Delaware |
06-1187536
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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
145 Bank Street, Waterbury, Connecticut 06702
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(Address and zip code of principal executive offices) | ||||||||
Registrant’s telephone number, including area code: (203) 578-2202
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Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||||||||||
Emerging growth company | ☐ |
Page No. | ||||||||
Forward-Looking Statements | ||||||||
Key to Acronyms and Terms | ||||||||
Item 1. | Business | |||||||
Item 1A. | Risk Factors | |||||||
Item 1B. | Unresolved Staff Comments | |||||||
Item 2. | Properties | |||||||
Item 3. | Legal Proceedings | |||||||
Item 4. | Mine Safety Disclosures | |||||||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |||||||
Item 6. | Selected Financial Data | |||||||
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |||||||
Item 8. | Financial Statements and Supplementary Data | |||||||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |||||||
Item 9A. | Controls and Procedures | |||||||
Item 9B. | Other Information | |||||||
Item 10. | Directors, Executive Officers and Corporate Governance | |||||||
Item 11. | Executive Compensation | |||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |||||||
Item 14. | Principal Accountant Fees and Services | |||||||
Item 15. | Exhibits and Financial Statement Schedules | |||||||
Item 16. | Form 10-K Summary | |||||||
ACL |
Allowance for credit losses
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Agency CMBS |
Agency commercial mortgage-backed securities
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Agency CMO |
Agency collateralized mortgage obligations
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Agency MBS |
Agency mortgage-backed securities
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ALCO |
Asset/Liability Committee
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ALLL | Allowance for loan and lease losses | ||||
AOCI/AOCL |
Accumulated other comprehensive income (loss), net of tax
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ARRC |
Alternative Reference Rates Committee
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ASC |
Accounting Standards Codification
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ASU or the Update | Accounting Standards Update | ||||
Basel III |
Capital rules under a global regulatory framework developed by the Basel Committee on Banking Supervision
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BHC Act |
Bank Holding Company Act of 1956, as amended
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Capital Rules |
Final rules establishing a new comprehensive capital framework for U.S. banking organizations
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CARES Act | The Coronavirus Aid, Relief, and Economic Security Act | ||||
CECL |
Current expected credit losses
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CET1 capital |
Common Equity Tier 1 Capital, defined by Basel III capital rules
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CFPB |
Consumer Financial Protection Bureau
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CFTC |
Commodity Futures Trading Commission
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CLO |
Collateralized loan obligation securities
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CMBS |
Non-agency commercial mortgage-backed securities
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CME |
Chicago Mercantile Exchange
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CRA |
Community Reinvestment Act of 1977
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CRMC | Credit Risk Management Committee | ||||
CVA | Credit valuation adjustment | ||||
DIF |
Federal Deposit Insurance Fund
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Dodd-Frank |
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
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DTA |
Deferred tax asset
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EGRRCPA |
Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018
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ERMC |
Enterprise Risk Management Committee
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FASB |
Financial Accounting Standards Board
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FDIC |
Federal Deposit Insurance Corporation
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FHFA | Federal Housing Finance Agency | ||||
FHLB |
Federal Home Loan Bank
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FICO |
Fair Isaac Corporation
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FINRA |
Financial Industry Regulatory Authority
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FRA |
Federal Reserve Act
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FRB |
Federal Reserve Bank
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FTP |
Funds Transfer Pricing, a matched maturity funding concept
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GAAP |
U.S. Generally Accepted Accounting Principles
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GDP | Gross domestic product | ||||
Holding Company |
Webster Financial Corporation
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HSA | Health savings account | ||||
HSA Bank |
HSA Bank, a division of Webster Bank, National Association
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LEP |
Loss emergence period
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LGD | Loss given default | ||||
LIBOR | London Interbank Offered Rate | ||||
LPL | LPL Financial Holdings Inc. | ||||
NAV | Net asset value | ||||
NII | Net interest income | ||||
OCC | Office of the Comptroller of the Currency | ||||
OCI / OCL | Other comprehensive income (loss) | ||||
OREO | Other real estate owned | ||||
PD | Probability of default | ||||
PPNR | Pre-tax, pre-provision net revenue | ||||
PPP | Small Business Administration Paycheck Protection Program | ||||
QM | Qualified mortgage | ||||
ROU | Right-of-use | ||||
SALT | State and local tax | ||||
SEC | United States Securities and Exchange Commission | ||||
SERP | Supplemental defined benefit retirement plan | ||||
SIPC | Securities Investor Protection Corporation | ||||
SOFR | Secured overnight financing rate | ||||
Tax Act | Tax Cuts and Jobs Act of 2017 | ||||
TDR |
Troubled debt restructuring, defined in ASC 310-40 “Receivables-Troubled Debt Restructurings by Creditors”
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UTB | Unrecognized tax benefit | ||||
VIE / VOE |
Variable interest entity / voting interest entity, defined in ASC 810-10 “Consolidation-Overall”
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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 |
Adequately Capitalized | Well Capitalized | ||||||||||
CET1 risk-based capital | 4.5% | 6.5% | |||||||||
Total risk-based capital | 8.0 | 10.0 | |||||||||
Tier 1 risk-based capital | 6.0 | 8.0 | |||||||||
Tier 1 leverage capital | 4.0 | 5.0 |
Well | Adequately | Under | Significantly | ||||||||||||||||||||
Capitalized | Capitalized | Capitalized | Under-Capitalized | ||||||||||||||||||||
CET1 risk-based capital | 6.5 | % | 4.5 | % | < 4.5% | < 3.0% | |||||||||||||||||
Total risk-based capital | 10.0 | 8.0 | < 8.0 | < 6.0 | |||||||||||||||||||
Tier 1 risk-based capital | 8.0 | 6.0 | < 6.0 | < 4.0 | |||||||||||||||||||
Tier 1 leverage capital | 5.0 | 4.0 | < 4.0 | < 3.0 |
Location | Leased | Owned | Total | ||||||||
Connecticut | 72 | 38 | 110 | ||||||||
Massachusetts | 19 | 10 | 29 | ||||||||
Rhode Island | 6 | 3 | 9 | ||||||||
New York | 7 | — | 7 | ||||||||
Total banking centers | 104 | 51 | 155 |
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 (2)
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October | 1,285 | $ | 29.88 | — | $ | 123,443,785 | |||||||||||||||||
November | 318 | 35.55 | — | 123,443,785 | |||||||||||||||||||
December | 1,939 | 42.09 | — | 123,443,785 | |||||||||||||||||||
Total | 3,542 | 37.07 | — | 123,443,785 |
Period Ending December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Webster Financial Corporation | $ | 100 | $ | 150 | $ | 158 | $ | 142 | $ | 158 | $ | 131 | ||||||||
S&P 500 Index | $ | 100 | $ | 112 | $ | 136 | $ | 130 | $ | 171 | $ | 203 | ||||||||
KRX Index | $ | 100 | $ | 139 | $ | 142 | $ | 117 | $ | 145 | $ | 132 |
At or for the years ended December 31, | |||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Balance Sheets | |||||||||||||||||
Total assets | $ | 32,590,690 | $ | 30,389,344 | $ | 27,610,315 | $ | 26,487,645 | $ | 26,072,529 | |||||||
Loans and leases, net | 21,281,784 | 19,827,890 | 18,253,136 | 17,323,864 | 16,832,268 | ||||||||||||
Investment securities | 8,894,665 | 8,219,751 | 7,224,150 | 7,125,429 | 7,151,749 | ||||||||||||
Deposits | 27,335,436 | 23,324,746 | 21,858,845 | 20,993,729 | 19,303,857 | ||||||||||||
Borrowings | 1,696,182 | 3,529,271 | 2,634,703 | 2,546,141 | 4,017,948 | ||||||||||||
Preferred stock | 145,037 | 145,037 | 145,037 | 145,056 | 122,710 | ||||||||||||
Total shareholders' equity | 3,234,625 | 3,207,770 | 2,886,515 | 2,701,958 | 2,527,012 | ||||||||||||
Statements Of Income | |||||||||||||||||
Interest income | $ | 1,002,049 | $ | 1,154,583 | $ | 1,055,167 | $ | 913,605 | $ | 821,913 | |||||||
Interest expense | 110,656 | 199,456 | 148,486 | 117,318 | 103,400 | ||||||||||||
Net interest income | 891,393 | 955,127 | 906,681 | 796,287 | 718,513 | ||||||||||||
Provision for credit losses | 137,750 | 37,800 | 42,000 | 40,900 | 56,350 | ||||||||||||
Non-interest income | 285,277 | 285,315 | 282,568 | 259,478 | 264,478 | ||||||||||||
Non-interest expense | 758,946 | 715,950 | 705,616 | 661,075 | 623,191 | ||||||||||||
