|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal
|
Year Ended December 31, 2017
|
Large accelerated filer
|
☑
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
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Page No.
|
|
|
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Forward-Looking Statements
|
||
Key to Acronyms and Terms
|
||
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Item 1.
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Business
|
|
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Item 1A.
|
Risk Factors
|
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6.
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Selected Financial Data
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Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8.
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Financial Statements and Supplementary Data
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A.
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Controls and Procedures
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Item 9B.
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Other Information
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Item 10.
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Directors, Executive Officers and Corporate Governance
|
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Item 11.
|
Executive Compensation
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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Item 14.
|
Principal Accountant Fees and Services
|
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Item 15.
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Exhibits and Financial Statement Schedules
|
|
|
|
|
|
|
|
•
|
local, regional, national and international economic conditions and the impact they may have on us and our customers;
|
•
|
volatility and disruption in national and international financial markets;
|
•
|
government intervention in the U.S. financial system;
|
•
|
changes in the level of non-performing assets and charge-offs;
|
•
|
changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
|
•
|
adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;
|
•
|
inflation, interest rate, securities market and monetary fluctuations;
|
•
|
the timely development and acceptance of new products and services and perceived overall value of these products and services by customers;
|
•
|
changes in consumer spending, borrowings and savings habits;
|
•
|
technological changes and cyber-security matters;
|
•
|
the ability to increase market share and control expenses;
|
•
|
changes in the competitive environment among banks, financial holding companies and other financial services providers;
|
•
|
the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, insurance and healthcare) with which we and our subsidiaries must comply, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), the final rules establishing a new comprehensive capital framework for U.S. banking organizations (Capital Rules), and the Tax Cuts and Jobs Act of 2017 (Tax 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 (FASB) and other accounting standard setters;
|
•
|
the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; and
|
•
|
our success at assessing and managing the risks involved in the foregoing items.
|
Agency CMBS
|
Agency commercial mortgage-backed securities
|
Agency CMO
|
Agency collateralized mortgage obligations
|
Agency MBS
|
Agency mortgage-backed securities
|
ALCO
|
Asset/Liability Committee
|
ALLL
|
Allowance for loan and lease losses
|
AOCL
|
Accumulated other comprehensive loss, net of tax
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Basel III
|
Capital rules under a global regulatory framework developed by the Basel Committee on Banking Supervision
|
BHC Act
|
Bank Holding Company Act of 1956, as amended
|
Capital Rules
|
Final rules establishing a new comprehensive capital framework for U.S. banking organizations
|
CET1 capital
|
Common Equity Tier 1 Capital, defined by Basel III capital rules
|
CFPB
|
Consumer Financial Protection Bureau
|
CFTC
|
Commodity Futures Trading Commission
|
CLO
|
Collateralized loan obligation securities
|
CMBS
|
Non-agency commercial mortgage-backed securities
|
CRA
|
Community Reinvestment Act of 1977
|
DIF
|
Federal Deposit Insurance Fund
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
DTA
|
Deferred tax asset
|
ERMC
|
Enterprise Risk Management Committee
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FICO
|
Fair Isaac Corporation
|
FINRA
|
Financial Industry Regulatory Authority
|
FRA
|
Federal Reserve Act
|
FRB
|
Federal Reserve Bank
|
FTP
|
Funds Transfer Pricing, a matched maturity funding concept
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
Holding Company
|
Webster Financial Corporation
|
HSA Bank
|
A division of Webster Bank, National Association
|
ISDA
|
International Swaps Derivative Association
|
LEP
|
Loss emergence period
|
LGD
|
Loss given default
|
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
|
PD
|
Probability of default
|
PPNR
|
Pre-tax, pre-provision net revenue
|
QM
|
Qualified mortgage
|
SALT
|
State and local tax
|
SEC
|
United States Securities and Exchange Commission
|
SERP
|
Supplemental defined benefit retirement plan
|
SIPC
|
Securities Investor Protection Corporation
|
Tax Act
|
Tax Cuts and Jobs Act of 2017
|
TDR
|
Troubled debt restructuring, defined in ASC 310-40 "Receivables-Troubled Debt Restructurings by Creditors"
|
UTB
|
Unrecognized tax benefit
|
UTP
|
Uncertain tax position
|
VIE
|
Variable interest entity, defined in ASC 810-10 "Consolidation-Overall"
|
Webster Bank or the 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
|
•
|
Middle Market delivers a full array of financial services to a diversified group of companies, leveraging industry specialization and delivering competitive products and services.
|
•
|
Commercial Real Estate provides financing for the acquisition, development, construction, or refinancing of commercial real estate for which the property is the primary security for the loan and income generated from the property is the primary repayment source.
|
•
|
Webster Business Credit Corporation is the asset-based lending subsidiary of Webster Bank and is one of the top 25 asset-based lenders in the U.S. Webster Business Credit Corporation builds relationships with growing middle market companies by financing core working capital and import financing needs primarily with revolving credit facilities with advance rates against accounts receivable and inventory.
|
•
|
Webster Capital Finance is the equipment finance subsidiary of Webster Bank. Webster Capital Finance offers small to mid-ticket financing for critical equipment with specialties in construction, transportation, environmental and manufacturing equipment. Webster Capital Finance lends primarily in the eastern half of the U.S. and in other select markets
|
•
|
Treasury and Payment Solutions delivers a broad range of deposit, lending, treasury, and trade services via a dedicated team of treasury professionals and local commercial bankers. Treasury and Payment Solutions is comprised of Government and Institutional Banking, Cash Management Sales and Product Management to deliver holistic solutions to Webster’s increasingly sophisticated business and institutional clients.
|
•
|
Personal Banking offers consumer deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit card products. In addition, investment and securities-related services, including brokerage and investment advice is offered through a strategic partnership with LPL Financial Holdings Inc. (LPL), a broker dealer registered with the SEC, a registered investment advisor under federal and applicable state laws, a member of the Financial Industry Regulatory Authority (FINRA), and a member of the Securities Investor Protection Corporation (SIPC). Webster Bank has employees located throughout its banking center network, who, through LPL, are registered representatives.
|
•
|
Business Banking offers credit, deposit, and cash flow management products to businesses and professional service firms with annual revenues of up to $25 million. This group builds broad customer relationships through business bankers and business certified banking center managers, supported by a team of customer care center bankers and industry and product specialists.
|
•
|
consumer and business confidence levels may decline and lead to less credit usage and increases in delinquencies and default rates;
|
•
|
our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage, and underwrite our customers become less predictive of future behaviors;
|
•
|
customer desire to do business with us may decline, whether as a result of a decreased demand for loans or other financial products and services or decreased deposits or other investments in accounts with us;
|
•
|
competition in our industry could intensify as a result of the increasing consolidation of financial services companies; and
|
•
|
the effects of recent and proposed changes in laws such as the Tax Act.
|
•
|
actual or anticipated variations in operating results;
|
•
|
changes in recommendations by securities analysts;
|
•
|
operating and stock price performance of other companies that investors deem comparable to us;
|
•
|
news reports relating to trends, concerns and other issues in the financial services and healthcare industries;
|
•
|
new technology used, or services offered, by competitors;
|
•
|
perceptions in the marketplace regarding us and/or our competitors;
|
•
|
significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;
|
•
|
failure to integrate acquisitions or realize anticipated benefits from acquisitions;
|
•
|
additional investments from third parties;
|
•
|
issuance of additional shares of stock;
|
•
|
changes in government regulations or actions by government regulators; and
|
•
|
geo-political conditions such as acts or threats of terrorism or military conflicts.
|
•
|
the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards and safe, sound assets;
|
•
|
the ability to expand market position;
|
•
|
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
•
|
the rate at which we introduce new products and services relative to our competitors;
|
•
|
customer satisfaction with our level of service; and
|
•
|
industry and general economic trends.
|
•
|
The possible loss of key employees and customers of the target;
|
•
|
Potential disruption of the target business;
|
•
|
Potential changes in banking or tax laws or regulations that may affect the target business;
|
•
|
Potential exposure to unknown or contingent liabilities of the target; and
|
•
|
Potential difficulties in integrating the target business into our own.
|
Location
|
Leased
|
Owned
|
Total
|
|||
Connecticut
|
73
|
|
42
|
|
115
|
|
Massachusetts
|
24
|
|
11
|
|
35
|
|
Rhode Island
|
7
|
|
3
|
|
10
|
|
New York
|
7
|
|
—
|
|
7
|
|
Total banking centers
|
111
|
|
56
|
|
167
|
|
|
2017
|
|
2016
|
||||||||||||||||
|
High
|
Low
|
Cash Dividends Declared
|
|
High
|
Low
|
Cash Dividends Declared
|
||||||||||||
Fourth quarter
|
$
|
59.25
|
|
$
|
51.68
|
|
$
|
0.26
|
|
|
$
|
55.80
|
|
$
|
36.96
|
|
$
|
0.25
|
|
Third quarter
|
55.04
|
|
44.04
|
|
0.26
|
|
|
38.97
|
|
31.45
|
|
0.25
|
|
||||||
Second quarter
|
54.96
|
|
46.85
|
|
0.26
|
|
|
39.61
|
|
31.29
|
|
0.25
|
|
||||||
First quarter
|
57.50
|
|
47.59
|
|
0.25
|
|
|
37.18
|
|
30.09
|
|
0.23
|
|
Period
|
Total
Number of Shares Purchased (1) |
Average Price
Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum
Dollar Amount Available for Repurchase Under the Plans or Programs (1) |
|
Total
Number of Warrants Purchased (2) |
Average Price
Paid Per Warrant |
|||||||||
October 1-31, 2017
|
42,832
|
|
$
|
54.21
|
|
—
|
|
$
|
103,903,923
|
|
|
—
|
|
$
|
—
|
|
November 1-30, 2017
|
1,138
|
|
52.72
|
|
—
|
|
103,903,923
|
|
|
—
|
|
—
|
|
|||
December 1-31, 2017
|
305
|
|
57.69
|
|
—
|
|
103,903,923
|
|
|
—
|
|
—
|
|
|||
Total
|
44,275
|
|
54.20
|
|
—
|
|
103,903,923
|
|
|
—
|
|
—
|
|
(1)
|
On October 24, 2017, the Company announced that its Board of Directors had approved a 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. This approval is in addition to the $3.9 million remaining authorization on a similar common stock repurchase program announced on December 6, 2012. Both programs 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 8,752 outstanding warrants to purchase a share (1:1) of the Company's common stock, which carry an exercise price of $18.28 per share and expire on November 21, 2018.
|
|
Period Ending December 31,
|
|||||||||||||||||
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||
Webster Financial Corporation
|
$
|
100
|
|
$
|
155
|
|
$
|
166
|
|
$
|
194
|
|
$
|
292
|
|
$
|
308
|
|
S&P 500 Index
|
$
|
100
|
|
$
|
132
|
|
$
|
150
|
|
$
|
153
|
|
$
|
171
|
|
$
|
208
|
|
KRX Index
|
$
|
100
|
|
$
|
147
|
|
$
|
150
|
|
$
|
159
|
|
$
|
222
|
|
$
|
226
|
|
•
|
allowance for loan and lease losses;
|
•
|
fair value measurements for valuation of investments;
|
•
|
evaluation for impairment of goodwill; and
|
•
|
assessing the realizability of DTAs and the measurement of uncertain tax position (UTP)s.
|
|
At or for the years ended December 31,
|
||||||||||||||
(Dollars in thousands, except per share data)
|
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||
BALANCE SHEETS
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
26,487,645
|
|
$
|
26,072,529
|
|
$
|
24,641,118
|
|
$
|
22,497,175
|
|
$
|
20,843,577
|
|
Loans and leases, net
|
17,323,864
|
|
16,832,268
|
|
15,496,745
|
|
13,740,761
|
|
12,547,203
|
|
|||||
Investment securities
|
7,125,429
|
|
7,151,749
|
|
6,907,683
|
|
6,666,828
|
|
6,465,652
|
|
|||||
Deposits
|
20,993,729
|
|
19,303,857
|
|
17,952,778
|
|
15,651,605
|
|
14,854,420
|
|
|||||
Borrowings
|
2,546,141
|
|
4,017,948
|
|
4,040,799
|
|
4,335,193
|
|
3,612,416
|
|
|||||
Series A preferred stock
|
—
|
|
—
|
|
—
|
|
28,939
|
|
28,939
|
|
|||||
Series E preferred stock
|
—
|
|
122,710
|
|
122,710
|
|
122,710
|
|
122,710
|
|
|||||
Series F preferred stock
|
145,056
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total shareholders' equity
|
2,701,958
|
|
2,527,012
|
|
2,413,960
|
|
2,322,815
|
|
2,209,348
|
|
|||||
STATEMENTS OF INCOME
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
913,605
|
|
$
|
821,913
|
|
$
|
760,040
|
|
$
|
718,941
|
|
$
|
687,640
|
|
Interest expense
|
117,318
|
|
103,400
|
|
95,415
|
|
90,500
|
|
90,912
|
|
|||||
Net interest income
|
796,287
|
|
718,513
|
|
664,625
|
|
628,441
|
|
596,728
|
|
|||||
Provision for loan and lease losses
|
40,900
|
|
56,350
|
|
49,300
|
|
37,250
|
|
33,500
|
|
|||||
Non-interest income (less securities and one-time gain amounts)
|
259,604
|
|
256,882
|
|
237,278
|
|
197,754
|
|
197,615
|
|
|||||
Gain on sale of investment securities, net
|
—
|
|
414
|
|
609
|
|
5,499
|
|
712
|
|
|||||
Impairment loss on securities recognized in earnings
|
(126
|
)
|
(149
|
)
|
(110
|
)
|
(1,145
|
)
|
(7,277
|
)
|
|||||
One-time gain on redemption of an asset
|
—
|
|
7,331
|
|
—
|
|
—
|
|
—
|
|
|||||
Non-interest expense
|
661,075
|
|
623,191
|
|
555,341
|
|
501,600
|
|
497,709
|
|
|||||
Income before income tax expense
|
353,790
|
|
303,450
|
|
297,761
|
|
291,699
|
|
256,569
|
|
|||||
Income tax expense
|
98,351
|
|
96,323
|
|
93,032
|
|
91,973
|
|
77,113
|
|
|||||
Net income
|
$
|
255,439
|
|
$
|
207,127
|
|
$
|
204,729
|
|
$
|
199,726
|
|
$
|
179,456
|
|
Earnings applicable to common shareholders
|
$
|
246,831
|
|
$
|
198,423
|
|
$
|
195,361
|
|
$
|
188,496
|
|
$
|
168,036
|
|
Per Share Data
|
|
|
|
|
|
||||||||||
Basic earnings per common share
|
$
|
2.68
|
|
$
|
2.17
|
|
$
|
2.15
|
|
$
|
2.10
|
|
$
|
1.90
|
|
Diluted earnings per common share
|
2.67
|
|
2.16
|
|
2.13
|
|
2.08
|
|
1.86
|
|
|||||
Dividends and dividend equivalents declared per common share
|
1.03
|
|
0.98
|
|
0.89
|
|
0.75
|
|
0.55
|
|
|||||
Dividends declared per Series A preferred stock share
|
—
|
|
—
|
|
21.25
|
|
85.00
|
|
85.00
|
|
|||||
Dividends declared per Series E preferred stock share
|
1,600.00
|
|
1,600.00
|
|
1,600.00
|
|
1,600.00
|
|
1,648.89
|
|
|||||
Book value per common share
|
27.76
|
|
26.17
|
|
24.99
|
|
23.99
|
|
22.77
|
|
|||||
Tangible book value per common share (non-GAAP)
|
21.59
|
|
19.94
|
|
18.69
|
|
18.10
|
|
16.85
|
|
|||||
Key Performance Ratios
|
|
|
|
|
|
||||||||||
Tangible common equity ratio (non-GAAP)
|
7.67
|
%
|
7.19
|
%
|
7.12
|
%
|
7.46
|
%
|
7.50
|
%
|
|||||
Return on average assets
|
0.97
|
|
0.82
|
|
0.87
|
|
0.93
|
|
0.89
|
|
|||||
Return on average common shareholders’ equity
|
9.92
|
|
8.44
|
|
8.70
|
|
8.85
|
|
8.44
|
|
|||||
Return on average tangible common shareholders' equity (non-GAAP)
|
13.00
|
|
11.36
|
|
11.96
|
|
11.90
|
|
11.77
|
|
|||||
Net interest margin
|
3.30
|
|
3.12
|
|
3.08
|
|
3.21
|
|
3.26
|
|
|||||
Efficiency ratio (non-GAAP)
|
60.33
|
|
62.01
|
|
59.93
|
|
59.18
|
|
60.32
|
|
|||||
Asset Quality Ratios
|
|
|
|
|
|
||||||||||
Non-performing loans and leases as a percentage of loans and leases
|
0.72
|
%
|
0.79
|
%
|
0.89
|
%
|
0.93
|
%
|
1.28
|
%
|
|||||
Non-performing assets as a percentage of loans and leases plus OREO
|
0.76
|
|
0.81
|
|
0.92
|
|
0.98
|
|
1.34
|
|
|||||
Non-performing assets as a percentage of total assets
|
0.50
|
|
0.53
|
|
0.59
|
|
0.61
|
|
0.82
|
|
|||||
ALLL as a percentage of non-performing loans and leases
|
158.00
|
|
144.98
|
|
125.05
|
|
122.62
|
|
94.10
|
|
|||||
ALLL as a percentage of loans and leases
|
1.14
|
|
1.14
|
|
1.12
|
|
1.15
|
|
1.20
|
|
|||||
Net charge-offs as a percentage of average loans and leases
|
0.20
|
|
0.23
|
|
0.23
|
|
0.23
|
|
0.47
|
|
|||||
Ratio of ALLL to net charge-offs
|
5.68 x
|
5.25 x
|
5.21 x
|
5.21 x
|
2.63 x
|
|
At December 31,
|
||||||||||||||
(Dollars and shares in thousands, except per share data)
|
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||
Tangible book value per common share (non-GAAP):
|
|
|
|
|
|
||||||||||
Shareholders' equity (GAAP)
|
$
|
2,701,958
|
|
$
|
2,527,012
|
|
$
|
2,413,960
|
|
$
|
2,322,815
|
|
$
|
2,209,348
|
|
Less: Preferred stock (GAAP)
|
145,056
|
|
122,710
|
|
122,710
|
|
151,649
|
|
151,649
|
|
|||||
Goodwill and other intangible assets (GAAP)
|
567,984
|
|
572,047
|
|
577,699
|
|
532,553
|
|
535,238
|
|
|||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,988,918
|
|
$
|
1,832,255
|
|
$
|
1,713,551
|
|
$
|
1,638,613
|
|
$
|
1,522,461
|
|
Common shares outstanding
|
92,101
|
|
91,868
|
|
91,677
|
|
90,512
|
|
90,369
|
|
|||||
Tangible book value per common share (non-GAAP)
|
$
|
21.59
|
|
$
|
19.94
|
|
$
|
18.69
|
|
$
|
18.10
|
|
$
|
16.85
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity ratio (non-GAAP):
|
|
|
|
|
|
||||||||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,988,918
|
|
$
|
1,832,255
|
|
$
|
1,713,551
|
|
$
|
1,638,613
|
|
$
|
1,522,461
|
|
Total assets (GAAP)
|
$
|
26,487,645
|
|
$
|
26,072,529
|
|
$
|
24,641,118
|
|
$
|
22,497,175
|
|
$
|
20,843,577
|
|
Less: Goodwill and other intangible assets (GAAP)
|
567,984
|
|
572,047
|
|
577,699
|
|
532,553
|
|
535,238
|
|
|||||
Tangible assets (non-GAAP)
|
$
|
25,919,661
|
|
$
|
25,500,482
|
|
$
|
24,063,419
|
|
$
|
21,964,622
|
|
$
|
20,308,339
|
|
Tangible common equity ratio (non-GAAP)
|
7.67
|
%
|
7.19
|
%
|
7.12
|
%
|
7.46
|
%
|
7.50
|
%
|
|||||
|
|
|
|
|
|
||||||||||
|
For the years ended December 31,
|
||||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||
Return on average tangible common shareholders' equity (non-GAAP):
|
|
|
|
|
|
||||||||||
Net Income (GAAP)
|
$
|
255,439
|
|
$
|
207,127
|
|
$
|
204,729
|
|
$
|
199,726
|
|
$
|
179,456
|
|
Less: Preferred stock dividends (GAAP)
|
8,184
|
|
8,096
|
|
8,711
|
|
10,556
|
|
10,803
|
|
|||||
Add: Intangible assets amortization, tax-affected at 35% (GAAP)
|
2,640
|
|
3,674
|
|
4,121
|
|
1,745
|
|
3,197
|
|
|||||
Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP)
|
$
|
249,895
|
|
$
|
202,705
|
|
$
|
200,139
|
|
$
|
190,915
|
|
$
|
171,850
|
|
Average shareholders' equity (non-GAAP)
|
$
|
2,617,275
|
|
$
|
2,481,417
|
|
$
|
2,387,286
|
|
$
|
2,289,699
|
|
$
|
2,149,873
|
|
Less: Average preferred stock (non-GAAP)
|
124,978
|
|
122,710
|
|
134,682
|
|
151,649
|
|
151,649
|
|
|||||
Average goodwill and other intangible assets (non-GAAP)
|
570,054
|
|
574,785
|
|
579,366
|
|
533,549
|
|
537,650
|
|
|||||
Average tangible common shareholders' equity (non-GAAP)
|
$
|
1,922,243
|
|
$
|
1,783,922
|
|
$
|
1,673,238
|
|
$
|
1,604,501
|
|
$
|
1,460,574
|
|
Return on average tangible common shareholders' equity (non-GAAP)
|
13.00
|
%
|
11.36
|
%
|
11.96
|
%
|
11.90
|
%
|
11.77
|
%
|
|||||
|
|
|
|
|
|
||||||||||
Efficiency ratio (non-GAAP):
|
|
|
|
|
|
||||||||||
Non-interest expense (GAAP)
|
$
|
661,075
|
|
$
|
623,191
|
|
$
|
555,341
|
|
$
|
501,600
|
|
$
|
497,709
|
|
Less: Foreclosed property activity (GAAP)
|
(238
|
)
|
(326
|
)
|
517
|
|
(74
|
)
|
43
|
|
|||||
Intangible assets amortization (GAAP)
|
4,062
|
|
5,652
|
|
6,340
|
|
2,685
|
|
4,919
|
|
|||||
Other expense (non-GAAP)
|
9,029
|
|
3,513
|
|
975
|
|
3,029
|
|
5,649
|
|
|||||
Non-interest expense (non-GAAP)
|
$
|
648,222
|
|
$
|
614,352
|
|
$
|
547,509
|
|
$
|
495,960
|
|
$
|
487,098
|
|
Net interest income (GAAP)
|
$
|
796,287
|
|
$
|
718,513
|
|
$
|
664,625
|
|
$
|
628,441
|
|
$
|
596,728
|
|
Add: Tax-equivalent adjustment (non-GAAP)
|
16,953
|
|
13,637
|
|
10,617
|
|
11,124
|
|
13,221
|
|
|||||
Non-interest income (GAAP)
|
259,478
|
|
264,478
|
|
237,777
|
|
202,108
|
|
191,050
|
|
|||||
Other (non-GAAP)
|
1,798
|
|
1,780
|
|
1,111
|
|
1,889
|
|
7,277
|
|
|||||
Less: Gain on sale of investment securities, net (GAAP)
|
—
|
|
414
|
|
609
|
|
5,499
|
|
712
|
|
|||||
One-time gain on the sale of an asset (GAAP)
|
—
|
|
7,331
|
|
—
|
|
—
|
|
—
|
|
|||||
Income (non-GAAP)
|
$
|
1,074,516
|
|
$
|
990,663
|
|
$
|
913,521
|
|
$
|
838,063
|
|
$
|
807,564
|
|
Efficiency ratio (non-GAAP)
|
60.33
|
%
|
62.01
|
%
|
59.93
|
%
|
59.18
|
%
|
60.32
|
%
|
|
Years ended December 31,
|
|||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Yield/Rate
|
|
Average
Balance |
Interest
|
Yield/Rate
|
|
Average
Balance |
Interest
|
Yield/Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans and leases
|
$
|
17,295,027
|
|
$
|
712,794
|
|
4.12
|
%
|
|
$
|
16,266,101
|
|
$
|
624,300
|
|
3.84
|
%
|
|
$
|
14,746,168
|
|
$
|
554,632
|
|
3.76
|
%
|
Securities (based upon historical amortized cost)
|
7,047,744
|
|
210,044
|
|
2.97
|
|
|
6,910,649
|
|
203,467
|
|
2.95
|
|
|
6,846,297
|
|
207,675
|
|
3.04
|
|
||||||
FHLB and FRB stock
|
155,949
|
|
5,988
|
|
3.84
|
|
|
188,854
|
|
6,039
|
|
3.20
|
|
|
188,631
|
|
6,479
|
|
3.43
|
|
||||||
Interest-bearing deposits
|
63,397
|
|
698
|
|
1.10
|
|
|
57,747
|
|
295
|
|
0.51
|
|
|
107,569
|
|
281
|
|
0.26
|
|
||||||
Loans held for sale
|
29,680
|
|
1,034
|
|
3.49
|
|
|
44,560
|
|
1,449
|
|
3.25
|
|
|
41,101
|
|
1,590
|
|
3.87
|
|
||||||
Total interest-earning assets
|
24,591,797
|
|
$
|
930,558
|
|
3.78
|
%
|
|
23,467,911
|
|
$
|
835,550
|
|
3.56
|
%
|
|
21,929,766
|
|
$
|
770,657
|
|
3.52
|
%
|
|||
Non-interest-earning assets
|
1,669,370
|
|
|
|
|
1,753,316
|
|
|
|
|
1,625,196
|
|
|
|
||||||||||||
Total assets
|
$
|
26,261,167
|
|
|
|
|
$
|
25,221,227
|
|
|
|
|
$
|
23,554,962
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
$
|
4,079,493
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,853,700
|
|
$
|
—
|
|
—
|
%
|
|
$
|
3,564,751
|
|
$
|
—
|
|
—
|
%
|
Savings, checking, & money market deposits
|
14,348,404
|
|
36,899
|
|
0.26
|
|
|
13,072,577
|
|
27,331
|
|
0.21
|
|
|
11,846,049
|
|
21,472
|
|
0.18
|
|
||||||
Time deposits
|
2,137,574
|
|
25,354
|
|
1.19
|
|
|
2,027,029
|
|
22,527
|
|
1.11
|
|
|
2,138,778
|
|
24,559
|
|
1.15
|
|
||||||
Total deposits
|
20,565,471
|
|
62,253
|
|
0.30
|
|
|
18,953,306
|
|
49,858
|
|
0.26
|
|
|
17,549,578
|
|
46,031
|
|
0.26
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities sold under agreements to repurchase and other borrowings
|
876,660
|
|
14,365
|
|
1.64
|
|
|
947,858
|
|
14,528
|
|
1.53
|
|
|
1,144,963
|
|
16,861
|
|
1.47
|
|
||||||
FHLB advances
|
1,764,347
|
|
30,320
|
|
1.72
|
|
|
2,413,309
|
|
29,033
|
|
1.20
|
|
|
2,084,496
|
|
22,858
|
|
1.10
|
|
||||||
Long-term debt
|
225,639
|
|
10,380
|
|
4.60
|
|
|
225,607
|
|
9,981
|
|
4.42
|
|
|
226,292
|
|
9,665
|
|
4.27
|
|
||||||
Total borrowings
|
2,866,646
|
|
55,065
|
|
1.92
|
|
|
3,586,774
|
|
53,542
|
|
1.49
|
|
|
3,455,751
|
|
49,384
|
|
1.43
|
|
||||||
Total interest-bearing liabilities
|
23,432,117
|
|
$
|
117,318
|
|
0.50
|
%
|
|
22,540,080
|
|
$
|
103,400
|
|
0.46
|
%
|
|
21,005,329
|
|
$
|
95,415
|
|
0.45
|
%
|
|||
Non-interest-bearing liabilities
|
211,775
|
|
|
|
|
199,730
|
|
|
|
|
162,347
|
|
|
|
||||||||||||
Total liabilities
|
23,643,892
|
|
|
|
|
22,739,810
|
|
|
|
|
21,167,676
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock
|
124,978
|
|
|
|
|
122,710
|
|
|
|
|
134,682
|
|
|
|
||||||||||||
Common shareholders' equity
|
2,492,297
|
|
|
|
|
2,358,707
|
|
|
|
|
2,252,604
|
|
|
|
||||||||||||
Webster Financial Corporation shareholders' equity
|
2,617,275
|
|
|
|
|
2,481,417
|
|
|
|
|
2,387,286
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
26,261,167
|
|
|
|
|
$
|
25,221,227
|
|
|
|
|
$
|
23,554,962
|
|
|
|
|||||||||
Tax-equivalent net interest income
|
|
813,240
|
|
|
|
|
732,150
|
|
|
|
|
675,242
|
|
|
||||||||||||
Less: Tax-equivalent adjustments
|
|
(16,953
|
)
|
|
|
|
(13,637
|
)
|
|
|
|
(10,617
|
)
|
|
||||||||||||
Net interest income
|
|
$
|
796,287
|
|
|
|
|
$
|
718,513
|
|
|
|
|
$
|
664,625
|
|
|
|||||||||
Net interest margin
|
|
|
3.30
|
%
|
|
|
|
3.12
|
%
|
|
|
|
3.08
|
%
|
•
|
the size, duration and credit risk of the investment portfolio,
|
•
|
the size and duration of the wholesale funding portfolio,
|
•
|
off-balance sheet interest rate contracts, and
|
•
|
the pricing and structure of loans and deposits.
