|
Delaware
|
|
06-1187536
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
☑
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
Page No.
|
|
|
|
Key to Acronyms and Terms
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
Agency CMBS
|
Agency commercial mortgage-backed securities
|
Agency CMO
|
Agency collateralized mortgage obligations
|
Agency MBS
|
Agency mortgage-backed securities
|
ALCO
|
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
|
CDI
|
Core deposit intangible assets
|
CET1 capital
|
Common Equity Tier 1 Capital, defined by Basel III capital rules
|
CLO
|
Collateralized loan obligation securities
|
CMBS
|
Non-agency commercial mortgage-backed securities
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FICO
|
Fair Isaac Corporation
|
FINRA
|
Financial Industry Regulatory Authority
|
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
|
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"
|
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
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
(In thousands, except share data)
|
(Unaudited)
|
|
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
184,044
|
|
|
$
|
190,663
|
|
Interest-bearing deposits
|
38,150
|
|
|
29,461
|
|
||
Securities available-for-sale
|
2,897,060
|
|
|
2,991,091
|
|
||
Securities held-to-maturity (fair value of $4,170,403 and $4,125,125)
|
4,212,050
|
|
|
4,160,658
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
163,557
|
|
|
194,646
|
|
||
Loans held for sale (valued under fair value option $28,698 and $60,260)
|
28,698
|
|
|
67,577
|
|
||
Loans and leases
|
17,094,499
|
|
|
17,026,588
|
|
||
Allowance for loan and lease losses
|
(199,107
|
)
|
|
(194,320
|
)
|
||
Loans and leases, net
|
16,895,392
|
|
|
16,832,268
|
|
||
Deferred tax assets, net
|
76,869
|
|
|
84,391
|
|
||
Premises and equipment, net
|
134,551
|
|
|
137,413
|
|
||
Goodwill
|
538,373
|
|
|
538,373
|
|
||
Other intangible assets, net
|
32,619
|
|
|
33,674
|
|
||
Cash surrender value of life insurance policies
|
521,427
|
|
|
517,852
|
|
||
Accrued interest receivable and other assets
|
280,126
|
|
|
294,462
|
|
||
Total assets
|
$
|
26,002,916
|
|
|
$
|
26,072,529
|
|
Liabilities and shareholders' equity:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
3,913,058
|
|
|
$
|
4,021,061
|
|
Interest-bearing
|
16,328,599
|
|
|
15,282,796
|
|
||
Total deposits
|
20,241,657
|
|
|
19,303,857
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
807,573
|
|
|
949,526
|
|
||
Federal Home Loan Bank advances
|
1,922,832
|
|
|
2,842,908
|
|
||
Long-term debt
|
225,577
|
|
|
225,514
|
|
||
Accrued expenses and other liabilities
|
244,919
|
|
|
223,712
|
|
||
Total liabilities
|
23,442,558
|
|
|
23,545,517
|
|
||
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 (93,679,599 and 93,651,601 shares)
|
937
|
|
|
937
|
|
||
Paid-in capital
|
1,124,900
|
|
|
1,125,937
|
|
||
Retained earnings
|
1,460,026
|
|
|
1,425,320
|
|
||
Treasury stock, at cost (1,697,934 and 1,899,502 shares)
|
(71,188
|
)
|
|
(70,899
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(77,027
|
)
|
|
(76,993
|
)
|
||
Total shareholders' equity
|
2,560,358
|
|
|
2,527,012
|
|
||
Total liabilities and shareholders' equity
|
$
|
26,002,916
|
|
|
$
|
26,072,529
|
|
|
|
|
Three months ended March 31,
|
||||||
(In thousands, except per share data)
|
|
|
2017
|
|
2016
|
||||
Interest Income:
|
|
|
|
|
|
||||
Interest and fees on loans and leases
|
|
|
$
|
167,808
|
|
|
$
|
149,808
|
|
Taxable interest and dividends on securities
|
|
|
45,940
|
|
|
48,039
|
|
||
Non-taxable interest on securities
|
|
|
5,616
|
|
|
4,215
|
|
||
Loans held for sale
|
|
|
316
|
|
|
273
|
|
||
Total interest income
|
|
|
219,680
|
|
|
202,335
|
|
||
Interest Expense:
|
|
|
|
|
|
||||
Deposits
|
|
|
13,435
|
|
|
12,299
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
|
|
3,540
|
|
|
4,173
|
|
||
Federal Home Loan Bank advances
|
|
|
7,493
|
|
|
7,247
|
|
||
Long-term debt
|
|
|
2,548
|
|
|
2,464
|
|
||
Total interest expense
|
|
|
27,016
|
|
|
26,183
|
|
||
Net interest income
|
|
|
192,664
|
|
|
176,152
|
|
||
Provision for loan and lease losses
|
|
|
10,500
|
|
|
15,600
|
|
||
Net interest income after provision for loan and lease losses
|
|
|
182,164
|
|
|
160,552
|
|
||
Non-interest Income:
|
|
|
|
|
|
||||
Deposit service fees
|
|
|
37,006
|
|
|
34,925
|
|
||
Loan and lease related fees
|
|
|
7,208
|
|
|
5,044
|
|
||
Wealth and investment services
|
|
|
7,273
|
|
|
7,195
|
|
||
Mortgage banking activities
|
|
|
2,266
|
|
|
3,260
|
|
||
Increase in cash surrender value of life insurance policies
|
|
|
3,575
|
|
|
3,653
|
|
||
Gain on sale of investment securities, net
|
|
|
—
|
|
|
320
|
|
||
Impairment loss on securities recognized in earnings
|
|
|
—
|
|
|
(149
|
)
|
||
Other income
|
|
|
5,714
|
|
|
8,126
|
|
||
Total non-interest income
|
|
|
63,042
|
|
|
62,374
|
|
||
Non-interest Expense:
|
|
|
|
|
|
||||
Compensation and benefits
|
|
|
88,276
|
|
|
80,710
|
|
||
Occupancy
|
|
|
16,179
|
|
|
15,069
|
|
||
Technology and equipment
|
|
|
21,608
|
|
|
19,938
|
|
||
Intangible assets amortization
|
|
|
1,055
|
|
|
1,554
|
|
||
Marketing
|
|
|
5,441
|
|
|
4,924
|
|
||
Professional and outside services
|
|
|
4,276
|
|
|
2,811
|
|
||
Deposit insurance
|
|
|
6,732
|
|
|
6,786
|
|
||
Other expense
|
|
|
20,217
|
|
|
20,653
|
|
||
Total non-interest expense
|
|
|
163,784
|
|
|
152,445
|
|
||
Income before income tax expense
|
|
|
81,422
|
|
|
70,481
|
|
||
Income tax expense
|
|
|
21,951
|
|
|
23,434
|
|
||
Net income
|
|
|
59,471
|
|
|
47,047
|
|
||
Preferred stock dividends and other
|
|
|
(2,129
|
)
|
|
(2,126
|
)
|
||
Earnings applicable to common shareholders
|
|
|
$
|
57,342
|
|
|
$
|
44,921
|
|
Earnings per common share:
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Basic
|
|
|
$
|
0.62
|
|
|
$
|
0.49
|
|
Diluted
|
|
|
0.62
|
|
|
0.49
|
|
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
|
|
2017
|
|
2016
|
||||
Net income
|
|
|
$
|
59,471
|
|
|
$
|
47,047
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
||||
Total available-for-sale and transferred securities
|
|
|
(2,225
|
)
|
|
7,505
|
|
||
Total derivative instruments
|
|
|
1,159
|
|
|
(952
|
)
|
||
Total defined benefit pension and other postretirement benefit plans
|
|
|
1,032
|
|
|
1,156
|
|
||
Other comprehensive (loss) income, net of tax
|
|
|
(34
|
)
|
|
7,709
|
|
||
Comprehensive income
|
|
|
$
|
59,437
|
|
|
$
|
54,756
|
|
(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, 2016
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,125,937
|
|
$
|
1,425,320
|
|
$
|
(70,899
|
)
|
$
|
(76,993
|
)
|
$
|
2,527,012
|
|
Net income
|
—
|
|
—
|
|
—
|
|
59,471
|
|
—
|
|
—
|
|
59,471
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(34
|
)
|
(34
|
)
|
|||||||
Dividends and dividend equivalents declared on common stock $0.25 per share
|
—
|
|
—
|
|
39
|
|
(23,133
|
)
|
—
|
|
—
|
|
(23,094
|
)
|
|||||||
Dividends on Series E preferred stock $400.00 per share
|
—
|
|
—
|
|
—
|
|
(2,024
|
)
|
—
|
|
—
|
|
(2,024
|
)
|
|||||||
Common stock issued
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
—
|
|
392
|
|
4,834
|
|
—
|
|
5,226
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(1,076
|
)
|
—
|
|
3,869
|
|
—
|
|
2,793
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(8,992
|
)
|
—
|
|
(8,992
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Balance at March 31, 2017
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,124,900
|
|
$
|
1,460,026
|
|
$
|
(71,188
|
)
|
$
|
(77,027
|
)
|
$
|
2,560,358
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In thousands, except per share data)
|
Preferred
Stock
|
Common
Stock
|
Paid-In
Capital
|
Retained
Earnings
|
Treasury
Stock, at cost
|
Accumulated
Other
Comprehensive
Loss, Net of Tax
|
Total
Shareholders'
Equity
|
||||||||||||||
Balance at December 31, 2015
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,124,325
|
|
$
|
1,315,948
|
|
$
|
(71,854
|
)
|
$
|
(78,106
|
)
|
$
|
2,413,960
|
|
Net income
|
—
|
|
—
|
|
—
|
|
47,047
|
|
—
|
|
—
|
|
47,047
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,709
|
|
7,709
|
|
|||||||
Dividends and dividend equivalents declared on common stock $0.23 per share
|
—
|
|
—
|
|
32
|
|
(21,171
|
)
|
—
|
|
—
|
|
(21,139
|
)
|
|||||||
Dividends on Series E preferred stock $400.00 per share
|
—
|
|
—
|
|
—
|
|
(2,024
|
)
|
—
|
|
—
|
|
(2,024
|
)
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,138
|
|
(51
|
)
|
2,638
|
|
—
|
|
4,725
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(407
|
)
|
—
|
|
709
|
|
—
|
|
302
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,425
|
)
|
—
|
|
(4,425
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,206
|
)
|
—
|
|
(11,206
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(163
|
)
|
—
|
|
—
|
|
—
|
|
(163
|
)
|
|||||||
Balance at March 31, 2016
|
$
|
122,710
|
|
$
|
937
|
|
$
|
1,125,925
|
|
$
|
1,339,749
|
|
$
|
(84,138
|
)
|
$
|
(70,397
|
)
|
$
|
2,434,786
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
59,471
|
|
|
$
|
47,047
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for loan and lease losses
|
10,500
|
|
|
15,600
|
|
||
Deferred tax expense
|
7,548
|
|
|
16,847
|
|
||
Depreciation and amortization
|
9,637
|
|
|
8,921
|
|
||
Amortization of earning assets and funding, premiums/discounts, net
|
13,619
|
|
|
12,215
|
|
||
Stock-based compensation
|
3,318
|
|
|
2,783
|
|
||
Gain on sale, net of write-down, on foreclosed and repossessed assets
|
(74
|
)
|
|
(378
|
)
|
||
Write-down on premises and equipment
|
530
|
|
|
288
|
|
||
Impairment loss on securities recognized in earnings
|
—
|
|
|
149
|
|
||
Gain on the sale of investment securities, net
|
—
|
|
|
(320
|
)
|
||
Increase in cash surrender value of life insurance policies
|
(3,575
|
)
|
|
(3,653
|
)
|
||
Mortgage banking activities
|
(2,266
|
)
|
|
(3,260
|
)
|
||
Proceeds from sale of loans held for sale
|
106,620
|
|
|
85,161
|
|
||
Origination of loans held for sale
|
(72,984
|
)
|
|
(73,491
|
)
|
||
Net decrease (increase) in derivative contract assets net of liabilities
|
15,832
|
|
|
(77,358
|
)
|
||
Net increase in accrued interest receivable and other assets
|
(6,673
|
)
|
|
(24,866
|
)
|
||
Net increase in accrued expenses and other liabilities
|
2,590
|
|
|
8,267
|
|
||
Net cash provided by operating activities
|
144,093
|
|
|
13,952
|
|
||
Investing Activities:
|
|
|
|
||||
Net (increase) decrease in interest-bearing deposits
|
(8,689
|
)
|
|
128,102
|
|
||
Purchases of available for sale securities
|
(52,031
|
)
|
|
(190,431
|
)
|
||
Proceeds from maturities and principal payments of available for sale securities
|
160,350
|
|
|
125,534
|
|
||
Proceeds from sales of available for sale securities
|
—
|
|
|
43,211
|
|
||
Purchases of held-to-maturity securities
|
(234,477
|
)
|
|
(222,906
|
)
|
||
Proceeds from maturities and principal payments of held-to-maturity securities
|
175,881
|
|
|
126,999
|
|
||
Net proceeds of Federal Home Loan Bank stock
|
31,089
|
|
|
—
|
|
||
Alternative investments return of capital (capital call), net
|
563
|
|
|
(1,294
|
)
|
||
Net increase in loans
|
(76,329
|
)
|
|
(215,546
|
)
|
||
Proceeds from loans not originated for sale
|
7,445
|
|
|
8,247
|
|
||
Proceeds from the sale of foreclosed and repossessed assets
|
1,285
|
|
|
1,983
|
|
||
Additions to premises and equipment
|
(7,232
|
)
|
|
(12,441
|
)
|
||
Proceeds from redemption of other assets
|
7,581
|
|
|
—
|
|
||
Net cash provided by (used for) investing activities
|
5,436
|
|
|
(208,542
|
)
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Financing Activities:
|
|
|
|
||||
Net increase in deposits
|
937,040
|
|
|
771,797
|
|
||
Proceeds from Federal Home Loan Bank advances
|
3,875,000
|
|
|
4,545,000
|
|
||
Repayments of Federal Home Loan Bank advances
|
(4,795,073
|
)
|
|
(4,846,005
|
)
|
||
Net decrease in securities sold under agreements to repurchase and other borrowings
|
(141,953
|
)
|
|
(241,251
|
)
|
||
Dividends paid to common shareholders
|
(22,939
|
)
|
|
(20,913
|
)
|
||
Dividends paid to preferred shareholders
|
(2,024
|
)
|
|
(2,024
|
)
|
||
Exercise of stock options
|
2,793
|
|
|
302
|
|
||
Excess tax benefits from stock-based compensation
|
—
|
|
|
1,959
|
|
||
Common stock issued
|
—
|
|
|
—
|
|
||
Common stock repurchase program
|
—
|
|
|
(11,206
|
)
|
||
Common shares purchased related to stock compensation plan activity
|
(8,992
|
)
|
|
(4,425
|
)
|
||
Common stock warrants repurchased
|
—
|
|
|
(163
|
)
|
||
Net cash (used for) provided by financing activities
|
(156,148
|
)
|
|
193,071
|
|
||
Net decrease in cash and due from banks
|
(6,619
|
)
|
|
(1,519
|
)
|
||
Cash and due from banks at beginning of period
|
190,663
|
|
|
199,693
|
|
||
Cash and due from banks at end of period
|
$
|
184,044
|
|
|
$
|
198,174
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
26,797
|
|
|
$
|
28,301
|
|
Income taxes paid
|
5,386
|
|
|
6,248
|
|
||
Noncash investing and financing activities:
|
|
|
|
||||
Transfer of loans and leases to foreclosed properties and repossessed assets
|
$
|
1,410
|
|
|
$
|
1,640
|
|
Transfer of loans from portfolio to loans-held-for-sale
|
—
|
|
|
11,186
|
|
||
|
|
|
|
•
|
Modifying system amortization requirements;
|
•
|
Evaluation of premiums associated with debt securities to determine the appropriate cumulative-effect adjustment; and
|
•
|
Establishing new accounting policies pertaining to premium amortization on purchased callable debt securities.
