|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal
|
Year Ended December 31, 2016
|
Large accelerated filer
|
☑
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
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Page No.
|
Key to Acronyms and Terms
|
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Item 1.
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Business
|
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Item 1A.
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Risk Factors
|
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Item 1B.
|
Unresolved Staff Comments
|
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Item 2.
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Properties
|
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
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Item 6.
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Selected Financial Data
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Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
|
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Item 8.
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Financial Statements and Supplementary Data
|
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
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Item 9A.
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Controls and Procedures
|
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Item 9B.
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Other Information
|
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Item 10.
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Directors, Executive Officers and Corporate Governance
|
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Item 11.
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Executive Compensation
|
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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Item 14.
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Principal Accountant Fees and Services
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Item 15.
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Exhibits and Financial Statement Schedules
|
|
|
|
|
|
|
|
Agency CMBS
|
Agency commercial mortgage-backed securities
|
Agency CMO
|
Agency collateralized mortgage obligations
|
Agency MBS
|
Agency mortgage-backed securities
|
ALCO
|
Asset/Liability 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
|
BHC Act
|
Bank Holding Company Act of 1956, as amended
|
Capital Rules
|
Final rules establishing a new comprehensive capital framework for U.S. banking organizations
|
CCRP
|
Composite Credit Risk Profile
|
CDI
|
Core deposit intangible assets
|
CET1
|
Common Equity Tier 1 Capital defined by Basel III capital rules
|
CFPB
|
Consumer Financial Protection Bureau
|
CLO
|
Collateralized loan obligation securities
|
CMBS
|
Non-agency commercial mortgage-backed securities
|
CRA
|
Community Reinvestment Act of 1977
|
DIF
|
Federal Deposit Insurance Fund
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
DTA
|
Deferred tax asset
|
ERMC
|
Enterprise Risk Management Committee
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FICO
|
Fair Isaac Corporation
|
FINRA
|
Financial Industry Regulatory Authority
|
FRA
|
Federal Reserve Act
|
FRB
|
Federal Reserve Bank
|
FTP
|
Funds Transfer Pricing, a matched maturity funding concept
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
Holding Company
|
Webster Financial Corporation
|
HSA Bank
|
A division of Webster Bank, National Association
|
ISDA
|
International Swaps 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/OCL
|
Other comprehensive income (loss)
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary impairment
|
PPNR
|
Pre-tax, pre-provision net revenue
|
QM
|
Qualified mortgage
|
RPA
|
Risk participation agreement
|
SEC
|
United States Securities and Exchange Commission
|
SERP
|
Supplemental defined benefit retirement plan
|
SIPC
|
Securities Investor Protection Corporation
|
TDR
|
Troubled debt restructuring, defined in ASC 310-40 "
Receivables-Troubled Debt Restructurings by Creditors
"
|
UTB
|
Unrecognized tax benefit
|
UTP
|
Uncertain tax position
|
VIE
|
Variable interest entity, defined in ASC 810-10 "
Consolidation-Overall
"
|
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
|
•
|
4.5% CET1 to risk-weighted assets;
|
•
|
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;
|
•
|
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
|
•
|
4.0% Tier 1 capital to adjusted quarterly average consolidated assets, as defined (called "leverage ratio").
|
•
|
consumer and business confidence levels may decline and lead to less credit usage and increases in delinquencies and default rates;
|
•
|
our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage, and underwrite our customers become less predictive of future behaviors;
|
•
|
customer desire to do business with us may decline, whether as a result of a decreased demand for loans or other financial products and services or decreased deposits or other investments in accounts with us;
|
•
|
the value of DTAs may be materially adversely affected by a reduction in the U.S. corporate income tax rate; and
|
•
|
competition in our industry could intensify as a result of the increasing consolidation of financial services companies.
|
•
|
actual or anticipated variations in operating results;
|
•
|
changes in recommendations by securities analysts;
|
•
|
operating and stock price performance of other companies that investors deem comparable to us;
|
•
|
news reports relating to trends, concerns and other issues in the financial services industry;
|
•
|
new technology used, or services offered, by competitors;
|
•
|
perceptions in the marketplace regarding us and/or our competitors;
|
•
|
significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;
|
•
|
failure to integrate acquisitions or realize anticipated benefits from acquisitions;
|
•
|
additional investments from third parties;
|
•
|
issuance of additional shares of stock;
|
•
|
changes in government regulations or actions by government regulators; and
|
•
|
geo-political conditions such as acts or threats of terrorism or military conflicts.
|
•
|
the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards and safe, sound assets;
|
•
|
the ability to expand market position;
|
•
|
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
•
|
the rate at which we introduce new products and services relative to our competitors;
|
•
|
customer satisfaction with our level of service; and
|
•
|
industry and general economic trends.
|
•
|
The possible loss of key employees and customers of the target;
|
•
|
Potential disruption of the target business;
|
•
|
Potential changes in banking or tax laws or regulations that may affect the target business;
|
•
|
Potential exposure to unknown or contingent liabilities of the target; and
|
•
|
Potential difficulties in integrating the target business into our own.
|
Location
|
Leased
|
Owned
|
Total
|
|||
Connecticut
|
76
|
|
41
|
|
117
|
|
Massachusetts
|
25
|
|
12
|
|
37
|
|
Rhode Island
|
9
|
|
4
|
|
13
|
|
New York
|
8
|
|
—
|
|
8
|
|
Total banking centers
|
118
|
|
57
|
|
175
|
|
|
2016
|
|
2015
|
||||||||||||||||
|
High
|
Low
|
Cash Dividends Declared
|
|
High
|
Low
|
Cash Dividends Declared
|
||||||||||||
Fourth quarter
|
$
|
55.80
|
|
$
|
36.96
|
|
$
|
0.25
|
|
|
$
|
40.72
|
|
$
|
34.17
|
|
$
|
0.23
|
|
Third quarter
|
38.97
|
|
31.45
|
|
0.25
|
|
|
40.60
|
|
30.97
|
|
0.23
|
|
||||||
Second quarter
|
39.61
|
|
31.29
|
|
0.25
|
|
|
41.34
|
|
34.88
|
|
0.23
|
|
||||||
First quarter
|
37.18
|
|
30.09
|
|
0.23
|
|
|
37.38
|
|
29.02
|
|
0.20
|
|
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 |
|||||||||
October 1-31, 2016
|
18,502
|
|
$
|
39.47
|
|
—
|
|
$
|
15,488,842
|
|
|
—
|
|
$
|
—
|
|
November 1-30, 2016
|
34,251
|
|
40.48
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
December 1-31, 2016
|
76,508
|
|
54.31
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
Total
|
129,261
|
|
48.52
|
|
—
|
|
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.
|
|
Period Ending December 31,
|
|||||||||||||||||
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
||||||||||||
Webster Financial Corporation
|
$
|
100
|
|
$
|
102
|
|
$
|
159
|
|
$
|
170
|
|
$
|
199
|
|
$
|
299
|
|
S&P 500 Index
|
$
|
100
|
|
$
|
116
|
|
$
|
154
|
|
$
|
175
|
|
$
|
177
|
|
$
|
198
|
|
KRX Index
|
$
|
100
|
|
$
|
113
|
|
$
|
166
|
|
$
|
170
|
|
$
|
181
|
|
$
|
251
|
|
•
|
local, regional, national and international economic conditions and the impact they may have on us and our customers;
|
•
|
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, insurance and healthcare) with which we and our subsidiaries must comply, including the Dodd-Frank Act and the Capital Rules;
|
•
|
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 FASB 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 assessing and 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 for impairment of goodwill and other intangible assets; and
|
•
|
assessing the realizability of DTAs and the measurement of UTPs.
|
Financial Instrument
|
|
Hierarchy
|
|
Valuation Methodology
|
Available-for-sale securities
|
|
Level 2
|
|
Consists of Agency CMO, Agency MBS, Agency CMBS, CMBS, CLO, corporate debt, and single issuer trust preferred securities, for which quoted market prices are not available. Management employs an independent pricing service that utilizes matrix pricing to calculate fair value. This fair value measurement considers observable data such as dealer quotes, dealer price indications, market spreads, credit information, and the respective terms and conditions for debt instruments. Procedures are in place to monitor assumptions and establish processes to challenge valuations received from pricing services that appear unusual or unexpected.
|
Derivative instruments
|
|
Level 2
|
|
Consists of interest rate swaps and mortgage banking derivatives. Management uses readily observable market parameters to value these contracts mortgage banking derivatives. Further, for interest rate swaps, third-party consultants are utilized.
|
Originated loans held for sale
|
|
Level 2
|
|
Consists of residential mortgage loans originated with intent to sell the loans. Management uses quoted market prices of similar loans sold in conjunction with securitized transactions as the basis to value these loans.
|
|
At or for the years ended December 31,
|
||||||||||||||
(Dollars in thousands, except per share data)
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||
BALANCE SHEETS
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
26,072,529
|
|
$
|
24,641,118
|
|
$
|
22,497,175
|
|
$
|
20,843,577
|
|
$
|
20,104,149
|
|
Loans and leases, net
|
16,832,268
|
|
15,496,745
|
|
13,740,761
|
|
12,547,203
|
|
11,851,567
|
|
|||||
Investment securities
|
7,151,749
|
|
6,907,683
|
|
6,666,828
|
|
6,465,652
|
|
6,243,689
|
|
|||||
Deposits
|
19,303,857
|
|
17,952,778
|
|
15,651,605
|
|
14,854,420
|
|
14,530,835
|
|
|||||
Borrowings
|
4,017,948
|
|
4,040,799
|
|
4,335,193
|
|
3,612,416
|
|
3,237,886
|
|
|||||
Series E preferred stock
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
|
|||||
Total shareholders' equity
|
2,527,012
|
|
2,413,960
|
|
2,322,815
|
|
2,209,348
|
|
2,093,783
|
|
|||||
STATEMENTS OF INCOME
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
821,913
|
|
$
|
760,040
|
|
$
|
718,941
|
|
$
|
687,640
|
|
$
|
693,502
|
|
Interest expense
|
103,400
|
|
95,415
|
|
90,500
|
|
90,912
|
|
114,594
|
|
|||||
Net interest income
|
718,513
|
|
664,625
|
|
628,441
|
|
596,728
|
|
578,908
|
|
|||||
Provision for loan and lease losses
|
56,350
|
|
49,300
|
|
37,250
|
|
33,500
|
|
21,500
|
|
|||||
Non-interest income (less securities amounts)
|
264,213
|
|
237,278
|
|
197,754
|
|
197,615
|
|
189,411
|
|
|||||
Gain on sale of investment securities, net
|
414
|
|
609
|
|
5,499
|
|
712
|
|
3,347
|
|
|||||
Impairment loss on securities recognized in earnings
|
(149
|
)
|
(110
|
)
|
(1,145
|
)
|
(7,277
|
)
|
—
|
|
|||||
Non-interest expense
|
623,191
|
|
555,341
|
|
501,600
|
|
497,709
|
|
501,294
|
|
|||||
Income before income tax expense
|
303,450
|
|
297,761
|
|
291,699
|
|
256,569
|
|
248,872
|
|
|||||
Income tax expense
|
96,323
|
|
93,032
|
|
91,973
|
|
77,113
|
|
75,133
|
|
|||||
Net income
|
$
|
207,127
|
|
$
|
204,729
|
|
$
|
199,726
|
|
$
|
179,456
|
|
$
|
173,739
|
|
Earnings applicable to common shareholders
|
$
|
198,423
|
|
$
|
195,361
|
|
$
|
188,496
|
|
$
|
168,036
|
|
$
|
170,531
|
|
Per Share Data
|
|
|
|
|
|
||||||||||
Basic earnings per common share
|
$
|
2.17
|
|
$
|
2.15
|
|
$
|
2.10
|
|
$
|
1.90
|
|
$
|
1.96
|
|
Diluted earnings per common share
|
2.16
|
|
2.13
|
|
2.08
|
|
1.86
|
|
1.86
|
|
|||||
Dividends and dividend equivalents declared per common share
|
0.98
|
|
0.89
|
|
0.75
|
|
0.55
|
|
0.35
|
|
|||||
Dividends declared per Series A preferred stock share
|
—
|
|
21.25
|
|
85.00
|
|
85.00
|
|
85.00
|
|
|||||
Dividends declared per Series E preferred stock share
|
1,600.00
|
|
1,600.00
|
|
1,600.00
|
|
1,648.89
|
|
—
|
|
|||||
Book value per common share
|
26.17
|
|
24.99
|
|
23.99
|
|
22.77
|
|
22.76
|
|
|||||
Tangible book value per common share
(non-GAAP)
|
19.94
|
|
18.69
|
|
18.10
|
|
16.85
|
|
16.43
|
|
|||||
Key Performance Ratios
|
|
|
|
|
|
||||||||||
Tangible common equity ratio
(non-GAAP)
|
7.19
|
%
|
7.12
|
%
|
7.46
|
%
|
7.50
|
%
|
7.17
|
%
|
|||||
Return on average assets
|
0.82
|
|
0.87
|
|
0.93
|
|
0.89
|
|
0.90
|
|
|||||
Return on average common shareholders’ equity
|
8.44
|
|
8.70
|
|
8.85
|
|
8.44
|
|
8.98
|
|
|||||
Return on average tangible common shareholders' equity
(non-GAAP)
|
11.36
|
|
11.96
|
|
11.90
|
|
11.77
|
|
12.80
|
|
|||||
Net interest margin
|
3.12
|
|
3.08
|
|
3.21
|
|
3.26
|
|
3.32
|
|
|||||
Efficiency ratio
(non-GAAP)
|
62.01
|
|
59.93
|
|
59.18
|
|
60.32
|
|
62.71
|
|
|||||
Asset Quality Ratios
|
|
|
|
|
|
||||||||||
Non-performing loans and leases as a percentage of loans and leases
|
0.79
|
%
|
0.89
|
%
|
0.93
|
%
|
1.28
|
%
|
1.61
|
%
|
|||||
Non-performing assets as a percentage of loans and leases plus OREO
|
0.81
|
|
0.92
|
|
0.98
|
|
1.34
|
|
1.64
|
|
|||||
Non-performing assets as a percentage of total assets
|
0.53
|
|
0.59
|
|
0.61
|
|
0.82
|
|
0.98
|
|
|||||
ALLL as a percentage of non-performing loans and leases
|
144.98
|
|
125.05
|
|
122.62
|
|
94.10
|
|
91.25
|
|
|||||
ALLL as a percentage of loans and leases
|
1.14
|
|
1.12
|
|
1.15
|
|
1.20
|
|
1.47
|
|
|||||
Net charge-offs as a percentage of average loans and leases
|
0.23
|
|
0.23
|
|
0.23
|
|
0.47
|
|
0.68
|
|
|||||
Ratio of ALLL to net charge-offs
|
5.25 x
|
5.21 x
|
5.21 x
|
2.63 x
|
2.28 x
|
|
At December 31,
|
||||||||||||||
(Dollars and shares in thousands, except per share data)
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||
Tangible book value per common share (non-GAAP):
|
|
|
|
|
|
||||||||||
Shareholders' equity (GAAP)
|
$
|
2,527,012
|
|
$
|
2,413,960
|
|
$
|
2,322,815
|
|
$
|
2,209,348
|
|
$
|
2,093,783
|
|
Less: Preferred equity (GAAP)
|
122,710
|
|
122,710
|
|
151,649
|
|
151,649
|
|
151,649
|
|
|||||
Goodwill and other intangible assets (GAAP)
|
572,047
|
|
577,699
|
|
532,553
|
|
535,238
|
|
540,157
|
|
|||||
Tangible common equity (non-GAAP)
|
$
|
1,832,255
|
|
$
|
1,713,551
|
|
$
|
1,638,613
|
|
$
|
1,522,461
|
|
$
|
1,401,977
|
|
Common shares outstanding
|
91,868
|
|
91,677
|
|
90,512
|
|
90,369
|
|
85,341
|
|
|||||
Tangible book value per common share (non-GAAP)
|
$
|
19.94
|
|
$
|
18.69
|
|
$
|
18.10
|
|
$
|
16.85
|
|
$
|
16.43
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity ratio (non-GAAP):
|
|
|
|
|
|
||||||||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,832,255
|
|
$
|
1,713,551
|
|
$
|
1,638,613
|
|
$
|
1,522,461
|
|
$
|
1,401,977
|
|
Total assets (GAAP)
|
$
|
26,072,529
|
|
$
|
24,641,118
|
|
$
|
22,497,175
|
|
$
|
20,843,577
|
|
$
|
20,104,149
|
|
Less: Goodwill and other intangible assets (GAAP)
|
572,047
|
|
577,699
|
|
532,553
|
|
535,238
|
|
540,157
|
|
|||||
Tangible assets (non-GAAP)
|
$
|
25,500,482
|
|
$
|
24,063,419
|
|
$
|
21,964,622
|
|
$
|
20,308,339
|
|
$
|
19,563,992
|
|
Tangible common equity ratio (non-GAAP)
|
7.19
|
%
|
7.12
|
%
|
7.46
|
%
|
7.50
|
%
|
7.17
|
%
|
|||||
|
|
|
|
|
|
||||||||||
|
For the years ended December 31,
|
||||||||||||||
(Dollars in thousands)
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||
Return on average tangible common shareholders' equity (non-GAAP):
|
|
|
|
|
|
||||||||||
Net Income (GAAP)
|
$
|
207,127
|
|
$
|
204,729
|
|
$
|
199,726
|
|
$
|
179,456
|
|
$
|
173,739
|
|
Less: Preferred stock dividends (GAAP)
|
8,096
|
|
8,711
|
|
10,556
|
|
10,803
|
|
2,460
|
|
|||||
Add: Intangible assets amortization, tax-affected at 35% (GAAP)
|
3,674
|
|
4,121
|
|
1,745
|
|
3,197
|
|
3,523
|
|
|||||
Income adjusted for preferred stock dividends and amortization of intangibles (non-GAAP)
|
$
|
202,705
|
|
$
|
200,139
|
|
$
|
190,915
|
|
$
|
171,850
|
|
$
|
174,802
|
|
Average shareholders' equity (non-GAAP)
|
$
|
2,481,417
|
|
$
|
2,387,286
|
|
$
|
2,289,699
|
|
$
|
2,149,873
|
|
$
|
1,946,580
|
|
Less: Average preferred stock (non-GAAP)
|
122,710
|
|
134,682
|
|
151,649
|
|
151,649
|
|
38,335
|
|
|||||
Average goodwill and other intangible assets (non-GAAP)
|
574,785
|
|
579,366
|
|
533,549
|
|
537,650
|
|
542,782
|
|
|||||
Average tangible common shareholders' equity (non-GAAP)
|
$
|
1,783,922
|
|
$
|
1,673,238
|
|
$
|
1,604,501
|
|
$
|
1,460,574
|
|
$
|
1,365,463
|
|
Return on average tangible common shareholders' equity (non-GAAP)
|
11.36
|
%
|
11.96
|
%
|
11.90
|
%
|
11.77
|
%
|
12.80
|
%
|
|||||
|
|
|
|
|
|
||||||||||
Efficiency ratio (non-GAAP):
|
|
|
|
|
|
||||||||||
Non-interest expense (GAAP)
|
$
|
623,191
|
|
$
|
555,341
|
|
$
|
501,600
|
|
$
|
497,709
|
|
$
|
501,294
|
|
Less: Foreclosed property activity (GAAP)
|
(326
|
)
|
517
|
|
(74
|
)
|
43
|
|
(1,098
|
)
|
|||||
Intangible assets amortization (GAAP)
|
5,652
|
|
6,340
|
|
2,685
|
|
4,919
|
|
5,420
|
|
|||||
Other expense (non-GAAP)
|
3,513
|
|
975
|
|
3,029
|
|
5,649
|
|
5,888
|
|
|||||
Non-interest expense (non-GAAP)
|
$
|
614,352
|
|
$
|
547,509
|
|
$
|
495,960
|
|
$
|
487,098
|
|
$
|
491,084
|
|
Net interest income (GAAP)
|
$
|
718,513
|
|
$
|
664,625
|
|
$
|
628,441
|
|
$
|
596,728
|
|
$
|
578,908
|
|
Add: Tax-equivalent adjustment (non-GAAP)
|
13,637
|
|
10,617
|
|
11,124
|
|
13,221
|
|
14,751
|
|
|||||
Non-interest income (GAAP)
|
264,478
|
|
237,777
|
|
202,108
|
|
191,050
|
|
192,758
|
|
|||||
Less: Gain on sale of investment securities, net (GAAP)
|
414
|
|
609
|
|
5,499
|
|
712
|
|
3,347
|
|
|||||
Other (non-GAAP)
|
(1,780
|
)
|
(1,111
|
)
|
(1,889
|
)
|
(7,277
|
)
|
—
|
|
|||||
One-time gain on the sale of an asset (GAAP)
|
7,331
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Income (non-GAAP)
|
$
|
990,663
|
|
$
|
913,521
|
|
$
|
838,063
|
|
$
|
807,564
|
|
$
|
783,070
|
|
Efficiency ratio (non-GAAP)
|
62.01
|
%
|
59.93
|
%
|
59.18
|
%
|
60.32
|
%
|
62.71
|
%
|
|
Years ended December 31,
|
|||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Yield
|
|
Average
Balance |
Interest
|
Yield
|
|
Average
Balance |
Interest
|
Yield
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans and leases
|
$
|
16,266,101
|
|
$
|
624,300
|
|
3.84
|
%
|
|
$
|
14,746,168
|
|
$
|
554,632
|
|
3.76
|
%
|
|
$
|
13,275,340
|
|
$
|
513,705
|
|
3.87
|
%
|
Securities
(based upon historical amortized cost)
|
6,910,649
|
|
203,467
|
|
2.95
|
|
|
6,846,297
|
|
207,675
|
|
3.04
|
|
|
6,446,799
|
|
210,721
|
|
3.28
|
|
||||||
FHLB and FRB stock
|
188,854
|
|
6,039
|
|
3.20
|
|
|
188,631
|
|
6,479
|
|
3.43
|
|
|
168,036
|
|
4,719
|
|
2.81
|
|
||||||
Interest-bearing deposits
|
57,747
|
|
295
|
|
0.51
|
|
|
107,569
|
|
281
|
|
0.26
|
|
|
24,376
|
|
63
|
|
0.26
|
|
||||||
Loans held for sale
|
44,560
|
|
1,449
|
|
3.25
|
|
|
41,101
|
|
1,590
|
|
3.87
|
|
|
22,642
|
|
857
|
|
3.78
|
|
||||||
Total interest-earning assets
|
23,467,911
|
|
$
|
835,550
|
|
3.56
|
%
|
|
21,929,766
|
|
$
|
770,657
|
|
3.52
|
%
|
|
19,937,193
|
|
$
|
730,065
|
|
3.67
|
%
|
|||
Non-interest-earning assets
|
1,753,316
|
|
|
|
|
1,625,196
|
|
|
|
|
1,501,617
|
|
|
|
||||||||||||
Total assets
|
$
|
25,221,227
|
|
|
|
|
$
|
23,554,962
|
|
|
|
|
$
|
21,438,810
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
$
|
3,853,700
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,564,751
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,216,777
|
|
$
|
—
|
|
—
|
%
|
Savings, checking, & money market deposits
|
13,072,577
|
|
27,331
|
|
0.21
|
|
|
11,846,049
|
|
21,472
|
|
0.18
|
|
|
9,863,703
|
|
17,800
|
|
0.18
|
|
||||||
Time deposits
|
2,027,029
|
|
22,527
|
|
1.11
|
|
|
2,138,778
|
|
24,559
|
|
1.15
|
|
|
2,280,668
|
|
26,362
|
|
1.16
|
|
||||||
Total deposits
|
18,953,306
|
|
49,858
|
|
0.26
|
|
|
17,549,578
|
|
46,031
|
|
0.26
|
|
|
15,361,148
|
|
44,162
|
|
0.29
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities sold under agreements to repurchase and other borrowings
|
947,858
|
|
14,528
|
|
1.53
|
|
|
1,144,963
|
|
16,861
|
|
1.47
|
|
|
1,353,308
|
|
19,388
|
|
1.43
|
|
||||||
FHLB advances
|
2,413,309
|
|
29,033
|
|
1.20
|
|
|
2,084,496
|
|
22,858
|
|
1.10
|
|
|
2,038,749
|
|
16,909
|
|
0.83
|
|
||||||
Long-term debt
|
225,607
|
|
9,981
|
|
4.42
|
|
|
226,292
|
|
9,665
|
|
4.27
|
|
|
252,368
|
|
10,041
|
|
3.98
|
|
||||||
Total borrowings
|
3,586,774
|
|
53,542
|
|
1.49
|
|
|
3,455,751
|
|
49,384
|
|
1.43
|
|
|
3,644,425
|
|
46,338
|
|
1.27
|
|
||||||
Total interest-bearing liabilities
|
22,540,080
|
|
$
|
103,400
|
|
0.46
|
%
|
|
21,005,329
|
|
$
|
95,415
|
|
0.45
|
%
|
|
19,005,573
|
|
$
|
90,500
|
|
0.48
|
%
|
|||
Non-interest-bearing liabilities
|
199,730
|
|
|
|
|
162,347
|
|
|
|
|
143,538
|
|
|
|
||||||||||||
Total liabilities
|
22,739,810
|
|
|
|
|
21,167,676
|
|
|
|
|
19,149,111
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock
|
122,710
|
|
|
|
|
134,682
|
|
|
|
|
151,649
|
|
|
|
||||||||||||
Common shareholders' equity
|
2,358,707
|
|
|
|
|
2,252,604
|
|
|
|
|
2,138,050
|
|
|
|
||||||||||||
Webster Financial Corporation shareholders' equity
|
2,481,417
|
|
|
|
|
2,387,286
|
|
|
|
|
2,289,699
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
25,221,227
|
|
|
|
|
$
|
23,554,962
|
|
|
|
|
$
|
21,438,810
|
|
|
|
|||||||||
Tax-equivalent net interest income
|
|
732,150
|
|
|
|
|
675,242
|
|
|
|
|
639,565
|
|
|
||||||||||||
Less: Tax-equivalent adjustments
|
|
(13,637
|
)
|
|
|
|
(10,617
|
)
|
|
|
|
(11,124
|
)
|
|
||||||||||||
Net interest income
|
|
$
|
718,513
|
|
|
|
|
$
|
664,625
|
|
|
|
|
$
|
628,441
|
|
|
|||||||||
Net interest margin
|
|
|
3.12
|
%
|
|
|
|
3.08
|
%
|
|
|
|
3.21
|
%
|
•
|
the size and 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.