|
•
|
net interest income increased $77.8 million; and
|
•
|
provision for loan and lease losses decreased $15.5 million.
|
•
|
non-interest expense increased $37.9 million; and
|
•
|
one-time gain on the sale of an asset in 2016 of $7.3 million.
|
|
Years ended December 31,
|
||||||||
|
2017 vs. 2016
Increase (decrease) due to |
||||||||
(In thousands)
|
Rate (1)
|
Volume
|
Total
|
||||||
Change in interest on interest-earning assets:
|
|
|
|
||||||
Loans and leases
|
$
|
50,509
|
|
$
|
37,985
|
|
$
|
88,494
|
|
Loans held for sale
|
120
|
|
(534
|
)
|
(414
|
)
|
|||
Investments (2)
|
2,744
|
|
4,185
|
|
6,929
|
|
|||
Total interest income
|
$
|
53,373
|
|
$
|
41,636
|
|
$
|
95,009
|
|
Change in interest on interest-bearing liabilities:
|
|
|
|
||||||
Deposits
|
$
|
8,574
|
|
$
|
3,821
|
|
$
|
12,395
|
|
Borrowings
|
10,327
|
|
(8,803
|
)
|
1,524
|
|
|||
Total interest expense
|
$
|
18,901
|
|
$
|
(4,982
|
)
|
$
|
13,919
|
|
Change in tax-equivalent net interest income
|
$
|
34,472
|
|
$
|
46,618
|
|
$
|
81,090
|
|
(1)
|
The change attributable to mix, a combined impact of rate and volume, is included with the change due to rate.
|
(2)
|
Investments include: Securities; FHLB and FRB stock; and Interest-bearing deposits.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Interest rate swaps on repurchase agreements
|
$
|
—
|
|
|
$
|
361
|
|
Interest rate swaps on FHLB advances
|
6,799
|
|
|
8,315
|
|
||
Interest rate swaps on senior fixed-rate notes
|
306
|
|
|
306
|
|
||
Interest rate swaps on brokered CDs and deposits
|
780
|
|
|
780
|
|
||
Net increase to interest expense on borrowings
|
$
|
7,885
|
|
|
$
|
9,762
|
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2017
|
2016
|
|
Amount
|
Percent
|
|||||||
Deposit service fees
|
$
|
151,137
|
|
$
|
140,685
|
|
|
$
|
10,452
|
|
7.4
|
%
|
Loan and lease related fees
|
26,448
|
|
26,581
|
|
|
(133
|
)
|
(0.5
|
)
|
|||
Wealth and investment services
|
31,055
|
|
28,962
|
|
|
2,093
|
|
7.2
|
|
|||
Mortgage banking activities
|
9,937
|
|
14,635
|
|
|
(4,698
|
)
|
(32.1
|
)
|
|||
Increase in cash surrender value of life insurance policies
|
14,627
|
|
14,759
|
|
|
(132
|
)
|
(0.9
|
)
|
|||
Gain on sale of investment securities, net
|
—
|
|
414
|
|
|
(414
|
)
|
(100.0
|
)
|
|||
Impairment loss on securities recognized in earnings
|
(126
|
)
|
(149
|
)
|
|
23
|
|
15.4
|
|
|||
Other income
|
26,400
|
|
38,591
|
|
|
(12,191
|
)
|
(31.6
|
)
|
|||
Total non-interest income
|
$
|
259,478
|
|
$
|
264,478
|
|
|
$
|
(5,000
|
)
|
(1.9
|
)%
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2017
|
2016
|
|
Amount
|
Percent
|
|||||||
Compensation and benefits
|
$
|
359,926
|
|
$
|
332,127
|
|
|
$
|
27,799
|
|
8.4
|
%
|
Occupancy
|
60,490
|
|
61,110
|
|
|
(620
|
)
|
(1.0
|
)
|
|||
Technology and equipment
|
89,464
|
|
79,882
|
|
|
9,582
|
|
12.0
|
|
|||
Intangible assets amortization
|
4,062
|
|
5,652
|
|
|
(1,590
|
)
|
(28.1
|
)
|
|||
Marketing
|
17,421
|
|
19,703
|
|
|
(2,282
|
)
|
(11.6
|
)
|
|||
Professional and outside services
|
16,858
|
|
14,801
|
|
|
2,057
|
|
13.9
|
|
|||
Deposit insurance
|
25,649
|
|
26,006
|
|
|
(357
|
)
|
(1.4
|
)
|
|||
Other expense
|
87,205
|
|
83,910
|
|
|
3,295
|
|
3.9
|
|
|||
Total non-interest expense
|
$
|
661,075
|
|
$
|
623,191
|
|
|
$
|
37,884
|
|
6.1
|
%
|
•
|
interest income increased $61.9 million; and
|
•
|
non-interest income increased $26.7 million.
|
•
|
non-interest expense increased $67.9 million; and
|
•
|
provision for loan and lease losses increased $7.1 million.
|
|
Years ended December 31,
|
||||||||
|
2016 vs. 2015
Increase (decrease) due to |
||||||||
(In thousands)
|
Rate (1)
|
Volume
|
Total
|
||||||
Change in interest on interest-earning assets:
|
|
|
|
||||||
Loans and leases
|
$
|
5,627
|
|
$
|
64,041
|
|
$
|
69,668
|
|
Loans held for sale
|
(77
|
)
|
(65
|
)
|
(142
|
)
|
|||
Investments (2)
|
(6,297
|
)
|
1,664
|
|
(4,633
|
)
|
|||
Total interest income
|
$
|
(747
|
)
|
$
|
65,640
|
|
$
|
64,893
|
|
Change in interest on interest-bearing liabilities:
|
|
|
|
||||||
Deposits
|
$
|
2,554
|
|
$
|
1,273
|
|
$
|
3,827
|
|
Borrowings
|
2,663
|
|
1,495
|
|
4,158
|
|
|||
Total interest expense
|
$
|
5,217
|
|
$
|
2,768
|
|
$
|
7,985
|
|
Change in tax-equivalent net interest income
|
$
|
(5,964
|
)
|
$
|
62,872
|
|
$
|
56,908
|
|
(1)
|
The change attributable to mix, a combined impact of rate and volume, is included with the change due to rate.
|
(2)
|
Investments include: Securities; FHLB and FRB stock; and Interest-bearing deposits.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Interest rate swaps on repurchase agreements
|
$
|
361
|
|
|
$
|
1,442
|
|
Interest rate swaps on FHLB advances
|
8,315
|
|
|
8,272
|
|
||
Interest rate swaps on senior fixed-rate notes
|
306
|
|
|
306
|
|
||
Interest rate swaps on brokered CDs and deposits
|
780
|
|
|
632
|
|
||
Net increase to interest expense on borrowings
|
$
|
9,762
|
|
|
$
|
10,652
|
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|||||||
Deposit service fees
|
$
|
140,685
|
|
$
|
135,057
|
|
|
$
|
5,628
|
|
4.2
|
%
|
Loan and lease related fees
|
26,581
|
|
25,594
|
|
|
987
|
|
3.9
|
|
|||
Wealth and investment services
|
28,962
|
|
32,486
|
|
|
(3,524
|
)
|
(10.8
|
)
|
|||
Mortgage banking activities
|
14,635
|
|
7,795
|
|
|
6,840
|
|
87.7
|
|
|||
Increase in cash surrender value of life insurance policies
|
14,759
|
|
13,020
|
|
|
1,739
|
|
13.4
|
|
|||
Gain on sale of investment securities, net
|
414
|
|
609
|
|
|
(195
|
)
|
(32.0
|
)
|
|||
Impairment loss on securities recognized in earnings
|
(149
|
)
|
(110
|
)
|
|
(39
|
)
|
(35.5
|
)
|
|||
Other income
|
38,591
|
|
23,326
|
|
|
15,265
|
|
65.4
|
|
|||
Total non-interest income
|
$
|
264,478
|
|
$
|
237,777
|
|
|
$
|
26,701
|
|
11.2
|
%
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||
(Dollars in thousands)
|
2016
|
2015
|
|
Amount
|
Percent
|
|||||||
Compensation and benefits
|
$
|
332,127
|
|
$
|
297,517
|
|
|
$
|
34,610
|
|
11.6
|
%
|
Occupancy
|
61,110
|
|
48,836
|
|
|
12,274
|
|
25.1
|
|
|||
Technology and equipment
|
79,882
|
|
80,813
|
|
|
(931
|
)
|
(1.2
|
)
|
|||
Intangible assets amortization
|
5,652
|
|
6,340
|
|
|
(688
|
)
|
(10.9
|
)
|
|||
Marketing
|
19,703
|
|
16,053
|
|
|
3,650
|
|
22.7
|
|
|||
Professional and outside services
|
14,801
|
|
11,156
|
|
|
3,645
|
|
32.7
|
|
|||
Deposit insurance
|
26,006
|
|
24,042
|
|
|
1,964
|
|
8.2
|
|
|||
Other expense
|
83,910
|
|
70,584
|
|
|
13,326
|
|
18.9
|
|
|||
Total non-interest expense
|
$
|
623,191
|
|
$
|
555,341
|
|
|
$
|
67,850
|
|
12.2
|
%
|
•
|
To further strengthen Webster's ability to deliver the totality of its products and services to the owners and executives of commercial clients and other high net worth individuals, an organizational change was made during the second quarter of 2017. Effective April 1, 2017, the head of Private Banking reports directly to the head of Commercial Banking. The current organizational structure reflects how executive management responsibilities are assigned and reviewed. As a result of this change, the Private Banking and Commercial Banking operating segments are aggregated into one reportable segment, Commercial Banking.
|
•
|
In late 2007 Webster discontinued its indirect residential construction lending and its indirect home equity lending outside of its primary New England market area, referred to as National Wholesale Lending. Webster placed these two portfolios into a liquidating loan portfolio included within the Corporate and Reconciling category. The balance of the home equity liquidating loan portfolio was $65.0 million at December 31, 2016. As the remainder of this portfolio has been performing in the same manner as the continuing home equity portfolio, management has decided to combine the liquidating loan portfolio with the continuing home equity loan portfolio. The combined portfolio is included in the Community Banking reportable segment.
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net income (loss):
|
|
|
|
|
|
||||||
Commercial Banking
|
$
|
133,594
|
|
|
$
|
115,366
|
|
|
$
|
105,203
|
|
Community Banking
|
83,468
|
|
|
60,959
|
|
|
76,335
|
|
|||
HSA Bank
|
49,774
|
|
|
38,230
|
|
|
37,443
|
|
|||
Corporate and Reconciling
|
(11,397
|
)
|
|
(7,428
|
)
|
|
(14,252
|
)
|
|||
Consolidated Total
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
|
At December 31, 2017
|
||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Total
|
||||||||||
Total assets
|
$
|
9,350,028
|
|
$
|
8,909,671
|
|
$
|
76,308
|
|
$
|
8,151,638
|
|
$
|
26,487,645
|
|
Loans and leases
|
9,323,376
|
|
8,200,154
|
|
328
|
|
—
|
|
17,523,858
|
|
|||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
538,373
|
|
|||||
Deposits
|
4,122,608
|
|
11,476,334
|
|
5,038,681
|
|
356,106
|
|
20,993,729
|
|
|||||
Not included in above amounts:
|
|
|
|
|
|
||||||||||
Assets under administration/management
|
2,039,375
|
|
3,376,185
|
|
1,268,402
|
|
—
|
|
6,683,962
|
|
|||||
|
At December 31, 2016
|
||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Total
|
||||||||||
Total assets
|
$
|
9,069,445
|
|
$
|
8,721,046
|
|
$
|
83,987
|
|
$
|
8,198,051
|
|
$
|
26,072,529
|
|
Loans and leases
|
9,066,905
|
|
7,959,558
|
|
125
|
|
—
|
|
17,026,588
|
|
|||||
Goodwill
|
—
|
|
516,560
|
|
21,813
|
|
—
|
|
538,373
|
|
|||||
Deposits
|
3,592,531
|
|
10,970,977
|
|
4,362,503
|
|
377,846
|
|
19,303,857
|
|
|||||
Not included in above amounts:
|
|
|
|
|
|
||||||||||
Assets under administration/management
|
1,781,840
|
|
2,980,113
|
|
878,190
|
|
—
|
|
5,640,143
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net interest income
|
$
|
322,393
|
|
|
$
|
287,596
|
|
|
$
|
266,085
|
|
Provision for loan and lease losses
|
38,518
|
|
|
37,455
|
|
|
30,546
|
|
|||
Net interest income after provision
|
283,875
|
|
|
250,141
|
|
|
235,539
|
|
|||
Non-interest income
|
55,194
|
|
|
57,253
|
|
|
46,967
|
|
|||
Non-interest expense
|
154,037
|
|
|
138,379
|
|
|
129,499
|
|
|||
Income before income taxes
|
185,032
|
|
|
169,015
|
|
|
153,007
|
|
|||
Income tax expense
|
51,438
|
|
|
53,649
|
|
|
47,804
|
|
|||
Net income
|
$
|
133,594
|
|
|
$
|
115,366
|
|
|
$
|
105,203
|
|
|
At December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Total assets
|
$
|
9,350,028
|
|
|
$
|
9,069,445
|
|
|
$
|
7,999,084
|
|
Loans and leases
|
9,323,376
|
|
|
9,066,905
|
|
|
7,999,565
|
|
|||
Deposits
|
4,122,608
|
|
|
3,592,531
|
|
|
3,301,773
|
|
|||
|
|
|
|
|
|
||||||
Assets under administration/management (not included in above amounts)
|
2,039,375
|
|
|
1,781,840
|
|
|
1,726,385
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net interest income
|
$
|
104,704
|
|
|
$
|
81,451
|
|
|
$
|
73,433
|
|
Non-interest income
|
77,378
|
|
|
71,710
|
|
|
62,475
|
|
|||
Non-interest expense
|
113,143
|
|
|
97,152
|
|
|
81,449
|
|
|||
Income before income taxes
|
68,939
|
|
|
56,009
|
|
|
54,459
|
|
|||
Income tax expense
|
19,165
|
|
|
17,779
|
|
|
17,016
|
|
|||
Net income
|
$
|
49,774
|
|
|
$
|
38,230
|
|
|
$
|
37,443
|
|
|
At December 31, 2017
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Total assets
|
$
|
76,308
|
|
|
$
|
83,987
|
|
|
$
|
95,815
|
|
Deposits
|
5,038,681
|
|
|
4,362,503
|
|
|
3,802,313
|
|
|||
|
|
|
|
|
|
||||||
Assets under administration, through linked brokerage accounts (not included in above amounts)
|
1,268,402
|
|
|
878,190
|
|
|
692,306
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net interest income
|
$
|
383,700
|
|
|
$
|
367,137
|
|
|
$
|
356,881
|
|
Provision for loan and lease losses
|
2,382
|
|
|
18,895
|
|
|
18,754
|
|
|||
Net interest income after provision
|
381,318
|
|
|
348,242
|
|
|
338,127
|
|
|||
Non-interest income
|
107,368
|
|
|
110,197
|
|
|
108,647
|
|
|||
Non-interest expense
|
373,081
|
|
|
369,132
|
|
|
335,834
|
|
|||
Income before income taxes
|
115,605
|
|
|
89,307
|
|
|
110,940
|
|
|||
Income tax expense
|
32,137
|
|
|
28,348
|
|
|
34,605
|
|
|||
Net income
|
$
|
83,468
|
|
|
$
|
60,959
|
|
|
$
|
76,335
|
|
|
At December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Total assets
|
$
|
8,909,671
|
|
|
$
|
8,721,046
|
|
|
$
|
8,521,672
|
|
Loans
|
8,200,154
|
|
|
7,959,558
|
|
|
7,672,116
|
|
|||
Deposits
|
11,476,334
|
|
|
10,970,977
|
|
|
10,449,231
|
|
|||
|
|
|
|
|
|
||||||
Assets under administration (not included in above amounts)
|
3,376,185
|
|
|
2,980,113
|
|
|
2,762,759
|
|
|
At December 31,
|
||||||||||||||||||||||||
|
2017
|
|
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
|
$
|
1,247
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,247
|
|
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
Agency CMO
|
308,989
|
|
1,158
|
|
(3,814
|
)
|
306,333
|
|
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
||||||||
Agency MBS
|
1,124,960
|
|
2,151
|
|
(19,270
|
)
|
1,107,841
|
|
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
||||||||
Agency CMBS
|
608,276
|
|
—
|
|
(20,250
|
)
|
588,026
|
|
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
||||||||
CMBS
|
358,984
|
|
2,157
|
|
(74
|
)
|
361,067
|
|
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
||||||||
CLO
|
209,075
|
|
910
|
|
(134
|
)
|
209,851
|
|
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
||||||||
Single issuer-trust preferred
|
7,096
|
|
—
|
|
(46
|
)
|
7,050
|
|
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
||||||||
Corporate debt
|
56,504
|
|
797
|
|
(679
|
)
|
56,622
|
|
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
||||||||
Equities-financial institutions
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Securities available-for-sale
|
$
|
2,675,131
|
|
$
|
7,173
|
|
$
|
(44,267
|
)
|
$
|
2,638,037
|
|
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
260,114
|
|
$
|
664
|
|
$
|
(4,824
|
)
|
$
|
255,954
|
|
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
Agency MBS
|
2,569,735
|
|
16,989
|
|
(37,442
|
)
|
2,549,282
|
|
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
||||||||
Agency CMBS
|
696,566
|
|
—
|
|
(10,011
|
)
|
686,555
|
|
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
||||||||
Municipal bonds and notes
|
711,381
|
|
8,584
|
|
(6,558
|
)
|
713,407
|
|
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
||||||||
CMBS
|
249,273
|
|
2,175
|
|
(620
|
)
|
250,828
|
|
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
||||||||
Private Label MBS
|
323
|
|
1
|
|
—
|
|
324
|
|
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
||||||||
Securities held-to-maturity
|
$
|
4,487,392
|
|
$
|
28,413
|
|
$
|
(59,455
|
)
|
$
|
4,456,350
|
|
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
At December 31, 2017
|
||||||||||||||||||||||||
|
Within 1 Year
|
1 - 5 Years
|
5 - 10 Years
|
After 10 Years
|
Total
|
||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
Amount
|
Weighted
Average Yield |
|||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury Bills
|
$
|
1,247
|
|
1.29
|
%
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
1,247
|
|
1.29
|
%
|
Agency CMO
|
—
|
|
—
|
|
—
|
|
—
|
|
13,163
|
|
2.47
|
|
293,169
|
|
2.48
|
|
306,332
|
|
2.48
|
|
|||||
Agency MBS
|
—
|
|
—
|
|
—
|
|
—
|
|
19,774
|
|
2.09
|
|
1,088,067
|
|
2.47
|
|
1,107,841
|
|
2.46
|
|
|||||
Agency CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
588,026
|
|
2.51
|
|
588,026
|
|
2.51
|
|
|||||
CMBS
|
—
|
|
—
|
|
19,229
|
|
2.99
|
|
128,085
|
|
2.78
|
|
213,754
|
|
2.89
|
|
361,068
|
|
2.86
|
|
|||||
CLO
|
—
|
|
—
|
|
—
|
|
—
|
|
165,859
|
|
3.25
|
|
43,992
|
|
3.49
|
|
209,851
|
|
3.30
|
|
|||||
Single issuer-trust preferred
|
—
|
|
—
|
|
—
|
|
—
|
|
7,050
|
|
2.57
|
|
—
|
|
—
|
|
7,050
|
|
2.57
|
|
|||||
Corporate debt
|
—
|
|
—
|
|
21,218
|
|
2.90
|
|
—
|
|
—
|
|
35,404
|
|
2.66
|
|
56,622
|
|
2.75
|
|
|||||
Securities available-for-sale
|
$
|
1,247
|
|
1.29
|
%
|
$
|
40,447
|
|
2.94
|
%
|
$
|
333,931
|
|
2.96
|
%
|
$
|
2,262,412
|
|
2.54
|
%
|
$
|
2,638,037
|
|
2.60
|
%
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency CMO
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
2,623
|
|
2.93
|
%
|
$
|
257,491
|
|
2.47
|
%
|
$
|
260,114
|
|
2.47
|
%
|
Agency MBS
|
1,924
|
|
3.60
|
|
—
|
|
—
|
|
18,443
|
|
2.83
|
|
2,549,368
|
|
2.64
|
|
2,569,735
|
|
2.64
|
|
|||||
Agency CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
696,566
|
|
2.79
|
|
696,566
|
|
2.79
|
|
|||||
Municipal bonds and notes
|
31,407
|
|
7.50
|
|
3,839
|
|
7.00
|
|
16,804
|
|
5.80
|
|
659,331
|
|
4.83
|
|
711,381
|
|
4.98
|
|
|||||
CMBS
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
249,273
|
|
3.04
|
|
249,273
|
|
3.04
|
|
|||||
Private Label MBS
|
323
|
|
4.50
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
323
|
|
4.50
|
|
|||||
Securities held-to-maturity
|
$
|
33,654
|
|
7.25
|
%
|
$
|
3,839
|
|
7.00
|
%
|
$
|
37,870
|
|
4.16
|
%
|
$
|
4,412,029
|
|
3.00
|
%
|
$
|
4,487,392
|
|
3.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total debt securities
|
$
|
34,901
|
|
7.03
|
%
|
$
|
44,286
|
|
3.30
|
%
|
$
|
371,801
|
|
3.08
|
%
|
$
|
6,674,441
|
|
2.85
|
%
|
$
|
7,125,429
|
|
2.88
|
%
|
|
At December 31,
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
|
Amount
|
%
|
||||||||||
Residential
|
$
|
4,464,651
|
|
25.5
|
|
$
|
4,232,771
|
|
24.9
|
|
$
|
4,042,960
|
|
25.8
|
|
$
|
3,498,675
|
|
25.2
|
|
$
|
3,353,967
|
|
26.5
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
2,336,846
|
|
13.3
|
|
2,395,483
|
|
14.1
|
|
2,439,415
|
|
15.6
|
|
2,459,458
|
|
17.7
|
|
2,460,159
|
|
19.3
|
|||||
Other consumer
|
237,695
|
|
1.4
|
|
274,336
|
|
1.6
|
|
248,830
|
|
1.6
|
|
75,307
|
|
0.5
|
|
60,681
|
|
0.5
|
|||||
Total consumer
|
2,574,541
|
|
14.7
|
|
2,669,819
|
|
15.7
|
|
2,688,245
|
|
17.2
|
|
2,534,765
|
|
18.2
|
|
2,520,840
|
|
19.8
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
4,551,580
|
|
26.0
|
|
4,151,740
|
|
24.4
|
|
3,575,042
|
|
22.8
|
|
3,098,892
|
|
22.3
|
|
2,734,025
|
|
21.5
|
|||||
Asset-based
|
837,490
|
|
4.8
|
|
808,836
|
|
4.8
|
|
755,709
|
|
4.8
|
|
662,615
|
|
4.8
|
|
560,666
|
|
4.4
|
|||||
Total commercial
|
5,389,070
|
|
30.8
|
|
4,960,576
|
|
29.1
|
|
4,330,751
|
|
27.6
|
|
3,761,507
|
|
27.1
|
|
3,294,691
|
|
25.9
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
4,249,549
|
|
24.3
|
|
4,141,025
|
|
24.3
|
|
3,696,596
|
|
23.6
|
|
3,326,906
|
|
23.9
|
|
2,856,110
|
|
22.5
|
|||||
Commercial construction
|
279,531
|
|
1.6
|
|
375,041
|
|
2.2
|
|
300,246
|
|
1.9
|
|
235,449
|
|
1.7
|
|
205,397
|
|
1.6
|
|||||
Total commercial real estate
|
4,529,080
|
|
25.9
|
|
4,516,066
|
|
26.5
|
|
3,996,842
|
|
25.5
|
|
3,562,355
|
|
25.6
|
|
3,061,507
|
|
24.1
|
|||||
Equipment financing
|
545,877
|
|
3.1
|
|
630,040
|
|
3.7
|
|
594,984
|
|
3.8
|
|
532,117
|
|
3.8
|
|
455,434
|
|
3.6
|
|||||
Net unamortized premiums
|
15,316
|
|
0.1
|
|
9,402
|
|
0.1
|
|
7,477
|
|
—
|
|
2,580
|
|
—
|
|
5,466
|
|
—
|
|||||
Net deferred fees
|
5,323
|
|
—
|
|
7,914
|
|
—
|
|
10,476
|
|
0.1
|
|
8,026
|
|
0.1
|
|
7,871
|
|
0.1
|
|||||
Total loans and leases
|
$
|
17,523,858
|
|
100.0
|
|
$
|
17,026,588
|
|
100.0
|
|
$
|
15,671,735
|
|
100.0
|
|
$
|
13,900,025
|
|
100.0
|
|
$
|
12,699,776
|
|
100.0
|
|
At December 31, 2017
|
|||||||||||
|
Contractual Maturity
|
|||||||||||
(In thousands)
|
One Year Or Less
|
More Than One To Five Years
|
More Than Five Years
|
Total
|
||||||||
Residential
|
$
|
2,041
|
|
$
|
31,138
|
|
$
|
4,457,699
|
|
$
|
4,490,878
|
|
Consumer:
|
|
|
|
|
||||||||
Home equity
|
2,294
|
|
107,199
|
|
2,242,775
|
|
2,352,268
|
|
||||
Other consumer
|
19,437
|
|
205,021
|
|
13,499
|
|
237,957
|
|
||||
Total consumer
|
21,731
|
|
312,220
|
|
2,256,274
|
|
2,590,225
|
|
||||
Commercial:
|
|
|
|
|
||||||||
Commercial non-mortgage
|
669,745
|
|
3,120,899
|
|
743,271
|
|
4,533,915
|
|
||||
Asset-based
|
84,470
|
|
743,553
|
|
6,756
|
|
834,779
|
|
||||
Total commercial
|
754,215
|
|
3,864,452
|
|
750,027
|
|
5,368,694
|
|
||||
Commercial real estate:
|
|
|
|
|
||||||||
Commercial real estate
|
396,497
|
|
1,495,734
|
|
2,352,043
|
|
4,244,274
|
|
||||
Commercial construction
|
161,621
|
|
92,075
|
|
25,858
|
|
279,554
|
|
||||
Total commercial real estate
|
558,118
|
|
1,587,809
|
|
2,377,901
|
|
4,523,828
|
|
||||
Equipment financing
|
24,957
|
|
427,127
|
|
98,149
|
|
550,233
|
|
||||
Total loans and leases
|
$
|
1,361,062
|
|
$
|
6,222,746
|
|
$
|
9,940,050
|
|
$
|
17,523,858
|
|
|
|
|
|
|
||||||||
|
Interest-Rate Sensitivity
|
|||||||||||
(In thousands)
|
One Year Or Less
|
More Than One To Five Years
|
More Than Five Years
|
Total
|
||||||||
Fixed rate
|
$
|
303,905
|
|
$
|
986,768
|
|
$
|
4,118,811
|
|
$
|
5,409,484
|
|
Variable rate
|
1,057,157
|
|
5,235,978
|
|
5,821,239
|
|
12,114,374
|
|
||||
Total loans and leases
|
$
|
1,361,062
|
|
$
|
6,222,746
|
|
$
|
9,940,050
|
|
$
|
17,523,858
|
|
|
At or for the years ended December 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||
Non-performing loans and leases as a percentage of loans and leases
|
0.72
|
%
|
|
0.79
|
%
|
|
0.89
|
%
|
|
0.93
|
%
|
|
1.28
|
%
|
Non-performing assets as a percentage of loans and leases plus OREO
|
0.76
|
|
|
0.81
|
|
|
0.92
|
|
|
0.98
|
|
|
1.34
|
|
Non-performing assets as a percentage of total assets
|
0.50
|
|
|
0.53
|
|
|
0.59
|
|
|
0.61
|
|
|
0.82
|
|
ALLL as a percentage of non-performing loans and leases
|
158.00
|
|
|
144.98
|
|
|
125.05
|
|
|
122.62
|
|
|
94.10
|
|
ALLL as a percentage of loans and leases
|
1.14
|
|
|
1.14
|
|
|
1.12
|
|
|
1.15
|
|
|
1.20
|
|
Net charge-offs as a percentage of average loans and leases
|
0.20
|
|
|
0.23
|
|
|
0.23
|
|
|
0.23
|
|
|
0.47
|
|
Ratio of ALLL to net charge-offs
|
5.68x
|
|
|
5.25x
|
|
|
5.21x
|
|
|
5.21x
|
|
|
2.63x
|
|
•
|
commercial, commercial real estate, and equipment financing are performing loans and leases classified as Substandard and have a well-defined weakness that could jeopardize the full repayment of the debt, and
|
•
|
residential and consumer are performing loans 60-89 days past due and accruing.