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||||||||
(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
|
$
|
1,854
|
|
$
|
—
|
|
$
|
(1
|
)
|
$
|
1,853
|
|
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
Agency CMO
|
387,389
|
|
3,158
|
|
(3,340
|
)
|
387,207
|
|
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
||||||||
Agency MBS
|
929,729
|
|
4,049
|
|
(20,165
|
)
|
913,613
|
|
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
||||||||
Agency CMBS
|
604,335
|
|
—
|
|
(17,220
|
)
|
587,115
|
|
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
||||||||
CMBS
|
497,579
|
|
3,472
|
|
(313
|
)
|
500,738
|
|
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
||||||||
CLO
|
366,102
|
|
2,577
|
|
(22
|
)
|
368,657
|
|
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
||||||||
Single issuer trust preferred securities
|
30,412
|
|
97
|
|
(1,183
|
)
|
29,326
|
|
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
||||||||
Corporate debt securities
|
107,862
|
|
1,108
|
|
(419
|
)
|
108,551
|
|
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
||||||||
Securities available-for-sale
|
$
|
2,925,262
|
|
$
|
14,461
|
|
$
|
(42,663
|
)
|
$
|
2,897,060
|
|
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
317,641
|
|
$
|
1,678
|
|
$
|
(3,554
|
)
|
$
|
315,765
|
|
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
Agency MBS
|
2,330,163
|
|
23,784
|
|
(43,325
|
)
|
2,310,622
|
|
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
||||||||
Agency CMBS
|
591,154
|
|
116
|
|
(3,062
|
)
|
588,208
|
|
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
||||||||
Municipal bonds and notes
|
690,652
|
|
3,780
|
|
(23,890
|
)
|
670,542
|
|
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
||||||||
CMBS
|
281,100
|
|
3,322
|
|
(503
|
)
|
283,919
|
|
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
||||||||
Private Label MBS
|
1,340
|
|
7
|
|
—
|
|
1,347
|
|
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
||||||||
Securities held-to-maturity
|
$
|
4,212,050
|
|
$
|
32,687
|
|
$
|
(74,334
|
)
|
$
|
4,170,403
|
|
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
3,243
|
|
|
$
|
3,288
|
|
Reduction for securities sold or called
|
(12
|
)
|
|
—
|
|
||
Additions for OTTI not previously recognized in earnings
|
—
|
|
|
149
|
|
||
Ending balance
|
$
|
3,231
|
|
|
$
|
3,437
|
|
|
At March 31, 2017
|
||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury Bills
|
$
|
1,118
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
$
|
—
|
|
|
1
|
$
|
1,118
|
|
$
|
(1
|
)
|
Agency CMO
|
106,502
|
|
(2,096
|
)
|
|
65,168
|
|
(1,244
|
)
|
|
19
|
171,670
|
|
(3,340
|
)
|
||||||
Agency MBS
|
510,698
|
|
(11,072
|
)
|
|
246,030
|
|
(9,093
|
)
|
|
101
|
756,728
|
|
(20,165
|
)
|
||||||
Agency CMBS
|
587,115
|
|
(17,220
|
)
|
|
—
|
|
—
|
|
|
34
|
587,115
|
|
(17,220
|
)
|
||||||
CMBS
|
13,044
|
|
(40
|
)
|
|
29,752
|
|
(273
|
)
|
|
7
|
42,796
|
|
(313
|
)
|
||||||
CLO
|
25,000
|
|
(1
|
)
|
|
16,262
|
|
(21
|
)
|
|
2
|
41,262
|
|
(22
|
)
|
||||||
Single issuer trust preferred securities
|
8,756
|
|
(115
|
)
|
|
16,251
|
|
(1,068
|
)
|
|
4
|
25,007
|
|
(1,183
|
)
|
||||||
Corporate debt securities
|
—
|
|
—
|
|
|
7,321
|
|
(419
|
)
|
|
2
|
7,321
|
|
(419
|
)
|
||||||
Total available-for-sale in an unrealized loss position
|
$
|
1,252,233
|
|
$
|
(30,545
|
)
|
|
$
|
380,784
|
|
$
|
(12,118
|
)
|
|
170
|
$
|
1,633,017
|
|
$
|
(42,663
|
)
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
158,710
|
|
$
|
(3,139
|
)
|
|
$
|
16,573
|
|
$
|
(415
|
)
|
|
16
|
$
|
175,283
|
|
$
|
(3,554
|
)
|
Agency MBS
|
1,403,600
|
|
(34,375
|
)
|
|
261,240
|
|
(8,950
|
)
|
|
158
|
1,664,840
|
|
(43,325
|
)
|
||||||
Agency CMBS
|
485,207
|
|
(3,062
|
)
|
|
—
|
|
—
|
|
|
39
|
485,207
|
|
(3,062
|
)
|
||||||
Municipal bonds and notes
|
422,810
|
|
(23,888
|
)
|
|
1,193
|
|
(2
|
)
|
|
210
|
424,003
|
|
(23,890
|
)
|
||||||
CMBS
|
80,740
|
|
(503
|
)
|
|
—
|
|
—
|
|
|
10
|
80,740
|
|
(503
|
)
|
||||||
Total held-to-maturity in an unrealized loss position
|
$
|
2,551,067
|
|
$
|
(64,967
|
)
|
|
$
|
279,006
|
|
$
|
(9,367
|
)
|
|
433
|
$
|
2,830,073
|
|
$
|
(74,334
|
)
|
|
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:
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury Bills
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
—
|
$
|
—
|
|
$
|
—
|
|
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
|
)
|
||||||
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
|
)
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017 (1)
|
|
2016
|
||||
Proceeds from sales
|
$
|
—
|
|
|
$
|
43,202
|
|
|
|
|
|
||||
Gross realized gains on sales
|
$
|
—
|
|
|
$
|
387
|
|
Less: Gross realized losses on sales
|
—
|
|
|
67
|
|
||
Gain on sale of investment securities, net
|
$
|
—
|
|
|
$
|
320
|
|
(1)
|
There were no sales of securities during the three months ended March 31, 2017.
|
|
At March 31, 2017
|
||||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Due in one year or less
|
$
|
76,121
|
|
$
|
76,697
|
|
|
$
|
16,350
|
|
$
|
16,517
|
|
Due after one year through five years
|
21,604
|
|
22,004
|
|
|
12,273
|
|
12,475
|
|
||||
Due after five through ten years
|
485,792
|
|
488,859
|
|
|
46,691
|
|
47,603
|
|
||||
Due after ten years
|
2,341,745
|
|
2,309,500
|
|
|
4,136,736
|
|
4,093,808
|
|
||||
Total debt securities
|
$
|
2,925,262
|
|
$
|
2,897,060
|
|
|
$
|
4,212,050
|
|
$
|
4,170,403
|
|
(In thousands)
|
At March 31,
2017 |
|
At December 31, 2016
|
||||
Residential
|
$
|
4,290,685
|
|
|
$
|
4,254,682
|
|
Consumer
|
2,634,063
|
|
|
2,684,500
|
|
||
Commercial
|
5,019,383
|
|
|
4,940,931
|
|
||
Commercial Real Estate
|
4,530,507
|
|
|
4,510,846
|
|
||
Equipment Financing
|
619,861
|
|
|
635,629
|
|
||
Loans and leases (1) (2)
|
$
|
17,094,499
|
|
|
$
|
17,026,588
|
|
(1)
|
Loans and leases include net deferred fees and net premiums/discounts of $19.7 million and $17.3 million at March 31, 2017 and December 31, 2016, respectively.
|
(2)
|
At March 31, 2017, the Company had pledged $6.3 billion of eligible residential, consumer and commercial loans as collateral to support borrowing capacity at the FHLB Boston and the FRB of Boston.