|
•
|
interest income
increased
$61.9 million
; and
|
•
|
non-interest income
increased
$26.7 million
.
|
•
|
non-interest expense
increased
$67.9 million
; and
|
•
|
provision for loan and lease losses
increased
$7.1 million
.
|
|
Years ended December 31,
|
||||||||
|
2016 vs. 2015
Increase (decrease) due to |
||||||||
(In thousands)
|
Rate
(1)
|
Volume
|
Total
|
||||||
Change in interest on interest-earning assets:
|
|
|
|
||||||
Loans and leases
|
$
|
5,627
|
|
$
|
64,041
|
|
$
|
69,668
|
|
Loans held for sale
|
(77
|
)
|
(65
|
)
|
(142
|
)
|
|||
Investments
(2)
|
(6,297
|
)
|
1,664
|
|
(4,633
|
)
|
|||
Total interest income
|
$
|
(747
|
)
|
$
|
65,640
|
|
$
|
64,893
|
|
Change in interest on interest-bearing liabilities:
|
|
|
|
||||||
Deposits
|
$
|
2,554
|
|
$
|
1,273
|
|
$
|
3,827
|
|
Borrowings
|
2,663
|
|
1,495
|
|
4,158
|
|
|||
Total interest expense
|
$
|
5,217
|
|
$
|
2,768
|
|
$
|
7,985
|
|
Change in tax-equivalent net interest income
|
$
|
(5,964
|
)
|
$
|
62,872
|
|
$
|
56,908
|
|
(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.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Interest rate swaps on repurchase agreements
|
$
|
361
|
|
|
$
|
1,442
|
|
Interest rate swaps on FHLB advances
|
8,315
|
|
|
8,272
|
|
||
Interest rate swaps on senior fixed-rate notes
|
306
|
|
|
306
|
|
||
Interest rate swaps on brokered CDs and deposits
|
780
|
|
|
632
|
|
||
Net increase to interest expense on borrowings
|
$
|
9,762
|
|
|
$
|
10,652
|
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|||||||
Deposit service fees
|
$
|
140,685
|
|
$
|
135,057
|
|
|
$
|
5,628
|
|
4.2
|
%
|
Loan and lease related fees
|
30,113
|
|
25,594
|
|
|
4,519
|
|
17.7
|
|
|||
Wealth and investment services
|
28,962
|
|
32,486
|
|
|
(3,524
|
)
|
(10.8
|
)
|
|||
Mortgage banking activities
|
11,103
|
|
7,795
|
|
|
3,308
|
|
42.4
|
|
|||
Increase in cash surrender value of life insurance policies
|
14,759
|
|
13,020
|
|
|
1,739
|
|
13.4
|
|
|||
Gain on sale of investment securities, net
|
414
|
|
609
|
|
|
(195
|
)
|
(32.0
|
)
|
|||
Impairment loss on securities recognized in earnings
|
(149
|
)
|
(110
|
)
|
|
(39
|
)
|
(35.5
|
)
|
|||
Other income
|
38,591
|
|
23,326
|
|
|
15,265
|
|
65.4
|
|
|||
Total non-interest income
|
$
|
264,478
|
|
$
|
237,777
|
|
|
$
|
26,701
|
|
11.2
|
%
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|||||||
Compensation and benefits
|
$
|
331,726
|
|
$
|
297,517
|
|
|
$
|
34,209
|
|
11.5
|
%
|
Occupancy
|
60,294
|
|
48,836
|
|
|
11,458
|
|
23.5
|
|
|||
Technology and equipment
|
79,882
|
|
80,813
|
|
|
(931
|
)
|
(1.2
|
)
|
|||
Intangible assets amortization
|
5,652
|
|
6,340
|
|
|
(688
|
)
|
(10.9
|
)
|
|||
Marketing
|
19,703
|
|
16,053
|
|
|
3,650
|
|
22.7
|
|
|||
Professional and outside services
|
14,801
|
|
11,156
|
|
|
3,645
|
|
32.7
|
|
|||
Deposit insurance
|
26,006
|
|
24,042
|
|
|
1,964
|
|
8.2
|
|
|||
Other expense
|
85,127
|
|
70,584
|
|
|
14,543
|
|
20.6
|
|
|||
Total non-interest expense
|
$
|
623,191
|
|
$
|
555,341
|
|
|
$
|
67,850
|
|
12.2
|
%
|
•
|
interest income increased $41.1 million; and
|
•
|
deposit service fees increased $31.6 million.
|
•
|
non-interest expense increased $53.7 million; and
|
•
|
provision for loan and lease losses increased $12.1 million.
|
|
Years ended December 31,
|
||||||||
|
2015 vs. 2014
Increase (decrease) due to |
||||||||
(In thousands)
|
Rate
(1)
|
Volume
|
Total
|
||||||
Change in interest on interest-earning assets:
|
|
|
|
||||||
Loans and leases
|
$
|
(19,489
|
)
|
$
|
60,416
|
|
$
|
40,927
|
|
Loans held for sale
|
151
|
|
583
|
|
734
|
|
|||
Investments
(2)
|
(16,403
|
)
|
15,334
|
|
(1,069
|
)
|
|||
Total interest income
|
$
|
(35,741
|
)
|
$
|
76,333
|
|
$
|
40,592
|
|
Change in interest on interest-bearing liabilities:
|
|
|
|
||||||
Deposits
|
$
|
(2,691
|
)
|
$
|
4,560
|
|
$
|
1,869
|
|
Borrowings
|
6,263
|
|
(3,217
|
)
|
3,046
|
|
|||
Total interest expense
|
$
|
3,572
|
|
$
|
1,343
|
|
$
|
4,915
|
|
Change in tax-equivalent net interest income
|
$
|
(39,313
|
)
|
$
|
74,990
|
|
$
|
35,677
|
|
(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.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2015
|
|
2014
|
||||
Interest rate swaps on repurchase agreements
|
$
|
1,442
|
|
|
$
|
2,224
|
|
Interest rate swaps on FHLB advances
|
8,272
|
|
|
6,043
|
|
||
Interest rate swaps on senior fixed-rate notes
|
306
|
|
|
267
|
|
||
Interest rate swaps on brokered CDs and deposits
|
632
|
|
|
151
|
|
||
Net increase to interest expense on borrowings
|
$
|
10,652
|
|
|
$
|
8,685
|
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2015
|
2014
|
|
Amount
|
Percent
|
|||||||
Deposit service fees
|
$
|
135,057
|
|
$
|
103,431
|
|
|
$
|
31,626
|
|
30.6
|
%
|
Loan and lease related fees
|
25,594
|
|
23,212
|
|
|
2,382
|
|
10.3
|
|
|||
Wealth and investment services
|
32,486
|
|
34,946
|
|
|
(2,460
|
)
|
(7.0
|
)
|
|||
Mortgage banking activities
|
7,795
|
|
4,070
|
|
|
3,725
|
|
91.5
|
|
|||
Increase in cash surrender value of life insurance policies
|
13,020
|
|
13,178
|
|
|
(158
|
)
|
(1.2
|
)
|
|||
Gain on sale of investment securities, net
|
609
|
|
5,499
|
|
|
(4,890
|
)
|
(88.9
|
)
|
|||
Impairment loss on securities recognized in earnings
|
(110
|
)
|
(1,145
|
)
|
|
1,035
|
|
90.4
|
|
|||
Other income
|
23,326
|
|
18,917
|
|
|
4,409
|
|
23.3
|
|
|||
Total non-interest income
|
$
|
237,777
|
|
$
|
202,108
|
|
|
$
|
35,669
|
|
17.6
|
%
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2015
|
2014
|
|
Amount
|
Percent
|
|||||||
Compensation and benefits
|
$
|
297,517
|
|
$
|
270,151
|
|
|
$
|
27,366
|
|
10.1
|
%
|
Occupancy
|
48,836
|
|
47,325
|
|
|
1,511
|
|
3.2
|
|
|||
Technology and equipment
|
80,813
|
|
61,993
|
|
|
18,820
|
|
30.4
|
|
|||
Intangible assets amortization
|
6,340
|
|
2,685
|
|
|
3,655
|
|
136.1
|
|
|||
Marketing
|
16,053
|
|
15,379
|
|
|
674
|
|
4.4
|
|
|||
Professional and outside services
|
11,156
|
|
8,296
|
|
|
2,860
|
|
34.5
|
|
|||
Deposit insurance
|
24,042
|
|
22,670
|
|
|
1,372
|
|
6.1
|
|
|||
Other expense
|
70,584
|
|
73,101
|
|
|
(2,517
|
)
|
(3.4
|
)
|
|||
Total non-interest expense
|
$
|
555,341
|
|
$
|
501,600
|
|
|
$
|
53,741
|
|
10.7
|
%
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net income (loss):
|
|
|
|
|
|
||||||
Commercial Banking
|
$
|
115,306
|
|
|
$
|
105,714
|
|
|
$
|
109,548
|
|
Community Banking
|
60,796
|
|
|
77,708
|
|
|
73,720
|
|
|||
HSA Bank
|
38,230
|
|
|
37,443
|
|
|
18,164
|
|
|||
Private Banking
|
60
|
|
|
(511
|
)
|
|
(504
|
)
|
|||
Corporate and Reconciling
|
(7,265
|
)
|
|
(15,625
|
)
|
|
(1,202
|
)
|
|||
Consolidated Total
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
|
At December 31, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Total
|
||||||||||||
Total assets
|
$
|
8,518,830
|
|
$
|
8,655,789
|
|
$
|
83,987
|
|
$
|
550,615
|
|
$
|
8,263,308
|
|
$
|
26,072,529
|
|
Loans and leases
|
8,519,001
|
|
7,894,582
|
|
125
|
|
547,904
|
|
64,976
|
|
17,026,588
|
|
||||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
—
|
|
538,373
|
|
||||||
Deposits
|
3,365,516
|
|
10,970,977
|
|
4,362,503
|
|
227,015
|
|
377,846
|
|
19,303,857
|
|
||||||
Not included in above amounts:
|
|
|
|
|
|
|
||||||||||||
Assets under administration/management
|
—
|
|
2,980,113
|
|
878,190
|
|
1,781,840
|
|
—
|
|
5,640,143
|
|
||||||
|
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
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net interest income
|
$
|
276,246
|
|
|
$
|
255,845
|
|
|
$
|
238,186
|
|
Provision for loan and lease losses
|
36,594
|
|
|
30,160
|
|
|
13,088
|
|
|||
Net interest income after provision
|
239,652
|
|
|
225,685
|
|
|
225,098
|
|
|||
Non-interest income
|
47,435
|
|
|
37,784
|
|
|
37,270
|
|
|||
Non-interest expense
|
118,159
|
|
|
109,718
|
|
|
102,374
|
|
|||
Income before income taxes
|
168,928
|
|
|
153,751
|
|
|
159,994
|
|
|||
Income tax expense
|
53,622
|
|
|
48,037
|
|
|
50,446
|
|
|||
Net income
|
$
|
115,306
|
|
|
$
|
105,714
|
|
|
$
|
109,548
|
|
|
At December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Total assets
|
$
|
8,518,830
|
|
|
$
|
7,505,513
|
|
|
$
|
6,550,868
|
|
Loans and leases
|
8,519,001
|
|
|
7,509,453
|
|
|
6,559,020
|
|
|||
Deposits
|
3,365,516
|
|
|
3,073,276
|
|
|
3,203,344
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net interest income
|
$
|
365,151
|
|
|
$
|
354,709
|
|
|
$
|
354,781
|
|
Provision for loan and lease losses
|
21,690
|
|
|
19,603
|
|
|
26,345
|
|
|||
Net interest income after provision
|
343,461
|
|
|
335,106
|
|
|
328,436
|
|
|||
Non-interest income
|
110,157
|
|
|
108,604
|
|
|
103,543
|
|
|||
Non-interest expense
|
364,549
|
|
|
330,692
|
|
|
324,312
|
|
|||
Income before income taxes
|
89,069
|
|
|
113,018
|
|
|
107,667
|
|
|||
Income tax expense
|
28,273
|
|
|
35,310
|
|
|
33,947
|
|
|||
Net income
|
$
|
60,796
|
|
|
$
|
77,708
|
|
|
$
|
73,720
|
|
|
At December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Total assets
|
$
|
8,655,789
|
|
|
$
|
8,441,950
|
|
|
$
|
8,123,928
|
|
Loans
|
7,894,582
|
|
|
7,592,553
|
|
|
6,853,115
|
|
|||
Deposits
|
10,970,977
|
|
|
10,449,231
|
|
|
10,103,698
|
|
|||
Not included in above amounts:
|
|
|
|
|
|
||||||
Assets under administration
|
2,980,113
|
|
|
2,762,759
|
|
|
2,754,775
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net interest income
|
$
|
81,451
|
|
|
$
|
73,433
|
|
|
$
|
38,822
|
|
Provision for loan and lease losses
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net interest income after provision
|
81,451
|
|
|
73,433
|
|
|
38,822
|
|
|||
Non-interest income
|
71,710
|
|
|
62,475
|
|
|
28,553
|
|
|||
Non-interest expense
|
97,152
|
|
|
81,449
|
|
|
40,900
|
|
|||
Income before income taxes
|
56,009
|
|
|
54,459
|
|
|
26,475
|
|
|||
Income tax expense
|
17,779
|
|
|
17,016
|
|
|
8,311
|
|
|||
Net income
|
$
|
38,230
|
|
|
$
|
37,443
|
|
|
$
|
18,164
|
|
|
At December 31, 2016
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Total assets
|
$
|
83,987
|
|
|
$
|
95,815
|
|
|
$
|
26,680
|
|
Deposits
|
4,362,503
|
|
|
3,802,313
|
|
|
1,824,799
|
|
|||
Not included in above amounts:
|
|
|
|
|
|
||||||
Assets under administration
|
878,190
|
|
|
692,306
|
|
|
746,983
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net interest income
|
$
|
11,350
|
|
|
$
|
10,240
|
|
|
$
|
8,877
|
|
Provision for loan and lease losses
|
861
|
|
|
386
|
|
|
765
|
|
|||
Net interest income after provision
|
10,489
|
|
|
9,854
|
|
|
8,112
|
|
|||
Non-interest income
|
9,818
|
|
|
9,183
|
|
|
9,843
|
|
|||
Non-interest expense
|
20,220
|
|
|
19,781
|
|
|
18,691
|
|
|||
Income (loss) before income taxes
|
87
|
|
|
(744
|
)
|
|
(736
|
)
|
|||
Income tax expense (benefit)
|
27
|
|
|
(233
|
)
|
|
(232
|
)
|
|||
Net income (loss)
|
$
|
60
|
|
|
$
|
(511
|
)
|
|
$
|
(504
|
)
|
|
At December 31, 2016
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Total assets
|
$
|
550,615
|
|
|
$
|
493,571
|
|
|
$
|
398,893
|
|
Loans
|
547,904
|
|
|
490,112
|
|
|
395,667
|
|
|||
Deposits
|
227,015
|
|
|
228,497
|
|
|
211,298
|
|
|||
Not included in above amounts:
|
|
|
|
|
|
||||||
Assets under administration/management
|
1,781,840
|
|
|
1,726,385
|
|
|
1,676,961
|
|
|
At December 31,
|
||||||||||||||||||||||||
|
2016
|
|
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
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
|
$
|
924
|
|
$
|
—
|
|
$
|
—
|
|
$
|
924
|
|
Agency CMO
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
|
546,168
|
|
5,532
|
|
(2,946
|
)
|
548,754
|
|
||||||||
Agency MBS
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
|
1,075,941
|
|
6,459
|
|
(17,291
|
)
|
1,065,109
|
|
||||||||
Agency CMBS
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
|
215,670
|
|
639
|
|
(959
|
)
|
215,350
|
|
||||||||
CMBS
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
|
574,686
|
|
7,485
|
|
(2,905
|
)
|
579,266
|
|
||||||||
CLO
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
|
431,837
|
|
592
|
|
(3,270
|
)
|
429,159
|
|
||||||||
Single issuer trust preferred securities
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
|
42,168
|
|
—
|
|
(4,998
|
)
|
37,170
|
|
||||||||
Corporate debt securities
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
|
104,031
|
|
2,290
|
|
—
|
|
106,321
|
|
||||||||
Equities-financial institutions
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,499
|
|
—
|
|
(921
|
)
|
2,578
|
|
||||||||
Securities available-for-sale
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
|
$
|
2,994,924
|
|
$
|
22,997
|
|
$
|
(33,290
|
)
|
$
|
2,984,631
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
|
$
|
407,494
|
|
$
|
3,717
|
|
$
|
(2,058
|
)
|
$
|
409,153
|
|
Agency MBS
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
|
2,030,176
|
|
38,813
|
|
(19,908
|
)
|
2,049,081
|
|
||||||||
Agency CMBS
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
|
686,086
|
|
4,253
|
|
(325
|
)
|
690,014
|
|
||||||||
Municipal bonds and notes
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
|
435,905
|
|
12,019
|
|
(417
|
)
|
447,507
|
|
||||||||
CMBS
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
|
360,018
|
|
5,046
|
|
(2,704
|
)
|
362,360
|
|
||||||||
Private Label MBS
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
|
3,373
|
|
46
|
|
—
|
|
3,419
|
|
||||||||
Securities held-to-maturity
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
$
|
3,923,052
|
|
$
|
63,894
|
|
$
|
(25,412
|
)
|
$
|
3,961,534
|
|
|
At December 31, 2016
|
||||||||||||||||||||||||
|
Within 1 Year
|
1 - 5 Years
|
5 - 10 Years
|
After 10 Years
|
Total
|
||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
|||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury Bills
|
$
|
734
|
|
0.45
|
%
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
734
|
|
0.45
|
%
|
Agency CMO
|
—
|
|
—
|
|
—
|
|
—
|
|
7,473
|
|
2.68
|
|
412,233
|
|
2.63
|
|
419,706
|
|
2.63
|
|
|||||
Agency MBS
|
—
|
|
—
|
|
—
|
|
—
|
|
11,307
|
|
2.15
|
|
943,042
|
|
2.36
|
|
954,349
|
|
2.35
|
|
|||||
Agency CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
573,272
|
|
2.47
|
|
573,272
|
|
2.47
|
|
|||||
CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
135,632
|
|
2.68
|
|
341,733
|
|
3.45
|
|
477,365
|
|
3.23
|
|
|||||
CLO
|
—
|
|
—
|
|
—
|
|
—
|
|
377,941
|
|
3.06
|
|
49,449
|
|
3.12
|
|
427,390
|
|
3.07
|
|
|||||
Single issuer trust preferred securities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,633
|
|
2.42
|
|
28,633
|
|
2.42
|
|
|||||
Corporate debt securities
|
75,649
|
|
3.21
|
|
22,190
|
|
2.89
|
|
—
|
|
—
|
|
11,803
|
|
2.60
|
|
109,642
|
|
3.08
|
|
|||||
Securities available-for-sale
|
$
|
76,383
|
|
3.19
|
%
|
$
|
22,190
|
|
2.89
|
%
|
$
|
532,353
|
|
2.94
|
%
|
$
|
2,360,165
|
|
2.60
|
%
|
$
|
2,991,091
|
|
2.68
|
%
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency CMO
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
6,293
|
|
3.08
|
%
|
$
|
333,162
|
|
2.66
|
%
|
$
|
339,455
|
|
2.66
|
%
|
Agency MBS
|
—
|
|
—
|
|
9,855
|
|
4.12
|
|
27,672
|
|
2.98
|
|
2,279,922
|
|
2.46
|
|
2,317,449
|
|
2.48
|
|
|||||
Agency CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
547,726
|
|
2.76
|
|
547,726
|
|
2.76
|
|
|||||
Municipal bonds and notes
|
1,595
|
|
6.02
|
|
5,781
|
|
6.82
|
|
12,869
|
|
6.19
|
|
635,568
|
|
5.20
|
|
655,813
|
|
5.23
|
|
|||||
CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
298,538
|
|
3.19
|
|
298,538
|
|
3.19
|
|
|||||
Private Label MBS
|
—
|
|
—
|
|
1,677
|
|
4.61
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,677
|
|
4.61
|
|
|||||
Securities held-to-maturity
|
$
|
1,595
|
|
6.02
|
%
|
$
|
17,313
|
|
5.07
|
%
|
$
|
46,834
|
|
3.88
|
%
|
$
|
4,094,916
|
|
3.00
|
%
|
$
|
4,160,658
|
|
3.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total debt securities
|
$
|
77,978
|
|
3.24
|
%
|
$
|
39,503
|
|
3.86
|
%
|
$
|
579,187
|
|
3.02
|
%
|
$
|
6,455,081
|
|
2.85
|
%
|
$
|
7,151,749
|
|
2.87
|
%
|
|
At December 31,
|
|||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
||||||||||
Residential
|
$
|
4,232,771
|
|
24.9
|
|
$
|
4,042,960
|
|
25.8
|
|
$
|
3,498,675
|
|
25.2
|
|
$
|
3,353,967
|
|
26.5
|
|
$
|
3,285,945
|
|
27.2
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