|
|
At December 31,
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
(Dollars in thousands)
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
||||||||||
Residential
|
$
|
13,771
|
|
0.31
|
|
$
|
11,202
|
|
0.26
|
|
$
|
15,032
|
|
0.37
|
|
$
|
17,216
|
|
0.49
|
|
$
|
18,285
|
|
0.55
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
18,397
|
|
0.79
|
|
14,578
|
|
0.61
|
|
13,261
|
|
0.54
|
|
16,415
|
|
0.67
|
|
20,096
|
|
0.82
|
|||||
Other consumer
|
3,997
|
|
1.68
|
|
3,715
|
|
1.35
|
|
2,000
|
|
0.80
|
|
1,110
|
|
1.47
|
|
636
|
|
1.05
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
5,809
|
|
0.13
|
|
1,949
|
|
0.05
|
|
4,052
|
|
0.11
|
|
2,099
|
|
0.07
|
|
4,100
|
|
0.15
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
551
|
|
0.01
|
|
8,173
|
|
0.20
|
|
2,250
|
|
0.06
|
|
2,714
|
|
0.08
|
|
4,897
|
|
0.17
|
|||||
Equipment financing
|
2,358
|
|
0.43
|
|
1,596
|
|
0.25
|
|
602
|
|
0.10
|
|
701
|
|
0.13
|
|
362
|
|
0.08
|
|||||
Loans and leases past due 30-89 days
|
44,883
|
|
0.26
|
|
41,213
|
|
0.24
|
|
37,197
|
|
0.24
|
|
40,255
|
|
0.29
|
|
48,376
|
|
0.38
|
|||||
Residential
|
—
|
|
—
|
|
—
|
|
—
|
|
2,029
|
|
0.05
|
|
2,039
|
|
0.06
|
|
781
|
|
0.02
|
|||||
Commercial non-mortgage
|
644
|
|
0.01
|
|
749
|
|
0.02
|
|
22
|
|
—
|
|
48
|
|
—
|
|
4,269
|
|
0.16
|
|||||
Commercial real estate
|
243
|
|
0.01
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
232
|
|
0.01
|
|||||
Loans and leases past due 90 days and accruing
|
887
|
|
0.01
|
|
749
|
|
—
|
|
2,051
|
|
0.01
|
|
2,087
|
|
0.02
|
|
5,282
|
|
0.04
|
|||||
Total loans and leases over 30 days past due and accruing income
|
45,770
|
|
0.26
|
|
41,962
|
|
0.25
|
|
39,248
|
|
0.25
|
|
42,342
|
|
0.30
|
|
53,658
|
|
0.42
|
|||||
Deferred costs and unamortized premiums
|
77
|
|
|
|
86
|
|
|
|
86
|
|
|
|
96
|
|
|
|
189
|
|
|
|||||
Total
|
$
|
45,847
|
|
|
|
$
|
42,048
|
|
|
|
$
|
39,334
|
|
|
|
$
|
42,438
|
|
|
|
$
|
53,847
|
|
|
(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 December 31,
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
(Dollars in thousands)
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
|
Amount (1)
|
% (2)
|
||||||||||
Residential
|
$
|
44,407
|
|
0.99
|
|
$
|
47,201
|
|
1.12
|
|
$
|
54,101
|
|
1.34
|
|
$
|
64,022
|
|
1.83
|
|
$
|
80,589
|
|
2.40
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
35,601
|
|
1.52
|
|
35,875
|
|
1.50
|
|
37,279
|
|
1.53
|
|
39,950
|
|
1.62
|
|
51,679
|
|
2.10
|
|||||
Other consumer
|
1,706
|
|
0.72
|
|
1,663
|
|
0.61
|
|
558
|
|
0.22
|
|
280
|
|
0.37
|
|
139
|
|
0.23
|
|||||
Total consumer
|
37,307
|
|
1.45
|
|
37,538
|
|
1.41
|
|
37,837
|
|
1.41
|
|
40,230
|
|
1.59
|
|
51,818
|
|
2.06
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
39,402
|
|
0.87
|
|
38,550
|
|
0.93
|
|
27,086
|
|
0.76
|
|
6,436
|
|
0.21
|
|
10,933
|
|
0.40
|
|||||
Asset-based loans
|
589
|
|
0.07
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
Total commercial
|
39,991
|
|
0.74
|
|
38,550
|
|
0.78
|
|
27,086
|
|
0.63
|
|
6,436
|
|
0.17
|
|
10,933
|
|
0.33
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
4,484
|
|
0.11
|
|
9,859
|
|
0.24
|
|
16,750
|
|
0.45
|
|
15,016
|
|
0.45
|
|
13,428
|
|
0.47
|
|||||
Commercial construction
|
—
|
|
—
|
|
662
|
|
0.18
|
|
3,461
|
|
1.15
|
|
3,659
|
|
1.55
|
|
4,235
|
|
2.06
|
|||||
Total commercial real estate
|
4,484
|
|
0.10
|
|
10,521
|
|
0.23
|
|
20,211
|
|
0.51
|
|
18,675
|
|
0.52
|
|
17,663
|
|
0.58
|
|||||
Equipment financing
|
393
|
|
0.07
|
|
225
|
|
0.04
|
|
706
|
|
0.12
|
|
518
|
|
0.10
|
|
1,141
|
|
0.25
|
|||||
Total non-performing loans and leases (3)
|
126,582
|
|
0.72
|
|
134,035
|
|
0.79
|
|
139,941
|
|
0.89
|
|
129,881
|
|
0.94
|
|
162,144
|
|
1.28
|
|||||
Deferred costs and unamortized premiums
|
(69
|
)
|
|
|
(219
|
)
|
|
|
128
|
|
|
|
267
|
|
|
|
303
|
|
|
|||||
Total
|
$
|
126,513
|
|
|
|
$
|
133,816
|
|
|
|
$
|
140,069
|
|
|
|
$
|
130,148
|
|
|
|
$
|
162,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing loans and leases
|
$
|
126,582
|
|
|
|
$
|
134,035
|
|
|
|
$
|
139,941
|
|
|
|
$
|
129,881
|
|
|
|
$
|
162,144
|
|
|
Foreclosed and repossessed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential and consumer
|
5,759
|
|
|
|
3,911
|
|
|
|
5,029
|
|
|
|
3,517
|
|
|
|
4,930
|
|
|
|||||
Commercial
|
305
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,999
|
|
|
|
3,752
|
|
|
|||||
Total foreclosed and repossessed assets
|
6,064
|
|
|
|
3,911
|
|
|
|
5,029
|
|
|
|
6,516
|
|
|
|
8,682
|
|
|
|||||
Total non-performing assets
|
$
|
132,646
|
|
|
|
$
|
137,946
|
|
|
|
$
|
144,970
|
|
|
|
$
|
136,397
|
|
|
|
$
|
170,826
|
|
|
(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 $74.3 million, $75.7 million, $100.9 million, $76.9 million and $103.0 million as of December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
223,528
|
|
|
$
|
272,690
|
|
Additions
|
36,253
|
|
|
41,662
|
|
||
Paydowns/draws
|
(31,641
|
)
|
|
(66,596
|
)
|
||
Charge-offs
|
(3,178
|
)
|
|
(18,588
|
)
|
||
Transfers to OREO
|
(3,558
|
)
|
|
(5,640
|
)
|
||
Ending balance
|
$
|
221,404
|
|
|
$
|
223,528
|
|
|
|
|
|
||||
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Accrual status
|
$
|
147,113
|
|
|
$
|
147,809
|
|
Non-accrual status
|
74,291
|
|
|
75,719
|
|
||
Total recorded investment of TDR (1)
|
$
|
221,404
|
|
|
$
|
223,528
|
|
|
|
|
|
||||
Specific reserves for TDR included in the balance of ALLL
|
$
|
12,384
|
|
|
$
|
14,583
|
|
Additional funds committed to borrowers in TDR status
|
2,736
|
|
|
459
|
|
|
At December 31,
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
(In thousands)
|
Amount
|
% (3)
|
|
Amount
|
% (3)
|
|
Amount
|
% (3)
|
|
Amount
|
% (3)
|
|
Amount
|
% (3)
|
||||||||||
Residential
|
$
|
114,295
|
|
2.55
|
|
$
|
119,391
|
|
2.81
|
|
$
|
134,448
|
|
3.31
|
|
$
|
141,982
|
|
4.05
|
|
$
|
142,413
|
|
4.24
|
Consumer
|
45,436
|
|
1.75
|
|
45,673
|
|
1.70
|
|
48,425
|
|
1.79
|
|
50,249
|
|
1.97
|
|
52,092
|
|
2.05
|
|||||
Commercial (1)
|
61,673
|
|
0.59
|
|
58,464
|
|
0.58
|
|
89,817
|
|
1.01
|
|
126,563
|
|
1.61
|
|
146,428
|
|
2.15
|
|||||
Total recorded investment of TDR (2)
|
$
|
221,404
|
|
1.26
|
|
$
|
223,528
|
|
1.31
|
|
$
|
272,690
|
|
1.74
|
|
$
|
318,794
|
|
2.29
|
|
$
|
340,933
|
|
2.68
|
(1)
|
Consists of commercial, commercial real estate and equipment financing loans and leases.
|
(2)
|
Excludes accrued interest receivable of $0.1 million, $0.7 million, $1.1 million, $1.4 million and $1.0 million at December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
|
(3)
|
Represents the balance of TDR as a percentage of the outstanding balance within the comparable loan and lease category. The percentage includes the impact of deferred costs and unamortized premiums.
|
•
|
Impaired loans and leases are either analyzed on an individual or pooled basis and assessed for specific reserves measured based on the present value of expected future cash flows discounted at the effective interest rate of the loan or lease, except that as a practical expedient, impairment may be measured based on a loan or lease's observable market price, or the fair value of the collateral, if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral. The Company considers the pertinent facts and circumstances for each impaired loan or lease when selecting the appropriate method to measure impairment and evaluates, on a quarterly basis, each selection to ensure its continued appropriateness.
|
•
|
Loans and leases that are not considered impaired and have similar risk characteristics, are segmented into homogeneous pools and modeled using quantitative methods. The Company's loss estimate for its commercial portfolios utilizes an expected loss methodology that is based on probability of default (PD) and loss given default (LGD) models. The PD and LGD models are based on borrower and facility risk ratings assigned to each loan and are updated throughout the year as the borrower's financial condition changes. PD and LGD models are derived using the Company's portfolio specific historic data and are refreshed annually. Residential and consumer portfolio loss estimates are based on roll rate models that utilize the Company's historic delinquency and default data. For each segmentation the loss estimates incorporate a loss emergence period (LEP) model which represents an amount of time between when a loss event first occurs to when it is charged-off. A LEP is determined for each loan type based on the Company's historical experience and is reassessed at least annually.
|
•
|
The Company also considers qualitative factors, consistent with interagency regulatory guidance, that are not explicitly factored in the quantitative models but that can have an incremental or regressive impact on losses incurred in the current loan and lease portfolio.
|
|
At December 31,
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
% (1)
|
|
Amount
|
% (1)
|
|
Amount
|
% (1)
|
|
Amount
|
% (1)
|
|
Amount
|
% (1)
|
||||||||||
Residential
|
$
|
19,058
|
|
0.42
|
|
$
|
23,226
|
|
0.55
|
|
$
|
25,876
|
|
0.64
|
|
$
|
25,452
|
|
0.73
|
|
$
|
23,027
|
|
0.69
|
Consumer
|
36,190
|
|
1.40
|
|
45,233
|
|
1.68
|
|
42,052
|
|
1.56
|
|
43,518
|
|
1.71
|
|
41,951
|
|
1.65
|
|||||
Commercial
|
89,533
|
|
1.67
|
|
71,905
|
|
1.46
|
|
59,977
|
|
1.39
|
|
47,068
|
|
1.26
|
|
46,655
|
|
1.42
|
|||||
Commercial real estate
|
49,407
|
|
1.09
|
|
47,477
|
|
1.05
|
|
41,598
|
|
1.04
|
|
37,148
|
|
1.05
|
|
36,754
|
|
1.20
|
|||||
Equipment financing
|
5,806
|
|
1.06
|
|
6,479
|
|
1.02
|
|
5,487
|
|
0.91
|
|
6,078
|
|
1.13
|
|
4,186
|
|
0.91
|
|||||
Total ALLL
|
$
|
199,994
|
|
1.14
|
|
$
|
194,320
|
|
1.14
|
|
$
|
174,990
|
|
1.12
|
|
$
|
159,264
|
|
1.15
|
|
$
|
152,573
|
|
1.20
|
(1)
|
Percentage represents allocated ALLL to total loans and leases within the comparable category. However, the allocation of a portion of the allowance to one category of loans and leases does not preclude its availability to absorb losses in other categories.
|
|
At or for the years ended December 31,
|
||||||||||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Beginning balance
|
$
|
194,320
|
|
|
$
|
174,990
|
|
|
$
|
159,264
|
|
|
$
|
152,573
|
|
|
$
|
177,129
|
|
Provision
|
40,900
|
|
|
56,350
|
|
|
49,300
|
|
|
37,250
|
|
|
33,500
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
(2,500
|
)
|
|
(4,636
|
)
|
|
(6,508
|
)
|
|
(6,214
|
)
|
|
(11,592
|
)
|
|||||
Consumer
|
(24,447
|
)
|
|
(20,669
|
)
|
|
(17,679
|
)
|
|
(20,712
|
)
|
|
(29,037
|
)
|
|||||
Commercial
|
(8,147
|
)
|
|
(18,360
|
)
|
|
(11,522
|
)
|
|
(13,668
|
)
|
|
(19,126
|
)
|
|||||
Commercial real estate
|
(9,275
|
)
|
|
(2,682
|
)
|
|
(7,578
|
)
|
|
(3,237
|
)
|
|
(15,425
|
)
|
|||||
Equipment financing
|
(558
|
)
|
|
(565
|
)
|
|
(273
|
)
|
|
(595
|
)
|
|
(279
|
)
|
|||||
Total charge-offs
|
(44,927
|
)
|
|
(46,912
|
)
|
|
(43,560
|
)
|
|
(44,426
|
)
|
|
(75,459
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
1,024
|
|
|
1,756
|
|
|
875
|
|
|
1,324
|
|
|
1,402
|
|
|||||
Consumer
|
6,037
|
|
|
5,343
|
|
|
4,366
|
|
|
5,055
|
|
|
6,185
|
|
|||||
Commercial
|
2,358
|
|
|
1,626
|
|
|
2,738
|
|
|
4,369
|
|
|
5,123
|
|
|||||
Commercial real estate
|
165
|
|
|
631
|
|
|
647
|
|
|
885
|
|
|
1,648
|
|
|||||
Equipment financing
|
117
|
|
|
536
|
|
|
1,360
|
|
|
2,234
|
|
|
3,045
|
|
|||||
Total recoveries
|
9,701
|
|
|
9,892
|
|
|
9,986
|
|
|
13,867
|
|
|
17,403
|
|
|||||
Net charge-offs
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential
|
(1,476
|
)
|
|
(2,880
|
)
|
|
(5,633
|
)
|
|
(4,890
|
)
|
|
(10,190
|
)
|
|||||
Consumer
|
(18,410
|
)
|
|
(15,326
|
)
|
|
(13,313
|
)
|
|
(15,657
|
)
|
|
(22,852
|
)
|
|||||
Commercial
|
(5,789
|
)
|
|
(16,734
|
)
|
|
(8,784
|
)
|
|
(9,299
|
)
|
|
(14,003
|
)
|
|||||
Commercial real estate
|
(9,110
|
)
|
|
(2,051
|
)
|
|
(6,931
|
)
|
|
(2,352
|
)
|
|
(13,777
|
)
|
|||||
Equipment financing
|
(441
|
)
|
|
(29
|
)
|
|
1,087
|
|
|
1,639
|
|
|
2,766
|
|
|||||
Net charge-offs
|
(35,226
|
)
|
|
(37,020
|
)
|
|
(33,574
|
)
|
|
(30,559
|
)
|
|
(58,056
|
)
|
|||||
Ending balance
|
$
|
199,994
|
|
|
$
|
194,320
|
|
|
$
|
174,990
|
|
|
$
|
159,264
|
|
|
$
|
152,573
|
|
|
Years ended December 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||
Residential
|
0.03
|
%
|
|
0.07
|
%
|
|
0.15
|
%
|
|
0.14
|
%
|
|
0.31
|
%
|
Consumer
|
0.70
|
|
|
0.56
|
|
|
0.51
|
|
|
0.61
|
|
|
0.89
|
|
Commercial
|
0.11
|
|
|
0.36
|
|
|
0.22
|
|
|
0.26
|
|
|
0.46
|
|
Commercial real estate
|
0.20
|
|
|
0.05
|
|
|
0.18
|
|
|
0.07
|
|
|
0.48
|
|
Equipment financing
|
0.07
|
|
|
—
|
|
|
(0.20
|
)
|
|
(0.34
|
)
|
|
(0.67
|
)
|
Total net charge-offs to total average loans and leases
|
0.20
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.47
|
%
|
|
At or for the years ended December 31,
|
||||||||||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Beginning balance
|
$
|
2,287
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
|
$
|
4,384
|
|
|
$
|
5,662
|
|
Provision (benefit) (1)
|
75
|
|
|
168
|
|
|
(3,032
|
)
|
|
767
|
|
|
(1,278
|
)
|
|||||
Ending balance
|
$
|
2,362
|
|
|
$
|
2,287
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
|
$
|
4,384
|
|
(1)
|
See Note 20: Commitments and Contingencies in the Notes to Consolidated Financial Statements contained elsewhere in this report for information regarding a change in the draw down factor estimation for 2015.
