Exhibit 99.1
| | |
Media Contact | | Investor Contact |
Ed Steadham 203-578-2287 | | Terry Mangan 203-578-
2318 |
| esteadham@websterbank.com | | tmangan@websterbank.com |
WEBSTER REPORTS FIRST QUARTER 2008 NET INCOME OF
$24.4 MILLION; EARNINGS PER SHARE OF $.47
ANNOUNCES QUARTERLY CASH DIVIDEND OF $.30 PER SHARE
Net income from continuing operations of $26.5 million or $.51 per diluted share
| | • | | Sold Webster Insurance during the quarter; $2.1 million loss (net of tax) or $.04 loss per share from discontinued operations, primarily deal-related costs |
| | • | | Recorded provision for credit losses for continuing portfolio of $15.8 million; credit reserves at 1.21 percent of $12.2 billion continuing loan portfolio; overall credit reserves at 1.51 percent |
| | • | | Net interest margin improved to 3.27 percent; core deposits improved to 60.7 percent of total deposits |
| | • | | Added 140 Webster-branded ATM locations primarily in the Boston, Springfield, Worcester and Providence markets as part of expansion toward Boston |
| | • | | HSA Bank deposits and linked brokerage account balances grew 18 percent to $544 million |
| | • | | Definitive agreement to sell Webster Risk Services; deal expected to close in second quarter 2008 |
| | • | | Earnings optimization initiative underway (“OneWebster”); results to be announced in late second quarter 2008 |
WATERBURY, Conn., April 22, 2008 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income of $24.4 million or $.47 per diluted share for the first quarter of 2008, compared to a net loss of $8.7 million or $.16 per diluted share for the fourth quarter of 2007 and $35.0 million in net income or $.62
in earnings per share for the first quarter of 2007. Results in the first quarter of 2008 include the benefit of $2.3 million ($1.5 million net of tax) or $.03 per share in connection with the Visa initial public offering and a partial release of the Visa related litigation reserve established in the fourth quarter of 2007 and also reflects other charges recorded in the quarter aggregating $.09 per share.
First Quarter 2008 Earnings Per Share Reconciliation (on reported net income):
| | | | |
Reported diluted EPS | | $ | 0.47 | |
Adjustments: | | | | |
Discontinued operations - Webster Insurance | | | 0.04 | |
Visa transaction | | | (0.03 | ) |
Increase in tax expense under FIN 48 | | | 0.03 | |
Direct investment write-down | | | 0.01 | |
Securities write-down | | | 0.01 | |
| | | | |
Adjusted diluted EPS | | $ | 0.53 | |
| | | | |
Commenting on the quarter, Jim Smith, chairman and chief executive officer, said, “While deteriorating credit conditions have, as expected, affected provisioning and charge-offs in the first quarter, we are pleased with the stability of the net interest margin, quality loan growth and expense control. Given the weakening economy, we expect that credit conditions will remain challenging in future quarters, possibly through year end or potentially longer. We believe that Webster is positioned to manage effectively through this down leg of the economic cycle given our solid capital position, credit reserves and liquidity as well as improving core operating results. We are focused on completing the OneWebster initiative we started earlier this year, which should have a meaningful, positive impact on future operating results.”
Webster announced today that its Board of Directors declared a regular quarterly cash dividend of $.30 per common share. The dividend is payable on May 19, 2008 to shareholders of record on May 5, 2008. This is the 83rd consecutive quarterly dividend since Webster first paid a dividend in 1987.
Webster will provide details on its performance on the first quarter earnings conference call at 9:00 a.m. today EDT (refer to details for the conference call at the end of this release). Additional details are also available on our website at http://www.wbst.com.
The results of the quarter include a loss of $2.1 million or $.04 per share from discontinued operations in connection with the sale of Webster Insurance, which occurred on February 1, 2008. As part of the transaction, Webster retained Webster Risk Services, a third-party workers’ compensation administrator of claims. Webster announced today that it had reached a definitive agreement to sell Webster Risk Services and anticipates closing in the second quarter of 2008.
Webster had several other charges specific to the quarter. The first was a $709,000 write-down in value in a direct investment based on management’s assessment that the decline in market value of the underlying securities will not be recovered in the near term. Webster also recorded a $544,000 charge related to the other-than-temporary impairment of equity securities classified as available for sale. Webster also recognized $1.7 million in tax expense during the quarter for a prior tax position that, in accordance with the provisions of FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxes(“FIN 48”), no longer met the more-likely-than-not recognition threshold.
As previously announced, Webster launched an earnings optimization program (“OneWebster”) in January 2008, assigning senior officers from each line of business and shared services area to teams dedicated to enhance revenues and reduce expenses. Harvest Earnings Group, LLC, whose principals have significant expertise in this area, is assisting with this employee-led program. The effort to improve operating efficiency will be implemented through the end of the year and into 2009. The company anticipates that some job eliminations and other related charges will occur as a result of this initiative.
Revenues
Total revenue, which consists of net interest income plus total noninterest income, totaled $172.7 million in the first quarter compared to total revenue of $170.7 million in the fourth quarter and $175.4 million a year ago.
Net interest income totaled $124.9 million in the first quarter compared to $122.7 million in the fourth quarter and $128.1 million a year ago. The $2.2 million increase from the fourth quarter mostly reflects reduced funding costs while the $3.2 million reduction in net interest income from a year ago reflects a lower net interest margin. The net interest margin was 3.27 percent in the first quarter of 2008 compared to 3.26 percent in the fourth quarter of 2007 and 3.41 percent a year ago. The improvement from the fourth quarter is the result of replacing higher cost certificates of deposit with lower cost borrowings and core deposits, while the 14 basis point reduction from a year ago relates to stock buyback activity undertaken in 2007 coupled with the negative near-term impact of recent Fed Funds rate reductions and higher levels of nonaccrual loans. The spread between the yield on interest-earning assets and the cost of interest-bearing liabilities was 3.20 percent in the first quarter compared to 3.18 percent in the fourth quarter and 3.32 percent a year ago.