2,330,508
|
|
13.7
|
|
2,360,244
|
|
15.1
|
|
2,367,402
|
|
17.0
|
|
2,355,257
|
|
18.5
|
|
2,448,207
|
|
20.4
|
|||||
Liquidating - home equity
|
64,975
|
|
0.4
|
|
79,171
|
|
0.5
|
|
92,056
|
|
0.7
|
|
104,902
|
|
0.8
|
|
121,875
|
|
1.0
|
|||||
Other consumer
|
274,336
|
|
1.6
|
|
248,830
|
|
1.6
|
|
75,307
|
|
0.5
|
|
60,681
|
|
0.5
|
|
43,672
|
|
0.4
|
|||||
Total consumer
|
2,669,819
|
|
15.7
|
|
2,688,245
|
|
17.2
|
|
2,534,765
|
|
18.2
|
|
2,520,840
|
|
19.8
|
|
2,613,754
|
|
21.8
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
4,151,740
|
|
24.4
|
|
3,575,042
|
|
22.8
|
|
3,098,892
|
|
22.3
|
|
2,734,025
|
|
21.5
|
|
2,409,816
|
|
20.0
|
|||||
Asset-based
|
808,836
|
|
4.8
|
|
755,709
|
|
4.8
|
|
662,615
|
|
4.8
|
|
560,666
|
|
4.4
|
|
505,425
|
|
4.2
|
|||||
Total commercial
|
4,960,576
|
|
29.1
|
|
4,330,751
|
|
27.6
|
|
3,761,507
|
|
27.1
|
|
3,294,691
|
|
25.9
|
|
2,915,241
|
|
24.2
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
4,141,025
|
|
24.3
|
|
3,696,596
|
|
23.6
|
|
3,326,906
|
|
23.9
|
|
2,856,110
|
|
22.5
|
|
2,644,229
|
|
22.0
|
|||||
Commercial construction
|
375,041
|
|
2.2
|
|
300,246
|
|
1.9
|
|
235,449
|
|
1.7
|
|
205,397
|
|
1.6
|
|
142,070
|
|
1.2
|
|||||
Total commercial real estate
|
4,516,066
|
|
26.5
|
|
3,996,842
|
|
25.5
|
|
3,562,355
|
|
25.6
|
|
3,061,507
|
|
24.1
|
|
2,786,299
|
|
23.2
|
|||||
Equipment financing
|
630,040
|
|
3.7
|
|
594,984
|
|
3.8
|
|
532,117
|
|
3.8
|
|
455,434
|
|
3.6
|
|
414,783
|
|
3.4
|
|||||
Net unamortized premiums
|
9,402
|
|
0.1
|
|
7,477
|
|
—
|
|
2,580
|
|
—
|
|
5,466
|
|
—
|
|
6,254
|
|
0.1
|
|||||
Net deferred fees
|
7,914
|
|
—
|
|
10,476
|
|
0.1
|
|
8,026
|
|
0.1
|
|
7,871
|
|
0.1
|
|
6,420
|
|
0.1
|
|||||
Total loans and leases
|
$
|
17,026,588
|
|
100.0
|
|
$
|
15,671,735
|
|
100.0
|
|
$
|
13,900,025
|
|
100.0
|
|
$
|
12,699,776
|
|
100.0
|
|
$
|
12,028,696
|
|
100.0
|
|
At December 31, 2016
|
|||||||||||
|
Contractual Maturity
|
|||||||||||
(In thousands)
|
One Year Or Less
|
More Than One To Five Years
|
More Than Five Years
|
Total
|
||||||||
Residential
|
$
|
1,539
|
|
$
|
51,359
|
|
$
|
4,201,784
|
|
$
|
4,254,682
|
|
Consumer:
|
|
|
|
|
||||||||
Home equity
|
3,392
|
|
150,547
|
|
2,255,954
|
|
2,409,893
|
|
||||
Other consumer
|
5,382
|
|
253,349
|
|
15,876
|
|
274,607
|
|
||||
Total consumer
|
8,774
|
|
403,896
|
|
2,271,830
|
|
2,684,500
|
|
||||
Commercial:
|
|
|
|
|
||||||||
Commercial non-mortgage
|
521,507
|
|
3,160,507
|
|
453,611
|
|
4,135,625
|
|
||||
Asset-based
|
112,781
|
|
692,525
|
|
—
|
|
805,306
|
|
||||
Total commercial
|
634,288
|
|
3,853,032
|
|
453,611
|
|
4,940,931
|
|
||||
Commercial real estate:
|
|
|
|
|
||||||||
Commercial real estate
|
356,040
|
|
1,732,195
|
|
2,049,049
|
|
4,137,284
|
|
||||
Commercial construction
|
169,745
|
|
132,669
|
|
71,148
|
|
373,562
|
|
||||
Total commercial real estate
|
525,785
|
|
1,864,864
|
|
2,120,197
|
|
4,510,846
|
|
||||
Equipment financing
|
16,017
|
|
463,189
|
|
156,423
|
|
635,629
|
|
||||
Total loans and leases
|
$
|
1,186,403
|
|
$
|
6,636,340
|
|
$
|
9,203,845
|
|
$
|
17,026,588
|
|
|
|
|
|
|
||||||||
|
Interest-Rate Sensitivity
|
|||||||||||
(In thousands)
|
One Year Or Less
|
More Than One To Five Years
|
More Than Five Years
|
Total
|
||||||||
Fixed rate
|
$
|
223,797
|
|
$
|
1,195,396
|
|
$
|
3,886,846
|
|
$
|
5,306,039
|
|
Variable rate
|
962,606
|
|
5,440,944
|
|
5,316,999
|
|
11,720,549
|
|
||||
Total loans and leases
|
$
|
1,186,403
|
|
$
|
6,636,340
|
|
$
|
9,203,845
|
|
$
|
17,026,588
|
|
|
At or for the years ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Non-performing loans and leases as a percentage of loans and leases
|
0.79
|
%
|
|
0.89
|
%
|
|
0.93
|
%
|
|
1.28
|
%
|
|
1.61
|
%
|
Non-performing assets as a percentage of loans and leases plus OREO
|
0.81
|
|
|
0.92
|
|
|
0.98
|
|
|
1.34
|
|
|
1.64
|
|
Non-performing assets as a percentage of total assets
|
0.53
|
|
|
0.59
|
|
|
0.61
|
|
|
0.82
|
|
|
0.98
|
|
ALLL as a percentage of non-performing loans and leases
|
144.98
|
|
|
125.05
|
|
|
122.62
|
|
|
94.10
|
|
|
91.25
|
|
ALLL as a percentage of loans and leases
|
1.14
|
|
|
1.12
|
|
|
1.15
|
|
|
1.20
|
|
|
1.47
|
|
Net charge-offs as a percentage of average loans and leases
|
0.23
|
|
|
0.23
|
|
|
0.23
|
|
|
0.47
|
|
|
0.68
|
|
Ratio of ALLL to net charge-offs
|
5.25x
|
|
|
5.21x
|
|
|
5.21x
|
|
|
2.63x
|
|
|
2.28x
|
|
|
At December 31,
|
|||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in thousands)
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
||||||||||
Residential
|
$
|
47,201
|
|
1.12
|
|
$
|
54,101
|
|
1.34
|
|
$
|
64,022
|
|
1.83
|
|
$
|
80,589
|
|
2.40
|
|
$
|
94,854
|
|
2.89
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
32,992
|
|
1.42
|
|
33,414
|
|
1.42
|
|
35,490
|
|
1.50
|
|
45,434
|
|
1.93
|
|
49,402
|
|
2.02
|
|||||
Liquidating - home equity
|
2,883
|
|
4.44
|
|
3,865
|
|
4.88
|
|
4,460
|
|
4.84
|
|
6,245
|
|
5.95
|
|
8,133
|
|
6.67
|
|||||
Other consumer
|
1,663
|
|
0.61
|
|
558
|
|
0.22
|
|
280
|
|
0.37
|
|
139
|
|
0.23
|
|
135
|
|
0.31
|
|||||
Total consumer
|
37,538
|
|
1.41
|
|
37,837
|
|
1.41
|
|
40,230
|
|
1.59
|
|
51,818
|
|
2.06
|
|
57,670
|
|
2.21
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
38,550
|
|
0.93
|
|
27,086
|
|
0.76
|
|
6,436
|
|
0.21
|
|
10,933
|
|
0.40
|
|
17,538
|
|
0.73
|
|||||
Asset-based loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
Total commercial
|
38,550
|
|
0.78
|
|
27,086
|
|
0.63
|
|
6,436
|
|
0.17
|
|
10,933
|
|
0.33
|
|
17,538
|
|
0.60
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
9,859
|
|
0.24
|
|
16,750
|
|
0.45
|
|
15,016
|
|
0.45
|
|
13,428
|
|
0.47
|
|
15,634
|
|
0.59
|
|||||
Commercial construction
|
662
|
|
0.18
|
|
3,461
|
|
1.15
|
|
3,659
|
|
1.55
|
|
4,235
|
|
2.06
|
|
5,092
|
|
3.58
|
|||||
Total commercial real estate
|
10,521
|
|
0.23
|
|
20,211
|
|
0.51
|
|
18,675
|
|
0.52
|
|
17,663
|
|
0.58
|
|
20,726
|
|
0.74
|
|||||
Equipment financing
|
225
|
|
0.04
|
|
706
|
|
0.12
|
|
518
|
|
0.10
|
|
1,141
|
|
0.25
|
|
3,325
|
|
0.80
|
|||||
Total non-performing loans and leases
(3)
|
134,035
|
|
0.79
|
|
139,941
|
|
0.89
|
|
129,881
|
|
0.94
|
|
162,144
|
|
1.28
|
|
194,113
|
|
1.62
|
|||||
Deferred costs and unamortized premiums
|
(219
|
)
|
|
|
128
|
|
|
|
267
|
|
|
|
303
|
|
|
|
351
|
|
|
|||||
Total
|
$
|
133,816
|
|
|
|
$
|
140,069
|
|
|
|
$
|
130,148
|
|
|
|
$
|
162,447
|
|
|
|
$
|
194,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing loans and leases
|
$
|
134,035
|
|
|
|
$
|
139,941
|
|
|
|
$
|
129,881
|
|
|
|
$
|
162,144
|
|
|
|
$
|
194,113
|
|
|
Foreclosed and repossessed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential and consumer
|
3,911
|
|
|
|
5,029
|
|
|
|
3,517
|
|
|
|
4,930
|
|
|
|
2,659
|
|
|
|||||
Commercial
|
—
|
|
|
|
—
|
|
|
|
2,999
|
|
|
|
3,752
|
|
|
|
723
|
|
|
|||||
Total foreclosed and repossessed assets
|
3,911
|
|
|
|
5,029
|
|
|
|
6,516
|
|
|
|
8,682
|
|
|
|
3,382
|
|
|
|||||
Total non-performing assets
|
$
|
137,946
|
|
|
|
$
|
144,970
|
|
|
|
$
|
136,397
|
|
|
|
$
|
170,826
|
|
|
|
$
|
197,495
|
|
|
(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
$75.7 million
,
$100.9 million
,
$76.9 million
,
$103.0 million
and
$115.6 million
as of December 31,
2016
,
2015
,
2014
,
2013
and
2012
, respectively.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Beginning balance
|
$
|
272,690
|
|
|
$
|
318,794
|
|
Additions
|
41,662
|
|
|
44,787
|
|
||
Paydowns/draws
|
(66,596
|
)
|
|
(76,615
|
)
|
||
Charge-offs
|
(18,588
|
)
|
|
(11,785
|
)
|
||
Transfers to OREO
|
(5,640
|
)
|
|
(2,491
|
)
|
||
Ending balance
|
$
|
223,528
|
|
|
$
|
272,690
|
|
|
|
|
|
||||
|
At December 31,
|
||||||
(
In thousands
)
|
2016
|
|
2015
|
||||
Accrual status
|
$
|
147,809
|
|
|
$
|
171,784
|
|
Non-accrual status
|
75,719
|
|
|
100,906
|
|
||
Total recorded investment of TDR
(1)
|
$
|
223,528
|
|
|
$
|
272,690
|
|
|
|
|
|
||||
Accruing TDR performing under modified terms more than one year
|
57.1
|
%
|
|
55.0
|
%
|
||
Specific reserves for TDR included in the balance of ALLL
|
$
|
14,583
|
|
|
$
|
21,405
|
|
Additional funds committed to borrowers in TDR status
|
459
|
|
|
1,133
|
|
|
At December 31,
|
|||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(In thousands)
|
Amount
|
%
(3)
|
|
Amount
|
%
(3)
|
|
Amount
|
%
(3)
|
|
Amount
|
%
(3)
|
|
Amount
|
%
(3)
|
||||||||||
Residential
|
$
|
119,391
|
|
2.81
|
|
$
|
134,448
|
|
3.31
|
|
$
|
141,982
|
|
4.05
|
|
$
|
142,413
|
|
4.24
|
|
$
|
146,479
|
|
4.45
|
Consumer
|
45,673
|
|
1.70
|
|
48,425
|
|
1.79
|
|
50,249
|
|
1.97
|
|
52,092
|
|
2.05
|
|
54,675
|
|
2.08
|
|||||
Commercial
(1)
|
58,464
|
|
0.58
|
|
89,817
|
|
1.01
|
|
126,563
|
|
1.61
|
|
146,428
|
|
2.15
|
|
201,488
|
|
3.30
|
|||||
Total recorded investment of TDR
(2)
|
$
|
223,528
|
|
1.31
|
|
$
|
272,690
|
|
1.74
|
|
$
|
318,794
|
|
2.29
|
|
$
|
340,933
|
|
2.68
|
|
$
|
402,642
|
|
3.35
|
(1)
|
Consists of commercial, commercial real estate and equipment financing loans and leases.
|
(2)
|
Excludes accrued interest receivable of
$0.7 million
,
$1.1 million
,
$1.4 million
,
$1.0 million
and
$1.5 million
at December 31,
2016
,
2015
,
2014
,
2013
and
2012
, respectively.
|
(3)
|
Represents the balance of TDR as a percentage of the outstanding balance within the comparable loan and lease category. The percentage includes the impact of deferred costs and unamortized premiums.
|
|
At December 31,
|
|||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in thousands)
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
|
Amount
(1)
|
%
(2)
|
||||||||||
Residential
|
$
|
11,202
|
|
0.26
|
|
$
|
15,032
|
|
0.37
|
|
$
|
17,216
|
|
0.49
|
|
$
|
18,285
|
|
0.55
|
|
$
|
25,182
|
|
0.77
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
13,484
|
|
0.58
|
|
12,225
|
|
0.52
|
|
14,757
|
|
0.62
|
|
18,290
|
|
0.78
|
|
24,344
|
|
0.99
|
|||||
Liquidating - home equity
|
1,094
|
|
1.68
|
|
1,036
|
|
1.31
|
|
1,658
|
|
1.80
|
|
1,806
|
|
1.72
|
|
3,588
|
|
2.94
|
|||||
Other consumer
|
3,715
|
|
1.35
|
|
2,000
|
|
0.80
|
|
1,110
|
|
1.47
|
|
636
|
|
1.05
|
|
516
|
|
1.18
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
1,949
|
|
0.05
|
|
4,052
|
|
0.11
|
|
2,099
|
|
0.07
|
|
4,100
|
|
0.15
|
|
2,769
|
|
0.11
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
8,173
|
|
0.20
|
|
2,250
|
|
0.06
|
|
2,714
|
|
0.08
|
|
4,897
|
|
0.17
|
|
14,710
|
|
0.56
|
|||||
Equipment financing
|
1,596
|
|
0.25
|
|
602
|
|
0.10
|
|
701
|
|
0.13
|
|
362
|
|
0.08
|
|
1,926
|
|
0.46
|
|||||
Loans and leases past due 30-89 days
|
41,213
|
|
0.24
|
|
37,197
|
|
0.24
|
|
40,255
|
|
0.29
|
|
48,376
|
|
0.38
|
|
73,035
|
|
0.61
|
|||||
Residential
|
—
|
|
—
|
|
2,029
|
|
0.05
|
|
2,039
|
|
0.06
|
|
781
|
|
0.02
|
|
686
|
|
0.02
|
|||||
Commercial non-mortgage
|
749
|
|
0.02
|
|
22
|
|
—
|
|
48
|
|
—
|
|
4,269
|
|
0.16
|
|
346
|
|
0.01
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
232
|
|
0.01
|
|
891
|
|
0.03
|
|||||
Loans and leases past due 90 days and accruing
|
749
|
|
—
|
|
2,051
|
|
0.01
|
|
2,087
|
|
0.02
|
|
5,282
|
|
0.04
|
|
1,923
|
|
0.02
|
|||||
Total loans and leases over 30 days past due and accruing income
|
41,962
|
|
0.25
|
|
39,248
|
|
0.25
|
|
42,342
|
|
0.30
|
|
53,658
|
|
0.42
|
|
74,958
|
|
0.62
|
|||||
Deferred costs and unamortized premiums
|
86
|
|
|
|
86
|
|
|
|
96
|
|
|
|
189
|
|
|
|
214
|
|
|
|||||
Total
|
$
|
42,048
|
|
|
|
$
|
39,334
|
|
|
|
$
|
42,438
|
|
|
|
$
|
53,847
|
|
|
|
$
|
75,172
|
|
|
(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 homogeneous pools and 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. 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 factored into 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 December 31,
|
|||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
%
(1)
|
|
Amount
|
%
(1)
|
|
Amount
|
%
(1)
|
|
Amount
|
%
(1)
|
|
Amount
|
%
(1)
|
||||||||||
Residential
|
$
|
23,226
|
|
0.55
|
|
$
|
25,876
|
|
0.64
|
|
$
|
25,452
|
|
0.73
|
|
$
|
23,027
|
|
0.69
|
|
$
|
32,030
|
|
0.97
|
Consumer
|
45,233
|
|
1.68
|
|
42,052
|
|
1.56
|
|
43,518
|
|
1.71
|
|
41,951
|
|
1.65
|
|
56,995
|
|
2.17
|
|||||
Commercial
|
71,905
|
|
1.46
|
|
59,977
|
|
1.39
|
|
47,068
|
|
1.26
|
|
46,655
|
|
1.42
|
|
47,650
|
|
1.64
|
|||||
Commercial real estate
|
47,477
|
|
1.05
|
|
41,598
|
|
1.04
|
|
37,148
|
|
1.05
|
|
36,754
|
|
1.20
|
|
36,122
|
|
1.30
|
|||||
Equipment financing
|
6,479
|
|
1.02
|
|
5,487
|
|
0.91
|
|
6,078
|
|
1.13
|
|
4,186
|
|
0.91
|
|
4,332
|
|
1.03
|
|||||
Total ALLL
|
$
|
194,320
|
|
1.14
|
|
$
|
174,990
|
|
1.12
|
|
$
|
159,264
|
|
1.15
|
|
$
|
152,573
|
|
1.20
|
|
$
|
177,129
|
|
1.47
|
(1)
|
Percentage represents allocated ALLL to total loans and leases within the comparable category. However, the allocation of a portion of the allowance to one category of loans and leases does not preclude its availability to absorb losses in other categories.
|
|
At or for the years ended December 31,
|
||||||||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Beginning balance
|
$
|
174,990
|
|
|
$
|
159,264
|
|
|
$
|
152,573
|
|
|
$
|
177,129
|
|
|
$
|
233,487
|
|
Provision
|
56,350
|
|
|
49,300
|
|
|
37,250
|
|
|
33,500
|
|
|
21,500
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
(4,636
|
)
|
|
(6,508
|
)
|
|
(6,214
|
)
|
|
(11,592
|
)
|
|
(12,927
|
)
|
|||||
Consumer
|
(20,669
|
)
|
|
(17,679
|
)
|
|
(20,712
|
)
|
|
(29,037
|
)
|
|
(43,920
|
)
|
|||||
Commercial
|
(18,360
|
)
|
|
(11,522
|
)
|
|
(13,668
|
)
|
|
(19,126
|
)
|
|
(35,793
|
)
|
|||||
Commercial real estate
|
(2,682
|
)
|
|
(7,578
|
)
|
|
(3,237
|
)
|
|
(15,425
|
)
|
|
(9,894
|
)
|
|||||
Equipment financing
|
(565
|
)
|
|
(273
|
)
|
|
(595
|
)
|
|
(279
|
)
|
|
(1,668
|
)
|
|||||
Total charge-offs
|
(46,912
|
)
|
|
(43,560
|
)
|
|
(44,426
|
)
|
|
(75,459
|
)
|
|
(104,202
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
1,756
|
|
|
875
|
|
|
1,324
|
|
|
1,402
|
|
|
803
|
|
|||||
Consumer
|
5,343
|
|
|
4,366
|
|
|
5,055
|
|
|
6,185
|
|
|
7,040
|
|
|||||
Commercial
|
1,626
|
|
|
2,738
|
|
|
4,369
|
|
|
5,123
|
|
|
6,817
|
|
|||||
Commercial real estate
|
631
|
|
|
647
|
|
|
885
|
|
|
1,648
|
|
|
2,210
|
|
|||||
Equipment financing
|
536
|
|
|
1,360
|
|
|
2,234
|
|
|
3,045
|
|
|
9,474
|
|
|||||
Total recoveries
|
9,892
|
|
|
9,986
|
|
|
13,867
|
|
|
17,403
|
|
|
26,344
|
|
|||||
Net charge-offs
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
(2,880
|
)
|
|
(5,633
|
)
|
|
(4,890
|
)
|
|
(10,190
|
)
|
|
(12,124
|
)
|
|||||
Consumer
|
(15,326
|
)
|
|
(13,313
|
)
|
|
(15,657
|
)
|
|
(22,852
|
)
|
|
(36,880
|
)
|
|||||
Commercial
|
(16,734
|
)
|
|
(8,784
|
)
|
|
(9,299
|
)
|
|
(14,003
|
)
|
|
(28,976
|
)
|
|||||
Commercial real estate
|
(2,051
|
)
|
|
(6,931
|
)
|
|
(2,352
|
)
|
|
(13,777
|
)
|
|
(7,684
|
)
|
|||||
Equipment financing
|
(29
|
)
|
|
1,087
|
|
|
1,639
|
|
|
2,766
|
|
|
7,806
|
|
|||||
Net charge-offs
|
(37,020
|
)
|
|
(33,574
|
)
|
|
(30,559
|
)
|
|
(58,056
|
)
|
|
(77,858
|
)
|
|||||
Ending balance
|
$
|
194,320
|
|
|
$
|
174,990
|
|
|
$
|
159,264
|
|
|
$
|
152,573
|
|
|
$
|
177,129
|
|
|
Years ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Residential
|
0.07
|
%
|
|
0.15
|
%
|
|
0.14
|
%
|
|
0.31
|
%
|
|
0.37
|
%
|
Consumer
|
0.56
|
|
|
0.51
|
|
|
0.61
|
|
|
0.89
|
|
|
1.37
|
|
Commercial
|
0.36
|
|
|
0.22
|
|
|
0.26
|
|
|
0.46
|
|
|
1.12
|
|
Commercial real estate
|
0.05
|
|
|
0.18
|
|
|
0.07
|
|
|
0.48
|
|
|
0.30
|
|
Equipment financing
|
—
|
|
|
(0.20
|
)
|
|
(0.34
|
)
|
|
(0.67
|
)
|
|
(1.84
|
)
|
Total net charge-offs to total average loans and leases
|
0.23
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.47
|
%
|
|
0.68
|
%
|
|
At or for the years ended December 31,
|
||||||||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Beginning balance
|
$
|
2,119
|
|
|
$
|
5,151
|
|
|
$
|
4,384
|
|
|
$
|
5,662
|
|
|
$
|
5,449
|
|
Provision (benefit)
(1)
|
168
|
|
|
(3,032
|
)
|
|
767
|
|
|
(1,278
|
)
|
|
213
|
|
|||||
Ending balance
|
$
|
2,287
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
|
$
|
4,384
|
|
|
$
|
5,662
|
|
(1)
|
See
Note 20:
Commitments and Contingencies
for information regarding a change in the draw down factor estimation for 2015.