|
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
(Dollars in thousands)
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|||||||||
Non-interest-bearing:
|
|
|
|
|
|
|
|
|
|||||||||
Demand
|
$
|
4,079,493
|
|
|
|
$
|
3,853,700
|
|
|
|
$
|
3,564,751
|
|
|
|||
Interest-bearing:
|
|
|
|
|
|
|
|
|
|||||||||
Checking
|
2,601,962
|
|
0.07
|
%
|
|
2,422,862
|
|
0.07
|
%
|
|
2,245,015
|
|
0.06
|
%
|
|||
Health savings accounts
|
4,839,988
|
|
0.20
|
|
|
4,150,733
|
|
0.23
|
|
|
3,561,900
|
|
0.24
|
|
|||
Money market
|
2,488,422
|
|
0.61
|
|
|
2,279,301
|
|
0.36
|
|
|
2,076,770
|
|
0.23
|
|
|||
Savings
|
4,418,032
|
|
0.23
|
|
|
4,219,681
|
|
0.19
|
|
|
3,962,364
|
|
0.18
|
|
|||
Time deposits
|
2,137,574
|
|
1.19
|
|
|
2,027,029
|
|
1.11
|
|
|
2,138,778
|
|
1.15
|
|
|||
Total interest-bearing
|
16,485,978
|
|
0.38
|
|
|
15,099,606
|
|
0.33
|
|
|
13,984,827
|
|
0.33
|
|
|||
Total average deposits
|
$
|
20,565,471
|
|
0.30
|
%
|
|
$
|
18,953,306
|
|
0.26
|
%
|
|
$
|
17,549,578
|
|
0.26
|
%
|
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
(Dollars in thousands)
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|
Average Balance
|
Average Rate
|
|||||||||
FHLB advances
|
$
|
1,764,347
|
|
1.72
|
%
|
|
$
|
2,413,309
|
|
1.20
|
%
|
|
$
|
2,084,496
|
|
1.10
|
%
|
Securities sold under agreements to repurchase
|
695,922
|
|
1.79
|
|
|
744,957
|
|
1.82
|
|
|
842,207
|
|
1.93
|
|
|||
Federal funds
|
180,738
|
|
1.06
|
|
|
202,901
|
|
0.46
|
|
|
302,756
|
|
0.21
|
|
|||
Long-term debt
|
225,639
|
|
4.60
|
|
|
225,607
|
|
4.42
|
|
|
226,292
|
|
4.27
|
|
|||
Total average borrowings
|
$
|
2,866,646
|
|
1.92
|
%
|
|
$
|
3,586,774
|
|
1.49
|
%
|
|
$
|
3,455,751
|
|
1.43
|
%
|
|
At or for the years ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Rate
|
|
Amount
|
Rate
|
|
Amount
|
Rate
|
|||||||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
|
|
|
|||||||||
At end of year
|
$
|
288,269
|
|
0.17
|
%
|
|
$
|
340,526
|
|
0.16
|
%
|
|
$
|
334,400
|
|
0.15
|
%
|
Average during year
|
310,853
|
|
0.18
|
|
|
321,460
|
|
0.16
|
|
|
325,015
|
|
0.15
|
|
|||
Highest month-end balance during year
|
335,902
|
|
—
|
|
|
365,361
|
|
—
|
|
|
409,756
|
|
—
|
|
|||
Federal funds:
|
|
|
|
|
|
|
|
|
|||||||||
At end of year
|
55,000
|
|
1.37
|
|
|
209,000
|
|
0.60
|
|
|
317,000
|
|
0.39
|
|
|||
Average during year
|
180,738
|
|
1.06
|
|
|
202,893
|
|
0.46
|
|
|
302,756
|
|
0.21
|
|
|||
Highest month-end balance during year
|
182,000
|
|
—
|
|
|
294,000
|
|
—
|
|
|
479,000
|
|
—
|
|
|
Payments Due by Period (1)
|
|
|||||||||||||
(In thousands)
|
Less than
one year
|
1-3 years
|
3-5 years
|
After 5
years
|
Total
|
||||||||||
Senior notes
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
150,000
|
|
$
|
150,000
|
|
Junior subordinated debt
|
—
|
|
—
|
|
—
|
|
77,320
|
|
77,320
|
|
|||||
FHLB advances
|
1,150,000
|
|
318,026
|
|
200,170
|
|
8,909
|
|
1,677,105
|
|
|||||
Securities sold under agreements to repurchase
|
588,269
|
|
—
|
|
—
|
|
—
|
|
588,269
|
|
|||||
Fed funds purchased
|
55,000
|
|
—
|
|
—
|
|
—
|
|
55,000
|
|
|||||
Deposits with stated maturity dates
|
1,381,899
|
|
930,509
|
|
155,873
|
|
127
|
|
2,468,408
|
|
|||||
Operating leases
|
29,181
|
|
54,289
|
|
45,437
|
|
77,541
|
|
206,448
|
|
|||||
Purchase obligations
|
47,614
|
|
72,309
|
|
8,142
|
|
—
|
|
128,065
|
|
|||||
Total contractual obligations
|
$
|
3,251,963
|
|
$
|
1,375,133
|
|
$
|
409,622
|
|
$
|
313,897
|
|
$
|
5,350,615
|
|
(1)
|
Amounts for borrowings do not include interest. Amounts for leases are reflected as specified in the underlying contracts.
|
•
|
unfunded commitments remaining for particular investments in private equity funds of $9.1 million, for which neither the payment timing, nor eventual obligation is certain;
|
•
|
credit related financial instruments with contractual amounts totaling $5.8 billion, of which many of these commitments are expected to expire unused or only partially used, and therefore, the total amount of these commitments does not necessarily reflect future cash payments; and
|
•
|
liabilities for UTPs totaling $5.5 million, for which uncertainty exists regarding the amount that may ultimately be paid, as well as the timing of any such payment.
|
•
|
the size and duration of the investment portfolio;
|
•
|
the size and duration of the wholesale funding portfolio;
|
•
|
off-balance sheet interest rate contracts; and
|
•
|
the pricing and structure of loans and deposits.
|
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
December 31, 2017
|
N/A
|
(5.9)%
|
3.4%
|
6.4%
|
December 31, 2016
|
N/A
|
N/A
|
2.4%
|
4.7%
|
|
-200bp
|
-100bp
|
+100bp
|
+200bp
|
December 31, 2017
|
N/A
|
(10.4)%
|
5.3%
|
9.9%
|
December 31, 2016
|
N/A
|
N/A
|
2.9%
|
6.3%
|
|
Short End of the Yield Curve
|
|
Long End of the Yield Curve
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
December 31, 2017
|
(8.5)%
|
(4.3)%
|
2.0%
|
3.9%
|
|
(3.9)%
|
(1.7)%
|
1.3%
|
2.3%
|
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
|
||||||
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
|
-100bp
|
-50bp
|
+50bp
|
+100bp
|
December 31, 2017
|
(14.8)%
|
(7.5)%
|
2.9%
|
5.7%
|
|
(4.8)%
|
(2.2)%
|
2.2%
|
4.0%
|
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
|
||||||||||
At December 31, 2017
|
|
|
|
|
||||||||
Assets
|
$
|
26,487,645
|
|
$
|
25,971,043
|
|
$
|
505,148
|
|
$
|
(631,744
|
)
|
Liabilities
|
23,785,687
|
|
22,509,322
|
|
729,967
|
|
(624,789
|
)
|
||||
Net
|
$
|
2,701,958
|
|
$
|
3,461,721
|
|
$
|
(224,819
|
)
|
$
|
(6,955
|
)
|
Net change as % base net economic value
|
|
|
|
(0.2
|
)%
|
|||||||
|
|
|
|
|
||||||||
At December 31, 2016
|
|
|
|
|
||||||||
Assets
|
$
|
26,072,529
|
|
$
|
25,527,648
|
|
N/A
|
$
|
(633,934
|
)
|
||
Liabilities
|
23,545,517
|
|
22,650,967
|
|
N/A
|
(555,854
|
)
|
|||||
Net
|
$
|
2,527,012
|
|
$
|
2,876,681
|
|
N/A
|
$
|
(78,080
|
)
|
||
Net change as % base net economic value
|
|
|
|
(2.7
|
)%
|
|
Page No.
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets
|
|
Consolidated Statements of Income
|
|
Consolidated Statements of Comprehensive Income
|
|
Consolidated Statements of Shareholders' Equity
|
|
Consolidated Statements of Cash Flows
|
|
Notes to Consolidated Financial Statements
|
|
December 31,
|
||||||
(In thousands, except share data)
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
231,158
|
|
|
$
|
190,663
|
|
Interest-bearing deposits
|
25,628
|
|
|
29,461
|
|
||
Securities available-for-sale, at fair value
|
2,638,037
|
|
|
2,991,091
|
|
||
Investment securities held-to-maturity (fair value of $4,456,350 and $4,125,125)
|
4,487,392
|
|
|
4,160,658
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
151,566
|
|
|
194,646
|
|
||
Loans held for sale (valued under fair value option $20,888 and $60,260)
|
20,888
|
|
|
67,577
|
|
||
Loans and leases
|
17,523,858
|
|
|
17,026,588
|
|
||
Allowance for loan and lease losses
|
(199,994
|
)
|
|
(194,320
|
)
|
||
Loans and leases, net
|
17,323,864
|
|
|
16,832,268
|
|
||
Deferred tax assets, net
|
92,630
|
|
|
84,391
|
|
||
Premises and equipment, net
|
130,001
|
|
|
137,413
|
|
||
Goodwill
|
538,373
|
|
|
538,373
|
|
||
Other intangible assets, net
|
29,611
|
|
|
33,674
|
|
||
Cash surrender value of life insurance policies
|
531,820
|
|
|
517,852
|
|
||
Accrued interest receivable and other assets
|
286,677
|
|
|
294,462
|
|
||
Total assets
|
$
|
26,487,645
|
|
|
$
|
26,072,529
|
|
Liabilities and shareholders' equity:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
4,191,496
|
|
|
$
|
4,021,061
|
|
Interest-bearing
|
16,802,233
|
|
|
15,282,796
|
|
||
Total deposits
|
20,993,729
|
|
|
19,303,857
|
|
||
Securities sold under agreements to repurchase and other borrowings
|
643,269
|
|
|
949,526
|
|
||
Federal Home Loan Bank advances
|
1,677,105
|
|
|
2,842,908
|
|
||
Long-term debt
|
225,767
|
|
|
225,514
|
|
||
Accrued expenses and other liabilities
|
245,817
|
|
|
223,712
|
|
||
Total liabilities
|
23,785,687
|
|
|
23,545,517
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, $.01 par value: Authorized - 3,000,000 shares;
|
|
|
|
||||
Series F issued and outstanding (6,000 shares at December 31, 2017)
|
145,056
|
|
|
—
|
|
||
Series E issued and outstanding (5,060 shares at December 31, 2016)
|
—
|
|
|
122,710
|
|
||
Common stock, $.01 par value: Authorized - 200,000,000 shares;
|
|
|
|
||||
Issued (93,680,291 and 93,651,601 shares)
|
937
|
|
|
937
|
|
||
Paid-in capital
|
1,122,164
|
|
|
1,125,937
|
|
||
Retained earnings
|
1,595,762
|
|
|
1,425,320
|
|
||
Treasury stock, at cost (1,658,526 and 1,899,502 shares)
|
(70,430
|
)
|
|
(70,899
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(91,531
|
)
|
|
(76,993
|
)
|
||
Total shareholders' equity
|
2,701,958
|
|
|
2,527,012
|
|
||
Total liabilities and shareholders' equity
|
$
|
26,487,645
|
|
|
$
|
26,072,529
|
|
|
Years ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest Income:
|
|
|
|
|
|
||||||
Interest and fees on loans and leases
|
$
|
708,566
|
|
|
$
|
621,028
|
|
|
$
|
552,441
|
|
Taxable interest and dividends on securities
|
181,131
|
|
|
180,346
|
|
|
190,061
|
|
|||
Non-taxable interest on securities
|
22,874
|
|
|
19,090
|
|
|
15,948
|
|
|||
Loans held for sale
|
1,034
|
|
|
1,449
|
|
|
1,590
|
|
|||
Total interest income
|
913,605
|
|
|
821,913
|
|
|
760,040
|
|
|||
Interest Expense:
|
|
|
|
|
|
||||||
Deposits
|
62,253
|
|
|
49,858
|
|
|
46,031
|
|
|||
Securities sold under agreements to repurchase and other borrowings
|
14,365
|
|
|
14,528
|
|
|
16,861
|
|
|||
Federal Home Loan Bank advances
|
30,320
|
|
|
29,033
|
|
|
22,858
|
|
|||
Long-term debt
|
10,380
|
|
|
9,981
|
|
|
9,665
|
|
|||
Total interest expense
|
117,318
|
|
|
103,400
|
|
|
95,415
|
|
|||
Net interest income
|
796,287
|
|
|
718,513
|
|
|
664,625
|
|
|||
Provision for loan and lease losses
|
40,900
|
|
|
56,350
|
|
|
49,300
|
|
|||
Net interest income after provision for loan and lease losses
|
755,387
|
|
|
662,163
|
|
|
615,325
|
|
|||
Non-interest Income:
|
|
|
|
|
|
||||||
Deposit service fees
|
151,137
|
|
|
140,685
|
|
|
135,057
|
|
|||
Loan and lease related fees
|
26,448
|
|
|
26,581
|
|
|
25,594
|
|
|||
Wealth and investment services
|
31,055
|
|
|
28,962
|
|
|
32,486
|
|
|||
Mortgage banking activities
|
9,937
|
|
|
14,635
|
|
|
7,795
|
|
|||
Increase in cash surrender value of life insurance policies
|
14,627
|
|
|
14,759
|
|
|
13,020
|
|
|||
Gain on sale of investment securities, net
|
—
|
|
|
414
|
|
|
609
|
|
|||
Impairment loss on securities recognized in earnings
|
(126
|
)
|
|
(149
|
)
|
|
(110
|
)
|
|||
Other income
|
26,400
|
|
|
38,591
|
|
|
23,326
|
|
|||
Total non-interest income
|
259,478
|
|
|
264,478
|
|
|
237,777
|
|
|||
Non-interest Expense:
|
|
|
|
|
|
||||||
Compensation and benefits
|
359,926
|
|
|
332,127
|
|
|
297,517
|
|
|||
Occupancy
|
60,490
|
|
|
61,110
|
|
|
48,836
|
|
|||
Technology and equipment
|
89,464
|
|
|
79,882
|
|
|
80,813
|
|
|||
Intangible assets amortization
|
4,062
|
|
|
5,652
|
|
|
6,340
|
|
|||
Marketing
|
17,421
|
|
|
19,703
|
|
|
16,053
|
|
|||
Professional and outside services
|
16,858
|
|
|
14,801
|
|
|
11,156
|
|
|||
Deposit insurance
|
25,649
|
|
|
26,006
|
|
|
24,042
|
|
|||
Other expense
|
87,205
|
|
|
83,910
|
|
|
70,584
|
|
|||
Total non-interest expense
|
661,075
|
|
|
623,191
|
|
|
555,341
|
|
|||
Income before income tax expense
|
353,790
|
|
|
303,450
|
|
|
297,761
|
|
|||
Income tax expense
|
98,351
|
|
|
96,323
|
|
|
93,032
|
|
|||
Net income
|
255,439
|
|
|
207,127
|
|
|
204,729
|
|
|||
Preferred stock dividends and other
|
(8,608
|
)
|
|
(8,704
|
)
|
|
(9,368
|
)
|
|||
Earnings applicable to common shareholders
|
$
|
246,831
|
|
|
$
|
198,423
|
|
|
$
|
195,361
|
|
|
|
|
|
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.68
|
|
|
$
|
2.17
|
|
|
$
|
2.15
|
|
Diluted
|
2.67
|
|
|
2.16
|
|
|
2.13
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
||||||
Total available-for-sale and transferred securities
|
(7,590
|
)
|
|
(9,069
|
)
|
|
(22,828
|
)
|
|||
Total derivative instruments
|
4,565
|
|
|
5,912
|
|
|
2,550
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
4,135
|
|
|
4,270
|
|
|
(1,567
|
)
|
|||
Other comprehensive income (loss), net of tax
|
1,110
|
|
|
1,113
|
|
|
(21,845
|
)
|
|||
Comprehensive income
|
$
|
256,549
|
|
|
$
|
208,240
|
|
|
$
|
182,884
|
|
(In thousands, except per share data)
|
Preferred
Stock |
Common
Stock |
Paid-In
Capital |
Retained
Earnings |
Treasury
Stock, at cost |
Accumulated
Other Comprehensive Loss, Net of Tax |
Total Shareholders'
Equity |
||||||||||||||
Balance at December 31, 2014
|
$
|
151,649
|
|
$
|
936
|
|
$
|
1,127,534
|
|
$
|
1,202,251
|
|
$
|
(103,294
|
)
|
$
|
(56,261
|
)
|
$
|
2,322,815
|
|
Net income
|
—
|
|
—
|
|
—
|
|
204,729
|
|
—
|
|
—
|
|
204,729
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21,845
|
)
|
(21,845
|
)
|
|||||||
Dividends and dividend equivalents declared on common stock $0.89 per share
|
—
|
|
—
|
|
119
|
|
(81,316
|
)
|
—
|
|
—
|
|
(81,197
|
)
|
|||||||
Dividends on Series A preferred stock $21.25 per share
|
—
|
|
—
|
|
—
|
|
(615
|
)
|
—
|
|
—
|
|
(615
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Common stock issued
|
—
|
|
1
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Preferred stock conversion
|
(28,939
|
)
|
—
|
|
(3,429
|
)
|
—
|
|
32,368
|
|
—
|
|
—
|
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,906
|
|
(1,005
|
)
|
11,046
|
|
—
|
|
12,947
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(2,781
|
)
|
—
|
|
5,841
|
|
—
|
|
3,060
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,251
|
)
|
—
|
|
(5,251
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(12,564
|
)
|
—
|
|
(12,564
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(23
|
)
|
—
|
|
—
|
|
—
|
|
(23
|
)
|
|||||||
Balance at December 31, 2015
|
122,710
|
|
937
|
|
1,124,325
|
|
1,315,948
|
|
(71,854
|
)
|
(78,106
|
)
|
2,413,960
|
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
207,127
|
|
—
|
|
—
|
|
207,127
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,113
|
|
1,113
|
|
|||||||
Dividends and dividend equivalents declared on common stock $0.98 per share
|
—
|
|
—
|
|
149
|
|
(90,062
|
)
|
—
|
|
—
|
|
(89,913
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
2,976
|
|
403
|
|
10,713
|
|
—
|
|
14,092
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(1,350
|
)
|
—
|
|
13,112
|
|
—
|
|
11,762
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,664
|
)
|
—
|
|
(11,664
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,206
|
)
|
—
|
|
(11,206
|
)
|
|||||||
Common stock warrants repurchased
|
—
|
|
—
|
|
(163
|
)
|
—
|
|
—
|
|
—
|
|
(163
|
)
|
|||||||
Balance at December 31, 2016
|
122,710
|
|
937
|
|
1,125,937
|
|
1,425,320
|
|
(70,899
|
)
|
(76,993
|
)
|
2,527,012
|
|
|||||||
Adoption of ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from AOCI
|
—
|
|
—
|
|
—
|
|
15,648
|
|
—
|
|
(15,648
|
)
|
—
|
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
255,439
|
|
—
|
|
—
|
|
255,439
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,110
|
|
1,110
|
|
|||||||
Dividends and dividend equivalents declared on common stock $1.03 per share
|
—
|
|
—
|
|
168
|
|
(95,097
|
)
|
—
|
|
—
|
|
(94,929
|
)
|
|||||||
Dividends on Series E preferred stock $1,600.00 per share
|
—
|
|
—
|
|
—
|
|
(8,096
|
)
|
—
|
|
—
|
|
(8,096
|
)
|
|||||||
Dividends accrued on Series F preferred stock
|
—
|
|
—
|
|
—
|
|
(88
|
)
|
—
|
|
—
|
|
(88
|
)
|
|||||||
Stock-based compensation, net of tax impact
|
—
|
|
—
|
|
—
|
|
2,636
|
|
11,548
|
|
—
|
|
14,184
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
(3,941
|
)
|
—
|
|
12,200
|
|
—
|
|
8,259
|
|
|||||||
Common shares acquired related to stock compensation plan activity
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,694
|
)
|
—
|
|
(11,694
|
)
|
|||||||
Common stock repurchase program
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,585
|
)
|
—
|
|
(11,585
|
)
|
|||||||
Redemption of Series E preferred stock
|
(122,710
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(122,710
|
)
|
|||||||
Issuance of Series F preferred stock
|
145,056
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
145,056
|
|
|||||||
Balance at December 31, 2017
|
$
|
145,056
|
|
$
|
937
|
|
$
|
1,122,164
|
|
$
|
1,595,762
|
|
$
|
(70,430
|
)
|
$
|
(91,531
|
)
|
$
|
2,701,958
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan and lease losses
|
40,900
|
|
|
56,350
|
|
|
49,300
|
|
|||
Deferred tax (benefit) expense
|
(9,074
|
)
|
|
17,700
|
|
|
(15,513
|
)
|
|||
Depreciation and amortization
|
37,172
|
|
|
36,449
|
|
|
34,678
|
|
|||
Amortization of earning assets and funding premium/discount, net
|
45,444
|
|
|
57,331
|
|
|
54,555
|
|
|||
Stock-based compensation
|
12,276
|
|
|
11,438
|
|
|
10,935
|
|
|||
Gain on sale, net of write-down, on foreclosed and repossessed assets
|
(784
|
)
|
|
(976
|
)
|
|
(311
|
)
|
|||
(Gain on sale) write-down, net on premises and equipment
|
(15
|
)
|
|
397
|
|
|
(244
|
)
|
|||
Impairment loss on securities recognized in earnings
|
126
|
|
|
149
|
|
|
110
|
|
|||
Gain on the sale of investment securities, net
|
—
|
|
|
(414
|
)
|
|
(609
|
)
|
|||
Increase in cash surrender value of life insurance policies
|
(14,627
|
)
|
|
(14,759
|
)
|
|
(13,020
|
)
|
|||
Mortgage banking activities
|
(9,937
|
)
|
|
(14,635
|
)
|
|
(7,795
|
)
|
|||
Proceeds from sale of loans held for sale
|
333,027
|
|
|
438,925
|
|
|
452,590
|
|
|||
Originations of loans held for sale
|
(287,634
|
)
|
|
(452,886
|
)
|
|
(449,048
|
)
|
|||
Net decrease (increase) in derivative contract assets net of liabilities
|
32,763
|
|
|
27,929
|
|
|
(6,489
|
)
|
|||
Gain on redemption of other assets
|
—
|
|
|
(7,331
|
)
|
|
—
|
|
|||
Net (increase) decrease in accrued interest receivable and other assets
|
(19,790
|
)
|
|
54,269
|
|
|
(44,554
|
)
|
|||
Net increase (decrease) in accrued expenses and other liabilities
|
29,680
|
|
|
(18,918
|
)
|
|
33,478
|
|
|||
Net cash provided by operating activities
|
444,966
|
|
|
398,145
|
|
|
302,792
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Net decrease (increase) in interest-bearing deposits
|
3,833
|
|
|
126,446
|
|
|
(23,212
|
)
|
|||
Purchases of available-for-sale securities
|
(660,106
|
)
|
|
(980,870
|
)
|
|
(903,240
|
)
|
|||
Proceeds from maturities and principal payments of available-for-sale securities
|
984,732
|
|
|
672,965
|
|
|
558,301
|
|
|||
Proceeds from sales of available-for-sale securities
|
—
|
|
|
259,283
|
|
|
123,270
|
|
|||
Purchases of held-to-maturity securities
|
(1,043,278
|
)
|
|
(1,066,156
|
)
|
|
(761,033
|
)
|
|||
Proceeds from maturities and principal payments of held-to-maturity securities
|
687,439
|
|
|
795,953
|
|
|
681,124
|
|
|||
Net proceeds (purchase) of Federal Home Loan Bank stock
|
43,080
|
|
|
(6,299
|
)
|
|
4,943
|
|
|||
Alternative investments return of capital (capital call), net
|
873
|
|
|
(381
|
)
|
|
458
|
|
|||
Net increase in loans
|
(549,213
|
)
|
|
(1,440,141
|
)
|
|
(1,813,811
|
)
|
|||
Proceeds from loans not originated for sale
|
14,679
|
|
|
34,170
|
|
|
33,644
|
|
|||
Purchase of life insurance policies
|
—
|
|
|
—
|
|
|
(50,000
|
)
|
|||
Proceeds from life insurance policies
|
746
|
|
|
—
|
|
|
3,912
|
|
|||
Proceeds from the sale of foreclosed properties and repossessed assets
|
7,603
|
|
|
9,205
|
|
|
10,511
|
|
|||
Proceeds from the sale of premises and equipment
|
3,357
|
|
|
1,550
|
|
|
650
|
|
|||
Additions to premises and equipment
|
(28,546
|
)
|
|
(40,731
|
)
|
|
(36,115
|
)
|
|||
Proceeds from redemption of other assets
|
7,581
|
|
|
—
|
|
|
—
|
|
|||
Acquisition of business, net cash acquired
|
—
|
|
|
—
|
|
|
1,396,414
|
|
|||
Net cash used for investing activities
|
(527,220
|
)
|
|
(1,635,006
|
)
|
|
(774,184
|
)
|
|||
|
|||||||||||
See accompanying Notes to Consolidated Financial Statements.