Total noninterest income was $47.8 million in the first quarter compared to $48.0 million in the fourth quarter and $47.4 million a year ago. First quarter 2008 results include the impact of several items specific to the quarter including a $1.6 million gain from the Visa IPO; a $709,000 write-down in value in a direct investment based on management’s assessment that the decline in market value of the underlying securities will not be recovered in the near term and a $544,000 other-than-temporary impairment charge related to equity securities classified as available for sale. Deposit service fees totaled $28.4 million compared to $30.6 million in the fourth quarter and $25.4 million a year ago. The 12 percent increase from a year ago partly reflects the implementation of a new consumer fee structure during 2007 while the decline from the fourth quarter is due to seasonal factors. Loan-related fees were $6.9 million compared to $7.3 million in the fourth quarter and $7.9 million a year ago. The decline in the first quarter of 2008 compared with the first quarter of 2007 is primarily due to reduced prepayment fee income, and the decline in the first quarter of 2008 when compared to the fourth quarter of 2007 is the result of reduced servicing-related income. Wealth and investment services revenues totaled $7.0 million compared to $7.5 million in the fourth quarter and $6.9 million a year ago. Income from mortgage banking activities was $0.7 million in the first quarter compared to income of $1.3 million in the fourth quarter and $2.2 million a year ago. The decline from each period reflects the recent decision to exit the national wholesale mortgage business. Other noninterest income was $1.8 million compared to $2.1 million in the fourth quarter and $1.9 million a year ago.
Provision For Credit Losses
The provision for credit losses was $15.8 million compared to $45.25 million in the fourth quarter and $3.0 million a year ago. $40.0 million of provision in the fourth quarter was to increase the allowance for credit losses in conjunction with the company’s decision to place into a liquidating portfolio $424.0 million of loans from discontinued indirect residential construction lending and indirect out of market home equity lending. At March 31, 2008, the liquidating portfolio totaled $395.0 million.
Net loan charge-offs from the continuing portfolios totaled $15.8 million in the first quarter, and net charge-offs of $4.3 million and $3.5 million were recorded respectively against the discontinued indirect national construction loans and indirect, out-of-market home equity loans in the liquidating portfolio.
The allowance for credit losses, which consists of the allowance for loan losses and the reserve for unfunded credit commitments, was $189.8 million or 1.51 percent of total loans at March 31, 2008, compared to 1.58 percent at December 31, 2007 and 1.24 percent at March 31, 2007. Of the total allowance for credit losses as of March 31, 2008, $147.7 million was allocated toward the continuing portfolio, or 1.21 percent of continuing loans. $42.1 million was allocated to the liquidating portfolio, or 10.67 percent of liquidating loans.
Noninterest Expenses
Total noninterest expenses were $116.1 million in the first quarter compared to $120.3 million in the fourth quarter of 2007 and $121.2 million a year ago. The first quarter includes $5.0 million of seasonally higher compensation costs compared to the fourth quarter, primarily related to payroll taxes and benefits. The first quarter of 2008 includes a credit for the partial release of the Visa-related litigation reserve of $650,000 established in the fourth quarter of 2007. The fourth and the first quarter of 2007 included $6.9 million and $4.5 million, respectively, of severance and other costs.
Income Taxes
The effective tax rate applicable to continuing operations for the first quarter was 35.1%. Excluding the effects of the $1.7 million of tax expense specific to the quarter as outlined above, the rate was 31.0%, as compared to 31.6% a year ago. The effective tax rate is subject to volatility from quarter to quarter due to the interim-period recognition provisions of FIN 48.
Balance Sheet Trends
Total assets were $17.2 billion at March 31, 2008 compared to $16.9 billion a year ago. Total loans were $12.6 billion compared to $12.5 billion in the fourth quarter and $12.3 billion a year ago. Commercial real estate and Commercial & Industrial loans grew in the first quarter by $192 million, while consumer and residential mortgage loans declined by $61 million and $6 million, respectively. Given the recent disruption in the capital markets, the company has seen more opportunities to book high quality, low loan to value loans. Securities totaled $2.9 billion compared to $2.4 billion a year ago, offsetting a decline in loans held for sale of $448 million.
Total deposits were $12.1 billion, a decrease of $0.4 billion or 3 percent from a year ago, as brokered certificates of deposits declined $249 million and other certificates of deposit declined $270 million from a year ago. Somewhat offsetting these declines was an increase in core deposits of $104 million. Borrowings totaled $3.2 billion or an increase of $1.0 billion, primarily in repurchase agreements, from a year ago. Short-term borrowings have represented an attractive alternative to certificates of deposits given recent market conditions.
Book value per common share of $32.71 at March 31, 2008 compared to $33.65 a year ago. Tangible book value per share was $18.36 at March 31, 2008 compared to $20.23 a year ago. The ratio of tangible equity to tangible assets was 5.77 percent at March 31, 2008 compared to 6.99 percent a year ago, due to the effect of share buybacks undertaken in 2007 and an increase in unrealized losses on securities classified as available for sale. Webster’s projected
Tier 1 leverage ratio is 7.88 percent at March 31, 2008 compared to 8.34 percent a year ago, and projected total risk based capital ratio is 11.20 percent at March 31, 2008 compared with 12.18 percent a year ago. Given the target levels the company has established for tangible, leverage and total risk based capital, it does not intend to repurchase its stock at least until target levels are achieved.
Asset Quality
Non-performing assets for the continuing portfolios totaled $113.3 million or 0.93 percent of total loans and other real estate owned at March 31, 2008 compared to $91.2 million or 0.76 percent at December 31, 2007. The increase in non-performing assets from continuing portfolios was primarily comprised of $8.3 million in commercial real estate, $3.9 million in residential, $2.6 million in home equity and $4.6 million in other real estate owned. Non-performing loans in the liquidating indirect national construction and indirect out of footprint home equity portfolio totaled $29.8 million and $9.4 million at March 31, 2008, respectively compared to $22.8 million and $7.1 million at December 31, 2007 and $2.6 million and $2.7 million a year ago.