|
|
Years ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in thousands)
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|||||||||
Non-interest-bearing:
|
|
|
|
|
|
|
|
|
|||||||||
Demand
|
$
|
3,853,700
|
|
|
|
$
|
3,564,751
|
|
|
|
$
|
3,216,777
|
|
|
|||
Interest-bearing:
|
|
|
|
|
|
|
|
|
|||||||||
Checking
|
2,422,862
|
|
0.07
|
%
|
|
2,245,015
|
|
0.06
|
%
|
|
2,054,318
|
|
0.05
|
%
|
|||
Health savings accounts
|
4,150,733
|
|
0.23
|
|
|
3,561,900
|
|
0.24
|
|
|
1,738,368
|
|
0.30
|
|
|||
Money market
|
2,279,301
|
|
0.36
|
|
|
2,076,770
|
|
0.23
|
|
|
2,171,469
|
|
0.19
|
|
|||
Savings
|
4,219,681
|
|
0.19
|
|
|
3,962,364
|
|
0.18
|
|
|
3,899,548
|
|
0.19
|
|
|||
Time deposits
|
2,027,029
|
|
1.11
|
|
|
2,138,778
|
|
1.15
|
|
|
2,280,668
|
|
1.16
|
|
|||
Total interest-bearing
|
15,099,606
|
|
0.33
|
|
|
13,984,827
|
|
0.33
|
|
|
12,144,371
|
|
0.36
|
|
|||
Total average deposits
|
$
|
18,953,306
|
|
0.26
|
%
|
|
$
|
17,549,578
|
|
0.26
|
%
|
|
$
|
15,361,148
|
|
0.29
|
%
|
|
Years ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in thousands)
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|||||||||
FHLB advances
|
$
|
2,413,309
|
|
1.20
|
%
|
|
$
|
2,084,496
|
|
1.10
|
%
|
|
$
|
2,038,749
|
|
0.83
|
%
|
Securities sold under agreements to repurchase
|
744,957
|
|
1.82
|
|
|
842,207
|
|
1.93
|
|
|
966,304
|
|
1.93
|
|
|||
Federal funds
|
202,901
|
|
0.46
|
|
|
302,756
|
|
0.21
|
|
|
387,004
|
|
0.20
|
|
|||
Long-term debt
|
225,607
|
|
4.42
|
|
|
226,292
|
|
4.27
|
|
|
252,368
|
|
3.98
|
|
|||
Total average borrowings
|
$
|
3,586,774
|
|
1.49
|
%
|
|
$
|
3,455,751
|
|
1.43
|
%
|
|
$
|
3,644,425
|
|
1.27
|
%
|
|
At or for the years ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Rate
|
|
Amount
|
Rate
|
|
Amount
|
Rate
|
|||||||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
|
|
|
|||||||||
At end of year
|
$
|
340,526
|
|
0.16
|
%
|
|
$
|
334,400
|
|
0.15
|
%
|
|
$
|
409,756
|
|
0.15
|
%
|
Average during year
|
321,460
|
|
0.16
|
|
|
325,015
|
|
0.15
|
|
|
374,935
|
|
0.16
|
|
|||
Highest month-end balance during year
|
365,361
|
|
—
|
|
|
409,756
|
|
—
|
|
|
459,259
|
|
—
|
|
|||
Federal funds purchased:
|
|
|
|
|
|
|
|
|
|||||||||
At end of year
|
209,000
|
|
0.60
|
|
|
317,000
|
|
0.39
|
|
|
291,000
|
|
0.17
|
|
|||
Average during year
|
202,893
|
|
0.46
|
|
|
302,756
|
|
0.21
|
|
|
387,004
|
|
0.20
|
|
|||
Highest month-end balance during year
|
294,000
|
|
—
|
|
|
479,000
|
|
—
|
|
|
457,000
|
|
—
|
|
|
Payments Due by Period
(1)
|
|
|||||||||||||
(In thousands)
|
Less than
one year
|
1-3 years
|
3-5 years
|
After 5
years
|
Total
|
||||||||||
Senior notes
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
150,000
|
|
$
|
150,000
|
|
Junior subordinated debt
|
—
|
|
—
|
|
—
|
|
77,320
|
|
77,320
|
|
|||||
FHLB advances
|
2,130,500
|
|
328,026
|
|
225,000
|
|
159,370
|
|
2,842,896
|
|
|||||
Securities sold under agreements to repurchase
|
440,526
|
|
300,000
|
|
—
|
|
—
|
|
740,526
|
|
|||||
Fed funds purchased
|
209,000
|
|
—
|
|
—
|
|
—
|
|
209,000
|
|
|||||
Deposits with stated maturity dates
|
846,160
|
|
892,762
|
|
285,775
|
|
111
|
|
2,024,808
|
|
|||||
Operating leases
|
28,713
|
|
52,690
|
|
45,760
|
|
88,211
|
|
215,374
|
|
|||||
Purchase obligations
|
49,823
|
|
74,264
|
|
27,476
|
|
—
|
|
151,563
|
|
|||||
Total contractual obligations
|
$
|
3,704,722
|
|
$
|
1,647,742
|
|
$
|
584,011
|
|
$
|
475,012
|
|
$
|
6,411,487
|
|
(1)
|
Amounts for borrowings do not include interest. Amounts for leases are reflected as specified in the underlying contracts
.
|
•
|
unfunded commitments remaining for particular investments in private equity funds of
$7.7 million
, for which neither the payment timing, nor eventual obligation is certain;
|
•
|
credit related financial instruments with contractual amounts totaling
$5.4 billion
, of which many of these commitments are expected to expire unused or only partially used, and therefore, the total amount of these commitments does not necessarily reflect future cash payments; and
|
•
|
liabilities for UTPs totaling $5.6 million, for which uncertainty exists regarding the amount that may ultimately be paid, as well as the timing of any such payment.
|
•
|
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.
|
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
December 31, 2016
|
N/A
|
N/A
|
2.4%
|
4.7%
|
December 31, 2015
|
N/A
|
N/A
|
1.6%
|
3.2%
|
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
December 31, 2016
|
N/A
|
N/A
|
2.9%
|
6.3%
|
December 31, 2015
|
N/A
|
N/A
|
1.9%
|
4.0%
|
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
December 31, 2016
|
N/A
|
N/A
|
1.2%
|
2.3%
|
|
(3.8)%
|
(1.6)%
|
1.3%
|
2.3%
|
December 31, 2015
|
N/A
|
N/A
|
0.2%
|
0.8%
|
|
(4.2)%
|
(1.8)%
|
1.5%
|
2.7%
|
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
December 31, 2016
|
N/A
|
N/A
|
1.4%
|
2.7%
|
|
(5.6)%
|
(2.1)%
|
1.7%
|
3.7%
|
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
|
||||||||
At December 31, 2016
|
|
|
|
|
||||||
Assets
|
$
|
26,072,529
|
|
$
|
25,527,648
|
|
N/A
|
$
|
(633,934
|
)
|
Liabilities
|
23,545,517
|
|
22,650,967
|
|
N/A
|
(555,854
|
)
|
|||
Net
|
$
|
2,527,012
|
|
$
|
2,876,681
|
|
N/A
|
$
|
(78,080
|
)
|
Net change as % base net economic value
|
|
|
|
(2.7
|
)%
|
|||||
|
|
|
|
|
||||||
At 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
|
)
|
|||
Net
|
$
|
2,413,960
|
|
$
|
2,922,199
|
|
N/A
|
$
|
63,550
|
|
Net change as % base net economic value
|
|
|
|
2.2
|
%
|
|
Page No.
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets
|
|
Consolidated Statements of Income
|
|
Consolidated Statements of Comprehensive Income
|
|
Consolidated Statements of Shareholders' Equity
|
|
Consolidated Statements of Cash Flows
|
|
Notes to Consolidated Financial Statements
|
|
December 31,
|
||||||
(In thousands, except share data)
|
2016
|
|
2015
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
190,663
|
|
|
$
|
199,693
|
|
Interest-bearing deposits
|
29,461
|
|
|
155,907
|
|
||
Securities available-for-sale, at fair value
|
2,991,091
|
|
|
2,984,631
|
|
||
Securities held-to-maturity (fair value of $4,125,125 and $3,961,534)
|
4,160,658
|
|
|
3,923,052
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
194,646
|
|
|
188,347
|
|
||
Loans held for sale (valued under fair value option $60,260 and $0)
|
67,577
|
|
|
37,091
|
|
||
Loans and leases
|
17,026,588
|
|
|
15,671,735
|
|
||
Allowance for loan and lease losses
|
(194,320
|
)
|
|
(174,990
|
)
|
||
Loans and leases, net
|
16,832,268
|
|
|
15,496,745
|
|
||
Deferred tax assets, net
|
84,391
|
|
|
101,578
|
|
||
Premises and equipment, net
|
137,413
|
|
|
129,426
|
|
||
Goodwill
|
538,373
|
|
|
538,373
|
|
||
Other intangible assets, net
|
33,674
|
|
|
39,326
|
|
||
Cash surrender value of life insurance policies
|
517,852
|
|
|
503,093
|
|
||
Accrued interest receivable and other assets
|
294,462
|
|
|
343,856
|
|
||
Total assets
|
$
|
26,072,529
|
|
|
$
|
24,641,118
|
|
Liabilities and shareholders' equity:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
4,021,061
|
|
|
$
|
3,713,063
|
|
Interest-bearing
|
15,282,796
|
|
|
14,239,715
|
|
||
Total deposits
|
19,303,857
|
|
|
17,952,778
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
949,526
|
|
|
1,151,400
|
|
||
Federal Home Loan Bank advances
|
2,842,908
|
|
|
2,664,139
|
|
||
Long-term debt
|
225,514
|
|
|
225,260
|
|
||
Accrued expenses and other liabilities
|
223,712
|
|
|
233,581
|
|
||
Total liabilities
|
23,545,517
|
|
|
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
|
1,125,937
|
|
|
1,124,325
|
|
||
Retained earnings
|
1,425,320
|
|
|
1,315,948
|
|
||
Treasury stock, at cost (1,899,502 and 2,090,409 shares)
|
(70,899
|
)
|
|
(71,854
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(76,993
|
)
|
|
(78,106
|
)
|
||
Total shareholders' equity
|
2,527,012
|
|
|
2,413,960
|
|
||
Total liabilities and shareholders' equity
|
$
|
26,072,529
|
|
|
$
|
24,641,118
|
|
|
Years ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2016
|
|
2015
|
|
2014
|
||||||
Interest Income:
|
|
|
|
|
|
||||||
Interest and fees on loans and leases
|
$
|
621,028
|
|
|
$
|
552,441
|
|
|
$
|
511,612
|
|
Taxable interest and dividends on securities
|
180,346
|
|
|
190,061
|
|
|
189,408
|
|
|||
Non-taxable interest on securities
|
19,090
|
|
|
15,948
|
|
|
17,064
|
|
|||
Loans held for sale
|
1,449
|
|
|
1,590
|
|
|
857
|
|
|||
Total interest income
|
821,913
|
|
|
760,040
|
|
|
718,941
|
|
|||
Interest Expense:
|
|
|
|
|
|
||||||
Deposits
|
49,858
|
|
|
46,031
|
|
|
44,162
|
|
|||
Securities sold under agreements to repurchase and other borrowings
|
14,528
|
|
|
16,861
|
|
|
19,388
|
|
|||
Federal Home Loan Bank advances
|
29,033
|
|
|
22,858
|
|
|
16,909
|
|
|||
Long-term debt
|
9,981
|
|
|
9,665
|
|
|
10,041
|
|
|||
Total interest expense
|
103,400
|
|
|
95,415
|
|
|
90,500
|
|
|||
Net interest income
|
718,513
|
|
|
664,625
|
|
|
628,441
|
|
|||
Provision for loan and lease losses
|
56,350
|
|
|
49,300
|
|
|
37,250
|
|
|||
Net interest income after provision for loan and lease losses
|
662,163
|
|
|
615,325
|
|
|
591,191
|
|
|||
Non-interest Income:
|
|
|
|
|
|
||||||
Deposit service fees
|
140,685
|
|
|
135,057
|
|
|
103,431
|
|
|||
Loan and lease related fees
|
30,113
|
|
|
25,594
|
|
|
23,212
|
|
|||
Wealth and investment services
|
28,962
|
|
|
32,486
|
|
|
34,946
|
|
|||
Mortgage banking activities
|
11,103
|
|
|
7,795
|
|
|
4,070
|
|
|||
Increase in cash surrender value of life insurance policies
|
14,759
|
|
|
13,020
|
|
|
13,178
|
|
|||
Gain on sale of investment securities, net
|
414
|
|
|
609
|
|
|
5,499
|
|
|||
Impairment loss on securities recognized in earnings
|
(149
|
)
|
|
(110
|
)
|
|
(1,145
|
)
|
|||
Other income
|
38,591
|
|
|
23,326
|
|
|
18,917
|
|
|||
Total non-interest income
|
264,478
|
|
|
237,777
|
|
|
202,108
|
|
|||
Non-interest Expense:
|
|
|
|
|
|
||||||
Compensation and benefits
|
331,726
|
|
|
297,517
|
|
|
270,151
|
|
|||
Occupancy
|
60,294
|
|
|
48,836
|
|
|
47,325
|
|
|||
Technology and equipment
|
79,882
|
|
|
80,813
|
|
|
61,993
|
|
|||
Intangible assets amortization
|
5,652
|
|
|
6,340
|
|
|
2,685
|
|
|||
Marketing
|
19,703
|
|
|
16,053
|
|
|
15,379
|
|
|||
Professional and outside services
|
14,801
|
|
|
11,156
|
|
|
8,296
|
|
|||
Deposit insurance
|
26,006
|
|
|
24,042
|
|
|
22,670
|
|
|||
Other expense
|
85,127
|
|
|
70,584
|
|
|
73,101
|
|
|||
Total non-interest expense
|
623,191
|
|
|
555,341
|
|
|
501,600
|
|
|||
Income before income tax expense
|
303,450
|
|
|
297,761
|
|
|
291,699
|
|
|||
Income tax expense
|
96,323
|
|
|
93,032
|
|
|
91,973
|
|
|||
Net income
|
207,127
|
|
|
204,729
|
|
|
199,726
|
|
|||
Preferred stock dividends and other
|
(8,704
|
)
|
|
(9,368
|
)
|
|
(11,230
|
)
|
|||
Earnings applicable to common shareholders
|
$
|
198,423
|
|
|
$
|
195,361
|
|
|
$
|
188,496
|
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.17
|
|
|
$
|
2.15
|
|
|
$
|
2.10
|
|
Diluted
|
2.16
|
|
|
2.13
|
|
|
2.08
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Total available-for-sale and transferred securities
|
(9,069
|
)
|
|
(22,828
|
)
|
|
19,038
|
|
|||
Total derivative instruments
|
5,912
|
|
|
2,550
|
|
|
(7,324
|
)
|
|||
Total defined benefit pension and postretirement benefit plans
|
4,270
|
|
|
(1,567
|
)
|
|
(19,426
|
)
|
|||
Other comprehensive income (loss), net of tax
|
1,113
|
|
|
(21,845
|
)
|
|
(7,712
|
)
|
|||
Comprehensive income
|
$
|
208,240
|
|
|
$
|
182,884
|
|
|
$
|
192,014
|
|
(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, 2013
|
$
|
151,649
|
|
$
|
934
|
|
$
|
1,125,584
|
|
$
|
1,080,648
|
|
$
|
(100,918
|
)
|
$
|
(48,549
|
)
|
$
|
2,209,348
|
|
Net income
|
—
|
|
—
|
|
—
|
|
199,726
|
|
—
|
|
—
|
|
199,726
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7,712
|
)
|
(7,712
|
)
|
|||||||
Dividends and dividend equivalents declared on common stock $0.75 per share
|
—
|
|
—
|
|
57
|
|
(67,747
|
)
|
—
|
|
—
|
|
(67,690
|
)
|
|||||||
Dividends on Series A preferred stock $85.00 per share
|
—
|
|
—
|
|
—
|
|
(2,460
|
)
|
—
|
|
—
|
|
(2,460
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Common stock issued
|
—
|
|
2
|
|
433
|
|
—
|
|
—
|
|
—
|
|
435
|
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
3,223
|
|
180
|
|
6,710
|
|
—
|
|
10,113
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(1,760
|
)
|
—
|
|
3,981
|
|
—
|
|
2,221
|
|
|||||||
Shares acquired related to employee share-based compensation plans
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,326
|
)
|
—
|
|
(2,326
|
)
|
|||||||
Common stock repurchased
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,741
|
)
|
—
|
|
(10,741
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
|||||||
Balance at December 31, 2014
|
151,649
|
|
936
|
|
1,127,534
|
|
1,202,251
|
|
(103,294
|
)
|
(56,261
|
)
|
2,322,815
|
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
204,729
|
|
—
|
|
—
|
|
204,729
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21,845
|
)
|
(21,845
|
)
|
|||||||
Dividends and dividend equivalents declared on common stock $0.89 per share
|
—
|
|
—
|
|
119
|
|
(81,316
|
)
|
—
|
|
—
|
|
(81,197
|
)
|
|||||||
Dividends on Series A preferred stock $21.25 per share
|
—
|
|
—
|
|
—
|
|
(615
|
)
|
—
|
|
—
|
|
(615
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Common stock issued
|
—
|
|
1
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Preferred stock conversion
|
(28,939
|
)
|
—
|
|
(3,429
|
)
|
—
|
|
32,368
|
|
—
|
|
—
|
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,906
|
|
(1,005
|
)
|
11,046
|
|
—
|
|
12,947
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(2,781
|
)
|
—
|
|
5,841
|
|
—
|
|
3,060
|
|
|||||||
Shares acquired related to employee share-based compensation plans
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,251
|
)
|
—
|
|
(5,251
|
)
|
|||||||
Common stock repurchased
|
—
|
|
—
|
|
—
|
|
—
|
|
(12,564
|
)
|
—
|
|
(12,564
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(23
|
)
|
—
|
|
—
|
|
—
|
|
(23
|
)
|
|||||||
Balance at December 31, 2015
|
122,710
|
|
937
|
|
1,124,325
|
|
1,315,948
|
|
(71,854
|
)
|
(78,106
|
)
|
2,413,960
|
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
207,127
|
|
—
|
|
—
|
|
207,127
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,113
|
|
1,113
|
|
|||||||
Dividends and dividend equivalents declared on common stock $0.98 per share
|
—
|
|
—
|
|
149
|
|
(90,062
|
)
|
—
|
|
—
|
|
(89,913
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,976
|
|
403
|
|
10,713
|
|
—
|
|
14,092
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(1,350
|
)
|
—
|
|
13,112
|
|
—
|
|
11,762
|
|
|||||||
Shares acquired related to employee share-based compensation plans
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,664
|
)
|
—
|
|
(11,664
|
)
|
|||||||
Common stock repurchased
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,206
|
)
|
—
|
|
(11,206
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(163
|
)
|
—
|
|
—
|
|
—
|
|
(163
|
)
|
|||||||
Balance at December 31, 2016
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,125,937
|
|
$
|
1,425,320
|
|
$
|
(70,899
|
)
|
$
|
(76,993
|
)
|
$
|
2,527,012
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan and lease losses
|
56,350
|
|
|
49,300
|
|
|
37,250
|
|
|||
Deferred tax expense (benefit)
|
17,700
|
|
|
(15,513
|
)
|
|
(5,154
|
)
|
|||
Depreciation and amortization
|
36,449
|
|
|
34,678
|
|
|
30,585
|
|
|||
Amortization of earning assets and funding premium/discount, net
|
57,331
|
|
|
54,555
|
|
|
50,758
|
|
|||
Stock-based compensation
|
11,438
|
|
|
10,935
|
|
|
10,223
|
|
|||
Gain on sale, net of write-down, on foreclosed and repossessed assets
|
(976
|
)
|
|
(311
|
)
|
|
(1,297
|
)
|
|||
Loss (gain) on sale, net of write-down, on premises and equipment
|
397
|
|
|
(244
|
)
|
|
(292
|
)
|
|||
Impairment loss on securities recognized in earnings
|
149
|
|
|
110
|
|
|
1,145
|
|
|||
Gain on the sale of investment securities, net
|
(414
|
)
|
|
(609
|
)
|
|
(5,499
|
)
|
|||
Increase in cash surrender value of life insurance policies
|
(14,759
|
)
|
|
(13,020
|
)
|
|
(13,178
|
)
|
|||
Gain from life insurance policies
|
—
|
|
|
(220
|
)
|
|
(2,229
|
)
|
|||
Mortgage banking activities
|
(11,103
|
)
|
|
(7,795
|
)
|
|
(4,070
|
)
|
|||
Proceeds from sale of loans held for sale
|
438,925
|
|
|
452,590
|
|
|
287,132
|
|
|||
Originations of loans held for sale
|
(452,886
|
)
|
|
(449,048
|
)
|
|
(296,996
|
)
|
|||
Net decrease (increase) in derivative contract assets net of liabilities
|
27,929
|
|
|
(6,489
|
)
|
|
(49,158
|
)
|
|||
Gain on redemption of other assets
|
(7,331
|
)
|
|
—
|
|
|
—
|
|
|||
Net decrease (increase) in accrued interest receivable and other assets
|
50,737
|
|
|
(44,334
|
)
|
|
(2,552
|
)
|
|||
Net (decrease) increase in accrued expenses and other liabilities
|
(18,918
|
)
|
|
33,478
|
|
|
6,601
|
|
|||
Net cash provided by operating activities
|
398,145
|
|
|
302,792
|
|
|
242,995
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Net decrease (increase) in interest-bearing deposits
|
126,446
|
|
|
(23,212
|
)
|
|
(109,021
|
)
|
|||
Purchases of available-for-sale securities
|
(980,870
|
)
|
|
(903,240
|
)
|
|
(217,920
|
)
|
|||
Proceeds from maturities and principal payments of available-for-sale securities
|
672,965
|
|
|
558,301
|
|
|
416,821
|
|
|||
Proceeds from sales of available-for-sale securities
|
259,283
|
|
|
123,270
|
|
|
98,402
|
|
|||
Purchases of held-to-maturity securities
|
(1,066,156
|
)
|
|
(761,033
|
)
|
|
(1,113,958
|
)
|
|||
Proceeds from maturities and principal payments of held-to-maturity securities
|
795,953
|
|
|
681,124
|
|
|
575,009
|
|
|||
Net (purchase) proceeds of Federal Home Loan Bank stock
|
(6,299
|
)
|
|
4,943
|
|
|
(34,412
|
)
|
|||
Alternative investments (capital call) return of capital, net
|
(381
|
)
|
|
458
|
|
|
(115
|
)
|
|||
Net increase in loans
|
(1,440,141
|
)
|
|
(1,813,811
|
)
|
|
(1,269,290
|
)
|
|||
Proceeds from loans not originated for sale
|
34,170
|
|
|
33,644
|
|
|
—
|
|
|||
Purchase of life insurance policies
|
—
|
|
|
(50,000
|
)
|
|
—
|
|
|||
Proceeds from life insurance policies
|
—
|
|
|
3,912
|
|
|
2,178
|
|
|||
Proceeds from the sale of foreclosed properties and repossessed assets
|
9,205
|
|
|
10,511
|
|
|
8,995
|
|
|||
Proceeds from the sale of premises and equipment
|
1,550
|
|
|
650
|
|
|
3,565
|
|
|||
Additions to premises and equipment
|
(40,731
|
)
|
|
(36,115
|
)
|
|
(30,039
|
)
|
|||
Acquisition of business, net cash acquired
|
—
|
|
|
1,396,414
|
|
|
—
|
|
|||
Net cash used for investing activities
|
(1,635,006
|
)
|
|
(774,184
|
)
|
|
(1,669,785
|
)
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Financing Activities:
|
|
|
|
|
|
||||||
Net increase in deposits
|
1,351,609
|
|
|
853,921
|
|
|
797,244
|
|
|||
Contingent consideration
|
5,000
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from Federal Home Loan Bank advances
|
19,630,000
|
|
|
13,505,000
|
|
|
10,372,226
|
|
|||
Repayments of Federal Home Loan Bank advances
|
(19,451,219
|
)
|
|
(13,700,279
|
)
|
|
(9,565,192
|
)
|
|||
Net decrease in securities sold under agreements to repurchase and other borrowings
|
(201,874
|
)
|
|
(99,356
|
)
|
|
(80,906
|
)
|
|||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
150,000
|
|
|||
Repayment of long-term debt
|
—
|
|
|
—
|
|
|
(150,000
|
)
|
|||
Debt issuance costs
|
—
|
|
|
—
|
|
|
(1,349
|
)
|
|||
Dividends paid to common shareholders
|
(89,522
|
)
|
|
(80,964
|
)
|
|
(67,431
|
)
|
|||
Dividends paid to preferred shareholders
|
(8,096
|
)
|
|
(8,711
|
)
|
|
(10,556
|
)
|
|||
Exercise of stock options
|
11,762
|
|
|
3,060
|
|
|
2,221
|
|
|||
Excess tax benefits from stock-based compensation
|
3,204
|
|
|
2,338
|
|
|
1,161
|
|
|||
Common stock issued
|
—
|
|
|
—
|
|
|
435
|
|
|||
Common stock repurchased
|
(11,206
|
)
|
|
(12,564
|
)
|
|
(10,741
|
)
|
|||
Shares acquired related to employee share-based compensation plans
|
(11,664
|
)
|
|
(5,251
|
)
|
|
(2,326
|
)
|
|||
Common stock warrants repurchased
|
(163
|
)
|
|
(23
|
)
|
|
(3
|
)
|
|||
Net cash provided by financing activities
|
1,227,831
|
|
|
457,171
|
|
|
1,434,783
|
|
|||
Net (decrease) increase in cash and due from banks
|
(9,030
|
)
|
|
(14,221
|
)
|
|
7,993
|
|
|||
Cash and due from banks at beginning of period
|
199,693
|
|
|
213,914
|
|
|
205,921
|
|
|||
Cash and due from banks at end of period
|
$
|
190,663
|
|
|
$
|
199,693
|
|
|
$
|
213,914
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
102,438
|
|
|
$
|
95,428
|
|
|
$
|
89,942
|
|
Income taxes paid
|
80,143
|
|
|
106,991
|
|
|
102,973
|
|
|||
Noncash investing and financing activities:
|
|
|
|
|
|
||||||
Transfer of loans and leases to foreclosed properties and repossessed assets
|
$
|
6,769
|
|
|
$
|
8,714
|
|
|
$
|
5,532
|
|
Transfer of loans from portfolio to loans held for sale
|
39,383
|
|
|
585
|
|
|
—
|
|
|||
Deposits assumed in business acquisition
|
—
|
|
|
1,446,899
|
|
|
—
|
|
|||
Preferred stock conversion
|
—
|
|
|
28,939
|
|
|
—
|
|
|
December 31, 2015
|
||||||
(In thousands)
|
As Reported
|
|
As Revised
|
||||
Consolidated Balance Sheets
|
|
|
|
||||
Cash and due from banks
|
$
|
251,258
|
|
|
$
|
199,693
|
|
Accrued interest receivable and other assets
(1)
|
328,993
|
|
|
343,856
|
|
||
Accrued expenses and other liabilities
|
267,576
|
|
|
233,581
|
|
||
Retained earnings
|
1,317,559
|
|
|
1,315,948
|
|
(1)
|
The amount recorded as revised includes the impact of a
$1.1 million
reclassification of debt issuance cost from accrued interest receivable and other assets into long-term debt. The reclassification was made in accordance with the Company's adoption of ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, and is not considered part of the error correction.