Income before income tax expense | 279,974 | 486,692 | 441,633 | 353,790 | 303,450 | ||||||||||||
Income tax expense | 59,353 | 103,969 | 81,215 | 98,351 | 96,323 | ||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 | $ | 255,439 | $ | 207,127 | |||||||
Earnings applicable to common shareholders | $ | 211,474 | $ | 372,985 | $ | 351,703 | $ | 246,831 | $ | 198,423 | |||||||
Per Share Data | |||||||||||||||||
Basic earnings per common share | $ | 2.35 | $ | 4.07 | $ | 3.83 | $ | 2.68 | $ | 2.17 | |||||||
Diluted earnings per common share | 2.35 | 4.06 | 3.81 | 2.67 | 2.16 | ||||||||||||
Dividends and dividend equivalents declared per common share | 1.60 | 1.53 | 1.25 | 1.03 | 0.98 | ||||||||||||
Dividends declared per preferred stock share | 1,312.50 | 1,312.50 | 1,323.44 | 1,600.00 | 1,600.00 | ||||||||||||
Book value per common share | 34.25 | 33.28 | 29.72 | 27.76 | 26.17 | ||||||||||||
Tangible book value per common share (non-GAAP)
|
28.04 | 27.19 | 23.60 | 21.59 | 19.94 | ||||||||||||
Key Performance Ratios | |||||||||||||||||
Tangible common equity ratio (non-GAAP)
|
7.90 | % | 8.39 | % | 8.05 | % | 7.67 | % | 7.19 | % | |||||||
Return on average assets | 0.68 | 1.32 | 1.33 | 0.97 | 0.82 | ||||||||||||
Return on average common shareholders’ equity | 6.97 | 12.83 | 13.37 | 9.92 | 8.44 | ||||||||||||
Return on average tangible common shareholders' equity (non-GAAP)
|
8.66 | 16.01 | 17.17 | 13.00 | 11.36 | ||||||||||||
Net interest margin | 3.00 | 3.55 | 3.60 | 3.30 | 3.12 | ||||||||||||
Efficiency ratio (non-GAAP)
|
59.57 | 56.77 | 57.75 | 60.33 | 62.01 | ||||||||||||
Asset Quality Ratios | |||||||||||||||||
Non-performing loans and leases as a percentage of loans and leases | 0.78 | % | 0.75 | % | 0.84 | % | 0.72 | % | 0.79 | % | |||||||
Non-performing assets as a percentage of loans and leases plus OREO | 0.79 | 0.79 | 0.87 | 0.76 | 0.81 | ||||||||||||
Non-performing assets as a percentage of total assets | 0.52 | 0.52 | 0.59 | 0.50 | 0.53 | ||||||||||||
ACL on loans and leases as a percentage of non-performing loans and leases | 213.94 | 138.56 | 137.22 | 158.00 | 144.98 | ||||||||||||
ACL on loans and leases as a percentage of loans and leases | 1.66 | 1.04 | 1.15 | 1.14 | 1.14 | ||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.21 | 0.21 | 0.16 | 0.20 | 0.23 | ||||||||||||
Ratio of ACL on loans and leases to net charge-offs | 7.97 x | 5.09 x | 7.16 x | 5.68 x | 5.25 x |
At December 31, | |||||||||||||||||
(Dollars and shares in thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Tangible book value per common share (non-GAAP): | |||||||||||||||||
Shareholders' equity (GAAP) | $ | 3,234,625 | $ | 3,207,770 | $ | 2,886,515 | $ | 2,701,958 | $ | 2,527,012 | |||||||
Less: Preferred stock (GAAP) | 145,037 | 145,037 | 145,037 | 145,056 | 122,710 | ||||||||||||
Goodwill and other intangible assets (GAAP) | 560,756 | 560,290 | 564,137 | 567,984 | 572,047 | ||||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 2,528,832 | $ | 2,502,443 | $ | 2,177,341 | $ | 1,988,918 | $ | 1,832,255 | |||||||
Common shares outstanding | 90,199 | 92,027 | 92,247 | 92,101 | 91,868 | ||||||||||||
Tangible book value per common share (non-GAAP) | $ | 28.04 | $ | 27.19 | $ | 23.60 | $ | 21.59 | $ | 19.94 | |||||||
Tangible common equity ratio (non-GAAP): | |||||||||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 2,528,832 | $ | 2,502,443 | $ | 2,177,341 | $ | 1,988,918 | $ | 1,832,255 | |||||||
Total assets (GAAP) | $ | 32,590,690 | $ | 30,389,344 | $ | 27,610,315 | $ | 26,487,645 | $ | 26,072,529 | |||||||
Less: Goodwill and other intangible assets (GAAP) | 560,756 | 560,290 | 564,137 | 567,984 | 572,047 | ||||||||||||
Tangible assets (non-GAAP) | $ | 32,029,934 | $ | 29,829,054 | $ | 27,046,178 | $ | 25,919,661 | $ | 25,500,482 | |||||||
Tangible common equity ratio (non-GAAP) | 7.90 | % | 8.39 | % | 8.05 | % | 7.67 | % | 7.19 | % | |||||||
For the years ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Return on average tangible common shareholders' equity (non-GAAP): | |||||||||||||||||
Net Income (GAAP) | $ | 220,621 | $ | 382,723 | $ | 360,418 | $ | 255,439 | $ | 207,127 | |||||||
Less: Preferred stock dividends (GAAP) | 7,875 | 7,875 | 7,853 | 8,184 | 8,096 | ||||||||||||
Add: Intangible assets amortization, tax-affected (GAAP) | 3,286 | 3,039 | 3,039 | 2,640 | 3,674 | ||||||||||||
Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP) | $ | 216,032 | $ | 377,887 | $ | 355,604 | $ | 249,895 | $ | 202,705 | |||||||
Average shareholders' equity (non-GAAP) | $ | 3,198,491 | $ | 3,067,719 | $ | 2,782,132 | $ | 2,617,275 | $ | 2,481,417 | |||||||
Less: Average preferred stock (non-GAAP) | 145,037 | 145,037 | 145,068 | 124,978 | 122,710 | ||||||||||||
Average goodwill and other intangible assets (non-GAAP) | 560,226 | 562,188 | 566,048 | 570,054 | 574,785 | ||||||||||||
Average tangible common shareholders' equity (non-GAAP) | $ | 2,493,228 | $ | 2,360,494 | $ | 2,071,016 | $ | 1,922,243 | $ | 1,783,922 | |||||||
Return on average tangible common shareholders' equity (non-GAAP) | 8.66 | % | 16.01 | % | 17.17 | % | 13.00 | % | 11.36 | % | |||||||
Efficiency ratio (non-GAAP): | |||||||||||||||||
Non-interest expense (GAAP) | $ | 758,946 | $ | 715,950 | $ | 705,616 | $ | 661,075 | $ | 623,191 | |||||||
Less: Foreclosed property activity (GAAP) | (1,504) | (173) | (139) | (238) | (326) | ||||||||||||
Intangible assets amortization (GAAP) | 4,160 | 3,847 | 3,847 | 4,062 | 5,652 | ||||||||||||
Other expense (non-GAAP) (1)
|
43,051 | 1,757 | 11,878 | 9,029 | 3,513 | ||||||||||||
Non-interest expense (non-GAAP) | $ | 713,239 | $ | 710,519 | $ | 690,030 | $ | 648,222 | $ | 614,352 | |||||||
Net interest income (GAAP) | $ | 891,393 | $ | 955,127 | $ | 906,681 | $ | 796,287 | $ | 718,513 | |||||||
Add: Tax-equivalent adjustment (non-GAAP) | 10,246 | 9,695 | 9,026 | 16,953 | 13,637 | ||||||||||||
Non-interest income (GAAP) | 285,277 | 285,315 | 282,568 | 259,478 | 264,478 | ||||||||||||
Other (non-GAAP) (2)
|
10,371 | 1,448 | 1,244 | 1,798 | 1,780 | ||||||||||||
Less: Gain on sale of investment securities, net (GAAP) | 8 | 29 | — | — | 414 | ||||||||||||
Gains on sale of banking centers and asset redemption (GAAP) | — | — | 4,596 | — | 7,331 | ||||||||||||
Income (non-GAAP) | $ | 1,197,279 | $ | 1,251,556 | $ | 1,194,923 | $ | 1,074,516 | $ | 990,663 | |||||||
Efficiency ratio (non-GAAP) | 59.57 | % | 56.77 | % | 57.75 | % | 60.33 | % | 62.01 | % |
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(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 | $ | 21,385,702 | $ | 792,929 | 3.71 | % | $ | 19,209,611 | $ | 927,395 | 4.83 | % | $ | 18,033,587 | $ | 845,146 | 4.69 | % | |||||||||||||||||
Investment securities (1)
|
8,647,322 | 215,151 | 2.56 | 7,761,937 | 229,989 | 2.97 | 7,137,326 | 211,227 | 2.93 | ||||||||||||||||||||||||||
FHLB and FRB stock | 102,943 | 3,200 | 3.11 | 113,518 | 4,956 | 4.37 | 132,607 | 6,067 | 4.58 | ||||||||||||||||||||||||||
Interest-bearing deposits (2)
|
93,011 | 246 | 0.26 | 56,458 | 1,211 | 2.14 | 63,178 | 1,125 | 1.78 | ||||||||||||||||||||||||||
Securities | 8,843,276 | 218,597 | 2.54 | 7,931,913 | 236,156 | 2.98 | 7,333,111 | 218,419 | 2.98 | ||||||||||||||||||||||||||
Loans held for sale | 25,902 | 769 | 2.97 | 22,437 | 727 | 3.24 | 15,519 | 628 | 4.04 | ||||||||||||||||||||||||||
Total interest-earning assets | 30,254,880 | $ | 1,012,295 | 3.37 | % | 27,163,961 | $ | 1,164,278 | 4.29 | % | 25,382,217 | $ | 1,064,193 | 4.18 | % | ||||||||||||||||||||
Non-interest-earning assets | 2,012,900 | 1,897,078 | 1,640,385 | ||||||||||||||||||||||||||||||||
Total assets | $ | 32,267,780 | $ | 29,061,039 | $ | 27,022,602 | |||||||||||||||||||||||||||||
Liabilities and equity | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 5,698,399 | $ | — | — | % | $ | 4,300,407 | $ | — | — | % | $ | 4,185,183 | $ | — | — | % | |||||||||||||||||
Health savings accounts | 6,893,996 | 9,530 | 0.14 | 6,240,201 | 12,316 | 0.20 | 5,540,000 | 10,980 | 0.20 | ||||||||||||||||||||||||||
Interest-bearing checking, money market and savings | 10,689,634 | 25,248 | 0.24 | 9,144,086 | 54,566 | 0.60 | 9,115,168 | 36,559 | 0.40 | ||||||||||||||||||||||||||
Time deposits | 2,760,561 | 33,119 | 1.20 | 3,267,913 | 62,695 | 1.92 | 2,818,271 | 42,868 | 1.52 | ||||||||||||||||||||||||||
Total deposits | 26,042,590 | 67,897 | 0.26 | 22,952,607 | 129,577 | 0.56 | 21,658,622 | 90,407 | 0.42 | ||||||||||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 1,292,571 | 5,941 | 0.46 | 1,008,704 | 17,953 | 1.78 | 784,998 | 13,491 | 1.72 | ||||||||||||||||||||||||||
FHLB advances | 730,125 | 18,767 | 2.57 | 1,201,839 | 31,399 | 2.61 | 1,339,492 | 33,461 | 2.50 | ||||||||||||||||||||||||||
Long-term debt (1)
|
564,919 | 18,051 | 3.45 | 468,111 | 20,527 | 4.51 | 225,895 | 11,127 | 4.93 | ||||||||||||||||||||||||||
Total borrowings | 2,587,615 | 42,759 | 1.68 | 2,678,654 | 69,879 | 2.62 | 2,350,385 | 58,079 | 2.47 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 28,630,205 | $ | 110,656 | 0.39 | % | 25,631,261 | $ | 199,456 | 0.78 | % | 24,009,007 | $ | 148,486 | 0.62 | % | ||||||||||||||||||||
Non-interest-bearing liabilities | 439,084 | 362,059 | 231,463 | ||||||||||||||||||||||||||||||||
Total liabilities | 29,069,289 | 25,993,320 | 24,240,470 | ||||||||||||||||||||||||||||||||
Preferred stock | 145,037 | 145,037 | 145,068 | ||||||||||||||||||||||||||||||||
Common shareholders' equity | 3,053,454 | 2,922,682 | 2,637,064 | ||||||||||||||||||||||||||||||||
Total shareholders' equity | 3,198,491 | 3,067,719 | 2,782,132 | ||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 32,267,780 | $ | 29,061,039 | $ | 27,022,602 | |||||||||||||||||||||||||||||
Tax-equivalent net interest income | 901,639 | 964,822 | 915,707 | ||||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustments | (10,246) | (9,695) | (9,026) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 891,393 | $ | 955,127 | $ | 906,681 | |||||||||||||||||||||||||||||