Past due loans for the continuing portfolios totaled $97.5 million at March 31, 2008 compared to $77.0 million at December 31, 2007. The increase in past due loans from these portfolios consisted primarily of $18.6 million in commercial real estate, $8 million of which was related to delayed extensions of credit related to tax credit issues and not payment issues, and these issues are expected to be resolved in the second quarter of 2008. Past due loans for the liquidating portfolio totaled $15.5 million at March 31, 2008, down from $21.9 million at December 31, 2007, primarily from a decline in indirect national construction loans.
The ratio of the allowance for credit losses to non-performing loans for the continuing portfolios was 147 percent at March 31, 2008 compared to 178 percent at December 31, 2007. At March 31, 2008, the $42.1 million allowance for the discontinued indirect portfolios was 108 percent of non-performing loans from the discontinued portfolios compared to 167 percent at December 31, 2007.
***
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.2 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 181 banking offices, 484 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website atwww.WebsterOnline.com.
***
Conference Call
A conference call covering Webster’s first quarter earnings announcement will be held today, Tuesday, April 22, at 9:00 a.m. EDT and may be heard through Webster’s investor relations website atwww.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
Statements in this press release regarding Webster Financial Corporation’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statement, see “Forward Looking Statements” in Webster’s Annual Report for 2007. Except as required by law, Webster does not undertake to update any such forward looking information.
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.
—30—
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
| | | | | | | | |
| | | At or for the Three
Months Ended March 31, | |
(In thousands, except per share data) | | 2008 | | | 2007 (c) | |
Net income and performance ratios (annualized): | | | | | | | | |
Net income | | $ | 24,365 | | | $ | 35,036 | |
Net income per diluted common share | | | 0.47 | | | | 0.62 | |
Return on average shareholders’ equity | | | 5.62 | % | | | 7.39 | % |
Return on average tangible equity | | | 9.95 | | | | 12.31 | |
Return on average assets | | | 0.57 | | | | 0.83 | |
Income from continuing operations and performance ratios (annualized): | | | | | | | | |
Income from continuing operations | | $ | 26,489 | | | $ | 35,080 | |
Net income from continuing operations per diluted common share | | | 0.51 | | | | 0.62 | |
Return on average shareholders’ equity | | | 6.11 | % | | | 7.40 | % |
Return on average tangible equity | | | 10.82 | | | | 12.33 | |
Return on average assets | | | 0.62 | | | | 0.83 | |
Noninterest income as a percentage of total revenue | | | 27.71 | | | | 26.99 | |
Efficiency ratio (a) | | | 67.23 | | | | 69.06 | |
Asset quality: | | | | | | | | |
Allowance for credit losses | | $ | 189,808 | | | $ | 152,660 | |
Nonperforming assets | | | 153,984 | | | | 64,830 | |
Allowance for credit losses / total loans | | | 1.51 | % | | | 1.24 | % |
Net charge-offs / average loans (annualized) | | | 0.75 | | | | 0.17 | |
Nonperforming loans / total loans | | | 1.11 | | | | 0.48 | |
Nonperforming assets / total loans plus OREO | | | 1.22 | | | | 0.53 | |
Allowance for credit losses / nonperforming loans | | | 135.87 | | | | 259.23 | |
Other ratios (annualized): | | | | | | | | |
Tangible capital ratio | | | 5.77 | % | | | 6.99 | % |
Shareholders’ equity / total assets | | | 9.96 | | | | 11.27 | |
Interest-rate spread | | | 3.20 | | | | 3.32 | |
Net interest margin | | | 3.27 | | | | 3.41 | |
Share related: | | | | | | | | |
Book value per common share | | $ | 32.71 | | | $ | 33.65 | |
Tangible book value per common share | | | 18.36 | | | | 20.23 | |
Common stock closing price | | | 27.87 | | | | 48.01 | |
Dividends declared per common share | | | 0.30 | | | | 0.27 | |
Common shares issued and outstanding | | | 52,490 | | | | 56,530 | |
Basic shares (average) | | | 52,001 | | | | 56,113 | |
Diluted shares (average) | | | 52,297 | | | | 56,762 | |
Footnotes:
| (a) | Noninterest expense as a percentage of net interest income plus noninterest income. |
| (b) | For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance. |
| (c) | Certain previously reported information has been reclassified for the effect of reporting Webster Insurance as discontinued operations. |
| (d) | NCLC is defined as National Construction Lending Center. |
Consolidated Statements of Condition (unaudited)
| | | | | | | | | | | | |
(In thousands) | | March 31,
2008 | | | December 31,
2007 | | | March 31,
2007 (c) | |
Assets: | | | | | | | | | | | | |
Cash and due from depository institutions | | $ | 274,321 | | | $ | 306,654 | | | $ | 269,061 | |
Short-term investments | | | 4,042 | | | | 5,112 | | | | 6,161 | |
Securities: | | | | | | | | | | | | |
Trading, at fair value | | | 1,049 | | | | 2,340 | | | | 14,076 | |
Available for sale, at fair value | | | 760,502 | | | | 639,364 | | | | 283,992 | |
Held-to-maturity | | | 2,091,918 | | | | 2,107,227 | | | | 2,066,763 | |
| | | | | | | | | | | | |
Total securities | | | 2,853,469 | | | | 2,748,931 | | | | 2,364,831 | |
Federal Home Loan Bank and Federal Reserve Bank stock | | | 117,213 | | | | 110,962 | | | | 110,962 | |