|
|
At March 31, 2017
|
||||||||||||||||||||
(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
|
$
|
5,994
|
|
$
|
5,559
|
|
$
|
—
|
|
$
|
46,871
|
|
$
|
58,424
|
|
$
|
4,232,261
|
|
$
|
4,290,685
|
|
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
7,669
|
|
3,735
|
|
—
|
|
40,906
|
|
52,310
|
|
2,316,659
|
|
2,368,969
|
|
|||||||
Other consumer
|
1,997
|
|
1,382
|
|
—
|
|
1,203
|
|
4,582
|
|
260,512
|
|
265,094
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial non-mortgage
|
1,048
|
|
644
|
|
747
|
|
74,257
|
|
76,696
|
|
4,094,550
|
|
4,171,246
|
|
|||||||
Asset-based
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
848,137
|
|
848,137
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
1,942
|
|
130
|
|
—
|
|
9,163
|
|
11,235
|
|
4,105,334
|
|
4,116,569
|
|
|||||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
642
|
|
642
|
|
413,296
|
|
413,938
|
|
|||||||
Equipment financing
|
751
|
|
547
|
|
—
|
|
703
|
|
2,001
|
|
617,860
|
|
619,861
|
|
|||||||
Total
|
$
|
19,401
|
|
$
|
11,997
|
|
$
|
747
|
|
$
|
173,745
|
|
$
|
205,890
|
|
$
|
16,888,609
|
|
$
|
17,094,499
|
|
|
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 or for the three months ended March 31, 2017
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
ALLL:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
23,226
|
|
$
|
45,233
|
|
$
|
71,905
|
|
$
|
47,477
|
|
$
|
6,479
|
|
$
|
194,320
|
|
Provision (benefit) charged to expense
|
(2,467
|
)
|
5,326
|
|
4,250
|
|
3,345
|
|
46
|
|
10,500
|
|
||||||
Charge-offs
|
(732
|
)
|
(6,474
|
)
|
(123
|
)
|
(102
|
)
|
(185
|
)
|
(7,616
|
)
|
||||||
Recoveries
|
237
|
|
1,323
|
|
322
|
|
7
|
|
14
|
|
1,903
|
|
||||||
Balance, end of period
|
$
|
20,264
|
|
$
|
45,408
|
|
$
|
76,354
|
|
$
|
50,727
|
|
$
|
6,354
|
|
$
|
199,107
|
|
Individually evaluated for impairment
|
$
|
6,981
|
|
$
|
2,605
|
|
$
|
11,564
|
|
$
|
256
|
|
$
|
5
|
|
$
|
21,411
|
|
Collectively evaluated for impairment
|
$
|
13,283
|
|
$
|
42,803
|
|
$
|
64,790
|
|
$
|
50,471
|
|
$
|
6,349
|
|
$
|
177,696
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
120,976
|
|
$
|
47,281
|
|
$
|
86,805
|
|
$
|
23,954
|
|
$
|
6,148
|
|
$
|
285,164
|
|
Collectively evaluated for impairment
|
4,169,709
|
|
2,586,782
|
|
4,932,578
|
|
4,506,553
|
|
613,713
|
|
16,809,335
|
|
||||||
Loans and leases
|
$
|
4,290,685
|
|
$
|
2,634,063
|
|
$
|
5,019,383
|
|
$
|
4,530,507
|
|
$
|
619,861
|
|
$
|
17,094,499
|
|
|
At or for the three months ended March 31, 2016
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
ALLL:
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
66,686
|
|
$
|
34,889
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Provision (benefit) charged to expense
|
2,327
|
|
2,791
|
|
10,536
|
|
(119
|
)
|
65
|
|
15,600
|
|
||||||
Charge-offs
|
(1,594
|
)
|
(4,421
|
)
|
(11,208
|
)
|
(1,526
|
)
|
(151
|
)
|
(18,900
|
)
|
||||||
Recoveries
|
721
|
|
1,214
|
|
457
|
|
74
|
|
45
|
|
2,511
|
|
||||||
Balance, end of period
|
$
|
27,330
|
|
$
|
41,636
|
|
$
|
66,471
|
|
$
|
33,318
|
|
$
|
5,446
|
|
$
|
174,201
|
|
Individually evaluated for impairment
|
$
|
10,044
|
|
$
|
3,037
|
|
$
|
3,235
|
|
$
|
2,022
|
|
$
|
42
|
|
$
|
18,380
|
|
Collectively evaluated for impairment
|
$
|
17,286
|
|
$
|
38,599
|
|
$
|
63,236
|
|
$
|
31,296
|
|
$
|
5,404
|
|
$
|
155,821
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
130,133
|
|
$
|
48,096
|
|
$
|
64,847
|
|
$
|
35,619
|
|
$
|
1,012
|
|
$
|
279,707
|
|
Collectively evaluated for impairment
|
3,979,110
|
|
2,678,773
|
|
4,313,913
|
|
4,011,292
|
|
595,560
|
|
15,578,648
|
|
||||||
Loans and leases
|
$
|
4,109,243
|
|
$
|
2,726,869
|
|
$
|
4,378,760
|
|
$
|
4,046,911
|
|
$
|
596,572
|
|
$
|
15,858,355
|
|
|
At March 31, 2017
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded Investment |
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential
|
$
|
132,986
|
|
$
|
120,976
|
|
$
|
21,355
|
|
$
|
99,621
|
|
$
|
6,981
|
|
Consumer
|
52,545
|
|
47,281
|
|
22,845
|
|
24,436
|
|
2,605
|
|
|||||
Commercial
|
95,269
|
|
86,805
|
|
24,328
|
|
62,477
|
|
11,564
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
23,407
|
|
22,772
|
|
18,962
|
|
3,810
|
|
157
|
|
|||||
Commercial construction
|
1,188
|
|
1,182
|
|
688
|
|
494
|
|
99
|
|
|||||
Equipment financing
|
6,194
|
|
6,148
|
|
6,005
|
|
143
|
|
5
|
|
|||||
Total
|
$
|
311,589
|
|
$
|
285,164
|
|
$
|
94,183
|
|
$
|
190,981
|
|
$
|
21,411
|
|
|
At December 31, 2016
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded Investment |
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential
|
$
|
131,468
|
|
$
|
119,424
|
|
$
|
21,068
|
|
$
|
98,356
|
|
$
|
8,090
|
|
Consumer
|
52,432
|
|
45,719
|
|
22,746
|
|
22,973
|
|
2,903
|
|
|||||
Commercial
|
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
|
|
|
Three months ended March 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
(In thousands)
|
Average
Recorded
Investment
|
Accrued
Interest Income |
Cash Basis Interest Income
|
|
Average
Recorded
Investment
|
Accrued
Interest Income |
Cash Basis Interest Income
|
||||||||||||
Residential
|
$
|
120,200
|
|
$
|
1,070
|
|
$
|
415
|
|
|
$
|
132,291
|
|
$
|
1,115
|
|
$
|
317
|
|
Consumer
|
46,500
|
|
322
|
|
313
|
|
|
48,261
|
|
349
|
|
259
|
|
||||||
Commercial
|
69,921
|
|
222
|
|
—
|
|
|
60,714
|
|
472
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
23,170
|
|
135
|
|
—
|
|
|
31,495
|
|
148
|
|
—
|
|
||||||
Commercial construction
|
1,184
|
|
12
|
|
—
|
|
|
5,962
|
|
35
|
|
—
|
|
||||||
Equipment financing
|
6,284
|
|
71
|
|
—
|
|
|
717
|
|
1
|
|
—
|
|
||||||
Total
|
$
|
267,259
|
|
$
|
1,832
|
|
$
|
728
|
|
|
$
|
279,440
|
|
$
|
2,120
|
|
$
|
576
|
|
|
Commercial
|
|
Commercial Real Estate
|
|
Equipment Financing
|
||||||||||||||||||
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
|
At March 31,
2017 |
|
At December 31,
2016 |
|
At March 31,
2017 |
|
At December 31,
2016 |
||||||||||||
(1) - (6) Pass
|
$
|
4,728,817
|
|
|
$
|
4,655,007
|
|
|
$
|
4,331,615
|
|
|
$
|
4,357,458
|
|
|
$
|
602,108
|
|
|
$
|
618,084
|
|
(7) Special Mention
|
57,136
|
|
|
56,240
|
|
|
109,932
|
|
|
69,023
|
|
|
1,716
|
|
|
1,324
|
|
||||||
(8) Substandard
|
215,451
|
|
|
226,603
|
|
|
81,456
|
|
|
84,365
|
|
|
16,037
|
|
|
16,221
|
|
||||||
(9) Doubtful
|
17,979
|
|
|
3,081
|
|
|
7,504
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
5,019,383
|
|
|
$
|
4,940,931
|
|
|
$
|
4,530,507
|
|
|
$
|
4,510,846
|
|
|
$
|
619,861
|
|
|
$
|
635,629
|
|
(Dollars in thousands)
|
At March 31,
2017 |
|
At December 31, 2016
|
||||
Accrual status
|
$
|
145,073
|
|
|
$
|
147,809
|
|
Non-accrual status
|
80,988
|
|
|
75,719
|
|
||
Total recorded investment of TDRs
|
$
|
226,061
|
|
|
$
|
223,528
|
|
Accruing TDRs performing under modified terms more than one year
|
57.0
|
%
|
|
57.1
|
%
|
||
Specific reserves for TDRs included in the balance of ALLL
|
$
|
13,248
|
|
|
$
|
14,583
|
|
Additional funds committed to borrowers in TDR status
|
2,487
|
|
|
459
|
|
|
Three months ended March 31,
|
||||||||
|
2017
|
|
2016
|
||||||
|
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
|
5
|
$
|
970
|
|
|
5
|
$
|
664
|
|
Adjusted Interest Rate
|
—
|
—
|
|
|
1
|
236
|
|
||
Maturity/Rate Combined
|
3
|
492
|
|
|
—
|
—
|
|
||
Other (2)
|
19
|
2,938
|
|
|
7
|
1,415
|
|
||
Consumer:
|
|
|
|
|
|
||||
Extended Maturity
|
2
|
39
|
|
|
1
|
99
|
|
||
Maturity/Rate Combined
|
7
|
1,983
|
|
|
4
|
300
|
|
||
Other (2)
|
33
|
2,193
|
|
|
7
|
338
|
|
||
Commercial:
|
|
|
|
|
|
||||
Extended Maturity
|
2
|
35
|
|
|
9
|
14,649
|
|
||
Maturity/Rate Combined
|
—
|
—
|
|
|
1
|
4
|
|
||
Other (2)
|
1
|
4
|
|
|
4
|
310
|
|
||
Commercial real estate:
|
|
|
|
|
|
||||
Maturity/Rate Combined
|
—
|
—
|
|
|
1
|
44
|
|
||
Other (2)
|
—
|
—
|
|
|
1
|
509
|
|
||
Equipment Financing
|
|
|
|
|
|
||||
Extended Maturity
|
—
|
—
|
|
|
1
|
4
|
|
||
Total TDRs
|
72
|
$
|
8,654
|
|
|
42
|
$
|
18,572
|
|
(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, or other concessions.
|
|
Three months ended March 31,
|
||||||||
|
2017
|
|
2016
|
||||||
(Dollars in thousands)
|
Number of
Loans and
Leases (1)
|
Recorded
Investment (1)
|
|
Number of
Loans and
Leases
|
Recorded
Investment
|
||||
Residential
|
—
|
$
|
—
|
|
|
3
|
$
|
699
|
|
Consumer
|
—
|
—
|
|
|
2
|
90
|
|
||
Commercial
|
—
|
—
|
|
|
9
|
12,587
|
|
||
Commercial real estate
|
—
|
—
|
|
|
1
|
405
|
|
||
Total
|
—
|
$
|
—
|
|
|
15
|
$
|
13,781
|
|
(1)
|
There were no re-defaulted TDRs during the three months ended March 31, 2017.
|
(In thousands)
|
At March 31, 2017
|
|
At December 31, 2016
|
||||
(1) - (6) Pass
|
$
|
10,671
|
|
|
$
|
10,210
|
|
(7) Special Mention
|
6
|
|
|
7
|
|
||
(8) Substandard
|
44,430
|
|
|
45,509
|
|
||
(9) Doubtful
|
2,697
|
|
|
2,738
|
|
||
Total
|
$
|
57,804
|
|
|
$
|
58,464
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
790
|
|
|
$
|
1,192
|
|
Provision charged to expense
|
34
|
|
|
25
|
|
||
Repurchased loans and settlements charged off
|
—
|
|
|
(98
|
)
|
||
Ending balance
|
$
|
824
|
|
|
$
|
1,119
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Residential mortgage loans held for sale:
|
|
|
|
||||
Proceeds from sale
|
$
|
106,620
|
|
|
$
|
85,161
|
|
Loans sold with servicing rights retained
|
99,500
|
|
|
79,360
|
|
||
|
|
|
|
||||
Net gain on sale
|
251
|
|
|
974
|
|
||
Ancillary fees
|
768
|
|
|
631
|
|
||
Fair value option adjustment
|
1,247
|
|
|
1,024
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
24,466
|
|
|
$
|
20,698
|
|
Additions
|
2,009
|
|
|
1,913
|
|
||
Amortization
|
(2,139)
|
|
(1,607)
|
||||
Ending balance
|
$
|
24,336
|
|
|
$
|
21,004
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||
(In thousands)
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
||||||||||||
HSA Bank CDI
|
$
|
22,000
|
|
$
|
(6,814
|
)
|
$
|
15,186
|
|
|
$
|
22,000
|
|
$
|
(6,162
|
)
|
$
|
15,838
|
|
HSA Bank Customer relationships
|
21,000
|
|
(3,567
|
)
|
17,433
|
|
|
21,000
|
|
(3,164
|
)
|
17,836
|
|
||||||
Total other intangible assets
|
$
|
43,000
|
|
$
|
(10,381
|
)
|
$
|
32,619
|
|
|
$
|
43,000
|
|
$
|
(9,326
|
)
|
$
|
33,674
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
(In thousands)
|
|
||
Remainder of 2017
|
$
|
3,008
|
|
2018
|
3,847
|
|
|
2019
|
3,847
|
|
|
2020
|
3,847
|
|
|
2021
|
3,847
|
|
|
Thereafter
|
14,223
|
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Non-interest-bearing:
|
|
|
|
||||
Demand
|
$
|
3,913,058
|
|
|
$
|
4,021,061
|
|
Interest-bearing:
|
|
|
|
||||
Checking
|
2,607,060
|
|
|
2,528,274
|
|
||
Health savings accounts
|
4,793,734
|
|
|
4,362,503
|
|
||
Money market
|
2,452,726
|
|
|
2,047,121
|
|
||
Savings
|
4,456,980
|
|
|
4,320,090
|
|
||
Time deposits
|
2,018,099
|
|
|
2,024,808
|
|
||
Total interest-bearing
|
16,328,599
|
|
|
15,282,796
|
|
||
Total deposits
|
$
|
20,241,657
|
|
|
$
|
19,303,857
|
|
|
|
|
|
||||
Time deposits and interest-bearing checking, included in above balances, obtained through brokers
|
$
|
850,216
|
|
|
$
|
848,618
|
|
Time deposits, included in above balance, that meet or exceed the FDIC limit
|
539,520
|
|
|
490,721
|
|
||
Deposit overdrafts reclassified as loan balances
|
1,125
|
|
|
1,885
|
|
(In thousands)
|
At March 31,
2017 |
||
Remainder of 2017
|
$
|
699,874
|
|
2018
|
512,408
|
|
|
2019
|
499,948
|
|
|
2020
|
189,739
|
|
|
2021
|
107,386
|
|
|
Thereafter
|
8,744
|
|
|
Total time deposits
|
$
|
2,018,099
|
|
|
At March 31,
2017 |
|
At December 31,
2016 |
||||||
(In thousands)
|
Amount
|
Rate
|
|
Amount
|
Rate
|
||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
||||
Original maturity of one year or less
|
$
|
293,573
|
|
0.18
|
|
$
|
340,526
|
|
0.16
|
Original maturity of greater than one year, non-callable
|
400,000
|
|
3.04
|
|
400,000
|
|
3.09
|
||
Total securities sold under agreements to repurchase
|
693,573
|
|
1.83
|
|
740,526
|
|
1.82
|
||
Fed funds purchased
|
114,000
|
|
0.82
|
|
209,000
|
|
0.46
|
||
Securities sold under agreements to repurchase and other borrowings
|
$
|
807,573
|
|
1.69
|
|
$
|
949,526
|
|
1.53
|
|
At March 31,
2017 |
|
At December 31,
2016 |
||||||||
(Dollars in thousands)
|
Amount
|
Weighted-
Average Contractual Coupon Rate
|
|
Amount
|
Weighted-
Average Contractual Coupon Rate
|
||||||
Maturing within 1 year
|
$
|
1,260,500
|
|
1.01
|
%
|
|
$
|
2,130,500
|
|
0.71
|
%
|
After 1 but within 2 years
|
175,000
|
|
1.45
|
|
|
200,000
|
|
1.36
|
|
||
After 2 but within 3 years
|
153,026
|
|
1.75
|
|
|
128,026
|
|
1.73
|
|
||
After 3 but within 4 years
|
125,000
|
|
1.83
|
|
|
175,000
|
|
1.77
|
|
||
After 4 but within 5 years
|
200,000
|
|
1.92
|
|
|
200,000
|
|
1.81
|
|
||
After 5 years
|
9,297
|
|
2.59
|
|
|
9,370
|
|
2.59
|
|
||
|
1,922,823
|
|
1.26
|
%
|
|
2,842,896
|
|
0.95
|
%
|
||
Premiums on advances
|
9
|
|
|
|
12
|
|
|
||||
Federal Home Loan Bank advances
|
$
|
1,922,832
|
|
|
|
$
|
2,842,908
|
|
|
||
|
|
|
|
|
|
||||||
Aggregate carrying value of assets pledged as collateral
|
$
|
5,895,045
|
|
|
|
$
|
5,967,318
|
|
|
||
Remaining borrowing capacity
|
2,046,011
|
|
|
|
1,192,758
|
|
|
(Dollars in thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
|||||
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
|
(815
|
)
|
|
(845
|
)
|
|||
Debt issuance cost on senior fixed-rate notes
|
(928
|
)
|
|
(961
|
)
|
|||
Long-term debt
|
$
|
225,577
|
|
|
$
|
225,514
|
|
(1)
|
The interest rate on Webster Statutory Trust I floating-rate notes, which varies quarterly based on 3-month LIBOR plus 2.95%, was 4.10% at March 31, 2017 and 3.48% at December 31, 2016.