Net interest margin | 3.00 | % | 3.55 | % | 3.60 | % |
Years ended December 31, | |||||||||||
2020 vs. 2019
Increase (decrease) due to |
|||||||||||
(In thousands) |
Rate (1)
|
Volume | Total | ||||||||
Change in interest on interest-earning assets: | |||||||||||
Loans and leases | $ | (245,693) | $ | 111,226 | $ | (134,467) | |||||
Loans held for sale | (184) | 226 | 42 | ||||||||
Securities (2)
|
(44,236) | 26,677 | (17,559) | ||||||||
Total interest income | $ | (290,113) | $ | 138,129 | $ | (151,984) | |||||
Change in interest on interest-bearing liabilities: | |||||||||||
Deposits | $ | (62,558) | $ | 878 | $ | (61,680) | |||||
Borrowings | (20,848) | (6,273) | (27,121) | ||||||||
Total interest expense | $ | (83,406) | $ | (5,395) | $ | (88,801) | |||||
Net change in net interest income | $ | (206,707) | $ | 143,524 | $ | (63,183) |
Years ended December 31, | Increase (decrease) | ||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | |||||||||||||
Deposit service fees | $ | 156,032 | $ | 168,022 | $ | (11,990) | (7.1) | % | |||||||||
Loan and lease related fees | 29,127 | 31,327 | (2,200) | (7.0) | |||||||||||||
Wealth and investment services | 32,916 | 32,932 | (16) | — | |||||||||||||
Mortgage banking activities | 18,295 | 6,115 | 12,180 | 199.2 | |||||||||||||
Increase in cash surrender value of life insurance policies | 14,561 | 14,612 | (51) | (0.3) | |||||||||||||
Gain on sale of investment securities, net | 8 | 29 | (21) | (72.4) | |||||||||||||
Other income | 34,338 | 32,278 | 2,060 | 6.4 | |||||||||||||
Total non-interest income | $ | 285,277 | $ | 285,315 | $ | (38) | — | % |
Years ended December 31, | Increase (decrease) | ||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | |||||||||||||
Compensation and benefits | $ | 428,391 | $ | 395,402 | $ | 32,989 | 8.3 | % | |||||||||
Occupancy | 71,029 | 57,181 | 13,848 | 24.2 | |||||||||||||
Technology and equipment | 112,273 | 105,283 | 6,990 | 6.6 | |||||||||||||
Intangible assets amortization | 4,160 | 3,847 | 313 | 8.1 | |||||||||||||
Marketing | 14,125 | 16,286 | (2,161) | (13.3) | |||||||||||||
Professional and outside services | 32,424 | 21,380 | 11,044 | 51.7 | |||||||||||||
Deposit insurance | 18,316 | 17,954 | 362 | 2.0 | |||||||||||||
Other expense | 78,228 | 98,617 | (20,389) | (20.7) | |||||||||||||
Total non-interest expense | $ | 758,946 | $ | 715,950 | $ | 42,996 | 6.0 | % |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net interest income | $ | 423,869 | $ | 403,258 | $ | 381,098 | |||||||||||
Non-interest income | 58,366 | 59,063 | 64,765 | ||||||||||||||
Non-interest expense | 187,572 | 181,580 | 174,054 | ||||||||||||||
Pre-tax, pre-provision net revenue | $ | 294,663 | $ | 280,741 | $ | 271,809 |
At December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Loans and leases | $ | 12,648,909 | $ | 11,499,573 | $ | 10,437,319 | |||||||||||
Deposits | 5,956,931 | 4,382,051 | 4,030,554 | ||||||||||||||
Assets under administration/management (off-balance sheet)
|
2,686,236 | 2,304,350 | 1,930,199 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net interest income | $ | 162,363 | $ | 172,685 | $ | 147,920 | |||||||||||
Non-interest income | 100,826 | 97,041 | 89,323 | ||||||||||||||
Non-interest expense | 140,637 | 135,586 | 124,594 | ||||||||||||||
Pre-tax net revenue | $ | 122,552 | $ | 134,140 | $ | 112,649 |
At December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Deposits | $ | 7,120,017 | $ | 6,416,135 | $ | 5,740,601 | |||||||||||
Assets under administration, through linked brokerage accounts (off-balance sheet)
|
2,852,877 | 2,070,910 | 1,460,204 | ||||||||||||||
Total footings | $ | 9,972,894 | $ | 8,487,045 | $ | 7,200,805 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net interest income | $ | 422,979 | $ | 420,898 | $ | 422,063 | |||||||||||
Non-interest income | 106,279 | 109,270 | 109,669 | ||||||||||||||
Non-interest expense | 390,596 | 388,399 | 384,603 | ||||||||||||||
Pre-tax, pre-provision net revenue | $ | 138,662 | $ | 141,769 | $ | 147,129 |
At December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Loans | $ | 8,992,252 | $ | 8,537,341 | $ | 8,028,115 | |||||||||||
Deposits | 14,257,666 | 12,527,903 | 11,856,652 | ||||||||||||||
Assets under administration (off-balance sheet)
|
3,899,558 | 3,712,311 | 3,391,946 |
At December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(In thousands) |
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair Value |
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair Value | |||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Agency CMO | $ | 148,711 | $ | 6,000 | $ | (98) | $ | 154,613 | $ | 184,500 | $ | 2,218 | $ | (917) | $ | 185,801 | |||||||||||||
Agency MBS | 1,389,100 | 68,598 | (289) | 1,457,409 | 1,580,743 | 35,456 | (4,035) | 1,612,164 | |||||||||||||||||||||
Agency CMBS | 1,092,430 | 26,317 | (1,514) | 1,117,233 | 587,974 | 513 | (6,935) | 581,552 | |||||||||||||||||||||
CMBS | 512,759 | 1,082 | (5,823) | 508,018 | 432,085 | 38 | (252) | 431,871 | |||||||||||||||||||||
CLO | 76,693 | — | (310) | 76,383 | 92,628 | 45 | (468) | 92,205 | |||||||||||||||||||||
Corporate debt | 14,557 | — | (1,437) | 13,120 | 23,485 | — | (1,245) | 22,240 | |||||||||||||||||||||
Securities available-for-sale | $ | 3,234,250 | $ | 101,997 | $ | (9,471) | $ | 3,326,776 | $ | 2,901,415 | $ | 38,270 | $ | (13,852) | $ | 2,925,833 | |||||||||||||
Held-to-maturity:
|
|||||||||||||||||||||||||||||
Agency CMO | $ | 91,622 | $ | 1,785 | $ | (241) | $ | 93,166 | $ | 167,443 | $ | 1,123 | $ | (1,200) | $ | 167,366 | |||||||||||||
Agency MBS | 2,419,751 | 137,863 | (84) | 2,557,530 | 2,957,900 | 60,602 | (8,733) | 3,009,769 | |||||||||||||||||||||
Agency CMBS | 2,101,227 | 60,484 | (2,213) | 2,159,498 | 1,172,491 | 6,444 | (5,615) | 1,173,320 | |||||||||||||||||||||
Municipal bonds and notes (1)
|
739,507 | 60,371 | (3) | 799,875 | 740,431 | 32,709 | (21) | 773,119 | |||||||||||||||||||||
CMBS | 216,081 | 9,214 | — | 225,295 | 255,653 | 2,278 | (852) | 257,079 | |||||||||||||||||||||
Securities held-to-maturity | $ | 5,568,188 | $ | 269,717 | $ | (2,541) | $ | 5,835,364 | $ | 5,293,918 | $ | 103,156 | $ | (16,421) | $ | 5,380,653 |
At December 31, 2020 | ||||||||||||||||||||||||||||||||
Within 1 Year | 1 - 5 Years | 5 - 10 Years | After 10 Years | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amount |
Weighted
Average Coupon Yield |
Amount |
Weighted
Average Coupon Yield |
Amount |
Weighted
Average Coupon Yield |
Amount |
Weighted
Average Coupon Yield |
Amount |
Weighted
Average Coupon Yield |
||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Agency CMO | $ | — | — | % | $ | 1,489 | 2.69 | % | $ | 5,766 | 0.96 | % | $ | 147,358 | 2.07 | % | $ | 154,613 | 2.03 | % | ||||||||||||
Agency MBS | — | — | — | — | 8,710 | 1.93 | 1,448,699 | 2.16 | 1,457,409 | 2.16 | ||||||||||||||||||||||
Agency CMBS | — | — | — | — | — | — | 1,117,233 | 2.04 | 1,117,233 | 2.04 | ||||||||||||||||||||||
CMBS | — | — | — | — | 158,098 | 2.10 | 349,920 | 1.66 | 508,018 | 1.80 | ||||||||||||||||||||||
CLO | — | — | — | — | 76,383 | 1.91 | — | — | 76,383 | 1.91 | ||||||||||||||||||||||
Corporate debt | — | — | — | — | — | — | 13,120 | 1.26 | 13,120 | 1.26 | ||||||||||||||||||||||
Securities available-for-sale | $ | — | — | % | $ | 1,489 | 2.69 | % | $ | 248,957 | 2.01 | % | $ | 3,076,330 | 2.05 | % | $ | 3,326,776 | 2.04 | % | ||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Agency CMO | $ | — | — | % | $ | — | — | % | $ | — | — | % | $ | 91,622 | 0.84 | % | $ | 91,622 | 0.84 | % | ||||||||||||
Agency MBS | — | — | 2,619 | 3.58 | 3,124 | 1.74 | 2,414,008 | 2.28 | 2,419,751 | 2.28 | ||||||||||||||||||||||
Agency CMBS | — | — | — | — | 195,319 | 2.70 | 1,905,908 | 2.18 | 2,101,227 | 2.22 | ||||||||||||||||||||||
Municipal bonds and notes | 2,698 | 4.48 | 6,781 | 3.20 | 80,532 | 2.70 | 649,496 | 2.91 | 739,507 | 2.89 | ||||||||||||||||||||||
CMBS | — | — | — | — | — | — | 216,081 | 2.68 | 216,081 | 2.68 | ||||||||||||||||||||||
Securities held-to-maturity | $ | 2,698 | 4.48 | % | $ | 9,400 | 3.31 | % | $ | 278,975 | 2.69 | % | $ | 5,277,115 | 2.31 | % | $ | 5,568,188 | 2.33 | % | ||||||||||||
Total debt securities | $ | 2,698 | 4.48 | % | $ | 10,889 | 3.23 | % | $ | 527,932 | 2.36 | % | $ | 8,353,445 | 2.22 | % | $ | 8,894,964 | 2.23 | % |
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 7,085,076 | 32.8 | $ | 5,296,611 | 26.4 | $ | 5,247,435 | 28.4 | $ | 4,533,915 | 25.9 | $ | 4,135,625 | 24.3 | |||||||||||||||||||||||||||||
Asset-based | 890,598 | 4.1 | 1,046,886 | 5.2 | 969,171 | 5.3 | 834,779 | 4.8 | 805,306 | 4.7 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 6,322,637 | 29.2 | 5,949,339 | 29.7 | 4,927,145 | 26.7 | 4,523,828 | 25.8 | 4,510,846 | 26.5 | ||||||||||||||||||||||||||||||||||
Equipment financing | 602,224 | 2.8 | 537,341 | 2.7 | 508,397 | 2.8 | 550,233 | 3.1 | 635,629 | 3.7 | ||||||||||||||||||||||||||||||||||
Residential | 4,782,016 | 22.1 | 4,972,685 | 24.8 | 4,416,637 | 23.9 | 4,490,878 | 25.6 | 4,254,682 | 25.0 | ||||||||||||||||||||||||||||||||||
Home equity | 1,802,865 | 8.3 | 2,014,544 | 10.1 | 2,169,179 | 11.7 | 2,352,268 | 13.4 | 2,409,893 | 14.2 | ||||||||||||||||||||||||||||||||||
Other consumer | 155,799 | 0.7 | 219,580 | 1.1 | 227,525 | 1.2 | 237,957 | 1.4 | 274,607 | 1.6 | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 21,641,215 | 100.0 | $ | 20,036,986 | 100.0 | $ | 18,465,489 | 100.0 | $ | 17,523,858 | 100.0 | $ | 17,026,588 | 100.0 |
At December 31, 2020 | ||||||||||||||
Contractual Maturity | ||||||||||||||
(In thousands) | One Year Or Less | One To Five Years | More Than Five Years | Total | ||||||||||
Commercial non-mortgage | $ | 660,011 | $ | 5,750,398 | $ | 674,667 | $ | 7,085,076 | ||||||