Loans held for sale | | | 8,223 | | | | 221,568 | | | | 456,033 | |
Loans: | | | | | | | | | | | | |
Residential mortgages | | | 3,635,314 | | | | 3,641,602 | | | | 3,739,221 | |
Commercial | | | 3,571,954 | | | | 3,516,213 | | | | 3,444,612 | |
Commercial real estate | | | 2,196,110 | | | | 2,059,881 | | | | 1,936,650 | |
Consumer | | | 3,197,591 | | | | 3,258,247 | | | | 3,182,765 | |
| | | | | | | | | | | | |
Total loans | | | 12,600,969 | | | | 12,475,943 | | | | 12,303,248 | |
Allowance for loan losses | | | (180,308 | ) | | | (188,086 | ) | | | (145,367 | ) |
| | | | | | | | | | | | |
Loans, net | | | 12,420,661 | | | | 12,287,857 | | | | 12,157,881 | |
Accrued interest receivable | | | 77,593 | | | | 80,432 | | | | 86,878 | |
Premises and equipment, net | | | 192,928 | | | | 193,063 | | | | 191,918 | |
Goodwill and other intangible assets, net | | | 766,467 | | | | 768,015 | | | | 775,998 | |
Cash surrender value of life insurance | | | 271,947 | | | | 269,366 | | | | 261,852 | |
Assets held for disposition | | | 6,912 | | | | 51,603 | | | | 66,388 | |
Prepaid expenses and other assets | | | 249,786 | | | | 158,397 | | | | 130,636 | |
| | | | | | | | | | | | |
Total Assets | | $ | 17,243,562 | | | $ | 17,201,960 | | | $ | 16,878,599 | |
| | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
Demand deposits | | $ | 1,475,258 | | | $ | 1,538,083 | | | $ | 1,505,074 | |
NOW accounts | | | 1,825,963 | | | | 1,718,757 | | | | 1,761,178 | |
Money market deposit accounts | | | 1,704,655 | | | | 1,828,656 | | | | 1,887,602 | |
Savings accounts | | | 2,361,522 | | | | 2,259,747 | | | | 2,109,866 | |
Certificates of deposit | | | 4,564,887 | | | | 4,772,624 | | | | 4,834,440 | |
Brokered deposits | | | 211,007 | | | | 236,291 | | | | 460,230 | |
| | | | | | | | | | | | |
Total deposits | | | 12,143,292 | | | | 12,354,158 | | | | 12,558,390 | |
Securities sold under agreements to repurchase and other short-term debt | | | 1,642,320 | | | | 1,238,012 | | | | 943,802 | |
Federal Home Loan Bank advances | | | 869,079 | | | | 1,052,228 | | | | 655,709 | |
Long-term debt | | | 666,891 | | | | 650,643 | | | | 623,091 | |
Reserve for unfunded credit commitments | | | 9,500 | | | | 9,500 | | | | 7,293 | |
Liabilities held for disposition | | | 806 | | | | 9,261 | | | | 7,617 | |
Accrued expenses and other liabilities | | | 185,381 | | | | 141,949 | | | | 170,835 | |
| | | | | | | | | | | | |
Total liabilities | | | 15,517,269 | | | | 15,455,751 | | | | 14,966,737 | |
Preferred stock of subsidiary corporation | | | 9,577 | | | | 9,577 | | | | 9,577 | |
Shareholders’ equity | | | 1,716,716 | | | | 1,736,632 | | | | 1,902,285 | |
| | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 17,243,562 | | | $ | 17,201,960 | | | $ | 16,878,599 | |
| | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | |
| | | Three Months Ended
March 31, | |
(In thousands, except per share data) | | 2008 | | | 2007 | |
Interest income: | | | | | | | | |
Loans | | $ | 191,272 | | | $ | 209,164 | |
Securities and short-term investments | | | 39,332 | | | | 33,280 | |
Loans held for sale | | | 1,400 | | | | 6,249 | |
| | | | | | | | |
Total interest income | | | 232,004 | | | | 248,693 | |
| | | | | | | | |
Interest expense: | | | | | | | | |
Deposits | | | 75,242 | | | | 87,630 | |
Borrowings | | | 31,906 | | | | 32,982 | |
| | | | | | | | |
Total interest expense | | | 107,148 | | | | 120,612 | |
| | | | | | | | |
Net interest income | | | 124,856 | | | | 128,081 | |
Provision for credit losses | | | 15,800 | | | | 3,000 | |
| | | | | | | | |
Net interest income after provision for credit losses | | | 109,056 | | | | 125,081 | |
| | | | | | | | |
Noninterest income: | | | | | | | | |
Deposit service fees | | | 28,433 | | | | 25,354 | |
Loan related fees | | | 6,858 | | | | 7,940 | |
Wealth and investment services | | | 6,956 | | | | 6,878 | |
Mortgage banking activities | | | 740 | | | | 2,229 | |
Increase in cash surrender value of life insurance | | | 2,581 | | | | 2,534 | |
Gain on sale of securities, net | | | 123 | | | | 541 | |
Other | | | 1,784 | | | | 1,878 | |
| | | | | | | | |
| | | 47,475 | | | | 47,354 | |
Visa share redemption | | | 1,625 | | | | — | |
Loss on write-down of investments to fair value | | | (1,253 | ) | | | — | |
| | | | | | | | |
Total noninterest income | | | 47,847 | | | | 47,354 | |
| | | | | | | | |
Noninterest expenses: | | | | | | | | |
Compensation and benefits | | | 63,443 | | | | 61,535 | |
Occupancy | | | 13,682 | | | | 12,561 | |
Furniture and equipment | | | 15,160 | | | | 14,558 | |
Intangible amortization | | | 1,548 | | | | 3,322 | |
Marketing | | | 3,643 | | | | 4,188 | |
Professional services | | | 4,153 | | | | 4,511 | |
Other | | | 15,132 | | | | 15,964 | |
| | | | | | | | |
| | | 116,761 | | | | 116,639 | |
Severance and other costs | | | (650 | ) | | | 4,522 | |
| | | | | | | | |
Total noninterest expenses | | | 116,111 | | | | 121,161 | |
| | | | | | | | |
Income from continuing operations before income taxes | | | 40,792 | | | | 51,274 | |
Income taxes | | | 14,303 | | | | 16,194 | |
| | | | | | | | |
Income from continuing operations | | | 26,489 | | | | 35,080 | |
Loss from discontinued operations, net of tax | | | (2,124 | ) | | | (44 | ) |
| | | | | | | | |
Net income | | $ | 24,365 | | | $ | 35,036 | |
| | | | | | | | |
Diluted shares (average) | | | 52,297 | | | | 56,762 | |