|
WEBSTER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
|
|||||||||||
|
|||||||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Financing Activities:
|
|
|
|
|
|
||||||
Net increase in deposits
|
1,690,197
|
|
|
1,351,609
|
|
|
853,921
|
|
|||
Contingent consideration
|
—
|
|
|
5,000
|
|
|
—
|
|
|||
Proceeds from Federal Home Loan Bank advances
|
12,255,000
|
|
|
19,630,000
|
|
|
13,505,000
|
|
|||
Repayments of Federal Home Loan Bank advances
|
(13,420,791
|
)
|
|
(19,451,219
|
)
|
|
(13,700,279
|
)
|
|||
Net decrease in securities sold under agreements to repurchase and other borrowings
|
(306,257
|
)
|
|
(201,874
|
)
|
|
(99,356
|
)
|
|||
Redemption of Series E preferred stock
|
(122,710
|
)
|
|
—
|
|
|
—
|
|
|||
Issuance of Series F preferred stock
|
145,056
|
|
|
—
|
|
|
—
|
|
|||
Dividends paid to common shareholders
|
(94,630
|
)
|
|
(89,522
|
)
|
|
(80,964
|
)
|
|||
Dividends paid to preferred shareholders
|
(8,096
|
)
|
|
(8,096
|
)
|
|
(8,711
|
)
|
|||
Exercise of stock options
|
8,259
|
|
|
11,762
|
|
|
3,060
|
|
|||
Excess tax benefits from stock-based compensation
|
—
|
|
|
3,204
|
|
|
2,338
|
|
|||
Common stock repurchase program
|
(11,585
|
)
|
|
(11,206
|
)
|
|
(12,564
|
)
|
|||
Common shares acquired related to stock compensation plan activity
|
(11,694
|
)
|
|
(11,664
|
)
|
|
(5,251
|
)
|
|||
Common stock warrants repurchased
|
—
|
|
|
(163
|
)
|
|
(23
|
)
|
|||
Net cash provided by financing activities
|
122,749
|
|
|
1,227,831
|
|
|
457,171
|
|
|||
Net increase (decrease) in cash and due from banks
|
40,495
|
|
|
(9,030
|
)
|
|
(14,221
|
)
|
|||
Cash and due from banks at beginning of period
|
190,663
|
|
|
199,693
|
|
|
213,914
|
|
|||
Cash and due from banks at end of period
|
$
|
231,158
|
|
|
$
|
190,663
|
|
|
$
|
199,693
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
114,046
|
|
|
$
|
102,438
|
|
|
$
|
95,428
|
|
Income taxes paid
|
109,059
|
|
|
80,143
|
|
|
106,991
|
|
|||
Noncash investing and financing activities:
|
|
|
|
|
|
||||||
Transfer of loans and leases to foreclosed properties and repossessed assets
|
$
|
8,972
|
|
|
$
|
6,769
|
|
|
$
|
8,714
|
|
Transfer of loans from portfolio to loans held for sale
|
7,234
|
|
|
39,383
|
|
|
585
|
|
|||
Deposits assumed in business acquisition
|
—
|
|
|
—
|
|
|
1,446,899
|
|
|||
Preferred stock conversion
|
—
|
|
|
—
|
|
|
28,939
|
|
•
|
the power to direct the activities of the VIE that most significantly affect the VIE's economic performance; and
|
•
|
an obligation to absorb losses of the VIE, or the right to receive benefits from the VIE, that could potentially be significant to the VIE.
|
|
Minimum
|
|
Maximum
|
|
Building and Improvements
|
5
|
-
|
40
|
years
|
Leasehold improvements
|
5
|
-
|
20
|
years (or term or lease, if shorter)
|
Fixtures and equipment
|
5
|
-
|
10
|
years
|
Data processing and software
|
3
|
-
|
7
|
years
|
•
|
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 December 31,
|
||||||||||||||||||||||||
|
2017
|
|
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
|
$
|
1,247
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,247
|
|
|
$
|
734
|
|
$
|
—
|
|
$
|
—
|
|
$
|
734
|
|
Agency CMO
|
308,989
|
|
1,158
|
|
(3,814
|
)
|
306,333
|
|
|
419,865
|
|
3,344
|
|
(3,503
|
)
|
419,706
|
|
||||||||
Agency MBS
|
1,124,960
|
|
2,151
|
|
(19,270
|
)
|
1,107,841
|
|
|
969,460
|
|
4,398
|
|
(19,509
|
)
|
954,349
|
|
||||||||
Agency CMBS
|
608,276
|
|
—
|
|
(20,250
|
)
|
588,026
|
|
|
587,776
|
|
63
|
|
(14,567
|
)
|
573,272
|
|
||||||||
CMBS
|
358,984
|
|
2,157
|
|
(74
|
)
|
361,067
|
|
|
473,974
|
|
4,093
|
|
(702
|
)
|
477,365
|
|
||||||||
CLO
|
209,075
|
|
910
|
|
(134
|
)
|
209,851
|
|
|
425,083
|
|
2,826
|
|
(519
|
)
|
427,390
|
|
||||||||
Single issuer-trust preferred
|
7,096
|
|
—
|
|
(46
|
)
|
7,050
|
|
|
30,381
|
|
—
|
|
(1,748
|
)
|
28,633
|
|
||||||||
Corporate debt
|
56,504
|
|
797
|
|
(679
|
)
|
56,622
|
|
|
108,490
|
|
1,502
|
|
(350
|
)
|
109,642
|
|
||||||||
Total available-for-sale
|
$
|
2,675,131
|
|
$
|
7,173
|
|
$
|
(44,267
|
)
|
$
|
2,638,037
|
|
|
$
|
3,015,763
|
|
$
|
16,226
|
|
$
|
(40,898
|
)
|
$
|
2,991,091
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency CMO
|
$
|
260,114
|
|
$
|
664
|
|
$
|
(4,824
|
)
|
$
|
255,954
|
|
|
$
|
339,455
|
|
$
|
1,977
|
|
$
|
(3,824
|
)
|
$
|
337,608
|
|
Agency MBS
|
2,569,735
|
|
16,989
|
|
(37,442
|
)
|
2,549,282
|
|
|
2,317,449
|
|
26,388
|
|
(41,768
|
)
|
2,302,069
|
|
||||||||
Agency CMBS
|
696,566
|
|
—
|
|
(10,011
|
)
|
686,555
|
|
|
547,726
|
|
694
|
|
(1,348
|
)
|
547,072
|
|
||||||||
Municipal bonds and notes
|
711,381
|
|
8,584
|
|
(6,558
|
)
|
713,407
|
|
|
655,813
|
|
4,389
|
|
(25,749
|
)
|
634,453
|
|
||||||||
CMBS
|
249,273
|
|
2,175
|
|
(620
|
)
|
250,828
|
|
|
298,538
|
|
4,107
|
|
(411
|
)
|
302,234
|
|
||||||||
Private Label MBS
|
323
|
|
1
|
|
—
|
|
324
|
|
|
1,677
|
|
12
|
|
—
|
|
1,689
|
|
||||||||
Total held-to-maturity
|
$
|
4,487,392
|
|
$
|
28,413
|
|
$
|
(59,455
|
)
|
$
|
4,456,350
|
|
|
$
|
4,160,658
|
|
$
|
37,567
|
|
$
|
(73,100
|
)
|
$
|
4,125,125
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning balance
|
$
|
3,243
|
|
|
$
|
3,288
|
|
|
$
|
3,696
|
|
Reduction for securities sold or called
|
(2,005
|
)
|
|
(194
|
)
|
|
(518
|
)
|
|||
Additions for OTTI not previously recognized
|
126
|
|
|
149
|
|
|
110
|
|
|||
Ending balance
|
$
|
1,364
|
|
|
$
|
3,243
|
|
|
$
|
3,288
|
|
|
At December 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:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
81,001
|
|
$
|
(449
|
)
|
|
$
|
119,104
|
|
$
|
(3,365
|
)
|
|
27
|
$
|
200,105
|
|
$
|
(3,814
|
)
|
Agency MBS
|
416,995
|
|
(2,920
|
)
|
|
606,021
|
|
(16,350
|
)
|
|
135
|
1,023,016
|
|
(19,270
|
)
|
||||||
Agency CMBS
|
54,182
|
|
(851
|
)
|
|
533,844
|
|
(19,399
|
)
|
|
36
|
588,026
|
|
(20,250
|
)
|
||||||
CMBS
|
23,869
|
|
(74
|
)
|
|
—
|
|
—
|
|
|
6
|
23,869
|
|
(74
|
)
|
||||||
CLO
|
56,335
|
|
(134
|
)
|
|
—
|
|
—
|
|
|
3
|
56,335
|
|
(134
|
)
|
||||||
Single issuer-trust preferred
|
7,050
|
|
(46
|
)
|
|
—
|
|
—
|
|
|
1
|
7,050
|
|
(46
|
)
|
||||||
Corporate debt
|
11,082
|
|
(395
|
)
|
|
6,265
|
|
(284
|
)
|
|
4
|
17,347
|
|
(679
|
)
|
||||||
Total available-for-sale in an unrealized loss position
|
$
|
650,514
|
|
$
|
(4,869
|
)
|
|
$
|
1,265,234
|
|
$
|
(39,398
|
)
|
|
212
|
$
|
1,915,748
|
|
$
|
(44,267
|
)
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
98,090
|
|
$
|
(1,082
|
)
|
|
$
|
106,775
|
|
$
|
(3,742
|
)
|
|
22
|
$
|
204,865
|
|
$
|
(4,824
|
)
|
Agency MBS
|
762,107
|
|
(4,555
|
)
|
|
1,197,839
|
|
(32,887
|
)
|
|
205
|
1,959,946
|
|
(37,442
|
)
|
||||||
Agency CMBS
|
576,770
|
|
(7,599
|
)
|
|
109,785
|
|
(2,412
|
)
|
|
56
|
686,555
|
|
(10,011
|
)
|
||||||
Municipal bonds and notes
|
6,432
|
|
(38
|
)
|
|
226,861
|
|
(6,520
|
)
|
|
92
|
233,293
|
|
(6,558
|
)
|
||||||
CMBS
|
92,670
|
|
(413
|
)
|
|
14,115
|
|
(207
|
)
|
|
13
|
106,785
|
|
(620
|
)
|
||||||
Total held-to-maturity in an unrealized loss position
|
$
|
1,536,069
|
|
$
|
(13,687
|
)
|
|
$
|
1,655,375
|
|
$
|
(45,768
|
)
|
|
388
|
$
|
3,191,444
|
|
$
|
(59,455
|
)
|
|
At December 31, 2016
|
||||||||||||||||||||
|
Less Than Twelve Months
|
|
Twelve Months or Longer
|
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
|
Fair
Value
|
Unrealized
Losses
|
|
# of
Holdings
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency CMO
|
$
|
107,853
|
|
$
|
(2,168
|
)
|
|
$
|
67,351
|
|
$
|
(1,335
|
)
|
|
15
|
$
|
175,204
|
|
$
|
(3,503
|
)
|
Agency MBS
|
512,075
|
|
(10,503
|
)
|
|
252,779
|
|
(9,006
|
)
|
|
97
|
764,854
|
|
(19,509
|
)
|
||||||
Agency CMBS
|
554,246
|
|
(14,567
|
)
|
|
—
|
|
—
|
|
|
32
|
554,246
|
|
(14,567
|
)
|
||||||
CMBS
|
12,427
|
|
(24
|
)
|
|
63,930
|
|
(678
|
)
|
|
12
|
76,357
|
|
(702
|
)
|
||||||
CLO
|
49,946
|
|
(54
|
)
|
|
50,237
|
|
(465
|
)
|
|
5
|
100,183
|
|
(519
|
)
|
||||||
Single issuer-trust preferred
|
—
|
|
—
|
|
|
28,633
|
|
(1,748
|
)
|
|
5
|
28,633
|
|
(1,748
|
)
|
||||||
Corporate debt
|
—
|
|
—
|
|
|
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
|
)
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Proceeds from sales (1)
|
$
|
—
|
|
|
$
|
259,273
|
|
|
$
|
95,101
|
|
|
|
|
|
|
|
||||||
Gross realized gains on sales
|
$
|
—
|
|
|
$
|
2,891
|
|
|
$
|
1,029
|
|
Less: Gross realized losses on sales
|
—
|
|
|
2,477
|
|
|
420
|
|
|||
Gain on sale of investment securities, net
|
$
|
—
|
|
|
$
|
414
|
|
|
$
|
609
|
|
(1)
|
There were no sales during the year ended December 31, 2017.
|
|
At December 31, 2017
|
||||||||||||
|
|
|
|
||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Due in one year or less
|
$
|
1,247
|
|
$
|
1,247
|
|
|
$
|
33,654
|
|
$
|
34,145
|
|
Due after one year through five years
|
40,066
|
|
40,447
|
|
|
3,839
|
|
3,857
|
|
||||
Due after five through ten years
|
332,558
|
|
333,931
|
|
|
37,870
|
|
38,450
|
|
||||
Due after ten years
|
2,301,260
|
|
2,262,412
|
|
|
4,412,029
|
|
4,379,898
|
|
||||
Total debt securities
|
$
|
2,675,131
|
|
$
|
2,638,037
|
|
|
$
|
4,487,392
|
|
$
|
4,456,350
|
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Residential
|
$
|
4,490,878
|
|
|
$
|
4,254,682
|
|
Consumer
|
2,590,225
|
|
|
2,684,500
|
|
||
Commercial
|
5,368,694
|
|
|
4,940,931
|
|
||
Commercial Real Estate
|
4,523,828
|
|
|
4,510,846
|
|
||
Equipment Financing
|
550,233
|
|
|
635,629
|
|
||
Loans and leases (1) (2)
|
$
|
17,523,858
|
|
|
$
|
17,026,588
|
|
(1)
|
Loans and leases include net deferred fees and net premiums and discounts of $20.6 million and $17.3 million at December 31, 2017 and December 31, 2016, respectively.
|
(2)
|
At December 31, 2017, the Company had pledged $6.7 billion of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston.
|
|
At December 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
|
$
|
8,643
|
|
$
|
5,146
|
|
$
|
—
|
|
$
|
44,481
|
|
$
|
58,270
|
|
$
|
4,432,608
|
|
$
|
4,490,878
|
|
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
12,668
|
|
5,770
|
|
—
|
|
35,645
|
|
54,083
|
|
2,298,185
|
|
2,352,268
|
|
|||||||
Other consumer
|
2,556
|
|
1,444
|
|
—
|
|
1,707
|
|
5,707
|
|
232,250
|
|
237,957
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial non-mortgage
|
5,212
|
|
603
|
|
644
|
|
39,214
|
|
45,673
|
|
4,488,242
|
|
4,533,915
|
|
|||||||
Asset-based
|
—
|
|
—
|
|
—
|
|
589
|
|
589
|
|
834,190
|
|
834,779
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
478
|
|
77
|
|
248
|
|
4,484
|
|
5,287
|
|
4,238,987
|
|
4,244,274
|
|
|||||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
279,554
|
|
279,554
|
|
|||||||
Equipment financing
|
1,732
|
|
626
|
|
—
|
|
393
|
|
2,751
|
|
547,482
|
|
550,233
|
|
|||||||
Total
|
$
|
31,289
|
|
$
|
13,666
|
|
$
|
892
|
|
$
|
126,513
|
|
$
|
172,360
|
|
$
|
17,351,498
|
|
$
|
17,523,858
|
|
|
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 Year ended December 31, 2017
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2017
|
$
|
23,226
|
|
$
|
45,233
|
|
$
|
71,905
|
|
$
|
47,477
|
|
$
|
6,479
|
|
$
|
194,320
|
|
Provision (benefit) charged to expense
|
(2,692
|
)
|
9,367
|
|
23,417
|
|
11,040
|
|
(232
|
)
|
40,900
|
|
||||||
Losses charged off
|
(2,500
|
)
|
(24,447
|
)
|
(8,147
|
)
|
(9,275
|
)
|
(558
|
)
|
(44,927
|
)
|
||||||
Recoveries
|
1,024
|
|
6,037
|
|
2,358
|
|
165
|
|
117
|
|
9,701
|
|
||||||
Balance at December 31, 2017
|
$
|
19,058
|
|
$
|
36,190
|
|
$
|
89,533
|
|
$
|
49,407
|
|
$
|
5,806
|
|
$
|
199,994
|
|
Individually evaluated for impairment
|
$
|
4,805
|
|
$
|
1,668
|
|
$
|
9,786
|
|
$
|
272
|
|
$
|
23
|
|
$
|
16,554
|
|
Collectively evaluated for impairment
|
$
|
14,253
|
|
$
|
34,522
|
|
$
|
79,747
|
|
$
|
49,135
|
|
$
|
5,783
|
|
$
|
183,440
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
114,295
|
|
$
|
45,436
|
|
$
|
72,471
|
|
$
|
11,226
|
|
$
|
3,325
|
|
$
|
246,753
|
|
Collectively evaluated for impairment
|
4,376,583
|
|
2,544,789
|
|
5,296,223
|
|
4,512,602
|
|
546,908
|
|
17,277,105
|
|
||||||
Loans and leases
|
$
|
4,490,878
|
|
$
|
2,590,225
|
|
$
|
5,368,694
|
|
$
|
4,523,828
|
|
$
|
550,233
|
|
$
|
17,523,858
|
|
|
At or for the Year ended December 31, 2016
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2016
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
59,977
|
|
$
|
41,598
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Provision (benefit) charged to expense
|
230
|
|
18,507
|
|
28,662
|
|
7,930
|
|
1,021
|
|
56,350
|
|
||||||
Losses charged off
|
(4,636
|
)
|
(20,669
|
)
|
(18,360
|
)
|
(2,682
|
)
|
(565
|
)
|
(46,912
|
)
|
||||||
Recoveries
|
1,756
|
|
5,343
|
|
1,626
|
|
631
|
|
536
|
|
9,892
|
|
||||||
Balance at December 31, 2016
|
$
|
23,226
|
|
$
|
45,233
|
|
$
|
71,905
|
|
$
|
47,477
|
|
$
|
6,479
|
|
$
|
194,320
|
|
Individually evaluated for impairment
|
$
|
8,090
|
|
$
|
2,903
|
|
$
|
7,422
|
|
$
|
169
|
|
$
|
9
|
|
$
|
18,593
|
|
Collectively evaluated for impairment
|
$
|
15,136
|
|
$
|
42,330
|
|
$
|
64,483
|
|
$
|
47,308
|
|
$
|
6,470
|
|
$
|
175,727
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
119,424
|
|
$
|
45,719
|
|
$
|
53,037
|
|
$
|
24,755
|
|
$
|
6,420
|
|
$
|
249,355
|
|
Collectively evaluated for impairment
|
4,135,258
|
|
2,638,781
|
|
4,887,894
|
|
4,486,091
|
|
629,209
|
|
16,777,233
|
|
||||||
Loans and leases
|
$
|
4,254,682
|
|
$
|
2,684,500
|
|
$
|
4,940,931
|
|
$
|
4,510,846
|
|
$
|
635,629
|
|
$
|
17,026,588
|
|
|
At or for the Year ended December 31, 2015
|
|||||||||||||||||
(In thousands)
|
Residential
|
Consumer
|
Commercial
|
Commercial
Real Estate
|
Equipment
Financing
|
Total
|
||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2015
|
$
|
25,452
|
|
$
|
43,518
|
|
$
|
47,068
|
|
$
|
37,148
|
|
$
|
6,078
|
|
$
|
159,264
|
|
Provision (benefit) charged to expense
|
6,057
|
|
11,847
|
|
21,693
|
|
11,381
|
|
(1,678
|
)
|
49,300
|
|
||||||
Losses charged off
|
(6,508
|
)
|
(17,679
|
)
|
(11,522
|
)
|
(7,578
|
)
|
(273
|
)
|
(43,560
|
)
|
||||||
Recoveries
|
875
|
|
4,366
|
|
2,738
|
|
647
|
|
1,360
|
|
9,986
|
|
||||||
Balance at December 31, 2015
|
$
|
25,876
|
|
$
|
42,052
|
|
$
|
59,977
|
|
$
|
41,598
|
|
$
|
5,487
|
|
$
|
174,990
|
|
Individually evaluated for impairment
|
$
|
10,364
|
|
$
|
3,477
|
|
$
|
5,197
|
|
$
|
3,163
|
|
$
|
3
|
|
$
|
22,204
|
|
Collectively evaluated for impairment
|
$
|
15,512
|
|
$
|
38,575
|
|
$
|
54,780
|
|
$
|
38,435
|
|
$
|
5,484
|
|
$
|
152,786
|
|
|
|
|
|
|
|
|
||||||||||||
Loan and lease balances:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
134,448
|
|
$
|
48,425
|
|
$
|
56,581
|
|
$
|
39,295
|
|
$
|
422
|
|
$
|
279,171
|
|
Collectively evaluated for impairment
|
3,926,553
|
|
2,654,135
|
|
4,259,418
|
|
3,952,354
|
|
600,104
|
|
15,392,564
|
|
||||||
Loans and leases
|
$
|
4,061,001
|
|
$
|
2,702,560
|
|
$
|
4,315,999
|
|
$
|
3,991,649
|
|
$
|
600,526
|
|
$
|
15,671,735
|
|
|
At December 31, 2017
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded
Investment
|
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential:
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
125,352
|
|
$
|
114,295
|
|
$
|
69,759
|
|
$
|
44,536
|
|
$
|
4,805
|
|
Consumer home equity
|
50,809
|
|
45,436
|
|
34,418
|
|
11,018
|
|
1,668
|
|
|||||
Commercial:
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
79,900
|
|
71,882
|
|
27,313
|
|
44,569
|
|
9,786
|
|
|||||
Asset-based
|
3,272
|
|
589
|
|
589
|
|
—
|
|
—
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
11,994
|
|
11,226
|
|
6,387
|
|
4,839
|
|
272
|
|
|||||
Commercial construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Equipment financing
|
3,409
|
|
3,325
|
|
2,932
|
|
393
|
|
23
|
|
|||||
Total
|
$
|
274,736
|
|
$
|
246,753
|
|
$
|
141,398
|
|
$
|
105,355
|
|
$
|
16,554
|
|
|
At December 31, 2016
|
||||||||||||||
(In thousands)
|
Unpaid
Principal
Balance
|
Total
Recorded
Investment
|
Recorded
Investment
No Allowance
|
Recorded
Investment
With Allowance
|
Related
Valuation
Allowance
|
||||||||||
Residential:
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
131,468
|
|
$
|
119,424
|
|
$
|
21,068
|
|
$
|
98,356
|
|
$
|
8,090
|
|
Consumer home equity
|
52,432
|
|
45,719
|
|
22,746
|
|
22,973
|
|
2,903
|
|
|||||
Commercial:
|
|
|
|
|
|
||||||||||
Commercial non-mortgage
|
57,732
|
|
53,037
|
|
26,006
|
|
27,031
|
|
7,422
|
|
|||||
Asset based
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
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
|
|
|
Years ended December 31,
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
(In thousands)
|
Average
Recorded
Investment
|
Accrued
Interest
Income
|
Cash Basis Interest Income
|
|
Average
Recorded
Investment
|
Accrued
Interest
Income
|
Cash Basis Interest Income
|
|
Average
Recorded Investment |
Accrued
Interest Income |
Cash Basis Interest Income
|
||||||||||||||||||
Residential
|
$
|
116,859
|
|
$
|
4,138
|
|
$
|
1,264
|
|
|
$
|
126,936
|
|
$
|
4,377
|
|
$
|
1,200
|
|
|
$
|
138,215
|
|
$
|
4,473
|
|
$
|
1,139
|
|
Consumer home equity
|
45,578
|
|
1,323
|
|
1,046
|
|
|
47,072
|
|
1,361
|
|
985
|
|
|
49,337
|
|
1,451
|
|
1,099
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial non-mortgage
|
62,459
|
|
1,095
|
|
—
|
|
|
54,708
|
|
1,540
|
|
—
|
|
|
46,379
|
|
1,319
|
|
—
|
|
|||||||||
Asset based
|
295
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
17,397
|
|
417
|
|
—
|
|
|
28,451
|
|
511
|
|
—
|
|
|
64,495
|
|
1,165
|
|
—
|
|
|||||||||
Commercial construction
|
594
|
|
12
|
|
—
|
|
|
3,574
|
|
92
|
|
—
|
|
|
6,062
|
|
133
|
|
—
|
|
|||||||||
Equipment financing
|
4,872
|
|
207
|
|
—
|
|
|
3,421
|
|
184
|
|
—
|
|
|
527
|
|
16
|
|
—
|
|
|||||||||
Total
|
$
|
248,054
|
|
$
|
7,192
|
|
$
|
2,310
|
|
|
$
|
264,162
|
|
$
|
8,065
|
|
$
|
2,185
|
|
|
$
|
305,015
|
|
$
|
8,557
|
|
$
|
2,238
|
|
|
Commercial
|
|
Commercial Real Estate
|
|
Equipment Financing
|
||||||||||||||||||
|
At December 31,
|
|
At December 31,
|
|
At December 31,
|
||||||||||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
(1) - (6) Pass
|
$
|
5,048,162
|
|
|
$
|
4,655,007
|
|
|
$
|
4,355,916
|
|
|
$
|
4,357,458
|
|
|
$
|
525,105
|
|
|
$
|
618,084
|
|
(7) Special Mention
|
104,594
|
|
|
56,240
|
|
|
62,065
|
|
|
69,023
|
|
|
8,022
|
|
|
1,324
|
|
||||||
(8) Substandard
|
206,883
|
|
|
226,603
|
|
|
105,847
|
|
|
84,365
|
|
|
17,106
|
|
|
16,221
|
|
||||||
(9) Doubtful
|
9,055
|
|
|
3,081
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
5,368,694
|
|
|
$
|
4,940,931
|
|
|
$
|
4,523,828
|
|
|
$
|
4,510,846
|
|
|
$
|
550,233
|
|
|
$
|
635,629
|
|
|
At December 31,
|
||||||
(Dollars in thousands)
|
2017
|
|
2016
|
||||
Accrual status
|
$
|
147,113
|
|
|
$
|
147,809
|
|
Non-accrual status
|
74,291
|
|
|
75,719
|
|
||
Total recorded investment of TDR (1)
|
$
|
221,404
|
|
|
$
|
223,528
|
|
Specific reserves for TDR included in the balance of ALLL
|
$
|
12,384
|
|
|
$
|
14,583
|
|
Additional funds committed to borrowers in TDR status
|
2,736
|
|
|
459
|
|
(1)
|
Total recorded investment of TDRs exclude $0.1 million and $0.7 million at December 31, 2017 and December 31, 2016, respectively, of accrued interest receivable.
|
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
Number of
Loans and
Leases
|
Post-
Modification
Recorded
Investment(1)
|
|
Number of
Loans and
Leases
|
Post-
Modification
Recorded
Investment(1)
|
|
Number of
Loans and
Leases
|
Post-
Modification
Recorded
Investment(1)
|
|||||||||
(Dollars in thousands)
|
|||||||||||||||||
Residential:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
16
|
|
$
|
2,569
|
|
|
17
|
|
$
|
2,801
|
|
|
27
|
|
$
|
4,909
|
|
Adjusted Interest rates
|
2
|
|
335
|
|
|
2
|
|
528
|
|
|
3
|
|
573
|
|
|||
Combination Rate and Maturity
|
12
|
|
1,733
|
|
|
13
|
|
1,537
|
|
|
26
|
|
5,315
|
|
|||
Other (2)
|
39
|
|
6,200
|
|
|
24
|
|
4,090
|
|
|
30
|
|
4,366
|
|
|||
Consumer home equity:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
12
|
|
976
|
|
|
11
|
|
484
|
|
|
12
|
|
1,012
|
|
|||
Adjusted Interest rates
|
1
|
|
247
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Combination Rate and Maturity
|
14
|
|
3,469
|
|
|
15
|
|
1,156
|
|
|
12
|
|
945
|
|
|||
Other (2)
|
73
|
|
4,907
|
|
|
52
|
|
3,131
|
|
|
68
|
|
3,646
|
|
|||
Commercial non mortgage:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
12
|
|
1,233
|
|
|
12
|
|
14,883
|
|
|
3
|
|
254
|
|
|||
Adjusted Interest rates
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
24
|
|
|||
Combination Rate and Maturity
|
18
|
|
9,592
|
|
|
2
|
|
648
|
|
|
7
|
|
5,361
|
|
|||
Other (2)
|
4
|
|
6,375
|
|
|
13
|
|
1,767
|
|
|
20
|
|
22,048
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
—
|
|
—
|
|
|
3
|
|
4,921
|
|
|
1
|
|
315
|
|
|||
Adjusted Interest rates
|
—
|
|
—
|
|
|
1
|
|
237
|
|
|
—
|
|
—
|
|
|||
Combination Rate and Maturity
|
—
|
|
—
|
|
|
2
|
|
335
|
|
|
1
|
|
42
|
|
|||
Other (2)
|
—
|
|
—
|
|
|
1
|
|
509
|
|
|
1
|
|
405
|
|
|||
Equipment Financing
|
|
|
|
|
|
|
|
|
|||||||||
Extended Maturity
|
—
|
|
—
|
|
|
7
|
|
6,642
|
|
|
—
|
|
—
|
|
|||
Total
|
203
|
|
$
|
37,636
|
|
|
175
|
|
$
|
43,669
|
|
|
212
|
|
$
|
49,215
|
|
(1)
|
Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of the restructurings was not significant.
|
(2)
|
Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, and/or other concessions.