Asset-based | 191,267 | 693,518 | 5,813 | 890,598 | ||||||||||
Commercial real estate | 758,715 | 3,054,784 | 2,509,138 | 6,322,637 | ||||||||||
Equipment financing | 22,951 | 511,364 | 67,909 | 602,224 | ||||||||||
Residential | 1,603 | 79,321 | 4,701,092 | 4,782,016 | ||||||||||
Home equity | 21,860 | 54,895 | 1,726,110 | 1,802,865 | ||||||||||
Other consumer | 16,866 | 128,769 | 10,164 | 155,799 | ||||||||||
Total loans and leases | $ | 1,673,273 | $ | 10,273,049 | $ | 9,694,893 | $ | 21,641,215 | ||||||
Interest-Rate Profile | ||||||||||||||
(In thousands) | One Year Or Less | One To Five Years | More Than Five Years | Total | ||||||||||
Fixed rate | $ | 222,533 | $ | 2,240,172 | $ | 4,220,045 | $ | 6,682,750 | ||||||
Variable rate | 1,450,740 | 8,032,877 | 5,474,848 | 14,958,465 | ||||||||||
Total loans and leases | $ | 1,673,273 | $ | 10,273,049 | $ | 9,694,893 | $ | 21,641,215 |
Years ended December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Beginning balance | $ | 237,438 | $ | 230,414 | |||||||
Additions | 56,418 | 105,981 | |||||||||
Paydowns/draws | (38,684) | (74,888) | |||||||||
Charge-offs | (18,379) | (21,776) | |||||||||
Transfers to OREO | (1,366) | (2,293) | |||||||||
Ending balance | $ | 235,427 | $ | 237,438 | |||||||
At December 31, | |||||||||||
(In thousands)
|
2020 | 2019 | |||||||||
Accrual status | $ | 140,089 | $ | 136,449 | |||||||
Non-accrual status | 95,338 | 100,989 | |||||||||
Total TDRs | $ | 235,427 | $ | 237,438 | |||||||
Specific reserves for TDR included in the balance of ACL on loans and leases | $ | 12,728 | $ | 12,956 | |||||||
Additional funds committed to borrowers in TDR status | 12,895 | 4,856 |
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | Amount |
% (1)
|
Amount |
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|
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Commercial portfolio | $ | 117,695 | 0.79 | $ | 112,152 | 0.87 | $ | 87,739 | 0.75 | $ | 61,673 | 0.59 | $ | 58,464 | 0.58 | |||||||||||||||||||||||||||||
Consumer portfolio | 117,732 | 1.75 | 125,286 | 1.74 | 142,675 | 2.09 | 159,731 | 2.26 | 165,064 | 2.38 | ||||||||||||||||||||||||||||||||||
Total recorded investment of TDRs | $ | 235,427 | 1.09 | $ | 237,438 | 1.18 | $ | 230,414 | 1.25 | $ | 221,404 | 1.26 | $ | 223,528 | 1.31 |
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
Amount (1)
|
% (2)
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Amount (1)
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% (2)
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Amount (1)
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Commercial non-mortgage | $ | 1,503 | 0.02 | $ | 2,697 | 0.05 | $ | 1,700 | 0.03 | $ | 5,809 | 0.13 | $ | 1,949 | 0.05 | |||||||||||||||||||||||||||||
Asset-based | 1,175 | 0.13 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial real estate | 3,003 | 0.05 | 1,700 | 0.03 | 1,514 | 0.03 | 551 | 0.01 | 8,173 | 0.18 | ||||||||||||||||||||||||||||||||||
Equipment financing | 7,415 | 1.24 | 5,785 | 1.09 | 915 | 0.18 | 2,358 | 0.43 | 1,596 | 0.25 | ||||||||||||||||||||||||||||||||||
Residential | 10,623 | 0.22 | 13,598 | 0.28 | 12,789 | 0.29 | 13,771 | 0.31 | 11,202 | 0.26 | ||||||||||||||||||||||||||||||||||
Home equity | 7,246 | 0.41 | 13,761 | 0.69 | 14,595 | 0.68 | 18,397 | 0.79 | 14,578 | 0.61 | ||||||||||||||||||||||||||||||||||
Other consumer | 1,474 | 0.95 | 5,074 | 2.31 | 2,729 | 1.20 | 3,997 | 1.68 | 3,715 | 1.35 | ||||||||||||||||||||||||||||||||||
Loans and leases past due 30-89 days | 32,439 | 0.15 | 42,615 | 0.21 | 34,242 | 0.19 | 44,883 | 0.26 | 41,213 | 0.24 | ||||||||||||||||||||||||||||||||||
Commercial non-mortgage | 445 | 0.01 | — | — | 104 | — | 644 | 0.01 | 749 | 0.02 | ||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | 243 | 0.01 | — | — | ||||||||||||||||||||||||||||||||||
Loans and leases past due 90 days and accruing | 445 | — | — | — | 104 | — | 887 | 0.01 | 749 | — | ||||||||||||||||||||||||||||||||||
Total loans and leases over 30 days past due and accruing | 32,884 | 0.15 | 42,615 | 0.21 | 34,346 | 0.19 | 45,770 | 0.26 | 41,962 | 0.25 | ||||||||||||||||||||||||||||||||||
Deferred costs and unamortized premiums | 98 | 92 | 86 | 77 | 86 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 32,982 | $ | 42,707 | $ | 34,432 | $ | 45,847 | $ | 42,048 |
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount |
% (1)
|
Amount |
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|
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% (1)
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% (1)
|
||||||||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 64,200 | 0.90 | $ | 59,360 | 1.12 | $ | 55,951 | 1.06 | $ | 39,402 | 0.87 | $ | 38,550 | 0.93 | |||||||||||||||||||||||||||||
Asset-based | 2,622 | 0.29 | 139 | 0.01 | 224 | 0.02 | 589 | 0.07 | — | — | ||||||||||||||||||||||||||||||||||
Commercial real estate | 21,222 | 0.34 | 11,554 | 0.19 | 8,243 | 0.17 | 4,484 | 0.10 | 10,521 | 0.23 | ||||||||||||||||||||||||||||||||||
Equipment financing | 7,299 | 1.22 | 5,433 | 1.02 | 6,314 | 1.25 | 393 | 0.07 | 225 | 0.04 | ||||||||||||||||||||||||||||||||||
Residential | 41,033 | 0.86 | 43,100 | 0.87 | 49,069 | 1.12 | 44,407 | 0.99 | 47,201 | 1.12 | ||||||||||||||||||||||||||||||||||
Home equity | 30,980 | 1.73 | 30,130 | 1.51 | 33,456 | 1.55 | 35,601 | 1.52 | 35,875 | 1.50 | ||||||||||||||||||||||||||||||||||
Other consumer | 649 | 0.42 | 1,190 | 0.54 | 1,493 | 0.66 | 1,706 | 0.72 | 1,663 | 0.61 | ||||||||||||||||||||||||||||||||||
Total non-accrual loans and leases
|
168,005 | 0.78 | 150,906 | 0.75 | 154,750 | 0.84 | 126,582 | 0.72 | 134,035 | 0.79 | ||||||||||||||||||||||||||||||||||
Net deferred fees/costs and net premiums/discounts | (45) | 153 | 17 | (69) | (219) | |||||||||||||||||||||||||||||||||||||||
Amortized cost of non-accrual loans and leases (2)
|
$ | 167,960 | $ | 151,059 | $ | 154,767 | $ | 126,513 | $ | 133,816 | ||||||||||||||||||||||||||||||||||
Total non-accrual loans and leases | $ | 168,005 | $ | 150,906 | $ | 154,750 | $ | 126,582 | $ | 134,035 | ||||||||||||||||||||||||||||||||||
Foreclosed and repossessed assets: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial non-mortgage | 175 | 271 | 407 | 305 | — | |||||||||||||||||||||||||||||||||||||||
Residential and consumer | 2,134 | 6,203 | 6,460 | 5,759 | 3,911 | |||||||||||||||||||||||||||||||||||||||
Total foreclosed and repossessed assets | 2,309 | 6,474 | 6,867 | 6,064 | 3,911 | |||||||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 170,314 | $ | 157,380 | $ | 161,617 | $ | 132,646 | $ | 137,946 |
Years ended December 31, | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Beginning balance | $ | 150,906 | $ | 154,750 | ||||
Additions | 146,922 | 123,400 | ||||||
Paydowns, net of draws | (67,825) | (52,161) | ||||||
Charge-offs | (51,528) | (48,156) | ||||||
Other | (10,470) | (26,927) | ||||||
Ending balance | $ | 168,005 | $ | 150,906 |
At or for the years ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Non-performing loans and leases as a percentage of loans and leases | 0.78 | % | 0.75 | % | 0.84 | % | 0.72 | % | 0.79 | % | |||||||||||||||||||
Non-performing assets as a percentage of loans and leases plus OREO | 0.79 | 0.79 | 0.87 | 0.76 | 0.81 | ||||||||||||||||||||||||
Non-performing assets as a percentage of total assets | 0.52 | 0.52 | 0.59 | 0.50 | 0.53 | ||||||||||||||||||||||||
ACL on loans and leases as a percentage of non-performing loans and leases (1)
|
213.94 | 138.56 | 137.22 | 158.00 | 144.98 | ||||||||||||||||||||||||
ACL on loans and leases as a percentage of loans and leases (1)
|
1.66 | 1.04 | 1.15 | 1.14 | 1.14 | ||||||||||||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.21 | 0.21 | 0.16 | 0.20 | 0.23 | ||||||||||||||||||||||||
Ratio of ACL on loans and leases to net charge-offs (1)
|
7.97x | 5.09x | 7.16x | 5.68x | 5.25x |
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 133,187 | 1.88 | $ | 78,435 | 1.48 | $ | 86,077 | 1.64 | $ | 78,763 | 1.74 | $ | 66,874 | 1.62 | |||||||||||||||||||||||||||||
Asset-based | 10,832 | 1.22 | 13,321 | 1.27 | 12,716 | 1.31 | 10,770 | 1.29 | 5,031 | 0.62 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 159,197 | 2.52 | 65,245 | 1.10 | 60,151 | 1.22 | 49,407 | 1.09 | 47,477 | 1.05 | ||||||||||||||||||||||||||||||||||
Equipment financing | 9,028 | 1.50 | 4,668 | 0.87 | 5,129 | 1.01 | 5,806 | 1.06 | 6,479 | 1.02 | ||||||||||||||||||||||||||||||||||
Residential | 13,989 | 0.29 | 20,919 | 0.42 | 19,599 | 0.44 | 19,058 | 0.42 | 23,226 | 0.55 | ||||||||||||||||||||||||||||||||||
Home equity | 26,416 | 1.47 | 15,190 | 0.75 | 19,135 | 0.88 | 23,547 | 1.00 | 31,576 | 1.31 | ||||||||||||||||||||||||||||||||||
Other consumer | 6,782 | 4.35 | 11,318 | 5.15 | 9,546 | 4.20 | 12,643 | 5.31 | 13,657 | 4.97 | ||||||||||||||||||||||||||||||||||
Total ACL on loans and leases | $ | 359,431 | 1.66 | $ | 209,096 | 1.04 | $ | 212,353 | 1.15 | $ | 199,994 | 1.14 | $ | 194,320 | 1.14 |
At or for the years ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Beginning balance | $ | 209,096 | $ | 212,353 | $ | 199,994 | $ | 194,320 | $ | 174,990 | |||||||||||||||||||
Adoption of ASU No. 2016-13 (CECL) | 57,568 | — | — | — | — | ||||||||||||||||||||||||
Provision | 137,848 | 37,800 | 42,000 | 40,900 | 56,350 | ||||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial non-mortgage | (40,003) | (29,033) | (17,757) | (5,575) | (18,360) | ||||||||||||||||||||||||
Asset-based | (10) | — | (463) | (2,572) | — | ||||||||||||||||||||||||
Commercial real estate | (2,116) | (3,501) | (2,061) | (9,275) | (2,682) | ||||||||||||||||||||||||
Equipment financing | (796) | (793) | (423) | (558) | (565) | ||||||||||||||||||||||||
Residential | (2,356) | (4,153) | (3,455) | (2,500) | (4,636) | ||||||||||||||||||||||||
Home equity | (2,087) | (4,329) | (6,664) | (8,347) | (9,093) | ||||||||||||||||||||||||