Net income per common share: | | | | | | | | |
Basic | | | | | | | | |
Income from continuing operations | | $ | 0.51 | | | $ | 0.63 | |
Net income | | | 0.47 | | | | 0.62 | |
Diluted | | | | | | | | |
Income from continuing operations | | | 0.51 | | | | 0.62 | |
Net income | | | 0.47 | | | | 0.62 | |
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
(In thousands, except per share data) | | March 31,
2008 | | | Dec. 31,
2007 | | | Sept. 30,
2007 | | June 30,
2007 | | | March 31,
2007 | |
Interest income: | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 191,272 | | | $ | 205,363 | | | $ | 212,847 | | $ | 210,337 | | | $ | 209,164 | |
Securities and short-term investments | | | 39,332 | | | | 36,318 | | | | 34,163 | | | 32,563 | | | | 33,280 | |
Loans held for sale | | | 1,400 | | | | 3,276 | | | | 4,616 | | | 7,419 | | | | 6,249 | |
| | | | | | | | | | | | | | | | | | | |
Total interest income | | | 232,004 | | | | 244,957 | | | | 251,626 | | | 250,319 | | | | 248,693 | |
| | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | |
Deposits | | | 75,242 | | | | 89,510 | | | | 94,484 | | | 89,683 | | | | 87,630 | |
Borrowings | | | 31,906 | | | | 32,748 | | | | 30,083 | | | 30,283 | | | | 32,982 | |
| | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 107,148 | | | | 122,258 | | | | 124,567 | | | 119,966 | | | | 120,612 | |
| | | | | | | | | | | | | | | | | | | |
Net interest income | | | 124,856 | | | | 122,699 | | | | 127,059 | | | 130,353 | | | | 128,081 | |
Provision for credit losses | | | 15,800 | | | | 45,250 | | | | 15,250 | | | 4,250 | | | | 3,000 | |
| | | | | | | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 109,056 | | | | 77,449 | | | | 111,809 | | | 126,103 | | | | 125,081 | |
| | | | | | | | | | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | | | | | | | | | |
Deposit service fees | | | 28,433 | | | | 30,577 | | | | 29,956 | | | 28,758 | | | | 25,354 | |
Loan related fees | | | 6,858 | | | | 7,328 | | | | 7,661 | | | 7,901 | | | | 7,940 | |
Wealth and investment services | | | 6,956 | | | | 7,507 | | | | 7,142 | | | 7,637 | | | | 6,878 | |
Mortgage banking activities | | | 740 | | | | 1,276 | | | | 1,849 | | | 3,962 | | | | 2,229 | |
Increase in cash surrender value of life insurance | | | 2,581 | | | | 2,637 | | | | 2,629 | | | 2,586 | | | | 2,534 | |
Gain on sale of securities, net | | | 123 | | | | 195 | | | | 482 | | | 503 | | | | 541 | |
Other | | | 1,784 | | | | 2,094 | | | | 1,688 | | | 2,025 | | | | 1,878 | |
| | | | | | | | | | | | | | | | | | | |
| | | 47,475 | | | | 51,614 | | | | 51,407 | | | 53,372 | | | | 47,354 | |
VISA share redemption | | | 1,625 | | | | — | | | | — | | | — | | | | — | |
Loss on write-down of investments to fair value | | | (1,253 | ) | | | (3,565 | ) | | | — | | | — | | | | — | |
Gain on Webster Capital Trust I and II securities | | | — | | | | — | | | | — | | | 2,130 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total noninterest income | | | 47,847 | | | | 48,049 | | | | 51,407 | | | 55,502 | | | | 47,354 | |
| | | | | | | | | | | | | | | | | | | |
Noninterest expenses: | | | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 63,443 | | | | 59,910 | | | | 61,171 | | | 61,954 | | | | 61,535 | |
Occupancy | | | 13,682 | | | | 12,321 | | | | 11,932 | | | 12,564 | | | | 12,561 | |
Furniture and equipment | | | 15,160 | | | | 15,353 | | | | 14,846 | | | 15,014 | | | | 14,558 | |
Intangible amortization | | | 1,548 | | | | 1,881 | | | | 2,027 | | | 3,144 | | | | 3,322 | |
Marketing | | | 3,643 | | | | 1,727 | | | | 4,123 | | | 4,175 | | | | 4,188 | |
Professional services | | | 4,153 | | | | 3,721 | | | | 3,625 | | | 3,181 | | | | 4,511 | |
Other | | | 15,132 | | | | 18,513 | | | | 15,377 | | | 16,224 | | | | 15,964 | |
| | | | | | | | | | | | | | | | | | | |
| | | 116,761 | | | | 113,426 | | | | 113,101 | | | 116,256 | | | | 116,639 | |
Debt redemption premium | | | — | | | | — | | | | — | | | 8,940 | | | | — | |
Severance and other costs | | | (650 | ) | | | 6,898 | | | | 452 | | | 3,736 | | | | 4,522 | |
| | | | | | | | | | | | | | | | | | | |
Total noninterest expenses | | | 116,111 | | | | 120,324 | | | | 113,553 | | | 128,932 | | | | 121,161 | |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 40,792 | | | | 5,174 | | | | 49,663 | | | 52,673 | | | | 51,274 | |
Income taxes | | | 14,303 | | | | 5 | | | | 15,088 | | | 16,801 | | | | 16,194 | |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 26,489 | | | | 5,169 | | | | 34,575 | | | 35,872 | | | | 35,080 | |
(Loss) income from discontinued operations, net of tax | | | (2,124 | ) | | | (13,867 | ) | | | 393 | | | (405 | ) | | | (44 | ) |
| | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 24,365 | | | $ | (8,698 | ) | | $ | 34,968 | | $ | 35,467 | | | $ | 35,036 | |
| | | | | | | | | | | | | | | | | | | |
Diluted shares (average) | | | 52,297 | | | | 52,795 | | | | 54,259 | | | 56,243 | | | | 56,762 | |
Net income per common share: | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.51 | | | $ | 0.10 | | | $ | 0.64 | | $ | 0.64 | | | $ | 0.63 | |
Net income (loss) | | | 0.47 | | | | (0.17 | ) | | | 0.65 | | | 0.64 | | | | 0.62 | |
Diluted | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 0.51 | | | | 0.10 | | | | 0.64 | | | 0.64 | | | | 0.62 | |
Net income (loss) | | | 0.47 | | | | (0.16 | ) | | | 0.64 | | | 0.63 | | | | 0.62 | |
See Selected Financial Highlights for footnotes.
