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Webster Reports 2013 Second Quarter Earnings

                 Webster Reports 2013 Second Quarter Earnings

Diluted Earnings per Share of $0.48 for the Quarter - an Increase of 9 Percent
over Prior Year

PR Newswire

WATERBURY, Conn., July 12, 2013

WATERBURY, Conn., July 12, 2013 /PRNewswire/ -- Webster Financial Corporation
(NYSE: WBS), the holding company for Webster Bank, N.A., today announced net
income available to common shareholders of $43.7 million, or $0.48 per diluted
share, for the quarter ended June 30, 2013 compared to $40.6 million, or $0.44
per diluted share, for the quarter ended June 30, 2012.

Highlights for the quarter or at June 30 include:

Combined growth in commercial and commercial real estate loans of $837.3
million, or 15.1 percent, from a year ago.

Deposit growth of $861.6 million, or 6.2 percent, from a year ago.

Positive operating leverage of 6.6 percent compared to a year ago as core
revenue grew by 5.2 percent and core expenses declined by 1.4 percent; as a
result, the efficiency ratio improved by 377 basis points to 59.98% from a
year ago.

Continued improvement in asset quality as evidenced by a reduction of $155
million, or 34.8 percent, in commercial classified loans from a year ago,
while past due loans declined $16.0 million, or 24.4 percent, from a year ago.
Nonperforming assets increased $16.9 million, or 9.7 percent, from a year ago
and otherwise would have decreased by $26.0 million, or 14.9%, had $42.9
million of residential and consumer loans not been required to be 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
0.92 percent and 12.26 percent, respectively, in the quarter compared to 0.86
percent and 12.38 percent, respectively, in the year ago quarter.

"Webster delivered another solid quarterly performance, marked by higher loan
originations, strong revenue growth, further gains in operating efficiency and
improved asset quality," James C. Smith, Chairman and Chief Executive Officer,
said. "Core revenue growth exceeded 5% as net interest income reached its
highest level ever, and expenses declined year over year. Looking ahead, our
loan pipeline remains strong and is a positive indicator for the region's
economic prospects."

Net interest income

  oNet interest income was $147.1 million in the second quarter of 2013
    compared to $144.4 million a year ago.
  oNet interest margin was 3.23 percent compared to 3.32 percent a year ago.
    The yield on interest-earning assets declined 27 basis points, and the
    cost of funds declined 19 basis points from the year ago quarter.
  oAverage interest-earning assets totaled $18.6 billion in the quarter and
    grew by $769 million, or 4.3 percent, from the year ago quarter.
  oAverage loans grew by $640.8 million, or 5.6 percent, from the year ago
    quarter.

Provision for loan losses

  oThe Company recorded a provision for loan losses of $8.5 million in the
    second quarter of 2013 compared to $7.5 million in the first quarter of
    2013 and $5.0 million in the year ago period.
  oNet charge-offs were $12.9 million in the quarter compared to $16.8 in the
    first quarter of 2013 and $16.5 million in the year ago period. The ratio
    of net charge-offs to average loans on an annualized basis was 0.43
    percent in the quarter compared to 0.58 percent a year ago.
  oThe allowance for loan losses represented 1.33 percent of total loans at
    June 30, 2013 compared to 1.40 percent at March 31, 2013 and 1.72 percent
    at June 30, 2012.

Noninterest income

  oTotal noninterest income of $52.3 million in the second quarter of 2013
    increased $4.9 million compared to a year ago; there were $0.3 million of
    securities gains in the quarter compared to the year ago quarter which had
    $2.5 million of securities gains.
  oExcluding securities gains, the $7.1 million increase in core noninterest
    income compared to a year ago reflects increases of $2.3 million in
    mortgage banking activities, $1.9 million in loan related fees, $1.7
    million from wealth and investment services, $0.9 million in deposit
    service fees, and $0.9 million from an increase in the cash surrender
    value of life insurance policies. Other income was $0.6 million lower than
    in the year ago quarter.

Webster President and Chief Operating Officer Jerry Plush noted, "Stronger
core non interest income this quarter included record results from our Webster
Investment Services division, which posted $6.4 million in fee income. Higher
revenue, along with lower non interest expense, contributed to a positive
operating leverage of6.6% versus prior year."

Noninterest expense

  oTotal noninterest expense of $123.6 million in the second quarter of 2013
    decreased $3.6 million compared to the year ago period. Included in
    noninterest expense in the second quarter of 2013 are $0.9 million of net
    one-time costs that amounted to $0.01 per diluted share on an after-tax
    basis. These costs consisted primarily of stock registration costs,
    contract termination, and severance expenses. There were $3.2 million of
    net one-time costs in the year ago quarter that amounted to $0.02 per
    diluted share.
  oTotal noninterest expense excluding one-time costs decreased $1.3 million
    from the second quarter of 2012. The decrease reflects declines of $1.9
    million in professional and outside services, $1.3 million in marketing,
    $0.7 million in occupancy expenses, $0.6 million in loan workout expense,
    and $0.5 million in technology and equipment expense. These decreases
    were partially offset by increases of $2.2 million in compensation and
    benefits and $1.4 million in other expenses.
  oForeclosed and repossessed asset expenses were $0.3 million in the quarter
    compared to $0.2 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 $20.8 million of income tax expense in the second
    quarter of 2013 on the $67.2 million of pre-tax income in the period. The
    effective tax rate was 31.0 percent compared to 30.8 percent a year ago.

