|
Delaware
|
|
06-1187536
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
þ
|
|
Accelerated filer
|
o
|
|
Non-accelerated filer
|
o
|
|
Smaller reporting company
|
o
|
|
|
|
Page No.
|
|
|
|
Key to Defined Terms
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
Agency CMBS
|
Agency commercial mortgage-backed securities
|
Agency CMO
|
Agency collateralized mortgage obligations
|
Agency MBS
|
Agency mortgage-backed securities
|
ALCO
|
Webster Financial Corporation's Asset/Liability Management Committee
|
ALLL
|
Allowance for loan and lease losses
|
AOCL
|
Accumulated other comprehensive loss, net of tax
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Basel III
|
Capital rules under a global regulatory framework developed by the Basel Committee on Banking Supervision
|
CCRP
|
Composite Credit Risk Profile
|
CDI
|
Core deposit intangible assets
|
CET1 capital
|
Common Equity Tier 1 Capital as defined by Basel III capital rules
|
CLO
|
Collateralized loan obligations
|
CMBS
|
Non-agency commercial mortgage-backed securities
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Financial Industry Regulatory Authority
|
FICO
|
Fair Isaac Corporation
|
FINRA
|
Financial Industry Regulatory Authority
|
FRB
|
Board of Governors that oversee the Federal Reserve System and establishes monetary policy
|
FTP
|
Funds Transfer Pricing, a matched maturity funding concept used by Webster Financial Corporation
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
Holding Company
|
Webster Financial Corporation
|
ISDA
|
International Swap Derivative Association
|
LBP
|
Look back period
|
LEP
|
Loss emergence period
|
LIBOR
|
London Interbank Offered Rate
|
LPL
|
LPL Financial Holdings Inc.
|
NII
|
Net interest income
|
OCC
|
Office of the Comptroller of the Currency
|
OCI/(L)
|
Other comprehensive income (loss)
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary impairment
|
PPNR
|
Pre-tax, pre-provision earnings
|
RPA
|
Risk participation agreements
|
SEC
|
United States Securities and Exchange Commission
|
Series E Preferred Stock
|
Webster Financial Corporation's 6.40% Non-Cumulative Perpetual Preferred Stock, par value $0.01, Series E, $25,000 liquidation preference
|
SIPC
|
Securities Investor Protection Corporation
|
TDR
|
Troubled debt restructurings, as defined in ASC 310-40
|
VIE
|
Variable interest entities, as defined in ASC 810-10
|
Webster Bank
|
Webster Bank, National Association, a wholly-owned subsidiary of Webster Financial Corporation
|
Webster or the Company
|
Webster Financial Corporation, collectively with its consolidated subsidiaries
|
WIS
|
Webster Investment Services, Inc., a wholly-owned subsidiary of Webster Bank
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
(In thousands, except share data)
|
(Unaudited)
|
|
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
224,964
|
|
|
$
|
199,693
|
|
Interest-bearing deposits
|
38,091
|
|
|
155,907
|
|
||
Securities available-for-sale
|
2,921,950
|
|
|
2,984,631
|
|
||
Securities held-to-maturity (fair value of $4,027,754 and $3,961,534)
|
3,920,974
|
|
|
3,923,052
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
185,104
|
|
|
188,347
|
|
||
Loans held for sale (valued under fair value option $53,163 and $0)
|
53,353
|
|
|
37,091
|
|
||
Loans and leases
|
16,272,029
|
|
|
15,671,735
|
|
||
Allowance for loan and lease losses
|
(180,428
|
)
|
|
(174,990
|
)
|
||
Loans and leases, net
|
16,091,601
|
|
|
15,496,745
|
|
||
Deferred tax asset, net
|
79,886
|
|
|
101,578
|
|
||
Premises and equipment, net
|
134,482
|
|
|
129,426
|
|
||
Goodwill
|
538,373
|
|
|
538,373
|
|
||
Other intangible assets, net
|
36,249
|
|
|
39,326
|
|
||
Cash surrender value of life insurance policies
|
510,410
|
|
|
503,093
|
|
||
Accrued interest receivable and other assets
|
385,029
|
|
|
343,856
|
|
||
Total assets
|
$
|
25,120,466
|
|
|
$
|
24,641,118
|
|
Liabilities and shareholders' equity:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
3,958,484
|
|
|
$
|
3,713,063
|
|
Interest-bearing
|
14,869,984
|
|
|
14,239,715
|
|
||
Total deposits
|
18,828,468
|
|
|
17,952,778
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
899,691
|
|
|
1,151,400
|
|
||
Federal Home Loan Bank advances
|
2,463,057
|
|
|
2,664,139
|
|
||
Long-term debt
|
225,387
|
|
|
225,260
|
|
||
Accrued expenses and other liabilities
|
226,897
|
|
|
233,581
|
|
||
Total liabilities
|
22,643,500
|
|
|
22,227,158
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, $.01 par value; Authorized - 3,000,000 shares:
|
|
|
|
||||
Series E issued and outstanding (5,060 shares)
|
122,710
|
|
|
122,710
|
|
||
Common stock, $.01 par value; Authorized - 200,000,000 shares:
|
|
|
|
||||
Issued (93,651,601 shares)
|
937
|
|
|
937
|
|
||
Paid-in capital
|
1,125,446
|
|
|
1,124,325
|
|
||
Retained earnings
|
1,365,549
|
|
|
1,315,948
|
|
||
Treasury stock, at cost (2,173,044 and 2,090,409 shares)
|
(80,165
|
)
|
|
(71,854
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(57,511
|
)
|
|
(78,106
|
)
|
||
Total shareholders' equity
|
2,476,966
|
|
|
2,413,960
|
|
||
Total liabilities and shareholders' equity
|
$
|
25,120,466
|
|
|
$
|
24,641,118
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands, except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest Income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans and leases
|
$
|
152,171
|
|
|
$
|
135,694
|
|
|
$
|
301,979
|
|
|
$
|
266,417
|
|
Taxable interest and dividends on securities
|
45,311
|
|
|
46,857
|
|
|
93,350
|
|
|
94,509
|
|
||||
Non-taxable interest on securities
|
4,656
|
|
|
3,987
|
|
|
8,871
|
|
|
8,014
|
|
||||
Loans held for sale
|
293
|
|
|
432
|
|
|
566
|
|
|
942
|
|
||||
Total interest income
|
202,431
|
|
|
186,970
|
|
|
404,766
|
|
|
369,882
|
|
||||
Interest Expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
12,374
|
|
|
11,533
|
|
|
24,673
|
|
|
23,075
|
|
||||
Securities sold under agreements to repurchase and other borrowings
|
3,379
|
|
|
4,186
|
|
|
7,552
|
|
|
8,573
|
|
||||
Federal Home Loan Bank advances
|
7,291
|
|
|
5,329
|
|
|
14,538
|
|
|
10,150
|
|
||||
Long-term debt
|
2,482
|
|
|
2,411
|
|
|
4,946
|
|
|
4,809
|
|
||||
Total interest expense
|
25,526
|
|
|
23,459
|
|
|
51,709
|
|
|
46,607
|
|
||||
Net interest income
|
176,905
|
|
|
163,511
|
|
|
353,057
|
|
|
323,275
|
|
||||
Provision for loan and lease losses
|
14,000
|
|
|
12,750
|
|
|
29,600
|
|
|
22,500
|
|
||||
Net interest income after provision for loan and lease losses
|
162,905
|
|
|
150,761
|
|
|
323,457
|
|
|
300,775
|
|
||||
Non-interest Income:
|
|
|
|
|
|
|
|
||||||||
Deposit service fees
|
34,894
|
|
|
33,933
|
|
|
69,819
|
|
|
66,218
|
|
||||
Loan and lease related fees
|
7,074
|
|
|
5,729
|
|
|
12,749
|
|
|
11,408
|
|
||||
Wealth and investment services
|
7,204
|
|
|
8,784
|
|
|
14,399
|
|
|
16,673
|
|
||||
Mortgage banking activities
|
2,945
|
|
|
2,517
|
|
|
5,574
|
|
|
4,078
|
|
||||
Increase in cash surrender value of life insurance policies
|
3,664
|
|
|
3,197
|
|
|
7,317
|
|
|
6,349
|
|
||||
Gain on sale of investment securities, net
|
94
|
|
|
486
|
|
|
414
|
|
|
529
|
|
||||
Impairment loss on securities recognized in earnings
|
—
|
|
|
—
|
|
|
(149
|
)
|
|
—
|
|
||||
Other income
|
9,200
|
|
|
4,599
|
|
|
17,326
|
|
|
11,551
|
|
||||
Total non-interest income
|
65,075
|
|
|
59,245
|
|
|
127,449
|
|
|
116,806
|
|
||||
Non-interest Expense:
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
80,231
|
|
|
74,043
|
|
|
160,540
|
|
|
144,907
|
|
||||
Occupancy
|
14,842
|
|
|
11,680
|
|
|
29,095
|
|
|
25,276
|
|
||||
Technology and equipment
|
19,376
|
|
|
20,315
|
|
|
39,314
|
|
|
39,560
|
|
||||
Intangible assets amortization
|
1,523
|
|
|
1,843
|
|
|
3,077
|
|
|
3,131
|
|
||||
Marketing
|
4,669
|
|
|
4,245
|
|
|
9,593
|
|
|
8,421
|
|
||||
Professional and outside services
|
3,754
|
|
|
2,875
|
|
|
6,565
|
|
|
5,328
|
|
||||
Deposit insurance
|
6,633
|
|
|
5,492
|
|
|
13,419
|
|
|
11,733
|
|
||||
Other expense
|
21,750
|
|
|
17,044
|
|
|
43,620
|
|
|
33,268
|
|
||||
Total non-interest expense
|
152,778
|
|
|
137,537
|
|
|
305,223
|
|
|
271,624
|
|
||||
Income before income tax expense
|
75,202
|
|
|
72,469
|
|
|
145,683
|
|
|
145,957
|
|
||||
Income tax expense
|
24,599
|
|
|
20,426
|
|
|
48,033
|
|
|
44,410
|
|
||||
Net income
|
50,603
|
|
|
52,043
|
|
|
97,650
|
|
|
101,547
|
|
||||
Preferred stock dividends and other
|
(2,205
|
)
|
|
(2,224
|
)
|
|
(4,368
|
)
|
|
(5,014
|
)
|
||||
Earnings applicable to common shareholders
|
$
|
48,398
|
|
|
$
|
49,819
|
|
|
$
|
93,282
|
|
|
$
|
96,533
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
1.02
|
|
|
$
|
1.07
|
|
Diluted
|
0.53
|
|
|
0.55
|
|
|
1.02
|
|
|
1.06
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
$
|
50,603
|
|
|
$
|
52,043
|
|
|
$
|
97,650
|
|
|
$
|
101,547
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Total available-for-sale and transferred securities
|
11,265
|
|
|
(13,927
|
)
|
|
18,770
|
|
|
(6,960
|
)
|
||||
Total derivative instruments
|
526
|
|
|
2,331
|
|
|
(426
|
)
|
|
561
|
|
||||
Total defined benefit pension and other postretirement benefit plans
|
1,095
|
|
|
991
|
|
|
2,251
|
|
|
1,965
|
|
||||
Other comprehensive income (loss), net of tax
|
12,886
|
|
|
(10,605
|
)
|
|
20,595
|
|
|
(4,434
|
)
|
||||
Comprehensive income
|
$
|
63,489
|
|
|
$
|
41,438
|
|
|
$
|
118,245
|
|
|
$
|
97,113
|
|
(In thousands, except per share data)
|
Preferred
Stock
|
Common
Stock
|
Paid-In
Capital
|
Retained
Earnings
|
Treasury
Stock, at cost
|
Accumulated
Other
Comprehensive
Loss, Net of Tax
|
Total
Shareholders'
Equity
|
||||||||||||||
Balance at December 31, 2015
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,124,325
|
|
$
|
1,315,948
|
|
$
|
(71,854
|
)
|
$
|
(78,106
|
)
|
$
|
2,413,960
|
|
Net income
|
—
|
|
—
|
|
—
|
|
97,650
|
|
—
|
|
—
|
|
97,650
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20,595
|
|
20,595
|
|
|||||||
Dividends and dividend equivalents declared on common stock $0.48 per share
|
—
|
|
—
|
|
70
|
|
(44,124
|
)
|
—
|
|
—
|
|
(44,054
|
)
|
|||||||
Dividends on Series E preferred stock $800.00 per share
|
—
|
|
—
|
|
—
|
|
(4,048
|
)
|
—
|
|
—
|
|
(4,048
|
)
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,265
|
|
123
|
|
5,254
|
|
—
|
|
7,642
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(1,051
|
)
|
—
|
|
2,824
|
|
—
|
|
1,773
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,183
|
)
|
—
|
|
(5,183
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,206
|
)
|
—
|
|
(11,206
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(163
|
)
|
—
|
|
—
|
|
—
|
|
(163
|
)
|
|||||||
Balance at June 30, 2016
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,125,446
|
|
$
|
1,365,549
|
|
$
|
(80,165
|
)
|
$
|
(57,511
|
)
|
$
|
2,476,966
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In thousands, except per share data)
|
Preferred
Stock
|
Common
Stock
|
Paid-In
Capital
|
Retained
Earnings
|
Treasury
Stock, at cost
|
Accumulated
Other
Comprehensive
Loss, Net of Tax
|
Total
Shareholders'
Equity
|
||||||||||||||
Balance at December 31, 2014
|
$
|
151,649
|
|
$
|
936
|
|
$
|
1,127,534
|
|
$
|
1,202,251
|
|
$
|
(103,294
|
)
|
$
|
(56,261
|
)
|
$
|
2,322,815
|
|
Net income
|
—
|
|
—
|
|
—
|
|
101,547
|
|
—
|
|
—
|
|
101,547
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,434
|
)
|
(4,434
|
)
|
|||||||
Dividends and dividend equivalents declared on common stock $0.43 per share
|
—
|
|
—
|
|
56
|
|
(39,051
|
)
|
—
|
|
—
|
|
(38,995
|
)
|
|||||||
Dividends on Series A preferred stock $21.25 per share
|
—
|
|
—
|
|
—
|
|
(615
|
)
|
—
|
|
—
|
|
(615
|
)
|
|||||||
Dividends on Series E preferred stock $800.00 per share
|
—
|
|
—
|
|
—
|
|
(4,048
|
)
|
—
|
|
—
|
|
(4,048
|
)
|
|||||||
Preferred stock conversion
|
(28,939
|
)
|
—
|
|
(3,429
|
)
|
—
|
|
32,368
|
|
—
|
|
—
|
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,384
|
|
(672
|
)
|
5,257
|
|
—
|
|
6,969
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(2,047
|
)
|
—
|
|
4,524
|
|
—
|
|
2,477
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,074
|
)
|
—
|
|
(4,074
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,625
|
)
|
—
|
|
(2,625
|
)
|
|||||||
Balance at June 30, 2015
|
$
|
122,710
|
|
$
|
936
|
|
$
|
1,124,498
|
|
$
|
1,259,412
|
|
$
|
(67,844
|
)
|
$
|
(60,695
|
)
|
$
|
2,379,017
|
|
|
Six months ended June 30,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
97,650
|
|
|
$
|
101,547
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for loan and lease losses
|
29,600
|
|
|
22,500
|
|
||
Deferred tax expense (benefit)
|
10,632
|
|
|
(1,255
|
)
|
||
Depreciation and amortization
|
17,930
|
|
|
16,872
|
|
||
Amortization of earning assets and funding, premium/discount, net
|
27,449
|
|
|
27,323
|
|
||
Stock-based compensation
|
5,614
|
|
|
5,276
|
|
||
Gain on sale, net of write-down, on foreclosed and repossessed assets
|
(791
|
)
|
|
(2
|
)
|
||
Gain on sale, net of write-down, on premises and equipment
|
(20
|
)
|
|
(315
|
)
|
||
Impairment loss on securities recognized in earnings
|
149
|
|
|
—
|
|
||
Gain on the sale of investment securities, net
|
(414
|
)
|
|
(529
|
)
|
||
Increase in cash surrender value of life insurance policies
|
(7,317
|
)
|
|
(6,349
|
)
|
||
Mortgage banking activities
|
(5,574
|
)
|
|
(4,078
|
)
|
||
Proceeds from sale of loans held for sale
|
170,572
|
|
|
208,499
|
|
||
Origination of loans held for sale
|
(182,329
|
)
|
|
(234,252
|
)
|
||
Net increase in accrued interest receivable and other assets
|
(42,473
|
)
|
|
(16,878
|
)
|
||
Net decrease in accrued expenses and other liabilities
|
(23,624
|
)
|
|
(17,549
|
)
|
||
Net cash provided by operating activities
|
97,054
|
|
|
100,810
|
|
||
Investing Activities:
|
|
|
|
||||
Net decrease (increase) in interest-bearing deposits
|
117,816
|
|
|
(9,388
|
)
|
||
Purchases of available for sale securities
|
(428,991
|
)
|
|
(449,616
|
)
|
||
Proceeds from maturities and principal payments of available for sale securities
|
271,331
|
|
|
347,637
|
|
||
Proceeds from sales of available for sale securities
|
259,004
|
|
|
63,143
|
|
||
Purchases of held-to-maturity securities
|
(311,420
|
)
|
|
(570,091
|
)
|
||
Proceeds from maturities and principal payments of held-to-maturity securities
|
298,796
|
|
|
364,292
|
|
||
Net proceeds of Federal Home Loan Bank stock
|
3,243
|
|
|
13,000
|
|
||
Net increase in loans
|
(640,922
|
)
|
|
(896,287
|
)
|
||
Proceeds from sale of loans not originated for sale
|
11,743
|
|
|
32,915
|
|
||
Proceeds from life insurance policies
|
—
|
|
|
3,912
|
|
||
Proceeds from the sale of foreclosed and repossessed assets
|
4,671
|
|
|
6,341
|
|
||
Proceeds from the sale of premises and equipment
|
750
|
|
|
650
|
|
||
Purchases of premises and equipment
|
(20,639
|
)
|
|
(15,849
|
)
|
||
Acquisition of business, net cash acquired
|
—
|
|
|
1,396,414
|
|
||
Net cash (used for) provided by investing activities
|
(434,618
|
)
|
|
287,073
|
|
|
Six months ended June 30,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Financing Activities:
|
|
|
|
||||
Net increase in deposits
|
875,997
|
|
|
195,685
|
|
||
Proceeds from Federal Home Loan Bank advances
|
10,125,000
|
|
|
6,175,000
|
|
||
Repayments of Federal Home Loan Bank advances
|
(10,326,076
|
)
|
|
(6,525,139
|
)
|
||
Net decrease in securities sold under agreements to repurchase and other borrowings
|
(251,709
|
)
|
|
(236,252
|
)
|
||
Dividends paid to common shareholders
|
(43,791
|
)
|
|
(38,830
|
)
|
||
Dividends paid to preferred shareholders
|
(4,048
|
)
|
|
(4,663
|
)
|
||
Exercise of stock options
|
1,773
|
|
|
2,477
|
|
||
Excess tax benefits from stock-based compensation
|
2,241
|
|
|
1,927
|
|
||
Common shares acquired related to stock compensation plan activity
|
(5,183
|
)
|
|
(4,074
|
)
|
||
Common stock repurchase program
|
(11,206
|
)
|
|
(2,625
|
)
|
||
Common stock warrants repurchased
|
(163
|
)
|
|
—
|
|
||
Net cash provided by (used for) financing activities
|
362,835
|
|
|
(436,494
|
)
|
||
Net increase (decrease) in cash and due from banks
|
25,271
|
|
|
(48,611
|
)
|
||
Cash and due from banks at beginning of period
|
199,693
|
|
|
213,914
|
|
||
Cash and due from banks at end of period
|
$
|
224,964
|
|
|
$
|
165,303
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
51,527
|
|
|
$
|
47,219
|
|
Income taxes paid
|
43,093
|
|
|
58,146
|
|
||
Noncash investing and financing activities:
|
|
|
|
||||
Transfer of loans from portfolio to loans-held-for-sale
|
$
|
11,892
|
|
|
$
|
—
|
|
Transfer of loans and leases to foreclosed properties and repossessed assets
|
3,285
|
|
|
4,792
|
|
||
Deposits assumed in business acquisition
|
—
|
|
|
1,446,899
|
|
||
Preferred stock conversion
|
—
|
|
|
28,939
|
|
(In thousands)
|
March 31,
2016
|
December 31,
2015
|
September 30,
2015
(1)
|
June 30,
2015
(1)
|
March 31,
2015
(1)
|
||||||||||
As Reported
|
|
|
|
|
|
||||||||||
Accrued interest receivable and other assets
|
$
|
415,552
|
|
$
|
345,625
|
|
$
|
341,132
|
|
$
|
302,603
|
|
$
|
319,922
|
|
Accrued expenses and other liabilities
|
274,416
|
|
233,739
|
|
187,632
|
|
172,193
|
|
257,556
|
|
|||||
Retained earnings
|
1,342,930
|
|
1,317,559
|
|
1,288,261
|
|
1,260,090
|
|
1,230,816
|
|
|||||
|
|
|
|
|
|
||||||||||
As Revised
|
|
|
|
|
|
||||||||||
Accrued interest receivable and other assets
|
$
|
412,134
|
|
$
|
343,856
|
|
$
|
340,033
|
|
$
|
301,666
|
|
$
|
319,593
|
|
Accrued expenses and other liabilities
|
274,179
|
|
233,581
|
|
187,377
|
|
171,934
|
|
257,444
|
|
|||||
Retained earnings
|
1,339,749
|
|
1,315,948
|
|
1,287,417
|
|
1,259,412
|
|
1,230,599
|
|
|
Three months ended
|
|
Full Year
|
|
Three months ended
|
|||||||||||||||
(In thousands)
|
March 31,
2016
|
|
December 31, 2015
|
|
December 31, 2015
(2)
|
September 30,
2015
|
June 30,
2015
|
March 31,
2015
|
||||||||||||
Consolidated:
|
|
|
|
|
|
|
|
|
||||||||||||
As Reported
|
|
|
|
|
|
|
|
|
||||||||||||
Deposit service fees
|
$
|
36,382
|
|
|
$
|
136,578
|
|
|
$
|
34,231
|
|
$
|
35,229
|
|
$
|
34,493
|
|
$
|
32,625
|
|
Other income
|
8,319
|
|
|
23,573
|
|
|
6,474
|
|
5,513
|
|
4,645
|
|
6,941
|
|
||||||
Technology and equipment
|
19,235
|
|
|
80,026
|
|
|
19,218
|
|
21,336
|
|
20,224
|
|
19,248
|
|
||||||
Income tax expense
|
24,217
|
|
|
93,976
|
|
|
24,146
|
|
25,075
|
|
20,663
|
|
24,092
|
|
||||||
Net income
|
48,617
|
|
|
206,340
|
|
|
52,579
|
|
51,536
|
|
52,503
|
|
49,722
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
0.51
|
|
|
$
|
2.17
|
|
|
$
|
0.55
|
|
$
|
0.54
|
|
$
|
0.55
|
|
$
|
0.52
|
|
Diluted
|
0.51
|
|
|
2.15
|
|
|
0.55
|
|
0.54
|
|
0.55
|
|
0.52
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
As Revised
|
|
|
|
|
|
|
|
|
||||||||||||
Deposit service fees
|
$
|
34,925
|
|
|
$
|
135,058
|
|
|
$
|
33,676
|
|
$
|
35,164
|
|
$
|
33,933
|
|
$
|
32,285
|
|
Other income
|
8,126
|
|
|
23,327
|
|
|
6,361
|
|
5,415
|
|
4,599
|
|
6,952
|
|
||||||
Technology and equipment
|
19,938
|
|
|
80,813
|
|
|
19,834
|
|
21,419
|
|
20,315
|
|
19,245
|
|
||||||
Income tax expense
|
23,434
|
|
|
93,032
|
|
|
23,627
|
|
24,995
|
|
20,426
|
|
23,984
|
|
||||||
Net income
|
47,047
|
|
|
204,730
|
|
|
51,813
|
|
51,370
|
|
52,043
|
|
49,504
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
0.49
|
|
|
$
|
2.15
|
|
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.55
|
|
$
|
0.52
|
|
Diluted
|
0.49
|
|
|
2.13
|
|
|
0.54
|
|
0.53
|
|
0.55
|
|
0.51
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
HSA Segment:
|
|
|
|
|
|
|
|
|
||||||||||||
As Reported
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
11,995
|
|
|
$
|
39,173
|
|
|
$
|
11,146
|
|
$
|
9,564
|
|
$
|
9,936
|
|
$
|
8,527
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As Revised
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
10,424
|
|
|
$
|
37,446
|
|
|
$
|
10,284
|
|
$
|
9,404
|
|
$
|
9,448
|
|
$
|
8,310
|
|
•
|
ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis;
|
•
|
ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs;
|
•
|
ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) (a consensus of the FASB Emerging Issues Task Force); and
|
•
|
ASU No. 2015-16, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement - Period Adjustments.