|
|
Three months ended March 31, 2017
|
|||||||||||
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||
Beginning balance
|
$
|
(15,476
|
)
|
$
|
(17,068
|
)
|
$
|
(44,449
|
)
|
$
|
(76,993
|
)
|
OCI/OCL before reclassifications
|
(2,225
|
)
|
61
|
|
—
|
|
(2,164
|
)
|
||||
Amounts reclassified from AOCL
|
—
|
|
1,098
|
|
1,032
|
|
2,130
|
|
||||
Net current-period OCI/OCL
|
(2,225
|
)
|
1,159
|
|
1,032
|
|
(34
|
)
|
||||
Ending balance
|
$
|
(17,701
|
)
|
$
|
(15,909
|
)
|
$
|
(43,417
|
)
|
$
|
(77,027
|
)
|
|
Three months ended March 31, 2016
|
|||||||||||
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||
Beginning balance
|
$
|
(6,407
|
)
|
$
|
(22,980
|
)
|
$
|
(48,719
|
)
|
$
|
(78,106
|
)
|
OCI/OCL before reclassifications
|
7,614
|
|
(2,452
|
)
|
—
|
|
5,162
|
|
||||
Amounts reclassified from AOCL
|
(109
|
)
|
1,500
|
|
1,156
|
|
2,547
|
|
||||
Net current-period OCI/OCL
|
7,505
|
|
(952
|
)
|
1,156
|
|
7,709
|
|
||||
Ending balance
|
$
|
1,098
|
|
$
|
(23,932
|
)
|
$
|
(47,563
|
)
|
$
|
(70,397
|
)
|
(In thousands)
|
Three months ended March 31,
|
Associated Line Item in the Condensed Consolidated Statements of Income
|
||||||
AOCL Components
|
2017
|
|
2016
|
|||||
|
|
|
|
|
||||
Available-for-sale and transferred securities:
|
|
|
|
|
||||
Unrealized gains (losses) on investment securities
|
$
|
—
|
|
|
$
|
320
|
|
Gain on sale of investment securities, net
|
Unrealized gains (losses) on investment securities
|
—
|
|
|
(149
|
)
|
Impairment loss recognized in earnings
|
||
Total before tax
|
—
|
|
|
171
|
|
|
||
Tax benefit (expense)
|
—
|
|
|
(62
|
)
|
Income tax expense
|
||
Net of tax
|
$
|
—
|
|
|
$
|
109
|
|
|
Derivative instruments:
|
|
|
|
|
||||
Cash flow hedges
|
$
|
(1,735
|
)
|
|
$
|
(2,365
|
)
|
Total interest expense
|
Tax benefit
|
637
|
|
|
865
|
|
Income tax expense
|
||
Net of tax
|
$
|
(1,098
|
)
|
|
$
|
(1,500
|
)
|
|
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
|
||||
Amortization of net loss
|
$
|
(1,638
|
)
|
|
$
|
(1,829
|
)
|
(1)
|
Prior service costs
|
—
|
|
|
(4
|
)
|
(1)
|
||
Total before tax
|
(1,638
|
)
|
|
(1,833
|
)
|
|
||
Tax benefit
|
606
|
|
|
677
|
|
Income tax expense
|
||
Net of tax
|
$
|
(1,032
|
)
|
|
$
|
(1,156
|
)
|
|
|
At March 31, 2017
|
||||||||||||||||
|
Actual
|
|
Minimum Requirement
|
|
Well Capitalized
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,959,718
|
|
10.7
|
%
|
|
$
|
820,534
|
|
4.5
|
%
|
|
$
|
1,185,216
|
|
6.5
|
%
|
Total risk-based capital
|
2,361,510
|
|
13.0
|
|
|
1,458,727
|
|
8.0
|
|
|
1,823,409
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
2,082,428
|
|
11.4
|
|
|
1,094,045
|
|
6.0
|
|
|
1,458,727
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
2,082,428
|
|
8.2
|
|
|
1,020,450
|
|
4.0
|
|
|
1,275,563
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,995,930
|
|
11.0
|
%
|
|
$
|
819,778
|
|
4.5
|
%
|
|
$
|
1,184,123
|
|
6.5
|
%
|
Total risk-based capital
|
2,197,692
|
|
12.1
|
|
|
1,457,382
|
|
8.0
|
|
|
1,821,728
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,995,930
|
|
11.0
|
|
|
1,093,037
|
|
6.0
|
|
|
1,457,382
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,995,930
|
|
7.8
|
|
|
1,019,719
|
|
4.0
|
|
|
1,274,649
|
|
5.0
|
|
|
At December 31, 2016
|
||||||||||||||||
|
Actual
|
|
Minimum Requirement
|
|
Well Capitalized
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
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
|
|
|
Three months ended March 31,
|
||||||
(In thousands, except per share data)
|
2017
|
|
2016
|
||||
Earnings for basic and diluted earnings per common share:
|
|
|
|
||||
Net income
|
$
|
59,471
|
|
|
$
|
47,047
|
|
Less: Preferred stock dividends
|
2,024
|
|
|
2,024
|
|
||
Net income available to common shareholders
|
57,447
|
|
|
45,023
|
|
||
Less: Earnings applicable to participating securities
|
105
|
|
|
102
|
|
||
Earnings applicable to common shareholders
|
$
|
57,342
|
|
|
$
|
44,921
|
|
|
|
|
|
||||
Shares:
|
|
|
|
||||
Weighted-average common shares outstanding - basic
|
91,886
|
|
|
91,328
|
|
||
Effect of dilutive securities:
|
|
|
|
||||
Stock options and restricted stock
|
450
|
|
|
452
|
|
||
Warrants
|
6
|
|
|
29
|
|
||
Weighted-average common shares outstanding - diluted
|
92,342
|
|
|
91,809
|
|
||
|
|
|
|
||||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.62
|
|
|
$
|
0.49
|
|
Diluted
|
0.62
|
|
|
0.49
|
|
|
Three months ended March 31,
|
||||
(In thousands)
|
2017
|
|
2016
|
||
Stock options (shares with exercise price greater than market price)
|
—
|
|
|
213
|
|
Restricted stock (due to performance conditions on non-participating shares)
|
40
|
|
|
129
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||||||||||
|
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
|
|
$
|
2,950
|
|
|
$
|
100,000
|
|
$
|
375
|
|
|
$
|
225,000
|
|
$
|
3,270
|
|
|
$
|
100,000
|
|
$
|
792
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Positions subject to a master netting agreement (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
2,125,783
|
|
5,348
|
|
|
1,116,093
|
|
8,543
|
|
|
1,943,485
|
|
32,226
|
|
|
1,242,937
|
|
24,388
|
|
||||||||
Other
|
1,140
|
|
9
|
|
|
23,616
|
|
188
|
|
|
10,634
|
|
231
|
|
|
14,265
|
|
120
|
|
||||||||
Positions not subject to a master netting agreement (2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
1,651,917
|
|
33,160
|
|
|
1,589,959
|
|
21,218
|
|
|
1,734,679
|
|
38,668
|
|
|
1,451,762
|
|
19,001
|
|
||||||||
RPAs
|
85,800
|
|
117
|
|
|
92,250
|
|
142
|
|
|
86,037
|
|
139
|
|
|
87,273
|
|
166
|
|
||||||||
Mortgage banking derivatives (3)
|
50,724
|
|
606
|
|
|
746
|
|
274
|
|
|
103,440
|
|
3,084
|
|
|
59,895
|
|
711
|
|
||||||||
Other
|
1,896
|
|
23
|
|
|
166
|
|
12
|
|
|
1,438
|
|
19
|
|
|
181
|
|
11
|
|
||||||||
Total not designated as hedging instruments
|
3,917,260
|
|
39,263
|
|
|
2,822,830
|
|
30,377
|
|
|
3,879,713
|
|
74,367
|
|
|
2,856,313
|
|
44,397
|
|
||||||||
Gross derivative instruments, before netting
|
$
|
4,142,260
|
|
42,213
|
|
|
$
|
2,922,830
|
|
30,752
|
|
|
$
|
4,104,713
|
|
77,637
|
|
|
$
|
2,956,313
|
|
45,189
|
|
||||
Less: Legally enforceable master netting agreements
|
|
4,311
|
|
|
|
4,311
|
|
|
|
24,252
|
|
|
|
24,254
|
|
||||||||||||
Less: Cash collateral posted
|
|
3,724
|
|
|
|
697
|
|
|
|
11,475
|
|
|
|
600
|
|
||||||||||||
Total derivative instruments, after netting
|
|
$
|
34,178
|
|
|
|
$
|
25,744
|
|
|
|
$
|
41,910
|
|
|
|
$
|
20,335
|
|
(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. The Chicago Mercantile Exchange have amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives that clear as settlements rather than collateral, effective January 3, 2017. One of Webster's counterparty relationships was impacted by this change, resulting in the presentation of that relationship on a settlement basis, as a single unit of account, at March, 31, 2017, versus a netting basis at December 31, 2016.
|
(2)
|
Derivative positions not subject to a legally enforceable master netting agreement are reported on a gross basis in the accompanying Condensed Consolidated Balance Sheets.
|
(3)
|
Notional amounts include mandatory forward commitments of $59.0 million, while notional amounts do not include approved floating rate commitments of $18.6 million, at March 31, 2017.