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
(1) - (6) Pass
|
$
|
8,268
|
|
|
$
|
10,210
|
|
(7) Special Mention
|
355
|
|
|
7
|
|
||
(8) Substandard
|
53,050
|
|
|
45,509
|
|
||
(9) Doubtful
|
—
|
|
|
2,738
|
|
||
Total
|
$
|
61,673
|
|
|
$
|
58,464
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning balance
|
$
|
790
|
|
|
$
|
1,192
|
|
|
$
|
1,059
|
|
Provision (benefit) charged to expense
|
100
|
|
|
(303
|
)
|
|
133
|
|
|||
Repurchased loans and settlements charged off
|
(18
|
)
|
|
(99
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
872
|
|
|
$
|
790
|
|
|
$
|
1,192
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Residential mortgage loans held for sale:
|
|
|
|
|
|
||||||
Proceeds from sale
|
$
|
335,656
|
|
|
$
|
438,925
|
|
|
$
|
452,590
|
|
Loans sold with servicing rights retained
|
304,788
|
|
|
399,318
|
|
|
416,277
|
|
|||
|
|
|
|
|
|
||||||
Net gain on sale
|
6,211
|
|
|
11,629
|
|
|
7,795
|
|
|||
Ancillary fees
|
2,629
|
|
|
3,532
|
|
|
—
|
|
|||
Fair value option adjustment
|
1,097
|
|
|
(526
|
)
|
|
—
|
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Land
|
$
|
11,302
|
|
|
$
|
12,595
|
|
Buildings and improvements
|
80,646
|
|
|
83,903
|
|
||
Leasehold improvements
|
82,067
|
|
|
83,971
|
|
||
Fixtures and equipment
|
76,665
|
|
|
76,146
|
|
||
Data processing and software
|
234,667
|
|
|
220,002
|
|
||
Total premises and equipment
|
485,347
|
|
|
476,617
|
|
||
Less: Accumulated depreciation and amortization
|
(355,346
|
)
|
|
(339,204
|
)
|
||
Premises and equipment, net
|
$
|
130,001
|
|
|
$
|
137,413
|
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
637
|
|
|
$
|
637
|
|
Additions
|
2,006
|
|
|
—
|
|
||
Write-downs
|
(529
|
)
|
|
—
|
|
||
Sales
|
(1,970
|
)
|
|
—
|
|
||
Ending balance
|
$
|
144
|
|
|
$
|
637
|
|
|
At December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
(In thousands)
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||
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
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
||||||||||||
HSA Bank - Core deposit intangible assets
|
$
|
22,000
|
|
$
|
(8,610
|
)
|
$
|
13,390
|
|
|
$
|
22,000
|
|
$
|
(6,162
|
)
|
$
|
15,838
|
|
HSA Bank - Customer relationships
|
21,000
|
|
(4,779
|
)
|
16,221
|
|
|
21,000
|
|
(3,164
|
)
|
17,836
|
|
||||||
Total other intangible assets
|
$
|
43,000
|
|
$
|
(13,389
|
)
|
$
|
29,611
|
|
|
$
|
43,000
|
|
$
|
(9,326
|
)
|
$
|
33,674
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
96,364
|
|
|
$
|
73,194
|
|
|
$
|
97,575
|
|
State and local
|
11,061
|
|
|
5,429
|
|
|
10,970
|
|
|||
Total current
|
107,425
|
|
|
78,623
|
|
|
108,545
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
39,568
|
|
|
12,542
|
|
|
(7,279
|
)
|
|||
State and local
|
(48,642
|
)
|
|
5,158
|
|
|
(8,234
|
)
|
|||
Total deferred
|
(9,074
|
)
|
|
17,700
|
|
|
(15,513
|
)
|
|||
|
|
|
|
|
|
||||||
Total federal
|
135,932
|
|
|
85,736
|
|
|
90,296
|
|
|||
Total state and local
|
(37,581
|
)
|
|
10,587
|
|
|
2,736
|
|
|||
Income tax expense
|
$
|
98,351
|
|
|
$
|
96,323
|
|
|
$
|
93,032
|
|
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|||||||||
Income tax expense at federal statutory rate
|
$
|
123,826
|
|
35.0
|
%
|
|
$
|
106,208
|
|
35.0
|
%
|
|
$
|
104,217
|
|
35.0
|
%
|
Reconciliation to reported income tax expense:
|
|
|
|
|
|
|
|
|
|||||||||
SALT expense, net of federal
|
8,189
|
|
2.3
|
|
|
6,882
|
|
2.3
|
|
|
7,563
|
|
2.5
|
|
|||
Tax-exempt interest income, net
|
(10,826
|
)
|
(3.1
|
)
|
|
(8,917
|
)
|
(2.9
|
)
|
|
(7,117
|
)
|
(2.4
|
)
|
|||
SALT DTA adjustments, net of federal
|
(28,724
|
)
|
(8.1
|
)
|
|
—
|
|
—
|
|
|
(5,785
|
)
|
(1.9
|
)
|
|||
Tax Act impacts, net
|
20,891
|
|
5.9
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Excess tax benefits, net
|
(6,349
|
)
|
(1.8
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Increase in cash surrender value of life insurance
|
(5,120
|
)
|
(1.4
|
)
|
|
(5,166
|
)
|
(1.7
|
)
|
|
(4,557
|
)
|
(1.5
|
)
|
|||
Other, net
|
(3,536
|
)
|
(1.0
|
)
|
|
(2,684
|
)
|
(1.0
|
)
|
|
(1,289
|
)
|
(0.5
|
)
|
|||
Income tax expense and effective tax rate
|
$
|
98,351
|
|
27.8
|
%
|
|
$
|
96,323
|
|
31.7
|
%
|
|
$
|
93,032
|
|
31.2
|
%
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan and lease losses
|
$
|
51,203
|
|
|
$
|
77,908
|
|
Net operating loss and credit carry forwards
|
71,813
|
|
|
64,644
|
|
||
Compensation and employee benefit plans
|
25,023
|
|
|
46,433
|
|
||
Net losses on derivative instruments
|
3,767
|
|
|
8,624
|
|
||
Net unrealized loss on securities available for sale
|
9,548
|
|
|
9,898
|
|
||
Other
|
12,273
|
|
|
17,682
|
|
||
Gross deferred tax assets
|
173,627
|
|
|
225,189
|
|
||
Valuation allowance
|
(38,292
|
)
|
|
(71,474
|
)
|
||
Total deferred tax assets, net of valuation allowance
|
$
|
135,335
|
|
|
$
|
153,715
|
|
Deferred tax liabilities:
|
|
|
|
||||
Equipment-financing leases
|
$
|
27,955
|
|
|
$
|
41,910
|
|
Deferred income on repurchase of debt
|
1,275
|
|
|
4,251
|
|
||
Intangible assets
|
6,164
|
|
|
9,952
|
|
||
Mortgage servicing assets
|
4,445
|
|
|
7,313
|
|
||
Other
|
2,866
|
|
|
5,898
|
|
||
Gross deferred tax liabilities
|
42,705
|
|
|
69,324
|
|
||
Deferred tax assets, net
|
$
|
92,630
|
|
|
$
|
84,391
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning balance
|
$
|
3,847
|
|
|
$
|
5,094
|
|
|
$
|
4,593
|
|
Additions as a result of tax positions taken during the current year
|
584
|
|
|
613
|
|
|
865
|
|
|||
Additions as a result of tax positions taken during prior years
|
7
|
|
|
—
|
|
|
1,254
|
|
|||
Reductions as a result of tax positions taken during prior years
|
(61
|
)
|
|
(625
|
)
|
|
(247
|
)
|
|||
Reductions relating to settlements with taxing authorities
|
(392
|
)
|
|
(693
|
)
|
|
(992
|
)
|
|||
Reductions as a result of lapse of statute of limitation periods
|
(390
|
)
|
|
(542
|
)
|
|
(379
|
)
|
|||
Ending balance
|
$
|
3,595
|
|
|
$
|
3,847
|
|
|
$
|
5,094
|
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Non-interest-bearing:
|
|
|
|
||||
Demand
|
$
|
4,191,496
|
|
|
$
|
4,021,061
|
|
Interest-bearing:
|
|
|
|
||||
Checking
|
2,736,952
|
|
|
2,528,274
|
|
||
Health savings accounts
|
5,038,681
|
|
|
4,362,503
|
|
||
Money market
|
2,209,492
|
|
|
2,047,121
|
|
||
Savings
|
4,348,700
|
|
|
4,320,090
|
|
||
Time deposits
|
2,468,408
|
|
|
2,024,808
|
|
||
Total interest-bearing
|
16,802,233
|
|
|
15,282,796
|
|
||
Total deposits
|
$
|
20,993,729
|
|
|
$
|
19,303,857
|
|
|
|
|
|
||||
Time deposits and interest-bearing checking, included in above balances, obtained through brokers
|
$
|
898,157
|
|
|
$
|
848,618
|
|
Time deposits, included in above balance, that meet or exceed the FDIC limit
|
561,512
|
|
|
490,721
|
|
||
Demand deposit overdrafts reclassified as loan balances
|
2,210
|
|
|
1,885
|
|
(In thousands)
|
At December 31, 2017
|
||
2018
|
$
|
1,381,899
|
|
2019
|
693,554
|
|
|
2020
|
236,955
|
|
|
2021
|
106,042
|
|
|
2022
|
49,831
|
|
|
Thereafter
|
127
|
|
|
Total time deposits
|
$
|
2,468,408
|
|
|
At December 31,
|
||||||||
(In thousands)
|
2017
|
|
2016
|
||||||
|
Total Outstanding
|
Rate
|
|
Total Outstanding
|
Rate
|
||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
||||
Original maturity of one year or less
|
$
|
288,269
|
|
0.17
|
|
$
|
340,526
|
|
0.16
|
Original maturity of greater than one year, non-callable
|
300,000
|
|
3.10
|
|
400,000
|
|
3.09
|
||
Total securities sold under agreements to repurchase
|
588,269
|
|
1.66
|
|
740,526
|
|
1.82
|
||
Fed funds purchased
|
55,000
|
|
1.37
|
|
209,000
|
|
0.46
|
||
Securities sold under agreements to repurchase and other borrowings
|
$
|
643,269
|
|
1.64
|
|
$
|
949,526
|
|
1.53
|
|
At December 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
(Dollars in thousands)
|
Total
Outstanding
|
Weighted-
Average Contractual Coupon Rate
|
|
Total
Outstanding
|
Weighted-
Average Contractual Coupon Rate
|
||||||
Maturing within 1 year
|
$
|
1,150,000
|
|
1.48
|
%
|
|
$
|
2,130,500
|
|
0.71
|
%
|
After 1 but within 2 years
|
103,026
|
|
1.81
|
|
|
200,000
|
|
1.36
|
|
||
After 2 but within 3 years
|
215,000
|
|
1.73
|
|
|
128,026
|
|
1.73
|
|
||
After 3 but within 4 years
|
200,000
|
|
4.13
|
|
|
175,000
|
|
1.77
|
|
||
After 4 but within 5 years
|
170
|
|
—
|
|
|
200,000
|
|
1.81
|
|
||
After 5 years
|
8,909
|
|
1.96
|
|
|
9,370
|
|
2.59
|
|
||
|
1,677,105
|
|
1.85
|
|
|
2,842,896
|
|
0.95
|
|
||
Premiums on advances
|
—
|
|
|
|
12
|
|
|
||||
Federal Home Loan Bank advances
|
$
|
1,677,105
|
|
|
|
$
|
2,842,908
|
|
|
||
|
|
|
|
|
|
||||||
Aggregate carrying value of assets pledged as collateral
|
$
|
6,402,066
|
|
|
|
$
|
5,967,318
|
|
|
||
Remaining borrowing capacity
|
$
|
2,600,624
|
|
|
|
$
|
1,192,758
|
|
|
|
At December 31,
|
|||||||
(Dollars in thousands)
|
2017
|
|
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
|
(727
|
)
|
|
(845
|
)
|
|||
Debt issuance cost on senior fixed-rate notes
|
(826
|
)
|
|
(961
|
)
|
|||
Long-term debt
|
$
|
225,767
|
|
|
$
|
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 4.55% at December 31, 2017 and 3.94% at December 31, 2016.
|
|
Preferred Stock Series E
|
Preferred Stock Series F
|
Common Stock Issued
|
Treasury Stock Held
|
Common Stock Outstanding
|
|||||
Balance at January 1, 2017
|
5,060
|
|
—
|
|
93,651,601
|
|
1,899,502
|
|
91,752,099
|
|
Restricted share activity
|
—
|
|
—
|
|
—
|
|
(124,800
|
)
|
124,800
|
|
Stock options exercised
|
—
|
|
—
|
|
—
|
|
(338,176
|
)
|
338,176
|
|
Common stock repurchased
|
—
|
|
—
|
|
—
|
|
222,000
|
|
(222,000
|
)
|
Warrant exercise
|
—
|
|
—
|
|
28,690
|
|
—
|
|
28,690
|
|
Series F Preferred Stock issuance
|
—
|
|
6,000
|
|
—
|
|
—
|
|
—
|
|
Series E Preferred Stock redemption
|
(5,060
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Balance at December 31, 2017
|
—
|
|
6,000
|
|
93,680,291
|
|
1,658,526
|
|
92,021,765
|
|
(In thousands)
|
Available For Sale and Transferred Securities
|
Derivative Instruments
|
Defined Benefit Pension and Other Postretirement Benefit Plans
|
Total
|
||||||||
Balance at December 31, 2014
|
$
|
16,421
|
|
$
|
(25,530
|
)
|
$
|
(47,152
|
)
|
$
|
(56,261
|
)
|
Other comprehensive (loss) income before reclassifications
|
(22,512
|
)
|
(3,136
|
)
|
(5,500
|
)
|
(31,148
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(316
|
)
|
5,686
|
|
3,933
|
|
9,303
|
|
||||
Net current-period other comprehensive (loss) income, net of tax
|
(22,828
|
)
|
2,550
|
|
(1,567
|
)
|
(21,845
|
)
|
||||
Balance at December 31, 2015
|
(6,407
|
)
|
(22,980
|
)
|
(48,719
|
)
|
(78,106
|
)
|
||||
Other comprehensive (loss) income before reclassifications
|
(8,901
|
)
|
825
|
|
(232
|
)
|
(8,308
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(168
|
)
|
5,087
|
|
4,502
|
|
9,421
|
|
||||
Net current-period other comprehensive (loss) income, net of tax
|
(9,069
|
)
|
5,912
|
|
4,270
|
|
1,113
|
|
||||
Balance at December 31, 2016
|
(15,476
|
)
|
(17,068
|
)
|
(44,449
|
)
|
(76,993
|
)
|
||||
Adoption of ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from AOCI
|
(4,881
|
)
|
(2,513
|
)
|
(8,254
|
)
|
(15,648
|
)
|
||||
Other comprehensive (loss) income before reclassifications
|
(7,590
|
)
|
181
|
|
98
|
|
(7,311
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
—
|
|
4,384
|
|
4,037
|
|
8,421
|
|
||||
Net current-period other comprehensive (loss) income, net of tax
|
(7,590
|
)
|
4,565
|
|
4,135
|
|
1,110
|
|
||||
Balance at December 31, 2017
|
$
|
(27,947
|
)
|
$
|
(15,016
|
)
|
$
|
(48,568
|
)
|
$
|
(91,531
|
)
|
|
Years ended December 31,
|
|
||||||||||
Accumulated Other Comprehensive Loss Components
|
2017
|
|
2016
|
|
2015
|
Associated Line Item in the Consolidated Statements Of Income
|
||||||
(In thousands)
|
|
|
|
|
|
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
|
|
|
||||||
Unrealized gains on investments
|
$
|
—
|
|
|
$
|
414
|
|
|
$
|
609
|
|
Gain on sale of investment securities, net
|
Unrealized losses on investments
|
—
|
|
|
(149
|
)
|
|
(110
|
)
|
Impairment loss recognized in earnings
|
|||
Total before tax
|
—
|
|
|
265
|
|
|
499
|
|
|
|||
Tax expense
|
—
|
|
|
(97
|
)
|
|
(183
|
)
|
Income tax expense
|
|||
Net of tax
|
$
|
—
|
|
|
$
|
168
|
|
|
$
|
316
|
|
|
Derivative instruments:
|
|
|
|
|
|
|
||||||
Cash flow hedges
|
$
|
(7,160
|
)
|
|
$
|
(8,020
|
)
|
|
$
|
(8,965
|
)
|
Total interest expense
|
Tax benefit
|
2,776
|
|
|
2,933
|
|
|
3,279
|
|
Income tax expense
|
|||
Net of tax
|
$
|
(4,384
|
)
|
|
$
|
(5,087
|
)
|
|
$
|
(5,686
|
)
|
|
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
|
|
|
||||||
Amortization of net loss
|
$
|
(6,612
|
)
|
|
$
|
(7,126
|
)
|
|
$
|
(6,161
|
)
|
(1)
|
Prior service costs
|
—
|
|
|
(14
|
)
|
|
(73
|
)
|
(1)
|
|||
Total before tax
|
(6,612
|
)
|
|
(7,140
|
)
|
|
(6,234
|
)
|
|
|||
Tax benefit
|
2,575
|
|
|
2,638
|
|
|
2,301
|
|
Income tax expense
|
|||
Net of tax
|
$
|
(4,037
|
)
|
|
$
|
(4,502
|
)
|
|
$
|
(3,933
|
)
|
|
|
Year ended December 31, 2017
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized loss during the period
|
$
|
(12,423
|
)
|
$
|
4,833
|
|
$
|
(7,590
|
)
|
Reclassification for net gain included in net income
|
—
|
|
—
|
|
—
|
|
|||
Net non-credit other-than-temporary impairment
|
—
|
|
—
|
|
—
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
—
|
|
—
|
|
—
|
|
|||
Total available-for-sale and transferred securities
|
(12,423
|
)
|
4,833
|
|
(7,590
|
)
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized gain during the period
|
291
|
|
(110
|
)
|
181
|
|
|||
Reclassification adjustment for net loss included in net income
|
7,160
|
|
(2,776
|
)
|
4,384
|
|
|||
Total derivative instruments
|
7,451
|
|
(2,886
|
)
|
4,565
|
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
155
|
|
(57
|
)
|
98
|
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
6,612
|
|
(2,575
|
)
|
4,037
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
—
|
|
—
|
|
—
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
6,767
|
|
(2,632
|
)
|
4,135
|
|
|||
Other comprehensive income, net of tax
|
$
|
1,795
|
|
$
|
(685
|
)
|
$
|
1,110
|
|
|
Year ended December 31, 2016
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized loss during the period
|
$
|
(14,113
|
)
|
$
|
5,212
|
|
$
|
(8,901
|
)
|
Reclassification for net gain included in net income
|
(414
|
)
|
152
|
|
(262
|
)
|
|||
Net non-credit other-than-temporary impairment
|
149
|
|
(55
|
)
|
94
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
—
|
|
—
|
|
—
|
|
|||
Total available-for-sale and transferred securities
|
(14,378
|
)
|
5,309
|
|
(9,069
|
)
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized loss during the period
|
1,331
|
|
(506
|
)
|
825
|
|
|||
Reclassification adjustment for net loss included in net income
|
8,020
|
|
(2,933
|
)
|
5,087
|
|
|||
Total derivative instruments
|
9,351
|
|
(3,439
|
)
|
5,912
|
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
(368
|
)
|
136
|
|
(232
|
)
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
7,126
|
|
(2,633
|
)
|
4,493
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
14
|
|
(5
|
)
|
9
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
6,772
|
|
(2,502
|
)
|
4,270
|
|
|||
Other comprehensive loss, net of tax
|
$
|
1,745
|
|
$
|
(632
|
)
|
$
|
1,113
|
|
|
Year ended December 31, 2015
|
||||||||
(In thousands)
|
Pre-Tax Amount
|
Tax Benefit (Expense)
|
Net of Tax Amount
|
||||||
Available-for-sale and transferred securities:
|
|
|
|
||||||
Net unrealized gain during the period
|
$
|
(35,701
|
)
|
$
|
13,166
|
|
$
|
(22,535
|
)
|
Reclassification for net gain included in net income
|
(609
|
)
|
223
|
|
(386
|
)
|
|||
Net non-credit other-than-temporary impairment
|
110
|
|
(40
|
)
|
70
|
|
|||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
37
|
|
(14
|
)
|
23
|
|
|||
Total available-for-sale and transferred securities
|
(36,163
|
)
|
13,335
|
|
(22,828
|
)
|
|||
Derivative instruments:
|
|
|
|
||||||
Net unrealized loss during the period
|
(4,945
|
)
|
1,809
|
|
(3,136
|
)
|
|||
Reclassification adjustment for net loss included in net income
|
8,965
|
|
(3,279
|
)
|
5,686
|
|
|||
Total derivative instruments
|
4,020
|
|
(1,470
|
)
|
2,550
|
|
|||
Defined benefit pension and other postretirement benefit plans:
|
|
|
|
||||||
Current year actuarial loss
|
(8,719
|
)
|
3,219
|
|
(5,500
|
)
|
|||
Reclassification adjustment for amortization of net loss included in net income
|
6,161
|
|
(2,274
|
)
|
3,887
|
|
|||
Reclassification adjustment for prior service cost included in net income
|
73
|
|
(27
|
)
|
46
|
|
|||
Total defined benefit pension and postretirement benefit plans
|
(2,485
|
)
|
918
|
|
(1,567
|
)
|
|||
Other comprehensive loss, net of tax
|
$
|
(34,628
|
)
|
$
|
12,783
|
|
$
|
(21,845
|
)
|
|
Actual
|
|
Capital Requirements
|
||||||||||||||
|
|
Minimum
|
|
Well Capitalized
|
|||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
At December 31, 2017
|
|
|
|
|
|
|
|
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
2,093,116
|
|
11.14
|
%
|
|
$
|
845,389
|
|
4.5
|
%
|
|
$
|
1,221,118
|
|
6.5
|
%
|
Total risk-based capital
|
2,517,848
|
|
13.40
|
|
|
1,502,914
|
|
8.0
|
|
|
1,878,643
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
2,238,172
|
|
11.91
|
|
|
1,127,186
|
|
6.0
|
|
|
1,502,914
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
2,238,172
|
|
8.63
|
|
|
1,036,817
|
|
4.0
|
|
|
1,296,021
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
2,114,224
|
|
11.26
|
%
|
|
$
|
844,693
|
|
4.5
|
%
|
|
$
|
1,220,113
|
|
6.5
|
%
|
Total risk-based capital
|
2,316,580
|
|
12.34
|
|
|
1,501,677
|
|
8.0
|
|
|
1,877,097
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
2,114,224
|
|
11.26
|
|
|
1,126,258
|
|
6.0
|
|
|
1,501,677
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
2,114,224
|
|
8.14
|
|
|
1,038,442
|
|
4.0
|
|
|
1,298,052
|
|
5.0
|
|
|||
At December 31, 2016
|
|
|
|
|
|
|
|
|
|||||||||
Webster Financial Corporation
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,932,171
|
|
10.52
|
%
|
|
$
|
826,504
|
|
4.5
|
%
|
|
$
|
1,193,840
|
|
6.5
|
%
|
Total risk-based capital
|
2,328,808
|
|
12.68
|
|
|
1,469,341
|
|
8.0
|
|
|
1,836,677
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
2,054,881
|
|
11.19
|
|
|
1,102,006
|
|
6.0
|
|
|
1,469,341
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
2,054,881
|
|
8.13
|
|
|
1,010,857
|
|
4.0
|
|
|
1,263,571
|
|
5.0
|
|
|||
Webster Bank
|
|
|
|
|
|
|
|
|
|||||||||
CET1 risk-based capital
|
$
|
1,945,332
|
|
10.61
|
%
|
|
$
|
825,228
|
|
4.5
|
%
|
|
$
|
1,191,995
|
|
6.5
|
%
|
Total risk-based capital
|
2,141,939
|
|
11.68
|
|
|
1,467,071
|
|
8.0
|
|
|
1,833,839
|
|
10.0
|
|
|||
Tier 1 risk-based capital
|
1,945,332
|
|
10.61
|
|
|
1,100,304
|
|
6.0
|
|
|
1,467,071
|
|
8.0
|
|
|||
Tier 1 leverage capital
|
1,945,332
|
|
7.70
|
|
|
1,010,005
|
|
4.0
|
|
|
1,262,507
|
|
5.0
|
|
|
Years ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2017
|
|
2016
|
|
2015
|
||||||
Earnings for basic and diluted earnings per common share:
|
|
|
|
|
|
||||||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Less: Preferred stock dividends
|
8,184
|
|
|
8,096
|
|
|
8,711
|
|
|||
Net income available to common shareholders
|
247,255
|
|
|
199,031
|
|
|
196,018
|
|
|||
Less: Earnings applicable to participating securities
|
424
|
|
|
608
|
|
|
657
|
|
|||
Earnings applicable to common shareholders
|
$
|
246,831
|
|
|
$
|
198,423
|
|
|
$
|
195,361
|
|
Shares:
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding - basic
|
91,965
|
|
|
91,367
|
|
|
90,968
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock
|
385
|
|
|
461
|
|
|
524
|
|
|||
Warrants
|
6
|
|
|
28
|
|
|
41
|
|
|||
Weighted-average common shares outstanding - diluted
|
92,356
|
|
|
91,856
|
|
|
91,533
|
|
|||
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.68
|
|
|
$
|
2.17
|
|
|
$
|
2.15
|
|
Diluted
|
2.67
|
|
|
2.16
|
|
|
2.13
|
|
|
Years ended December 31,
|
|||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|||
Stock options (shares with exercise price greater than market price)
|
—
|
|
|
41
|
|
|
213
|
|
Restricted stock (due to performance conditions on non-participating shares)
|
58
|
|
|
125
|
|
|
92
|
|
|
At December 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 master netting agreements (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
$
|
325,000
|
|
$
|
2,770
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
225,000
|
|
$
|
3,270
|
|
|
$
|
100,000
|
|
$
|
792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Positions subject to master netting agreements (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
2,791,760
|
|
5,977
|
|
|
721,048
|
|
1,968
|
|
|
1,943,485
|
|
32,226
|
|
|
1,242,937
|
|
24,388
|
|
||||||||
Mortgage banking derivatives (2)
|
28,497
|
|
421
|
|
|
39,230
|
|
110
|
|
|
103,440
|
|
3,084
|
|
|
59,895
|
|
711
|
|
||||||||
Other
|
7,914
|
|
258
|
|
|
30,328
|
|
419
|
|
|
10,634
|
|
231
|
|
|
14,265
|
|
120
|
|
||||||||
Positions not subject to master netting agreements
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivatives
|
1,366,299
|
|
23,009
|
|
|
2,146,518
|
|
25,631
|
|
|
1,734,679
|
|
38,668
|
|
|
1,451,762
|
|
19,001
|
|
||||||||
RPAs
|
93,713
|
|
80
|
|
|
116,882
|
|
111
|
|
|
86,037
|
|
139
|
|
|
87,273
|
|
166
|
|
||||||||
Other
|
—
|
|
—
|
|
|
2,073
|
|
184
|
|
|
1,438
|
|
19
|
|
|
181
|
|
11
|
|
||||||||
Total not designated as hedging instruments
|
4,288,183
|
|
29,745
|
|
|
3,056,079
|
|
28,423
|
|
|
3,879,713
|
|
74,367
|
|
|
2,856,313
|
|
44,397
|
|
||||||||
Gross derivative instruments, before netting
|
$
|
4,613,183
|
|
32,515
|
|
|
$
|
3,056,079
|
|
28,423
|
|
|
$
|
4,104,713
|
|
77,637
|
|
|
$
|
2,956,313
|
|
45,189
|
|
||||
Less: Legally enforceable master netting agreements
|
|
2,245
|
|
|
|
2,245
|
|
|
|
24,252
|
|
|
|
24,254
|
|
||||||||||||
Less: Cash collateral posted
|
|
6,704
|
|
|
|
—
|
|
|
|
11,475
|
|
|
|
600
|
|
||||||||||||
Total derivative instruments, after netting
|
|
$
|
23,566
|
|
|
|
$
|
26,178
|
|
|
|
$
|
41,910
|
|
|
|
$
|
20,335
|
|
(1)
|
One of Webster's counterparty relationships was impacted by a Chicago Mercantile Exchange rulebook amendment, resulting in the presentation of that relationship on a settlement basis, as a single unit of account.