|
|
Year ended December 31, 2015
|
||||||
(In thousands, except per share data)
|
As Reported
|
|
As Revised
|
||||
Consolidated Statements of Income
|
|
|
|
||||
Deposit service fees
|
$
|
136,578
|
|
|
$
|
135,057
|
|
Other income
|
23,573
|
|
|
23,326
|
|
||
Technology and equipment
|
80,026
|
|
|
80,813
|
|
||
Income tax expense
|
93,976
|
|
|
93,032
|
|
||
Net income
|
206,340
|
|
|
204,729
|
|
||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
2.17
|
|
|
$
|
2.15
|
|
Diluted
|
2.15
|
|
|
2.13
|
|
||
|
|
|
|
||||
HSA Segment:
|
|
|
|
||||
Net income
|
$
|
39,173
|
|
|
$
|
37,443
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
(In thousands)
|
As Reported
|
|
As Revised
|
|
As Reported
|
|
As Revised
|
||||||||
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
||||||||
Net (increase) in accrued interest receivable and other assets
(1)
|
$
|
(49,899
|
)
|
|
$
|
(44,334
|
)
|
|
$
|
(24,502
|
)
|
|
$
|
(2,552
|
)
|
Net increase in accrued expenses and other liabilities
(1)
|
35,336
|
|
|
33,478
|
|
|
9,213
|
|
|
6,601
|
|
(1)
|
An additional line item, net decrease (increase) in derivative contract assets net of liabilities, was added to the Consolidated Statements of Cash Flows to detail the net change in derivative balances subject to offsetting. The update removed
$6.5 million
and
$49.2 million
in net increases in derivative contract assets net of liabilities from the net (increase) in accrued interest receivable and other assets and net increase in accrued expenses and other liabilities line items for the years ended December 31, 2015 and December 31, 2014 respectively.
|
•
|
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.
|
•
|
ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern;
|
•
|
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.
|
|
At December 31,
|
||||||||||||||||||||||||
|
2016
|
|
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
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
|
$
|
924
|
|
$
|
—
|
|
$
|
—
|
|
$
|
924
|
|
Agency CMO
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
|
546,168
|
|
5,532
|
|
(2,946
|
)
|
548,754
|
|
||||||||
Agency MBS
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
|
1,075,941
|
|
6,459
|
|
(17,291
|
)
|
1,065,109
|
|
||||||||
Agency CMBS
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
|
215,670
|
|
639
|
|
(959
|
)
|
215,350
|
|
||||||||
CMBS
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
|
574,686
|
|
7,485
|
|
(2,905
|
)
|
579,266
|
|
||||||||
CLO
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
|
431,837
|
|
592
|
|
(3,270
|
)
|
429,159
|
|
||||||||
Single issuer trust preferred securities
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
|
42,168
|
|
—
|
|
(4,998
|
)
|
37,170
|
|
||||||||
Corporate debt securities
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
|
104,031
|
|
2,290
|
|
—
|
|
106,321
|
|
||||||||
Equities - financial institutions
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,499
|
|
—
|
|
(921
|
)
|
2,578
|
|
||||||||
Total available-for-sale
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
|
$
|
2,994,924
|
|
$
|
22,997
|
|
$
|
(33,290
|
)
|
$
|
2,984,631
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
|
$
|
407,494
|
|
$
|
3,717
|
|
$
|
(2,058
|
)
|
$
|
409,153
|
|
Agency MBS
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
|
2,030,176
|
|
38,813
|
|
(19,908
|
)
|
2,049,081
|
|
||||||||
Agency CMBS
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
|
686,086
|
|
4,253
|
|
(325
|
)
|
690,014
|
|
||||||||
Municipal bonds and notes
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
|
435,905
|
|
12,019
|
|
(417
|
)
|
447,507
|
|
||||||||
CMBS
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
|
360,018
|
|
5,046
|
|
(2,704
|
)
|
362,360
|
|
||||||||
Private Label MBS
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
|
3,373
|
|
46
|
|
—
|
|
3,419
|
|
||||||||
Total held-to-maturity
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
$
|
3,923,052
|
|
$
|
63,894
|
|
$
|
(25,412
|
)
|
$
|
3,961,534
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
3,288
|
|
|
$
|
3,696
|
|
|
$
|
16,633
|
|
Reduction for securities sold or called
|
(194
|
)
|
|
(518
|
)
|
|
(14,082
|
)
|
|||
Additions for OTTI not previously recognized
|
149
|
|
|
110
|
|
|
1,145
|
|
|||
Ending balance
|
$
|
3,243
|
|
|
$
|
3,288
|
|
|
$
|
3,696
|
|
|
At December 31, 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
|
$
|
107,853
|
|
$
|
(2,168
|
)
|
|
$
|
67,351
|
|
$
|
(1,335
|
)
|
|
15
|
$
|
175,204
|
|
$
|
(3,503
|
)
|
Agency MBS
|
512,075
|
|
(10,503
|
)
|
|
252,779
|
|
(9,006
|
)
|
|
97
|
764,854
|
|
(19,509
|
)
|
||||||
Agency CMBS
|
554,246
|
|
(14,567
|
)
|
|
—
|
|
—
|
|
|
32
|
554,246
|
|
(14,567
|
)
|
||||||
CMBS
|
12,427
|
|
(24
|
)
|
|
63,930
|
|
(678
|
)
|
|
12
|
76,357
|
|
(702
|
)
|
||||||
CLO
|
49,946
|
|
(54
|
)
|
|
50,237
|
|
(465
|
)
|
|
5
|
100,183
|
|
(519
|
)
|
||||||
Single issuer trust preferred securities
|
—
|
|
—
|
|
|
28,633
|
|
(1,748
|
)
|
|
5
|
28,633
|
|
(1,748
|
)
|
||||||
Corporate debt securities
|
—
|
|
—
|
|
|
7,384
|
|
(350
|
)
|
|
2
|
7,384
|
|
(350
|
)
|
||||||
Equities-financial institutions
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
—
|
|
||||||
Total available-for-sale in an unrealized loss position
|
$
|
1,236,547
|
|
$
|
(27,316
|
)
|
|
$
|
470,314
|
|
$
|
(13,582
|
)
|
|
168
|
$
|
1,706,861
|
|
$
|
(40,898
|
)
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
163,439
|
|
$
|
(3,339
|
)
|
|
$
|
17,254
|
|
$
|
(485
|
)
|
|
16
|
$
|
180,693
|
|
$
|
(3,824
|
)
|
Agency MBS
|
1,394,623
|
|
(32,942
|
)
|
|
273,779
|
|
(8,826
|
)
|
|
150
|
1,668,402
|
|
(41,768
|
)
|
||||||
Agency CMBS
|
347,725
|
|
(1,348
|
)
|
|
—
|
|
—
|
|
|
25
|
347,725
|
|
(1,348
|
)
|
||||||
Municipal bonds and notes
|
384,795
|
|
(25,745
|
)
|
|
1,192
|
|
(4
|
)
|
|
196
|
385,987
|
|
(25,749
|
)
|
||||||
CMBS
|
60,768
|
|
(411
|
)
|
|
—
|
|
—
|
|
|
8
|
60,768
|
|
(411
|
)
|
||||||
Total held-to-maturity in an unrealized loss position
|
$
|
2,351,350
|
|
$
|
(63,785
|
)
|
|
$
|
292,225
|
|
$
|
(9,315
|
)
|
|
395
|
$
|
2,643,575
|
|
$
|
(73,100
|
)
|
|
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
|
)
|
||||||
Corporate debt securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
—
|
|
—
|
|
||||||
Equities-financial institutions
|
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
|
)
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Proceeds from sales
|
$
|
259,273
|
|
|
$
|
95,101
|
|
|
$
|
126,580
|
|
|
|
|
|
|
|
||||||
Gross realized gains on sales
|
$
|
2,891
|
|
|
$
|
1,029
|
|
|
$
|
7,268
|
|
Less: Gross realized losses on sales
|
2,477
|
|
|
420
|
|
|
1,769
|
|
|||
Gain on sale of investment securities, net
|
$
|
414
|
|
|
$
|
609
|
|
|
$
|
5,499
|
|
|
At December 31, 2016
|
||||||||||||
|
|
|
|
||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Due in one year or less
|
$
|
75,466
|
|
$
|
76,383
|
|
|
$
|
13,612
|
|
$
|
13,721
|
|
Due after one year through five years
|
21,781
|
|
22,190
|
|
|
17,313
|
|
17,611
|
|
||||
Due after five through ten years
|
529,247
|
|
532,352
|
|
|
46,835
|
|
47,780
|
|
||||
Due after ten years
|
2,389,269
|
|
2,360,166
|
|
|
4,082,898
|
|
4,046,013
|
|
||||
Total debt securities
|
$
|
3,015,763
|
|
$
|
2,991,091
|
|
|
$
|
4,160,658
|
|
$
|
4,125,125
|
|
•
|
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.
|
|
At December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Residential
|
$
|
4,254,682
|
|
|
$
|
4,061,001
|
|
Consumer
|
2,684,500
|
|
|
2,702,560
|
|
||
Commercial
|
4,940,931
|
|
|
4,315,999
|
|
||
Commercial Real Estate
|
4,510,846
|
|
|
3,991,649
|
|
||
Equipment Financing
|
635,629
|
|
|
600,526
|
|
||
Loans and leases
(1) (2)
|
$
|
17,026,588
|
|
|
$
|
15,671,735
|
|
(1)
|
Loans and leases include net deferred fees and net premiums and discounts of
$17.3 million
and
$18.0 million
at
December 31, 2016
and
December 31, 2015
, respectively.
|
(2)
|
At
December 31, 2016
, the Company had pledged
$6.4 billion
of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston.
|
|
At December 31, 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
|
$
|
8,631
|
|
$
|
2,609
|
|
$
|
—
|
|
$
|
47,279
|
|
$
|
58,519
|
|
$
|
4,196,163
|
|
$
|
4,254,682
|
|
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
8,831
|
|
5,782
|
|
—
|
|
35,926
|
|
50,539
|
|
2,359,354
|
|
2,409,893
|
|
|||||||
Other consumer
|
2,233
|
|
1,485
|
|
—
|
|
1,663
|
|
5,381
|
|
269,226
|
|
274,607
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial non-mortgage
|
1,382
|
|
577
|
|
749
|
|
38,190
|
|
40,898
|
|
4,094,727
|
|
4,135,625
|
|
|||||||
Asset-based
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
805,306
|
|
805,306
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
6,357
|
|
1,816
|
|
—
|
|
9,871
|
|
18,044
|
|
4,117,742
|
|
4,135,786
|
|
|||||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
662
|
|
662
|
|
374,398
|
|
375,060
|
|
|||||||
Equipment financing
|
903
|
|
693
|
|
—
|
|
225
|
|
1,821
|
|
633,808
|
|
635,629
|
|
|||||||
Total
|
$
|
28,337
|
|
$
|
12,962
|
|
$
|
749
|
|
$
|
133,816
|
|
$
|
175,864
|
|
$
|
16,850,724
|
|
$
|
17,026,588
|
|
|
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 Year ended December 31, 2016
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2016
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
59,977
|
|
$
|
41,598
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Provision (benefit) charged to expense
|
230
|
|
18,507
|
|
28,662
|
|
7,930
|
|
1,021
|
|
56,350
|
|
||||||
Losses charged off
|
(4,636
|
)
|
(20,669
|
)
|
(18,360
|
)
|
(2,682
|
)
|
(565
|
)
|
(46,912
|
)
|
||||||
Recoveries
|
1,756
|
|
5,343
|
|
1,626
|
|
631
|
|
536
|
|
9,892
|
|
||||||
Balance at December 31, 2016
|
$
|
23,226
|
|
$
|
45,233
|
|
$
|
71,905
|
|
$
|
47,477
|
|
$
|
6,479
|
|
$
|
194,320
|
|
Individually evaluated for impairment
|
$
|
8,090
|
|
$
|
2,903
|
|
$
|
7,422
|
|
$
|
169
|
|
$
|
9
|
|
$
|
18,593
|
|
Collectively evaluated for impairment
|
$
|
15,136
|
|
$
|
42,330
|
|
$
|
64,483
|
|
$
|
47,308
|
|
$
|
6,470
|
|
$
|
175,727
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
119,424
|
|
$
|
45,719
|
|
$
|
53,037
|
|
$
|
24,755
|
|
$
|
6,420
|
|
$
|
249,355
|
|
Collectively evaluated for impairment
|
4,135,258
|
|
2,638,781
|
|
4,887,894
|
|
4,486,091
|
|
629,209
|
|
16,777,233
|
|
||||||
Loans and leases
|
$
|
4,254,682
|
|
$
|
2,684,500
|
|
$
|
4,940,931
|
|
$
|
4,510,846
|
|
$
|
635,629
|
|
$
|
17,026,588
|
|
|
At or for the Year ended December 31, 2015
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2015
|
$
|
25,452
|
|
$
|
43,518
|
|
$
|
47,068
|
|
$
|
37,148
|
|
$
|
6,078
|
|
$
|
159,264
|
|
Provision (benefit) charged to expense
|
6,057
|
|
11,847
|
|
21,693
|
|
11,381
|
|
(1,678
|
)
|
49,300
|
|
||||||
Losses charged off
|
(6,508
|
)
|
(17,679
|
)
|
(11,522
|
)
|
(7,578
|
)
|
(273
|
)
|
(43,560
|
)
|
||||||
Recoveries
|
875
|
|
4,366
|
|
2,738
|
|
647
|
|
1,360
|
|
9,986
|
|
||||||
Balance at December 31, 2015
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
59,977
|
|
$
|
41,598
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Individually evaluated for impairment
|
$
|
10,364
|
|
$
|
3,477
|
|
$
|
5,197
|
|
$
|
3,163
|
|
$
|
3
|
|
$
|
22,204
|
|
Collectively evaluated for impairment
|
$
|
15,512
|
|
$
|
38,575
|
|
$
|
54,780
|
|
$
|
38,435
|
|
$
|
5,484
|
|
$
|
152,786
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
134,448
|
|
$
|
48,425
|
|
$
|
56,581
|
|
$
|
39,295
|
|
$
|
422
|
|
$
|
279,171
|
|
Collectively evaluated for impairment
|
3,926,553
|
|
2,654,135
|
|
4,259,418
|
|
3,952,354
|
|
600,104
|
|
15,392,564
|
|
||||||
Loans and leases
|
$
|
4,061,001
|
|
$
|
2,702,560
|
|
$
|
4,315,999
|
|
$
|
3,991,649
|
|
$
|
600,526
|
|
$
|
15,671,735
|
|
|
At or for the Year ended December 31, 2014
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2014
|
$
|
23,027
|
|
$
|
41,951
|
|
$
|
46,655
|
|
$
|
36,754
|
|
$
|
4,186
|
|
$
|
152,573
|
|
Provision (benefit) charged to expense
|
7,315
|
|
17,224
|
|
9,712
|
|
2,746
|
|
253
|
|
37,250
|
|
||||||
Losses charged off
|
(6,214
|
)
|
(20,712
|
)
|
(13,668
|
)
|
(3,237
|
)
|
(595
|
)
|
(44,426
|
)
|
||||||
Recoveries
|
1,324
|
|
5,055
|
|
4,369
|
|
885
|
|
2,234
|
|
13,867
|
|
||||||
Balance at December 31, 2014
|
$
|
25,452
|
|
$
|
43,518
|
|
$
|
47,068
|
|
$
|
37,148
|
|
$
|
6,078
|
|
$
|
159,264
|
|
Individually evaluated for impairment
|
$
|
12,094
|
|
$
|
4,237
|
|
$
|
2,710
|
|
$
|
6,232
|
|
$
|
28
|
|
$
|
25,301
|
|
Collectively evaluated for impairment
|
$
|
13,358
|
|
$
|
39,281
|
|
$
|
44,358
|
|
$
|
30,916
|
|
$
|
6,050
|
|
$
|
133,963
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
141,982
|
|
$
|
50,249
|
|
$
|
36,176
|
|
$
|
101,817
|
|
$
|
632
|
|
$
|
330,856
|
|
Collectively evaluated for impairment
|
3,367,193
|
|
2,499,152
|
|
3,713,094
|
|
3,452,611
|
|
537,119
|
|
13,569,169
|
|
||||||
Loans and leases
|
$
|
3,509,175
|
|
$
|
2,549,401
|
|
$
|
3,749,270
|
|
$
|
3,554,428
|
|
$
|
537,751
|
|
$
|
13,900,025
|
|
|
At December 31, 2016
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded
Investment
|
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential:
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
131,468
|
|
$
|
119,424
|
|
$
|
21,068
|
|
$
|
98,356
|
|
$
|
8,090
|
|
Consumer:
|
|
|
|
|
|
||||||||||
Home equity
|
52,432
|
|
45,719
|
|
22,746
|
|
22,973
|
|
2,903
|
|
|||||
Commercial:
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
57,732
|
|
53,037
|
|
26,006
|
|
27,031
|
|
7,422
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
24,146
|
|
23,568
|
|
19,591
|
|
3,977
|
|
169
|
|
|||||
Commercial construction
|
1,188
|
|
1,187
|
|
1,187
|
|
—
|
|
—
|
|
|||||
Equipment financing
|
6,398
|
|
6,420
|
|
6,197
|
|
223
|
|
9
|
|
|||||
Total
|
$
|
273,364
|
|
$
|
249,355
|
|
$
|
96,795
|
|
$
|
152,560
|
|
$
|
18,593
|
|
|
At December 31, 2015
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded
Investment
|
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential:
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
148,144
|
|
$
|
134,448
|
|
$
|
23,024
|
|
$
|
111,424
|
|
$
|
10,364
|
|
Consumer:
|
|
|
|
|
|
||||||||||
Home equity
|
56,680
|
|
48,425
|
|
25,130
|
|
23,295
|
|
3,477
|
|
|||||
Commercial:
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
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
|
|
|
Years ended December 31,
|
||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
(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
|
||||||||||||||||||
Residential
|
$
|
126,936
|
|
$
|
4,377
|
|
$
|
1,200
|
|
|
$
|
138,215
|
|
$
|
4,473
|
|
$
|
1,139
|
|
|
$
|
142,198
|
|
$
|
4,644
|
|
$
|
1,221
|
|
Consumer
|
47,072
|
|
1,361
|
|
985
|
|
|
49,337
|
|
1,451
|
|
1,099
|
|
|
51,171
|
|
1,484
|
|
1,203
|
|
|||||||||
Commercial
|
54,708
|
|
1,540
|
|
—
|
|
|
46,379
|
|
1,319
|
|
—
|
|
|
44,097
|
|
2,326
|
|
—
|
|
|||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
28,451
|
|
511
|
|
—
|
|
|
64,495
|
|
1,165
|
|
—
|
|
|
93,209
|
|
3,429
|
|
—
|
|
|||||||||
Commercial construction
|
3,574
|
|
92
|
|
—
|
|
|
6,062
|
|
133
|
|
—
|
|
|
8,381
|
|
269
|
|
—
|
|
|||||||||
Equipment financing
|
3,421
|
|
184
|
|
—
|
|
|
527
|
|
16
|
|
—
|
|
|
421
|
|
28
|
|
—
|
|
|||||||||
Total
|
$
|
264,162
|
|
$
|
8,065
|
|
$
|
2,185
|
|
|
$
|
305,015
|
|
$
|
8,557
|
|
$
|
2,238
|
|
|
$
|
339,477
|
|
$
|
12,180
|
|
$
|
2,424
|
|
|
Commercial
|
|
Commercial Real Estate
|
|
Equipment Financing
|
||||||||||||||||||
(In thousands)
|
At December 31,
2016 |
|
At December 31,
2015 |
|
At December 31,
2016 |
|
At December 31,
2015 |
|
At December 31,
2016 |
|
At December 31,
2015 |
||||||||||||
(1) - (6) Pass
|
$
|
4,655,007
|
|
|
$
|
4,023,255
|
|
|
$
|
4,357,458
|
|
|
$
|
3,857,019
|
|
|
$
|
618,084
|
|
|
$
|
586,445
|
|
(7) Special Mention
|
56,240
|
|
|
70,904
|
|
|
69,023
|
|
|
55,030
|
|
|
1,324
|
|
|
1,628
|
|
||||||
(8) Substandard
|
226,603
|
|
|
220,389
|
|
|
84,365
|
|
|
79,289
|
|
|
16,221
|
|
|
12,453
|
|
||||||
(9) Doubtful
|
3,081
|
|
|
1,451
|
|
|
—
|
|
|
311
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
4,940,931
|
|
|
$
|
4,315,999
|
|
|
$
|
4,510,846
|
|
|
$
|
3,991,649
|
|
|
$
|
635,629
|
|
|
$
|
600,526
|
|
|
At December 31,
|
||||||
(Dollars in thousands)
|
2016
|
|
2015
|
||||
Accrual status
|
$
|
147,809
|
|
|
$
|
171,784
|
|
Non-accrual status
|
75,719
|
|
|
100,906
|
|
||
Total recorded investment of TDR
(1)
|
$
|
223,528
|
|
|
$
|
272,690
|
|
Accruing TDR performing under modified terms more than one year
|
57.1
|
%
|
|
55.0
|
%
|
||
Specific reserves for TDR included in the balance of ALLL
|
$
|
14,583
|
|
|
$
|
21,405
|
|
Additional funds committed to borrowers in TDR status
|
459
|
|
|
1,133
|
|
(1)
|
Total recorded investment of TDRs exclude
$0.7 million
and
$1.1 million
at
December 31, 2016
and
December 31, 2015
, respectively, of accrued interest receivable.
|
|
Years ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||
|
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
|
17
|
|
$
|
2,801
|
|
|
27
|
|
$
|
4,909
|
|
|
27
|
|
$
|
3,547
|
|
Adjusted Interest rates
|
2
|
|
528
|
|
|
3
|
|
573
|
|
|
3
|
|
448
|
|
|||
Combination Rate and Maturity
|
13
|
|
1,537
|
|
|
26
|
|
5,315
|
|
|
22
|
|
4,220
|
|
|||
Other
(2)
|
24
|
|
4,090
|
|
|
30
|
|
4,366
|
|
|
55
|
|
11,791
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
11
|
|
484
|
|
|
12
|
|
1,012
|
|
|
19
|
|
944
|
|
|||
Adjusted Interest rates
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
51
|
|
|||
Combination Rate and Maturity
|
15
|
|
1,156
|
|
|
12
|
|
945
|
|
|
6
|
|
411
|
|
|||
Other
(2)
|
52
|
|
3,131
|
|
|
68
|
|
3,646
|
|
|
90
|
|
4,931
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
12
|
|
14,883
|
|
|
3
|
|
254
|
|
|
7
|
|
422
|
|
|||
Adjusted Interest rates
|
—
|
|
—
|
|
|
1
|
|
24
|
|
|
1
|
|
25
|
|
|||
Combination Rate and Maturity
|
2
|
|
648
|
|
|
7
|
|
5,361
|
|
|
22
|
|
1,212
|
|
|||
Other
(2)
|
13
|
|
1,767
|
|
|
20
|
|
22,048
|
|
|
6
|
|
7,431
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
3
|
|
4,921
|
|
|
1
|
|
315
|
|
|
—
|
|
—
|
|
|||
Adjusted Interest rates
|
1
|
|
237
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Combination Rate and Maturity
|
2
|
|
335
|
|
|
1
|
|
42
|
|
|
2
|
|
11,106
|
|
|||
Other
(2)
|
1
|
|
509
|
|
|
1
|
|
405
|
|
|
—
|
|
—
|
|
|||
Equipment Financing
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
7
|
|
6,642
|
|
|
—
|
|
—
|
|
|
1
|
|
492
|
|
|||
Total
|
175
|
|
$
|
43,669
|
|
|
212
|
|
$
|
49,215
|
|
|
262
|
|
$
|
47,031
|
|
(1)
|
Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of the restructurings was not significant.
|
(2)
|
Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, and/or other concessions.