|
ASU
|
Description
|
Effective Date and Financial Statement Impact
|
ASU No. 2016-02, Leases (Topic 842).
|
The Update introduces a lessee model that brings most leases on the balance sheet. The Update also aligns certain of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., evaluating how collectability should be considered and determining when profit can be recognized).
Furthermore, the Update addresses other concerns including the elimination of the required use of bright-line tests for determining lease classification. Lessors are required to provide additional transparency into the exposure to the changes in value of their residual assets and how they manage that exposure.
|
The Company intends to adopt the Update for the first quarter of 2019 and is in the process of assessing the impact on its financial statements.
|
ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.
|
Equity investments not accounted for under the equity method or those that do not result in consolidation of the investee are to be measured at fair value with changes in the fair value recognized through net income. Entities are to present separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when an election to measure the liability at fair value in accordance with the fair value option for financial instruments has been made. Also, the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet has been eliminated.
|
The Company intends to adopt the Update for the first quarter of 2018 and is in the process of assessing the impact on its financial statements.
|
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606)
ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606)
|
A single comprehensive model has been established for an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, and will supersede nearly all existing revenue recognition guidance, and clarify and converge revenue recognition principles under GAAP and International Financial Reporting Standards. The five steps to recognizing revenue: (i) identify the contracts with the customer; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the separate performance obligations; and (v) recognize revenue when each performance obligation is satisfied. The most significant potential impact to banking entities relates to less prescriptive derecognition requirements on the sale of owned real estate properties. An entity may elect either a full retrospective or a modified retrospective application. ASU No. 2015-14 -
Revenue from Contracts with Customers (Topic 606),
defers the effective date to annual and interim periods beginning after December 15, 2017.
|
The Company intends to adopt the Update for the first quarter of 2018. Adoption is not anticipated to have a material impact on the Company's financial statements.
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair Value
|
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair Value
|
||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
984
|
|
$
|
—
|
|
$
|
—
|
|
$
|
984
|
|
|
$
|
924
|
|
$
|
—
|
|
$
|
—
|
|
$
|
924
|
|
Agency CMO
|
471,442
|
|
9,889
|
|
(746
|
)
|
480,585
|
|
|
546,168
|
|
5,532
|
|
(2,946
|
)
|
548,754
|
|
||||||||
Agency MBS
|
1,020,733
|
|
10,815
|
|
(3,192
|
)
|
1,028,356
|
|
|
1,075,941
|
|
6,459
|
|
(17,291
|
)
|
1,065,109
|
|
||||||||
Agency CMBS
|
317,146
|
|
4,238
|
|
(40
|
)
|
321,344
|
|
|
215,670
|
|
639
|
|
(959
|
)
|
215,350
|
|
||||||||
CMBS
|
487,778
|
|
6,168
|
|
(2,539
|
)
|
491,407
|
|
|
574,686
|
|
7,485
|
|
(2,905
|
)
|
579,266
|
|
||||||||
CLO
|
464,350
|
|
1,116
|
|
(3,346
|
)
|
462,120
|
|
|
431,837
|
|
592
|
|
(3,270
|
)
|
429,159
|
|
||||||||
Single issuer trust preferred securities
|
42,264
|
|
—
|
|
(5,491
|
)
|
36,773
|
|
|
42,168
|
|
—
|
|
(4,998
|
)
|
37,170
|
|
||||||||
Corporate debt securities
|
97,780
|
|
2,601
|
|
—
|
|
100,381
|
|
|
104,031
|
|
2,290
|
|
—
|
|
106,321
|
|
||||||||
Equities - financial services
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,499
|
|
—
|
|
(921
|
)
|
2,578
|
|
||||||||
Securities available-for-sale
|
$
|
2,902,477
|
|
$
|
34,827
|
|
$
|
(15,354
|
)
|
$
|
2,921,950
|
|
|
$
|
2,994,924
|
|
$
|
22,997
|
|
$
|
(33,290
|
)
|
$
|
2,984,631
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
356,143
|
|
$
|
6,758
|
|
$
|
(99
|
)
|
$
|
362,802
|
|
|
$
|
407,494
|
|
$
|
3,717
|
|
$
|
(2,058
|
)
|
$
|
409,153
|
|
Agency MBS
|
1,990,269
|
|
49,094
|
|
(1,900
|
)
|
2,037,463
|
|
|
2,030,176
|
|
38,813
|
|
(19,908
|
)
|
2,049,081
|
|
||||||||
Agency CMBS
|
658,551
|
|
18,939
|
|
—
|
|
677,490
|
|
|
686,086
|
|
4,253
|
|
(325
|
)
|
690,014
|
|
||||||||
Municipal bonds and notes
|
548,955
|
|
20,865
|
|
(21
|
)
|
569,799
|
|
|
435,905
|
|
12,019
|
|
(417
|
)
|
447,507
|
|
||||||||
CMBS
|
364,644
|
|
13,133
|
|
(9
|
)
|
377,768
|
|
|
360,018
|
|
5,046
|
|
(2,704
|
)
|
362,360
|
|
||||||||
Private Label MBS
|
2,412
|
|
20
|
|
—
|
|
2,432
|
|
|
3,373
|
|
46
|
|
—
|
|
3,419
|
|
||||||||
Securities held-to-maturity
|
$
|
3,920,974
|
|
$
|
108,809
|
|
$
|
(2,029
|
)
|
$
|
4,027,754
|
|
|
$
|
3,923,052
|
|
$
|
63,894
|
|
$
|
(25,412
|
)
|
$
|
3,961,534
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
3,437
|
|
|
$
|
3,597
|
|
|
$
|
3,288
|
|
|
$
|
3,696
|
|
Reduction for securities sold or called
|
—
|
|
|
(419
|
)
|
|
—
|
|
|
(518
|
)
|
||||
Additions for OTTI not previously recognized
|
—
|
|
|
—
|
|
|
149
|
|
|
—
|
|
||||
Ending balance
|
$
|
3,437
|
|
|
$
|
3,178
|
|
|
$
|
3,437
|
|
|
$
|
3,178
|
|
|
At June 30, 2016
|
||||||||||||||||||||
|
Less Than Twelve Months
|
|
Twelve Months or Longer
|
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
|
Fair
Value
|
Unrealized
Losses
|
|
# of
Holdings
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
6,303
|
|
$
|
(6
|
)
|
|
$
|
77,025
|
|
$
|
(740
|
)
|
|
5
|
$
|
83,328
|
|
$
|
(746
|
)
|
Agency MBS
|
38,822
|
|
(61
|
)
|
|
298,687
|
|
(3,131
|
)
|
|
47
|
337,509
|
|
(3,192
|
)
|
||||||
Agency CMBS
|
24,813
|
|
(40
|
)
|
|
—
|
|
—
|
|
|
2
|
24,813
|
|
(40
|
)
|
||||||
CMBS
|
61,580
|
|
(1,159
|
)
|
|
100,915
|
|
(1,380
|
)
|
|
22
|
162,495
|
|
(2,539
|
)
|
||||||
CLO
|
115,216
|
|
(944
|
)
|
|
120,084
|
|
(2,402
|
)
|
|
14
|
235,300
|
|
(3,346
|
)
|
||||||
Single issuer trust preferred securities
|
4,177
|
|
(52
|
)
|
|
32,596
|
|
(5,439
|
)
|
|
8
|
36,773
|
|
(5,491
|
)
|
||||||
Equities - financial services
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
—
|
|
||||||
Total available-for-sale in an unrealized loss position
|
$
|
250,911
|
|
$
|
(2,262
|
)
|
|
$
|
629,307
|
|
$
|
(13,092
|
)
|
|
98
|
$
|
880,218
|
|
$
|
(15,354
|
)
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
—
|
|
$
|
—
|
|
|
$
|
20,179
|
|
$
|
(99
|
)
|
|
2
|
$
|
20,179
|
|
$
|
(99
|
)
|
Agency MBS
|
2,503
|
|
(4
|
)
|
|
377,495
|
|
(1,896
|
)
|
|
30
|
379,998
|
|
(1,900
|
)
|
||||||
Agency CMBS
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
—
|
|
||||||
Municipal bonds and notes
|
—
|
|
—
|
|
|
3,359
|
|
(21
|
)
|
|
11
|
3,359
|
|
(21
|
)
|
||||||
CMBS
|
1,589
|
|
(1
|
)
|
|
8,044
|
|
(8
|
)
|
|
2
|
9,633
|
|
(9
|
)
|
||||||
Total held-to-maturity in an unrealized loss position
|
$
|
4,092
|
|
$
|
(5
|
)
|
|
$
|
409,077
|
|
$
|
(2,024
|
)
|
|
45
|
$
|
413,169
|
|
$
|
(2,029
|
)
|
|
At December 31, 2015
|
||||||||||||||||||||
|
Less Than Twelve Months
|
|
Twelve Months or Longer
|
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
|
Fair
Value
|
Unrealized
Losses
|
|
# of
Holdings
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
195,369
|
|
$
|
(2,195
|
)
|
|
$
|
26,039
|
|
$
|
(751
|
)
|
|
14
|
$
|
221,408
|
|
$
|
(2,946
|
)
|
Agency MBS
|
481,839
|
|
(6,386
|
)
|
|
351,911
|
|
(10,905
|
)
|
|
84
|
833,750
|
|
(17,291
|
)
|
||||||
Agency CMBS
|
124,241
|
|
(959
|
)
|
|
—
|
|
—
|
|
|
7
|
124,241
|
|
(959
|
)
|
||||||
CMBS
|
276,330
|
|
(2,879
|
)
|
|
19,382
|
|
(26
|
)
|
|
29
|
295,712
|
|
(2,905
|
)
|
||||||
CLO
|
211,515
|
|
(2,709
|
)
|
|
15,708
|
|
(561
|
)
|
|
13
|
227,223
|
|
(3,270
|
)
|
||||||
Single issuer trust preferred securities
|
4,087
|
|
(128
|
)
|
|
33,083
|
|
(4,870
|
)
|
|
8
|
37,170
|
|
(4,998
|
)
|
||||||
Equities - financial services
|
2,578
|
|
(921
|
)
|
|
—
|
|
—
|
|
|
1
|
2,578
|
|
(921
|
)
|
||||||
Total available-for-sale in an unrealized loss position
|
$
|
1,295,959
|
|
$
|
(16,177
|
)
|
|
$
|
446,123
|
|
$
|
(17,113
|
)
|
|
156
|
$
|
1,742,082
|
|
$
|
(33,290
|
)
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
143,364
|
|
$
|
(1,304
|
)
|
|
$
|
27,928
|
|
$
|
(754
|
)
|
|
13
|
$
|
171,292
|
|
$
|
(2,058
|
)
|
Agency MBS
|
551,918
|
|
(7,089
|
)
|
|
470,828
|
|
(12,819
|
)
|
|
87
|
1,022,746
|
|
(19,908
|
)
|
||||||
Agency CMBS
|
110,864
|
|
(325
|
)
|
|
—
|
|
—
|
|
|
7
|
110,864
|
|
(325
|
)
|
||||||
Municipal bonds and notes
|
29,034
|
|
(130
|
)
|
|
13,829
|
|
(287
|
)
|
|
27
|
42,863
|
|
(417
|
)
|
||||||
CMBS
|
142,382
|
|
(1,983
|
)
|
|
30,129
|
|
(721
|
)
|
|
18
|
172,511
|
|
(2,704
|
)
|
||||||
Total held-to-maturity in an unrealized loss position
|
$
|
977,562
|
|
$
|
(10,831
|
)
|
|
$
|
542,714
|
|
$
|
(14,581
|
)
|
|
152
|
$
|
1,520,276
|
|
$
|
(25,412
|
)
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Proceeds from sales
|
$
|
216,071
|
|
|
$
|
34,965
|
|
|
$
|
259,273
|
|
|
$
|
34,965
|
|
|
|
|
|
|
|
|
|
||||||||
Gross realized gains on sales
|
$
|
2,504
|
|
|
$
|
486
|
|
|
$
|
2,891
|
|
|
$
|
529
|
|
Less: Gross realized losses on sales
|
2,410
|
|
|
—
|
|
|
2,477
|
|
|
—
|
|
||||
Gain on sale of investment securities, net
|
$
|
94
|
|
|
$
|
486
|
|
|
$
|
414
|
|
|
$
|
529
|
|
|
At June 30, 2016
|
||||||||||||
|
|
|
|
||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Due in one year or less
|
$
|
984
|
|
$
|
984
|
|
|
$
|
20,725
|
|
$
|
20,838
|
|
Due after one year through five years
|
97,780
|
|
100,381
|
|
|
25,989
|
|
26,508
|
|
||||
Due after five through ten years
|
516,512
|
|
516,139
|
|
|
39,146
|
|
40,512
|
|
||||
Due after ten years
|
2,287,201
|
|
2,304,446
|
|
|
3,835,114
|
|
3,939,896
|
|
||||
Total debt securities
|
$
|
2,902,477
|
|
$
|
2,921,950
|
|
|
$
|
3,920,974
|
|
$
|
4,027,754
|
|
•
|
the power to direct the activities of the VIE that most significantly affect the VIE's economic performance; and
|
•
|
an obligation to absorb losses of the VIE, or the right to receive benefits from the VIE, that could potentially be significant to the VIE.
|
(In thousands)
|
At June 30,
2016 |
|
At December 31, 2015
|
||||
Residential
|
$
|
4,156,665
|
|
|
$
|
4,061,001
|
|
Consumer
|
2,728,452
|
|
|
2,702,560
|
|
||
Commercial
|
4,577,482
|
|
|
4,315,999
|
|
||
Commercial Real Estate
|
4,191,087
|
|
|
3,991,649
|
|
||
Equipment Financing
|
618,343
|
|
|
600,526
|
|
||
Loans and leases
(1) (2)
|
$
|
16,272,029
|
|
|
$
|
15,671,735
|
|
(1)
|
Loans and leases include net deferred fees and net premiums and discounts of
$20.0 million
and
$18.0 million
at
June 30, 2016
and
December 31, 2015
, respectively.