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Interest rate derivatives
|
$
|
249
|
|
|
$
|
2,333
|
|
RPAs
|
53
|
|
|
(86
|
)
|
||
Mortgage banking derivatives
|
(2,041
|
)
|
|
(201
|
)
|
||
Other
|
(344
|
)
|
|
(513
|
)
|
||
Total impact on other non-interest income
|
$
|
(2,083
|
)
|
|
$
|
1,533
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||
(In thousands)
|
Gross
Amount
|
Amount
Offset
|
Net
Amount (1) (2)
|
|
Gross
Amount
|
Amount
Offset
|
Net
Amount (1) (2)
|
||||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
||||||||||||
Hedged Accounting Positions
|
$
|
2,950
|
|
$
|
(2,678
|
)
|
$
|
272
|
|
|
$
|
3,270
|
|
$
|
(3,270
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
5,357
|
|
(5,357
|
)
|
—
|
|
|
32,457
|
|
(32,457
|
)
|
—
|
|
||||||
Total
|
$
|
8,307
|
|
$
|
(8,035
|
)
|
$
|
272
|
|
|
$
|
35,727
|
|
$
|
(35,727
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
||||||||||||
Hedged Accounting Positions
|
$
|
375
|
|
$
|
(375
|
)
|
$
|
—
|
|
|
$
|
792
|
|
$
|
(792
|
)
|
$
|
—
|
|
Non-Hedged Accounting Positions
|
4,837
|
|
(4,633
|
)
|
204
|
|
|
24,508
|
|
(24,062
|
)
|
446
|
|
||||||
Total
|
$
|
5,212
|
|
$
|
(5,008
|
)
|
$
|
204
|
|
|
$
|
25,300
|
|
$
|
(24,854
|
)
|
$
|
446
|
|
(1)
|
Net amount is net of $3.0 million and $10.9 million of cash collateral at March 31, 2017 and December 31, 2016, respectively, as presented in the accompanying Condensed Consolidated Balance Sheets.
|
(2)
|
Net amount excludes $31.9 million and $42.5 million of initial margin requirements posted at the derivative clearing organization at March 31, 2017 and December 31, 2016, respectively. Initial margin is recorded as a component of accrued interest receivable and other assets in the accompanying Condensed 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 March 31, 2017
|
|||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Financial assets held at fair value:
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
$
|
1,853
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,853
|
|
Agency CMO
|
—
|
|
387,207
|
|
—
|
|
387,207
|
|
||||
Agency MBS
|
—
|
|
913,613
|
|
—
|
|
913,613
|
|
||||
Agency CMBS
|
—
|
|
587,115
|
|
—
|
|
587,115
|
|
||||
CMBS
|
—
|
|
500,738
|
|
—
|
|
500,738
|
|
||||
CLO
|
—
|
|
368,657
|
|
—
|
|
368,657
|
|
||||
Single issuer trust preferred securities
|
—
|
|
29,326
|
|
—
|
|
29,326
|
|
||||
Corporate debt securities
|
—
|
|
108,551
|
|
—
|
|
108,551
|
|
||||
Total available-for-sale investment securities
|
1,853
|
|
2,895,207
|
|
—
|
|
2,897,060
|
|
||||
Gross derivative instruments, before netting (1)
|
32
|
|
42,181
|
|
—
|
|
42,213
|
|
||||
Investments held in Rabbi Trust
|
5,087
|
|
—
|
|
—
|
|
5,087
|
|
||||
Alternative investments
|
—
|
|
—
|
|
6,312
|
|
6,312
|
|
||||
Originated loans held for sale
|
—
|
|
28,698
|
|
—
|
|
28,698
|
|
||||
Total financial assets held at fair value
|
$
|
6,972
|
|
$
|
2,966,086
|
|
$
|
6,312
|
|
$
|
2,979,370
|
|
Financial liabilities held at fair value:
|
|
|
|
|
||||||||
Gross derivative instruments, before netting (1)
|
$
|
188
|
|
$
|
30,564
|
|
$
|
—
|
|
$
|
30,752
|
|
|
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
|
|
||||
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
|
—
|
|
60,260
|
|
—
|
|
60,260
|
|
||||
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
|
|
(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 12: Derivative Financial Instruments.
|
(In thousands)
|
Alternative Investments
|
||
Balance at January1, 2017
|
$
|
5,502
|
|
Unrealized gain included in net income
|
57
|
|
|
Purchases/capital funding
|
795
|
|
|
Payments
|
(42
|
)
|
|
Balance at March 31, 2017
|
$
|
6,312
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||
(In thousands)
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity investment securities
|
$
|
4,212,050
|
|
|
$
|
4,170,403
|
|
|
$
|
4,160,658
|
|
|
$
|
4,125,125
|
|
Loans held for sale
|
—
|
|
|
—
|
|
|
7,317
|
|
|
7,444
|
|
||||
Level 3
|
|
|
|
|
|
|
|
||||||||
Loans and leases, net
|
16,895,392
|
|
|
16,715,292
|
|
|
16,832,268
|
|
|
16,678,106
|
|
||||
Mortgage servicing assets
|
24,336
|
|
|
44,140
|
|
|
24,466
|
|
|
52,075
|
|
||||
Alternative investments
|
9,718
|
|
|
13,008
|
|
|
11,034
|
|
|
13,189
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Deposit liabilities, other than time deposits
|
$
|
18,223,558
|
|
|
$
|
18,223,558
|
|
|
$
|
17,279,049
|
|
|
$
|
17,279,049
|
|
Time deposits
|
2,018,099
|
|
|
2,014,304
|
|
|
2,024,808
|
|
|
2,024,395
|
|
||||
Securities sold under agreements to repurchase and other borrowings
|
807,573
|
|
|
812,344
|
|
|
949,526
|
|
|
955,660
|
|
||||
FHLB advances (1)
|
1,922,832
|
|
|
1,905,077
|
|
|
2,842,908
|
|
|
2,825,101
|
|
||||
Long-term debt (1)
|
225,577
|
|
|
231,947
|
|
|
225,514
|
|
|
225,514
|
|
(1)
|
The following adjustments to the carrying amount are not included for determination of fair value, see Note 8: Borrowings:
|
|
|
Three months ended March 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
(In thousands)
|
Pension Plan
|
SERP
|
Other Benefits
|
|
Pension Plan
|
SERP
|
Other Benefits
|
||||||||||||
Service cost
|
$
|
12
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
12
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
1,813
|
|
92
|
|
25
|
|
|
2,098
|
|
97
|
|
31
|
|
||||||
Expected return on plan assets
|
(3,073
|
)
|
—
|
|
—
|
|
|
(2,565
|
)
|
—
|
|
—
|
|
||||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
4
|
|
||||||
Recognized net loss
|
1,417
|
|
213
|
|
8
|
|
|
1,690
|
|
130
|
|
9
|
|
||||||
Net periodic benefit cost
|
$
|
169
|
|
$
|
305
|
|
$
|
33
|
|
|
$
|
1,235
|
|
$
|
227
|
|
$
|
44
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Stock options
|
$
|
—
|
|
|
$
|
43
|
|
Restricted stock
|
3,318
|
|
|
2,740
|
|
||
Total stock compensation expense
|
$
|
3,318
|
|
|
$
|
2,783
|
|
|
Restricted Stock Awards Outstanding
|
|
Stock Options Outstanding
|
||||||||||||||||||||
|
Time-Based
|
|
Performance-Based
|
|
|||||||||||||||||||
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Units
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Exercise Price
|
||||||||||||
Outstanding, at January1, 2017
|
253,361
|
|
$
|
32.24
|
|
|
2,158
|
|
$
|
32.89
|
|
|
116,184
|
|
$
|
33.62
|
|
|
1,072,974
|
|
$
|
21.24
|
|
Granted
|
132,192
|
|
55.93
|
|
|
8,129
|
|
56.07
|
|
|
89,581
|
|
56.18
|
|
|
—
|
|
—
|
|
||||
Exercised options
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
173,093
|
|
27.17
|
|
||||
Vested restricted stock awards (1)
|
56,801
|
|
34.31
|
|
|
2,835
|
|
38.43
|
|
|
33,596
|
|
35.85
|
|
|
—
|
|
—
|
|
||||
Forfeited
|
3,567
|
|
31.32
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Outstanding and exercisable, at March 31, 2017
|
325,185
|
|
$
|
41.68
|
|
|
7,452
|
|
$
|
56.07
|
|
|
172,169
|
|
$
|
44.95
|
|
|
899,881
|
|
$
|
20.10
|
|
(1)
|
Vested for purposes of recording compensation expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2017
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking
|
HSA
Bank
|
Private
Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (expense)
|
$
|
75,273
|
|
$
|
93,182
|
|
$
|
24,052
|
|
$
|
2,974
|
|
$
|
(2,817
|
)
|
$
|
192,664
|
|
Provision (benefit) for loan and lease losses
|
7,015
|
|
4,183
|
|
—
|
|
(218
|
)
|
(480
|
)
|
10,500
|
|
||||||
Net interest income (expense) after provision for loan and lease losses
|
68,258
|
|
88,999
|
|
24,052
|
|
3,192
|
|
(2,337
|
)
|
182,164
|
|
||||||
Non-interest income
|
11,000
|
|
25,371
|
|
19,271
|
|
2,424
|
|
4,976
|
|
63,042
|
|
||||||
Non-interest expense
|
32,967
|
|
94,395
|
|
28,239
|
|
5,157
|
|
3,026
|
|
163,784
|
|
||||||
Income (loss) before income tax expense
|
46,291
|
|
19,975
|
|
15,084
|
|
459
|
|
(387
|
)
|
81,422
|
|
||||||
Income tax expense (benefit)
|
12,480
|
|
5,385
|
|
4,066
|
|
124
|
|
(104
|
)
|
21,951
|
|
||||||
Net income (loss)
|
$
|
33,811
|
|
$
|
14,590
|
|
$
|
11,018
|
|
$
|
335
|
|
$
|
(283
|
)
|
$
|
59,471
|
|
|
Three months ended March 31, 2016
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking
|
HSA
Bank
|
Private
Banking
|
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
Net interest income (expense)
|
$
|
65,422
|
|
$
|
90,056
|
|
$
|
19,919
|
|
$
|
2,873
|
|
$
|
(2,118
|
)
|
$
|
176,152
|
|
Provision (benefit) for loan and lease losses
|
10,248
|
|
6,244
|
|
—
|
|
29
|
|
(921
|
)
|
15,600
|
|
||||||
Net interest income (expense) after provision for loan and lease losses
|
55,174
|
|
83,812
|
|
19,919
|
|
2,844
|
|
(1,197
|
)
|
160,552
|
|
||||||
Non-interest income
|
8,783
|
|
26,640
|
|
19,955
|
|
2,365
|
|
4,631
|
|
62,374
|
|
||||||
Non-interest expense
|
28,689
|
|
90,876
|
|
24,257
|
|
5,371
|
|
3,252
|
|
152,445
|
|
||||||
Income (loss) before income tax expense
|
35,268
|
|
19,576
|
|
15,617
|
|
(162
|
)
|
182
|
|
70,481
|
|
||||||
Income tax expense (benefit)
|
11,727
|
|
6,509
|
|
5,192
|
|
(54
|
)
|
60
|
|
23,434
|
|
||||||
Net income (loss)
|
$
|
23,541
|
|
$
|
13,067
|
|
$
|
10,425
|
|
$
|
(108
|
)
|
$
|
122
|
|
$
|
47,047
|
|
|
Total Assets
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking
|
Community
Banking |
HSA
Bank
|
Private
Banking |
Corporate and
Reconciling
|
Consolidated
Total
|
||||||||||||
At March 31, 2017
|
$
|
8,773,531
|
|
$
|
8,694,622
|
|
$
|
81,944
|
|
$
|
542,246
|
|
$
|
7,910,573
|
|
$
|
26,002,916
|
|
At December 31, 2016
|
8,518,830
|
|
8,655,789
|
|
83,987
|
|
550,615
|
|
8,263,308
|
|
26,072,529
|
|
(In thousands)
|
At March 31, 2017
|
|
At December 31, 2016
|
||||
Commitments to extend credit
|
$
|
5,024,410
|
|
|
$
|
5,224,280
|
|
Standby letter of credit
|
128,780
|
|
|
128,985
|
|
||
Commercial letter of credit
|
40,881
|
|
|
46,497
|
|
||
Total credit-related financial instruments with off-balance sheet risk
|
$
|
5,194,071
|
|
|
$
|
5,399,762
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
2,287
|
|
|
$
|
2,119
|
|
Provision
|
368
|
|
|
7
|
|
||
Ending balance
|
$
|
2,655
|
|
|
$
|
2,126
|
|
▪
|
projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items;
|
▪
|
statements of plans, objectives and expectations of Webster or its management or Board of Directors;
|
▪
|
statements of future economic performance; and
|
▪
|
statements of assumptions underlying such statements.
|
▪
|
local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact;
|
▪
|
volatility and disruption in national and international financial markets;
|
▪
|
government intervention in the U.S. financial system;
|
▪
|
changes in the level of non-performing assets and charge-offs;
|
▪
|
changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
|
▪
|
adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;
|
▪
|
inflation, interest rate, securities market and monetary fluctuations;
|
▪
|
the timely development and acceptance of new products and services and perceived overall value of these products and services by customers;
|
▪
|
changes in consumer spending, borrowings and savings habits;
|
▪
|
technological changes and cyber-security matters;
|
▪
|
the ability to increase market share and control expenses;
|
▪
|
changes in the competitive environment among banks, financial holding companies and other financial services providers;
|
▪
|
the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply, including the Dodd-Frank Act;
|
▪
|
the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters;
|
▪
|
the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; and
|
▪
|
our success at managing the risks involved in the foregoing items.