|
|
Years ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||
(Dollars in thousands)
|
Number of
Loans and
Leases
|
Recorded
Investment
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
||||||
Residential
|
—
|
$
|
—
|
|
|
1
|
$
|
55
|
|
|
7
|
$
|
1,494
|
|
Consumer
|
—
|
—
|
|
|
1
|
3
|
|
|
2
|
24
|
|
|||
Total
|
—
|
$
|
—
|
|
|
2
|
$
|
58
|
|
|
9
|
$
|
1,518
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
1,192
|
|
|
$
|
1,059
|
|
|
$
|
2,254
|
|
(Benefit) provision charged to expense
|
(303
|
)
|
|
133
|
|
|
(493
|
)
|
|||
Repurchased loans and settlements charged off
|
(99
|
)
|
|
—
|
|
|
(702
|
)
|
|||
Ending balance
|
$
|
790
|
|
|
$
|
1,192
|
|
|
$
|
1,059
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Residential mortgage loans held for sale:
|
|
|
|
|
|
||||||
Proceeds from sale
|
$
|
438,925
|
|
|
$
|
452,590
|
|
|
$
|
287,132
|
|
Net gain on sale
|
11,629
|
|
|
7,795
|
|
|
4,070
|
|
|||
Fair value option adjustment
|
(526
|
)
|
|
—
|
|
|
—
|
|
|||
Loans sold with servicing rights retained
|
399,318
|
|
|
416,277
|
|
|
264,292
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
20,698
|
|
|
$
|
19,379
|
|
|
$
|
20,983
|
|
Additions
|
11,312
|
|
|
8,027
|
|
|
4,581
|
|
|||
Amortization
|
(7,554
|
)
|
|
(6,699
|
)
|
|
(6,318
|
)
|
|||
Valuation recovery (provision)
(1)
|
10
|
|
|
(9
|
)
|
|
133
|
|
|||
Ending balance
|
$
|
24,466
|
|
|
$
|
20,698
|
|
|
$
|
19,379
|
|
(1)
|
The valuation recovery (provision) resulted in a valuation allowance balance of
$22 thousand
,
$32 thousand
, and
$23 thousand
at December 31, 2016, 2015, and 2014, respectively.
|
|
At December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Land
|
$
|
12,595
|
|
|
$
|
12,899
|
|
Buildings and improvements
|
90,778
|
|
|
94,686
|
|
||
Leasehold improvements
|
83,995
|
|
|
79,917
|
|
||
Fixtures and equipment
|
76,146
|
|
|
73,686
|
|
||
Data processing and software
|
220,002
|
|
|
195,308
|
|
||
Total premises and equipment
|
483,516
|
|
|
456,496
|
|
||
Less: Accumulated depreciation and amortization
|
(346,103
|
)
|
|
(327,070
|
)
|
||
Premises and equipment, net
|
$
|
137,413
|
|
|
$
|
129,426
|
|
|
At December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||
(In thousands)
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
||||||||||||
Community Banking, CDI
|
$
|
49,420
|
|
$
|
(49,420
|
)
|
$
|
—
|
|
|
$
|
49,420
|
|
$
|
(48,277
|
)
|
$
|
1,143
|
|
HSA Bank:
|
|
|
|
|
|
|
|
||||||||||||
CDI
|
22,000
|
|
(6,162
|
)
|
15,838
|
|
|
22,000
|
|
(3,269
|
)
|
18,731
|
|
||||||
Customer relationships
|
21,000
|
|
(3,164
|
)
|
17,836
|
|
|
21,000
|
|
(1,548
|
)
|
19,452
|
|
||||||
Total HSA Bank
|
43,000
|
|
(9,326
|
)
|
33,674
|
|
|
43,000
|
|
(4,817
|
)
|
38,183
|
|
||||||
Total other intangible assets
|
$
|
92,420
|
|
$
|
(58,746
|
)
|
$
|
33,674
|
|
|
$
|
92,420
|
|
$
|
(53,094
|
)
|
$
|
39,326
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill:
|
|
|
|
|
|
|
|
||||||||||||
Community Banking
|
$
|
516,560
|
|
|
$
|
516,560
|
|
|
$
|
516,560
|
|
|
$
|
516,560
|
|
||||
HSA Bank
|
21,813
|
|
|
21,813
|
|
|
21,813
|
|
|
21,813
|
|
||||||||
Total goodwill
|
$
|
538,373
|
|
|
$
|
538,373
|
|
|
$
|
538,373
|
|
|
$
|
538,373
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
73,194
|
|
|
$
|
97,575
|
|
|
$
|
90,542
|
|
State and local
|
5,429
|
|
|
10,970
|
|
|
6,585
|
|
|||
Total current
|
78,623
|
|
|
108,545
|
|
|
97,127
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
12,542
|
|
|
(7,279
|
)
|
|
(3,784
|
)
|
|||
State and local
|
5,158
|
|
|
(8,234
|
)
|
|
(1,370
|
)
|
|||
Total deferred
|
17,700
|
|
|
(15,513
|
)
|
|
(5,154
|
)
|
|||
|
|
|
|
|
|
||||||
Total federal
|
85,736
|
|
|
90,296
|
|
|
86,758
|
|
|||
Total state and local
|
10,587
|
|
|
2,736
|
|
|
5,215
|
|
|||
Income tax expense
|
$
|
96,323
|
|
|
$
|
93,032
|
|
|
$
|
91,973
|
|
|
Years ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|||||||||
Income tax expense at federal statutory rate
|
$
|
106,208
|
|
35.0
|
%
|
|
$
|
104,217
|
|
35.0
|
%
|
|
$
|
102,095
|
|
35.0
|
%
|
Reconciliation to reported income tax expense:
|
|
|
|
|
|
|
|
|
|||||||||
State and local income taxes, net of federal benefit
|
6,882
|
|
2.3
|
|
|
7,563
|
|
2.5
|
|
|
3,390
|
|
1.2
|
|
|||
Tax-exempt interest income, net
|
(8,917
|
)
|
(2.9
|
)
|
|
(7,117
|
)
|
(2.4
|
)
|
|
(7,335
|
)
|
(2.5
|
)
|
|||
Decrease in valuation allowance applicable to net state deferred tax assets, net of federal effects
|
—
|
|
—
|
|
|
(5,785
|
)
|
(1.9
|
)
|
|
—
|
|
—
|
|
|||
Increase in cash surrender value of life insurance
|
(5,166
|
)
|
(1.7
|
)
|
|
(4,557
|
)
|
(1.5
|
)
|
|
(4,612
|
)
|
(1.6
|
)
|
|||
Other, net
|
(2,684
|
)
|
(1.0
|
)
|
|
(1,289
|
)
|
(0.5
|
)
|
|
(1,565
|
)
|
(0.6
|
)
|
|||
Income tax expense and effective tax rate
|
$
|
96,323
|
|
31.7
|
%
|
|
$
|
93,032
|
|
31.2
|
%
|
|
$
|
91,973
|
|
31.5
|
%
|
|
At December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan and lease losses
|
$
|
77,908
|
|
|
$
|
70,937
|
|
Net operating loss and credit carry forwards
|
64,644
|
|
|
68,735
|
|
||
Compensation and employee benefit plans
|
46,433
|
|
|
52,422
|
|
||
Net losses on derivative instruments
|
8,624
|
|
|
11,734
|
|
||
Net unrealized loss on securities available for sale
|
9,898
|
|
|
4,138
|
|
||
Other
|
17,682
|
|
|
21,663
|
|
||
Gross deferred tax assets
|
225,189
|
|
|
229,629
|
|
||
Valuation allowance
|
(71,474
|
)
|
|
(74,918
|
)
|
||
Total deferred tax assets, net of valuation allowance
|
$
|
153,715
|
|
|
$
|
154,711
|
|
Deferred tax liabilities:
|
|
|
|
||||
Equipment-financing leases
|
$
|
41,910
|
|
|
$
|
23,934
|
|
Deferred income on repurchase of debt
|
4,251
|
|
|
6,376
|
|
||
Intangible assets
|
9,952
|
|
|
9,298
|
|
||
Mortgage servicing assets
|
7,313
|
|
|
7,127
|
|
||
Other
|
5,898
|
|
|
6,398
|
|
||
Gross deferred tax liabilities
|
69,324
|
|
|
53,133
|
|
||
Deferred tax assets, net
|
$
|
84,391
|
|
|
$
|
101,578
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
5,094
|
|
|
$
|
4,593
|
|
|
$
|
3,109
|
|
Additions as a result of tax positions taken during the current year
|
613
|
|
|
865
|
|
|
956
|
|
|||
Additions as a result of tax positions taken during prior years
|
—
|
|
|
1,254
|
|
|
1,031
|
|
|||
Reductions as a result of tax positions taken during prior years
|
(625
|
)
|
|
(247
|
)
|
|
—
|
|
|||
Reductions relating to settlements with taxing authorities
|
(693
|
)
|
|
(992
|
)
|
|
—
|
|
|||
Reductions as a result of lapse of statute of limitations
|
(542
|
)
|
|
(379
|
)
|
|
(503
|
)
|
|||
Ending balance
|
$
|
3,847
|
|
|
$
|
5,094
|
|
|
$
|
4,593
|
|
|
At December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Non-interest-bearing:
|
|
|
|
||||
Demand
|
$
|
4,021,061
|
|
|
$
|
3,713,063
|
|
Interest-bearing:
|
|
|
|
||||
Checking
|
2,528,274
|
|
|
2,369,971
|
|
||
Health savings accounts
|
4,362,503
|
|
|
3,802,313
|
|
||
Money market
|
2,047,121
|
|
|
1,933,460
|
|
||
Savings
|
4,320,090
|
|
|
4,047,817
|
|
||
Time deposits
|
2,024,808
|
|
|
2,086,154
|
|
||
Total interest-bearing
|
15,282,796
|
|
|
14,239,715
|
|
||
Total deposits
|
$
|
19,303,857
|
|
|
$
|
17,952,778
|
|
|
|
|
|
||||
Time deposits and interest-bearing checking, included in above balances, obtained through brokers
|
$
|
848,618
|
|
|
$
|
910,304
|
|
Time deposits, included in above balance, that meet or exceed the FDIC limit
|
490,721
|
|
|
542,206
|
|
||
Demand deposit overdrafts reclassified as loan balances
|
1,885
|
|
|
1,356
|
|
(In thousands)
|
At December 31, 2016
|
||
2017
|
$
|
846,160
|
|
2018
|
409,785
|
|
|
2019
|
482,977
|
|
|
2020
|
181,197
|
|
|
2021
|
104,578
|
|
|
Thereafter
|
111
|
|
|
Total time deposits
|
$
|
2,024,808
|
|
|
At December 31,
|
||||||||
(In thousands)
|
2016
|
|
2015
|
||||||
|
Total Outstanding
|
Rate
|
|
Total Outstanding
|
Rate
|
||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
||||
Original maturity of one year or less
|
$
|
340,526
|
|
0.16
|
|
$
|
334,400
|
|
0.15
|
Original maturity of greater than one year, non-callable
|
400,000
|
|
3.09
|
|
500,000
|
|
3.04
|
||
Total securities sold under agreements to repurchase
|
740,526
|
|
1.82
|
|
834,400
|
|
1.93
|
||
Fed funds purchased
|
209,000
|
|
0.46
|
|
317,000
|
|
0.21
|
||
Securities sold under agreements to repurchase and other borrowings
|
$
|
949,526
|
|
1.53
|
|
$
|
1,151,400
|
|
1.47
|
|
At December 31,
|
||||||||||
|
2016
|
|
2015
|
||||||||
(Dollars in thousands)
|
Total
Outstanding
|
Weighted-
Average Contractual Coupon Rate
|
|
Total
Outstanding
|
Weighted-
Average Contractual Coupon Rate
|
||||||
Maturing within 1 year
|
$
|
2,130,500
|
|
0.71
|
%
|
|
$
|
2,025,934
|
|
0.55
|
%
|
After 1 but within 2 years
|
200,000
|
|
1.36
|
|
|
500
|
|
5.66
|
|
||
After 2 but within 3 years
|
128,026
|
|
1.73
|
|
|
200,000
|
|
1.36
|
|
||
After 3 but within 4 years
|
175,000
|
|
1.77
|
|
|
103,026
|
|
1.54
|
|
||
After 4 but within 5 years
|
200,000
|
|
1.81
|
|
|
175,000
|
|
1.77
|
|
||
After 5 years
|
9,370
|
|
2.59
|
|
|
159,655
|
|
1.60
|
|
||
|
2,842,896
|
|
0.95
|
|
|
2,664,115
|
|
0.79
|
|
||
Premiums on advances
|
12
|
|
|
|
24
|
|
|
||||
Federal Home Loan Bank advances
|
$
|
2,842,908
|
|
|
|
$
|
2,664,139
|
|
|
||
|
|
|
|
|
|
||||||
Aggregate carrying value of assets pledged as collateral
|
$
|
5,967,318
|
|
|
|
$
|
5,719,746
|
|
|
||
Remaining borrowing capacity
|
$
|
1,192,758
|
|
|
|
$
|
1,203,057
|
|
|
|
At December 31,
|
|||||||
(Dollars in thousands)
|
2016
|
|
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
|
(845
|
)
|
|
(964
|
)
|
|||
Debt issuance cost on senior fixed-rate notes
(2)
|
(961
|
)
|
|
(1,096
|
)
|
|||
Long-term debt
|
$
|
225,514
|
|
|
$
|
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
3.94%
at
December 31, 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 Consolidated Balance Sheets.
|
|
Preferred Stock Series E
|
Common Stock Issued
|
Treasury Stock Held
|
Common Stock Outstanding
|
||||
Balance at January 1, 2016
|
5,060
|
|
93,651,601
|
|
2,090,409
|
|
91,561,192
|
|
Restricted share activity
|
—
|
|
—
|
|
(248,603
|
)
|
248,603
|
|
Stock options exercised
|
—
|
|
—
|
|
(292,304
|
)
|
292,304
|
|
Common stock repurchased
|
—
|
|
—
|
|
350,000
|
|
(350,000
|
)
|
Balance at December 31, 2016
|
5,060
|
|
93,651,601
|
|
1,899,502
|
|
91,752,099
|
|
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||
Balance at December 31, 2013
|
$
|
(2,617
|
)
|
$
|
(18,206
|
)
|
$
|
(27,726
|
)
|
$
|
(48,549
|
)
|
Other comprehensive income (loss) before reclassifications
|
21,811
|
|
(12,506
|
)
|
(21,329
|
)
|
(12,024
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(2,773
|
)
|
5,182
|
|
1,903
|
|
4,312
|
|
||||
Net current-period other comprehensive income (loss), net of tax
|
19,038
|
|
(7,324
|
)
|
(19,426
|
)
|
(7,712
|
)
|
||||
Balance at December 31, 2014
|
16,421
|
|
(25,530
|
)
|
(47,152
|
)
|
(56,261
|
)
|
||||
Other comprehensive (loss) income before reclassifications
|
(22,512
|
)
|
(3,136
|
)
|
(5,500
|
)
|
(31,148
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(316
|
)
|
5,686
|
|
3,933
|
|
9,303
|
|
||||
Net current-period other comprehensive (loss) income, net of tax
|
(22,828
|
)
|
2,550
|
|
(1,567
|
)
|
(21,845
|
)
|
||||
Balance at December 31, 2015
|
(6,407
|
)
|
(22,980
|
)
|
(48,719
|
)
|
(78,106
|
)
|
||||
Other comprehensive (loss) income before reclassifications
|
(8,901
|
)
|
825
|
|
(232
|
)
|
(8,308
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(168
|
)
|
5,087
|
|
4,502
|
|
9,421
|
|
||||
Net current-period other comprehensive (loss) income, net of tax
|
(9,069
|
)
|
5,912
|
|
4,270
|
|
1,113
|
|
||||
Balance at December 31, 2016
|
$
|
(15,476
|
)
|
$
|
(17,068
|
)
|
$
|
(44,449
|
)
|
$
|
(76,993
|
)
|
|
Years ended December 31,
|
|
||||||||||
Accumulated Other Comprehensive Loss Components
|
2016
|
|
2015
|
|
2014
|
Associated Line Item in the Consolidated Statements Of Income
|
||||||
(In thousands)
|
|
|
|
|
|
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
|
|
|
||||||
Unrealized gains on investments
|
$
|
414
|
|
|
$
|
609
|
|
|
$
|
5,499
|
|
Gain on sale of investment securities, net
|
Unrealized losses on investments
|
(149
|
)
|
|
(110
|
)
|
|
(1,145
|
)
|
Impairment loss recognized in earnings
|
|||
Total before tax
|
265
|
|
|
499
|
|
|
4,354
|
|
|
|||
Tax expense
|
(97
|
)
|
|
(183
|
)
|
|
(1,581
|
)
|
Income tax expense
|
|||
Net of tax
|
$
|
168
|
|
|
$
|
316
|
|
|
$
|
2,773
|
|
|
Derivative instruments:
|
|
|
|
|
|
|
||||||
Cash flow hedges
|
$
|
(8,020
|
)
|
|
$
|
(8,965
|
)
|
|
$
|
(8,100
|
)
|
Total interest expense
|
Tax benefit
|
2,933
|
|
|
3,279
|
|
|
2,918
|
|
Income tax expense
|
|||
Net of tax
|
$
|
(5,087
|
)
|
|
$
|
(5,686
|
)
|
|
$
|
(5,182
|
)
|
|
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
|
|
|
||||||
Amortization of net loss
|
$
|
(7,126
|
)
|
|
$
|
(6,161
|
)
|
|
$
|
(2,921
|
)
|
(1)
|
Prior service costs
|
(14
|
)
|
|
(73
|
)
|
|
(73
|
)
|
(1)
|
|||
Total before tax
|
(7,140
|
)
|
|
(6,234
|
)
|
|
(2,994
|
)
|
|
|||
Tax benefit
|
2,638
|
|
|
2,301
|
|
|
1,091
|
|
Income tax expense
|
|||
Net of tax
|
$
|
(4,502
|
)
|
|
$
|
(3,933
|
)
|
|
$
|
(1,903
|
)
|
|
|
Year ended December 31, 2016
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized loss during the period
|
$
|
(14,113
|
)
|
$
|
5,212
|
|
$
|
(8,901
|
)
|
Reclassification for net gain included in net income
|
(414
|
)
|
152
|
|
(262
|
)
|
|||
Net non-credit other-than-temporary impairment
|
149
|
|
(55
|
)
|
94
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
—
|
|
—
|
|
—
|
|
|||
Total available-for-sale and transferred securities
|
(14,378
|
)
|
5,309
|
|
(9,069
|
)
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized gain during the period
|
1,331
|
|
(506
|
)
|
825
|
|
|||
Reclassification adjustment for net loss included in net income
|
8,020
|
|
(2,933
|
)
|
5,087
|
|
|||
Total derivative instruments
|
9,351
|
|
(3,439
|
)
|
5,912
|
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
(368
|
)
|
136
|
|
(232
|
)
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
7,126
|
|
(2,633
|
)
|
4,493
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
14
|
|
(5
|
)
|
9
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
6,772
|
|
(2,502
|
)
|
4,270
|
|
|||
Other comprehensive income, net of tax
|
$
|
1,745
|
|
$
|
(632
|
)
|
$
|
1,113
|
|
|
Year ended December 31, 2015
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized loss during the period
|
$
|
(35,701
|
)
|
$
|
13,166
|
|
$
|
(22,535
|
)
|
Reclassification for net gain included in net income
|
(609
|
)
|
223
|
|
(386
|
)
|
|||
Net non-credit other-than-temporary impairment
|
110
|
|
(40
|
)
|
70
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
37
|
|
(14
|
)
|
23
|
|
|||
Total available-for-sale and transferred securities
|
(36,163
|
)
|
13,335
|
|
(22,828
|
)
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized loss during the period
|
(4,945
|
)
|
1,809
|
|
(3,136
|
)
|
|||
Reclassification adjustment for net loss included in net income
|
8,965
|
|
(3,279
|
)
|
5,686
|
|
|||
Total derivative instruments
|
4,020
|
|
(1,470
|
)
|
2,550
|
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
(8,719
|
)
|
3,219
|
|
(5,500
|
)
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
6,161
|
|
(2,274
|
)
|
3,887
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
73
|
|
(27
|
)
|
46
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
(2,485
|
)
|
918
|
|
(1,567
|
)
|
|||
Other comprehensive loss, net of tax
|
$
|
(34,628
|
)
|
$
|
12,783
|
|
$
|
(21,845
|
)
|
|
Year ended December 31, 2014
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized gain during the period
|
$
|
34,242
|
|
$
|
(12,469
|
)
|
$
|
21,773
|
|
Reclassification for net gain included in net income
|
(5,499
|
)
|
1,999
|
|
(3,500
|
)
|
|||
Net non-credit other-than-temporary impairment
|
1,145
|
|
(418
|
)
|
727
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
60
|
|
(22
|
)
|
38
|
|
|||
Total available-for-sale and transferred securities
|
29,948
|
|
(10,910
|
)
|
19,038
|
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized loss during the period
|
(19,589
|
)
|
7,083
|
|
(12,506
|
)
|
|||
Reclassification adjustment for net loss included in net income
|
8,100
|
|
(2,918
|
)
|
5,182
|
|
|||
Total derivative instruments
|
(11,489
|
)
|
4,165
|
|
(7,324
|
)
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
(33,567
|
)
|
12,238
|
|
(21,329
|
)
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
2,921
|
|
(1,065
|
)
|
1,856
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
73
|
|
(26
|
)
|
47
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
(30,573
|
)
|
11,147
|
|
(19,426
|
)
|
|||
Other comprehensive loss, net of tax
|
$
|
(12,114
|
)
|
$
|
4,402
|
|
$
|
(7,712
|
)
|
|
Actual
|
|
Capital Requirements
|
||||||||||||||
|
|
Minimum
|
|
Well Capitalized
|
|||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
At December 31, 2016
|
|
|
|
|
|
|
|
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,932,171
|
|
10.5
|
%
|
|
$
|
826,504
|
|
4.5
|
%
|
|
$
|
1,193,840
|
|
6.5
|
%
|
Total risk-based capital
|
2,328,808
|
|
12.7
|
|
|
1,469,341
|
|
8.0
|
|
|
1,836,677
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
2,054,881
|
|
11.2
|
|
|
1,102,006
|
|
6.0
|
|
|
1,469,341
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
2,054,881
|
|
8.1
|
|
|
1,010,857
|
|
4.0
|
|
|
1,263,571
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,945,332
|
|
10.6
|
%
|
|
$
|
825,228
|
|
4.5
|
%
|
|
$
|
1,191,995
|
|
6.5
|
%
|
Total risk-based capital
|
2,141,939
|
|
11.7
|
|
|
1,467,071
|
|
8.0
|
|
|
1,833,839
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,945,332
|
|
10.6
|
|
|
1,100,304
|
|
6.0
|
|
|
1,467,071
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,945,332
|
|
7.7
|
|
|
1,010,005
|
|
4.0
|
|
|
1,262,507
|
|
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
|
2,201,245
|
|
12.9
|
|
|
1,363,286
|
|
8.0
|
|
|
1,704,107
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,966,146
|
|
11.5
|
|
|
1,022,464
|
|
6.0
|
|
|
1,363,286
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,966,146
|
|
8.2
|
|
|
954,369
|
|
4.0
|
|
|
1,192,962
|
|
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
|
|
|
Years ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2016
|
|
2015
|
|
2014
|
||||||
Earnings for basic and diluted earnings per common share:
|
|
|
|
|
|
||||||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Less: Preferred stock dividends
|
8,096
|
|
|
8,711
|
|
|
10,556
|
|
|||
Net income available to common shareholders
|
199,031
|
|
|
196,018
|
|
|
189,170
|
|
|||
Less: Earnings applicable to participating securities
|
608
|
|
|
657
|
|
|
674
|
|
|||
Earnings applicable to common shareholders
|
$
|
198,423
|
|
|
$
|
195,361
|
|
|
$
|
188,496
|
|
Shares:
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding - basic
|
91,367
|
|
|
90,968
|
|
|
89,899
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock
|
461
|
|
|
524
|
|
|
466
|
|
|||
Warrants
|
28
|
|
|
41
|
|
|
255
|
|
|||
Weighted-average common shares outstanding - diluted
|
91,856
|
|
|
91,533
|
|
|
90,620
|
|
|||
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.17
|
|
|
$
|
2.15
|
|
|
$
|
2.10
|
|
Diluted
|
2.16
|
|
|
2.13
|
|
|
2.08
|
|
|
Years ended December 31,
|
|||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
|||
Stock options (shares with exercise price greater than market price)
|
41
|
|
|
213
|
|
|
587
|
|
Restricted stock (due to performance conditions on non-participating shares)
|
125
|
|
|
92
|
|
|
171
|
|
|
At December 31, 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
|
$
|
225,000
|
|
$
|
3,270
|
|
|
$
|
100,000
|
|
$
|
792
|
|
|
$
|
200,000
|
|
$
|
2,507
|
|
|
$
|
100,000
|
|
$
|
1,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Positions subject to a master netting agreement
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
1,943,485
|
|
32,226
|
|
|
1,242,937
|
|
24,388
|
|
|
989,695
|
|
2,255
|
|
|
1,543,479
|
|
40,302
|
|
||||||||
Other
|
10,634
|
|
231
|
|
|
14,265
|
|
120
|
|
|
8,237
|
|
183
|
|
|
4,561
|
|
66
|
|
||||||||
Positions not subject to a master netting agreement
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
1,734,679
|
|
38,668
|
|
|
1,451,762
|
|
19,001
|
|
|
2,050,460
|
|
58,304
|
|
|
482,738
|
|
571
|
|
||||||||
RPAs
|
86,037
|
|
139
|
|
|
87,273
|
|
166
|
|
|
41,798
|
|
153
|
|
|
92,985
|
|
245
|
|
||||||||
Mortgage banking derivatives
(3)
|
103,440
|
|
3,084
|
|
|
59,895
|
|
711
|
|
|
62,514
|
|
819
|
|
|
—
|
|
—
|
|
||||||||
Other
|
1,438
|
|
19
|
|
|
181
|
|
11
|
|
|
—
|
|
—
|
|
|
60
|
|
9
|
|
||||||||
Total not designated as hedging instruments
|
3,879,713
|
|
74,367
|
|
|
2,856,313
|
|
44,397
|
|
|
3,152,704
|
|
61,714
|
|
|
2,123,823
|
|
41,193
|
|
||||||||
Gross derivative instruments, before netting
|
$
|
4,104,713
|
|
77,637
|
|
|
$
|
2,956,313
|
|
45,189
|
|
|
$
|
3,352,704
|
|
64,221
|
|
|
$
|
2,223,823
|
|
42,552
|
|
||||
Less: Legally enforceable master netting agreements
|
|
24,253
|
|
|
|
24,253
|
|
|
|
4,945
|
|
|
|
4,945
|
|
||||||||||||
Less: Cash collateral posted
|
|
11,475
|
|
|
|
600
|
|
|
|
—
|
|
|
|
31,330
|
|
||||||||||||
Total derivative instruments, after netting
|
|
$
|
41,909
|
|
|
|
$
|
20,336
|
|
|
|
$
|
59,276
|
|
|
|
$
|
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 Consolidated Balance Sheets.
|
(3)
|
Notional amounts include mandatory forward commitments of
$99.0 million
, while notional amounts do not include approved floating rate commitments of
$27.8 million
, at
December 31, 2016
.