|
(2)
|
At
June 30, 2016
, the Company had pledged
$6.1 billion
of eligible residential and consumer loans as collateral to support borrowing capacity at the FHLB Boston and the FRB of Boston.
|
|
At June 30, 2016
|
||||||||||||||||||||
(In thousands)
|
30-59 Days
Past Due and
Accruing
|
60-89 Days
Past Due and Accruing |
90 or More Days Past Due
and Accruing
|
Non-accrual
|
Total Past Due and Non-accrual
|
Current
|
Total Loans
and Leases |
||||||||||||||
Residential
|
$
|
7,497
|
|
$
|
2,145
|
|
$
|
—
|
|
$
|
52,528
|
|
$
|
62,170
|
|
$
|
4,094,495
|
|
$
|
4,156,665
|
|
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
7,893
|
|
3,343
|
|
—
|
|
36,230
|
|
47,466
|
|
2,380,719
|
|
2,428,185
|
|
|||||||
Other consumer
|
1,539
|
|
1,103
|
|
—
|
|
1,190
|
|
3,832
|
|
296,435
|
|
300,267
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial non-mortgage
|
1,813
|
|
242
|
|
5,739
|
|
28,662
|
|
36,456
|
|
3,761,980
|
|
3,798,436
|
|
|||||||
Asset-based
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
779,046
|
|
779,046
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
2,156
|
|
877
|
|
—
|
|
10,489
|
|
13,522
|
|
3,892,910
|
|
3,906,432
|
|
|||||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
3,450
|
|
3,450
|
|
281,205
|
|
284,655
|
|
|||||||
Equipment financing
|
239
|
|
166
|
|
—
|
|
480
|
|
885
|
|
617,458
|
|
618,343
|
|
|||||||
Total
|
$
|
21,137
|
|
$
|
7,876
|
|
$
|
5,739
|
|
$
|
133,029
|
|
$
|
167,781
|
|
$
|
16,104,248
|
|
$
|
16,272,029
|
|
|
At December 31, 2015
|
||||||||||||||||||||
(In thousands)
|
30-59 Days
Past Due and Accruing |
60-89 Days
Past Due and
Accruing
|
90 or More Days Past Due
and Accruing |
Non-accrual
|
Total Past Due and Non-accrual
|
Current
|
Total Loans
and Leases |
||||||||||||||
Residential
|
$
|
10,365
|
|
$
|
4,703
|
|
$
|
2,029
|
|
$
|
54,201
|
|
$
|
71,298
|
|
$
|
3,989,703
|
|
$
|
4,061,001
|
|
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
9,061
|
|
4,242
|
|
—
|
|
37,337
|
|
50,640
|
|
2,402,758
|
|
2,453,398
|
|
|||||||
Other consumer
|
1,390
|
|
615
|
|
—
|
|
560
|
|
2,565
|
|
246,597
|
|
249,162
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial non-mortgage
|
768
|
|
3,288
|
|
22
|
|
27,037
|
|
31,115
|
|
3,531,669
|
|
3,562,784
|
|
|||||||
Asset-based
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
753,215
|
|
753,215
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
1,624
|
|
625
|
|
—
|
|
16,767
|
|
19,016
|
|
3,673,408
|
|
3,692,424
|
|
|||||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
3,461
|
|
3,461
|
|
295,764
|
|
299,225
|
|
|||||||
Equipment financing
|
543
|
|
59
|
|
—
|
|
706
|
|
1,308
|
|
599,218
|
|
600,526
|
|
|||||||
Total
|
$
|
23,751
|
|
$
|
13,532
|
|
$
|
2,051
|
|
$
|
140,069
|
|
$
|
179,403
|
|
$
|
15,492,332
|
|
$
|
15,671,735
|
|
|
At or for the three months ended June 30, 2016
|
|||||||||||||||||
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
27,330
|
|
$
|
41,636
|
|
$
|
66,471
|
|
$
|
33,318
|
|
$
|
5,446
|
|
$
|
174,201
|
|
Provision (benefit) charged to expense
|
(2,412
|
)
|
4,682
|
|
10,560
|
|
1,087
|
|
83
|
|
14,000
|
|
||||||
Charge-offs
|
(638
|
)
|
(4,556
|
)
|
(3,525
|
)
|
(995
|
)
|
(70
|
)
|
(9,784
|
)
|
||||||
Recoveries
|
133
|
|
1,194
|
|
316
|
|
212
|
|
156
|
|
2,011
|
|
||||||
Balance, end of period
|
$
|
24,413
|
|
$
|
42,956
|
|
$
|
73,822
|
|
$
|
33,622
|
|
$
|
5,615
|
|
$
|
180,428
|
|
|
At or for the three months ended June 30, 2015
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
27,749
|
|
$
|
42,616
|
|
$
|
55,628
|
|
$
|
30,549
|
|
$
|
5,428
|
|
$
|
161,970
|
|
Provision (benefit) charged to expense
|
(2,194
|
)
|
995
|
|
12,625
|
|
1,258
|
|
66
|
|
12,750
|
|
||||||
Charge-offs
|
(1,461
|
)
|
(3,853
|
)
|
(2,541
|
)
|
(1,091
|
)
|
(15
|
)
|
(8,961
|
)
|
||||||
Recoveries
|
369
|
|
1,049
|
|
529
|
|
52
|
|
102
|
|
2,101
|
|
||||||
Balance, end of period
|
$
|
24,463
|
|
$
|
40,807
|
|
$
|
66,241
|
|
$
|
30,768
|
|
$
|
5,581
|
|
$
|
167,860
|
|
|
At or for the six months ended June 30, 2016
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
66,686
|
|
$
|
34,889
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Provision (benefit) charged to expense
|
(85
|
)
|
7,473
|
|
21,096
|
|
968
|
|
148
|
|
29,600
|
|
||||||
Charge-offs
|
(2,232
|
)
|
(8,977
|
)
|
(14,733
|
)
|
(2,521
|
)
|
(221
|
)
|
(28,684
|
)
|
||||||
Recoveries
|
854
|
|
2,408
|
|
773
|
|
286
|
|
201
|
|
4,522
|
|
||||||
Balance, end of period
|
$
|
24,413
|
|
$
|
42,956
|
|
$
|
73,822
|
|
$
|
33,622
|
|
$
|
5,615
|
|
$
|
180,428
|
|
Individually evaluated for impairment
|
$
|
10,018
|
|
$
|
3,027
|
|
$
|
6,422
|
|
$
|
1,649
|
|
$
|
17
|
|
$
|
21,133
|
|
Collectively evaluated for impairment
|
$
|
14,395
|
|
$
|
39,929
|
|
$
|
67,400
|
|
$
|
31,973
|
|
$
|
5,598
|
|
$
|
159,295
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
127,965
|
|
$
|
47,576
|
|
$
|
59,550
|
|
$
|
32,208
|
|
$
|
421
|
|
$
|
267,720
|
|
Collectively evaluated for impairment
|
4,028,700
|
|
2,680,876
|
|
4,517,932
|
|
4,158,879
|
|
617,922
|
|
16,004,309
|
|
||||||
Loans and leases
|
$
|
4,156,665
|
|
$
|
2,728,452
|
|
$
|
4,577,482
|
|
$
|
4,191,087
|
|
$
|
618,343
|
|
$
|
16,272,029
|
|
|
At or for the six months ended June 30, 2015
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
25,452
|
|
$
|
43,518
|
|
$
|
52,114
|
|
$
|
32,102
|
|
$
|
6,078
|
|
$
|
159,264
|
|
Provision (benefit) charged to expense
|
1,950
|
|
3,227
|
|
15,379
|
|
2,656
|
|
(712
|
)
|
22,500
|
|
||||||
Charge-offs
|
(3,416
|
)
|
(8,149
|
)
|
(2,796
|
)
|
(4,244
|
)
|
(30
|
)
|
(18,635
|
)
|
||||||
Recoveries
|
477
|
|
2,211
|
|
1,544
|
|
254
|
|
245
|
|
4,731
|
|
||||||
Balance, end of period
|
$
|
24,463
|
|
$
|
40,807
|
|
$
|
66,241
|
|
$
|
30,768
|
|
$
|
5,581
|
|
$
|
167,860
|
|
Individually evaluated for impairment
|
$
|
10,592
|
|
$
|
3,564
|
|
$
|
11,703
|
|
$
|
4,824
|
|
$
|
6
|
|
$
|
30,689
|
|
Collectively evaluated for impairment
|
$
|
13,871
|
|
$
|
37,243
|
|
$
|
54,538
|
|
$
|
25,944
|
|
$
|
5,575
|
|
$
|
137,171
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
138,810
|
|
$
|
49,119
|
|
$
|
54,811
|
|
$
|
59,063
|
|
$
|
120
|
|
$
|
301,923
|
|
Collectively evaluated for impairment
|
3,694,680
|
|
2,557,320
|
|
3,967,094
|
|
3,711,189
|
|
545,320
|
|
14,475,603
|
|
||||||
Loans and leases
|
$
|
3,833,490
|
|
$
|
2,606,439
|
|
$
|
4,021,905
|
|
$
|
3,770,252
|
|
$
|
545,440
|
|
$
|
14,777,526
|
|
|
At June 30, 2016
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded Investment |
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential
|
$
|
140,099
|
|
$
|
127,965
|
|
$
|
22,310
|
|
$
|
105,655
|
|
$
|
10,018
|
|
Consumer
|
53,265
|
|
47,576
|
|
24,409
|
|
23,167
|
|
3,027
|
|
|||||
Commercial
|
64,798
|
|
59,550
|
|
22,059
|
|
37,491
|
|
6,422
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
28,695
|
|
27,816
|
|
9,181
|
|
18,635
|
|
1,648
|
|
|||||
Commercial construction
|
5,450
|
|
4,392
|
|
4,380
|
|
12
|
|
1
|
|
|||||
Equipment financing
|
636
|
|
421
|
|
—
|
|
421
|
|
17
|
|
|||||
Total
|
$
|
292,943
|
|
$
|
267,720
|
|
$
|
82,339
|
|
$
|
185,381
|
|
$
|
21,133
|
|
|
At December 31, 2015
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded Investment |
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential
|
$
|
148,144
|
|
$
|
134,448
|
|
$
|
23,024
|
|
$
|
111,424
|
|
$
|
10,364
|
|
Consumer
|
56,680
|
|
48,425
|
|
25,130
|
|
23,295
|
|
3,477
|
|
|||||
Commercial
|
67,116
|
|
56,581
|
|
31,600
|
|
24,981
|
|
5,197
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
36,980
|
|
33,333
|
|
9,204
|
|
24,129
|
|
3,160
|
|
|||||
Commercial construction
|
7,010
|
|
5,962
|
|
5,939
|
|
23
|
|
3
|
|
|||||
Equipment financing
|
612
|
|
422
|
|
328
|
|
94
|
|
3
|
|
|||||
Total
|
$
|
316,542
|
|
$
|
279,171
|
|
$
|
95,225
|
|
$
|
183,946
|
|
$
|
22,204
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||
(In thousands)
|
Average
Recorded
Investment
|
Accrued
Interest
Income
|
Cash Basis Interest Income
|
|
Average
Recorded Investment |
Accrued
Interest Income |
Cash Basis Interest Income
|
|
Average
Recorded
Investment
|
Accrued
Interest Income |
Cash Basis Interest Income
|
|
Average
Recorded
Investment
|
Accrued
Interest Income |
Cash Basis Interest Income
|
||||||||||||||||||||||||
Residential
|
$
|
129,049
|
|
$
|
1,124
|
|
$
|
297
|
|
|
$
|
140,024
|
|
$
|
1,149
|
|
$
|
301
|
|
|
$
|
131,207
|
|
$
|
2,239
|
|
$
|
614
|
|
|
$
|
140,834
|
|
$
|
2,208
|
|
$
|
557
|
|
Consumer
|
47,836
|
|
344
|
|
257
|
|
|
50,037
|
|
362
|
|
274
|
|
|
48,001
|
|
693
|
|
516
|
|
|
49,807
|
|
723
|
|
556
|
|
||||||||||||
Commercial
|
62,199
|
|
475
|
|
—
|
|
|
52,324
|
|
247
|
|
—
|
|
|
58,066
|
|
947
|
|
—
|
|
|
45,741
|
|
674
|
|
—
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial real estate
|
28,737
|
|
149
|
|
—
|
|
|
60,071
|
|
357
|
|
—
|
|
|
30,575
|
|
297
|
|
—
|
|
|
74,594
|
|
887
|
|
—
|
|
||||||||||||
Commercial construction
|
5,177
|
|
34
|
|
—
|
|
|
6,160
|
|
33
|
|
—
|
|
|
5,177
|
|
69
|
|
—
|
|
|
6,166
|
|
66
|
|
—
|
|
||||||||||||
Equipment financing
|
717
|
|
1
|
|
—
|
|
|
376
|
|
2
|
|
—
|
|
|
422
|
|
2
|
|
—
|
|
|
376
|
|
13
|
|
—
|
|
||||||||||||
Total
|
$
|
273,715
|
|
$
|
2,127
|
|
$
|
554
|
|
|
$
|
308,992
|
|
$
|
2,150
|
|
$
|
575
|
|
|
$
|
273,448
|
|
$
|
4,247
|
|
$
|
1,130
|
|
|
$
|
317,518
|
|
$
|
4,571
|
|
$
|
1,113
|
|
|
Commercial
|
|
Commercial Real Estate
|
|
Equipment Financing
|
||||||||||||||||||
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
|
At June 30,
2016 |
|
At December 31,
2015 |
|
At June 30,
2016 |
|
At December 31,
2015 |
||||||||||||
(1) - (6) Pass
|
$
|
4,256,800
|
|
|
$
|
4,023,255
|
|
|
$
|
4,036,504
|
|
|
$
|
3,857,019
|
|
|
$
|
600,389
|
|
|
$
|
586,445
|
|
(7) Special Mention
|
120,395
|
|
|
70,904
|
|
|
62,502
|
|
|
55,030
|
|
|
30
|
|
|
1,628
|
|
||||||
(8) Substandard
|
199,404
|
|
|
220,389
|
|
|
91,878
|
|
|
79,289
|
|
|
17,924
|
|
|
12,453
|
|
||||||
(9) Doubtful
|
883
|
|
|
1,451
|
|
|
203
|
|
|
311
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
4,577,482
|
|
|
$
|
4,315,999
|
|
|
$
|
4,191,087
|
|
|
$
|
3,991,649
|
|
|
$
|
618,343
|
|
|
$
|
600,526
|
|
(Dollars in thousands)
|
At June 30, 2016
|
|
At December 31, 2015
|
||||
Accrual status
|
$
|
168,030
|
|
|
$
|
171,784
|
|
Non-accrual status
|
79,468
|
|
|
100,906
|
|
||
Total recorded investment of TDRs
(1)
|
$
|
247,498
|
|
|
$
|
272,690
|
|
Accruing TDRs performing under modified terms more than one year
|
56.5
|
%
|
|
55.0
|
%
|
||
Specific reserves for TDRs included in the balance of ALLL
|
$
|
18,008
|
|
|
$
|
21,405
|
|
Additional funds committed to borrowers in TDR status
|
2,307
|
|
|
1,133
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||
|
Number of
Loans and Leases |
Post-
Modification Recorded Investment (1) |
|
Number of
Loans and Leases |
Post-
Modification Recorded Investment (1) |
|
Number of
Loans and Leases |
Post-
Modification Recorded Investment (1) |
|
Number of
Loans and Leases |
Post-
Modification Recorded Investment (1) |
||||||||||
(Dollars in thousands)
|
|
||||||||||||||||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Extended Maturity
|
2
|
|
$
|
338
|
|
|
6
|
|
$
|
958
|
|
|
7
|
$
|
1,002
|
|
|
15
|
$
|
2,303
|
|
Adjusted Interest Rate
|
—
|
|
—
|
|
|
1
|
|
304
|
|
|
1
|
236
|
|
|
1
|
304
|
|
||||
Maturity/Rate Combined
|
7
|
|
895
|
|
|
4
|
|
464
|
|
|
7
|
895
|
|
|
14
|
2,132
|
|
||||
Other
(2)
|
8
|
|
1,476
|
|
|
11
|
|
1,257
|
|
|
15
|
2,891
|
|
|
14
|
1,793
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Extended Maturity
|
6
|
|
193
|
|
|
1
|
|
140
|
|
|
7
|
292
|
|
|
5
|
639
|
|
||||
Adjusted Interest Rate
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
|
—
|
—
|
|
||||
Maturity/Rate Combined
|
4
|
|
359
|
|
|
—
|
|
—
|
|
|
8
|
659
|
|
|
8
|
444
|
|
||||
Other
(2)
|
22
|
|
839
|
|
|
9
|
|
398
|
|
|
29
|
1,177
|
|
|
30
|
1,730
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
—
|
|
—
|
|
|
2
|
|
223
|
|
|
9
|
14,649
|
|
|
3
|
256
|
|
||||
Adjusted Interest Rate
|
—
|
|
—
|
|
|
1
|
|
24
|
|
|
—
|
—
|
|
|
1
|
24
|
|
||||
Maturity/Rate Combined
|
1
|
|
644
|
|
|
2
|
|
165
|
|
|
2
|
648
|
|
|
4
|
297
|
|
||||
Other
(2)
|
3
|
|
64
|
|
|
4
|
|
6,290
|
|
|
7
|
374
|
|
|
4
|
6,290
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Extended Maturity
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
|
—
|
—
|
|
||||
Maturity/Rate Combined
|
—
|
|
—
|
|
|
1
|
|
43
|
|
|
1
|
444
|
|
|
1
|
43
|
|
||||
Other
(2)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
509
|
|
|
—
|
—
|
|
||||
Equipment Financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Extended Maturity
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
4
|
|
|
—
|
—
|
|
||||
Total TDRs
|
53
|
|
$
|
4,808
|
|
|
42
|
|
$
|
10,266
|
|
|
95
|
$
|
23,780
|
|
|
100
|
$
|
16,255
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
(Dollars in thousands)
|
Number of
Loans and
Leases
|
Recorded
Investment
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
||||||||
Residential
|
1
|
$
|
54
|
|
|
—
|
$
|
—
|
|
|
1
|
$
|
54
|
|
|
—
|
$
|
—
|
|
Consumer
|
1
|
18
|
|
|
1
|
327
|
|
|
1
|
18
|
|
|
2
|
356
|
|
||||
Commercial
|
1
|
1,363
|
|
|
—
|
—
|
|
|
1
|
1,363
|
|
|
—
|
—
|
|
||||
Commercial real estate
|
—
|
—
|
|
|
1
|
10,889
|
|
|
—
|
—
|
|
|
1
|
10,889
|
|
||||
Total
|
3
|
$
|
1,435
|
|
|
2
|
$
|
11,216
|
|
|
3
|
$
|
1,435
|
|
|
3
|
$
|
11,245
|
|
(In thousands)
|
At June 30, 2016
|
|
At December 31, 2015
|
||||
(1) - (6) Pass
|
$
|
11,813
|
|
|
$
|
12,970
|
|
(7) Special Mention
|
2,927
|
|
|
2,999
|
|
||
(8) Substandard
|
57,043
|
|
|
72,132
|
|
||
(9) Doubtful
|
175
|
|
|
1,717
|
|
||
Total
|
$
|
71,958
|
|
|
$
|
89,818
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
1,119
|
|
|
$
|
1,082
|
|
|
$
|
1,192
|
|
|
$
|
1,059
|
|
(Benefit) provision charged to expense
|
(127
|
)
|
|
38
|
|
|
(102
|
)
|
|
61
|
|