Other consumer | (7,965) | (10,671) | (12,564) | (16,100) | (11,576) | ||||||||||||||||||||||||
Total charge-offs | (55,333) | (52,480) | (43,387) | (44,927) | (46,912) | ||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial non-mortgage | 2,963 | 1,364 | 4,244 | 2,243 | 1,578 | ||||||||||||||||||||||||
Asset-based | 46 | 262 | 195 | 115 | 48 | ||||||||||||||||||||||||
Commercial real estate | 55 | 45 | 161 | 165 | 631 | ||||||||||||||||||||||||
Equipment financing | 76 | 78 | 75 | 117 | 536 | ||||||||||||||||||||||||
Residential | 1,029 | 1,363 | 1,980 | 1,024 | 1,756 | ||||||||||||||||||||||||
Home equity | 3,997 | 5,533 | 4,196 | 4,850 | 4,745 | ||||||||||||||||||||||||
Other consumer | 2,086 | 2,778 | 2,895 | 1,187 | 598 | ||||||||||||||||||||||||
Total recoveries | 10,252 | 11,423 | 13,746 | 9,701 | 9,892 | ||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||||
Commercial non-mortgage | (37,040) | (27,669) | (13,513) | (3,332) | (16,782) | ||||||||||||||||||||||||
Asset-based | 36 | 262 | (268) | (2,457) | 48 | ||||||||||||||||||||||||
Commercial real estate | (2,061) | (3,456) | (1,900) | (9,110) | (2,051) | ||||||||||||||||||||||||
Equipment financing | (720) | (715) | (348) | (441) | (29) | ||||||||||||||||||||||||
Residential | (1,327) | (2,790) | (1,475) | (1,476) | (2,880) | ||||||||||||||||||||||||
Home equity | 1,910 | 1,204 | (2,468) | (3,497) | (4,348) | ||||||||||||||||||||||||
Other consumer | (5,879) | (7,893) | (9,669) | (14,913) | (10,978) | ||||||||||||||||||||||||
Net charge-offs | (45,081) | (41,057) | (29,641) | (35,226) | (37,020) | ||||||||||||||||||||||||
Ending balance | $ | 359,431 | $ | 209,096 | $ | 212,353 | $ | 199,994 | $ | 194,320 |
Years ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Commercial portfolio | 0.28 | % | 0.26 | % | 0.14 | % | 0.15 | % | 0.20 | % | |||||||||||||||||||
Consumer portfolio | 0.08 | 0.14 | 0.20 | 0.28 | 0.26 | ||||||||||||||||||||||||
Total net charge-offs to total average loans and leases | 0.21 | % | 0.21 | % | 0.16 | % | 0.20 | % | 0.23 | % |
At or for the years ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Beginning balance | $ | 2,367 | $ | 2,506 | $ | 2,362 | $ | 2,287 | $ | 2,119 | |||||||||||||||||||
Adoption of ASU No. 2016-13 (CECL) | 9,139 | — | — | — | — | ||||||||||||||||||||||||
Provision (benefit) | 1,249 | (139) | 144 | 75 | 168 | ||||||||||||||||||||||||
Ending balance | $ | 12,755 | $ | 2,367 | $ | 2,506 | $ | 2,362 | $ | 2,287 |
Years ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||||||
Non-interest-bearing: | ||||||||||||||||||||||||||
Demand | $ | 5,698,399 | $ | 4,300,407 | $ | 4,185,183 | ||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||
Checking | 3,189,275 | 0.10 | % | 2,604,931 | 0.14 | % | 2,585,593 | 0.08 | % | |||||||||||||||||
Health savings accounts | 6,893,996 | 0.14 | 6,240,201 | 0.20 | 5,540,000 | 0.20 | ||||||||||||||||||||
Money market | 2,853,098 | 0.45 | 2,365,367 | 1.27 | 2,351,188 | 0.95 | ||||||||||||||||||||
Savings | 4,647,261 | 0.20 | 4,173,788 | 0.50 | 4,178,387 | 0.29 | ||||||||||||||||||||
Time deposits | 2,760,561 | 1.20 | 3,267,913 | 1.92 | 2,818,271 | 1.52 | ||||||||||||||||||||
Total interest-bearing | 20,344,191 | 0.33 | 18,652,200 | 0.69 | 17,473,439 | 0.52 | ||||||||||||||||||||
Total average deposits | $ | 26,042,590 | 0.26 | % | $ | 22,952,607 | 0.56 | % | $ | 21,658,622 | 0.42 | % |
Years ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||||||
FHLB advances | $ | 730,125 | 2.57 | % | $ | 1,201,839 | 2.61 | % | $ | 1,339,492 | 2.50 | % | ||||||||||||||
Securities sold under agreements to repurchase | 571,576 | 0.46 | 296,498 | 0.88 | 467,873 | 1.57 | ||||||||||||||||||||
Fed funds purchased | 720,995 | 0.46 | 712,206 | 2.16 | 317,125 | 1.94 | ||||||||||||||||||||
Long-term debt | 564,919 | 3.45 | 468,111 | 4.51 | 225,895 | 4.93 | ||||||||||||||||||||
Total average borrowings | $ | 2,587,615 | 1.68 | % | $ | 2,678,654 | 2.62 | % | $ | 2,350,385 | 2.47 | % |
At or for the years ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
Securities sold under agreements to repurchase: | ||||||||||||||||||||||||||
At end of year | $ | 269,330 | 0.13 | % | $ | 240,431 | 0.19 | % | $ | 236,874 | 0.35 | % | ||||||||||||||
Average during year | 267,431 | 0.20 | 203,895 | 0.51 | 245,407 | 0.25 | ||||||||||||||||||||
Highest month-end balance during year | 325,318 | — | 240,431 | — | 264,491 | — | ||||||||||||||||||||
Fed funds purchased: | ||||||||||||||||||||||||||
At end of year | 526,025 | 0.08 | 600,000 | 1.59 | 345,000 | 2.52 | ||||||||||||||||||||
Average during year | 720,995 | 0.46 | 712,206 | 2.16 | 317,125 | 1.96 | ||||||||||||||||||||
Highest month-end balance during year | 1,104,000 | — | 1,230,000 | — | 424,400 | — |
|
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 | $ | 344,164 | $ | 494,164 | |||||||
Junior subordinated debt | — | — | — | 77,320 | 77,320 | ||||||||||||
FHLB advances | 25,000 | 325 | 100,000 | 7,839 | 133,164 | ||||||||||||
Securities sold under agreements to repurchase | 269,330 | — | 200,000 | — | 469,330 | ||||||||||||
Fed funds purchased | 526,025 | — | — | — | 526,025 | ||||||||||||
Deposits with stated maturity dates | 2,173,670 | 240,899 | 73,249 | — | 2,487,818 | ||||||||||||
Operating lease liabilities | 24,414 | 44,594 | 35,267 | 54,005 | 158,280 | ||||||||||||
Purchase obligations | 41,756 | 18,605 | 12,497 | — | 72,858 | ||||||||||||
Total contractual obligations | $ | 3,060,195 | $ | 304,423 | $ | 571,013 | $ | 483,328 | $ | 4,418,959 |
-200bp | -100bp | +100bp | +200bp | |||||||||||
December 31, 2020 | n/a | n/a | 1.7% | 4.7% | ||||||||||
December 31, 2019 | n/a | (4.7)% | 2.7% | 4.8% |
-200bp | -100bp | +100bp | +200bp | |||||||||||
December 31, 2020 | n/a | n/a | 2.4% | 7.1% | ||||||||||
December 31, 2019 | n/a | (7.7)% | 4.1% | 7.1% |
Short End of the Yield Curve | Long End of the Yield Curve | ||||||||||||||||||||||||||||
-100bp | -50bp | +50bp | +100bp | -100bp | -50bp | +50bp | +100bp | ||||||||||||||||||||||
December 31, 2020 | n/a | n/a | 0.2% | 1.5% | n/a | (2.2)% | 1.0% | 2.5% | |||||||||||||||||||||
December 31, 2019 | (5.1)% | (2.5)% | 1.0 % | 2.1 % | (4.7)% | (2.2)% | 1.7 % | 2.9 % |
Short End of the Yield Curve | Long End of the Yield Curve | ||||||||||||||||||||||||||||
-100bp | -50bp | +50bp | +100bp | -100bp | -50bp | +50bp | +100bp | ||||||||||||||||||||||
December 31, 2020 | n/a | n/a | (0.3)% | 1.7% | n/a | (4.0)% | 1.8% | 4.4% | |||||||||||||||||||||
December 31, 2019 | (7.9)% | (3.8)% | 1.1% | 2.4% | (8.1)% | (3.9)% | 3.0% | 5.1% |
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) | 2020 | 2019 | |||||||||
Assets: | |||||||||||
Cash and due from banks | $ | 193,501 | $ | 185,341 | |||||||
Interest-bearing deposits | 69,603 | 72,554 | |||||||||
Investment securities available-for-sale, at fair value | 3,326,776 | 2,925,833 | |||||||||
Investment securities held-to-maturity (fair value of $5,835,364 and $5,380,653)
|
5,568,188 | 5,293,918 | |||||||||
Allowance for credit losses on investment securities held-to-maturity | (299) | — | |||||||||
Investment securities held-to-maturity, net | 5,567,889 | 5,293,918 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 77,594 | 149,046 | |||||||||
Loans held for sale (valued under fair value option $14,000 and $35,750)
|
14,012 | 36,053 | |||||||||
Loans and leases | 21,641,215 | 20,036,986 | |||||||||
Allowance for credit losses on loan and leases | (359,431) | (209,096) | |||||||||
Loans and leases, net | 21,281,784 | 19,827,890 | |||||||||
Deferred tax assets, net | 81,286 | 61,975 | |||||||||
Premises and equipment, net | 226,743 | 270,413 | |||||||||
Goodwill | 538,373 | 538,373 | |||||||||
Other intangible assets, net | 22,383 | 21,917 | |||||||||
Cash surrender value of life insurance policies | 564,195 | 550,651 | |||||||||
Accrued interest receivable and other assets | 626,551 | 455,380 | |||||||||
Total assets | $ | 32,590,690 | $ | 30,389,344 | |||||||
Liabilities and shareholders' equity: | |||||||||||
Deposits: | |||||||||||
Non-interest-bearing | $ | 6,155,592 | $ | 4,446,463 | |||||||
Interest-bearing | 21,179,844 | 18,878,283 | |||||||||
Total deposits | 27,335,436 | 23,324,746 | |||||||||
Securities sold under agreements to repurchase and other borrowings | 995,355 | 1,040,431 | |||||||||
Federal Home Loan Bank advances | 133,164 | 1,948,476 | |||||||||
Long-term debt | 567,663 | 540,364 | |||||||||
Operating lease liabilities | 158,280 | 174,396 | |||||||||
Accrued expenses and other liabilities | 166,167 | 153,161 | |||||||||
Total liabilities | 29,356,065 | 27,181,574 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, $0.01 par value: Authorized - 3,000,000 shares;
|
|||||||||||
Series F issued and outstanding (6,000 shares)
|
145,037 | 145,037 | |||||||||
Common stock, $0.01 par value: Authorized - 200,000,000 shares;
|
|||||||||||
Issued (93,686,311 shares)
|
937 | 937 | |||||||||
Paid-in capital | 1,109,532 | 1,113,250 | |||||||||
Retained earnings | 2,077,522 | 2,061,352 | |||||||||
Treasury stock, at cost (3,487,389 and 1,659,749 shares)
|
(140,659) | (76,734) | |||||||||
Accumulated other comprehensive income (loss,) net of tax | 42,256 | (36,072) | |||||||||
Total shareholders' equity | 3,234,625 | 3,207,770 | |||||||||
Total liabilities and shareholders' equity | $ | 32,590,690 | $ | 30,389,344 |
Years ended December 31, | |||||||||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Interest Income: | |||||||||||||||||
Interest and fees on loans and leases | $ | 789,719 | $ | 924,693 | $ | 842,449 | |||||||||||
Taxable interest and dividends on securities | 189,683 | 207,294 | 191,493 | ||||||||||||||
Non-taxable interest on securities | 21,878 | 21,869 | 20,597 | ||||||||||||||
Loans held for sale | 769 | 727 | 628 | ||||||||||||||
Total interest income | 1,002,049 | 1,154,583 | 1,055,167 | ||||||||||||||