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Interest rate derivatives
|
$
|
8,668
|
|
|
$
|
4,361
|
|
|
$
|
4,482
|
|
RPA
|
(361
|
)
|
|
(33
|
)
|
|
51
|
|
|||
Mortgage banking derivatives
|
1,553
|
|
|
801
|
|
|
(522
|
)
|
|||
Other
|
(67
|
)
|
|
(63
|
)
|
|
(253
|
)
|
|||
Total impact on other non-interest income
|
$
|
9,793
|
|
|
$
|
5,066
|
|
|
$
|
3,758
|
|
|
At December 31, 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
|
$
|
3,270
|
|
$
|
(3,270
|
)
|
$
|
—
|
|
|
$
|
2,507
|
|
$
|
(2,507
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
32,457
|
|
(32,457
|
)
|
—
|
|
|
2,438
|
|
(2,438
|
)
|
—
|
|
||||||
Total
|
$
|
35,727
|
|
$
|
(35,727
|
)
|
$
|
—
|
|
|
$
|
4,945
|
|
$
|
(4,945
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instrument liabilities
|
|
|
|
|
|
|
|
||||||||||||
Hedged Accounting Positions
|
$
|
792
|
|
$
|
(792
|
)
|
$
|
—
|
|
|
$
|
1,359
|
|
$
|
(1,359
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
24,508
|
|
(24,062
|
)
|
446
|
|
|
40,368
|
|
(34,916
|
)
|
5,452
|
|
||||||
Total
|
$
|
25,300
|
|
$
|
(24,854
|
)
|
$
|
446
|
|
|
$
|
41,727
|
|
$
|
(36,275
|
)
|
$
|
5,452
|
|
(1)
|
Net amount is net of
$10.9 million
and
$31.3 million
of cash collateral at
December 31, 2016
and
December 31, 2015
, respectively, as presented in the accompanying Consolidated Balance Sheets.
|
(2)
|
Net amount excludes
$42.5 million
and
$20.2 million
of initial margin requirements posted at the derivative clearing organization at
December 31, 2016
and
December 31, 2015
, respectively. Initial margin is recorded as a component of accrued interest receivable and other assets in the accompanying Consolidated Balance Sheets
|
•
|
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 December 31, 2016
|
|||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Financial assets held at fair value:
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
Agency CMO
|
—
|
|
419,706
|
|
—
|
|
419,706
|
|
||||
Agency MBS
|
—
|
|
954,349
|
|
—
|
|
954,349
|
|
||||
Agency CMBS
|
—
|
|
573,272
|
|
—
|
|
573,272
|
|
||||
CMBS
|
—
|
|
477,365
|
|
—
|
|
477,365
|
|
||||
CLO
|
—
|
|
427,390
|
|
—
|
|
427,390
|
|
||||
Single issuer trust preferred securities
|
—
|
|
28,633
|
|
—
|
|
28,633
|
|
||||
Corporate debt securities
|
—
|
|
109,642
|
|
—
|
|
109,642
|
|
||||
Equities - financial services
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total available-for-sale investment securities
|
734
|
|
2,990,357
|
|
—
|
|
2,991,091
|
|
||||
Gross derivative instruments, before netting
(1)
|
250
|
|
77,387
|
|
—
|
|
77,637
|
|
||||
Investments held in Rabbi Trust
|
5,119
|
|
—
|
|
—
|
|
5,119
|
|
||||
Alternative investments
|
—
|
|
—
|
|
5,502
|
|
5,502
|
|
||||
Originated loans held for sale
(2)
|
—
|
|
60,260
|
|
—
|
|
60,260
|
|
||||
Contingent consideration
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total financial assets held at fair value
|
$
|
6,103
|
|
$
|
3,128,004
|
|
$
|
5,502
|
|
$
|
3,139,609
|
|
Financial liabilities held at fair value:
|
|
|
|
|
||||||||
Gross derivative instruments, before netting
(1)
|
$
|
120
|
|
$
|
45,069
|
|
$
|
—
|
|
$
|
45,189
|
|
Contingent liability
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total financial liabilities held at fair value
|
$
|
120
|
|
$
|
45,069
|
|
$
|
—
|
|
$
|
45,189
|
|
|
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
|
|
64,038
|
|
—
|
|
64,221
|
|
||||
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
|
|
Contingent liability
|
—
|
|
—
|
|
6,000
|
|
6,000
|
|
||||
Total financial liabilities held at fair value
|
$
|
66
|
|
$
|
42,486
|
|
$
|
6,000
|
|
$
|
48,552
|
|
(1)
|
For information relating to the impact of netting derivative assets and derivative liabilities as well as the impact from offsetting cash collateral paid to the same derivative counterparties see
Note 15:
Derivative Financial Instruments
.
|
(2)
|
Loans held for sale accounted for under the fair value option of
ASC Topic 825
"Financial Instruments" at
December 31, 2016
. The Company made this policy election on loans originated for sale. See
Note 1:
Summary of Significant Accounting Policies
.
|
|
Financial Assets
|
|
|
||||||||||
(In thousands)
|
Alternative Investments
|
Contingent Consideration
|
Total
|
|
Contingent Liability
|
||||||||
Balance at January 1, 2016
|
$
|
3,471
|
|
$
|
5,331
|
|
$
|
8,802
|
|
|
$
|
6,000
|
|
Gain included in net income
|
349
|
|
2,690
|
|
3,039
|
|
|
—
|
|
||||
Purchases/capital funding
|
1,682
|
|
—
|
|
1,682
|
|
|
—
|
|
||||
Receipts
|
—
|
|
(8,021
|
)
|
(8,021
|
)
|
|
—
|
|
||||
Payments
|
—
|
|
—
|
|
—
|
|
|
(6,000
|
)
|
||||
Balance at December 31, 2016
|
$
|
5,502
|
|
$
|
—
|
|
$
|
5,502
|
|
|
$
|
—
|
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Beginning balance
|
$
|
33,568
|
|
|
$
|
28,690
|
|
Originations of servicing assets
|
11,312
|
|
|
8,027
|
|
||
Changes in fair value:
|
|
|
|
||||
Due to payoffs/paydowns
|
(2,447
|
)
|
|
(2,741
|
)
|
||
Due to market changes
|
9,642
|
|
|
(408
|
)
|
||
Ending balance
|
$
|
52,075
|
|
|
$
|
33,568
|
|
|
At December 31,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
(In thousands)
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value |
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity investment securities
|
$
|
4,160,658
|
|
|
$
|
4,125,125
|
|
|
$
|
3,923,052
|
|
|
$
|
3,961,534
|
|
Loans held for sale
(1)
|
7,317
|
|
|
7,444
|
|
|
37,091
|
|
|
37,457
|
|
||||
Level 3
|
|
|
|
|
|
|
|
||||||||
Loans and leases, net
|
16,832,268
|
|
|
16,678,106
|
|
|
15,496,745
|
|
|
15,453,892
|
|
||||
Mortgage servicing assets
|
24,466
|
|
|
52,075
|
|
|
20,698
|
|
|
33,568
|
|
||||
Alternative investments
|
11,034
|
|
|
13,189
|
|
|
12,900
|
|
|
14,294
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Deposit liabilities, other than time deposits
|
$
|
17,279,049
|
|
|
$
|
17,279,049
|
|
|
$
|
15,866,624
|
|
|
$
|
15,866,624
|
|
Time deposits
|
2,024,808
|
|
|
2,024,395
|
|
|
2,086,154
|
|
|
2,095,357
|
|
||||
Securities sold under agreements to repurchase and other borrowings
|
949,526
|
|
|
955,660
|
|
|
1,151,400
|
|
|
1,163,974
|
|
||||
FHLB advances
(2)
|
2,842,908
|
|
|
2,825,101
|
|
|
2,664,139
|
|
|
2,647,872
|
|
||||
Long-term debt
(2)
|
225,514
|
|
|
225,514
|
|
|
225,260
|
|
|
218,143
|
|
(1)
|
Loans held for sale that are accounted for at the lower of cost or market. At
December 31, 2016
, the amounts include transferred residential and commercial loans not originated for sale, and at
December 31, 2015
, the amounts include transferred commercial loans not originated for sale and residential loans originated for sale prior to the adoption of the fair value option of
ASC Topic 825
"Financial Instruments."
|
(2)
|
The following adjustments to the carrying amount are not included for determination of fair value, see
Note 10:
Borrowings
:
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
||||||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
203,645
|
|
$
|
210,548
|
|
|
$
|
10,518
|
|
$
|
10,041
|
|
|
$
|
3,853
|
|
$
|
4,133
|
|
Service cost
|
45
|
|
45
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Interest cost
|
8,441
|
|
8,008
|
|
|
389
|
|
345
|
|
|
125
|
|
123
|
|
||||||
Actuarial loss (gain)
|
6,108
|
|
(8,588
|
)
|
|
1,023
|
|
373
|
|
|
59
|
|
(178
|
)
|
||||||
Benefits paid and administrative expenses
|
(6,731
|
)
|
(6,368
|
)
|
|
(124
|
)
|
(241
|
)
|
|
(185
|
)
|
(225
|
)
|
||||||
Ending balance
|
211,508
|
|
203,645
|
|
|
11,806
|
|
10,518
|
|
|
3,852
|
|
3,853
|
|
||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
161,369
|
|
172,976
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Actual return on plan assets
|
18,284
|
|
(5,239
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Employer contributions
|
20,000
|
|
—
|
|
|
124
|
|
241
|
|
|
185
|
|
225
|
|
||||||
Benefits paid and administrative expenses
|
(6,731
|
)
|
(6,368
|
)
|
|
(124
|
)
|
(241
|
)
|
|
(185
|
)
|
(225
|
)
|
||||||
Ending balance
|
192,922
|
|
161,369
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Funded status of the plan at year end
|
$
|
(18,586
|
)
|
$
|
(42,276
|
)
|
|
$
|
(11,806
|
)
|
$
|
(10,518
|
)
|
|
$
|
(3,852
|
)
|
$
|
(3,853
|
)
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
||||||||||||
Accrued expenses and other liabilities
|
$
|
(18,586
|
)
|
$
|
(42,276
|
)
|
|
$
|
(11,806
|
)
|
$
|
(10,518
|
)
|
|
$
|
(3,852
|
)
|
$
|
(3,853
|
)
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
||||||||||||
Net actuarial loss
|
$
|
65,857
|
|
$
|
73,238
|
|
|
$
|
3,009
|
|
$
|
2,412
|
|
|
$
|
616
|
|
$
|
591
|
|
Prior service cost
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
14
|
|
||||||
Total pre-tax amounts included in AOCL
|
65,857
|
|
73,238
|
|
|
3,009
|
|
2,412
|
|
|
616
|
|
605
|
|
||||||
Deferred tax benefit
|
23,727
|
|
26,447
|
|
|
1,084
|
|
871
|
|
|
222
|
|
218
|
|
||||||
Amounts included in accumulated AOCL, net of tax
|
$
|
42,130
|
|
$
|
46,791
|
|
|
$
|
1,925
|
|
$
|
1,541
|
|
|
$
|
394
|
|
$
|
387
|
|
(In thousands)
|
Pension Plan
|
SERP
|
Other
Benefits
|
||||||
2017
|
$
|
7,786
|
|
$
|
1,208
|
|
$
|
404
|
|
2018
|
8,604
|
|
1,091
|
|
398
|
|
|||
2019
|
8,654
|
|
8,104
|
|
387
|
|
|||
2020
|
9,072
|
|
141
|
|
375
|
|
|||
2021
|
9,828
|
|
140
|
|
358
|
|
|||
2022-2026
|
53,711
|
|
683
|
|
1,457
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
||||||||||||||||||||||||
(In thousands)
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
||||||||||||||||||
Service cost
|
$
|
45
|
|
$
|
45
|
|
$
|
40
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
8,441
|
|
8,008
|
|
8,068
|
|
|
389
|
|
345
|
|
364
|
|
|
125
|
|
123
|
|
139
|
|
|||||||||
Expected return on plan assets
|
(11,461
|
)
|
(11,873
|
)
|
(11,495
|
)
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
14
|
|
73
|
|
73
|
|
|||||||||
Recognized net loss
|
6,665
|
|
5,724
|
|
2,781
|
|
|
426
|
|
390
|
|
135
|
|
|
35
|
|
47
|
|
5
|
|
|||||||||
Net periodic benefit cost (benefit)
|
$
|
3,690
|
|
$
|
1,904
|
|
$
|
(606
|
)
|
|
$
|
815
|
|
$
|
735
|
|
$
|
499
|
|
|
$
|
174
|
|
$
|
243
|
|
$
|
217
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
||||||||||||||||||||||||
(In thousands)
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
||||||||||||||||||
Net (gain) loss
|
$
|
(715
|
)
|
$
|
8,525
|
|
$
|
31,951
|
|
|
$
|
1,023
|
|
$
|
372
|
|
$
|
1,145
|
|
|
$
|
60
|
|
$
|
(178
|
)
|
$
|
470
|
|
Amounts reclassified from AOCL
|
(6,665
|
)
|
(5,724
|
)
|
(2,781
|
)
|
|
(426
|
)
|
(390
|
)
|
(134
|
)
|
|
(35
|
)
|
(47
|
)
|
(5
|
)
|
|||||||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
(14
|
)
|
(73
|
)
|
(73
|
)
|
|||||||||
Total (gain) loss recognized in OCI
|
$
|
(7,380
|
)
|
$
|
2,801
|
|
$
|
29,170
|
|
|
$
|
597
|
|
$
|
(18
|
)
|
$
|
1,011
|
|
|
$
|
11
|
|
$
|
(298
|
)
|
$
|
392
|
|
|
At December 31,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Registered investment companies:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Exchange traded funds
|
$
|
31,526
|
|
$
|
—
|
|
$
|
—
|
|
$
|
31,526
|
|
|
$
|
28,329
|
|
$
|
—
|
|
$
|
—
|
|
$
|
28,329
|
|
Cash and cash equivalents
|
701
|
|
—
|
|
—
|
|
701
|
|
|
295
|
|
—
|
|
—
|
|
295
|
|
||||||||
Common collective trust funds:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed Income funds
|
—
|
|
96,429
|
|
—
|
|
96,429
|
|
|
—
|
|
80,783
|
|
—
|
|
80,783
|
|
||||||||
Equity Funds
|
—
|
|
63,285
|
|
—
|
|
63,285
|
|
|
—
|
|
51,028
|
|
—
|
|
51,028
|
|
||||||||
Insurance company investment contract
|
—
|
|
—
|
|
793
|
|
793
|
|
|
—
|
|
—
|
|
934
|
|
934
|
|
||||||||
Total
|
$
|
32,227
|
|
$
|
159,714
|
|
$
|
793
|
|
$
|
192,734
|
|
|
$
|
28,624
|
|
$
|
131,811
|
|
$
|
934
|
|
$
|
161,369
|
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Beginning balance
|
$
|
934
|
|
|
$
|
1,077
|
|
Unrealized gains relating to instruments still held at the reporting date
|
(10
|
)
|
|
(28
|
)
|
||
Benefit payments, administrative expenses, and interest income, net
|
(131
|
)
|
|
(115
|
)
|
||
Ending balance
|
$
|
793
|
|
|
$
|
934
|
|
|
Target Allocation
|
|
Percentage of Pension Plan assets
|
|||||
|
2017
|
|
2016
|
|
2015
|
|||
Fixed income investments
|
50
|
%
|
|
51
|
%
|
|
51
|
%
|
Equity investments
|
50
|
|
|
49
|
|
|
49
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
||||||
Discount rate
|
4.01
|
%
|
4.20
|
%
|
|
3.63
|
%
|
3.75
|
%
|
|
3.27
|
%
|
3.35
|
%
|
Rate of compensation increase
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
2014
|
|||||||||
Discount rate
|
4.20
|
%
|
3.85
|
%
|
4.80
|
%
|
|
3.75
|
%
|
3.50
|
%
|
4.25
|
%
|
|
3.35
|
%
|
3.15
|
%
|
3.75
|
%
|
Expected long-term return on assets
|
7.00
|
%
|
7.00
|
%
|
7.25
|
%
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Rate of compensation increase
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Assumed healthcare cost trend
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
8.25
|
%
|
8.00
|
%
|
8.00
|
%
|
(Dollars in thousands)
|
|
|
|
|
|
Contributions by Webster Bank for the year ended December 31,
|
|
Funded Status of the Plan at December 31,
|
|||
Plan Name
|
|
Employer Identification Number
|
|
Plan Number
|
|
2016
|
2015
|
2014
|
|
2016
|
2015
|
Pentegra Defined Benefit Plan for Financial Institutions
|
|
13-5645888
|
|
333
|
|
$690
|
$340
|
$765
|
|
At least 80 percent
|
At least 80 percent
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Stock options
|
$
|
43
|
|
|
$
|
379
|
|
|
$
|
1,175
|
|
Restricted stock
|
11,395
|
|
|
10,556
|
|
|
9,048
|
|
|||
Total stock compensation expense
|
$
|
11,438
|
|
|
$
|
10,935
|
|
|
$
|
10,223
|
|
|
|
|
|
|
|
||||||
Income tax benefit
|
$
|
4,132
|
|
|
$
|
3,903
|
|
|
$
|
3,553
|
|
|
Unvested Restricted Stock Awards
|
|
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
|
||||||||||||
Balance at January 1, 2016
|
236,145
|
|
$
|
32.58
|
|
|
2,088
|
|
$
|
34.45
|
|
|
115,721
|
|
$
|
34.14
|
|
|
1,527,074
|
|
$
|
23.92
|
|
Granted
|
248,418
|
|
33.52
|
|
|
12,946
|
|
32.89
|
|
|
150,392
|
|
32.75
|
|
|
—
|
|
—
|
|
||||
Exercised options
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
412,538
|
|
28.47
|
|
||||
Vested restricted stock awards
(1)
|
216,933
|
|
30.21
|
|
|
12,876
|
|
33.23
|
|
|
140,531
|
|
33.12
|
|
|
—
|
|
—
|
|
||||
Forfeited
|
14,269
|
|
32.89
|
|
|
—
|
|
—
|
|
|
9,398
|
|
33.63
|
|
|
41,562
|
|
47.92
|
|
||||
Balance at December 31, 2016
|
253,361
|
|
$
|
32.24
|
|
|
2,158
|
|
$
|
32.89
|
|
|
116,184
|
|
$
|
33.62
|
|
|
1,072,974
|
|
$
|
21.24
|
|
(1)
|
Vested for purposes of recording compensation expense.