||||
Repurchased loans and settlements charged off
|
—
|
|
|
—
|
|
|
(98
|
)
|
|
—
|
|
||||
Ending balance
|
$
|
992
|
|
|
$
|
1,120
|
|
|
$
|
992
|
|
|
$
|
1,120
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Residential mortgage loans held for sale:
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale
|
$
|
85,411
|
|
|
$
|
131,604
|
|
|
$
|
170,572
|
|
|
$
|
208,499
|
|
Net gain on sale
|
1,820
|
|
|
2,517
|
|
|
3,425
|
|
|
4,078
|
|
||||
Fair value option adjustment
|
1,125
|
|
|
—
|
|
|
2,149
|
|
|
—
|
|
||||
Loans sold with servicing rights retained
|
78,644
|
|
|
124,845
|
|
|
158,005
|
|
|
194,110
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||||||
(In thousands)
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||
Community Banking CDI
|
$
|
49,420
|
|
$
|
(49,039
|
)
|
$
|
381
|
|
|
$
|
49,420
|
|
$
|
(48,277
|
)
|
$
|
1,143
|
|
HSA Bank:
|
|
|
|
|
|
|
|
||||||||||||
CDI
|
22,000
|
|
(4,776
|
)
|
17,224
|
|
|
22,000
|
|
(3,269
|
)
|
18,731
|
|
||||||
Customer relationships
|
21,000
|
|
(2,356
|
)
|
18,644
|
|
|
21,000
|
|
(1,548
|
)
|
19,452
|
|
||||||
Total HSA Bank
|
43,000
|
|
(7,132
|
)
|
35,868
|
|
|
43,000
|
|
(4,817
|
)
|
38,183
|
|
||||||
Total other intangible assets
|
$
|
92,420
|
|
$
|
(56,171
|
)
|
$
|
36,249
|
|
|
$
|
92,420
|
|
$
|
(53,094
|
)
|
$
|
39,326
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Non-interest-bearing:
|
|
|
|
||||
Demand
|
$
|
3,958,484
|
|
|
$
|
3,713,063
|
|
Interest-bearing:
|
|
|
|
||||
Checking
|
2,438,661
|
|
|
2,369,971
|
|
||
Health savings accounts
|
4,155,760
|
|
|
3,802,313
|
|
||
Money market
|
1,987,295
|
|
|
1,933,460
|
|
||
Savings
|
4,287,078
|
|
|
4,047,817
|
|
||
Time deposits
|
2,001,190
|
|
|
2,086,154
|
|
||
Total interest-bearing
|
14,869,984
|
|
|
14,239,715
|
|
||
Total deposits
|
$
|
18,828,468
|
|
|
$
|
17,952,778
|
|
|
|
|
|
||||
Time deposits and interest-bearing checking, included in above balances, obtained through brokers
|
$
|
880,740
|
|
|
$
|
910,304
|
|
Time deposits, included in above balance, that meet or exceed the FDIC limit
|
472,519
|
|
|
542,206
|
|
||
Deposit overdrafts reclassified as loan balances
|
1,663
|
|
|
1,356
|
|
(In thousands)
|
At June 30,
2016 |
||
Remainder of 2016
|
$
|
513,435
|
|
2017
|
504,707
|
|
|
2018
|
287,717
|
|
|
2019
|
458,927
|
|
|
2020
|
178,959
|
|
|
Thereafter
|
57,445
|
|
|
Total time deposits
|
$
|
2,001,190
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Securities sold under agreements to repurchase:
|
|
|
|
||||
Original maturity of one year or less
|
$
|
337,691
|
|
|
$
|
334,400
|
|
Original maturity of greater than one year, non-callable
|
400,000
|
|
|
500,000
|
|
||
Total securities sold under agreements to repurchase
|
737,691
|
|
|
834,400
|
|
||
Fed funds purchased
|
162,000
|
|
|
317,000
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
$
|
899,691
|
|
|
$
|
1,151,400
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||
(Dollars in thousands)
|
Amount
|
Weighted-
Average Contractual Coupon Rate
|
|
Amount
|
Weighted-
Average Contractual Coupon Rate
|
||||||
Maturing within 1 year
|
$
|
1,750,000
|
|
0.52
|
%
|
|
$
|
2,025,934
|
|
0.55
|
%
|
After 1 but within 2 years
|
50,500
|
|
1.10
|
|
|
500
|
|
5.66
|
|
||
After 2 but within 3 years
|
175,000
|
|
1.45
|
|
|
200,000
|
|
1.36
|
|
||
After 3 but within 4 years
|
153,026
|
|
1.58
|
|
|
103,026
|
|
1.54
|
|
||
After 4 but within 5 years
|
175,000
|
|
1.72
|
|
|
175,000
|
|
1.77
|
|
||
After 5 years
|
159,513
|
|
1.62
|
|
|
159,655
|
|
1.60
|
|
||
|
2,463,039
|
|
0.82
|
%
|
|
2,664,115
|
|
0.79
|
%
|
||
Premiums on advances
|
18
|
|
|
|
24
|
|
|
||||
Federal Home Loan Bank advances
|
$
|
2,463,057
|
|
|
|
$
|
2,664,139
|
|
|
||
|
|
|
|
|
|
||||||
Aggregate carrying value of assets pledged as collateral
|
$
|
5,613,067
|
|
|
|
$
|
5,719,746
|
|
|
||
Remaining borrowing capacity
|
1,298,182
|
|
|
|
1,203,057
|
|
|
(Dollars in thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
|||||
4.375%
|
Senior fixed-rate notes due February 15, 2024
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Junior subordinated debt Webster Statutory Trust I floating-rate notes due September 17, 2033
(1)
|
77,320
|
|
|
77,320
|
|
|||
Total notes and subordinated debt
|
227,320
|
|
|
227,320
|
|
|||
Discount on senior fixed-rate notes
|
(904
|
)
|
|
(964
|
)
|
|||
Debt issuance cost on senior fixed-rate notes
(2)
|
(1,029
|
)
|
|
(1,096
|
)
|
|||
Long-term debt
|
$
|
225,387
|
|
|
$
|
225,260
|
|
(1)
|
The interest rate on Webster Statutory Trust I floating-rate notes, which varies quarterly based on 3-month LIBOR plus
2.95%
, was
3.61%
at
June 30, 2016
and
3.48%
at
December 31, 2015
.
|
(2)
|
In accordance with the adoption of ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, debt issuance cost is accounted for as a reduction to Long-term debt. Previously debt issuance cost was included in "Accrued interest receivable and other assets" within the accompanying Condensed Consolidated Balance Sheets.
|
|
Three months ended June 30, 2016
|
|
Six months ended June 30, 2016
|
||||||||||||||||||||||
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||||||||||
Beginning balance
|
$
|
1,098
|
|
$
|
(23,932
|
)
|
$
|
(47,563
|
)
|
$
|
(70,397
|
)
|
|
$
|
(6,407
|
)
|
$
|
(22,980
|
)
|
$
|
(48,719
|
)
|
$
|
(78,106
|
)
|
OCI(L) before reclassifications
|
11,324
|
|
(758
|
)
|
438
|
|
11,004
|
|
|
18,938
|
|
(3,210
|
)
|
639
|
|
16,367
|
|
||||||||
Amounts reclassified from AOCL
|
(59
|
)
|
1,284
|
|
657
|
|
1,882
|
|
|
(168
|
)
|
2,784
|
|
1,612
|
|
4,228
|
|
||||||||
Net current-period OCI(L)
|
11,265
|
|
526
|
|
1,095
|
|
12,886
|
|
|
18,770
|
|
(426
|
)
|
2,251
|
|
20,595
|
|
||||||||
Ending balance
|
$
|
12,363
|
|
$
|
(23,406
|
)
|
$
|
(46,468
|
)
|
$
|
(57,511
|
)
|
|
$
|
12,363
|
|
$
|
(23,406
|
)
|
$
|
(46,468
|
)
|
$
|
(57,511
|
)
|
|
Three months ended June 30, 2015
|
|
Six months ended June 30, 2015
|
||||||||||||||||||||||
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||||||||||
Beginning balance
|
$
|
23,388
|
|
$
|
(27,300
|
)
|
$
|
(46,178
|
)
|
$
|
(50,090
|
)
|
|
$
|
16,421
|
|
$
|
(25,530
|
)
|
$
|
(47,152
|
)
|
$
|
(56,261
|
)
|
OCI(L) before reclassifications
|
(13,618
|
)
|
942
|
|
515
|
|
(12,161
|
)
|
|
(6,624
|
)
|
(2,156
|
)
|
1,051
|
|
(7,729
|
)
|
||||||||
Amounts reclassified from AOCL
|
(309
|
)
|
1,389
|
|
476
|
|
1,556
|
|
|
(336
|
)
|
2,717
|
|
914
|
|
3,295
|
|
||||||||
Net current-period OCI(L)
|
(13,927
|
)
|
2,331
|
|
991
|
|
(10,605
|
)
|
|
(6,960
|
)
|
561
|
|
1,965
|
|
(4,434
|
)
|
||||||||
Ending balance
|
$
|
9,461
|
|
$
|
(24,969
|
)
|
$
|
(45,187
|
)
|
$
|
(60,695
|
)
|
|
$
|
9,461
|
|
$
|
(24,969
|
)
|
$
|
(45,187
|
)
|
$
|
(60,695
|
)
|
(In thousands)
|
Three months ended June 30,
|
|
Six months ended June 30,
|
Associated Line Item in the Condensed Consolidated Statements of Income
|
||||||||||||
AOCL Components
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale and transferred securities:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on investment securities
|
$
|
94
|
|
|
$
|
486
|
|
|
$
|
414
|
|
|
$
|
529
|
|
Gain on sale of investment securities, net
|
Unrealized gains (losses) on investment securities
|
—
|
|
|
—
|
|
|
(149
|
)
|
|
—
|
|
Impairment loss recognized in earnings
|
||||
Tax expense
|
(35
|
)
|
|
(177
|
)
|
|
(97
|
)
|
|
(193
|
)
|
Income tax expense
|
||||
Net of tax
|
$
|
59
|
|
|
$
|
309
|
|
|
$
|
168
|
|
|
$
|
336
|
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges
|
$
|
(2,024
|
)
|
|
$
|
(2,192
|
)
|
|
$
|
(4,389
|
)
|
|
$
|
(4,284
|
)
|
Total interest expense
|
Tax benefit
|
740
|
|
|
803
|
|
|
1,605
|
|
|
1,567
|
|
Income tax expense
|
||||
Net of tax
|
$
|
(1,284
|
)
|
|
$
|
(1,389
|
)
|
|
$
|
(2,784
|
)
|
|
$
|
(2,717
|
)
|
|
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net loss
|
$
|
(1,032
|
)
|
|
$
|
(734
|
)
|
|
$
|
(2,534
|
)
|
|
$
|
(1,406
|
)
|
Compensation and benefits
|
Prior service costs
|
(3
|
)
|
|
(18
|
)
|
|
(7
|
)
|
|
(36
|
)
|
Compensation and benefits
|
||||
Tax expense
|
378
|
|
|
276
|
|
|
929
|
|
|
528
|
|
Income tax expense
|
||||
Net of tax
|
$
|
(657
|
)
|
|
$
|
(476
|
)
|
|
$
|
(1,612
|
)
|
|
$
|
(914
|
)
|
|
|
|
|
Capital Requirements
|
||||||||||||||
|
Actual
|
|
Minimum
|
|
Well Capitalized
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
At June 30, 2016
|
|
|
|
|
|
|
|
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,860,993
|
|
10.5
|
%
|
|
$
|
797,763
|
|
4.5
|
%
|
|
$
|
1,152,324
|
|
6.5
|
%
|
Total risk-based capital
|
2,243,770
|
|
12.7
|
|
|
1,418,245
|
|
8.0
|
|
|
1,772,807
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,983,703
|
|
11.2
|
|
|
1,063,684
|
|
6.0
|
|
|
1,418,245
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,983,703
|
|
8.1
|
|
|
978,020
|
|
4.0
|
|
|
1,222,525
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,891,745
|
|
10.7
|
%
|
|
$
|
796,785
|
|
4.5
|
%
|
|
$
|
1,150,912
|
|
6.5
|
%
|
Total risk-based capital
|
2,074,492
|
|
11.7
|
|
|
1,416,507
|
|
8.0
|
|
|
1,770,634
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,891,745
|
|
10.7
|
|
|
1,062,380
|
|
6.0
|
|
|
1,416,507
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,891,745
|
|
7.7
|
|
|
977,546
|
|
4.0
|
|
|
1,221,932
|
|
5.0
|
|
|||
At December 31, 2015
|
|
|
|
|
|
|
|
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,824,106
|
|
10.7
|
%
|
|
$
|
766,848
|
|
4.5
|
%
|
|
$
|
1,107,670
|
|
6.5
|
%
|
Total risk-based capital
|
2,200,317
|
|
12.9
|
|
|
1,363,286
|
|
8.0
|
|
|
1,704,107
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,965,218
|
|
11.5
|
|
|
1,022,464
|
|
6.0
|
|
|
1,363,286
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,965,218
|
|
8.2
|
|
|
954,332
|
|
4.0
|
|
|
1,192,915
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,869,241
|
|
11.0
|
%
|
|
$
|
765,152
|
|
4.5
|
%
|
|
$
|
1,105,220
|
|
6.5
|
%
|
Total risk-based capital
|
2,046,350
|
|
12.0
|
|
|
1,360,271
|
|
8.0
|
|
|
1,700,338
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,869,241
|
|
11.0
|
|
|
1,020,203
|
|
6.0
|
|
|
1,360,271
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,869,241
|
|
7.8
|
|
|
953,300
|
|
4.0
|
|
|
1,191,626
|
|
5.0
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands, except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Earnings for basic and diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
50,603
|
|
|
$
|
52,043
|
|
|
$
|
97,650
|
|
|
$
|
101,547
|
|
Less: Preferred stock dividends
|
$
|
2,024
|
|
|
$
|
2,024
|
|
|
4,048
|
|
|
4,663
|
|
||
Net income available to common shareholders
|
$
|
48,579
|
|
|
$
|
50,019
|
|
|
93,602
|
|
|
96,884
|
|
||
Less: Earnings applicable to participating securities
|
181
|
|
|
200
|
|
|
320
|
|
|
351
|
|
||||
Earnings applicable to common shareholders
|
$
|
48,398
|
|
|
$
|
49,819
|
|
|
$
|
93,282
|
|
|
$
|
96,533
|
|
|
|
|
|
|
|
|
|
||||||||
Shares:
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - basic
|
91,244
|
|
|
90,713
|
|
|
91,247
|
|
|
90,479
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock
|
475
|
|
|
549
|
|
|
453
|
|
|
545
|
|
||||
Warrants
|
26
|
|
|
40
|
|
|
26
|
|
|
46
|
|
||||
Weighted-average common shares outstanding - diluted
|
91,745
|
|
|
91,302
|
|
|
91,726
|
|
|
91,070
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
1.02
|
|
|
$
|
1.07
|
|
Diluted
|
0.53
|
|
|
0.55
|
|
|
1.02
|
|
|
1.06
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Stock options (shares with exercise price greater than market price)
|
172
|
|
|
305
|
|
|
172
|
|
|
305
|
|
Restricted stock (due to performance conditions on non-participating shares)
|
194
|
|
|
122
|
|
|
188
|
|
|
88
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||||||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
(In thousands)
|
Notional
Amounts |
Fair
Value |
|
Notional
Amounts |
Fair
Value |
|
Notional
Amounts |
Fair
Value |
|
Notional
Amounts |
Fair
Value |
||||||||||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Positions subject to a master netting agreement
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
$
|
175,000
|
|
$
|
724
|
|
|
$
|
150,000
|
|
$
|
4,652
|
|
|
$
|
200,000
|
|
$
|
2,507
|
|
|
$
|
100,000
|
|
$
|
1,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Positions subject to a master netting agreement
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
455,157
|
|
65
|
|
|
2,388,710
|
|
106,021
|
|
|
989,695
|
|
2,255
|
|
|
1,543,479
|
|
40,302
|
|
||||||||
Other
|
10,526
|
|
305
|
|
|
8,640
|
|
45
|
|
|
8,237
|
|
183
|
|
|
4,561
|
|
66
|
|
||||||||
Positions not subject to a master netting agreement
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
2,388,736
|
|
131,134
|
|
|
455,157
|
|
65
|
|
|
2,050,460
|
|
58,304
|
|
|
482,738
|
|
571
|
|
||||||||
RPAs
|
75,449
|
|
365
|
|
|
96,334
|
|
372
|
|
|
41,798
|
|
153
|
|
|
92,985
|
|
245
|
|
||||||||
Other
|
—
|
|
—
|
|
|
60
|
|
9
|
|
|
—
|
|
—
|
|
|
60
|
|
9
|
|
||||||||
Total not designated as hedging instruments
|
2,929,868
|
|
131,869
|
|
|
2,948,901
|
|
106,512
|
|
|
3,090,190
|
|
60,895
|
|
|
2,123,823
|
|
41,193
|
|
||||||||
Gross derivative instruments, before netting
|
$
|
3,104,868
|
|
132,593
|
|
|
$
|
3,098,901
|
|
111,164
|
|
|
$
|
3,290,190
|
|
63,402
|
|
|
$
|
2,223,823
|
|
42,552
|
|
||||
Less: Legally enforceable master netting agreements
|
|
1,094
|
|
|
|
1,094
|
|
|
|
4,945
|
|
|
|
4,945
|
|
||||||||||||
Less: Cash collateral posted
|
|
—
|
|
|
|
109,124
|
|
|
|
—
|
|
|
|
31,330
|
|
||||||||||||
Total derivative instruments, after netting
|
|
$
|
131,499
|
|
|
|
$
|
946
|
|
|
|
$
|
58,457
|
|
|
|
$
|
6,277
|
|
(1)
|
The Company has elected to report derivative positions subject to a legally enforceable master netting agreement on a net basis, net of cash collateral. Refer to the Offsetting Derivatives section of this footnote for additional information.
