP Financial Measures
The Company evaluates its business based on the following 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 common shareholders' equity less goodwill
and intangible assets (excluding mortgage servicing rights). The tangible
equity ratio represents total ending shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by total
assets less goodwill and intangible assets (excluding mortgage servicing
rights). The tangible common equity ratio represents ending common
shareholders' equity less goodwill and intangible assets (excluding mortgage
servicing rights) divided by total assets less goodwill and intangible assets
(excluding mortgage servicing rights). Tangible book value per common share
represents ending common shareholders' equity less goodwill and intangible
assets (excluding mortgage servicing rights) divided by ending common shares
outstanding.



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.
Accordingly, this is also a non-GAAP financial measure.



See the tables below for reconciliations of these non-GAAP financial measures
with financial measures defined by GAAP for the three months ended March 31,
2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31,
2012. 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.



                   At or for the Three Months Ended
(Dollars in        March 31,   December31,  September30,  June30,     March31,
thousands)                                    2012
                   2013         2012                         2012         2012
Reconciliation of
net income
available to
common
shareholders to
net income used
for computing the
return on average
tangible common
shareholders'
equity ratio
Net income
available to       $       $         $          $        $    
common             39,231       47,911        44,378         40,625       38,323
shareholders
Amortization of
intangibles        807          807           900            908          908
(tax-affected @
35%)
 Quarterly net
income adjusted    40,038       48,718        45,278         41,533       39,231
for amortization
of intangibles
 Annualized net
income used in the
return on average  $        $          $           $         $   
tangible common    160,152      194,872       181,112        166,132      156,924
shareholders'
equity ratio
Reconciliation of
average common
shareholders'
equity to average
tangible common
shareholders'
equity
Average common     $          $            $             $           $ 
shareholders'      1,959,288   1,967,312    1,931,544     1,885,386   1,847,835
equity
Average goodwill   (529,887)    (529,887)     (529,887)      (529,887)    (529,887)
Average intangible
assets (excluding  (9,635)      (10,873)      (12,188)       (13,576)     (14,973)
mortgage servicing
rights)
Average tangible
common             $          $            $             $           $ 
shareholders'      1,419,766   1,426,552    1,389,469     1,341,923   1,302,975
equity
Reconciliation of
period-end
shareholders'
equity to
period-end
tangible
shareholders'
equity
Shareholders'      $          $            $             $           $ 
equity             2,128,131   2,093,530    1,983,678     1,931,548   1,894,942
Goodwill           (529,887)    (529,887)     (529,887)      (529,887)    (529,887)
Intangible assets
(excluding         (9,028)      (10,270)      (11,512)       (12,896)     (14,293)
mortgage servicing
rights)
 Tangible       $          $            $             $           $ 
shareholders'      1,589,216   1,553,373    1,442,279     1,388,765   1,350,762
equity
Reconciliation of
period-end common
shareholders'
equity to
period-end
tangible common
shareholders'
equity
Shareholders'      $          $            $             $           $ 
equity             2,128,131   2,093,530    1,983,678     1,931,548   1,894,942
Preferred stock    (151,649)    (151,649)     (28,939)       (28,939)     (28,939)
Common
shareholders'      1,976,482    1,941,881     1,954,739      1,902,609    1,866,003
equity
Goodwill           (529,887)    (529,887)     (529,887)      (529,887)    (529,887)
Intangible assets
(excluding         (9,028)      (10,270)      (11,512)       (12,896)     (14,293)
mortgage servicing
rights)
 Tangible
common             $          $            $             $           $ 
shareholders'      1,437,567   1,401,724    1,413,340     1,359,826   1,321,823
equity
Reconciliation of
period-end assets
to period-end
tangible assets
Assets             $           $             $ 19,729,662  $            $
                   20,110,538  20,146,765                  19,429,749  19,134,142
Goodwill           (529,887)    (529,887)     (529,887)      (529,887)    (529,887)
Intangible assets
(excluding         (9,028)      (10,270)      (11,512)       (12,896)     (14,293)
mortgage servicing
rights)
 Tangible       $           $             $ 19,188,263  $            $
assets             19,571,623  19,606,608                  18,886,966  18,589,962
Book value per
common share
Common             $          $            $             $           $ 
shareholders'      1,976,482   1,941,881    1,954,739     1,902,609   1,866,003
equity
Ending common
shares issued and  90,237       85,341        87,899         87,885       87,849
outstanding (in
thousands)
 Book value per $       $        $         $       $     
share of common     21.90      22.75         22.24          21.65        21.24
stock
Tangible book
value per common
share
Tangible common    $          $            $             $           $ 
shareholders'      1,437,567   1,401,724    1,413,340     1,359,826   1,321,823
equity
Ending common
shares issued and  90,237       85,341        87,899         87,885       87,849
outstanding (in
thousands)
 Tangible book  $       $        $         $       $     
value per common    15.93      16.42         16.08          15.47        15.05
share
Reconciliation of
noninterest
expense to
noninterest
expense used in
the efficiency
ratio
Noninterest        $        $          $           $         $   
expense            125,535      122,925       123,887        127,179      127,813
Foreclosed         (175)        (267)         (118)          (176)        (467)
property expense
Intangible assets  (1,242)      (1,242)       (1,384)        (1,397)      (1,397)
amortization
Other expense      (1,352)      (452)         (187)          (2,572)      (551)
 Noninterest
expense used in    $        $          $           $         $   
the efficiency     122,766      120,964       122,198        123,034      125,398
ratio
Reconciliation of
income to income
used in the
efficiency ratio
Net interest
income before      $        $          $           $         $   
provision for loan 145,796      146,272       144,890        144,378      143,368
losses
Fully
taxable-equivalent 3,523        3,480         3,740          3,813        3,718
adjustment
Noninterest income 48,278       52,940        48,479         47,353       43,986
Less: Net gain on
investment         (106)        —             (810)          (2,537)      —
securities
 Income used in $        $          $           $         $   
the efficiency     197,491      202,692       196,299        193,007      191,072
ratio



SOURCE Webster Financial Corporation

Website: http://www.websterbank.com
Website: http://www.wbst.com
 
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