Interest Expense: | |||||||||||||||||
Deposits | 67,897 | 129,577 | 90,407 | ||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 5,941 | 17,953 | 13,491 | ||||||||||||||
Federal Home Loan Bank advances | 18,767 | 31,399 | 33,461 | ||||||||||||||
Long-term debt | 18,051 | 20,527 | 11,127 | ||||||||||||||
Total interest expense | 110,656 | 199,456 | 148,486 | ||||||||||||||
Net interest income | 891,393 | 955,127 | 906,681 | ||||||||||||||
Provision for credit losses | 137,750 | 37,800 | 42,000 | ||||||||||||||
Net interest income after provision for credit losses | 753,643 | 917,327 | 864,681 | ||||||||||||||
Non-interest Income: | |||||||||||||||||
Deposit service fees | 156,032 | 168,022 | 162,183 | ||||||||||||||
Loan and lease related fees | 29,127 | 31,327 | 32,025 | ||||||||||||||
Wealth and investment services | 32,916 | 32,932 | 32,843 | ||||||||||||||
Mortgage banking activities | 18,295 | 6,115 | 4,424 | ||||||||||||||
Increase in cash surrender value of life insurance policies | 14,561 | 14,612 | 14,614 | ||||||||||||||
Gain on sale of investment securities, net | 8 | 29 | — | ||||||||||||||
Other income | 34,338 | 32,278 | 36,479 | ||||||||||||||
Total non-interest income | 285,277 | 285,315 | 282,568 | ||||||||||||||
Non-interest Expense: | |||||||||||||||||
Compensation and benefits | 428,391 | 395,402 | 381,496 | ||||||||||||||
Occupancy | 71,029 | 57,181 | 59,463 | ||||||||||||||
Technology and equipment | 112,273 | 105,283 | 97,877 | ||||||||||||||
Intangible assets amortization | 4,160 | 3,847 | 3,847 | ||||||||||||||
Marketing | 14,125 | 16,286 | 16,838 | ||||||||||||||
Professional and outside services | 32,424 | 21,380 | 20,300 | ||||||||||||||
Deposit insurance | 18,316 | 17,954 | 34,749 | ||||||||||||||
Other expense | 78,228 | 98,617 | 91,046 | ||||||||||||||
Total non-interest expense | 758,946 | 715,950 | 705,616 | ||||||||||||||
Income before income tax expense | 279,974 | 486,692 | 441,633 | ||||||||||||||
Income tax expense | 59,353 | 103,969 | 81,215 | ||||||||||||||
Net income | 220,621 | 382,723 | 360,418 | ||||||||||||||
Preferred stock dividends and other | (9,147) | (9,738) | (8,715) | ||||||||||||||
Earnings applicable to common shareholders | $ | 211,474 | $ | 372,985 | $ | 351,703 | |||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 2.35 | $ | 4.07 | $ | 3.83 | |||||||||||
Diluted | 2.35 | 4.06 | 3.81 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Investment securities available-for-sale | 50,173 | 88,625 | (43,427) | ||||||||||||||
Derivative instruments | 29,102 | 129 | 5,703 | ||||||||||||||
Defined benefit pension and postretirement benefit plans | (947) | 5,826 | (1,397) | ||||||||||||||
Other comprehensive income (loss), net of tax | 78,328 | 94,580 | (39,121) | ||||||||||||||
Comprehensive income | $ | 298,949 | $ | 477,303 | $ | 321,297 |
(In thousands, except per share data) |
Preferred
Stock |
Common
Stock |
Paid-In
Capital |
Retained
Earnings |
Treasury
Stock, at cost |
Accumulated
Other Comprehensive (Loss) Income, Net of Tax |
Total Shareholders'
Equity |
||||||||||||||||
Balance at December 31, 2017 | $ | 145,056 | $ | 937 | $ | 1,122,164 | $ | 1,595,762 | $ | (70,430) | $ | (91,531) | $ | 2,701,958 | |||||||||
Adoption of ASU No. 2017-08 and ASU No. 2016-01 | — | — | — | (1,373) | — | — | (1,373) | ||||||||||||||||
Net income | — | — | — | 360,418 | — | — | 360,418 | ||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (39,121) | (39,121) | ||||||||||||||||
Common stock dividends/equivalents $1.25 per share
|
— | — | 99 | (115,442) | — | — | (115,343) | ||||||||||||||||
Series F preferred stock dividends $1,323.44 per share
|
— | — | — | (7,875) | — | — | (7,875) | ||||||||||||||||
Dividends accrued on Series F preferred stock | — | — | — | 22 | — | — | 22 | ||||||||||||||||
Stock-based compensation | — | — | (1,541) | 3,275 | 9,878 | — | 11,612 | ||||||||||||||||
Exercise of stock options | — | — | (5,762) | — | 7,935 | — | 2,173 | ||||||||||||||||
Stock units conversion to shares | — | — | (566) | (6,484) | 7,050 | — | — | ||||||||||||||||
Common shares acquired from stock compensation plan activity | — | — | — | — | (13,779) | — | (13,779) | ||||||||||||||||
Common stock repurchase program | — | — | — | — | (12,158) | — | (12,158) | ||||||||||||||||
Series F preferred stock issuance adjustment | (19) | — | — | — | — | — | (19) | ||||||||||||||||
Balance at December 31, 2018 | 145,037 | 937 | 1,114,394 | 1,828,303 | (71,504) | (130,652) | 2,886,515 | ||||||||||||||||
Adoption of ASU No. 2016-02 | — | — | — | (513) | — | — | (513) | ||||||||||||||||
Net income | — | — | — | 382,723 | — | — | 382,723 | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 94,580 | 94,580 | ||||||||||||||||
Common stock dividends/equivalents $1.53 per share
|
— | — | — | (141,286) | — | — | (141,286) | ||||||||||||||||
Series F preferred stock dividends $1,312.50 per share
|
— | — | — | (7,875) | — | — | (7,875) | ||||||||||||||||
Stock-based compensation | — | — | 885 | — | 11,741 | — | 12,626 | ||||||||||||||||
Exercise of stock options | — | — | (2,029) | — | 2,648 | — | 619 | ||||||||||||||||
Common shares acquired from stock compensation plan activity | — | — | — | — | (6,616) | — | (6,616) | ||||||||||||||||
Common stock repurchase program | — | — | — | — | (13,003) | — | (13,003) | ||||||||||||||||
Balance at December 31, 2019 | 145,037 | 937 | 1,113,250 | 2,061,352 | (76,734) | (36,072) | 3,207,770 | ||||||||||||||||
Adoption of ASU No. 2016-13 | — | — | — | (51,213) | — | — | (51,213) | ||||||||||||||||
Net income | — | — | — | 220,621 | — | — | 220,621 | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 78,328 | 78,328 | ||||||||||||||||
Common stock dividends/equivalents $1.60 per share
|
— | — | — | (145,363) | — | — | (145,363) | ||||||||||||||||
Series F preferred stock dividends $1,312.50 per share
|
— | — | — | (7,875) | — | — | (7,875) | ||||||||||||||||
Stock-based compensation | — | — | (3,524) | — | 15,703 | — | 12,179 | ||||||||||||||||
Exercise of stock options | — | — | (194) | — | 434 | — | 240 | ||||||||||||||||
Common shares acquired from stock compensation plan activity | — | — | — | — | (3,506) | — | (3,506) | ||||||||||||||||
Common stock repurchase program | — | — | — | — | (76,556) | — | (76,556) | ||||||||||||||||
Balance at December 31, 2020 | $ | 145,037 | $ | 937 | $ | 1,109,532 | $ | 2,077,522 | $ | (140,659) | $ | 42,256 | $ | 3,234,625 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Operating Activities: | |||||||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Provision for credit losses | 137,750 | 37,800 | 42,000 | ||||||||||||||
Deferred tax (benefit) expense | (31,236) | 927 | 9,472 | ||||||||||||||
Depreciation and amortization | 36,616 | 37,507 | 38,750 | ||||||||||||||
Amortization of premiums/discounts, net | 75,929 | 49,731 | 50,984 | ||||||||||||||
Stock-based compensation | 12,179 | 12,626 | 11,612 | ||||||||||||||
Gain on sale, net of write-down, on foreclosed and repossessed assets | (1,938) | (729) | (709) | ||||||||||||||
Loss on sale/write-down on premises and equipment | 1,105 | 1,340 | 346 | ||||||||||||||
Gain on the sale of investment securities, net | (8) | (29) | — | ||||||||||||||
Increase in cash surrender value of life insurance policies | (14,561) | (14,612) | (14,614) | ||||||||||||||
Gain from life insurance policies | (1,219) | (4,933) | (2,553) | ||||||||||||||
Mortgage banking activities | (18,295) | (6,115) | (4,424) | ||||||||||||||
Proceeds from sale of loans held for sale | 486,341 | 216,239 | 188,025 | ||||||||||||||
Originations of loans held for sale | (449,803) | (240,305) | (171,883) | ||||||||||||||
Net change in right-of-use lease assets | 27,868 | 2,479 | — | ||||||||||||||
Net increase in derivative contract assets net of liabilities | (118,336) | (123,752) | (4,615) | ||||||||||||||
Gain on sale of banking center deposits | — | — | (4,596) | ||||||||||||||
Net decrease (increase) in accrued interest receivable and other assets | 25,657 | (23,790) | (739) | ||||||||||||||
Net decrease in accrued expenses and other liabilities | (8,121) | (23,257) | (28,066) | ||||||||||||||
Net cash provided by operating activities | 380,549 | 303,850 | 469,408 | ||||||||||||||
Investing Activities: | |||||||||||||||||
Purchases of available-for-sale investment securities | (990,904) | (549,541) | (873,108) | ||||||||||||||
Proceeds from available-for-sale investment securities maturities/principal payments | 627,577 | 556,283 | 538,747 | ||||||||||||||
Proceeds from sales of available-for-sale investment securities | 8,963 | 70,087 | — | ||||||||||||||
Purchases of held-to-maturity investment securities | (1,297,535) | (1,571,604) | (393,693) | ||||||||||||||
Proceeds from held-to-maturity investment securities maturities/principal payments | 983,864 | 573,703 | 524,862 | ||||||||||||||
Net proceeds from sale of Federal Home Loan Bank/Federal Reserve Bank stock | 71,452 | 240 | 2,280 | ||||||||||||||
Alternative investments capital call, net | (12,244) | (6,065) | (1,215) | ||||||||||||||
Net increase in loans | (1,681,947) | (1,642,501) | (990,014) | ||||||||||||||
Proceeds from loans not originated for sale | 9,197 | 20,931 | 1,687 | ||||||||||||||
Proceeds from life insurance policies | 1,885 | 12,866 | 4,271 | ||||||||||||||
Proceeds from the sale of foreclosed properties and repossessed assets | 11,497 | 11,562 | 8,011 | ||||||||||||||
Proceeds from the sale of premises and equipment | 866 | — | 567 | ||||||||||||||
Additions to premises and equipment | (21,280) | (25,717) | (32,958) | ||||||||||||||
Divestiture of banking center deposits, net cash paid | — | — | (107,361) | ||||||||||||||
Net cash used for investing activities | (2,288,609) | (2,549,756) | (1,317,924) | ||||||||||||||
See accompanying Notes to Consolidated Financial Statements.