|
(2)
|
Derivative positions not subject to a legally enforceable master netting agreement are reported on a gross basis in the accompanying condensed consolidated balance sheets.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest rate derivatives
|
$
|
3,574
|
|
|
$
|
1,671
|
|
|
$
|
5,907
|
|
|
$
|
4,308
|
|
RPAs
|
(167
|
)
|
|
(42
|
)
|
|
(253
|
)
|
|
(118
|
)
|
||||
Other
|
216
|
|
|
(43
|
)
|
|
(297
|
)
|
|
(85
|
)
|
||||
Total impact on non-interest income
|
$
|
3,623
|
|
|
$
|
1,586
|
|
|
$
|
5,357
|
|
|
$
|
4,105
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||||||
(In thousands)
|
Gross
Amount
|
Amount
Offset
|
Net
Amount
(1) (2)
|
|
Gross
Amount
|
Amount
Offset
|
Net
Amount
(1) (2)
|
||||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
||||||||||||
Hedged Accounting Positions
|
$
|
724
|
|
$
|
(724
|
)
|
$
|
—
|
|
|
$
|
2,507
|
|
$
|
(2,507
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
370
|
|
(370
|
)
|
—
|
|
|
2,438
|
|
(2,438
|
)
|
—
|
|
||||||
Total
|
$
|
1,094
|
|
$
|
(1,094
|
)
|
$
|
—
|
|
|
$
|
4,945
|
|
$
|
(4,945
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
||||||||||||
Hedged Accounting Positions
|
$
|
4,652
|
|
$
|
(4,652
|
)
|
$
|
—
|
|
|
$
|
1,359
|
|
$
|
(1,359
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
106,066
|
|
(105,566
|
)
|
500
|
|
|
40,369
|
|
(34,916
|
)
|
5,453
|
|
||||||
Total
|
$
|
110,718
|
|
$
|
(110,218
|
)
|
$
|
500
|
|
|
$
|
41,728
|
|
$
|
(36,275
|
)
|
$
|
5,453
|
|
•
|
Level 1:
Valuation is based upon unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2:
Fair value is calculated using significant inputs other than quoted market prices that are directly or indirectly observable for the asset or liability. The valuation may rely on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit ratings, etc.), or inputs that are derived principally or corroborated by market data, by correlation, or other means.
|
•
|
Level 3:
Inputs for determining the fair value of the respective assets or liabilities are not observable. Level 3 valuations are reliant upon pricing models and techniques that require significant management judgment or estimation.
|
|
At June 30, 2016
|
|||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Financial assets held at fair value:
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
$
|
984
|
|
$
|
—
|
|
$
|
—
|
|
$
|
984
|
|
Agency CMO
|
—
|
|
480,585
|
|
—
|
|
480,585
|
|
||||
Agency MBS
|
—
|
|
1,028,356
|
|
—
|
|
1,028,356
|
|
||||
Agency CMBS
|
—
|
|
321,344
|
|
—
|
|
321,344
|
|
||||
CMBS
|
—
|
|
491,407
|
|
—
|
|
491,407
|
|
||||
CLO
|
—
|
|
462,120
|
|
—
|
|
462,120
|
|
||||
Single issuer trust preferred securities
|
—
|
|
36,773
|
|
—
|
|
36,773
|
|
||||
Corporate debt securities
|
—
|
|
100,381
|
|
—
|
|
100,381
|
|
||||
Equities - financial services
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total available-for-sale investment securities
|
984
|
|
2,920,966
|
|
—
|
|
2,921,950
|
|
||||
Gross derivative instruments, before netting
(1)
|
305
|
|
132,288
|
|
—
|
|
132,593
|
|
||||
Mortgage banking derivatives
|
—
|
|
2,502
|
|
—
|
|
2,502
|
|
||||
Investments held in Rabbi Trust
|
4,898
|
|
—
|
|
—
|
|
4,898
|
|
||||
Alternative investments
|
—
|
|
—
|
|
4,761
|
|
4,761
|
|
||||
Originated loans held for sale
(2)
|
—
|
|
53,163
|
|
—
|
|
53,163
|
|
||||
Contingent consideration
|
—
|
|
—
|
|
8,279
|
|
8,279
|
|
||||
Total financial assets held at fair value
|
$
|
6,187
|
|
$
|
3,108,919
|
|
$
|
13,040
|
|
$
|
3,128,146
|
|
Financial liabilities held at fair value:
|
|
|
|
|
||||||||
Gross derivative instruments, before netting
(1)
|
$
|
45
|
|
$
|
111,119
|
|
$
|
—
|
|
$
|
111,164
|
|
Mortgage banking derivatives
|
—
|
|
2,046
|
|
—
|
|
2,046
|
|
||||
Contingent liability
|
—
|
|
—
|
|
6,000
|
|
6,000
|
|
||||
Total financial liabilities held at fair value
|
$
|
45
|
|
$
|
113,165
|
|
$
|
6,000
|
|
$
|
119,210
|
|
|
At December 31, 2015
|
|||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Financial assets held at fair value:
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
$
|
924
|
|
$
|
—
|
|
$
|
—
|
|
$
|
924
|
|
Agency CMO
|
—
|
|
548,754
|
|
—
|
|
548,754
|
|
||||
Agency MBS
|
—
|
|
1,065,109
|
|
—
|
|
1,065,109
|
|
||||
Agency CMBS
|
—
|
|
215,350
|
|
—
|
|
215,350
|
|
||||
CMBS
|
—
|
|
579,266
|
|
—
|
|
579,266
|
|
||||
CLO
|
—
|
|
429,159
|
|
—
|
|
429,159
|
|
||||
Single issuer trust preferred securities
|
—
|
|
37,170
|
|
—
|
|
37,170
|
|
||||
Corporate debt securities
|
—
|
|
106,321
|
|
—
|
|
106,321
|
|
||||
Equities - financial services
|
2,578
|
|
—
|
|
—
|
|
2,578
|
|
||||
Total available-for-sale investment securities
|
3,502
|
|
2,981,129
|
|
—
|
|
2,984,631
|
|
||||
Gross derivative instruments, before netting
(1)
|
183
|
|
63,219
|
|
—
|
|
63,402
|
|
||||
Mortgage banking derivatives
|
—
|
|
819
|
|
—
|
|
819
|
|
||||
Investments held in Rabbi Trust
|
5,372
|
|
—
|
|
—
|
|
5,372
|
|
||||
Alternative investments
|
—
|
|
—
|
|
3,471
|
|
3,471
|
|
||||
Originated loans held for sale
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Contingent Consideration
|
—
|
|
—
|
|
5,331
|
|
5,331
|
|
||||
Total financial assets held at fair value
|
$
|
9,057
|
|
$
|
3,045,167
|
|
$
|
8,802
|
|
$
|
3,063,026
|
|
Financial liabilities held at fair value:
|
|
|
|
|
||||||||
Gross derivative instruments, before netting
(1)
|
$
|
66
|
|
$
|
42,486
|
|
$
|
—
|
|
$
|
42,552
|
|
Mortgage banking derivatives
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Contingent liability
|
—
|
|
—
|
|
6,000
|
|
6,000
|
|
||||
Total financial liabilities held at fair value
|
$
|
66
|
|
$
|
42,486
|
|
$
|
6,000
|
|
$
|
48,552
|
|
(In thousands)
|
Alternative Investments
|
Contingent Consideration
|
Total Financial Assets
|
|
Contingent Liability
|
||||||||
Balance at January 1, 2016
|
$
|
3,471
|
|
$
|
5,331
|
|
$
|
8,802
|
|
|
$
|
6,000
|
|
Unrealized gain included in net income
|
176
|
|
2,948
|
|
3,124
|
|
|
—
|
|
||||
Purchases/capital funding
|
1,114
|
|
—
|
|
1,114
|
|
|
—
|
|
||||
Balance at June 30, 2016
|
$
|
4,761
|
|
$
|
8,279
|
|
$
|
13,040
|
|
|
$
|
6,000
|
|
|
Six months ended June 30,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Beginning balance
|
$
|
33,568
|
|
|
$
|
28,690
|
|
Originations of servicing assets
|
4,672
|
|
|
3,905
|
|
||
Changes in fair value:
|
|
|
|
||||
Due to payoffs/paydowns
|
(2,661
|
)
|
|
(1,492
|
)
|
||
Due to market changes
|
(1,967
|
)
|
|
263
|
|
||
Ending balance
|
$
|
33,612
|
|
|
$
|
31,366
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||
(In thousands)
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity investment securities
|
$
|
3,920,974
|
|
|
$
|
4,027,754
|
|
|
$
|
3,923,052
|
|
|
$
|
3,961,534
|
|
Loans held for sale
(1)
|
191
|
|
|
191
|
|
|
37,091
|
|
|
37,457
|
|
||||
Level 3
|
|
|
|
|
|
|
|
||||||||
Loans and leases, net
|
16,091,601
|
|
|
16,209,024
|
|
|
15,496,745
|
|
|
15,543,892
|
|
||||
Mortgage servicing assets
|
21,946
|
|
|
33,612
|
|
|
20,698
|
|
|
33,568
|
|
||||
Alternative investments
|
12,454
|
|
|
13,414
|
|
|
12,900
|
|
|
14,294
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Deposit liabilities, other than time deposits
|
$
|
16,827,278
|
|
|
$
|
16,827,278
|
|
|
$
|
15,866,624
|
|
|
$
|
15,866,624
|
|
Time deposits
|
2,001,190
|
|
|
2,028,186
|
|
|
2,086,154
|
|
|
2,095,357
|
|
||||
Securities sold under agreements to repurchase and other borrowings
|
899,691
|
|
|
914,899
|
|
|
1,151,400
|
|
|
1,163,974
|
|
||||
FHLB advances
(2)
|
2,463,057
|
|
|
2,454,579
|
|
|
2,664,139
|
|
|
2,647,872
|
|
||||
Long-term debt
(2)
|
225,387
|
|
|
227,407
|
|
|
226,356
|
|
|
218,143
|
|
|
Three months ended June 30,
|
||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||
(In thousands)
|
Webster Pension
|
Webster
SERP |
Other Postretirement Benefits
|
|
Webster Pension
|
Webster
SERP |
Other Postretirement Benefits
|
||||||||||||
Service cost
|
$
|
11
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
13
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
2,123
|
|
97
|
|
31
|
|
|
2,015
|
|
87
|
|
31
|
|
||||||
Expected return on plan assets
|
(2,964
|
)
|
—
|
|
—
|
|
|
(2,974
|
)
|
—
|
|
—
|
|
||||||
Amortization of prior service cost
|
—
|
|
—
|
|
3
|
|
|
—
|
|
—
|
|
18
|
|
||||||
Recognized net loss
|
1,642
|
|
83
|
|
9
|
|
|
1,435
|
|
115
|
|
12
|
|
||||||
Net periodic benefit cost
|
$
|
812
|
|
$
|
180
|
|
$
|
43
|
|
|
$
|
489
|
|
$
|
202
|
|
$
|
61
|
|
|
Six months ended June 30,
|
||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||
(In thousands)
|
Webster Pension
|
Webster
SERP |
Other Postretirement Benefits
|
|
Webster Pension
|
Webster
SERP |
Other Postretirement Benefits
|
||||||||||||
Service cost
|
$
|
23
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
23
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
4,221
|
|
194
|
|
62
|
|
|
4,004
|
|
173
|
|
62
|
|
||||||
Expected return on plan assets
|
(5,529
|
)
|
—
|
|
—
|
|
|
(5,937
|
)
|
—
|
|
—
|
|
||||||
Amortization of prior service cost
|
—
|
|
—
|
|
7
|
|
|
—
|
|
—
|
|
36
|
|
||||||
Recognized net loss
|
3,332
|
|
213
|
|
18
|
|
|
2,862
|
|
195
|
|
24
|
|
||||||
Net periodic benefit cost
|
$
|
2,047
|
|
$
|
407
|
|
$
|
87
|
|
|
$
|
952
|
|
$
|
368
|
|
$
|
122
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Stock options
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
43
|
|
|
$
|
232
|
|
Restricted stock
|
2,831
|
|
|
2,926
|
|
|
5,571
|
|
|
5,044
|
|
||||
Total stock compensation expense
|
$
|
2,831
|
|
|
$
|
2,994
|
|
|
$
|
5,614
|
|
|
$
|
5,276
|
|
|
Restricted Stock Awards Outstanding
|
|
Stock Options Outstanding
|
||||||||||||||||||||
|
Time-Based
|
|
Performance-Based
|
|
|||||||||||||||||||
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Units
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Exercise Price
|
||||||||||||
Outstanding, at January 1, 2016
|
236,146
|
|
$
|
32.58
|
|
|
2,088
|
|
$
|
34.45
|
|
|
115,721
|
|
$
|
34.14
|
|
|
1,527,074
|
|
$
|
23.92
|
|
Granted
|
219,000
|
|
32.87
|
|
|
12,946
|
|
32.89
|
|
|
150,392
|
|
32.75
|
|
|
—
|
|
—
|
|
||||
Exercised options
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
89,641
|
|
19.76
|
|
||||
Vested restricted stock awards
(1)
|
114,928
|
|
31.61
|
|
|
6,402
|
|
33.40
|
|
|
67,274
|
|
33.29
|
|
|
—
|
|
—
|
|
||||
Forfeited
|
6,876
|
|
30.53
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
41,562
|
|
47.92
|
|
||||
Outstanding and exercisable, at June 30, 2016
|
333,342
|
|
$
|
33.10
|
|
|
8,632
|
|
$
|
32.89
|
|
|
198,839
|
|
$
|
33.37
|
|
|
1,395,871
|
|
$
|
23.47
|
|
(1)
|
Vested for purposes of recording compensation expense.
|
|
Three months ended June 30, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community Banking
|
HSA
Bank
|
Private Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (loss)
|
$
|
66,136
|
|
$
|
91,147
|
|
$
|
20,005
|
|
$
|
2,726
|
|
$
|
(3,109
|
)
|
$
|
176,905
|
|
Provision (benefit) for loan and lease losses
|
11,540
|
|
2,389
|
|
—
|
|
72
|
|
(1
|
)
|
14,000
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
54,596
|
|
88,758
|
|
20,005
|
|
2,654
|
|
(3,108
|
)
|
162,905
|
|
||||||
Non-interest income
|
12,076
|
|
27,458
|
|
18,114
|
|
2,679
|
|
4,748
|
|
65,075
|
|
||||||
Non-interest expense
|
28,615
|
|
90,484
|
|
24,688
|
|
4,868
|
|
4,123
|
|
152,778
|
|
||||||
Income (loss) before income tax expense
|
38,057
|
|
25,732
|
|
13,431
|
|
465
|
|
(2,483
|
)
|
75,202
|
|
||||||
Income tax expense (benefit)
|
12,449
|
|
8,429
|
|
4,384
|
|
155
|
|
(818
|
)
|
24,599
|
|
||||||
Net income (loss)
|
$
|
25,608
|
|
$
|
17,303
|
|
$
|
9,047
|
|
$
|
310
|
|
$
|
(1,665
|
)
|
$
|
50,603
|
|
|
Three months ended June 30, 2015
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community Banking
|
HSA
Bank
|
Private Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (loss)
|
$
|
62,192
|
|
$
|
87,605
|
|
$
|
17,763
|
|
$
|
2,501
|
|
$
|
(6,550
|
)
|
$
|
163,511
|
|
Provision for loan and lease losses
|
12,585
|
|
1,009
|
|
—
|
|
(177
|
)
|
(667
|
)
|
12,750
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
49,607
|
|
86,596
|
|
17,763
|
|
2,678
|
|
(5,883
|
)
|
150,761
|
|
||||||
Non-interest income
|
7,826
|
|
28,280
|
|
15,677
|
|
2,350
|
|
5,112
|
|
59,245
|
|
||||||
Non-interest expense
|
27,201
|
|
82,461
|
|
20,248
|
|
4,597
|
|
3,030
|
|
137,537
|
|
||||||
Income (loss) before income tax expense
|
30,232
|
|
32,415
|
|
13,192
|
|
431
|
|
(3,801
|
)
|
72,469
|
|
||||||
Income tax expense (benefit)
|
8,285
|
|
9,382
|
|
3,744
|
|
134
|
|
(1,119
|
)
|
20,426
|
|
||||||
Net income (loss)
|
$
|
21,947
|
|
$
|
23,033
|
|
$
|
9,448
|
|
$
|
297
|
|
$
|
(2,682
|
)
|
$
|
52,043
|
|
|
Six months ended June 30, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking
|
HSA
Bank
|
Private
Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (loss)
|
$
|
131,558
|
|
$
|
181,203
|
|
$
|
39,924
|
|
$
|
5,599
|
|
$
|
(5,227
|
)
|
$
|
353,057
|
|
Provision (benefit) for loan and lease losses
|
21,788
|
|
8,633
|
|
—
|
|
101
|
|
(922
|
)
|
29,600
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
109,770
|
|
172,570
|
|
39,924
|
|
5,498
|
|
(4,305
|
)
|
323,457
|
|
||||||
Non-interest income
|
20,859
|
|
54,098
|
|
38,069
|
|
5,044
|
|
9,379
|
|
127,449
|
|
||||||
Non-interest expense
|
57,304
|
|
181,360
|
|
48,945
|
|
10,239
|
|
7,375
|
|
305,223
|
|
||||||
Income (loss) before income tax expense
|
73,325
|
|
45,308
|
|
29,048
|
|
303
|
|
(2,301
|
)
|
145,683
|
|
||||||
Income tax expense (benefit)
|
24,176
|
|
14,938
|
|
9,577
|
|
100
|
|
(758
|
)
|
48,033
|
|
||||||
Net income (loss)
|
$
|
49,149
|
|
$
|
30,370
|
|
$
|
19,471
|
|
$
|
203
|
|
$
|
(1,543
|
)
|
$
|
97,650
|
|
|
Six months ended June 30, 2015
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking
|
HSA
Bank
|
Private
Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (loss)
|
$
|
123,770
|
|
$
|
171,844
|
|
$
|
34,228
|
|
$
|
4,896
|
|
$
|
(11,463
|
)
|
$
|
323,275
|
|
Provision (benefit) for loan and lease losses
|
15,959
|
|
7,430
|
|
—
|
|
(234
|
)
|
(655
|
)
|
22,500
|
|
||||||
Net interest income after provision for loan and lease losses
|
107,811
|
|
164,414
|
|
34,228
|
|
5,130
|
|
(10,808
|
)
|
300,775
|
|
||||||
Non-interest income
|
17,351
|
|
53,820
|
|
30,499
|
|
4,676
|
|
10,460
|
|
116,806
|
|
||||||
Non-interest expense
|
53,670
|
|
164,151
|
|
39,203
|
|
9,476
|
|
5,124
|
|
271,624
|
|
||||||
Income (loss) before income tax expense
|
71,492
|
|
54,083
|
|
25,524
|
|
330
|
|
(5,472
|
)
|
145,957
|
|
||||||
Income tax expense (benefit)
|
21,752
|
|
16,455
|
|
7,766
|
|
101
|
|
(1,664
|
)
|
44,410
|
|
||||||
Net income (loss)
|
$
|
49,740
|
|
$
|
37,628
|
|
$
|
17,758
|
|
$
|
229
|
|
$
|
(3,808
|
)
|
$
|
101,547
|
|
|
Total Assets
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking |
HSA
Bank
|
Private
Banking |
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
At June 30, 2016
|
$
|
7,913,743
|
|
$
|
8,616,610
|
|
$
|
95,475
|
|
$
|
516,081
|
|
$
|
7,978,557
|
|
$
|
25,120,466
|
|
At December 31, 2015
|
7,505,513
|
|
8,441,950
|
|
95,815
|
|
493,571
|
|
8,104,269
|
|
24,641,118
|
|
(In thousands)
|
At June 30, 2016
|
|
At December 31, 2015
|
||||
Commitments to extend credit
|
$
|
5,239,414
|
|
|
$
|
4,851,994
|
|
Standby letter of credit
|
125,780
|
|
|
133,294
|
|
||
Commercial letter of credit
|
51,367
|
|
|
45,742
|
|
||
Total credit-related financial instruments with off-balance sheet risk
|
$
|
5,416,561
|
|
|
$
|
5,031,030
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
2,126
|
|
|
$
|
2,320
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
Provision (benefit)
|
193
|
|
|
(313
|
)
|
|
200
|
|
|
(3,144
|
)
|
||||
Ending balance
|
$
|
2,319
|
|
|
$
|
2,007
|
|
|
$
|
2,319
|
|
|
$
|
2,007
|
|
▪
|
projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items;
|
▪
|
statements of plans, objectives and expectations of Webster or its management or Board of Directors;
|
▪
|
statements of future economic performance; and
|
▪
|
statements of assumptions underlying such statements.