Interest-Rate Spread (unaudited)
| | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | March 31,
2008 | | | December 31,
2007 | | | September 30,
2007 | | | June 30,
2007 | | | March 31,
2007 | |
Interest-rate spread | | | | | | | | | | | | | | | |
Yield on interest-earning assets | | 6.02 | % | | 6.42 | % | | 6.61 | % | | 6.62 | % | | 6.61 | % |
Cost of interest-bearing liabilities | | 2.82 | | | 3.24 | | | 3.32 | | | 3.25 | | | 3.29 | |
| | | | | | | | | | | | | | | |
Interest-rate spread | | 3.20 | % | | 3.18 | % | | 3.29 | % | | 3.37 | % | | 3.32 | % |
| | | | | | | | | | | | | | | |
Net interest margin | | 3.27 | % | | 3.26 | % | | 3.38 | % | | 3.47 | % | | 3.41 | % |
| | | | | | | | | | | | | | | |
Consolidated Average Statements of Condition (unaudited)
| | | | | | | | | | | | | | | | | | | | |
Three Months Ended March 31, | | 2008 | | | 2007 | |
(Dollars in thousands) | | Average
balance | | Interest | | | Fully tax-
equivalent
yield/rate | | | Average
balance | | Interest | | | Fully tax-
equivalent
yield/rate | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 12,540,115 | | $ | 191,272 | | | 6.08 | % | | $ | 12,445,025 | | $ | 209,164 | | | 6.74 | % |
Securities (b) | | | 2,838,688 | | | 41,300 | | | 5.75 | | | | 2,180,998 | | | 31,722 | | | 5.85 | |
Loans held for sale | | | 96,372 | | | 1,400 | | | 5.81 | | | | 394,102 | | | 6,249 | | | 6.34 | |
Federal Home Loan and Federal Reserve Bank stock | | | 116,197 | | | 1,673 | | | 5.79 | | | | 122,193 | | | 2,481 | | | 8.23 | |
Short-term investments | | | 3,690 | | | 37 | | | 3.98 | | | | 117,584 | | | 1,585 | | | 5.39 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 15,595,062 | | | 235,682 | | | 6.02 | | | | 15,259,902 | | | 251,201 | | | 6.61 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-earning assets | | | 1,538,898 | | | | | | | | | | 1,602,979 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 17,133,960 | | | | | | | | | $ | 16,862,881 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | $ | 1,437,553 | | $ | — | | | — | % | | $ | 1,505,598 | | $ | — | | | — | % |
Savings, NOW and money market deposit accounts | | | 5,796,671 | | | 24,180 | | | 1.67 | | | | 5,567,702 | | | 28,762 | | | 2.10 | |
Time deposits | | | 4,938,280 | | | 51,062 | | | 4.15 | | | | 5,303,759 | | | 58,868 | | | 4.50 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 12,172,504 | | | 75,242 | | | 2.49 | | | | 12,377,059 | | | 87,630 | | | 2.87 | |
| | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase and other short-term debt | | | 1,359,763 | | | 11,219 | | | 3.26 | | | | 883,172 | | | 9,878 | | | 4.47 | |
Federal Home Loan Bank advances | | | 1,039,936 | | | 9,879 | | | 3.76 | | | | 918,125 | | | 10,909 | | | 4.75 | |
Long-term debt | | | 658,789 | | | 10,808 | | | 6.56 | | | | 620,451 | | | 12,195 | | | 7.86 | |
| | | | | | | | | | | | | | | | | | | | |
Total borrowings | | | 3,058,488 | | | 31,906 | | | 4.14 | | | | 2,421,748 | | | 32,982 | | | 5.45 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 15,230,992 | | | 107,148 | | | 2.82 | | | | 14,798,807 | | | 120,612 | | | 3.29 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities | | | 160,546 | | | | | | | | | | 157,247 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 15,391,538 | | | | | | | | | | 14,956,054 | | | | | | | |
Preferred stock of subsidiary corporation | | | 9,577 | | | | | | | | | | 9,577 | | | | | | | |
Shareholders’ equity | | | 1,732,845 | | | | | | | | | | 1,897,250 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 17,133,960 | | | | | | | | | $ | 16,862,881 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Tax-equivalent net interest income | | | | | | 128,534 | | | | | | | | | | 130,589 | | | | |
Less: tax-equivalent adjustment | | | | | | (3,678 | ) | | | | | | | | | (2,508 | ) | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 124,856 | | | | | | | | | $ | 128,081 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest-rate spread | | | | | | | | | 3.20 | % | | | | | | | | | 3.32 | % |
| | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | 3.27 | % | | | | | | | | | 3.41 | % |
| | | | | | | | | | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
Nonperforming Assets (unaudited)
| | | | | | | | | | | | | | | |
(Dollars in thousands) | | March 31,
2008 | | Dec. 31,
2007 | | Sept. 30,
2007 | | June 30,
2007 | | March 31,
2007 |
Nonperforming loans: | | | | | | | | | | | | | | | |
Continuing Portfolio: | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | |
Commercial | | $ | 30,264 | | $ | 26,804 | | $ | 25,845 | | $ | 20,142 | | $ | 13,679 |
Equipment financing | | | 5,719 | | | 6,473 | | | 5,054 | | | 2,584 | | | 2,405 |
| | | | | | | | | | | | | | | |
Total commercial | | | 35,983 | | | 33,277 | | | 30,899 | | | 22,726 | | | 16,084 |
Commercial real estate | | | 21,211 | | | 12,896 | | | 14,238 | | | 12,242 | | | 18,524 |
Residential: | | | | | | | | | | | | | | | |
Residential construction to permanent | | | 4,200 | | | 2,820 | | | — | | | — | | | — |
All other | | | 22,042 | | | 19,532 | | | 14,811 | | | 13,288 | | | 10,838 |
| | | | | | | | | | | | | | | |
Total residential | | | 26,242 | | | 22,352 | | | 14,811 | | | 13,288 | | | 10,838 |
Consumer | | | 17,084 | | | 14,455 | | | 12,688 | | | 8,164 | | | 8,114 |
| | | | | | | | | | | | | | | |
Nonperforming loans - continuing portfolio | | | 100,520 | | | 82,980 | | | 72,636 | | | 56,420 | | | 53,560 |
| | | | | | | | | | | | | | | |
Liquidating Portfolio: | | | | | | | | | | | | | | | |
NCLC(d) | | | 29,804 | | | 22,797 | | | 18,486 | | | 13,395 | | | 2,635 |
Consumer | | | 9,378 | | | 7,126 | | | 4,199 | | | 2,711 | | | 2,694 |
| | | | | | | | | | | | | | | |
Nonperforming loans - liquidating portfolio | | | 39,182 | | | 29,923 | | | 22,685 | | | 16,106 | | | 5,329 |
| | | | | | | | | | | | | | | |
Total nonperforming loans | | | 139,702 | | | 112,903 | | | 95,321 | | | 72,526 | | | 58,889 |
| | | | | | | | | | | | | | | |
Other real estate owned and repossessed assets: | | | | | | | | | | | | | | | |
Commercial | | | 6,590 | | | 2,211 | | | 5,233 | | | 3,950 | | | 4,833 |
Residential | | | 1,820 | | | 1,062 | | | 985 | | | 711 | | | 350 |
Consumer | | | 5,872 | | | 4,896 | | | 2,635 | | | 1,467 | | | 758 |
| | | | | | | | | | | | | | | |
Total other real estate owned and repossessed assets | | | 14,282 | | | 8,169 | | | 8,853 | | | 6,128 | | | 5,941 |
| | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 153,984 | | $ | 121,072 | | $ | 104,174 | | $ | 78,654 | | $ | 64,830 |
| | | | | | | | | | | | | | | |
Accruing loans 90 or more days past due | | $ | 1,032 | | $ | 1,891 | | $ | 1,286 | | $ | 2,088 | | $ | 4,636 |
| | | | | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
Past Due Loans(unaudited)
| | | | | | | | | | | | | | | |
(Dollars in thousands) | | March 31,
2008 | | Dec. 31,
2007 | | Sept. 30,
2007 | | June 30,
2007 | | March 31,
2007 |
Past Due 30-89 days: | | | | | | | | | | | | | | | |
Continuing Portfolio: | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | |
Commercial | | $ | 10,229 | | $ | 13,291 | | $ | 4,237 | | $ | 9,999 | | $ | 20,537 |
Equipment financing | | | 10,269 | | | 5,644 | | | 3,057 | | | 3,355 | | | 3,582 |
| | | | | | | | | | | | | | | |
Total commercial | | | 20,498 | | | 18,935 | | | 7,294 | | | 13,354 | | | 24,119 |
Commercial real estate | | | 30,654 | | | 12,054 | | | 21,017 | | | 13,452 | | | 6,429 |
Residential: | | | | | | | | | | | | | | | |
Residential construction to permanent | | | 3,339 | | | 3,743 | | | 1,656 | | | 536 | | | — |
All other | | | 22,295 | | | 19,967 | | | 22,501 | | | 14,556 | | | 10,354 |
| | | | | | | | | | | | | | | |
Total residential | | | 25,634 | | | 23,710 | | | 24,157 | | | 15,092 | | | 10,354 |
Consumer | | | 20,721 | | | 22,347 | | | 17,836 | | | 17,005 | | | 6,801 |
| | | | | | | | | | | | | | | |
Past Due 30-89 days - continuing portfolio | | | 97,507 | | | 77,046 | | | 70,304 | | | 58,903 | | | 47,703 |
| | | | | | | | | | | | | | | |
Liquidating Portfolio: | | | | | | | | | | | | | | | |
NCLC(d) | | | 4,983 | | | 13,143 | | | 10,209 | | | 9,037 | | | 1,835 |
Consumer | | | 10,473 | | | 8,793 | | | 7,815 | | | 5,379 | | | 2,815 |
| | | | | | | | | | | | | | | |
Past Due 30-89 days - liquidating portfolio | | | 15,456 | | | 21,936 | | | 18,024 | | | 14,416 | | | 4,650 |
| | | | | | | | | | | | | | | |
Past Due 90 days or more: | | | | | | | | | | | | | | | |
Commercial | | | 596 | | | 1,141 | | | 1,031 | | | 1,188 | | | 1,361 |
Commercial real estate | | | 436 | | | 750 | | | 255 | | | 900 | | | 3,275 |
| | | | | | | | | | | | | | | |
Total | | $ | 113,995 | | $ | 100,873 | | $ | 89,614 | | $ | 75,407 | | $ | 56,989 |
| | | | | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
Allowance for Credit Losses (unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | |
(Dollars in thousands) | | March 31,
2008 | | | Dec. 31,
2007 | | | Sept. 30,
2007 | | | June 30,
2007 | | | March 31,
2007 | |