|
WEBSTER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, continued |
|||||||||||||||||
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Financing Activities: | |||||||||||||||||
Net increase in deposits | 4,006,319 | 1,465,377 | 979,519 | ||||||||||||||
Proceeds from Federal Home Loan Bank advances | 3,850,000 | 9,200,000 | 8,960,000 | ||||||||||||||
Repayments of Federal Home Loan Bank advances | (5,665,312) | (9,078,332) | (8,810,297) | ||||||||||||||
Net (decrease) increase in securities sold under agreements to repurchase and other borrowings | (45,076) | 458,557 | (61,395) | ||||||||||||||
Issuance of long-term debt | — | 300,000 | — | ||||||||||||||
Debt issuance costs | — | (3,642) | — | ||||||||||||||
Dividends paid to common shareholders | (144,965) | (140,783) | (114,959) | ||||||||||||||
Dividends paid to preferred shareholders | (7,875) | (7,875) | (7,875) | ||||||||||||||
Exercise of stock options | 240 | 619 | 2,173 | ||||||||||||||
Common stock repurchase program | (76,556) | (13,003) | (12,158) | ||||||||||||||
Common shares acquired related to stock compensation plan activity | (3,506) | (6,616) | (13,779) | ||||||||||||||
Net cash provided by financing activities | 1,913,269 | 2,174,302 | 921,229 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,209 | (71,604) | 72,713 | ||||||||||||||
Cash and cash equivalents at beginning of period | 257,895 | 329,499 | 256,786 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 263,104 | $ | 257,895 | $ | 329,499 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Interest paid | $ | 118,123 | $ | 197,200 | $ | 144,726 | |||||||||||
Income taxes paid | 94,072 | 110,057 | 60,925 | ||||||||||||||
Noncash investing and financing activities: | |||||||||||||||||
Transfer of loans and leases to foreclosed properties and repossessed assets | $ | 5,394 | $ | 10,440 | $ | 8,105 | |||||||||||
Transfer of loans from portfolio to loans held for sale | 8,578 | 16,609 | 5,443 | ||||||||||||||
Deposits assumed | 4,657 | — | — | ||||||||||||||
Right-of-use lease assets recorded upon ASU adoption | — | 157,234 | — | ||||||||||||||
Lessee operating lease liabilities recorded upon ASU adoption | — | 178,802 | — |
Minimum | Maximum | |||||||||||||
Building and Improvements | 5 | - | 40 | years | ||||||||||
Leasehold improvements | 5 | - | 20 | years (or lease term, if shorter) | ||||||||||
Fixtures and equipment | 5 | - | 10 | years | ||||||||||
Data processing and software | 3 | - | 7 | years |
December 31, 2019 | January 1, 2020 | ||||||||||
(In thousands) | Pre-ASC 326 Adoption | Impact of Adoption | Reported Under ASC 326 | ||||||||
Assets: | |||||||||||
Allowance for credit losses on investment securities held-to-maturity | $ | — | $ | (397) | $ | (397) | |||||
Allowance for credit losses on loans and leases (1)
|
(209,096) | (57,568) | (266,664) | ||||||||
Deferred tax assets, net | 61,975 | 15,891 | 77,866 | ||||||||
Liabilities and shareholders' equity: | |||||||||||
Accrued expenses and other liabilities | 153,161 | 9,139 | 162,300 | ||||||||
Retained earnings | 2,061,352 | (51,213) | 2,010,139 |
(In thousands) | Severance | ROU Asset | Other | Total | |||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Charged to earnings | 17,860 | 13,000 | 11,797 | 42,657 | |||||||||||||||||||
Charges against assets | — | (13,000) | (1,009) | (14,009) | |||||||||||||||||||
Cash payments | (185) | — | (8,668) | (8,853) | |||||||||||||||||||
Ending balance | $ | 17,675 | $ | — | $ | 2,120 | $ | 19,795 |
At December 31, 2020 | |||||||||||||||||||||||
(In thousands) |
Amortized
Cost (1)
|
Unrealized
Gains |
Unrealized
Losses |
Fair Value |
Allowance (2)
|
Net Carrying Value | |||||||||||||||||
Agency CMO | $ | 91,622 | $ | 1,785 | $ | (241) | $ | 93,166 | $ | — | $ | 91,622 | |||||||||||
Agency MBS | 2,419,751 | 137,863 | (84) | 2,557,530 | — | 2,419,751 | |||||||||||||||||
Agency CMBS | 2,101,227 | 60,484 | (2,213) | 2,159,498 | — | 2,101,227 | |||||||||||||||||
Municipal bonds and notes | 739,507 | 60,371 | (3) | 799,875 | 299 | 739,208 | |||||||||||||||||
CMBS | 216,081 | 9,214 | — | 225,295 | — | 216,081 | |||||||||||||||||
Held-to-maturity securities | $ | 5,568,188 | $ | 269,717 | $ | (2,541) | $ | 5,835,364 | $ | 299 | $ | 5,567,889 | |||||||||||
At December 31, 2019 | |||||||||||||||||||||||
(In thousands) |
Amortized
Cost (1)
|
Unrealized
Gains |
Unrealized
Losses |
Fair Value |
Allowance (2)
|
Net Carrying Value | |||||||||||||||||
Agency CMO | $ | 167,443 | $ | 1,123 | $ | (1,200) | $ | 167,366 | $ | — | $ | 167,443 | |||||||||||
Agency MBS | 2,957,900 | 60,602 | (8,733) | 3,009,769 | — | 2,957,900 | |||||||||||||||||
Agency CMBS | 1,172,491 | 6,444 | (5,615) | 1,173,320 | — | 1,172,491 | |||||||||||||||||
Municipal bonds and notes | 740,431 | 32,709 | (21) | 773,119 | — | 740,431 | |||||||||||||||||
CMBS | 255,653 | 2,278 | (852) | 257,079 | — | 255,653 | |||||||||||||||||
Held-to-maturity securities | $ | 5,293,918 | $ | 103,156 | $ | (16,421) | $ | 5,380,653 | $ | — | $ | 5,293,918 |
Year ended December 31, 2020 | |||||||||||
(In thousands) | Municipal bonds and notes | ||||||||||
Beginning balance | $ | — | |||||||||
Adoption of ASU No. 2016-13 (CECL) | 397 | ||||||||||
Recovery of credit losses | (98) | ||||||||||
Ending balance | $ | 299 |
Investment Grade | ||||||||||||||||||||||||||||||||
(In thousands) | Aaa | Aa1 | Aa2 | Aa3 | A1 | A2 | A3 | Baa2 | Not Rated | |||||||||||||||||||||||
Agency CMOs | $ | — | $ | 91,622 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Agency MBS | — | 2,419,751 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Agency CMBS | — | 2,101,227 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Municipal bonds and notes | 209,376 | 165,056 | 201,081 | 115,619 | 33,264 | 8,475 | 2,066 | 190 | 4,380 | |||||||||||||||||||||||
CMBS | 216,081 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total held-to-maturity | $ | 425,457 | $ | 4,777,656 | $ | 201,081 | $ | 115,619 | $ | 33,264 | $ | 8,475 | $ | 2,066 | $ | 190 | $ | 4,380 | ||||||||||||||
At December 31, 2020 | |||||||||||
(In thousands) |
Amortized
Cost |
Fair
Value |
|||||||||
Due in one year or less | $ | 680 | $ | 685 | |||||||
Due after one year through five years | 4,458 | 4,711 | |||||||||
Due after five through ten years | 278,974 | 294,528 | |||||||||
Due after ten years | 5,284,076 | 5,535,440 | |||||||||
Total held-to-maturity debt securities | $ | 5,568,188 | $ | 5,835,364 |
At December 31, 2020 | ||||||||||||||
(In thousands) |
Amortized
Cost (1)
|
Unrealized
Gains |
Unrealized
Losses |
Fair Value (2)
|
||||||||||
Agency CMO | $ | 148,711 | $ | 6,000 | $ | (98) | $ | 154,613 | ||||||
Agency MBS | 1,389,100 | 68,598 | (289) | 1,457,409 | ||||||||||
Agency CMBS | 1,092,430 | 26,317 | (1,514) | 1,117,233 | ||||||||||
CMBS | 512,759 | 1,082 | (5,823) | 508,018 | ||||||||||
CLO | 76,693 | — | (310) | 76,383 | ||||||||||
Corporate debt | 14,557 | — | (1,437) | 13,120 | ||||||||||
Available-for-sale securities | $ | 3,234,250 | $ | 101,997 | $ | (9,471) | $ | 3,326,776 | ||||||
At December 31, 2019 | ||||||||||||||
Amortized
Cost (1)
|
Unrealized
Gains |
Unrealized
Losses |
Fair Value (2)
|
|||||||||||
Agency CMO | $ | 184,500 | $ | 2,218 | $ | (917) | $ | 185,801 | ||||||
Agency MBS | 1,580,743 | 35,456 | (4,035) | 1,612,164 | ||||||||||
Agency CMBS | 587,974 | 513 | (6,935) | 581,552 | ||||||||||
CMBS | 432,085 | 38 | (252) | 431,871 | ||||||||||
CLO | 92,628 | 45 | (468) | 92,205 | ||||||||||
Corporate debt | 23,485 | — | (1,245) | 22,240 | ||||||||||
Available-for-sale securities | $ | 2,901,415 | $ | 38,270 | $ | (13,852) | $ | 2,925,833 |
At December 31, 2020 | |||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||
Agency CMO | $ | 13,137 | $ | (49) | $ | 5,944 | $ | (49) | 5 | $ | 19,081 | $ | (98) | ||||||||||||||||
Agency MBS | 33,742 | (219) | 4,561 | (70) | 30 | 38,303 | (289) | ||||||||||||||||||||||
Agency CMBS | 376,330 | (1,514) | — | — | 8 | 376,330 | (1,514) | ||||||||||||||||||||||
CMBS | 409,591 | (5,486) | 23,167 | (337) | 38 | 432,758 | (5,823) | ||||||||||||||||||||||
CLO | 57,728 | (265) | 18,655 | (45) | 4 | 76,383 | (310) | ||||||||||||||||||||||
Corporate debt | 4,100 | (166) | 9,020 | (1,271) | 3 | 13,120 | (1,437) | ||||||||||||||||||||||
Available-for-sale in unrealized loss position | $ | 894,628 | $ | (7,699) | $ | 61,347 | $ | (1,772) | 88 | $ | 955,975 | $ | (9,471) |
At December 31, 2019 | |||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||
Agency CMO | $ | 36,447 | $ | (352) | $ | 32,288 | $ | (565) | 9 | $ | 68,735 | $ | (917) | ||||||||||||||||
Agency MBS | 41,408 | (193) | 299,674 | (3,842) | 79 | 341,082 | (4,035) | ||||||||||||||||||||||
Agency CMBS | 174,406 | (1,137) | 357,717 | (5,798) | 34 | 532,123 | (6,935) | ||||||||||||||||||||||
CMBS | 355,260 | (232) | 7,480 | (20) | 29 | 362,740 | (252) | ||||||||||||||||||||||
CLO | — | — | 43,232 | (468) | 2 | 43,232 | (468) | ||||||||||||||||||||||
Corporate debt | — | — | 22,240 | (1,245) | 4 | 22,240 | (1,245) | ||||||||||||||||||||||
Available-for-sale in unrealized loss position | $ | 607,521 | $ | (1,914) | $ | 762,631 | $ | (11,938) | 157 | $ | 1,370,152 | $ | (13,852) |
At December 31, 2020 | |||||||||||
(In thousands) |
Amortized
Cost |
Fair
Value |
|||||||||
Due in one year or less | $ | — | $ | — | |||||||
Due after one year through five years | 1,448 | 1,489 | |||||||||