|
▪
|
local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact;
|
▪
|
volatility and disruption in national and international financial markets;
|
▪
|
government intervention in the U.S. financial system;
|
▪
|
changes in the level of non-performing assets and charge-offs;
|
▪
|
changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
|
▪
|
adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;
|
▪
|
inflation, interest rate, securities market and monetary fluctuations;
|
▪
|
the timely development and acceptance of new products and services and perceived overall value of these products and services by customers;
|
▪
|
changes in consumer spending, borrowings and savings habits;
|
▪
|
technological changes and cyber-security matters;
|
▪
|
the ability to increase market share and control expenses;
|
▪
|
changes in the competitive environment among banks, financial holding companies and other financial services providers;
|
▪
|
the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply, including the Dodd-Frank Act;
|
▪
|
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;
|
▪
|
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
|
▪
|
our success at managing the risks involved in the foregoing items.
|
•
|
allowance for loan and lease losses,
|
•
|
fair value measurements for valuation of investments and other financial instruments,
|
•
|
evaluation of investments for other-than-temporary impairment,
|
•
|
valuation of goodwill and other intangible assets, and
|
•
|
income taxes
|
|
At or for the three months ended June 30,
|
|
At or for the six months ended June 30,
|
||||||||||||
(In thousands, except per share and ratio data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Earnings:
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
176,905
|
|
|
$
|
163,511
|
|
|
$
|
353,057
|
|
|
$
|
323,275
|
|
Provision for loan and lease losses
|
14,000
|
|
|
12,750
|
|
|
29,600
|
|
|
22,500
|
|
||||
Total non-interest income
|
65,075
|
|
|
59,245
|
|
|
127,449
|
|
|
116,806
|
|
||||
Total non-interest expense
|
152,778
|
|
|
137,537
|
|
|
305,223
|
|
|
271,624
|
|
||||
Net income
|
50,603
|
|
|
52,043
|
|
|
97,650
|
|
|
101,547
|
|
||||
Earnings applicable to common shareholders
|
48,398
|
|
|
49,819
|
|
|
93,282
|
|
|
96,533
|
|
||||
Per Share Data:
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - diluted
|
91,745
|
|
|
91,302
|
|
|
91,726
|
|
|
91,070
|
|
||||
Diluted earnings per common share
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
1.02
|
|
|
$
|
1.06
|
|
Dividends and dividend equivalents declared per common share
|
0.25
|
|
|
0.23
|
|
|
0.48
|
|
|
0.43
|
|
||||
Dividends declared per Series A preferred share
|
—
|
|
|
—
|
|
|
—
|
|
|
21.25
|
|
||||
Dividends declared per Series E preferred share
|
400.00
|
|
|
400.00
|
|
|
800.00
|
|
|
800.00
|
|
||||
Book value per common share
|
25.68
|
|
|
24.55
|
|
|
25.68
|
|
|
24.55
|
|
||||
Tangible book value per common share
(non-GAAP)
|
19.41
|
|
|
18.23
|
|
|
19.41
|
|
|
18.23
|
|
||||
Selected Ratios:
|
|
|
|
|
|
|
|
||||||||
Net interest margin
|
3.08
|
|
|
3.05
|
|
|
3.10
|
|
|
3.07
|
|
||||
Return on average assets
(annualized basis)
|
0.81
|
%
|
|
0.89
|
%
|
|
0.78
|
%
|
|
0.88
|
%
|
||||
Return on average common shareholders' equity
(annualized basis)
|
8.31
|
|
|
8.95
|
|
|
8.05
|
|
|
8.74
|
|
||||
CET1 risk-based capital
|
10.50
|
|
|
10.94
|
|
|
10.50
|
|
|
10.94
|
|
||||
Tangible common equity ratio
(non-GAAP)
|
7.25
|
|
|
7.28
|
|
|
7.25
|
|
|
7.28
|
|
||||
Return on average tangible common shareholders' equity
(annualized basis) (non-GAAP)
|
11.25
|
|
|
12.39
|
|
|
10.94
|
|
|
12.08
|
|
||||
Efficiency ratio
(non-GAAP)
|
61.47
|
|
|
60.08
|
|
|
61.74
|
|
|
59.93
|
|
|
At June 30,
|
||||||
(Dollars and shares in thousands, except per share data)
|
2016
|
|
2015
|
||||
Tangible book value per common share (non-GAAP):
|
|
|
|
||||
Shareholders' equity (GAAP)
|
$
|
2,476,966
|
|
|
$
|
2,379,017
|
|
Less: Preferred stock (GAAP)
|
122,710
|
|
|
122,710
|
|
||
Goodwill and other intangible assets (GAAP)
|
574,622
|
|
|
580,908
|
|
||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,779,634
|
|
|
$
|
1,675,399
|
|
Common shares outstanding
|
91,677
|
|
|
91,919
|
|
||
Tangible book value per common share (non-GAAP)
|
$
|
19.41
|
|
|
$
|
18.23
|
|
|
|
|
|
||||
Tangible common equity ratio (non-GAAP):
|
|
|
|
||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,779,634
|
|
|
$
|
1,675,399
|
|
Total Assets (GAAP)
|
$
|
25,120,466
|
|
|
$
|
23,594,139
|
|
Less: Goodwill and other intangible assets (GAAP)
|
574,622
|
|
|
580,908
|
|
||
Tangible assets (non-GAAP)
|
$
|
24,545,844
|
|
|
$
|
23,013,231
|
|
Tangible common equity ratio (non-GAAP)
|
7.25
|
%
|
|
7.28
|
%
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Return on average tangible common shareholders' equity (non-GAAP):
|
|
|
|
|
|
|
|
||||||||
Net income (GAAP)
|
$
|
50,603
|
|
|
$
|
52,043
|
|
|
$
|
97,650
|
|
|
$
|
101,547
|
|
Less: Preferred stock dividends (GAAP)
|
2,024
|
|
|
2,024
|
|
|
4,048
|
|
|
4,663
|
|
||||
Add: Intangible assets amortization, tax-affected at 35% (GAAP)
|
990
|
|
|
1,198
|
|
|
2,000
|
|
|
2,035
|
|
||||
Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP)
|
$
|
49,569
|
|
|
$
|
51,217
|
|
|
$
|
95,602
|
|
|
$
|
98,919
|
|
Income adjusted for preferred stock dividends and intangible assets amortization, annualized (non-GAAP)
|
$
|
198,276
|
|
|
$
|
204,868
|
|
|
$
|
191,204
|
|
|
$
|
197,838
|
|
Average shareholders' equity (non-GAAP)
|
$
|
2,460,763
|
|
|
$
|
2,378,174
|
|
|
$
|
2,447,434
|
|
|
$
|
2,363,562
|
|
Less: Average preferred stock (non-GAAP)
|
122,710
|
|
|
142,109
|
|
|
122,710
|
|
|
146,853
|
|
||||
Average goodwill and other intangible assets (non-GAAP)
|
575,483
|
|
|
581,911
|
|
|
576,256
|
|
|
579,323
|
|
||||
Average tangible common shareholders' equity (non-GAAP)
|
$
|
1,762,570
|
|
|
$
|
1,654,154
|
|
|
$
|
1,748,468
|
|
|
$
|
1,637,386
|
|
Return on average tangible common shareholders' equity (non-GAAP)
|
11.25
|
%
|
|
12.39
|
%
|
|
10.94
|
%
|
|
12.08
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Efficiency ratio (non-GAAP):
|
|
|
|
|
|
|
|
||||||||
Non-interest expense (GAAP)
|
$
|
152,778
|
|
|
$
|
137,537
|
|
|
$
|
305,223
|
|
|
$
|
271,624
|
|
Less: Foreclosed property activity (GAAP)
|
(123
|
)
|
|
(391
|
)
|
|
(281
|
)
|
|
314
|
|
||||
Intangible assets amortization (GAAP)
|
1,523
|
|
|
1,843
|
|
|
3,077
|
|
|
3,131
|
|
||||
Other expense (non-GAAP)
|
260
|
|
|
817
|
|
|
1,477
|
|
|
1,292
|
|
||||
Non-interest expense (non-GAAP)
|
$
|
151,118
|
|
|
$
|
135,268
|
|
|
$
|
300,950
|
|
|
$
|
266,887
|
|
Net interest income (GAAP)
|
$
|
176,905
|
|
|
$
|
163,511
|
|
|
$
|
353,057
|
|
|
$
|
323,275
|
|
Add: Tax-equivalent adjustment (non-GAAP)
|
3,282
|
|
|
2,626
|
|
|
6,257
|
|
|
5,283
|
|
||||
Non-interest income (GAAP)
|
65,075
|
|
|
59,245
|
|
|
127,449
|
|
|
116,806
|
|
||||
Less: Gain on sale of investment securities, net (GAAP)
|
94
|
|
|
486
|
|
|
414
|
|
|
529
|
|
||||
Other (non-GAAP)
|
(655
|
)
|
|
(242
|
)
|
|
(1,136
|
)
|
|
(484
|
)
|
||||
Income (non-GAAP)
|
$
|
245,823
|
|
|
$
|
225,138
|
|
|
$
|
487,485
|
|
|
$
|
445,319
|
|
Efficiency ratio (non-GAAP)
|
61.47
|
%
|
|
60.08
|
%
|
|
61.74
|
%
|
|
59.93
|
%
|
|
Three months ended June 30,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Average
Yields |
|
Average
Balance |
Interest
|
Average
Yields |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
$
|
16,079,348
|
|
$
|
152,937
|
|
3.79
|
%
|
|
$
|
14,508,701
|
|
$
|
136,223
|
|
3.74
|
%
|
Securities
(based upon historical amortized cost)
|
6,904,166
|
|
50,986
|
|
2.95
|
|
|
6,854,413
|
|
51,483
|
|
3.02
|
|
||||
FHLB and FRB stock
|
192,664
|
|
1,420
|
|
2.96
|
|
|
192,707
|
|
1,379
|
|
2.87
|
|
||||
Interest-bearing deposits
|
61,929
|
|
77
|
|
0.49
|
|
|
124,769
|
|
79
|
|
0.25
|
|
||||
Loans held for sale
|
37,104
|
|
293
|
|
3.15
|
|
|
50,382
|
|
432
|
|
3.43
|
|
||||
Total interest-earning assets
|
23,275,211
|
|
$
|
205,713
|
|
3.52
|
%
|
|
21,730,972
|
|
$
|
189,596
|
|
3.48
|
%
|
||
Non-interest-earning assets
|
1,728,222
|
|
|
|
|
1,618,067
|
|
|
|
||||||||
Total assets
|
$
|
25,003,433
|
|
|
|
|
$
|
23,349,039
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
$
|
3,728,684
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,450,633
|
|
$
|
—
|
|
—
|
%
|
Savings, checking, & money market deposits
|
13,009,331
|
|
6,861
|
|
0.21
|
|
|
11,767,724
|
|
5,300
|
|
0.18
|
|
||||
Time deposits
|
2,015,120
|
|
5,513
|
|
1.10
|
|
|
2,163,918
|
|
6,233
|
|
1.16
|
|
||||
Total deposits
|
18,753,135
|
|
12,374
|
|
0.27
|
|
|
17,382,275
|
|
11,533
|
|
0.27
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase and other borrowings
|
872,189
|
|
3,379
|
|
1.53
|
|
|
1,111,385
|
|
4,186
|
|
1.49
|
|
||||
FHLB advances
|
2,525,500
|
|
7,291
|
|
1.14
|
|
|
2,092,840
|
|
5,329
|
|
1.01
|
|
||||
Long-term debt
|
225,351
|
|
2,482
|
|
4.41
|
|
|
226,277
|
|
2,411
|
|
4.26
|
|
||||
Total borrowings
|
3,623,040
|
|
13,152
|
|
1.44
|
|
|
3,430,502
|
|
11,926
|
|
1.38
|
|
||||
Total interest-bearing liabilities
|
22,376,175
|
|
$
|
25,526
|
|
0.46
|
%
|
|
20,812,777
|
|
$
|
23,459
|
|
0.45
|
%
|
||
Non-interest-bearing liabilities
|
166,495
|
|
|
|
|
158,088
|
|
|
|
||||||||
Total liabilities
|
22,542,670
|
|
|
|
|
20,970,865
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
122,710
|
|
|
|
|
142,109
|
|
|
|
||||||||
Common shareholders' equity
|
2,338,053
|
|
|
|
|
2,236,065
|
|
|
|
||||||||
Webster Financial Corporation shareholders' equity
|
2,460,763
|
|
|
|
|
2,378,174
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
25,003,433
|
|
|
|
|
$
|
23,349,039
|
|
|
|
||||||
Tax-equivalent net interest income
|
|
$
|
180,187
|
|
|
|
|
$
|
166,137
|
|
|
||||||
Less: Tax-equivalent adjustments
|
|
(3,282
|
)
|
|
|
|
(2,626
|
)
|
|
||||||||
Net interest income
|
|
$
|
176,905
|
|
|
|
|
$
|
163,511
|
|
|
||||||
Net interest margin
|
|
|
3.08
|
%
|
|
|
|
3.05
|
%
|
||||||||
|
|
Six months ended June 30,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Average
Yields |
|
Average
Balance |
Interest
|
Average
Yields |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
$
|
15,939,123
|
|
$
|
303,473
|
|
3.79
|
%
|
|
$
|
14,253,012
|
|
$
|
267,477
|
|
3.75
|
%
|
Securities
(based upon historical amortized cost)
|
6,899,787
|
|
103,998
|
|
3.01
|
|
|
6,775,633
|
|
103,909
|
|
3.08
|
|
||||
FHLB and FRB stock
|
190,505
|
|
2,837
|
|
3.00
|
|
|
192,997
|
|
2,695
|
|
2.82
|
|
||||
Interest-bearing deposits
|
59,633
|
|
149
|
|
0.49
|
|
|
112,393
|
|
142
|
|
0.25
|
|
||||
Loans held for sale
|
31,863
|
|
566
|
|
3.55
|
|
|
45,551
|
|
942
|
|
4.14
|
|
||||
Total interest-earning assets
|
23,120,911
|
|
$
|
411,023
|
|
3.54
|
%
|
|
21,379,586
|
|
$
|
375,165
|
|
3.51
|
%
|
||
Non-interest-earning assets
|
1,776,231
|
|
|
|
|
1,619,923
|
|
|
|
||||||||
Total assets
|
$
|
24,897,142
|
|
|
|
|
$
|
22,999,509
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
$
|
3,697,306
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,452,428
|
|
$
|
—
|
|
—
|
%
|
Savings, checking & money market deposits
|
12,885,504
|
|
13,476
|
|
0.21
|
|
|
11,655,055
|
|
10,136
|
|
0.18
|
|
||||
Time deposits
|
2,036,385
|
|
11,197
|
|
1.11
|
|
|
2,203,170
|
|
12,939
|
|
1.18
|
|
||||
Total deposits
|
18,619,195
|
|
24,673
|
|
0.27
|
|
|
17,310,653
|
|
23,075
|
|
0.27
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase and other borrowings
|
960,593
|
|
7,552
|
|
1.56
|
|
|
1,154,962
|
|
8,573
|
|
1.48
|
|
||||
FHLB advances
|
2,431,623
|
|
14,538
|
|
1.18
|
|
|
1,764,602
|
|
10,150
|
|
1.14
|
|
||||
Long-term debt
|
225,771
|
|
4,946
|
|
4.38
|
|
|
226,263
|
|
4,809
|
|
4.25
|
|
||||
Total borrowings
|
3,617,987
|
|
27,036
|
|
1.48
|
|
|
3,145,827
|
|
23,532
|
|
1.49
|
|
||||
Total interest-bearing liabilities
|
22,237,182
|
|
$
|
51,709
|
|
0.46
|
%
|
|
20,456,480
|
|
$
|
46,607
|
|
0.46
|
%
|
||
Noninterest-bearing liabilities
|
212,526
|
|
|
|
|
179,467
|
|
|
|
||||||||
Total liabilities
|
22,449,708
|
|
|
|
|
20,635,947
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
122,710
|
|
|
|
|
146,853
|
|
|
|
||||||||
Common shareholders' equity
|
2,324,724
|
|
|
|
|
2,216,709
|
|
|
|
||||||||
Webster Financial Corporation shareholders' equity
|
2,447,434
|
|
|
|
|
2,363,562
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
24,897,142
|
|
|
|
|
$
|
22,999,509
|
|
|
|
||||||
Tax-equivalent net interest income
|
|
$
|
359,314
|
|
|
|
|
$
|
328,558
|
|
|
||||||
Less: Tax-equivalent adjustments
|
|
(6,257
|
)
|
|
|
|
(5,283
|
)
|
|
||||||||
Net interest income
|
|
$
|
353,057
|
|
|
|
|
$
|
323,275
|
|
|
||||||
Net interest margin
|
|
|
3.10
|
%
|
|
|
|
3.07
|
%
|
||||||||
|
•
|
the size, duration and credit risk of the investment portfolio,
|
•
|
the size and duration of the wholesale funding portfolio,
|
•
|
off-balance sheet interest rate contracts, and
|
•
|
the pricing and structure of loans and deposits.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
|
2016 vs. 2015
Increase (decrease) due to |
|
2016 vs. 2015
Increase (decrease) due to |
||||||||||||||||
(In thousands)
|
Rate
(1)
|
Volume
|
Total
|
|
Rate
(1)
|
Volume
|
Total
|
||||||||||||
Interest on interest-earning assets:
|
|
|
|
|
|
|
|
||||||||||||
Loans and leases
|
$
|
(540
|
)
|
$
|
17,254
|
|
$
|
16,714
|
|
|
$
|
(913
|
)
|
$
|
36,909
|
|
$
|
35,996
|
|
Loans held for sale
|
(19
|
)
|
(121
|
)
|
(140
|
)
|
|
38
|
|
(415
|
)
|
(377
|
)
|
||||||
Investments
(2)
|
(659
|
)
|
202
|
|
(457
|
)
|
|
(1,378
|
)
|
1,617
|
|
239
|
|
||||||
Total interest income
|
$
|
(1,218
|
)
|
$
|
17,335
|
|
$
|
16,117
|
|
|
$
|
(2,253
|
)
|
$
|
38,111
|
|
$
|
35,858
|
|
Interest on interest-bearing liabilities:
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
$
|
616
|
|
$
|
224
|
|
$
|
840
|
|
|
$
|
1,276
|
|
$
|
322
|
|
$
|
1,598
|
|
Borrowings
|
804
|
|
423
|
|
1,227
|
|
|
815
|
|
2,689
|
|
3,504
|
|
||||||
Total interest expense
|
$
|
1,420
|
|
$
|
647
|
|
$
|
2,067
|
|
|
$
|
2,091
|
|
$
|
3,011
|
|
$
|
5,102
|
|
Net change in net interest income
|
$
|
(2,638
|
)
|
$
|
16,688
|
|
$
|
14,050
|
|
|
$
|
(4,344
|
)
|
$
|
35,100
|
|
$
|
30,756
|
|
(1)
|
The change attributable to mix, a combined impact of rate and volume, is included with the change due to rate.