|
Range of Exercise Prices
|
Number of Shares
|
Weighted-Average Remaining Contractual Life (years)
|
Weighted-Average Exercise Price
|
|||
$ 5.14 - 20.00
|
317,814
|
|
2.2
|
$
|
8.95
|
|
$ 20.01 - 30.00
|
562,040
|
|
5.2
|
23.53
|
|
|
$ 30.01 - 40.00
|
151,715
|
|
1.0
|
32.03
|
|
|
$ 40.01 - 48.88
|
41,405
|
|
0.4
|
44.91
|
|
|
|
1,072,974
|
|
3.5
|
$
|
21.24
|
|
|
Year ended December 31, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Net interest income (loss)
|
$
|
276,246
|
|
$
|
365,151
|
|
$
|
81,451
|
|
$
|
11,350
|
|
$
|
(15,685
|
)
|
$
|
718,513
|
|
Provision (benefit) for loan and lease losses
|
36,594
|
|
21,690
|
|
—
|
|
861
|
|
(2,795
|
)
|
56,350
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
239,652
|
|
343,461
|
|
81,451
|
|
10,489
|
|
(12,890
|
)
|
662,163
|
|
||||||
Non-interest income
|
47,435
|
|
110,157
|
|
71,710
|
|
9,818
|
|
25,358
|
|
264,478
|
|
||||||
Non-interest expense
|
118,159
|
|
364,549
|
|
97,152
|
|
20,220
|
|
23,111
|
|
623,191
|
|
||||||
Income (loss) before income tax expense
|
168,928
|
|
89,069
|
|
56,009
|
|
87
|
|
(10,643
|
)
|
303,450
|
|
||||||
Income tax expense (benefit)
|
53,622
|
|
28,273
|
|
17,779
|
|
27
|
|
(3,378
|
)
|
96,323
|
|
||||||
Net income (loss)
|
$
|
115,306
|
|
$
|
60,796
|
|
$
|
38,230
|
|
$
|
60
|
|
$
|
(7,265
|
)
|
$
|
207,127
|
|
|
Year ended December 31, 2015
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Net interest income (loss)
|
$
|
255,845
|
|
$
|
354,709
|
|
$
|
73,433
|
|
$
|
10,240
|
|
$
|
(29,602
|
)
|
$
|
664,625
|
|
Provision (benefit) for loan and lease losses
|
30,160
|
|
19,603
|
|
—
|
|
386
|
|
(849
|
)
|
49,300
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
225,685
|
|
335,106
|
|
73,433
|
|
9,854
|
|
(28,753
|
)
|
615,325
|
|
||||||
Non-interest income
|
37,784
|
|
108,604
|
|
62,475
|
|
9,183
|
|
19,731
|
|
237,777
|
|
||||||
Non-interest expense
|
109,718
|
|
330,692
|
|
81,449
|
|
19,781
|
|
13,701
|
|
555,341
|
|
||||||
Income (loss) before income tax expense
|
153,751
|
|
113,018
|
|
54,459
|
|
(744
|
)
|
(22,723
|
)
|
297,761
|
|
||||||
Income tax expense (benefit)
|
48,037
|
|
35,310
|
|
17,016
|
|
(233
|
)
|
(7,098
|
)
|
93,032
|
|
||||||
Net income (loss)
|
$
|
105,714
|
|
$
|
77,708
|
|
$
|
37,443
|
|
$
|
(511
|
)
|
$
|
(15,625
|
)
|
$
|
204,729
|
|
|
Year ended December 31, 2014
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Net interest income (loss)
|
$
|
238,186
|
|
$
|
354,781
|
|
$
|
38,822
|
|
$
|
8,877
|
|
$
|
(12,225
|
)
|
$
|
628,441
|
|
Provision (benefit) for loan and lease losses
|
13,088
|
|
26,345
|
|
—
|
|
765
|
|
(2,948
|
)
|
37,250
|
|
||||||
Net interest income (loss) after provision for loan and lease losses
|
225,098
|
|
328,436
|
|
38,822
|
|
8,112
|
|
(9,277
|
)
|
591,191
|
|
||||||
Non-interest income
|
37,270
|
|
103,543
|
|
28,553
|
|
9,843
|
|
22,899
|
|
202,108
|
|
||||||
Non-interest expense
|
102,374
|
|
324,312
|
|
40,900
|
|
18,691
|
|
15,323
|
|
501,600
|
|
||||||
Income (loss) before income tax expense
|
159,994
|
|
107,667
|
|
26,475
|
|
(736
|
)
|
(1,701
|
)
|
291,699
|
|
||||||
Income tax expense (benefit)
|
50,446
|
|
33,947
|
|
8,311
|
|
(232
|
)
|
(499
|
)
|
91,973
|
|
||||||
Net income (loss)
|
$
|
109,548
|
|
$
|
73,720
|
|
$
|
18,164
|
|
$
|
(504
|
)
|
$
|
(1,202
|
)
|
$
|
199,726
|
|
|
Total Assets
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
At December 31, 2016
|
$
|
8,518,830
|
|
$
|
8,655,789
|
|
$
|
83,987
|
|
$
|
550,615
|
|
$
|
8,263,308
|
|
$
|
26,072,529
|
|
At December 31, 2015
|
7,505,513
|
|
8,441,950
|
|
95,815
|
|
493,571
|
|
8,104,269
|
|
24,641,118
|
|
|
At December 31, 2016
|
||||||
(In thousands)
|
Rental Payments
|
|
Rental Receipts
|
||||
2017
|
$
|
28,713
|
|
|
$
|
601
|
|
2018
|
27,046
|
|
|
451
|
|
||
2019
|
25,644
|
|
|
364
|
|
||
2020
|
23,900
|
|
|
293
|
|
||
2021
|
21,860
|
|
|
202
|
|
||
Thereafter
|
88,211
|
|
|
918
|
|
||
Total future minimum rental payments and receipts
|
$
|
215,374
|
|
|
$
|
2,829
|
|
|
At December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Commitments to extend credit
|
$
|
5,224,280
|
|
|
$
|
4,851,994
|
|
Standby letter of credit
|
128,985
|
|
|
133,294
|
|
||
Commercial letter of credit
|
46,497
|
|
|
45,742
|
|
||
Total credit-related financial instruments with off-balance sheet risk
|
$
|
5,399,762
|
|
|
$
|
5,031,030
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
2,119
|
|
|
$
|
5,151
|
|
|
$
|
4,384
|
|
Provision (benefit)
|
168
|
|
|
(3,032
|
)
|
|
767
|
|
|||
Ending balance
|
$
|
2,287
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
Condensed Balance Sheets
|
|
|
|
||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
152,947
|
|
|
$
|
279,644
|
|
Securities available for sale, at fair value
|
—
|
|
|
2,578
|
|
||
Intercompany debt securities
|
150,000
|
|
|
—
|
|
||
Investment in subsidiaries
|
2,425,398
|
|
|
2,345,457
|
|
||
Alternative investments
|
4,275
|
|
|
6,795
|
|
||
Other assets
|
24,659
|
|
|
15,263
|
|
||
Total assets
|
$
|
2,757,279
|
|
|
$
|
2,649,737
|
|
Liabilities and shareholders’ equity:
|
|
|
|
||||
Senior notes
|
$
|
148,194
|
|
|
$
|
147,940
|
|
Junior subordinated debt
|
77,320
|
|
|
77,320
|
|
||
Accrued interest payable
|
2,589
|
|
|
2,591
|
|
||
Due to subsidiaries
|
365
|
|
|
48
|
|
||
Other liabilities
|
1,799
|
|
|
7,878
|
|
||
Total liabilities
|
230,267
|
|
|
235,777
|
|
||
Shareholders’ equity
|
2,527,012
|
|
|
2,413,960
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,757,279
|
|
|
$
|
2,649,737
|
|
Condensed Statements of Income
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Operating Income:
|
|
|
|
|
|
||||||
Dividend income from bank subsidiary
|
$
|
145,000
|
|
|
$
|
110,000
|
|
|
$
|
100,000
|
|
Interest on securities and deposits
|
1,911
|
|
|
546
|
|
|
613
|
|
|||
(Loss) gain on sale of investment securities, net
|
(2,410
|
)
|
|
—
|
|
|
1,185
|
|
|||
Alternative investments income
|
176
|
|
|
2,274
|
|
|
804
|
|
|||
Other non-interest income
|
7,485
|
|
|
152
|
|
|
151
|
|
|||
Total operating income
|
152,162
|
|
|
112,972
|
|
|
102,753
|
|
|||
Operating Expense:
|
|
|
|
|
|
||||||
Interest expense on borrowings
|
9,981
|
|
|
9,665
|
|
|
10,041
|
|
|||
Compensation and benefits
|
11,461
|
|
|
10,965
|
|
|
10,290
|
|
|||
Other non-interest expense
|
6,278
|
|
|
6,005
|
|
|
4,562
|
|
|||
Total operating expense
|
27,720
|
|
|
26,635
|
|
|
24,893
|
|
|||
Income before income tax benefit and equity in undistributed earnings of subsidiaries and associated companies
|
124,442
|
|
|
86,337
|
|
|
77,860
|
|
|||
Income tax benefit
|
3,086
|
|
|
2,929
|
|
|
8,798
|
|
|||
Equity in undistributed earnings of subsidiaries and associated companies
|
79,599
|
|
|
115,463
|
|
|
113,068
|
|
|||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Condensed Statements of Comprehensive Income
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on available for sale securities
|
584
|
|
|
(2,109
|
)
|
|
725
|
|
|||
Net unrealized gains (losses) on derivative instruments
|
1,223
|
|
|
1,223
|
|
|
(2,932
|
)
|
|||
Other comprehensive loss of subsidiaries and associated companies
|
(694
|
)
|
|
(20,959
|
)
|
|
(5,505
|
)
|
|||
Other comprehensive income (loss), net of tax
|
1,113
|
|
|
(21,845
|
)
|
|
(7,712
|
)
|
|||
Comprehensive income
|
$
|
208,240
|
|
|
$
|
182,884
|
|
|
$
|
192,014
|
|
Condensed Statements of Cash Flows
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
$
|
199,726
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed earnings of subsidiaries and associated companies
|
(79,599
|
)
|
|
(115,463
|
)
|
|
(113,068
|
)
|
|||
Stock-based compensation
|
11,438
|
|
|
10,935
|
|
|
10,223
|
|
|||
Gain on redemption of other assets
|
(7,331
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(3,736
|
)
|
|
9,066
|
|
|
(10,721
|
)
|
|||
Net cash provided by operating activities
|
127,899
|
|
|
109,267
|
|
|
86,160
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Purchases of available for sale securities
|
—
|
|
|
—
|
|
|
(3,500
|
)
|
|||
Proceeds from sale of available for sale securities
|
1,089
|
|
|
—
|
|
|
3,499
|
|
|||
Purchases of intercompany debt securities
|
(150,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used for investing activities
|
(148,911
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
150,000
|
|
|||
Repayment of long-term debt
|
—
|
|
|
—
|
|
|
(150,000
|
)
|
|||
Cash dividends paid to common shareholders
|
(89,522
|
)
|
|
(80,964
|
)
|
|
(67,431
|
)
|
|||
Cash dividends paid to preferred shareholders
|
(8,096
|
)
|
|
(8,711
|
)
|
|
(10,556
|
)
|
|||
Exercise of stock options
|
11,762
|
|
|
3,060
|
|
|
2,221
|
|
|||
Excess tax benefits from stock-based compensation
|
3,204
|
|
|
2,338
|
|
|
1,161
|
|
|||
Common stock issued
|
—
|
|
|
—
|
|
|
435
|
|
|||
Common stock repurchased/shares acquired related to employee share-based plans
|
(22,870
|
)
|
|
(17,815
|
)
|
|
(13,067
|
)
|
|||
Common stock warrants repurchased
|
(163
|
)
|
|
(23
|
)
|
|
(3
|
)
|
|||
Net cash used for financing activities
|
(105,685
|
)
|
|
(102,115
|
)
|
|
(87,240
|
)
|
|||
(Decrease) increase in cash and due from banks
|
(126,697
|
)
|
|
7,152
|
|
|
(1,081
|
)
|
|||
Cash and due from banks at beginning of year
|
279,644
|
|
|
272,492
|
|
|
273,573
|
|
|||
Cash and due from banks at end of year
|
$
|
152,947
|
|
|
$
|
279,644
|
|
|
$
|
272,492
|
|
|
2016
|
||||||||||||||
(In thousands, except per share data)
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Interest income
|
$
|
202,335
|
|
|
$
|
202,431
|
|
|
$
|
205,715
|
|
|
$
|
211,432
|
|
Interest expense
|
26,183
|
|
|
25,526
|
|
|
25,518
|
|
|
26,173
|
|
||||
Net interest income
|
176,152
|
|
|
176,905
|
|
|
180,197
|
|
|
185,259
|
|
||||
Provision for loan and lease losses
|
15,600
|
|
|
14,000
|
|
|
14,250
|
|
|
12,500
|
|
||||
Non-interest income
|
62,374
|
|
|
65,075
|
|
|
66,412
|
|
|
70,617
|
|
||||
Non-interest expense
|
152,445
|
|
|
152,778
|
|
|
156,097
|
|
|
161,871
|
|
||||
Income before income tax expense
|
70,481
|
|
|
75,202
|
|
|
76,262
|
|
|
81,505
|
|
||||
Income tax expense
|
23,434
|
|
|
24,599
|
|
|
24,445
|
|
|
23,845
|
|
||||
Net income
|
$
|
47,047
|
|
|
$
|
50,603
|
|
|
$
|
51,817
|
|
|
$
|
57,660
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings applicable to common shareholders
|
$
|
44,921
|
|
|
$
|
48,398
|
|
|
$
|
49,634
|
|
|
$
|
55,501
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
0.54
|
|
|
$
|
0.61
|
|
Diluted
|
0.49
|
|
|
0.53
|
|
|
0.54
|
|
|
0.60
|
|
|
2015
|
||||||||||||||
(In thousands, except per share data)
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Interest income
|
$
|
182,912
|
|
|
$
|
186,970
|
|
|
$
|
191,998
|
|
|
$
|
198,160
|
|
Interest expense
|
23,148
|
|
|
23,459
|
|
|
23,988
|
|
|
24,820
|
|
||||
Net interest income
|
159,764
|
|
|
163,511
|
|
|
168,010
|
|
|
173,340
|
|
||||
Provision for loan and lease losses
|
9,750
|
|
|
12,750
|
|
|
13,000
|
|
|
13,800
|
|
||||
Non-interest income
|
57,561
|
|
|
59,245
|
|
|
61,292
|
|
|
59,679
|
|
||||
Non-interest expense
|
134,087
|
|
|
137,537
|
|
|
139,937
|
|
|
143,780
|
|
||||
Income before income tax expense
|
73,488
|
|
|
72,469
|
|
|
76,365
|
|
|
75,439
|
|
||||
Income tax expense
|
23,984
|
|
|
20,426
|
|
|
24,995
|
|
|
23,627
|
|
||||
Net income
|
$
|
49,504
|
|
|
$
|
52,043
|
|
|
$
|
51,370
|
|
|
$
|
51,812
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings applicable to common shareholders
|
$
|
46,719
|
|
|
$
|
49,819
|
|
|
$
|
49,176
|
|
|
$
|
49,646
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.55
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
Diluted
|
0.51
|
|
|
0.55
|
|
|
0.53
|
|
|
0.54
|
|
/s/ James C. Smith
|
|
|
|
/s/ Glenn I. MacInnes
|
James C. Smith
|
|
|
|
Glenn I. MacInnes
|
Chairman and Chief Executive Officer
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
Age at
|
|
Name
|
December 31, 2016
|
Positions Held
|
James C. Smith
|
67
|
Chairman, Chief Executive Officer and Director
|
Joseph J. Savage
|
64
|
Executive Vice Chairman and Director of Webster Bank
|
John R. Ciulla
|
51
|
President and Director of Webster Bank
|
Glenn I. MacInnes
|
55
|
Executive Vice President and Chief Financial Officer
|
Daniel H. Bley
|
48
|
Executive Vice President and Chief Risk Officer
|
Colin D. Eccles
|
58
|
Executive Vice President and Chief Information Officer
|
Bernard M. Garrigues
|
58
|
Executive Vice President and Chief Human Resources Officer
|
Nitin J. Mhatre
|
46
|
Executive Vice President, Community Banking
|
Dawn C. Morris
|
49
|
Executive Vice President and Chief Marketing Officer
|
Christopher J. Motl
|
46
|
Executive Vice President, Commercial Banking
|
Charles L. Wilkins
|
55
|
Executive Vice President, HSA Bank
|
Harriet Munrett Wolfe
|
63
|
Executive Vice President, General Counsel and Secretary
|
Gregory S. Madar
|
54
|
Senior Vice President and Chief Accounting Officer
|
Plan Category
|
Number of
Shares to be Issued Upon
Exercise of
Outstanding
Awards
|
|
Weighted-
Average
Exercise
Price of
Outstanding
Awards
|
|
Number of
Shares Available
for Future
Grants
|
||||
Plans approved by shareholders
|
1,072,974
|
|
|
$
|
21.24
|
|
|
3,125,482
|
|
Plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
1,072,974
|
|
|
$
|
21.24
|
|
|
3,125,482
|
|
(a)
|
The following documents are filed as part of the Annual Report on Form 10-K:
|
|
|
(1)
|
Consolidated Financial Statements of Registrant and its subsidiaries are included within Item 8 of Part II of this report.
|
|
(2)
|
Consolidated Financial Statement schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission have been omitted because they are not applicable or the required information is included in the Consolidated Financial Statements or Notes thereto included within Item 8 of Part II of this report.
|
|
(3)
|
The exhibits to this Annual Report on Form 10-K are set forth on the Exhibit Index immediately preceding such exhibits and is incorporated herein by reference.
|
(b)
|
Exhibits to this Form 10-K are attached or incorporated herein by reference as stated above.
|
|
(c)
|
Not applicable
|
|
|
WEBSTER FINANCIAL CORPORATION
|
|
|
|
|
By
|
/s/ James C. Smith
|
|
|
James C. Smith
|
|
|
Chairman and Chief Executive Officer
|
Signature:
|
|
Title:
|
|
|
|
/s/ James C. Smith
|
|
Chairman and Chief Executive Officer
|
James C. Smith
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Glenn I. MacInnes
|
|
Executive Vice President and Chief Financial Officer
|
Glenn I. MacInnes
|
|
(Principal Financial Officer)
|
|
|
|
/s/ Gregory S. Madar
|
|
Senior Vice President – Chief Accounting Officer
|
Gregory S. Madar
|
|
(Principal Accounting Officer)
|
|
|
|
/s/ William L. Atwell
|
|
Director
|
William L. Atwell
|
|
|
|
|
|
/s/ Joel S. Becker
|
|
Director
|
Joel S. Becker
|
|
|
|
|
|
/s/ John J. Crawford
|
|
Director
|
John J. Crawford
|
|
|
|
|
|
/s/ Elizabeth E. Flynn
|
|
Director
|
Elizabeth E. Flynn
|
|
|
|
|
|
/s/ C. Michael Jacobi
|
|
Director
|
C. Michael Jacobi
|
|
|
|
|
|
/s/ Laurence C. Morse
|
|
Director
|
Laurence C. Morse
|
|
|
|
|
|
/s/ Karen R. Osar
|
|
Director
|
Karen R. Osar
|
|
|
|
|
|
/s/ Mark Pettie
|
|
Director
|
Mark Pettie
|
|
|
|
|
|
/s/ Charles W. Shivery
|
|
Director
|
Charles W. Shivery
|
|
|
|
|
|
/s/ Lauren C. States
|
|
Director
|
Lauren C. States
|
|
|
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
|
|
|
|
10-Q
|
|
3.1
|
|
8/9/2016
|
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
|
4
|
|
Instruments Defining the Rights of Security Holders.
|
|
|
|
|
|
|
|
|
4.1
|
|
Specimen common stock certificate
|
|
|
|
10-K
|
|
4.1
|
|
3/10/2006
|
4.2
|
|
Specimen stock certificate for the Company's 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock
|
|
|
|
8-K
|
|
4.1
|
|
6/11/2008
|
4.3
|
|
Form of specimen stock certificate for the Company's 6.40% Series E Non-Cumulative Perpetual Preferred Stock
|
|
|
|
8-K
|
|
4.3
|
|
12/4/2012
|
4.4
|
|
Junior Subordinated Indenture, dated as of January 29, 1997, between the Company and The Bank of New York, as trustee, relating to the Company's Junior Subordinated Deferrable Interest Debentures
|
|
|
|
10-K
|
|
10.41
|
|
3/27/1997
|
4.5
|
|
Warrant to purchase shares of Corporation common stock
|
|
|
|
8-K
|
|
4.2
|
|
11/24/2008
|
4.6
|
|
Deposit Agreement, dated as of December 4, 2012, by and among the Company, Computershare Shareowner Services LLC, as Depositary, and the Holders of Depositary Receipts
|
|
|
|
8-K
|
|
4.1
|
|
12/04/2012
|
4.7
|
|
Senior Debt Indenture, dated as of February 11, 2014, between the Company and The Bank of New York Mellon, as trustee
|
|
|
|
8-K
|
|
4.1
|
|
2/11/2014
|
4.8
|
|
Supplemental Indenture, dated as of February 11, 2014, between the Company and The Bank of New York Mellon, as trustee, relating to the Company’s 4.375% Senior Notes due February 15, 2024
|
|
|
|
8-K
|
|
4.2
|
|
2/11/2014
|
10
|
|
Material Contracts
|
|
|
|
|
|
|
|
|
10.1
|
|
Amended and Restated 1992 Stock Option Plan
|
|
|
|
10-Q
|
|
10.1
|
|
5/2/2012
|
10.2
|
|
Amended and Restated Deferred Compensation Plan for Directors and Officers of Webster Bank effective January 1, 2005
|
|
|
|
8-K
|
|
10.2
|
|
12/21/2007
|
10.3
|
|
Supplemental Retirement Plan for Employees of Webster Bank, as amended and restated effective January 1, 2005
|
|
|
|
8-K
|
|
10.1
|
|
12/21/2007
|
10.4
|
|
Qualified Performance-Based Compensation Plan
|
|
|
|
DEF 14A
|
|
A
|
|
3/7/2008
|
10.5
|
|
Employee Stock Purchase Plan
|
|
|
|
DEF 14A
|
|
A
|
|
3/23/2000
|
10.6
|
|
Form of Change in Control Agreement, effective as of December 31, 2012, by and between Webster Financial Corporation and James C. Smith, Glenn I. MacInnes and Joseph J. Savage
|
|
|
|
8-K
|
|
10.1
|
|
12/27/2012
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
10.7
|
|
Form of Change in Control Agreement, effective as of February 1, 2013, by and between Webster Financial Corporation and Daniel H. Bley, Colin D. Eccles, Daniel M. FitzPatrick, Nitin J. Mhatre and Harriet Munrett Wolfe
|
|
|
|
10-K
|
|
10.13
|
|
2/28/2013
|
10.8
|
|
Change in Control Agreement, effective as of January 3, 2014, by and between Webster Financial Corporation and Charles L. Wilkins
|
|
|
|
10-K
|
|
10.13
|
|
2/28/2014
|
10.9
|
|
Form of Non-Competition Agreement, effective as of December 31, 2012, between Webster Financial Corporation and James C. Smith, and Joseph J. Savage
|
|
|
|
8-K
|
|
10.2
|
|
12/27/2012
|
10.10
|
|
Description of Arrangement for Directors Fees.
|
|
X
|
|
|
|
|
|
|
10.11
|
|
Form of Non-Solicitation Agreement, effective as of February 1, 2013, by and between Webster Financial Corporation and Daniel H. Bley, Colin D. Eccles, Daniel M. FitzPatrick, Nitin J. Mhatre and Harriet Munrett Wolfe
|
|
|
|
10-K
|
|
10.22
|
|
2/28/2013
|
10.12
|
|
Non-Solicitation Agreement, effective as of January 3, 2014, by and between Webster Financial Corporation and Charles L. Wilkins
|
|
|
|
10-K
|
|
10.18
|
|
2/28/2014
|
10.13
|
|
Change in Control Agreement, dated as of March 10, 2014, by and between Webster Financial Corporation and Dawn C. Morris
|
|
|
|
10-Q
|
|
10.3
|
|
5/7/2014
|
10.14
|
|
Non-Solicitation Agreement, dated as of March 10, 2014, by and between Webster Financial Corporation and Dawn C. Morris
|
|
|
|
10-Q
|
|
10.4
|
|
5/7/2014
|
10.15
|
|
Change in Control Agreement, dated as of April 28, 2014, by and between Webster Financial Corporation and Bernard Garrigues
|
|
|
|
10-Q
|
|
10.1
|
|
8/6/2014
|
10.16
|
|
Non-Solicitation Agreement, dated as of April 28, 2014, by and between Webster Financial Corporation and Bernard Garrigues
|
|
|
|
10-Q
|
|
10.2
|
|
8/6/2014
|
10.17
|
|
Non-Competition Agreement, dated as of November 13, 2014, between Webster Bank, N.A., acting through its division, HSA Bank, and Charles L. Wilkins
|
|
|
|
10-K
|
|
10.22
|
|
2/27/2015
|
10.18
|
|
Non-Competition Agreement, dated as of February 24, 2016, between Webster Bank, N.A., and Nitin Mhatre
|
|
|
|
10-K
|
|
10.18
|
|
2/29/2016
|
10.19
|
|
Non-Competition Agreement, dated as of February 24, 2016, between Webster Bank, N.A., and Daniel H. Bley
|
|
|
|
10-K
|
|
10.19
|
|
2/29/2016
|
10.20
|
|
Non-Competition Agreement, dated as of February 22, 2017, between Webster Bank, N.A., and Glenn I. MacInnes
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X
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21
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Subsidiaries.
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X
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23.1
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Consent of KPMG LLP.
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X
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31.1
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Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
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X
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31.2
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Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
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X
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32.1 +
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Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
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X
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32.2 +
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Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
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X
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Exhibit Number
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Exhibit Description
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Filed Herewith
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Incorporated by Reference
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Form
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Exhibit
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Filing Date
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101.INS
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XBRL Instance Document
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X
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101.SCH
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XBRL Taxonomy Extension Schema Document
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X
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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X
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101.DEF
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XBRL Taxonomy Extension Definitions Linkbase Document
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X
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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X
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Event
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Amount
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Annual Board Retainer - Lead Director
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$
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61,500
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Annual Board Retainer - Director
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$
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42,000
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Annual Audit Committee Retainer - Chair
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$
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24,000
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Annual Audit Committee Retainer - Member
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$
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9,000
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Annual Compensation Committee Retainer - Chair
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$
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16,000
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Annual Compensation Committee Retainer - Member
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$
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6,000
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Annual Nominating & Corporate Governance Committee Retainer - Chair
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$
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12,000
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Annual Nominating & Corporate Governance Committee Retainer - Member
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$
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4,500
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Annual Risk Committee Retainer - Chair
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$
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20,000
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Annual Risk Committee Retainer - Member
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$
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6,000
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/s/ Glenn I. MacInnes
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EXECUTIVE
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WEBSTER FINANCIAL CORPORATION
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By: /s/ James C. Smith
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Name: James C. Smith
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Title: Chairman and Chief Executive Officer
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Name of Subsidiary
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Jurisdiction of Organization
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Names Under Which Subsidiary Does Business
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Webster Bank, N.A.
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United States
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Same
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Webster Statutory Trust I
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Connecticut
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Same
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Webster Wealth Advisors, Inc.
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Connecticut
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Same
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Webster Licensing, LLC
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Delaware
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Same
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1.
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I have reviewed this annual report on Form 10-K of Webster Financial Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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/s/ James C. Smith
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James C. Smith
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Chairman and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of Webster Financial Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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/s/ Glenn I. MacInnes
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Glenn I. MacInnes
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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(a)
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the Form 10-K Report of the Company for the year ended December 31, 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
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(b)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ James C. Smith
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James C. Smith
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Chairman and Chief Executive Officer
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(a)
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the Form 10-K Report of the Company for the year ended December 31, 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
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(b)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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|
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/s/ Glenn I. MacInnes
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Glenn I. MacInnes
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
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