|
•
|
allowance for loan and lease losses;
|
•
|
fair value measurements for valuation of investments and other financial instruments;
|
•
|
evaluation for impairment of goodwill and other intangible assets; and
|
•
|
assessing the realizability of deferred tax assets and the measurement of uncertain tax positions.
|
|
At or for the three months ended March 31,
|
||||||
(In thousands, except per share and ratio data)
|
2017
|
|
2016
|
||||
Earnings:
|
|
|
|
||||
Net interest income
|
$
|
192,664
|
|
|
$
|
176,152
|
|
Provision for loan and lease losses
|
10,500
|
|
|
15,600
|
|
||
Total non-interest income
|
63,042
|
|
|
62,374
|
|
||
Total non-interest expense
|
163,784
|
|
|
152,445
|
|
||
Net income
|
59,471
|
|
|
47,047
|
|
||
Earnings applicable to common shareholders
|
57,342
|
|
|
44,921
|
|
||
Share Data:
|
|
|
|
||||
Weighted-average common shares outstanding - diluted
|
92,342
|
|
|
91,809
|
|
||
Diluted earnings per common share
|
$
|
0.62
|
|
|
$
|
0.49
|
|
Dividends and dividend equivalents declared per common share
|
0.25
|
|
|
0.23
|
|
||
Dividends declared per Series E preferred share
|
400.00
|
|
|
400.00
|
|
||
Book value per common share
|
26.45
|
|
|
25.24
|
|
||
Tangible book value per common share (non-GAAP)
|
20.26
|
|
|
18.95
|
|
||
Selected Ratios:
|
|
|
|
||||
Net interest margin
|
3.22
|
%
|
|
3.11
|
%
|
||
Return on average assets (annualized basis)
|
0.91
|
|
|
0.76
|
|
||
Return on average common shareholders' equity (annualized basis)
|
9.43
|
|
|
7.80
|
|
||
CET1 risk-based capital
|
10.75
|
|
|
10.61
|
|
||
Tangible common equity ratio (non-GAAP)
|
7.34
|
|
|
7.13
|
|
||
Return on average tangible common shareholders' equity (annualized basis) (non-GAAP)
|
12.47
|
|
|
10.63
|
|
||
Efficiency ratio (non-GAAP)
|
62.10
|
|
|
62.00
|
|
|
At March 31,
|
||||||
(Dollars and shares in thousands, except per share data)
|
2017
|
|
2016
|
||||
Tangible book value per common share (non-GAAP):
|
|
|
|
||||
Shareholders' equity (GAAP)
|
$
|
2,560,358
|
|
|
$
|
2,434,786
|
|
Less: Preferred stock (GAAP)
|
122,710
|
|
|
122,710
|
|
||
Goodwill and other intangible assets (GAAP)
|
570,992
|
|
|
576,145
|
|
||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,866,656
|
|
|
$
|
1,735,931
|
|
Common shares outstanding
|
92,154
|
|
|
91,617
|
|
||
Tangible book value per common share (non-GAAP)
|
$
|
20.26
|
|
|
$
|
18.95
|
|
|
|
|
|
||||
Tangible common equity ratio (non-GAAP):
|
|
|
|
||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,866,656
|
|
|
$
|
1,735,931
|
|
Total assets (GAAP)
|
$
|
26,002,916
|
|
|
$
|
24,932,091
|
|
Less: Goodwill and other intangible assets (GAAP)
|
570,992
|
|
|
576,145
|
|
||
Tangible assets (non-GAAP)
|
$
|
25,431,924
|
|
|
$
|
24,355,946
|
|
Tangible common equity ratio (non-GAAP)
|
7.34
|
%
|
|
7.13
|
%
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
2017
|
|
2016
|
||||
Return on average tangible common shareholders' equity (non-GAAP):
|
|
|
|
||||
Net income (GAAP)
|
$
|
59,471
|
|
|
$
|
47,047
|
|
Less: Preferred stock dividends (GAAP)
|
2,024
|
|
|
2,024
|
|
||
Add: Intangible assets amortization, tax-affected at 35% (GAAP)
|
686
|
|
|
1,010
|
|
||
Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP)
|
$
|
58,133
|
|
|
$
|
46,033
|
|
Income adjusted for preferred stock dividends and intangible assets amortization, annualized basis (non-GAAP)
|
$
|
232,532
|
|
|
$
|
184,132
|
|
Average shareholders' equity (non-GAAP)
|
$
|
2,559,354
|
|
|
$
|
2,432,554
|
|
Less: Average preferred stock (non-GAAP)
|
122,710
|
|
|
122,710
|
|
||
Average goodwill and other intangible assets (non-GAAP)
|
571,611
|
|
|
577,029
|
|
||
Average tangible common shareholders' equity (non-GAAP)
|
$
|
1,865,033
|
|
|
$
|
1,732,815
|
|
Return on average tangible common shareholders' equity (non-GAAP)
|
12.47
|
%
|
|
10.63
|
%
|
||
|
|
|
|
||||
Efficiency ratio (non-GAAP):
|
|
|
|
||||
Non-interest expense (GAAP)
|
$
|
163,784
|
|
|
$
|
152,445
|
|
Less: Foreclosed property activity (GAAP)
|
74
|
|
|
(158
|
)
|
||
Intangible assets amortization (GAAP)
|
1,055
|
|
|
1,554
|
|
||
Other expense (non-GAAP)
|
1,123
|
|
|
1,217
|
|
||
Non-interest expense (non-GAAP)
|
$
|
161,532
|
|
|
$
|
149,832
|
|
Net interest income (GAAP)
|
$
|
192,664
|
|
|
$
|
176,152
|
|
Add: Tax-equivalent adjustment (non-GAAP)
|
4,033
|
|
|
2,975
|
|
||
Non-interest income (GAAP)
|
63,042
|
|
|
62,374
|
|
||
Less: Gain on sale of investment securities, net (GAAP)
|
—
|
|
|
320
|
|
||
Other (non-GAAP)
|
(391
|
)
|
|
(481
|
)
|
||
Income (non-GAAP)
|
$
|
260,130
|
|
|
$
|
241,662
|
|
Efficiency ratio (non-GAAP)
|
62.10
|
%
|
|
62.00
|
%
|
|
Three months ended March 31,
|
||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Yield/Rate
|
|
Average
Balance |
Interest
|
Yield/Rate
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
$
|
17,041,156
|
|
$
|
168,729
|
|
3.97
|
%
|
|
$
|
15,798,897
|
|
$
|
150,536
|
|
3.79
|
%
|
Securities (based upon historical amortized cost)
|
7,071,274
|
|
52,851
|
|
2.98
|
|
|
6,895,407
|
|
53,012
|
|
3.07
|
|
||||
FHLB and FRB stock
|
182,211
|
|
1,687
|
|
3.76
|
|
|
188,347
|
|
1,417
|
|
3.03
|
|
||||
Interest-bearing deposits
|
68,157
|
|
130
|
|
0.77
|
|
|
57,337
|
|
72
|
|
0.49
|
|
||||
Loans held for sale
|
36,239
|
|
316
|
|
3.49
|
|
|
26,623
|
|
273
|
|
4.10
|
|
||||
Total interest-earning assets
|
24,399,037
|
|
$
|
223,713
|
|
3.67
|
%
|
|
22,966,611
|
|
$
|
205,310
|
|
3.56
|
%
|
||
Non-interest-earning assets
|
1,642,732
|
|
|
|
|
1,822,608
|
|
|
|
||||||||
Total Assets
|
$
|
26,041,769
|
|
|
|
|
$
|
24,789,219
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
$
|
3,935,232
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,665,928
|
|
$
|
—
|
|
—
|
%
|
Savings, checking & money market deposits
|
14,060,535
|
|
7,780
|
|
0.22
|
|
|
12,761,677
|
|
6,615
|
|
0.21
|
|
||||
Time deposits
|
2,022,522
|
|
5,655
|
|
1.13
|
|
|
2,057,650
|
|
5,684
|
|
1.11
|
|
||||
Total deposits
|
20,018,289
|
|
13,435
|
|
0.27
|
|
|
18,485,255
|
|
12,299
|
|
0.27
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase and other borrowings
|
905,239
|
|
3,540
|
|
1.56
|
|
|
1,048,997
|
|
4,173
|
|
1.57
|
|
||||
FHLB advances
|
2,136,804
|
|
7,493
|
|
1.40
|
|
|
2,337,746
|
|
7,247
|
|
1.23
|
|
||||
Long-term debt
|
225,541
|
|
2,548
|
|
4.52
|
|
|
226,191
|
|
2,464
|
|
4.36
|
|
||||
Total borrowings
|
3,267,584
|
|
13,581
|
|
1.66
|
|
|
3,612,934
|
|
13,884
|
|
1.52
|
|
||||
Total interest-bearing liabilities
|
23,285,873
|
|
$
|
27,016
|
|
0.47
|
%
|
|
22,098,189
|
|
$
|
26,183
|
|
0.47
|
%
|
||
Non-interest-bearing liabilities
|
196,542
|
|
|
|
|
258,476
|
|
|
|
||||||||
Total liabilities
|
23,482,415
|
|
|
|
|
22,356,665
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
122,710
|
|
|
|
|
122,710
|
|
|
|
||||||||
Common shareholders' equity
|
2,436,644
|
|
|
|
|
2,309,844
|
|
|
|
||||||||
Total shareholders' equity
|
2,559,354
|
|
|
|
|
2,432,554
|
|
|
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
26,041,769
|
|
|
|
|
$
|
24,789,219
|
|
|
|
||||||
Tax-equivalent net interest income
|
|
$
|
196,697
|
|
|
|
|
$
|
179,127
|
|
|
||||||
Less: Tax-equivalent adjustments
|
|
(4,033
|
)
|
|
|
|
(2,975
|
)
|
|
||||||||
Net interest income
|
|
$
|
192,664
|
|
|
|
|
$
|
176,152
|
|
|
||||||
Net interest margin
|
|
|
3.22
|
%
|
|
|
|
3.11
|
%
|
||||||||
|
•
|
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.
|
•
|
net interest income increased $16.5 million,
|
•
|
loan related fees increased $2.2 million, and
|
•
|
provision for loan and lease loss decreased $5.1 million.
|
•
|
compensation and benefits increased $7.6 million, and
|
•
|
other income decreased $2.4 million million primarily as a result of a fair value adjustment in the contingent receivable recognized during the prior year period.
|
|
Three months ended March 31,
|
||||||||
|
2017 vs. 2016
Increase (decrease) due to |
||||||||
(In thousands)
|
Rate (1)
|
Volume
|
Total
|
||||||
Interest on interest-earning assets:
|
|
|
|
||||||
Loans and leases
|
$
|
6,619
|
|
$
|
11,575
|
|
$
|
18,194
|
|
Loans held for sale
|
1,275
|
|
(1,232
|
)
|
43
|
|
|||
Investments (2)
|
(1,295
|
)
|
1,460
|
|
165
|
|
|||
Total interest income
|
$
|
6,599
|
|
$
|
11,803
|
|
$
|
18,402
|
|
Interest on interest-bearing liabilities:
|
|
|
|
||||||
Deposits
|
$
|
500
|
|
$
|
635
|
|
$
|
1,135
|
|
Borrowings
|
775
|
|
(1,078
|
)
|
(303
|
)
|
|||
Total interest expense
|
$
|
1,275
|
|
$
|
(443
|
)
|
$
|
832
|
|
Net change in net interest income
|
$
|
5,324
|
|
$
|
12,246
|
|
$
|
17,570
|
|
(1)
|
The change attributable to mix, a combined impact of rate and volume, is included with the change due to rate.
|
(2)
|
Investments include: Securities, FHLB and FRB stock, and Interest-bearing deposits.