|
(2)
|
Investments include: Securities, FHLB and FRB stock, and Interest-bearing deposits.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||
(In thousands)
|
2016
|
2015
|
|
2016
|
2015
|
||||||||
Interest rate swaps on repurchase agreements
|
$
|
—
|
|
$
|
360
|
|
|
$
|
361
|
|
$
|
721
|
|
Interest rate swaps on FHLB advances
|
2,193
|
|
1,985
|
|
|
4,370
|
|
3,942
|
|
||||
Interest rate swaps on senior fixed-rate notes
|
77
|
|
77
|
|
|
153
|
|
153
|
|
||||
Interest rate swaps on brokered CDs and deposits
|
195
|
|
156
|
|
|
390
|
|
238
|
|
||||
Net increase to interest expense on borrowings
|
$
|
2,465
|
|
$
|
2,578
|
|
|
$
|
5,274
|
|
$
|
5,054
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||||
|
|
Increase (decrease)
|
|
|
Increase (decrease)
|
||||||||||||||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|
2016
|
2015
|
|
Amount
|
Percent
|
||||||||||||||
Deposit service fees
|
$
|
34,894
|
|
$
|
33,933
|
|
|
$
|
961
|
|
2.8
|
%
|
|
$
|
69,819
|
|
$
|
66,218
|
|
|
$
|
3,601
|
|
5.4
|
%
|
Loan related fees
|
7,074
|
|
5,729
|
|
|
1,345
|
|
23.5
|
|
|
12,749
|
|
11,408
|
|
|
1,341
|
|
11.8
|
|
||||||
Wealth and investment services
|
7,204
|
|
8,784
|
|
|
(1,580
|
)
|
(18.0
|
)
|
|
14,399
|
|
16,673
|
|
|
(2,274
|
)
|
(13.6
|
)
|
||||||
Mortgage banking activities
|
2,945
|
|
2,517
|
|
|
428
|
|
17.0
|
|
|
5,574
|
|
4,078
|
|
|
1,496
|
|
36.7
|
|
||||||
Increase in cash surrender value of life insurance policies
|
3,664
|
|
3,197
|
|
|
467
|
|
14.6
|
|
|
7,317
|
|
6,349
|
|
|
968
|
|
15.2
|
|
||||||
Gain on sale of investment securities, net
|
94
|
|
486
|
|
|
(392
|
)
|
(80.7
|
)
|
|
414
|
|
529
|
|
|
(115
|
)
|
(21.7
|
)
|
||||||
Impairment loss recognized in earnings
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(149
|
)
|
—
|
|
|
(149
|
)
|
n/m
|
|
||||||
Other income
|
9,200
|
|
4,599
|
|
|
4,601
|
|
100.0
|
|
|
17,326
|
|
11,551
|
|
|
5,775
|
|
50.0
|
|
||||||
Total non-interest income
|
$
|
65,075
|
|
$
|
59,245
|
|
|
$
|
5,830
|
|
9.8
|
%
|
|
$
|
127,449
|
|
$
|
116,806
|
|
|
$
|
10,643
|
|
9.1
|
%
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||||
|
|
Increase (decrease)
|
|
|
Increase (decrease)
|
||||||||||||||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|
2016
|
2015
|
|
Amount
|
Percent
|
||||||||||||||
Compensation and benefits
|
$
|
80,231
|
|
$
|
74,043
|
|
|
$
|
6,188
|
|
8.4
|
%
|
|
$
|
160,540
|
|
$
|
144,907
|
|
|
$
|
15,633
|
|
10.8
|
%
|
Occupancy
|
14,842
|
|
11,680
|
|
|
3,162
|
|
27.1
|
|
|
29,095
|
|
25,276
|
|
|
3,819
|
|
15.1
|
|
||||||
Technology and equipment
|
19,376
|
|
20,315
|
|
|
(939
|
)
|
(4.6
|
)
|
|
39,314
|
|
39,560
|
|
|
(246
|
)
|
(0.6
|
)
|
||||||
Intangible assets amortization
|
1,523
|
|
1,843
|
|
|
(320
|
)
|
(17.4
|
)
|
|
3,077
|
|
3,131
|
|
|
(54
|
)
|
(1.7
|
)
|
||||||
Marketing
|
4,669
|
|
4,245
|
|
|
424
|
|
10.0
|
|
|
9,593
|
|
8,421
|
|
|
1,172
|
|
13.9
|
|
||||||
Professional and outside services
|
3,754
|
|
2,875
|
|
|
879
|
|
30.6
|
|
|
6,565
|
|
5,328
|
|
|
1,237
|
|
23.2
|
|
||||||
Deposit insurance
|
6,633
|
|
5,492
|
|
|
1,141
|
|
20.8
|
|
|
13,419
|
|
11,733
|
|
|
1,686
|
|
14.4
|
|
||||||
Other expense
|
21,750
|
|
17,044
|
|
|
4,706
|
|
27.6
|
|
|
43,620
|
|
33,268
|
|
|
10,352
|
|
31.1
|
|
||||||
Total non-interest expense
|
$
|
152,778
|
|
$
|
137,537
|
|
|
$
|
15,241
|
|
11.1
|
%
|
|
$
|
305,223
|
|
$
|
271,624
|
|
|
$
|
33,599
|
|
12.4
|
%
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||
(In thousands)
|
2016
|
2015
|
|
2016
|
2015
|
||||||||
Net income (loss):
|
|
|
|
|
|
||||||||
Commercial Banking
|
$
|
25,608
|
|
$
|
21,947
|
|
|
$
|
49,149
|
|
$
|
49,740
|
|
Community Banking
|
17,303
|
|
23,033
|
|
|
30,370
|
|
37,628
|
|
||||
HSA Bank
|
9,047
|
|
9,448
|
|
|
19,471
|
|
17,758
|
|
||||
Private Banking
|
310
|
|
297
|
|
|
203
|
|
229
|
|
||||
Corporate and Reconciling
|
(1,665
|
)
|
(2,682
|
)
|
|
(1,543
|
)
|
(3,808
|
)
|
||||
Consolidated Total
|
$
|
50,603
|
|
$
|
52,043
|
|
|
$
|
97,650
|
|
$
|
101,547
|
|
|
At June 30, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Total
|
||||||||||||
Total assets
|
$
|
7,913,743
|
|
$
|
8,616,610
|
|
$
|
95,475
|
|
$
|
516,081
|
|
$
|
7,978,557
|
|
$
|
25,120,466
|
|
Loans and leases
|
7,918,512
|
|
7,767,938
|
|
223
|
|
512,407
|
|
72,949
|
|
16,272,029
|
|
||||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
—
|
|
538,373
|
|
||||||
Deposits
|
3,240,275
|
|
10,822,190
|
|
4,155,760
|
|
233,099
|
|
377,144
|
|
18,828,468
|
|
||||||
Not included in above amounts:
|
|
|
|
|
|
|
||||||||||||
Assets under administration/management
|
—
|
|
2,812,651
|
|
774,739
|
|
1,810,114
|
|
—
|
|
5,397,504
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
|
At December 31, 2015
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Total
|
||||||||||||
Total assets
|
$
|
7,505,513
|
|
$
|
8,441,950
|
|
$
|
95,815
|
|
$
|
493,571
|
|
$
|
8,104,269
|
|
$
|
24,641,118
|
|
Loans and leases
|
7,509,453
|
|
7,592,553
|
|
54
|
|
490,112
|
|
79,563
|
|
15,671,735
|
|
||||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
—
|
|
538,373
|
|
||||||
Deposits
|
3,073,276
|
|
10,449,231
|
|
3,802,313
|
|
228,497
|
|
399,461
|
|
17,952,778
|
|
||||||
Not included in above amounts:
|
|
|
|
|
|
|
||||||||||||
Assets under administration/management
|
—
|
|
2,762,759
|
|
692,306
|
|
1,726,385
|
|
—
|
|
5,181,450
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net interest income
|
$
|
66,136
|
|
|
$
|
62,192
|
|
|
$
|
131,558
|
|
|
$
|
123,770
|
|
Provision for loan and lease losses
|
11,540
|
|
|
12,585
|
|
|
21,788
|
|
|
15,959
|
|
||||
Net interest income after provision
|
54,596
|
|
|
49,607
|
|
|
109,770
|
|
|
107,811
|
|
||||
Non-interest income
|
12,076
|
|
|
7,826
|
|
|
20,859
|
|
|
17,351
|
|
||||
Non-interest expense
|
28,615
|
|
|
27,201
|
|
|
57,304
|
|
|
53,670
|
|
||||
Income before income taxes
|
38,057
|
|
|
30,232
|
|
|
73,325
|
|
|
71,492
|
|
||||
Income tax expense
|
12,449
|
|
|
8,285
|
|
|
24,176
|
|
|
21,752
|
|
||||
Net income
|
$
|
25,608
|
|
|
$
|
21,947
|
|
|
$
|
49,149
|
|
|
$
|
49,740
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Total assets
|
$
|
7,913,743
|
|
|
$
|
7,505,513
|
|
Loans and leases
|
7,918,512
|
|
|
7,509,453
|
|
||
Deposits
|
3,240,275
|
|
|
3,073,276
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net interest income
|
$
|
91,147
|
|
|
$
|
87,605
|
|
|
$
|
181,203
|
|
|
$
|
171,844
|
|
Provision for loan and lease losses
|
2,389
|
|
|
1,009
|
|
|
8,633
|
|
|
7,430
|
|
||||
Net interest income after provision
|
88,758
|
|
|
86,596
|
|
|
172,570
|
|
|
164,414
|
|
||||
Non-interest income
|
27,458
|
|
|
28,280
|
|
|
54,098
|
|
|
53,820
|
|
||||
Non-interest expense
|
90,484
|
|
|
82,461
|
|
|
181,360
|
|
|
164,151
|
|
||||
Income before income taxes
|
25,732
|
|
|
32,415
|
|
|
45,308
|
|
|
54,083
|
|
||||
Income tax expense
|
8,429
|
|
|
9,382
|
|
|
14,938
|
|
|
16,455
|
|
||||
Net income
|
$
|
17,303
|
|
|
$
|
23,033
|
|
|
$
|
30,370
|
|
|
$
|
37,628
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Total assets
|
$
|
8,616,610
|
|
|
$
|
8,441,950
|
|
Loans
|
7,767,938
|
|
|
7,592,553
|
|
||
Deposits
|
10,822,190
|
|
|
10,449,231
|
|
||
|
|
|
|
||||
Assets under administration
|
2,812,651
|
|
|
2,762,759
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net interest income
|
$
|
20,005
|
|
|
$
|
17,763
|
|
|
$
|
39,924
|
|
|
$
|
34,228
|
|
Non-interest income
|
18,114
|
|
|
15,677
|
|
|
38,069
|
|
|
30,499
|
|
||||
Non-interest expense
|
24,688
|
|
|
20,248
|
|
|
48,945
|
|
|
39,203
|
|
||||
Income before income taxes
|
13,431
|
|
|
13,192
|
|
|
29,048
|
|
|
25,524
|
|
||||
Income tax expense
|
4,384
|
|
|
3,744
|
|
|
9,577
|
|
|
7,766
|
|
||||
Net income
|
$
|
9,047
|
|
|
$
|
9,448
|
|
|
$
|
19,471
|
|
|
$
|
17,758
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Total assets
|
$
|
95,475
|
|
|
$
|
95,815
|
|
Deposits
|
4,155,760
|
|
|
3,802,313
|
|
||
|
|
|
|
||||
Assets under administration
|
774,739
|
|
|
692,306
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net interest income
|
$
|
2,726
|
|
|
$
|
2,501
|
|
|
$
|
5,599
|
|
|
$
|
4,896
|
|
Provision (benefit) for loan and lease losses
|
72
|
|
|
(177
|
)
|
|
101
|
|
|
(234
|
)
|
||||
Net interest income after provision (benefit)
|
2,654
|
|
|
2,678
|
|
|
5,498
|
|
|
5,130
|
|
||||
Non-interest income
|
2,679
|
|
|
2,350
|
|
|
5,044
|
|
|
4,676
|
|
||||
Non-interest expense
|
4,868
|
|
|
4,597
|
|
|
10,239
|
|
|
9,476
|
|
||||
Income before income taxes
|
465
|
|
|
431
|
|
|
303
|
|
|
330
|
|
||||
Income tax expense
|
155
|
|
|
134
|
|
|
100
|
|
|
101
|
|
||||
Net income
|
$
|
310
|
|
|
$
|
297
|
|
|
$
|
203
|
|
|
$
|
229
|
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Total assets
|
$
|
516,081
|
|
|
$
|
493,571
|
|
Loans
|
512,407
|
|
|
490,112
|
|
||
Deposits
|
233,099
|
|
|
228,497
|
|
||
|
|
|
|
||||
Assets under administration/management
|
1,810,114
|
|
|
1,726,385
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|
Amortized
Cost |
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
984
|
|
$
|
—
|
|
$
|
—
|
|
$
|
984
|
|
|
$
|
924
|
|
$
|
—
|
|
$
|
—
|
|
$
|
924
|
|
Agency CMO
|
471,442
|
|
9,889
|
|
(746
|
)
|
480,585
|
|
|
546,168
|
|
5,532
|
|
(2,946
|
)
|
548,754
|
|
||||||||
Agency MBS
|
1,020,733
|
|
10,815
|
|
(3,192
|
)
|
1,028,356
|
|
|
1,075,941
|
|
6,459
|
|
(17,291
|
)
|
1,065,109
|
|
||||||||
Agency CMBS
|
317,146
|
|
4,238
|
|
(40
|
)
|
321,344
|
|
|
215,670
|
|
639
|
|
(959
|
)
|
215,350
|
|
||||||||
CMBS
|
487,778
|
|
6,168
|
|
(2,539
|
)
|
491,407
|
|
|
574,686
|
|
7,485
|
|
(2,905
|
)
|
579,266
|
|
||||||||
CLO
|
464,350
|
|
1,116
|
|
(3,346
|
)
|
462,120
|
|
|
431,837
|
|
592
|
|
(3,270
|
)
|
429,159
|
|
||||||||
Single issuer trust preferred securities
|
42,264
|
|
—
|
|
(5,491
|
)
|
36,773
|
|
|
42,168
|
|
—
|
|
(4,998
|
)
|
37,170
|
|
||||||||
Corporate debt securities
|
97,780
|
|
2,601
|
|
—
|
|
100,381
|
|
|
104,031
|
|
2,290
|
|
—
|
|
106,321
|
|
||||||||
Equities - financial services
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,499
|
|
—
|
|
(921
|
)
|
2,578
|
|
||||||||
Securities available-for-sale
|
$
|
2,902,477
|
|
$
|
34,827
|
|
$
|
(15,354
|
)
|
$
|
2,921,950
|
|
|
$
|
2,994,924
|
|
$
|
22,997
|
|
$
|
(33,290
|
)
|
$
|
2,984,631
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
356,143
|
|
$
|
6,758
|
|
$
|
(99
|
)
|
$
|
362,802
|
|
|
$
|
407,494
|
|
$
|
3,717
|
|
$
|
(2,058
|
)
|
$
|
409,153
|
|
Agency MBS
|
1,990,269
|
|
49,094
|
|
(1,900
|
)
|
2,037,463
|
|
|
2,030,176
|
|
38,813
|
|
(19,908
|
)
|
2,049,081
|
|
||||||||
Agency CMBS
|
658,551
|
|
18,939
|
|
—
|
|
677,490
|
|
|
686,086
|
|
4,253
|
|
(325
|
)
|
690,014
|
|
||||||||
Municipal bonds and notes
|
548,955
|
|
20,865
|
|
(21
|
)
|
569,799
|
|
|
435,905
|
|
12,019
|
|
(417
|
)
|
447,507
|
|
||||||||
CMBS
|
364,644
|
|
13,133
|
|
(9
|
)
|
377,768
|
|
|
360,018
|
|
5,046
|
|
(2,704
|
)
|
362,360
|
|
||||||||
Private Label MBS
|
2,412
|
|
20
|
|
—
|
|
2,432
|
|
|
3,373
|
|
46
|
|
—
|
|
3,419
|
|
||||||||
Securities held-to-maturity
|
$
|
3,920,974
|
|
$
|
108,809
|
|
$
|
(2,029
|
)
|
$
|
4,027,754
|
|
|
$
|
3,923,052
|
|
$
|
63,894
|
|
$
|
(25,412
|
)
|
$
|
3,961,534
|
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||
(Dollars in thousands)
|
Amount
|
%
|
|
Amount
|
%
|
||||
Residential
|
$
|
4,137,001
|
|
25.4
|
|
$
|
4,042,960
|
|
25.8
|
Consumer:
|
|
|
|
|
|
||||
Home equity
|
2,341,460
|
|
14.4
|
|
2,360,244
|
|
15.1
|
||
Liquidating - home equity
|
72,642
|
|
0.4
|
|
79,171
|
|
0.5
|
||
Other consumer
|
299,980
|
|
1.8
|
|
248,830
|
|
1.6
|
||
Total consumer
|
2,714,082
|
|
16.7
|
|
2,688,245
|
|
17.2
|
||
Commercial:
|
|
|
|
|
|
||||
Commercial non-mortgage
|
3,810,981
|
|
23.4
|
|
3,575,042
|
|
22.8
|
||
Asset-based
|
781,679
|
|
4.8
|
|
755,709
|
|
4.8
|
||
Total commercial
|
4,592,660
|
|
28.2
|
|
4,330,751
|
|
27.6
|
||
Commercial real estate:
|
|
|
|
|
|
||||
Commercial real estate
|
3,913,087
|
|
24.0
|
|
3,696,596
|
|
23.6
|
||
Commercial construction
|
282,505
|
|
1.7
|
|
300,246
|
|
1.9
|
||
Total commercial real estate
|
4,195,592
|
|
25.8
|
|
3,996,842
|
|
25.5
|
||
Equipment financing
|
612,704
|
|
3.8
|
|
594,984
|
|
3.8
|
||
Net unamortized premiums
|
8,119
|
|
—
|
|
7,477
|
|
—
|
||
Net deferred fees
|
11,871
|
|
0.1
|
|
10,476
|
|
0.1
|
||
Total loans and leases
|
$
|
16,272,029
|
|
100.0
|
|
$
|
15,671,735
|
|
100.0
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||
Non-performing loans and leases as a percentage of loans and leases
|
0.82
|
%
|
|
0.89
|
%
|
Non-performing assets as a percentage of loans and leases plus OREO
|
0.84
|
|
|
0.92
|
|
Non-performing assets as a percentage of total assets
|
0.55
|
|
|
0.59
|
|
ALLL as a percentage of non-performing loans and leases
|
135.75
|
|
|
125.05
|
|
ALLL as a percentage of loans and leases
|
1.11
|
|
|
1.12
|
|
Net charge-offs as a percentage of average loans and leases
(1)
|
0.30
|
|
|
0.23
|
|
Ratio of ALLL to net charge-offs
(1)
|
3.73x
|
|
|
5.21x
|
|
(1)
|
Calculated for the
June 30, 2016
period based on the year-to-date net charge-offs, annualized.