Investment securities

  oTotal investment securities were $6.4 billion at June 30, 2013 and $6.2
    billion a year ago. The carrying value of the available for sale portfolio
    included $4.4 million in net unrealized gains compared to net unrealized
    gains of $46.7 million a year ago, while the carrying value of the held to
    maturity portfolio does not reflect $44.3 million in net unrealized gains
    compared to net unrealized gains of $158.4 million a year ago.

Loans

  oTotal loans were $12.2 billion at June 30, 2013 compared to $12.0 billion
    at March 31, 2013 and $11.5 billion at June 30, 2012. In the quarter,
    commercial, commercial real estate, and residential mortgage loans
    increased by $161.4 million, $75.9 million, and $26.8 million,
    respectively. Consumer loans decreased by $19.8 million.
  oCompared to a year ago, commercial, commercial real estate, and
    residential mortgage loans increased by $521.9 million, $315.4 million,
    and $13.2 million, respectively. Consumer loans decreased by $144.2
    million.
  oLoan originations for portfolio in the second quarter were $1,204 million
    compared to $690 million in the first quarter and $973 million a year ago.
    In addition, $206 million of residential loans were originated and sold
    with servicing retained in the quarter compared to $229 million in the
    first quarter and $198 million a year ago.

Asset quality

  oPast due loans were $49.8 million at June 30, 2013 compared to $40.0
    million at March 31, 2013 and $65.9 million at June 30, 2012. Compared to
    March 31, 2013, past due commercial non-mortgage and consumer loans
    increased by $7.1 million and $1.4 million, respectively. Compared to June
    30, 2012, all loan categories contributed to the decline except commercial
    non-mortgage and residential development, which totaled $11.6 million
    compared to $6.5 million a year ago.
  oPast due loans represented 0.41 percent of total loans at June 30, 2013,
    0.33 percent at March 31, 2013, and 0.57 percent at June 30, 2012. Past
    due loans for the continuing portfolios were $46.4 million at June 30
    compared to $37.2 million at March 31 and $60.4 million a year ago. Past
    due loans for the liquidating portfolio were $1.9 million at June 30
    compared to $2.8 million at March 31 and $4.4 million a year ago.
  oTotal nonperforming loans decreased to $186.7 million, or 1.52 percent of
    total loans, at June 30, 2013 compared to $198.8 million, or 1.66 percent,
    at March 31, 2013 and $169.2 million, or 1.47 percent, at June 30, 2012.
    Included in nonperforming loans at June 30 and March 31 are $42.9 million
    and $44.0 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 June 30 were
    $61.9 million compared to $55.3 million at March 31 and $17.0 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 $14.8 billion at June 30, 2013 compared to $14.6
    billion at March 31, 2013 and $14.0 billion at June 30, 2012. Compared to
    March 31, increases of $107.0 million in demand deposits, $102.0 million
    in interest-bearing checking deposits, and $101.7 million in money market
    deposits were offset by a decline of $101.3 million in certificates of
    deposit. Compared to a year ago, increases of $525.4 million in
    interest-bearing checking, $345.0 in demand deposits, and $333.3 million
    in money market deposits were offset by a decline of $404.6 million in
    certificates of deposit.
  oCore to total deposits and loans to deposits were 84.2 percent and 82.6
    percent, respectively, compared to 83.3 percent and 82.1 percent at March
    31, and 80.6 percent and 82.6 percent a year ago.
  oTotal borrowings were $3.1 billion at June 30 compared to $3.2 billion at
    both March 31 and a year ago.