|
(2)
|
Notional amounts include mandatory forward commitments of $39.0 million, while notional amounts do not include approved floating rate commitments of $11.3 million, at December 31, 2017.
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest rate derivatives
|
$
|
2,702
|
|
|
$
|
8,668
|
|
|
$
|
4,361
|
|
RPA
|
242
|
|
|
(361
|
)
|
|
(33
|
)
|
|||
Mortgage banking derivatives
|
(2,062
|
)
|
|
1,553
|
|
|
801
|
|
|||
Other
|
(768
|
)
|
|
(67
|
)
|
|
(63
|
)
|
|||
Total impact on other non-interest income
|
$
|
114
|
|
|
$
|
9,793
|
|
|
$
|
5,066
|
|
|
At December 31, 2017
|
|
At December 31, 2016
|
||||||||||||||||||||||
(In thousands)
|
Gross
Amount
|
Relationship Offset
|
Cash Collateral Offset
|
Net
Amount
|
|
Gross
Amount
|
Relationship Offset
|
Cash Collateral Offset
|
Net
Amount
|
||||||||||||||||
Derivative instrument assets
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedged Accounting
|
$
|
2,770
|
|
$
|
91
|
|
$
|
2,679
|
|
$
|
—
|
|
|
$
|
3,270
|
|
$
|
2,335
|
|
$
|
935
|
|
$
|
—
|
|
Non-Hedged Accounting
|
6,222
|
|
2,154
|
|
4,025
|
|
43
|
|
|
32,457
|
|
21,917
|
|
10,540
|
|
—
|
|
||||||||
Total
|
$
|
8,992
|
|
$
|
2,245
|
|
$
|
6,704
|
|
$
|
43
|
|
|
$
|
35,727
|
|
$
|
24,252
|
|
$
|
11,475
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative instrument liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedged Accounting
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
792
|
|
$
|
792
|
|
$
|
—
|
|
$
|
—
|
|
Non-Hedged Accounting
|
2,387
|
|
2,245
|
|
—
|
|
142
|
|
|
24,508
|
|
23,462
|
|
600
|
|
446
|
|
||||||||
Total
|
$
|
2,387
|
|
$
|
2,245
|
|
$
|
—
|
|
$
|
142
|
|
|
$
|
25,300
|
|
$
|
24,254
|
|
$
|
600
|
|
$
|
446
|
|
•
|
Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2: Fair value is calculated using significant inputs other than quoted market prices that are directly or indirectly observable for the asset or liability. The valuation may rely on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit ratings, etc.), or inputs that are derived principally or corroborated by market data, by correlation, or other means.
|
•
|
Level 3: Inputs for determining the fair value of the respective assets or liabilities are not observable. Level 3 valuations are reliant upon pricing models and techniques that require significant management judgment or estimation.
|
|
At December 31, 2017
|
|||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Financial assets held at fair value:
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
$
|
1,247
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,247
|
|
Agency CMO
|
—
|
|
306,333
|
|
—
|
|
306,333
|
|
||||
Agency MBS
|
—
|
|
1,107,841
|
|
—
|
|
1,107,841
|
|
||||
Agency CMBS
|
—
|
|
588,026
|
|
—
|
|
588,026
|
|
||||
CMBS
|
—
|
|
361,067
|
|
—
|
|
361,067
|
|
||||
CLO
|
—
|
|
209,851
|
|
—
|
|
209,851
|
|
||||
Single issuer-trust preferred
|
—
|
|
7,050
|
|
—
|
|
7,050
|
|
||||
Corporate debt
|
—
|
|
56,622
|
|
—
|
|
56,622
|
|
||||
Total available-for-sale investment securities
|
1,247
|
|
2,636,790
|
|
—
|
|
2,638,037
|
|
||||
Gross derivative instruments, before netting (1)
|
258
|
|
32,257
|
|
—
|
|
32,515
|
|
||||
Investments held in Rabbi Trust
|
4,801
|
|
—
|
|
—
|
|
4,801
|
|
||||
Alternative investments
|
—
|
|
—
|
|
7,460
|
|
7,460
|
|
||||
Originated loans held for sale
|
—
|
|
20,888
|
|
—
|
|
20,888
|
|
||||
Total financial assets held at fair value
|
$
|
6,306
|
|
$
|
2,689,935
|
|
$
|
7,460
|
|
$
|
2,703,701
|
|
Financial liabilities held at fair value:
|
|
|
|
|
||||||||
Gross derivative instruments, before netting (1)
|
$
|
587
|
|
$
|
27,836
|
|
$
|
—
|
|
$
|
28,423
|
|
|
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
|
—
|
|
28,633
|
|
—
|
|
28,633
|
|
||||
Corporate debt
|
—
|
|
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 15: Derivative Financial Instruments.
|
(In thousands)
|
Alternative Investments
|
||
Balance at January 1, 2017
|
$
|
5,502
|
|
Unrealized gain included in net income
|
613
|
|
|
Purchases/capital funding
|
1,399
|
|
|
Payments
|
(54
|
)
|
|
Balance at December 31, 2017
|
$
|
7,460
|
|
|
At December 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
(In thousands)
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value |
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity investment securities
|
$
|
4,487,392
|
|
|
$
|
4,456,350
|
|
|
$
|
4,160,658
|
|
|
$
|
4,125,125
|
|
Transferred loans held for sale
|
—
|
|
|
—
|
|
|
7,317
|
|
|
7,444
|
|
||||
Level 3
|
|
|
|
|
|
|
|
||||||||
Loans and leases, net
|
17,323,864
|
|
|
17,211,619
|
|
|
16,832,268
|
|
|
16,678,106
|
|
||||
Mortgage servicing assets
|
25,139
|
|
|
45,309
|
|
|
24,466
|
|
|
52,075
|
|
||||
Alternative investments
|
10,562
|
|
|
12,940
|
|
|
11,034
|
|
|
13,189
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Level 2
|
|
|
|
|
|
|
|
||||||||
Deposit liabilities, other than time deposits
|
$
|
18,525,321
|
|
|
$
|
18,525,321
|
|
|
$
|
17,279,049
|
|
|
$
|
17,279,049
|
|
Time deposits
|
2,468,408
|
|
|
2,455,245
|
|
|
2,024,808
|
|
|
2,024,395
|
|
||||
Securities sold under agreements to repurchase and other borrowings
|
643,269
|
|
|
644,084
|
|
|
949,526
|
|
|
955,660
|
|
||||
FHLB advances (1)
|
1,677,105
|
|
|
1,678,070
|
|
|
2,842,908
|
|
|
2,825,101
|
|
||||
Long-term debt (1)
|
225,767
|
|
|
234,359
|
|
|
225,514
|
|
|
225,514
|
|
(1)
|
The following adjustments to the carrying amount are not included for determination of fair value, see Note 10: Borrowings:
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
211,508
|
|
$
|
203,645
|
|
|
$
|
11,806
|
|
$
|
10,518
|
|
|
$
|
3,852
|
|
$
|
3,853
|
|
Service cost
|
50
|
|
45
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Interest cost
|
7,314
|
|
8,441
|
|
|
375
|
|
389
|
|
|
92
|
|
125
|
|
||||||
Actuarial loss (gain)
|
18,396
|
|
6,108
|
|
|
1,037
|
|
1,023
|
|
|
(631
|
)
|
59
|
|
||||||
Benefits paid and administrative expenses
|
(7,950
|
)
|
(6,731
|
)
|
|
(122
|
)
|
(124
|
)
|
|
(219
|
)
|
(185
|
)
|
||||||
Ending balance (1)
|
229,318
|
|
211,508
|
|
|
13,096
|
|
11,806
|
|
|
3,094
|
|
3,852
|
|
||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
192,922
|
|
161,369
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Actual return on plan assets
|
31,253
|
|
18,284
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Employer contributions
|
—
|
|
20,000
|
|
|
122
|
|
124
|
|
|
219
|
|
185
|
|
||||||
Benefits paid and administrative expenses
|
(7,950
|
)
|
(6,731
|
)
|
|
(122
|
)
|
(124
|
)
|
|
(219
|
)
|
(185
|
)
|
||||||
Ending balance
|
216,225
|
|
192,922
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Funded status of the plan at year end (2)
|
$
|
(13,093
|
)
|
$
|
(18,586
|
)
|
|
$
|
(13,096
|
)
|
$
|
(11,806
|
)
|
|
$
|
(3,094
|
)
|
$
|
(3,852
|
)
|
(1)
|
The accumulated benefit obligation for the defined benefit pension and other postretirement benefits was $245.5 million and $227.2 million at December 31, 2017 and 2016, respectively.
|
(2)
|
The underfunded status amounts are included in accrued expense and other liabilities in the accompanying Consolidated Balance Sheets.
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||||
Net actuarial loss (gain)
|
$
|
59,433
|
|
$
|
65,857
|
|
|
$
|
3,299
|
|
$
|
3,009
|
|
|
$
|
(16
|
)
|
$
|
616
|
|
Prior service cost
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total pre-tax amounts included in AOCL
|
59,433
|
|
65,857
|
|
|
3,299
|
|
3,009
|
|
|
(16
|
)
|
616
|
|
||||||
Deferred tax benefit
|
13,407
|
|
23,727
|
|
|
744
|
|
1,084
|
|
|
(3
|
)
|
222
|
|
||||||
Amounts included in accumulated AOCL, net of tax
|
$
|
46,026
|
|
$
|
42,130
|
|
|
$
|
2,555
|
|
$
|
1,925
|
|
|
$
|
(13
|
)
|
$
|
394
|
|
(In thousands)
|
Pension Plan
|
SERP
|
Other
Benefits
|
||||||
2018
|
$
|
9,009
|
|
$
|
11,371
|
|
$
|
354
|
|
2019
|
8,630
|
|
130
|
|
342
|
|
|||
2020
|
9,065
|
|
132
|
|
328
|
|
|||
2021
|
9,792
|
|
132
|
|
311
|
|
|||
2022
|
10,425
|
|
131
|
|
292
|
|
|||
2023-2027
|
55,206
|
|
651
|
|
1,125
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
||||||||||||||||||||||||
(In thousands)
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
||||||||||||||||||
Service cost
|
$
|
50
|
|
$
|
45
|
|
$
|
45
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
7,314
|
|
8,441
|
|
8,008
|
|
|
375
|
|
389
|
|
345
|
|
|
92
|
|
125
|
|
123
|
|
|||||||||
Expected return on plan assets
|
(12,296
|
)
|
(11,461
|
)
|
(11,873
|
)
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
14
|
|
73
|
|
|||||||||
Recognized net loss
|
5,864
|
|
6,665
|
|
5,724
|
|
|
748
|
|
426
|
|
390
|
|
|
—
|
|
35
|
|
47
|
|
|||||||||
Net periodic benefit cost (benefit)
|
$
|
932
|
|
$
|
3,690
|
|
$
|
1,904
|
|
|
$
|
1,123
|
|
$
|
815
|
|
$
|
735
|
|
|
$
|
92
|
|
$
|
174
|
|
$
|
243
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
||||||||||||||||||||||||
(In thousands)
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
||||||||||||||||||
Net (gain) loss
|
$
|
(561
|
)
|
$
|
(715
|
)
|
$
|
8,525
|
|
|
$
|
1,037
|
|
$
|
1,023
|
|
$
|
372
|
|
|
$
|
(631
|
)
|
$
|
60
|
|
$
|
(178
|
)
|
Amounts reclassified from AOCL
|
(5,864
|
)
|
(6,665
|
)
|
(5,724
|
)
|
|
(748
|
)
|
(426
|
)
|
(390
|
)
|
|
—
|
|
(35
|
)
|
(47
|
)
|
|||||||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
(14
|
)
|
(73
|
)
|
|||||||||
Total (gain) loss recognized in OCI
|
$
|
(6,425
|
)
|
$
|
(7,380
|
)
|
$
|
2,801
|
|
|
$
|
289
|
|
$
|
597
|
|
$
|
(18
|
)
|
|
$
|
(631
|
)
|
$
|
11
|
|
$
|
(298
|
)
|
|
At December 31,
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Registered investment companies:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Exchange traded funds
|
$
|
37,848
|
|
$
|
—
|
|
$
|
—
|
|
$
|
37,848
|
|
|
$
|
31,526
|
|
$
|
—
|
|
$
|
—
|
|
$
|
31,526
|
|
Cash and cash equivalents
|
1,115
|
|
—
|
|
—
|
|
1,115
|
|
|
701
|
|
—
|
|
—
|
|
701
|
|
||||||||
Common collective trust funds:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed Income funds
|
—
|
|
107,430
|
|
—
|
|
107,430
|
|
|
—
|
|
96,429
|
|
—
|
|
96,429
|
|
||||||||
Equity Funds
|
—
|
|
69,832
|
|
—
|
|
69,832
|
|
|
—
|
|
63,285
|
|
—
|
|
63,285
|
|
||||||||
Insurance company investment contract
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
793
|
|
793
|
|
||||||||
Total
|
$
|
38,963
|
|
$
|
177,262
|
|
$
|
—
|
|
$
|
216,225
|
|
|
$
|
32,227
|
|
$
|
159,714
|
|
$
|
793
|
|
$
|
192,734
|
|
|
Years ended December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
793
|
|
|
$
|
934
|
|
Employer contributions
|
78
|
|
|
—
|
|
||
Unrealized gains relating to instruments still held at the reporting date
|
—
|
|
|
(10
|
)
|
||
Benefit payments, administrative expenses
|
(166
|
)
|
|
(131
|
)
|
||
Asset sales
|
(705
|
)
|
|
—
|
|
||
Ending balance
|
$
|
—
|
|
|
$
|
793
|
|
|
Target Allocation
|
|
Percentage of Pension Plan assets
|
|||||
|
2018
|
|
2017
|
|
2016
|
|||
Fixed income investments
|
55
|
%
|
|
50
|
%
|
|
51
|
%
|
Equity investments
|
45
|
|
|
50
|
|
|
49
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||
Discount rate
|
3.50
|
%
|
4.01
|
%
|
|
3.30
|
%
|
3.63
|
%
|
|
3.00
|
%
|
3.27
|
%
|
Rate of compensation increase
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
Pension Plan
|
|
SERP
|
|
Other Benefits
|
|||||||||||||||
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
2015
|
|||||||||
Discount rate
|
4.01
|
%
|
4.20
|
%
|
3.85
|
%
|
|
3.63
|
%
|
3.75
|
%
|
3.50
|
%
|
|
3.27
|
%
|
3.35
|
%
|
3.15
|
%
|
Expected long-term return on assets
|
6.50
|
%
|
7.00
|
%
|
7.00
|
%
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Rate of compensation increase
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Assumed healthcare cost trend
|
n/a
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
7.50
|
%
|
8.25
|
%
|
8.00
|
%
|
(Dollars in thousands)
|
|
|
|
|
|
Contributions by Webster Bank for the year ended December 31,
|
|
Funded Status of the Plan at December 31,
|
|||
Plan Name
|
|
Employer Identification Number
|
|
Plan Number
|
|
2017
|
2016
|
2015
|
|
2017
|
2016
|
Pentegra Defined Benefit Plan for Financial Institutions
|
|
13-5645888
|
|
333
|
|
$614
|
$690
|
$340
|
|
At least 80 percent
|
At least 80 percent
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Stock options
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
379
|
|
Restricted stock
|
12,276
|
|
|
11,395
|
|
|
10,556
|
|
|||
Total stock compensation expense
|
$
|
12,276
|
|
|
$
|
11,438
|
|
|
$
|
10,935
|
|
|
|
|
|
|
|
||||||
Income tax benefit (1)
|
$
|
11,849
|
|
|
$
|
4,132
|
|
|
$
|
3,903
|
|
(1)
|
The income tax benefit in 2017 includes $7.1 million of excess tax benefits recognized under ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share Based Payment Accounting, which the Company adopted effective January 1, 2017.
|
|
Unvested Restricted Stock Awards
|
|
Stock Options Outstanding
|
||||||||||||||||||||
|
Time-Based
|
|
Performance-Based
|
|
|||||||||||||||||||
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Units
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|
Number of
Shares
|
Weighted-Average
Exercise Price
|
||||||||||||
Balance at January 1, 2017
|
253,361
|
|
$
|
32.24
|
|
|
2,158
|
|
$
|
32.89
|
|
|
116,184
|
|
$
|
33.62
|
|
|
1,072,974
|
|
$
|
21.24
|
|
Granted
|
168,369
|
|
54.76
|
|
|
8,129
|
|
56.07
|
|
|
89,581
|
|
56.18
|
|
|
—
|
|
—
|
|
||||
Exercised options
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
399,935
|
|
25.42
|
|
||||
Vested restricted stock awards (1)
|
194,986
|
|
37.16
|
|
|
10,287
|
|
51.21
|
|
|
117,695
|
|
42.09
|
|
|
—
|
|
—
|
|
||||
Forfeited
|
18,944
|
|
35.58
|
|
|
—
|
|
—
|
|
|
9,154
|
|
43.10
|
|
|
—
|
|
—
|
|
||||
Balance at December 31, 2017
|
207,800
|
|
$
|
43.16
|
|
|
—
|
|
$
|
—
|
|
|
78,916
|
|
$
|
45.35
|
|
|
673,039
|
|
$
|
18.75
|
|
(1)
|
Vested for purposes of recording compensation expense.
|
Range of Exercise Prices
|
Number of Shares
|
Weighted-Average Remaining Contractual Life (years)
|
Weighted-Average Exercise Price
|
|||
$ 5.14 - 12.85
|
222,947
|
|
1.2
|
$
|
9.43
|
|
$ 22.04 - 25.15
|
450,092
|
|
4.5
|
23.37
|
|
|
|
673,039
|
|
3.4
|
$
|
18.75
|
|
•
|
To further strengthen Webster's ability to deliver the totality of its products and services to the owners and executives of commercial clients and other high net worth individuals, an organizational change was made during the second quarter of 2017. Effective April 1, 2017, the head of Private Banking reports directly to the head of Commercial Banking. The current organizational structure reflects how executive management responsibilities are assigned and reviewed. As a result of this change, the Private Banking and Commercial Banking operating segments are aggregated into one reportable segment, Commercial Banking.
|
•
|
In late 2007 Webster discontinued its indirect residential construction lending and its indirect home equity lending outside of its primary New England market area referred to as National Wholesale Lending. Webster placed these two portfolios into a liquidating loan portfolio included within the Corporate and Reconciling category. The balance of the home equity liquidating loan portfolio was $65.0 million at December 31, 2016. As the remainder of this portfolio has been performing in the same manner as the continuing home equity portfolio, management has decided to combine the liquidating loan portfolio with the continuing home equity loan portfolio. The combined portfolio is included in the Community Banking reportable segment.