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||||
(Dollars in thousands)
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
||||||
Residential
|
$
|
52,437
|
|
1.27
|
%
|
|
$
|
54,101
|
|
1.34
|
%
|
Consumer:
|
|
|
|
|
|
||||||
Home equity
|
32,826
|
|
1.40
|
|
|
33,414
|
|
1.42
|
|
||
Liquidating - home equity
|
3,356
|
|
4.62
|
|
|
3,865
|
|
4.88
|
|
||
Other consumer
|
1,190
|
|
0.40
|
|
|
558
|
|
0.22
|
|
||
Total consumer
|
37,372
|
|
1.38
|
|
|
37,837
|
|
1.41
|
|
||
Commercial:
|
|
|
|
|
|
||||||
Commercial non-mortgage
|
28,700
|
|
0.75
|
|
|
27,086
|
|
0.76
|
|
||
Asset-based loans
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Total commercial
|
28,700
|
|
0.62
|
|
|
27,086
|
|
0.63
|
|
||
Commercial real estate:
|
|
|
|
|
|
||||||
Commercial real estate
|
13,923
|
|
0.36
|
|
|
16,750
|
|
0.45
|
|
||
Commercial construction
|
—
|
|
—
|
|
|
3,461
|
|
1.15
|
|
||
Total commercial real estate
|
13,923
|
|
0.33
|
|
|
20,211
|
|
0.51
|
|
||
Equipment financing
|
480
|
|
0.08
|
|
|
706
|
|
0.12
|
|
||
Total non-performing loans and leases
(3)
|
132,912
|
|
0.82
|
|
|
139,941
|
|
0.89
|
|
||
Deferred costs and unamortized premiums
|
116
|
|
|
|
128
|
|
|
||||
Total recorded investment in non-performing loans and leases
|
$
|
133,028
|
|
|
|
$
|
140,069
|
|
|
||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Total non-performing loans and leases
|
$
|
132,912
|
|
|
|
$
|
139,941
|
|
|
||
Foreclosed and repossessed assets:
|
|
|
|
|
|
||||||
Residential and consumer
|
4,215
|
|
|
|
5,029
|
|
|
||||
Commercial
|
220
|
|
|
|
—
|
|
|
||||
Total foreclosed and repossessed assets
|
$
|
4,435
|
|
|
|
$
|
5,029
|
|
|
||
Total non-performing assets
|
$
|
137,347
|
|
|
|
$
|
144,970
|
|
|
(1)
|
Balances by class exclude the impact of net deferred costs and unamortized premiums.
|
(2)
|
Represents the principal balance of non-performing loans and leases as a percentage of the outstanding principal balance within the comparable loan and lease category. The percentage excludes the impact of deferred costs and unamortized premiums.
|
(3)
|
Includes non-accrual restructured loans and leases of
$79.5 million
at
June 30, 2016
and
$100.9 million
at
December 31, 2015
.
|
(In thousands)
|
At June 30,
2016 |
|
At December 31,
2015 |
||||
Accrual status
|
$
|
168,030
|
|
|
$
|
171,784
|
|
Non-accrual status
|
79,468
|
|
|
100,906
|
|
||
Total recorded investment of TDRs
(1)
|
$
|
247,498
|
|
|
$
|
272,690
|
|
Accruing TDRs performing under modified terms more than one year
|
56.5
|
%
|
|
55.0
|
%
|
||
Specific reserves for TDRs included in the balance of ALLL
|
$
|
18,008
|
|
|
$
|
21,405
|
|
Additional funds committed to borrowers in TDR status
|
2,307
|
|
|
1,133
|
|
(1)
|
Excludes accrued interest receivable of
$1.0 million
at
June 30, 2016
and
$1.1 million
at
December 31, 2015
.
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||
(Dollars in thousands)
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
||||
Residential
|
$
|
9,632
|
|
0.23
|
|
$
|
15,032
|
|
0.37
|
Consumer:
|
|
|
|
|
|
||||
Home equity
|
9,901
|
|
0.42
|
|
12,225
|
|
0.52
|
||
Liquidating - home equity
|
1,304
|
|
1.80
|
|
1,036
|
|
1.31
|
||
Other consumer
|
2,640
|
|
0.88
|
|
2,000
|
|
0.80
|
||
Commercial:
|
|
|
|
|
|
||||
Commercial non-mortgage
|
2,050
|
|
0.05
|
|
4,052
|
|
0.11
|
||
Commercial real estate:
|
|
|
|
|
|
||||
Commercial real estate
|
3,017
|
|
0.08
|
|
2,250
|
|
0.06
|
||
Equipment financing
|
404
|
|
0.07
|
|
602
|
|
0.10
|
||
Loans and leases past due 30-89 days
|
28,948
|
|
0.18
|
|
37,197
|
|
0.24
|
||
Residential
|
—
|
|
—
|
|
2,029
|
|
0.05
|
||
Commercial non-mortgage
|
5,738
|
|
0.15
|
|
22
|
|
—
|
||
Loans and leases past due 90 days and accruing
|
5,738
|
|
0.04
|
|
2,051
|
|
0.01
|
||
Total loans and leases over 30 days past due and accruing income
|
$
|
34,686
|
|
0.21
|
|
$
|
39,248
|
|
0.25
|
Deferred costs and unamortized premiums
|
66
|
|
|
|
86
|
|
|
||
Total
|
$
|
34,752
|
|
|
|
$
|
39,334
|
|
|
(1)
|
Past due loan and lease balances exclude non-accrual loans and leases.
|
(2)
|
Represents the principal balance of past due loans and leases as a percentage of the outstanding principal balance within the comparable loan and lease category. The percentage excludes the impact of deferred costs and unamortized premiums.
|
•
|
Impaired loans and leases are either analyzed on an individual or pooled basis and assessed for specific reserves based on collateral, cash flow, and probability of re-default specific to each loan or lease;
|
•
|
Loans and leases with similar risk characteristics are segmented into pools of loans and leases with similar risk characteristics are modeled using quantitative methods. The commercial portfolio loss estimate is based on the expected loss methodology, specifically, probability of default and loss given default. Changes in risk ratings and other risk factors, for both performing and non-performing loans and leases, will affect the calculation of the allowance. Residential and consumer portfolio loss estimates are based on roll rate models. Key assumptions that impact forecasted losses are refreshed at least annually. These include the LEP that determines the forecast horizon for each portfolio, and the look back period that determines the amount of historical data used to calculate probability of default, loss given default, and delinquency migration rates. Webster Bank considers other quantitative contributing factors for risks impacting the performance of loan portfolios that are not explicitly included in the quantitative models and may adjust loss estimates based on these factors. Contributing factors may include, but are not limited to, collateral values, unemployment, and other changes in economic activity, and internal performance metrics; and
|
•
|
Webster Bank also considers qualitative factors that are not explicitly included in the quantitative models but that can have an incremental or regressive impact on losses incurred in the current loan and lease portfolio. Examples include staffing levels, credit concentrations, and macro-economic trends. The quantitative and qualitative contributing factors are consistent with interagency regulatory guidance.
|
|
At June 30, 2016
|
|
At December 31, 2015
|
||||||
(Dollars in thousands)
|
Amount
|
%
(1)
|
|
Amount
|
%
(1)
|
||||
Residential
|
$
|
24,413
|
|
0.59
|
|
$
|
25,876
|
|
0.64
|
Consumer
|
42,956
|
|
1.57
|
|
42,052
|
|
1.56
|
||
Commercial
|
73,822
|
|
1.61
|
|
66,686
|
|
1.55
|
||
Commercial real estate
|
33,622
|
|
0.80
|
|
34,889
|
|
0.87
|
||
Equipment financing
|
5,615
|
|
0.91
|
|
5,487
|
|
0.91
|
||
Total ALLL
|
$
|
180,428
|
|
1.11
|
|
$
|
174,990
|
|
1.12
|
(1)
|
Percentage represents allocated ALLL to total loans and leases within the comparable category. However, the allocation of a portion of the ALLL to one category of loans and leases does not preclude its availability to absorb losses in other categories.
|
|
At or for the three months ended June 30,
|
|
At or for the six months ended June 30,
|
||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
174,201
|
|
|
$
|
161,970
|
|
|
$
|
174,990
|
|
|
$
|
159,264
|
|
Provision
|
14,000
|
|
|
12,750
|
|
|
29,600
|
|
|
22,500
|
|
||||
Charge-offs:
|
|
|
|
|
|
|
|
||||||||
Residential
|
(638
|
)
|
|
(1,461
|
)
|
|
(2,232
|
)
|
|
(3,416
|
)
|
||||
Consumer
|
(4,556
|
)
|
|
(3,853
|
)
|
|
(8,977
|
)
|
|
(8,149
|
)
|
||||
Commercial
|
(3,525
|
)
|
|
(2,541
|
)
|
|
(14,733
|
)
|
|
(2,796
|
)
|
||||
Commercial real estate
|
(995
|
)
|
|
(1,091
|
)
|
|
(2,521
|
)
|
|
(4,244
|
)
|
||||
Equipment financing
|
(70
|
)
|
|
(15
|
)
|
|
(221
|
)
|
|
(30
|
)
|
||||
Total charge-offs
|
(9,784
|
)
|
|
(8,961
|
)
|
|
(28,684
|
)
|
|
(18,635
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
||||||||
Residential
|
133
|
|
|
369
|
|
|
854
|
|
|
477
|
|
||||
Consumer
|
1,194
|
|
|
1,049
|
|
|
2,408
|
|
|
2,211
|
|
||||
Commercial
|
316
|
|
|
529
|
|
|
773
|
|
|
1,544
|
|
||||
Commercial real estate
|
212
|
|
|
52
|
|
|
286
|
|
|
254
|
|
||||
Equipment financing
|
156
|
|
|
102
|
|
|
201
|
|
|
245
|
|
||||
Total recoveries
|
2,011
|
|
|
2,101
|
|
|
4,522
|
|
|
4,731
|
|
||||
Net charge-offs
|
(7,773
|
)
|
|
(6,860
|
)
|
|
(24,162
|
)
|
|
(13,904
|
)
|
||||
Ending balance
|
$
|
180,428
|
|
|
$
|
167,860
|
|
|
$
|
180,428
|
|
|
$
|
167,860
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Residential
|
0.05
|
%
|
|
0.12
|
%
|
|
0.07
|
%
|
|
0.16
|
%
|
Consumer
|
0.49
|
|
|
0.43
|
|
|
0.48
|
|
|
0.46
|
|
Commercial
|
0.29
|
|
|
0.20
|
|
|
0.63
|
|
|
0.06
|
|
Commercial real estate
|
0.08
|
|
|
0.11
|
|
|
0.11
|
|
|
0.22
|
|
Equipment financing
|
(0.06
|
)
|
|
(0.06
|
)
|
|
0.01
|
|
|
(0.08
|
)
|
Total net charge-offs to total average loans and leases
(1)
|
0.19
|
%
|
|
0.19
|
%
|
|
0.30
|
%
|
|
0.20
|
%
|
(1)
|
Calculated based on period to date net charge-offs (recoveries), annualized.
|
•
|
the size and duration of the investment portfolio,
|
•
|
the size and duration of the wholesale funding portfolio,
|
•
|
off-balance sheet interest rate contracts, and
|
•
|
the pricing and structure of loans and deposits.
|
NII
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
June 30, 2016
|
N/A
|
N/A
|
2.1%
|
4.3%
|
December 31, 2015
|
N/A
|
N/A
|
1.6%
|
3.2%
|
PPNR
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
June 30, 2016
|
N/A
|
N/A
|
3.0%
|
6.3%
|
December 31, 2015
|
N/A
|
N/A
|
1.9%
|
4.0%
|
NII
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
June 30, 2016
|
N/A
|
N/A
|
0.3%
|
1.1%
|
|
(5.9)%
|
(2.5)%
|
2.0%
|
3.7%
|
December 31, 2015
|
N/A
|
N/A
|
0.2%
|
0.8%
|
|
(4.2)%
|
(1.8)%
|
1.5%
|
2.7%
|
PPNR
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
June 30, 2016
|
N/A
|
N/A
|
(0.3)%
|
0.3%
|
|
(10.7)%
|
(4.5)%
|
4.0%
|
7.4%
|
December 31, 2015
|
N/A
|
N/A
|
(0.5)%
|
(0.3)%
|
|
(6.9)%
|
(3.0)%
|
2.7%
|
5.0%
|
|
Book
Value
|
Estimated
Economic
Value
|
Estimated Economic Value Change
|
|||||||
|
||||||||||
(Dollars in thousands)
|
-100 bp
|
+100 bp
|
||||||||
June 30, 2016
|
|
|
|
|
||||||
Assets
|
$
|
25,120,466
|
|
$
|
24,844,694
|
|
N/A
|
$
|
(482,252
|
)
|
Liabilities
|
22,643,500
|
|
22,315,151
|
|
N/A
|
(594,606
|
)
|
|||
Total
|
$
|
2,476,966
|
|
$
|
2,529,543
|
|
N/A
|
$
|
112,354
|
|
Net change as % base net economic value
|
|
|
|
4.4
|
%
|
|||||
|
|
|
|
|
||||||
December 31, 2015
|
|
|
|
|
||||||
Assets
|
$
|
24,641,118
|
|
$
|
24,407,172
|
|
N/A
|
$
|
(490,190
|
)
|
Liabilities
|
22,227,158
|
|
21,484,973
|
|
N/A
|
(553,740
|
)
|
|||
Total
|
$
|
2,413,960
|
|
$
|
2,922,199
|
|
N/A
|
$
|
63,550
|
|
Net change as % base net economic value
|
|
|
|
2.2
|
%
|
Period
|
Total
Number of
Shares
Purchased
(1)
|
Average Price
Paid
Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum
Dollar Amount Available for Repurchase
Under the Plans
or Programs
(1)
|
|
Total
Number of
Warrants
Purchased
(2)
|
Average Price
Paid
Per Warrant
|
|||||||||
April 1-30, 2016
|
17,055
|
|
$
|
36.78
|
|
—
|
|
$
|
15,488,842
|
|
|
—
|
|
$
|
—
|
|
May 1-31, 2016
|
3,607
|
|
35.62
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
June 1-30, 2016
|
67
|
|
37.11
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
Total
|
20,729
|
|
36.58
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
(1)
|
On December 6, 2012, the Company announced that its Board of Directors had approved the current common stock repurchase program which authorizes management to repurchase, in open market or privately negotiated transactions, subject to market conditions and other factors, up to a maximum of $100 million of common stock, and will remain in effect until fully utilized or until modified, superseded, or terminated.
|
(2)
|
On June 3, 2011, the Company announced that, with approval from its Board of Directors, it had repurchased a significant number of the warrants issued as part of Webster's participation in the U.S. Treasury's Capital Purchase Program in a public auction conducted on behalf of the U.S. Treasury. The Board approved plan provides for additional repurchases from time-to-time, as permitted by securities laws and other legal requirements. There remain
53,027
outstanding warrants to purchase a share (1:1) of the Company's common stock, which carry an exercise price of $18.28 per share and expire on November 21, 2018.
|
|
|
|
|
WEBSTER FINANCIAL CORPORATION
|
|
|
|
|
Registrant
|
|
|
|
|
|
Date: August 9, 2016
|
|
|
By:
|
/s/ James C. Smith
|
|
|
|
|
James C. Smith
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
Date: August 9, 2016
|
|
|
By:
|
/s/ Glenn I. MacInnes
|
|
|
|
|
Glenn I. MacInnes
|
|
|
|
|
Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
Date: August 9, 2016
|
|
|
By:
|
/s/ Gregory S. Madar
|
|
|
|
|
Gregory S. Madar
|
|
|
|
|
Senior Vice President and
|
|
|
|
|
Chief Accounting Officer
|
|
|
|
|
(Principal Accounting Officer)
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
3
|
|
Certificate of Incorporation and Bylaws.
|
|
|
|
|
|
|
|
|
3.1
|
|
Fourth Amended and Restated Certificate of Incorporation
|
|
X
|
|
|
|
|
|
|
3.2
|
|
Certificate of Designations establishing the rights of the Company's 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock
|
|
|
|
8-K
|
|
3.1
|
|
6/11/2008
|
3.3
|
|
Certificate of Designations establishing the rights of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
|
|
|
8-K
|
|
3.1
|
|
11/24/2008
|
3.4
|
|
Certificate of Designations establishing the rights of the Company's Perpetual Participating Preferred Stock, Series C
|
|
|
|
8-K
|
|
3.1
|
|
7/31/2009
|
3.5
|
|
Certificate of Designations establishing the rights of the Company's Non-Voting Perpetual Participating Preferred Stock, Series D
|
|
|
|
8-K
|
|
3.2
|
|
7/31/2009
|
3.6
|
|
Certificate of Designations establishing the rights of the Company's 6.40% Series E Non-Cumulative Perpetual Preferred Stock
|
|
|
|
8-A12B
|
|
3.3
|
|
12/4/2012
|
3.7
|
|
Bylaws, as amended effective June 9, 2014
|
|
|
|
8-K
|
|
3.1
|
|
6/12/2014
|
31.1
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
|
|
X
|
|
|
|
|
|
|
31.2
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
|
|
X
|
|
|
|
|
|
|
32.1 +
|
|
Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
|
|
X
|
|
|
|
|
|
|
32.2 +
|
|
Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
|
|
X
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
X
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
X
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
X
|
|
|
|
|
|
|
WEBSTER FINANCIAL CORPORATION
|
||
|
|
|
By:
|
|
/s/ James C. Smith
|
|
|
James C. Smith
|
|
|
Chairman and Chief Executive Officer
|
ATTEST:
|
||
|
|
|
By:
|
|
/s/ Harriet Munrett Wolfe
|
|
|
Harriet Munrett Wolfe
|
|
|
Executive Vice President,
|
|
|
General Counsel and Secretary
|
EXHIBIT A
|
|
Subsection 1
.
|
Five-Year Restrictions on Acquisitions of Control and Offers to Acquire Control.
|
|
Subsection 2
.
|
[Intentionally Omitted.]
|
|
Subsection 3
.
|
Excess Shares.
|
|
Subsection 4
.
|
Approval Required for Offers to Acquire Control after Five Years.
|
|
Subsection 5
.
|
Certain Definitions.
|
|
Subsection 6
.
|
Inapplicability to Public Offering or Employee Benefit Plans.
|
|
Subsection 7
.
|
References to FSLIC.
|
|
Subsection 1
.
|
Vote Required for Certain Business Combinations.
|
|
Subsection 2
.
|
When Higher Vote Is Not Required.
|
|
Subsection 3.
|
Certain Definitions.
|
|
Subsection 4
.
|
Powers of the Board of Directors.
|
|
Subsection 5
.
|
No Effect on Fiduciary Obligations of Interested Shareholders.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Webster Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ James C. Smith
|
James C. Smith
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Webster Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Glenn I. MacInnes
|
|
Glenn I. MacInnes
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
(a)
|
the Form 10-Q Report of the Company for the quarter ended June 30, 2016 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ James C. Smith
|
James C. Smith
|
Chairman and Chief Executive Officer
|
(a)
|
the Form 10-Q Report of the Company for the quarter ended June 30, 2016 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
/s/ Glenn I. MacInnes
|
|
Glenn I. MacInnes
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|