Capital

  oThe tangible equity and tangible common equity ratios were 8.03 percent
    and 7.27 percent, respectively, at June 30, 2013 compared to 7.35 percent
    and 7.20 percent, respectively, a year ago. The Tier 1 common equity to
    risk-weighted assets ratio was 11.22 percent at June 30 compared to 10.97
    percent a year ago.
  oBook value and tangible book value per common share were $21.88 and
    $15.93, respectively, at June 30, 2013 compared to $21.65 and $15.47,
    respectively a year ago.
  oReturn on average tangible common shareholders' equity and return on
    average common shareholders' equity were 12.26 percent and 8.78 percent,
    respectively, in the second quarter compared to 12.38 percent and 8.62
    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, 296 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 second quarter earnings announcement
will be held today, Friday, July 12, 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,     June 30,     March 31,   December    September   June 30,
except per share   2013         2013        31,         30,         2012
data)                                       2012        2012
Income and
performance ratios
(annualized):
Net income
attributable to    $       $       $       $       $    
Webster Financial  46,373       42,117      48,526      44,993      41,240
Corp.
Net income
available to       43,734       39,231      47,911      44,378      40,625
common
shareholders
Net income per
diluted common     0.48         0.44        0.52        0.48        0.44
share
Return on average  0.92 %       0.84 %      0.98 %      0.92 %      0.86 %
assets
Return on average
tangible common    12.26        11.28       13.66       13.03       12.38
shareholders'
equity
Return on average
common             8.78         8.01        9.74        9.19        8.62
shareholders'
equity
Noninterest income
as a percentage of 26.22        24.88       26.57       25.07       24.70
total revenue
Efficiency ratio   59.98        62.16       59.68       62.25       63.75
Asset quality:
Allowance for loan $        $        $        $        $   
losses             163,442      167,840     177,129     186,089     198,757
Nonperforming      190,539      203,355     198,181     167,524     173,621
assets
Allowance for loan
losses / total     1.33 %       1.40 %      1.47 %      1.59 %      1.72 %
loans
Net charge-offs /
average loans      0.43         0.56        0.56        0.61        0.58
(annualized)
Nonperforming
loans / total      1.52         1.66        1.62        1.39        1.47
loans
Nonperforming
assets / total     1.56         1.69        1.65        1.43        1.50
loans plus OREO
Allowance for loan
losses /           87.55        84.42       90.93       114.44      117.44
nonperforming
loans
Other ratios
(annualized):
Tangible equity    8.03 %       8.12 %      7.92 %      7.52 %      7.35 %
ratio
Tangible common    7.27         7.35        7.15        7.37        7.20
equity ratio
Tier 1 risk-based  12.90        12.75       12.47       11.90       12.82
capital ratio ^(a)
Total risk-based   14.15        14.01       13.73       13.16       14.08
capital ^(a)
Tier 1 common
equity /           11.22        11.06       10.78       11.10       10.97
risk-weighted
assets ^(a)
Shareholders'
equity / total     10.47        10.58       10.39       10.05       9.94
assets
Net interest       3.23         3.23        3.27        3.28        3.32
margin
Share and equity
related:
Common equity      $          $          $          $          $ 
                   1,975,826   1,976,482  1,941,881  1,954,739  1,902,609
Book value per     21.88        21.90       22.75       22.24       21.65
common share
Tangible book
value per common   15.93        15.93       16.42       16.08       15.47
share
Common stock       25.68        24.26       20.55       23.70       21.66
closing price
Dividends declared 0.15         0.10        0.10        0.10        0.10
per common share
Common shares
issued and         90,289       90,237      85,341      87,899      87,885
outstanding
Basic shares       89,645       85,501      86,949      87,394      87,291
(weighted average)
Diluted shares     90,087       89,662      91,315      91,884      91,543
(weighted average)
(a) The ratios presented are projected for June 30, 2013 and actual for the
remaining periods presented.



WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
(In thousands)               June 30,         March 31,        June 30,
                             2013             2013             2012
Assets:
Cash and due from banks      $            $    118,657  $    197,229
                             179,068
Interest-bearing deposits    32,601           51,352           73,598
Investment securities:
Available for sale, at fair 3,257,360        3,318,238        3,153,580
value
Held to maturity            3,129,864        3,111,169        3,076,226
Total securities             6,387,224        6,429,407        6,229,806
Loans held for sale          81,161           96,706           89,228
Loans:
Commercial                  3,507,927        3,346,483        2,985,993
Commercial real estate      2,866,814        2,790,954        2,551,427
Residential mortgages       3,313,833        3,287,072        3,300,617
Consumer                    2,557,719        2,577,523        2,701,960
Total loans                  12,246,293       12,002,032       11,539,997
Allowance for loan losses    (163,442)        (167,840)        (198,757)
Loans, net                   12,082,851       11,834,192       11,341,240
Prepaid FDIC premiums        —                16,644           27,062
Federal Home Loan Bank and   158,878          158,878          142,595
Federal Reserve Bank stock
Premises and equipment, net  122,704          127,609          137,420
Goodwill and other           537,673          538,915          542,783
intangible assets, net
Cash surrender value of life 423,598          420,562          312,117
insurance policies
Deferred tax asset, net      73,166           55,656           79,011
Accrued interest receivable  250,314          261,960          257,660
and other assets
Total Assets                 $  20,329,238  $ 20,110,538    $ 19,429,749
Liabilities and Equity:
Deposits:
Demand                      $              $  2,849,355   $  2,611,297
                             2,956,320
Interest-bearing checking   3,388,505        3,286,540        2,863,076
Money market                2,267,463        2,165,744        1,934,137
Savings                     3,882,691        3,885,394        3,850,549
Certificates of deposit     2,191,188        2,292,441        2,595,816
Brokered certificates of    149,408          144,408          119,052
deposit
Total deposits               14,835,575       14,623,882       13,973,927
Securities sold under
agreements to repurchase and 1,213,349        1,033,767        1,203,378
other short-term borrowings
Federal Home Loan Bank       1,627,517        1,902,563        1,529,102
advances
Long-term debt               229,928          230,709          472,928
Accrued expenses and other   295,394          191,486          318,866
liabilities
Total liabilities            18,201,763       17,982,407       17,498,201
Preferred stock              151,649          151,649          28,939
Common shareholders' equity  1,975,826        1,976,482        1,902,609
Webster Financial
Corporation shareholders'    2,127,475        2,128,131        1,931,548
equity
Total Liabilities and Equity $  20,329,238  $ 20,110,538    $ 19,429,749



WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
(In thousands, except    Three Months Ended June 30,  Six Months Ended June
per share data)                                       30,
                         2013            2012         2013         2012
Interest income:
Interest and fees on     $           $         $         $   
loans and leases         121,720         121,379      242,781      242,120
Interest and dividends   47,822          52,597       96,207       105,465
on securities
Loans held for sale      551             657          1,188        1,155
 Total interest income  170,093         174,633      340,176      348,740
Interest expense:
Deposits                 12,024          15,102       24,874       31,158
Borrowings               11,008          15,153       22,445       29,836
 Total interest expense 23,032          30,255       47,319       60,994
 Net interest income    147,061         144,378      292,857      287,746
Provision for loan       8,500           5,000        16,000       9,000
losses
 Net interest income
after provision for loan 138,561         139,378      276,857      278,746
losses
Noninterest income:
Deposit service fees     24,622          23,719       48,616       47,082
Loan related fees        5,505           3,565        10,090       8,434
Wealth and investment    8,920           7,249        16,686       14,470
services
Mortgage banking         5,888           3,624        12,919       8,007
activities
Increase in cash
surrender value of life  3,448           2,561        6,832        5,078
insurance policies
Net gain on investment   333             2,537        439          2,537
securities
Other income             3,535           4,098        4,947        5,731
 Total noninterest      52,251          47,353       100,529      91,339
income
Noninterest expense:
Compensation and         65,768          63,587       131,818      132,206
benefits
Occupancy                11,837          12,578       24,716       25,460
Technology and equipment 15,495          16,021       30,848       31,603
expense
Marketing                3,817           5,094        8,628        9,194
Professional and outside 1,527           3,387        3,677        6,079
services
Intangible assets        1,242           1,397        2,484        2,794
amortization
Foreclosed and
repossessed asset        331             176          506          643
expenses
Foreclosed and           (250)           (670)        (534)        (1,334)
repossessed asset gains
Loan workout expenses    1,576           2,201        3,550        4,025
Deposit insurance        5,524           5,723        10,698       11,432
Other expenses           15,800          14,443       30,175       28,433
                         122,667         123,937      246,566      250,535
Debt prepayment          —               2,515        43           3,649
penalties
Severance, contract, and 937             727          2,530        808
other
 Total noninterest      123,604         127,179      249,139      254,992
expense
Income before income     67,208          59,552       128,247      115,093
taxes
Income tax expense       20,835          18,312       39,757       34,915
 Net income
attributable to Webster  46,373          41,240       88,490       80,178
Financial Corp.
Preferred stock          (2,639)         (615)        (5,525)      (1,230)
dividends
 Net income available   $          $        $        $    
to common shareholders   43,734          40,625       82,965       78,948
 Diluted shares         90,087          91,543       89,953       91,669
(average)
Net income per common
share available to
common shareholders:
 Basic                  $         $       $       $     
                          0.49           0.46        0.94        0.90
 Diluted                0.48            0.44         0.92         0.86





WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
                     Three Months Ended
(In thousands,       June 30,    March 31,   December   September    June 30,
except per share     2013        2013        31,        30,          2012
data)                                        2012       2012
Interest income:
Interest and fees on $       $        $       $         $   
loans and leases     121,720     121,061     122,179    121,367      121,379
Interest and
dividends on         47,822      48,385      49,752     50,194       52,597
securities
Loans held for sale  551         637         615        655          657
 Total interest     170,093     170,083     172,546    172,216      174,633
income
Interest expense:
Deposits             12,024      12,850      13,885     14,543       15,102
Borrowings           11,008      11,437      12,389     12,783       15,153
 Total interest     23,032      24,287      26,274     27,326       30,255
expense
 Net interest       147,061     145,796     146,272    144,890      144,378
income
Provision for loan   8,500       7,500       7,500      5,000        5,000
losses
 Net interest
income after         138,561     138,296     138,772    139,890      139,378
provision for loan
losses
Noninterest income:
Deposit service fees 24,622      23,994      24,823     24,728       23,719
Loan related fees    5,505       4,585       5,570      4,039        3,565
Wealth and           8,920       7,766       7,859      7,186        7,249
investment services
Mortgage banking     5,888       7,031       8,515      6,515        3,624
activities
Increase in cash
surrender value of   3,448       3,384       3,496      2,680        2,561
life insurance
policies
Net gain on
investment           333         106         —          810          2,537
securities
Other income         3,535       1,412       2,677      2,521        4,098
 Total noninterest  52,251      48,278      52,940     48,479       47,353
income
Noninterest expense:
Compensation and     65,768      66,050      65,769     66,126       63,587
benefits
Occupancy            11,837      12,879      12,209     12,462       12,578
Technology and       15,495      15,353      15,489     15,118       16,021
equipment expense
Marketing            3,817       4,811       3,104      4,529        5,094
Professional and     1,527       2,150       2,479      2,790        3,387
outside services
Intangible assets    1,242       1,242       1,242      1,384        1,397
amortization
Foreclosed and
repossessed asset    331         175         267        118          176
expenses
Foreclosed and
repossessed asset    (250)       (284)       (383)      (409)        (670)
gains
Loan workout         1,576       1,974       2,338      1,693        2,201
expenses
Deposit insurance    5,524       5,174       5,642      5,675        5,723
Other expenses       15,800      14,375      13,934     13,805       14,443
                     122,667     123,899     122,090    123,291      123,937
Debt prepayment      —           43          —          391          2,515
penalties
Severance, contract, 937         1,593       835        205          727
and other
 Total noninterest  123,604     125,535     122,925    123,887      127,179
expense
Income before income 67,208      61,039      68,787     64,482       59,552
taxes
Income tax expense   20,835      18,922      20,261     19,489       18,312
 Net income
attributable to      46,373      42,117      48,526     44,993       41,240
Webster Financial
Corp.
Preferred stock      (2,639)     (2,886)     (615)      (615)        (615)
dividends
 Net income         $       $       $      $        $    
available to common   43,734    39,231      47,911     44,378       40,625
shareholders
 Diluted shares     90,087      89,662      91,315     91,884       91,543
(average)
Net income per
common share
available to common
shareholders:
 Basic              $       $       $      $       $    
                        0.49    0.46      0.55    0.51         0.46
 Diluted            0.48        0.44        0.52       0.48         0.44



WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields, and Rates Paid (unaudited)
Three Months Ended               2013                               2012
June 30,
(Dollars in         Average                Fully tax-  Average               Fully tax-
thousands)          balance      Interest  equivalent  balance      Interest equivalent
                                           yield/rate                        yield/rate
Assets:
Interest-earning
assets:
Loans               $           $      4.02 %      $            $     4.23 %
                    12,061,551  121,720               11,420,721  121,379
Investment          6,257,923    50,277    3.24        6,122,745    55,497   3.65
securities ^(a)
Loans held for sale 70,922       551       3.10        68,362       657      3.85
Federal Home Loan
and Federal Reserve 158,878      865       2.18        142,595      881      2.48
Bank stock
Interest-bearing    41,499       17        0.16        67,480       32       0.19
deposits
Total
interest-earning    18,590,773   173,430   3.73        17,821,903   178,446  4.00
assets
Noninterest-earning 1,483,394                          1,383,932
assets
Total assets        $                                $ 
                    20,074,167                         19,205,835
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Deposits:
                    $          $                  $           $   
Demand              2,879,745         —%          2,554,873        —%
                                  —                                —
Savings, interest
checking, and money 9,413,301    4,506     0.19        8,676,206    5,285    0.24
market
Certificates of     2,397,519    7,518     1.26        2,732,024    9,817    1.45
deposit
Total deposits      14,690,565   12,024    0.33        13,963,103   15,102   0.43
Securities sold
under agreements to
repurchase and      1,203,442    5,184     1.70 %      1,210,234    5,360    1.75 %
other short-term
borrowings
Federal Home Loan   1,623,489    4,007     0.98        1,447,347    4,426    1.21
Bank advances
Long-term debt      230,305      1,817     3.16        473,602      5,367    4.53
Total borrowings    3,057,236    11,008    1.43        3,131,183    15,153   1.92
Total
interest-bearing    17,747,801   23,032    0.52        17,094,286   30,255   0.71
liabilities
Noninterest-bearing 183,117                            197,224
liabilities
Total liabilities   17,930,918                         17,291,510
Preferred stock     151,649                            28,939
Common
shareholders'       1,991,600                          1,885,386
equity
Webster Financial
Corp. shareholders' 2,143,249                          1,914,325
equity
Total liabilities   $                                 $
and equity          20,074,167                        19,205,835
Tax-equivalent net               150,398                            148,191
interest income
Less:
tax-equivalent                   (3,337)                            (3,813)
adjustment
Net interest income              $                               $   
                                 147,061                            144,378
Net interest margin                        3.23 %                            3.32 %
(a) For purposes of the yield computation, unrealized gains (losses) on securities
available for sale are excluded from the average balance.



WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields, and Rates Paid (unaudited)
Six Months Ended                 2013                               2012
June 30,
(Dollars in         Average                Fully tax-  Average               Fully tax-
thousands)          balance      Interest  equivalent  balance      Interest equivalent
                                           yield/rate                        yield/rate
Assets:
Interest-earning
assets:
Loans               $           $      4.03 %      $            $     4.25 %
                    12,043,172  242,781               11,348,027  242,120
Investment          6,226,578    101,292   3.28        6,042,040    111,177  3.71
securities ^(a)
Loans held for sale 80,077       1,188     2.97        60,034       1,155    3.85
Federal Home Loan
and Federal Reserve 157,577      1,712     2.19        143,073      1,757    2.47
Bank stock
Interest-bearing    61,744       63        0.20        72,457       62       0.17
deposits
Total
interest-earning    18,569,148   347,036   3.75        17,665,631   356,271  4.03
assets
Noninterest-earning 1,493,738                          1,389,005
assets
Total assets        $                                $ 
                    20,062,886                         19,054,636
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Deposits:
                    $          $                  $           $   
Demand              2,858,018         —%          2,495,035        —%
                                  —                                —
Savings, interest
checking, and money 9,366,063    9,128     0.20        8,652,127    11,079   0.26
market
Certificates of     2,448,700    15,746    1.30        2,771,113    20,079   1.46
deposit
Total deposits      14,672,781   24,874    0.34        13,918,275   31,158   0.45
Securities sold
under agreements to
repurchase and      1,147,749    10,239    1.77 %      1,188,392    9,794    1.63 %
other short-term
borrowings
Federal Home Loan   1,685,330    8,546     1.01        1,353,782    8,990    1.31
Bank advances
Long-term debt      238,645      3,660     3.07        490,359      11,052   4.51
Total borrowings    3,071,724    22,445    1.45        3,032,533    29,836   1.95
Total
interest-bearing    17,744,505   47,319    0.53        16,950,808   60,994   0.72
liabilities
Noninterest-bearing 191,198                            208,279
liabilities
Total liabilities   17,935,703                         17,159,087
Preferred stock     151,649                            28,939
Common
shareholders'       1,975,534                          1,866,610
equity
Webster Financial
Corp. shareholders' 2,127,183                          1,895,549
equity
Total liabilities   $                                 $
and equity          20,062,886                        19,054,636
Tax-equivalent net               299,717                            295,277
interest income
Less:
tax-equivalent                   (6,860)                            (7,531)
adjustment
Net interest income              $                               $   
                                 292,857                            287,746
Net interest margin                        3.23 %                            3.34 %
(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    June 30,     March 31,    December     September    June 30,
thousands)     2013         2013         31,          30,          2012
                                         2012         2012
Loan Balances
(actuals):
Continuing
Portfolio:
Commercial     $          $           $           $           $ 
non-mortgage   2,515,288   2,397,774   2,399,500   2,201,732   2,069,127
Equipment      400,658      404,597      419,311      401,748      417,654
financing
Asset based    591,981      544,112      504,233      535,327      499,212
lending
Commercial     2,840,064    2,763,262    2,755,320    2,597,835    2,518,392
real estate
Residential    26,750       27,692       27,741       30,058       33,035
development
Residential    3,313,832    3,287,071    3,291,723    3,292,947    3,300,616
mortgages
Consumer       2,445,792    2,461,595    2,508,992    2,537,039    2,565,654
Total
continuing     12,134,365   11,886,103   11,906,820   11,596,686   11,403,690
portfolio
Allowance for  (142,402)    (146,020)    (152,495)    (156,214)    (168,882)
loan losses
Total
continuing     11,991,963   11,740,083   11,754,325   11,440,472   11,234,808
portfolio, net
Liquidating
Portfolio:
National
Construction   1            1            1            1            1
Lending Center
(NCLC)
Consumer       111,927      115,928      121,875      130,965      136,306
Total
liquidating    111,928      115,929      121,876      130,966      136,307
portfolio
Allowance for  (21,040)     (21,820)     (24,634)     (29,875)     (29,875)
loan losses
Total
liquidating    90,888       94,109       97,242       101,091      106,432
portfolio, net
Total Loan
Balances       12,246,293   12,002,032   12,028,696   11,727,652   11,539,997
(actuals)
Allowance for  (163,442)    (167,840)    (177,129)    (186,089)    (198,757)
loan losses
Loans, net     $           $            $            $            $
               12,082,851  11,834,192  11,851,567  11,541,563  11,341,240
Loan Balances
(average):
Continuing
Portfolio:
Commercial     $          $           $           $           $ 
non-mortgage   2,422,156   2,422,372   2,238,557   2,137,882   2,008,778
Equipment      398,084      407,849      405,702      404,180      430,882
financing
Asset based    566,623      528,797      516,749      520,100      480,574
lending
Commercial     2,784,859    2,744,101    2,653,749    2,528,394    2,453,430
real estate
Residential    26,724       27,507       29,322       31,484       35,422
development
Residential    3,295,192    3,286,946    3,294,254    3,300,067    3,296,306
mortgages
Consumer       2,454,041    2,488,154    2,526,656    2,552,660    2,576,521
Total
continuing     11,947,679   11,905,726   11,664,989   11,474,767   11,281,913
portfolio
Allowance for  (148,037)    (153,710)    (161,239)    (167,469)    (179,139)
loan losses
Total
continuing     11,799,642   11,752,016   11,503,750   11,307,298   11,102,774
portfolio, net
Liquidating
Portfolio:
NCLC           1            1            1            1            1
Consumer       113,871      118,861      127,701      133,566      138,807
Total
liquidating    113,872      118,862      127,702      133,567      138,808
portfolio
Allowance for  (21,040)     (21,820)     (24,634)     (29,875)     (29,875)
loan losses
Total
liquidating    92,832       97,042       103,068      103,692      108,933
portfolio, net
Total Loan
Balances       12,061,551   12,024,588   11,792,691   11,608,334   11,420,721
(average)
Allowance for  (169,077)    (175,530)    (185,873)    (197,344)    (209,014)
loan losses
Loans, net     $           $            $            $            $
               11,892,474  11,849,058  11,606,818  11,410,990  11,211,707







WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets(unaudited)
(Dollars in        June 30,     March 31,    December   September    June 30,
thousands)         2013         2013         31,        30,          2012
                                             2012 ^(a)  2012
Nonperforming
loans:
Continuing
Portfolio:
Commercial         $        $        $      $        $    
non-mortgage        17,285     16,328       17,538     30,315       29,271
Equipment          1,852        2,801        3,325      3,052        5,862
financing
Asset based        —            —            —          92           262
lending
Commercial real    16,591       24,484       15,683     15,768       23,457
estate
Residential        4,444        4,793        5,043      5,431        5,982
development
Residential        94,208       94,711       95,540     79,736       77,336
mortgages
Consumer          44,717       48,370       49,537     23,602       22,616
Nonperforming
loans - continuing 179,097      191,487      186,666    157,996      164,786
portfolio
Liquidating
Portfolio:
Consumer          7,594        7,323        8,133      4,616        4,460
Nonperforming
loans -            7,594        7,323        8,133      4,616        4,460
liquidating
portfolio
Total              $        $         $       $         $   
nonperforming      186,691      198,810      194,799    162,612      169,246
loans
Other real estate
owned and
repossessed
assets:
Continuing
Portfolio:
Commercial         $        $        $      $       $    
                      404     404       541    917         917
Repossessed        505          995          182        1,840        721
equipment
Residential        2,485        2,629        2,369      1,705        2,271
Consumer           454          517          290        450          466
Total continuing   3,848        4,545        3,382      4,912        4,375
portfolio
Liquidating
Portfolio:
Total liquidating  —            —            —          —            —
portfolio
Total other real   $        $        $      $       $    
estate owned and     3,848     4,545       3,382    4,912         4,375
repossessed assets
Total              $        $         $       $         $   
nonperforming      190,539      203,355      198,181    167,524      173,621
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          June 30,   March 31,  December     September    June 30,
thousands)           2013       2013       31,          30,          2012
                                           2012         2012
Past due 30-89 days:
Accruing loans:
Continuing
Portfolio:
Commercial           $      $      $       $       $    
non-mortgage          10,891    3,788    2,769        4,424         6,479
Equipment financing  783        1,000      1,926        3,524        1,665
Asset based lending  —          —          —            —            —
Commercial real      1,985      1,328      14,710       7,136        3,152
estate
Residential          737        —          —            317          —
development
Residential          16,056     16,571     25,182       22,230       26,966
mortgages
Consumer             15,976     14,538     24,860       24,664       22,163
Past Due 30-89 days
- continuing         46,428     37,225     69,447       62,295       60,425
portfolio
Liquidating
Portfolio:
Consumer             1,902      2,794      3,588        4,909        4,377
Past Due 30-89 days
- liquidating        1,902      2,794      3,588        4,909        4,377
portfolio
Accruing loans past  1,498      —          1,237        205          1,074
due 90 days or more
Total past due loans $      $      $        $        $    
                      49,828   40,019     74,272       67,409       65,876



WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Loan Losses(unaudited)
                  For the Three Months Ended
(Dollars in       June 30,     March 31,    December     September   June 30,
thousands)        2013         2013         31,          30,         2012
                                            2012 ^(a)    2012
Beginning balance $        $         $         $        $   
                  167,840      177,129      186,089      198,757     210,288
Provision         8,500        7,500        7,500        5,000       5,000
Charge-offs
continuing
portfolio:
Commercial        6,156        4,339        6,411        8,642       5,164
non-mortgage
Equipment         4            87           682          187         165
financing
Asset based       —            —            69           —           512
lending
Commercial real   2,510        3,617        170          2,655       1,066
estate
Residential       —            143          156          —           —
development
Residential       2,112        2,936        2,597        3,234       3,948
mortgages
Consumer          5,374        7,358        8,149        6,752       8,122
Charge-offs
continuing        16,156       18,480       18,234       21,470      18,977
portfolio
Charge-offs
liquidating
portfolio:
NCLC              —            —            —            28          4
Consumer          1,957        3,049        5,137        2,482       3,227
Charge-offs
liquidating       1,957        3,049        5,137        2,510       3,231
portfolio
Total charge-offs 18,113       21,529       23,371       23,980      22,208
Recoveries
continuing
portfolio:
Commercial        998          901          1,045        779         957
non-mortgage
Equipment         904          828          2,899        3,111       1,115
financing
Asset based       60           698          996          518         721
lending
Commercial real   322          91           43           121         34
estate
Residential       229          150          721          181         12
development
Residential       435          205          99           318         126
mortgages
Consumer          1,572        1,437        674          933         2,453
Recoveries
continuing        4,520        4,310        6,477        5,961       5,418
portfolio
Recoveries
liquidating
portfolio:
NCLC              5            45           74           35          10
Consumer          690          385          360          316         249
Recoveries
liquidating       695          430          434          351         259
portfolio
Total recoveries  5,215        4,740        6,911        6,312       5,677
Total net         12,898       16,789       16,460       17,668      16,531
charge-offs
Ending balance    $        $         $         $        $   
                  163,442      167,840      177,129      186,089     198,757
(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 June 30,
2013, March 31, 2013, December 31, 2012, September 30, 2012, and June 30,
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        June 30,     March 31,    December     September    June 30,
thousands)         2013         2013         31,          30,          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             43,734       39,231       47,911       44,378       40,625
shareholders
Amortization of
intangibles        807          807          807          900          908
(tax-affected @
35%)
 Quarterly net
income adjusted    44,541       40,038       48,718       45,278       41,533
for amortization
of intangibles
 Annualized net
income used in the
return on average  $        $         $         $         $   
tangible common    178,164      160,152      194,872      181,112      166,132
shareholders'
equity ratio
Reconciliation of
average common
shareholders'
equity to average
tangible common
shareholders'
equity
Average common     $          $           $           $           $ 
shareholders'      1,991,600   1,959,288   1,967,312   1,931,544   1,885,386
equity
Average goodwill   (529,887)    (529,887)    (529,887)    (529,887)    (529,887)
Average intangible
assets (excluding  (8,391)      (9,635)      (10,873)     (12,188)     (13,576)
mortgage servicing
rights)
 Average
tangible common    $          $           $           $           $ 
shareholders'      1,453,322   1,419,766   1,426,552   1,389,469   1,341,923
equity
Reconciliation of
period-end
shareholders'
equity to
period-end
tangible
shareholders'
equity
Shareholders'      $          $           $           $           $ 
equity             2,127,475   2,128,131   2,093,530   1,983,678   1,931,548
Goodwill           (529,887)    (529,887)    (529,887)    (529,887)    (529,887)
Intangible assets
(excluding         (7,786)      (9,028)      (10,270)     (11,512)     (12,896)
mortgage servicing
rights)
 Tangible       $          $           $           $           $ 
shareholders'      1,589,802   1,589,216   1,553,373   1,442,279   1,388,765
equity
Reconciliation of
period-end common
shareholders'
equity to
period-end
tangible common
shareholders'
equity
Shareholders'      $          $           $           $           $ 
equity             2,127,475   2,128,131   2,093,530   1,983,678   1,931,548
Preferred stock    (151,649)    (151,649)    (151,649)    (28,939)     (28,939)
Common
shareholders'      1,975,826    1,976,482    1,941,881    1,954,739    1,902,609
equity
Goodwill           (529,887)    (529,887)    (529,887)    (529,887)    (529,887)
Intangible assets
(excluding         (7,786)      (9,028)      (10,270)     (11,512)     (12,896)
mortgage servicing
rights)
 Tangible
common             $          $           $           $           $ 
shareholders'      1,438,153   1,437,567   1,401,724   1,413,340   1,359,826
equity
Reconciliation of
period-end assets
to period-end
tangible assets
Assets             $           $            $            $            $
                   20,329,238  20,110,538  20,146,765  19,729,662  19,429,749
Goodwill           (529,887)    (529,887)    (529,887)    (529,887)    (529,887)
Intangible assets
(excluding         (7,786)      (9,028)      (10,270)     (11,512)     (12,896)
mortgage servicing
rights)
 Tangible       $           $            $            $            $
assets             19,791,565  19,571,623  19,606,608  19,188,263  18,886,966
Book value per
common share
Common             $          $           $           $           $ 
shareholders'      1,975,826   1,976,482   1,941,881   1,954,739   1,902,609
equity
Ending common
shares issued and  90,289       90,237       85,341       87,899       87,885
outstanding (in
thousands)
 Book value per $       $       $       $       $     
share of common     21.88      21.90        22.75        22.24        21.65
stock
Tangible book
value per common
share
Tangible common    $          $           $           $           $ 
shareholders'      1,438,153   1,437,567   1,401,724   1,413,340   1,359,826
equity
Ending common
shares issued and  90,289       90,237       85,341       87,899       87,885
outstanding (in
thousands)
 Tangible book  $       $       $       $       $     
value per common    15.93      15.93        16.42        16.08        15.47
share
Reconciliation of
noninterest
expense to
noninterest
expense used in
the efficiency
ratio
Noninterest        $        $         $         $         $   
expense            123,604      125,535      122,925      123,887      127,179
Foreclosed         (331)        (175)        (267)        (118)        (176)
property expense
Intangible assets  (1,242)      (1,242)      (1,242)      (1,384)      (1,397)
amortization
Other expense      (687)        (1,352)      (452)        (187)        (2,572)
 Noninterest
expense used in    $        $         $         $         $   
the efficiency     121,344      122,766      120,964      122,198      123,034
ratio
Reconciliation of
income to income
used in the
efficiency ratio
Net interest
income before      $        $         $         $         $   
provision for loan 147,061      145,796      146,272      144,890      144,378
losses
Fully
taxable-equivalent 3,337        3,523        3,480        3,740        3,813
adjustment
Noninterest income 52,251       48,278       52,940       48,479       47,353
Net gain on
investment         (333)        (106)        —            (810)        (2,537)
securities
 Income used in $        $         $         $         $   
the efficiency     202,316      197,491      202,692      196,299      193,007
ratio





SOURCE Webster Financial Corporation

Website: http://www.websterbank.com