Beginning balance | | $ | 197,586 | | | $ | 164,011 | | | $ | 152,750 | | | $ | 152,660 | | | $ | 154,994 | |
Provision | | | 15,800 | | | | 45,250 | | | | 15,250 | | | | 4,250 | | | | 3,000 | |
Charge-offs continuing portfolio: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 11,439 | | | | 2,485 | | | | 1,992 | | | | 2,034 | | | | 2,293 | |
Residential | | | 1,480 | | | | 71 | | | | 364 | | | | 286 | | | | 442 | |
Consumer | | | 3,697 | | | | 1,833 | | | | 1,613 | | | | 1,892 | | | | 1,136 | |
| | | | | | | | | | | | | | | | | | | | |
Charge-offs continuing portfolio: | | | 16,616 | | | | 4,389 | | | | 3,969 | | | | 4,212 | | | | 3,871 | |
Recoveries | | | (827 | ) | | | (1,611 | ) | | | (1,018 | ) | | | (1,336 | ) | | | (1,533 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net loan charge-offs | | | 15,789 | | | | 2,778 | | | | 2,951 | | | | 2,876 | | | | 2,338 | |
| | | | | | | | | | | | | | | | | | | | |
Charge-offs liquidating portfolio: | | | | | | | | | | | | | | | | | | | | |
NCLC(d) | | | 4,341 | | | | 7,051 | | | | 69 | | | | — | | | | 2,139 | |
Consumer | | | 3,448 | | | | 1,846 | | | | 969 | | | | 1,284 | | | | 857 | |
| | | | | | | | | | | | | | | | | | | | |
Charge-offs liquidating portfolio: | | | 7,789 | | | | 8,897 | | | | 1,038 | | | | 1,284 | | | | 2,996 | |
| | | | | | | | | | | | | | | | | | | | |
Total net charge-offs | | | 23,578 | | | | 11,675 | | | | 3,989 | | | | 4,160 | | | | 5,334 | |
| | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 189,808 | | | $ | 197,586 | | | $ | 164,011 | | | $ | 152,750 | | | $ | 152,660 | |
| | | | | | | | | | | | | | | | | | | | |
Components: | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 180,308 | | | $ | 188,086 | | | $ | 154,532 | | | $ | 144,974 | | | $ | 145,367 | |
Reserve for unfunded credit commitments | | | 9,500 | | | | 9,500 | | | | 9,479 | | | | 7,776 | | | | 7,293 | |
| | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses | | $ | 189,808 | | | $ | 197,586 | | | $ | 164,011 | | | $ | 152,750 | | | $ | 152,660 | |
| | | | | | | | | | | | | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses / total loans | | | 1.43 | % | | | 1.51 | % | | | 1.24 | % | | | 1.17 | % | | | 1.18 | % |
Allowance for credit losses / total loans | | | 1.51 | | | | 1.58 | | | | 1.32 | | | | 1.23 | | | | 1.24 | |
Net charge-offs / average loans (annualized) | | | 0.75 | | | | 0.38 | | | | 0.13 | | | | 0.14 | | | | 0.17 | |
Nonperforming loans / total loans | | | 1.11 | | | | 0.90 | | | | 0.77 | | | | 0.58 | | | | 0.48 | |
Nonperforming assets / total loans plus OREO | | | 1.22 | | | | 0.97 | | | | 0.84 | | | | 0.63 | | | | 0.53 | |
Allowance for credit losses / nonperforming loans | | | 135.87 | | | | 175.01 | | | | 172.06 | | | | 210.61 | | | | 259.23 | |
Continuing Portfolio | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses / total loans | | | 1.13 | % | | | 1.15 | % | | | n/a | | | | n/a | | | | n/a | |
Allowance for credit losses / total loans | | | 1.21 | | | | 1.23 | | | | n/a | | | | n/a | | | | n/a | |
Net charge-offs / average loans (annualized) | | | 0.52 | | | | 0.09 | | | | n/a | | | | n/a | | | | n/a | |
Nonperforming loans / total loans | | | 0.82 | | | | 0.69 | | | | n/a | | | | n/a | | | | n/a | |
Nonperforming assets / total loans plus OREO | | | 0.93 | | | | 0.76 | | | | n/a | | | | n/a | | | | n/a | |
Allowance for credit losses / nonperforming loans | | | 146.92 | | | | 177.98 | | | | n/a | | | | n/a | | | | n/a | |
Liquidating Portfolio | | | | | | | | | | | | | | | | | | | | |
NCLC | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses / total loans | | | 18.77 | % | | | 20.65 | % | | | n/a | | | | n/a | | | | n/a | |
Net charge-offs / average loans (annualized) | | | 25.78 | | | | 25.43 | | | | n/a | | | | n/a | | | | n/a | |
Nonperforming loans / total loans | | | 43.49 | | | | 27.37 | | | | n/a | | | | n/a | | | | n/a | |
Allowance for loan losses / nonperforming loans | | | 43.15 | | | | 75.45 | | | | n/a | | | | n/a | | | | n/a | |
Consumer | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses / total loans | | | 8.96 | % | | | 9.60 | % | | | n/a | | | | n/a | | | | n/a | |
Net charge-offs / average loans (annualized) | | | 4.20 | | | | 2.17 | | | | n/a | | | | n/a | | | | n/a | |
Nonperforming loans / total loans | | | 2.87 | | | | 2.09 | | | | n/a | | | | n/a | | | | n/a | |
Allowance for loan losses / nonperforming loans | | | 312.09 | | | | 458.88 | | | | n/a | | | | n/a | | | | n/a | |
See Selected Financial Highlights for footnotes.