|
|
Year ended December 31, 2017
|
||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||
Net interest income (loss)
|
$
|
322,393
|
|
$
|
383,700
|
|
$
|
104,704
|
|
$(14,510)
|
$
|
796,287
|
|
Provision (benefit) for loan and lease losses
|
38,518
|
|
2,382
|
|
—
|
|
—
|
40,900
|
|
||||
Net interest income (loss) after provision for loan and lease losses
|
283,875
|
|
381,318
|
|
104,704
|
|
(14,510)
|
755,387
|
|
||||
Non-interest income
|
55,194
|
|
107,368
|
|
77,378
|
|
19,538
|
259,478
|
|
||||
Non-interest expense
|
154,037
|
|
373,081
|
|
113,143
|
|
20,814
|
661,075
|
|
||||
Income (loss) before income tax expense
|
185,032
|
|
115,605
|
|
68,939
|
|
(15,786)
|
353,790
|
|
||||
Income tax expense (benefit)
|
51,438
|
|
32,137
|
|
19,165
|
|
(4,389)
|
98,351
|
|
||||
Net income (loss)
|
$
|
133,594
|
|
$
|
83,468
|
|
$
|
49,774
|
|
$(11,397)
|
$
|
255,439
|
|
|
Year ended December 31, 2016
|
||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||
Net interest income (loss)
|
$
|
287,596
|
|
$
|
367,137
|
|
$
|
81,451
|
|
$
|
(17,671
|
)
|
$
|
718,513
|
|
Provision (benefit) for loan and lease losses
|
37,455
|
|
18,895
|
|
—
|
|
—
|
|
56,350
|
|
|||||
Net interest income (loss) after provision for loan and lease losses
|
250,141
|
|
348,242
|
|
81,451
|
|
(17,671
|
)
|
662,163
|
|
|||||
Non-interest income
|
57,253
|
|
110,197
|
|
71,710
|
|
25,318
|
|
264,478
|
|
|||||
Non-interest expense
|
138,379
|
|
369,132
|
|
97,152
|
|
18,528
|
|
623,191
|
|
|||||
Income (loss) before income tax expense
|
169,015
|
|
89,307
|
|
56,009
|
|
(10,881
|
)
|
303,450
|
|
|||||
Income tax expense (benefit)
|
53,649
|
|
28,348
|
|
17,779
|
|
(3,453
|
)
|
96,323
|
|
|||||
Net income (loss)
|
$
|
115,366
|
|
$
|
60,959
|
|
$
|
38,230
|
|
$
|
(7,428
|
)
|
$
|
207,127
|
|
|
Year ended December 31, 2015
|
||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||
Net interest income (loss)
|
$
|
266,085
|
|
$
|
356,881
|
|
$
|
73,433
|
|
$
|
(31,774
|
)
|
$
|
664,625
|
|
Provision (benefit) for loan and lease losses
|
30,546
|
|
18,754
|
|
—
|
|
—
|
|
49,300
|
|
|||||
Net interest income (loss) after provision for loan and lease losses
|
235,539
|
|
338,127
|
|
73,433
|
|
(31,774
|
)
|
615,325
|
|
|||||
Non-interest income
|
46,967
|
|
108,647
|
|
62,475
|
|
19,688
|
|
237,777
|
|
|||||
Non-interest expense
|
129,499
|
|
335,834
|
|
81,449
|
|
8,559
|
|
555,341
|
|
|||||
Income (loss) before income tax expense
|
153,007
|
|
110,940
|
|
54,459
|
|
(20,645
|
)
|
297,761
|
|
|||||
Income tax expense (benefit)
|
47,804
|
|
34,605
|
|
17,016
|
|
(6,393
|
)
|
93,032
|
|
|||||
Net income (loss)
|
$
|
105,203
|
|
$
|
76,335
|
|
$
|
37,443
|
|
$
|
(14,252
|
)
|
$
|
204,729
|
|
|
Total Assets
|
||||||||||||||
(In thousands)
|
Commercial
Banking |
Community Banking
|
HSA Bank
|
Corporate and
Reconciling |
Consolidated
Total |
||||||||||
At December 31, 2017
|
$
|
9,350,028
|
|
$
|
8,909,671
|
|
$
|
76,308
|
|
$
|
8,151,638
|
|
$
|
26,487,645
|
|
At December 31, 2016
|
9,069,445
|
|
8,721,046
|
|
83,987
|
|
8,198,051
|
|
26,072,529
|
|
|
At December 31, 2017
|
||||||
(In thousands)
|
Rental Payments
|
|
Rental Receipts
|
||||
2018
|
$
|
29,181
|
|
|
$
|
717
|
|
2019
|
28,035
|
|
|
592
|
|
||
2020
|
26,254
|
|
|
488
|
|
||
2021
|
24,552
|
|
|
395
|
|
||
2022
|
20,885
|
|
|
353
|
|
||
Thereafter
|
77,541
|
|
|
1,438
|
|
||
Total future minimum rental payments and receipts
|
$
|
206,448
|
|
|
$
|
3,983
|
|
|
At December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Commitments to extend credit
|
$
|
5,567,687
|
|
|
$
|
5,224,280
|
|
Standby letter of credit
|
195,902
|
|
|
128,985
|
|
||
Commercial letter of credit
|
43,200
|
|
|
46,497
|
|
||
Total credit-related financial instruments with off-balance sheet risk
|
$
|
5,806,789
|
|
|
$
|
5,399,762
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning balance
|
$
|
2,287
|
|
|
$
|
2,119
|
|
|
$
|
5,151
|
|
Provision (benefit)
|
75
|
|
|
168
|
|
|
(3,032
|
)
|
|||
Ending balance
|
$
|
2,362
|
|
|
$
|
2,287
|
|
|
$
|
2,119
|
|
Condensed Balance Sheets
|
|
|
|
||||
|
December 31,
|
||||||
(In thousands)
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
181,085
|
|
|
$
|
152,947
|
|
Intercompany debt securities
|
150,000
|
|
|
150,000
|
|
||
Investment in subsidiaries
|
2,585,955
|
|
|
2,425,398
|
|
||
Alternative investments
|
2,939
|
|
|
4,275
|
|
||
Other assets
|
13,252
|
|
|
24,659
|
|
||
Total assets
|
$
|
2,933,231
|
|
|
$
|
2,757,279
|
|
Liabilities and shareholders’ equity:
|
|
|
|
||||
Senior notes
|
$
|
148,447
|
|
|
$
|
148,194
|
|
Junior subordinated debt
|
77,320
|
|
|
77,320
|
|
||
Accrued interest payable
|
2,616
|
|
|
2,589
|
|
||
Due to subsidiaries
|
575
|
|
|
365
|
|
||
Other liabilities
|
2,315
|
|
|
1,799
|
|
||
Total liabilities
|
231,273
|
|
|
230,267
|
|
||
Shareholders’ equity
|
2,701,958
|
|
|
2,527,012
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,933,231
|
|
|
$
|
2,757,279
|
|
Condensed Statements of Income
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Income:
|
|
|
|
|
|
||||||
Dividend income from bank subsidiary
|
$
|
120,000
|
|
|
$
|
145,000
|
|
|
$
|
110,000
|
|
Interest on securities and deposits
|
4,477
|
|
|
1,911
|
|
|
546
|
|
|||
Loss on sale of investment securities
|
—
|
|
|
(2,410
|
)
|
|
—
|
|
|||
Alternative investments income
|
1,504
|
|
|
176
|
|
|
2,274
|
|
|||
Other non-interest income
|
204
|
|
|
7,485
|
|
|
152
|
|
|||
Total operating income
|
126,185
|
|
|
152,162
|
|
|
112,972
|
|
|||
Operating Expense:
|
|
|
|
|
|
||||||
Interest expense on borrowings
|
10,380
|
|
|
9,981
|
|
|
9,665
|
|
|||
Compensation and benefits
|
12,425
|
|
|
11,461
|
|
|
10,965
|
|
|||
Other non-interest expense
|
10,583
|
|
|
6,278
|
|
|
6,005
|
|
|||
Total operating expense
|
33,388
|
|
|
27,720
|
|
|
26,635
|
|
|||
Income before income tax benefit and equity in undistributed earnings of subsidiaries and associated companies
|
92,797
|
|
|
124,442
|
|
|
86,337
|
|
|||
Income tax benefit
|
3,004
|
|
|
3,086
|
|
|
2,929
|
|
|||
Equity in undistributed earnings of subsidiaries and associated companies
|
159,638
|
|
|
79,599
|
|
|
115,463
|
|
|||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Condensed Statements of Comprehensive Income
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on available for sale securities
|
—
|
|
|
584
|
|
|
(2,109
|
)
|
|||
Net unrealized gains (losses) on derivative instruments
|
1,216
|
|
|
1,223
|
|
|
1,223
|
|
|||
Other comprehensive loss of subsidiaries and associated companies
|
(106
|
)
|
|
(694
|
)
|
|
(20,959
|
)
|
|||
Other comprehensive income (loss), net of tax
|
1,110
|
|
|
1,113
|
|
|
(21,845
|
)
|
|||
Comprehensive income
|
$
|
256,549
|
|
|
$
|
208,240
|
|
|
$
|
182,884
|
|
Condensed Statements of Cash Flows
|
|
|
|
|
|
||||||
|
Years ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
255,439
|
|
|
$
|
207,127
|
|
|
$
|
204,729
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed earnings of subsidiaries and associated companies
|
(159,638
|
)
|
|
(79,599
|
)
|
|
(115,463
|
)
|
|||
Stock-based compensation
|
12,276
|
|
|
11,438
|
|
|
10,935
|
|
|||
Gain on redemption of other assets
|
—
|
|
|
(7,331
|
)
|
|
—
|
|
|||
Other, net
|
7,880
|
|
|
(3,736
|
)
|
|
9,066
|
|
|||
Net cash provided by operating activities
|
115,957
|
|
|
127,899
|
|
|
109,267
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Proceeds from sale of available for sale securities
|
—
|
|
|
1,089
|
|
|
—
|
|
|||
Purchases of intercompany debt securities
|
—
|
|
|
(150,000
|
)
|
|
—
|
|
|||
Proceeds from the sale of other assets
|
7,581
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used for) investing activities
|
7,581
|
|
|
(148,911
|
)
|
|
—
|
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Preferred stock issued
|
145,056
|
|
|
—
|
|
|
—
|
|
|||
Preferred stock redeemed
|
(122,710
|
)
|
|
—
|
|
|
—
|
|
|||
Cash dividends paid to common shareholders
|
(94,630
|
)
|
|
(89,522
|
)
|
|
(80,964
|
)
|
|||
Cash dividends paid to preferred shareholders
|
(8,096
|
)
|
|
(8,096
|
)
|
|
(8,711
|
)
|
|||
Exercise of stock options
|
8,259
|
|
|
11,762
|
|
|
3,060
|
|
|||
Excess tax benefits from stock-based compensation
|
—
|
|
|
3,204
|
|
|
2,338
|
|
|||
Common stock repurchased/shares acquired related to employee share-based plans
|
(23,279
|
)
|
|
(22,870
|
)
|
|
(17,815
|
)
|
|||
Common stock warrants repurchased
|
—
|
|
|
(163
|
)
|
|
(23
|
)
|
|||
Net cash used for financing activities
|
(95,400
|
)
|
|
(105,685
|
)
|
|
(102,115
|
)
|
|||
Increase (decrease) in cash and due from banks
|
28,138
|
|
|
(126,697
|
)
|
|
7,152
|
|
|||
Cash and due from banks at beginning of year
|
152,947
|
|
|
279,644
|
|
|
272,492
|
|
|||
Cash and due from banks at end of year
|
$
|
181,085
|
|
|
$
|
152,947
|
|
|
$
|
279,644
|
|
|
2017
|
||||||||||||||
(In thousands, except per share data)
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Interest income
|
$
|
219,680
|
|
|
$
|
226,789
|
|
|
$
|
231,021
|
|
|
$
|
236,115
|
|
Interest expense
|
27,016
|
|
|
29,002
|
|
|
30,117
|
|
|
31,183
|
|
||||
Net interest income
|
192,664
|
|
|
197,787
|
|
|
200,904
|
|
|
204,932
|
|
||||
Provision for loan and lease losses
|
10,500
|
|
|
7,250
|
|
|
10,150
|
|
|
13,000
|
|
||||
Non-interest income
|
63,042
|
|
|
64,551
|
|
|
65,846
|
|
|
66,039
|
|
||||
Non-interest expense
|
163,784
|
|
|
164,419
|
|
|
161,823
|
|
|
171,049
|
|
||||
Income before income tax expense
|
81,422
|
|
|
90,669
|
|
|
94,777
|
|
|
86,922
|
|
||||
Income tax expense
|
21,951
|
|
|
29,090
|
|
|
30,281
|
|
|
17,029
|
|
||||
Net income
|
$
|
59,471
|
|
|
$
|
61,579
|
|
|
$
|
64,496
|
|
|
$
|
69,893
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings applicable to common shareholders
|
$
|
57,342
|
|
|
$
|
59,485
|
|
|
$
|
62,426
|
|
|
$
|
67,710
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.62
|
|
|
$
|
0.65
|
|
|
$
|
0.68
|
|
|
$
|
0.74
|
|
Diluted
|
0.62
|
|
|
0.64
|
|
|
0.67
|
|
|
0.73
|
|
|
2016
|
||||||||||||||
(In thousands, except per share data)
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Interest income
|
$
|
202,335
|
|
|
$
|
202,431
|
|
|
$
|
205,715
|
|
|
$
|
211,432
|
|
Interest expense
|
26,183
|
|
|
25,526
|
|
|
25,518
|
|
|
26,173
|
|
||||
Net interest income
|
176,152
|
|
|
176,905
|
|
|
180,197
|
|
|
185,259
|
|
||||
Provision for loan and lease losses
|
15,600
|
|
|
14,000
|
|
|
14,250
|
|
|
12,500
|
|
||||
Non-interest income
|
62,374
|
|
|
65,075
|
|
|
66,412
|
|
|
70,617
|
|
||||
Non-interest expense
|
152,445
|
|
|
152,778
|
|
|
156,097
|
|
|
161,871
|
|
||||
Income before income tax expense
|
70,481
|
|
|
75,202
|
|
|
76,262
|
|
|
81,505
|
|
||||
Income tax expense
|
23,434
|
|
|
24,599
|
|
|
24,445
|
|
|
23,845
|
|
||||
Net income
|
$
|
47,047
|
|
|
$
|
50,603
|
|
|
$
|
51,817
|
|
|
$
|
57,660
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings applicable to common shareholders
|
$
|
44,921
|
|
|
$
|
48,398
|
|
|
$
|
49,634
|
|
|
$
|
55,501
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
0.54
|
|
|
$
|
0.61
|
|
Diluted
|
0.49
|
|
|
0.53
|
|
|
0.54
|
|
|
0.60
|
|
Name
|
Age at December 31, 2017
|
Positions Held
|
John R. Ciulla
|
52
|
President, Chief Executive Officer and Director
|
Glenn I. MacInnes
|
56
|
Executive Vice President and Chief Financial Officer
|
Daniel H. Bley
|
49
|
Executive Vice President and Chief Risk Officer
|
Colin D. Eccles
|
59
|
Executive Vice President and Chief Information Officer
|
Bernard M. Garrigues
|
59
|
Executive Vice President and Chief Human Resources Officer
|
Nitin J. Mhatre
|
47
|
Executive Vice President, Community Banking
|
Dawn C. Morris
|
50
|
Executive Vice President and Chief Marketing Officer
|
Christopher J. Motl
|
47
|
Executive Vice President, Commercial Banking
|
Brian R. Runkle
|
49
|
Executive Vice President, Bank Operations
|
Charles L. Wilkins
|
56
|
Executive Vice President, HSA Bank
|
Harriet Munrett Wolfe
|
64
|
Executive Vice President, General Counsel and Secretary
|
Albert J. Wang
|
42
|
Chief Accounting Officer
|
Plan Category
|
Number of
Shares to be Issued Upon
Exercise of
Outstanding
Awards
|
|
Weighted-
Average
Exercise
Price of
Outstanding
Awards
|
|
Number of
Shares Available
for Future
Grants
|
||||
Plans approved by shareholders
|
673,039
|
|
|
$
|
18.75
|
|
|
2,626,866
|
|
Plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
673,039
|
|
|
$
|
18.75
|
|
|
2,626,866
|
|
(a)
|
The following documents are filed as part of the Annual Report on Form 10-K:
|
|
|
(1)
|
Consolidated Financial Statements of Registrant and its subsidiaries are included within Item 8 of Part II of this report.
|
|
(2)
|
Consolidated Financial Statement schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission have been omitted because they are not applicable or the required information is included in the Consolidated Financial Statements or Notes thereto included within Item 8 of Part II of this report.
|
|
(3)
|
The exhibits to this Annual Report on Form 10-K are set forth on the Exhibit Index immediately preceding such exhibits and is incorporated herein by reference.
|
(b)
|
Exhibits to this Form 10-K are attached or incorporated herein by reference as stated above.
|
|
(c)
|
Not applicable
|
|
|
WEBSTER FINANCIAL CORPORATION
|
|
|
|
|
By
|
/s/ John R. Ciulla
|
|
|
John R. Ciulla
|
|
|
President and Chief Executive Officer
|
Signature:
|
|
Title:
|
|
|
|
/s/ John R. Ciulla
|
|
President and Chief Executive Officer, and Director
|
John R. Ciulla
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Glenn I. MacInnes
|
|
Executive Vice President and Chief Financial Officer
|
Glenn I. MacInnes
|
|
(Principal Financial Officer)
|
|
|
|
/s/ Albert J. Wang
|
|
Senior Vice President and Chief Accounting Officer
|
Albert J. Wang
|
|
(Principal Accounting Officer)
|
|
|
|
/s/ James C. Smith
|
|
Chairman of the Board of Directors
|
James C. Smith
|
|
|
|
|
|
/s/ John J. Crawford
|
|
Lead Director
|
John J. Crawford
|
|
|
|
|
|
/s/ William L. Atwell
|
|
Director
|
William L. Atwell
|
|
|
|
|
|
/s/ Joel S. Becker
|
|
Director
|
Joel S. Becker
|
|
|
|
|
|
/s/ Elizabeth E. Flynn
|
|
Director
|
Elizabeth E. Flynn
|
|
|
|
|
|
/s/ Laurence C. Morse
|
|
Director
|
Laurence C. Morse
|
|
|
|
|
|
/s/ Karen R. Osar
|
|
Director
|
Karen R. Osar
|
|
|
|
|
|
/s/ Mark Pettie
|
|
Director
|
Mark Pettie
|
|
|
|
|
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/s/ Charles W. Shivery
|
|
Director
|
Charles W. Shivery
|
|
|
|
|
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/s/ Lauren C. States
|
|
Director
|
Lauren C. States
|
|
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
3
|
|
Certificate of Incorporation and Bylaws.
|
|
|
|
|
|
|
|
|
3.1
|
|
|
|
|
10-Q
|
|
3.1
|
|
8/9/2016
|
|
3.2
|
|
|
|
|
8-K
|
|
3.1
|
|
6/11/2008
|
|
3.3
|
|
|
|
|
8-K
|
|
3.1
|
|
11/24/2008
|
|
3.4
|
|
|
|
|
8-K
|
|
3.1
|
|
7/31/2009
|
|
3.5
|
|
|
|
|
8-K
|
|
3.2
|
|
7/31/2009
|
|
3.6
|
|
|
|
|
8-A12B
|
|
3.3
|
|
12/4/2012
|
|
3.7
|
|
|
|
|
8-A12B
|
|
3.3
|
|
12/12/2017
|
|
3.8
|
|
|
|
|
8-K
|
|
3.1
|
|
6/12/2014
|
|
4
|
|
Instruments Defining the Rights of Security Holders.
|
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
10-K
|
|
4.1
|
|
3/10/2006
|
|
4.2
|
|
|
|
|
10-K
|
|
10.41
|
|
3/27/1997
|
|
4.3
|
|
|
|
|
8-K
|
|
4.2
|
|
11/24/2008
|
|
4.4
|
|
|
|
|
8-K
|
|
4.1
|
|
12/12/2017
|
|
4.5
|
|
|
|
|
8-K
|
|
4.1
|
|
2/11/2014
|
|
4.6
|
|
|
|
|
8-K
|
|
4.2
|
|
2/11/2014
|
|
4.7
|
|
|
|
|
8-A12B
|
|
4.3
|
|
12/12/2017
|
|
10
|
|
Material Contracts
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
10-Q
|
|
10.1
|
|
5/2/2012
|
|
10.2
|
|
|
|
|
8-K
|
|
10.2
|
|
12/21/2007
|
|
10.3
|
|
|
|
|
8-K
|
|
10.1
|
|
12/21/2007
|
|
10.4
|
|
|
|
|
DEF 14A
|
|
A
|
|
3/7/2008
|
|
10.5
|
|
|
|
|
DEF 14A
|
|
A
|
|
3/23/2000
|
|
10.6
|
|
|
X
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
8-K
|
|
10.1
|
|
12/27/2012
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
10.8
|
|
|
|
|
10-K
|
|
10.20
|
|
3/1/2017
|
|
10.9
|
|
|
|
|
10-Q
|
|
10.1
|
|
5/5/2017
|
|
10.10
|
|
|
|
|
10-K
|
|
10.13
|
|
2/28/2013
|
|
10.11
|
|
|
|
|
10-K
|
|
10.22
|
|
2/28/2013
|
|
10.12
|
|
|
|
|
10-K
|
|
10.13
|
|
2/28/2014
|
|
10.13
|
|
|
|
|
10-Q
|
|
10.5
|
|
5/5/2017
|
|
10.14
|
|
|
|
|
10-Q
|
|
10.3
|
|
5/7/2014
|
|
10.15
|
|
|
|
|
10-Q
|
|
10.4
|
|
5/7/2014
|
|
10.16
|
|
|
|
|
10-Q
|
|
10.1
|
|
8/6/2014
|
|
10.17
|
|
|
|
|
10-Q
|
|
10.2
|
|
8/6/2014
|
|
10.18
|
|
|
X
|
|
|
|
|
|
|
|
10.19
|
|
|
|
|
10-Q
|
|
10.2
|
|
5/5/2017
|
|
10.20
|
|
|
|
|
10-Q
|
|
10.3
|
|
5/5/2017
|
|
10.21
|
|
|
|
|
10-Q
|
|
10.4
|
|
5/5/2017
|
|
10.22
|
|
|
|
|
8-K
|
|
10.1
|
|
9/19/2017
|
|
10.23
|
|
|
X
|
|
|
|
|
|
|
|
10.24
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
X
|
|
|
|
|
|
|
|
23
|
|
|
X
|
|
|
|
|
|
|
|
31.1
|
|
|
X
|
|
|
|
|
|
|
|
31.2
|
|
|
X
|
|
|
|
|
|
|
|
32.1 +
|
|
|
X
|
|
|
|
|
|
|
|
32.2 +
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Incorporated by Reference
|
||||
|
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|||
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
X
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
X
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
X
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
X
|
|
|
|
|
|
|
Event
|
Amount
|
||
Annual Board Retainer - Lead Director
|
$
|
66,500
|
|
Annual Board Retainer - Director
|
$
|
47,000
|
|
Annual Audit Committee Retainer - Chair
|
$
|
24,000
|
|
Annual Audit Committee Retainer - Member
|
$
|
9,000
|
|
Annual Compensation Committee Retainer - Chair
|
$
|
18,500
|
|
Annual Compensation Committee Retainer - Member
|
$
|
7,000
|
|
Annual Nominating & Corporate Governance Committee Retainer - Chair
|
$
|
12,000
|
|
Annual Nominating & Corporate Governance Committee Retainer - Member
|
$
|
4,500
|
|
Annual Risk Committee Retainer - Chair
|
$
|
20,000
|
|
Annual Risk Committee Retainer - Member
|
$
|
7,000
|
|
If to the Executive:
|
At the last address on file in the Company’s records
|
If to the Company:
|
Webster Financial Corporation
|
|
/s/ John R. Ciulla
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ James C. Smith
|
|
Name: James C. Smith
|
|
Title: Chairman
|
If to the Executive:
|
At the last address on file in the Company’s record
|
If to the Company:
|
Webster Financial Corporation
|
|
/s/ Brian Runkle
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ John R. Ciulla
|
|
Name: John R. Ciulla
|
|
Title: President & CEO
|
1.
|
Covenants.
|
|
/s/ Brian Runkle
|
|
EXECUTIVE
|
|
WEBSTER FINANCIAL CORPORATION
|
|
By: /s/ John R. Ciulla
|
|
Name: John R. Ciulla
|
|
Title: President & CEO
|
Name of Subsidiary
|
Jurisdiction of Organization
|
Names Under Which Subsidiary Does Business
|
Webster Bank, N.A.
|
United States
|
Same
|
Webster Statutory Trust I
|
Connecticut
|
Same
|
Webster Wealth Advisors, Inc.
|
Connecticut
|
Same
|
Webster Licensing, LLC
|
Delaware
|
Same
|
1.
|
I have reviewed this annual report on Form 10-K 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/ John R. Ciulla
|
John R. Ciulla
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Webster Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Glenn I. MacInnes
|
|
Glenn I. MacInnes
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
(a)
|
the Form 10-K Report of the Company for the year ended December 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
|
(b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ John R. Ciulla
|
John R. Ciulla
|
President and Chief Executive Officer
|
(a)
|
the Form 10-K Report of the Company for the year ended December 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
|
(b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
/s/ Glenn I. MacInnes
|
|
Glenn I. MacInnes
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|