|
|
Three months ended March 31,
|
|||||
(In thousands)
|
2017
|
2016
|
||||
Interest rate swaps on repurchase agreements
|
$
|
—
|
|
$
|
361
|
|
Interest rate swaps on FHLB advances
|
1,768
|
|
2,177
|
|
||
Interest rate swaps on senior fixed-rate notes
|
76
|
|
76
|
|
||
Interest rate swaps on brokered CDs and deposits
|
195
|
|
195
|
|
||
Net increase to interest expense on borrowings
|
$
|
2,039
|
|
$
|
2,809
|
|
|
Three months ended March 31,
|
|
|
|||||||||
|
|
Increase (decrease)
|
||||||||||
(Dollars in thousands)
|
2017
|
2016
|
|
Amount
|
Percent
|
|||||||
Deposit service fees
|
$
|
37,006
|
|
$
|
34,925
|
|
|
$
|
2,081
|
|
6.0
|
%
|
Loan related fees
|
7,208
|
|
5,044
|
|
|
2,164
|
|
42.9
|
|
|||
Wealth and investment services
|
7,273
|
|
7,195
|
|
|
78
|
|
1.1
|
|
|||
Mortgage banking activities
|
2,266
|
|
3,260
|
|
|
(994
|
)
|
(30.5
|
)
|
|||
Increase in cash surrender value of life insurance policies
|
3,575
|
|
3,653
|
|
|
(78
|
)
|
(2.1
|
)
|
|||
Gain on sale of investment securities, net
|
—
|
|
320
|
|
|
(320
|
)
|
(100.0
|
)
|
|||
Impairment loss on securities
|
—
|
|
(149
|
)
|
|
149
|
|
100.0
|
|
|||
Other income
|
5,714
|
|
8,126
|
|
|
(2,412
|
)
|
(29.7
|
)
|
|||
Total non-interest income
|
$
|
63,042
|
|
$
|
62,374
|
|
|
$
|
668
|
|
1.1
|
%
|
|
Three months ended March 31,
|
|
|
|||||||||
|
|
Increase (decrease)
|
||||||||||
(Dollars in thousands)
|
2017
|
2016
|
|
Amount
|
Percent
|
|||||||
Compensation and benefits
|
$
|
88,276
|
|
$
|
80,710
|
|
|
$
|
7,566
|
|
9.4
|
%
|
Occupancy
|
16,179
|
|
15,069
|
|
|
1,110
|
|
7.4
|
|
|||
Technology and equipment
|
21,608
|
|
19,938
|
|
|
1,670
|
|
8.4
|
|
|||
Intangible assets amortization
|
1,055
|
|
1,554
|
|
|
(499
|
)
|
(32.1
|
)
|
|||
Marketing
|
5,441
|
|
4,924
|
|
|
517
|
|
10.5
|
|
|||
Professional and outside services
|
4,276
|
|
2,811
|
|
|
1,465
|
|
52.1
|
|
|||
Deposit insurance
|
6,732
|
|
6,786
|
|
|
(54
|
)
|
(0.8
|
)
|
|||
Other expense
|
20,217
|
|
20,653
|
|
|
(436
|
)
|
(2.1
|
)
|
|||
Total non-interest expense
|
$
|
163,784
|
|
$
|
152,445
|
|
|
$
|
11,339
|
|
7.4
|
%
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Net income (loss):
|
|
|
|
||||
Commercial Banking
|
$
|
33,811
|
|
|
$
|
23,541
|
|
Community Banking
|
14,590
|
|
|
13,067
|
|
||
HSA Bank
|
11,018
|
|
|
10,425
|
|
||
Private Banking
|
335
|
|
|
(108
|
)
|
||
Corporate and Reconciling
|
(283
|
)
|
|
122
|
|
||
Consolidated total
|
$
|
59,471
|
|
|
$
|
47,047
|
|
|
At March 31, 2017
|
|||||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Private Banking
|
Corporate and
Reconciling |
Total
|
||||||||||||
Total assets
|
$
|
8,773,531
|
|
$
|
8,694,622
|
|
$
|
81,944
|
|
$
|
542,246
|
|
$
|
7,910,573
|
|
$
|
26,002,916
|
|
Loans and leases
|
8,573,712
|
|
7,920,681
|
|
162
|
|
538,101
|
|
61,843
|
|
17,094,499
|
|
||||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
—
|
|
538,373
|
|
||||||
Deposits
|
3,674,777
|
|
11,155,693
|
|
4,793,734
|
|
242,887
|
|
374,566
|
|
20,241,657
|
|
||||||
Not included in above amounts:
|
|
|
|
|
|
|
||||||||||||
Assets under administration/management
|
—
|
|
3,078,175
|
|
992,375
|
|
1,854,538
|
|
—
|
|
5,925,088
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
|
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
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Net interest income
|
$
|
75,273
|
|
|
$
|
65,422
|
|
Provision for loan and lease losses
|
7,015
|
|
|
10,248
|
|
||
Net interest income after provision
|
68,258
|
|
|
55,174
|
|
||
Non-interest income
|
11,000
|
|
|
8,783
|
|
||
Non-interest expense
|
32,967
|
|
|
28,689
|
|
||
Income before income taxes
|
46,291
|
|
|
35,268
|
|
||
Income tax expense
|
12,480
|
|
|
11,727
|
|
||
Net income
|
$
|
33,811
|
|
|
$
|
23,541
|
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Total assets
|
$
|
8,773,531
|
|
|
$
|
8,518,830
|
|
Loans and leases
|
8,573,712
|
|
|
8,519,001
|
|
||
Deposits
|
3,674,777
|
|
|
3,365,516
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Net interest income
|
$
|
93,182
|
|
|
$
|
90,056
|
|
Provision for loan and lease losses
|
4,183
|
|
|
6,244
|
|
||
Net interest income after provision
|
88,999
|
|
|
83,812
|
|
||
Non-interest income
|
25,371
|
|
|
26,640
|
|
||
Non-interest expense
|
94,395
|
|
|
90,876
|
|
||
Income before income taxes
|
19,975
|
|
|
19,576
|
|
||
Income tax expense
|
5,385
|
|
|
6,509
|
|
||
Net income
|
$
|
14,590
|
|
|
$
|
13,067
|
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Total assets
|
$
|
8,694,622
|
|
|
$
|
8,655,789
|
|
Loans
|
7,920,681
|
|
|
7,894,582
|
|
||
Deposits
|
11,155,693
|
|
|
10,970,977
|
|
||
Not included in above amounts:
|
|
|
|
||||
Assets under administration
|
3,078,175
|
|
|
2,980,113
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Net interest income
|
$
|
24,052
|
|
|
$
|
19,919
|
|
Non-interest income
|
19,271
|
|
|
19,955
|
|
||
Non-interest expense
|
28,239
|
|
|
24,257
|
|
||
Income before income taxes
|
15,084
|
|
|
15,617
|
|
||
Income tax expense
|
4,066
|
|
|
5,192
|
|
||
Net income
|
$
|
11,018
|
|
|
$
|
10,425
|
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Total assets
|
$
|
81,944
|
|
|
$
|
83,987
|
|
Deposits
|
4,793,734
|
|
|
4,362,503
|
|
||
Not included in above amounts:
|
|
|
|
||||
Assets under administration
|
992,375
|
|
|
878,190
|
|
|
Three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Net interest income
|
$
|
2,974
|
|
|
$
|
2,873
|
|
(Benefit) provision for loan and lease losses
|
(218
|
)
|
|
29
|
|
||
Net interest income after (benefit) provision
|
3,192
|
|
|
2,844
|
|
||
Non-interest income
|
2,424
|
|
|
2,365
|
|
||
Non-interest expense
|
5,157
|
|
|
5,371
|
|
||
Loss before income taxes
|
459
|
|
|
(162
|
)
|
||
Income tax benefit
|
124
|
|
|
(54
|
)
|
||
Net income (loss)
|
$
|
335
|
|
|
$
|
(108
|
)
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Total assets
|
$
|
542,246
|
|
|
$
|
550,615
|
|
Loans
|
538,101
|
|
|
547,904
|
|
||
Deposits
|
242,887
|
|
|
227,015
|
|
||
Not included in above amounts:
|
|
|
|
||||
Assets under administration/management
|
1,854,538
|
|
|
1,781,840
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|
Amortized
Cost |
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
1,854
|
|
$
|
—
|
|
$
|
(1
|
)
|
$
|
1,853
|
|
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
Agency CMO
|
387,389
|
|
3,158
|
|
(3,340
|
)
|
387,207
|
|
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
||||||||
Agency MBS
|
929,729
|
|
4,049
|
|
(20,165
|
)
|
913,613
|
|
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
||||||||
Agency CMBS
|
604,335
|
|
—
|
|
(17,220
|
)
|
587,115
|
|
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
||||||||
CMBS
|
497,579
|
|
3,472
|
|
(313
|
)
|
500,738
|
|
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
||||||||
CLO
|
366,102
|
|
2,577
|
|
(22
|
)
|
368,657
|
|
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
||||||||
Single issuer trust preferred securities
|
30,412
|
|
97
|
|
(1,183
|
)
|
29,326
|
|
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
||||||||
Corporate debt securities
|
107,862
|
|
1,108
|
|
(419
|
)
|
108,551
|
|
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
||||||||
Securities available-for-sale
|
$
|
2,925,262
|
|
$
|
14,461
|
|
$
|
(42,663
|
)
|
$
|
2,897,060
|
|
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
317,641
|
|
$
|
1,678
|
|
$
|
(3,554
|
)
|
$
|
315,765
|
|
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
Agency MBS
|
2,330,163
|
|
23,784
|
|
(43,325
|
)
|
2,310,622
|
|
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
||||||||
Agency CMBS
|
591,154
|
|
116
|
|
(3,062
|
)
|
588,208
|
|
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
||||||||
Municipal bonds and notes
|
690,652
|
|
3,780
|
|
(23,890
|
)
|
670,542
|
|
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
||||||||
CMBS
|
281,100
|
|
3,322
|
|
(503
|
)
|
283,919
|
|
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
||||||||
Private Label MBS
|
1,340
|
|
7
|
|
—
|
|
1,347
|
|
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
||||||||
Securities held-to-maturity
|
$
|
4,212,050
|
|
$
|
32,687
|
|
$
|
(74,334
|
)
|
$
|
4,170,403
|
|
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||
(Dollars in thousands)
|
Amount
|
%
|
|
Amount
|
%
|
||||
Residential
|
$
|
4,268,028
|
|
25.0
|
|
$
|
4,232,771
|
|
24.9
|
Consumer:
|
|
|
|
|
|
||||
Home equity
|
2,292,759
|
|
13.4
|
|
2,330,508
|
|
13.7
|
||
Liquidating - home equity
|
61,843
|
|
0.4
|
|
64,975
|
|
0.4
|
||
Other consumer
|
264,680
|
|
1.5
|
|
274,336
|
|
1.6
|
||
Total consumer
|
2,619,282
|
|
15.3
|
|
2,669,819
|
|
15.7
|
||
Commercial:
|
|
|
|
|
|
||||
Commercial non-mortgage
|
4,187,006
|
|
24.5
|
|
4,151,740
|
|
24.4
|
||
Asset-based
|
850,360
|
|
5.0
|
|
808,836
|
|
4.8
|
||
Total commercial
|
5,037,366
|
|
29.5
|
|
4,960,576
|
|
29.1
|
||
Commercial real estate:
|
|
|
|
|
|
||||
Commercial real estate
|
4,121,665
|
|
24.1
|
|
4,141,025
|
|
24.3
|
||
Commercial construction
|
413,913
|
|
2.4
|
|
375,041
|
|
2.2
|
||
Total commercial real estate
|
4,535,578
|
|
26.5
|
|
4,516,066
|
|
26.5
|
||
Equipment financing
|
614,556
|
|
3.6
|
|
630,040
|
|
3.7
|
||
Net unamortized premiums
|
11,628
|
|
0.1
|
|
9,402
|
|
0.1
|
||
Net deferred fees
|
8,061
|
|
—
|
|
7,914
|
|
—
|
||
Total loans and leases
|
$
|
17,094,499
|
|
100.0
|
|
$
|
17,026,588
|
|
100.0
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||
Non-performing loans and leases as a percentage of loans and leases
|
1.02
|
%
|
|
0.79
|
%
|
Non-performing assets as a percentage of loans and leases plus OREO
|
1.04
|
|
|
0.81
|
|
Non-performing assets as a percentage of total assets
|
0.68
|
|
|
0.53
|
|
Loans and leases over 30 days past due and accruing income
|
0.19
|
|
|
0.25
|
|
ALLL as a percentage of non-performing loans and leases
|
114.54
|
|
|
144.98
|
|
ALLL as a percentage of loans and leases
|
1.16
|
|
|
1.14
|
|
Net charge-offs as a percentage of average loans and leases (1)
|
0.13
|
|
|
0.23
|
|
Ratio of ALLL to net charge-offs (1)
|
8.71x
|
|
|
5.25x
|
|
(1)
|
Calculated for the March 31, 2017 period based on the year-to-date net charge-offs, annualized.
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||
(Dollars in thousands)
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
||||
Residential
|
$
|
11,530
|
|
0.27
|
|
$
|
11,202
|
|
0.26
|
Consumer:
|
|
|
|
|
|
||||
Home equity
|
10,687
|
|
0.47
|
|
13,484
|
|
0.58
|
||
Liquidating - home equity
|
697
|
|
1.13
|
|
1,094
|
|
1.68
|
||
Other consumer
|
3,378
|
|
1.28
|
|
3,715
|
|
1.35
|
||
Commercial:
|
|
|
|
|
|
||||
Commercial non-mortgage
|
1,685
|
|
0.04
|
|
1,949
|
|
0.05
|
||
Commercial real estate:
|
|
|
|
|
|
||||
Commercial real estate
|
2,072
|
|
0.05
|
|
8,173
|
|
0.20
|
||
Equipment financing
|
1,298
|
|
0.21
|
|
1,596
|
|
0.25
|
||
Loans and leases past due 30-89 days
|
31,347
|
|
0.18
|
|
41,213
|
|
0.24
|
||
Residential
|
—
|
|
—
|
|
—
|
|
—
|
||
Commercial non-mortgage
|
747
|
|
0.02
|
|
749
|
|
0.02
|
||
Commercial Real Estate
|
—
|
|
—
|
|
—
|
|
—
|
||
Loans and leases past due 90 days and accruing
|
747
|
|
—
|
|
749
|
|
—
|
||
Total loans and leases over 30 days past due and accruing income
|
$
|
32,094
|
|
0.19
|
|
$
|
41,962
|
|
0.25
|
Deferred costs and unamortized premiums
|
51
|
|
|
|
86
|
|
|
||
Total
|
$
|
32,145
|
|
|
|
$
|
42,048
|
|
|
(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.
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||||
(Dollars in thousands)
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
||||||
Residential
|
$
|
46,792
|
|
1.10
|
%
|
|
$
|
47,201
|
|
1.12
|
%
|
Consumer:
|
|
|
|
|
|
||||||
Home equity
|
38,876
|
|
1.70
|
|
|
32,992
|
|
1.42
|
|
||
Liquidating - home equity
|
3,178
|
|
5.14
|
|
|
2,883
|
|
4.44
|
|
||
Other consumer
|
—
|
|
—
|
|
|
1,663
|
|
0.61
|
|
||
Total consumer
|
42,054
|
|
1.61
|
|
|
37,538
|
|
1.41
|
|
||
Commercial:
|
|
|
|
|
|
||||||
Commercial non-mortgage
|
74,483
|
|
1.78
|
|
|
38,550
|
|
0.93
|
|
||
Asset-based loans
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Total commercial
|
74,483
|
|
1.48
|
|
|
38,550
|
|
0.78
|
|
||
Commercial real estate:
|
|
|
|
|
|
||||||
Commercial real estate
|
9,793
|
|
0.24
|
|
|
9,859
|
|
0.24
|
|
||
Commercial construction
|
—
|
|
—
|
|
|
662
|
|
0.18
|
|
||
Total commercial real estate
|
9,793
|
|
0.22
|
|
|
10,521
|
|
0.23
|
|
||
Equipment financing
|
703
|
|
0.11
|
|
|
225
|
|
0.04
|
|
||
Total non-performing loans and leases (3)
|
173,825
|
|
1.02
|
|
|
134,035
|
|
0.79
|
|
||
Deferred costs and unamortized premiums
|
(80
|
)
|
|
|
(219
|
)
|
|
||||
Total recorded investment in non-performing loans and leases
|
$
|
173,745
|
|
|
|
$
|
133,816
|
|
|
||
|
|
|
|
|
|
||||||
Total non-performing loans and leases
|
$
|
173,825
|
|
|
|
$
|
134,035
|
|
|
||
Foreclosed and repossessed assets:
|
|
|
|
|
|
||||||
Residential and consumer
|
4,028
|
|
|
|
3,911
|
|
|
||||
Commercial and equipment financing
|
82
|
|
|
|
—
|
|
|
||||
Total foreclosed and repossessed assets
|
$
|
4,110
|
|
|
|
$
|
3,911
|
|
|
||
Total non-performing assets
|
$
|
177,935
|
|
|
|
$
|
137,946
|
|
|
(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 $81.0 million at March 31, 2017 and $75.7 million at December 31, 2016.
|
(In thousands)
|
At March 31,
2017 |
|
At December 31,
2016 |
||||
Accrual status
|
$
|
145,073
|
|
|
$
|
147,809
|
|
Non-accrual status
|
80,988
|
|
|
75,719
|
|
||
Total recorded investment of TDRs
|
$
|
226,061
|
|
|
$
|
223,528
|
|
Accruing TDRs performing under modified terms more than one year
|
57.0
|
%
|
|
57.1
|
%
|
||
Specific reserves for TDRs included in the balance of ALLL
|
$
|
13,248
|
|
|
$
|
14,583
|
|
Additional funds committed to borrowers in TDR status
|
2,487
|
|
|
459
|
|
•
|
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. Key assumptions that impact forecasted losses are refreshed at least annually. These include the LEP that determines the forecast horizon for each portfolio, and the LBP that determines the amount of historical data used to calculate probability of default, loss given default, and delinquency migration rates. Webster Bank considers other quantitative contributing factors for risks impacting the performance of loan portfolios that are not explicitly included in the quantitative models and may adjust loss estimates based on these factors. Contributing factors may include, but are not limited to, policy exceptions, 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 in the quantitative models but that can have an incremental impact on losses incurred in the current loan and lease portfolio. Examples include policy exceptions, credit concentrations, and macro-economic trends. The quantitative and qualitative contributing factors are consistent with interagency regulatory guidance.
|
|
At March 31, 2017
|
|
At December 31, 2016
|
||||||
(Dollars in thousands)
|
Amount
|
% (1)
|
|
Amount
|
% (1)
|
||||
Residential
|
$
|
20,264
|
|
0.47
|
|
$
|
23,226
|
|
0.55
|
Consumer
|
45,408
|
|
1.72
|
|
45,233
|
|
1.68
|
||
Commercial
|
76,354
|
|
1.52
|
|
71,905
|
|
1.46
|
||
Commercial real estate
|
50,727
|
|
1.12
|
|
47,477
|
|
1.05
|
||
Equipment financing
|
6,354
|
|
1.03
|
|
6,479
|
|
1.02
|
||
Total ALLL
|
$
|
199,107
|
|
1.16
|
|
$
|
194,320
|
|
1.14
|
(1)
|
Percentage represents allocated ALLL to total loans and leases within the comparable category. However, the allocation of a portion of the ALLL to one category of loans and leases does not preclude its availability to absorb losses in other categories.
|
|
At or for the three months ended March 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
194,320
|
|
|
$
|
174,990
|
|
Provision
|
10,500
|
|
|
15,600
|
|
||
Charge-offs:
|
|
|
|
||||
Residential
|
(732
|
)
|
|
(1,594
|
)
|
||
Consumer
|
(6,474
|
)
|
|
(4,421
|
)
|
||
Commercial
|
(123
|
)
|
|
(11,208
|
)
|
||
Commercial real estate
|
(102
|
)
|
|
(1,526
|
)
|
||
Equipment financing
|
(185
|
)
|
|
(151
|
)
|
||
Total charge-offs
|
(7,616
|
)
|
|
(18,900
|
)
|
||
Recoveries:
|
|
|
|
||||
Residential
|
237
|
|
|
721
|
|
||
Consumer
|
1,323
|
|
|
1,214
|
|
||
Commercial
|
322
|
|
|
457
|
|
||
Commercial real estate
|
7
|
|
|
74
|
|
||
Equipment financing
|
14
|
|
|
45
|
|
||
Total recoveries
|
1,903
|
|
|
2,511
|
|
||
Net charge-offs
|
(5,713
|
)
|
|
(16,389
|
)
|
||
Ending balance
|
$
|
199,107
|
|
|
$
|
174,201
|
|
|
Three months ended March 31,
|
||||||||
|
2017
|
|
2016
|
||||||
(Dollars in thousands)
|
Net Charge-offs (Recoveries)
|
Net Charge-off (Recovery)Rate (1)
|
|
Net Charge-offs
|
Net Charge-off Rate (1)
|
||||
Residential
|
$
|
495
|
|
0.05%
|
|
$
|
873
|
|
0.09%
|
Consumer
|
5,151
|
|
0.77
|
|
3,207
|
|
0.47
|
||
Commercial
|
(199
|
)
|
(0.02)
|
|
10,751
|
|
0.99
|
||
Commercial real estate
|
95
|
|
0.01
|
|
1,452
|
|
0.14
|
||
Equipment financing
|
171
|
|
0.11
|
|
106
|
|
0.07
|
||
Net charge-offs
|
$
|
5,713
|
|
0.13
|
|
$
|
16,389
|
|
0.41
|
(1)
|
Total net charge-offs to total average loans and leases. Calculated based on period to date net charge-offs (recoveries), annualized.
|
•
|
the size and duration of the investment portfolio,
|
•
|
the size and duration of the wholesale funding portfolio,
|
•
|
off-balance sheet interest rate contracts, and
|
•
|
the pricing and structure of loans and deposits.
|
NII
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
March 31, 2017
|
N/A
|
N/A
|
2.8%
|
5.4%
|
December 31, 2016
|
N/A
|
N/A
|
2.4%
|
4.7%
|
PPNR
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
March 31, 2017
|
N/A
|
N/A
|
3.7%
|
7.5%
|
December 31, 2016
|
N/A
|
N/A
|
2.9%
|
6.3%
|
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
NII
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
March 31, 2017
|
N/A
|
(3.6)%
|
1.5%
|
2.9%
|
|
(4.1)%
|
(1.8)%
|
1.4%
|
2.6%
|
December 31, 2016
|
N/A
|
N/A
|
1.2%
|
2.3%
|
|
(3.8)%
|
(1.6)%
|
1.3%
|
2.3%
|
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
PPNR
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
March 31, 2017
|
N/A
|
(6.1)%
|
2.0%
|
3.8%
|
|
(6.1)%
|
(2.5)%
|
1.9%
|
3.8%
|
December 31, 2016
|
N/A
|
N/A
|
1.4%
|
2.7%
|
|
(5.6)%
|
(2.1)%
|
1.7%
|
3.7%
|
|
Book
Value
|
Estimated
Economic
Value
|
Estimated Economic Value Change
|
|||||||
|
||||||||||
(Dollars in thousands)
|
-100 bp
|
+100 bp
|
||||||||
March 31, 2017
|
|
|
|
|
||||||
Assets
|
$
|
26,002,916
|
|
$
|
25,439,020
|
|
N/A
|
$
|
(636,268
|
)
|
Liabilities
|
23,442,558
|
|
22,510,126
|
|
N/A
|
(554,999
|
)
|
|||
Net
|
$
|
2,560,358
|
|
$
|
2,928,894
|
|
N/A
|
$
|
(81,269
|
)
|
Net change as % base net economic value
|
|
|
|
(2.8
|
)%
|
|||||
|
|
|
|
|
||||||
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
|
)%
|
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
|
|||||||||
January 1-31, 2017
|
661
|
|
$
|
54.28
|
|
—
|
|
$
|
15,488,842
|
|
|
—
|
|
$
|
—
|
|
February 1-28, 2017
|
117,549
|
|
55.94
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
March 1-31, 2017
|
43,737
|
|
54.44
|
|
—
|
|
15,488,842
|
|
|
—
|
|
—
|
|
|||
Total
|
161,947
|
|
55.53
|
|
—
|
|
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 9,777 outstanding warrants to purchase a share (1:1) of the Company's common stock, which carry an exercise price of $18.28 per share and expire on November 21, 2018.
|
|
|
|
|
WEBSTER FINANCIAL CORPORATION
|
|
|
|
|
Registrant
|
|
|
|
|
|
Date: May 5, 2017
|
|
|
By:
|
/s/ James C. Smith
|
|
|
|
|
James C. Smith
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
Date: May 5, 2017
|
|
|
By:
|
/s/ Glenn I. MacInnes
|
|
|
|
|
Glenn I. MacInnes
|
|
|
|
|
Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
Date: May 5, 2017
|
|
|
By:
|
/s/ Gregory S. Madar
|
|
|
|
|
Gregory S. Madar
|
|
|
|
|
Senior Vice President and
|
|
|
|
|
Chief Accounting Officer
|
|
|
|
|
(Principal Accounting Officer)
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
3
|
|
Certificate of Incorporation and Bylaws.
|
|
|
|
|
|
|
|
|
3.1
|
|
Fourth Amended and Restated Certificate of Incorporation
|
|
|
|
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
|
10.1
|
|
Non-Competition Agreement, dated as of April 3, 2017, between Webster Financial Corporation, and Daniel Bley
|
|
X
|
|
|
|
|
|
|
10.2
|
|
Non-Competition Agreement, dated as of April 3, 2017, between Webster Financial Corporation, and John Ciulla
|
|
X
|
|
|
|
|
|
|
10.3
|
|
Non-Competition Agreement, dated as of April 3, 2017, between Webster Financial Corporation, and Nitin Mhatre
|
|
X
|
|
|
|
|
|
|
10.4
|
|
Non-Competition Agreement, dated as of April 3, 2017, between Webster Financial Corporation, and Christopher Motl
|
|
X
|
|
|
|
|
|
|
10.5
|
|
Non-Competition Agreement, dated as of April 3, 2017, between Webster Financial Corporation, and Charles Wilkins
|
|
X
|
|
|
|
|
|
|
31.1
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
|
|
X
|
|
|
|
|
|
|
31.2
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
|
|
X
|
|
|
|
|
|
|
32.1 +
|
|
Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer.
|
|
X
|
|
|
|
|
|
|
32.2 +
|
|
Written statement pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer.
|
|
X
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embeded within the Inline XBRL document
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
X
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
X
|
|
|
|
|
|
|
|
/s/ Daniel Bley
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
Title: Chairman and Chief Executive Office
|
|
/s/ John Ciulla
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
Title: Chairman and Chief Executive Office
|
|
/s/ Nitin Mhatre
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
Title: Chairman and Chief Executive Office
|
|
/s/ Christopher Motl
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
Title: Chairman and Chief Executive Office
|
|
/s/ Charles Wilkins
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
Title: Chairman and Chief Executive Office
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Webster Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ James C. Smith
|
James C. Smith
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Webster Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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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-Q Report of the Company for the quarter ended March 31, 2017 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-Q Report of the Company for the quarter ended March 31, 2017 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/ Glenn I. MacInnes
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Glenn I. MacInnes
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
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