Due after five through ten years | 252,601 | 248,958 | |||||||||
Due after ten years | 2,980,201 | 3,076,329 | |||||||||
Total available-for-sale debt securities | $ | 3,234,250 | $ | 3,326,776 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Proceeds from sales | $ | 8,963 | $ | 70,087 | $ | — | |||||||||||
Gross realized gains on sales | $ | 8 | $ | 773 | $ | — | |||||||||||
Gross realized losses on sales | — | 744 | — | ||||||||||||||
Gain on sale of investment securities, net | $ | 8 | $ | 29 | $ | — |
At December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Commercial non-mortgage | $ | 7,085,076 | $ | 5,296,611 | |||||||
Asset-based | 890,598 | 1,046,886 | |||||||||
Commercial real estate | 6,322,637 | 5,949,339 | |||||||||
Equipment financing | 602,224 | 537,341 | |||||||||
Commercial portfolio | 14,900,535 | 12,830,177 | |||||||||
Residential | 4,782,016 | 4,972,685 | |||||||||
Home equity | 1,802,865 | 2,014,544 | |||||||||
Other consumer | 155,799 | 219,580 | |||||||||
Consumer portfolio | 6,740,680 | 7,206,809 | |||||||||
Loans and leases (1) (2) (3)
|
$ | 21,641,215 | $ | 20,036,986 |
At December 31, 2020 | |||||||||||||||||||||||
(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 |
||||||||||||||||
Commercial non-mortgage | $ | 612 | $ | 903 | $ | 445 | $ | 64,073 | $ | 66,033 | $ | 7,019,043 | $ | 7,085,076 | |||||||||
Asset-based | 1,174 | — | — | 2,594 | 3,768 | 886,830 | 890,598 | ||||||||||||||||
Commercial real estate | 2,400 | 619 | — | 21,231 | 24,250 | 6,298,387 | 6,322,637 | ||||||||||||||||
Equipment financing | 5,107 | 2,308 | — | 7,299 | 14,714 | 587,510 | 602,224 | ||||||||||||||||
Commercial portfolio | 9,293 | 3,830 | 445 | 95,197 | 108,765 | 14,791,770 | 14,900,535 | ||||||||||||||||
Residential | 4,334 | 6,330 | — | 41,081 | 51,745 | 4,730,271 | 4,782,016 | ||||||||||||||||
Home equity | 5,500 | 1,771 | — | 31,030 | 38,301 | 1,764,564 | 1,802,865 | ||||||||||||||||
Other consumer | 878 | 601 | — | 652 | 2,131 | 153,668 | 155,799 | ||||||||||||||||
Consumer portfolio | 10,712 | 8,702 | — | 72,763 | 92,177 | 6,648,503 | 6,740,680 | ||||||||||||||||
Total | $ | 20,005 | $ | 12,532 | $ | 445 | $ | 167,960 | $ | 200,942 | $ | 21,440,273 | $ | 21,641,215 |
At December 31, 2019 | |||||||||||||||||||||||
(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 |
||||||||||||||||
Commercial non-mortgage | $ | 2,094 | $ | 617 | $ | — | $ | 59,369 | $ | 62,080 | $ | 5,234,531 | $ | 5,296,611 | |||||||||
Asset-based | — | — | — | 139 | 139 | 1,046,747 | 1,046,886 | ||||||||||||||||
Commercial real estate | 1,256 | 454 | — | 11,563 | 13,273 | 5,936,066 | 5,949,339 | ||||||||||||||||
Equipment financing | 5,493 | 292 | — | 5,433 | 11,218 | 526,123 | 537,341 | ||||||||||||||||
Commercial portfolio | 8,843 | 1,363 | — | 76,504 | 86,710 | 12,743,467 | 12,830,177 | ||||||||||||||||
Residential | 7,166 | 6,441 | — | 43,193 | 56,800 | 4,915,885 | 4,972,685 | ||||||||||||||||
Home equity | 8,267 | 5,551 | — | 30,170 | 43,988 | 1,970,556 | 2,014,544 | ||||||||||||||||
Other consumer | 4,269 | 807 | — | 1,192 | 6,268 | 213,312 | 219,580 | ||||||||||||||||
Consumer portfolio | 19,702 | 12,799 | — | 74,555 | 107,056 | 7,099,753 | 7,206,809 | ||||||||||||||||
Total | $ | 28,545 | $ | 14,162 | $ | — | $ | 151,059 | $ | 193,766 | $ | 19,843,220 | $ | 20,036,986 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(In thousands) | Nonaccrual | Nonaccrual With No Allowance | Nonaccrual | Nonaccrual With No Allowance | |||||||||||||
Commercial non-mortgage | $ | 64,073 | $ | 16,985 | $ | 59,369 | $ | 13,584 | |||||||||
Asset-based | 2,594 | — | 139 | — | |||||||||||||
Commercial real estate | 21,231 | 15,529 | 11,563 | 4,717 | |||||||||||||
Equipment financing | 7,299 | 2,983 | 5,433 | 2,159 | |||||||||||||
Commercial portfolio | 95,197 | 35,497 | 76,504 | 20,460 | |||||||||||||
Residential | 41,081 | 29,843 | 43,193 | 19,271 | |||||||||||||
Home equity | 31,030 | 24,091 | 30,170 | 15,195 | |||||||||||||
Other consumer | 652 | 2 | 1,192 | — | |||||||||||||
Consumer portfolio | 72,763 | 53,936 | 74,555 | 34,466 | |||||||||||||
Total | $ | 167,960 | $ | 89,433 | $ | 151,059 | $ | 54,926 |
At or for the Years ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(In thousands) | Commercial Portfolio | Consumer Portfolio | Total | Commercial Portfolio | Consumer Portfolio | Total | Commercial Portfolio | Consumer Portfolio | Total | ||||||||||||||||||||||||||
ACL on loans and leases: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 161,669 | $ | 47,427 | $ | 209,096 | $ | 164,073 | $ | 48,280 | $ | 212,353 | $ | 144,746 | $ | 55,248 | $ | 199,994 | |||||||||||||||||
Adoption of ASU No. 2016-13 (CECL)
|
34,024 | 23,544 | 57,568 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Provision charged to expense | 156,336 | (18,488) | 137,848 | 29,174 | 8,626 | 37,800 | 35,356 | 6,644 | 42,000 | ||||||||||||||||||||||||||
Charge-offs | (42,925) | (12,408) | (55,333) | (33,327) | (19,153) | (52,480) | (20,704) | (22,683) | (43,387) | ||||||||||||||||||||||||||
Recoveries | 3,140 | 7,112 | 10,252 | 1,749 | 9,674 | 11,423 | 4,675 | 9,071 | 13,746 | ||||||||||||||||||||||||||
Ending balance | $ | 312,244 | $ | 47,187 | $ | 359,431 | $ | 161,669 | $ | 47,427 | $ | 209,096 | $ | 164,073 | $ | 48,280 | $ | 212,353 | |||||||||||||||||
Individually evaluated for impairment | 11,687 | 4,450 | 16,137 | 9,428 | 4,821 | 14,249 | 9,681 | 5,669 | 15,350 | ||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 300,557 | $ | 42,737 | $ | 343,294 | $ | 152,241 | $ | 42,606 | $ | 194,847 | $ | 154,392 | $ | 42,611 | $ | 197,003 | |||||||||||||||||
Loan and lease balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 163,655 | $ | 145,767 | $ | 309,422 | $ | 131,123 | $ | 125,287 | $ | 256,410 | $ | 116,655 | $ | 142,675 | $ | 259,330 | |||||||||||||||||
Collectively evaluated for impairment | 14,736,880 | 6,594,913 | 21,331,793 | 12,699,054 | 7,081,522 | 19,780,576 | 11,535,493 | 6,670,666 | 18,206,159 | ||||||||||||||||||||||||||
Loans and leases | $ | 14,900,535 | $ | 6,740,680 | $ | 21,641,215 | $ | 12,830,177 | $ | 7,206,809 | $ | 20,036,986 | $ | 11,652,148 | $ | 6,813,341 | $ | 18,465,489 |
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
Commercial non-mortgage | ||||||||||||||||||||||||||
Pass | $ | 2,771,373 | $ | 1,052,080 | $ | 907,110 | $ | 481,321 | $ | 231,280 | $ | 218,001 | $ | 936,592 | $ | 6,597,757 | ||||||||||
Special mention | 32,535 | 33,969 | 62,034 | 435 | 8,357 | 13,757 | 38,496 | 189,583 | ||||||||||||||||||
Substandard | 54,716 | 51,798 | 66,324 | 36,159 | 15,535 | 23,957 | 49,084 | 297,573 | ||||||||||||||||||
Doubtful | — | — | — | 163 | — | — | — | 163 | ||||||||||||||||||
Commercial non-mortgage | 2,858,624 | 1,137,847 | 1,035,468 | 518,078 | 255,172 | 255,715 | 1,024,172 | 7,085,076 | ||||||||||||||||||
Asset-based | ||||||||||||||||||||||||||
Pass | 26,344 | 15,960 | 23,123 | 11,333 | 10,963 | 16,484 | 741,336 | 845,543 | ||||||||||||||||||
Special mention | — | — | 775 | — | — | — | 41,687 | 42,462 | ||||||||||||||||||
Substandard | — | 2,504 | — | — | — | — | 89 | 2,593 | ||||||||||||||||||
Asset-based | 26,344 | 18,464 | 23,898 | 11,333 | 10,963 | 16,484 | 783,112 | 890,598 | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Pass | 965,582 | 1,461,201 | 1,242,322 | 527,931 | 554,630 | 1,165,331 | 28,113 | 5,945,110 | ||||||||||||||||||
Special mention | 27 | 10,385 | 70,704 | 37,539 | 35,617 | 69,832 | — | 224,104 | ||||||||||||||||||
Substandard | 817 | 1,132 | 21,923 | 73,621 | 2,962 | 52,968 | — | 153,423 | ||||||||||||||||||
Commercial real estate | 966,426 | 1,472,718 | 1,334,949 | 639,091 | 593,209 | 1,288,131 | 28,113 | 6,322,637 | ||||||||||||||||||
Equipment financing | ||||||||||||||||||||||||||
Pass | 249,370 | 135,263 | 68,092 | 26,433 | 43,469 | 22,879 | — | 545,506 | ||||||||||||||||||
Special mention | 7,934 | 11,043 | 6,981 | 1,220 | 1,577 | 788 | — | 29,543 | ||||||||||||||||||
Substandard | 7,483 | 6,169 | 5,749 | 2,460 | 4,743 | 571 | — | 27,175 | ||||||||||||||||||
Equipment financing | 264,787 | 152,475 | 80,822 | 30,113 | 49,789 | 24,238 | — | 602,224 | ||||||||||||||||||
Commercial portfolio | $ | 4,116,181 | $ | 2,781,504 | $ | 2,475,137 | $ | 1,198,615 | $ | 909,133 | $ | 1,584,568 | $ | 1,835,397 | $ | 14,900,535 |
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
Residential | ||||||||||||||||||||||||||
800+ | $ | 360,336 | $ | 283,755 | $ | 61,048 | $ | 178,849 | $ | 268,044 | $ | 805,537 | $ | — | $ | 1,957,569 | ||||||||||
740-799 | 654,973 | 288,173 | 58,249 | 133,416 | 176,286 | 492,720 | — | 1,803,817 | ||||||||||||||||||
670-739 | 199,329 | 118,620 | 39,125 | 75,375 | 76,666 | 248,268 | — | 757,383 | ||||||||||||||||||
580-669 | 17,151 | 19,389 | 8,884 | 11,843 | 12,225 | 96,333 | — | 165,825 | ||||||||||||||||||
579 and below | — | 36,498 | 673 | 3,278 | 3,179 | 53,794 | — | 97,422 | ||||||||||||||||||
Residential | 1,231,789 | 746,435 | 167,979 | 402,761 | 536,400 | 1,696,652 | — | 4,782,016 | ||||||||||||||||||
Home equity | ||||||||||||||||||||||||||
800+ | 30,604 | 16,567 | 25,205 | 14,439 | 17,192 | 59,956 | 542,600 | 706,563 | ||||||||||||||||||
740-799 | 34,797 | 13,565 | 19,715 | 11,073 | 12,839 | 43,802 | 434,271 | 570,062 | ||||||||||||||||||
670-739 | 13,753 | 8,855 | 10,761 | 10,206 | 7,318 | 44,025 | 275,691 | 370,609 | ||||||||||||||||||
580-669 | 1,708 | 2,172 | 2,660 | 2,234 | 2,316 | 16,680 | 86,126 | 113,896 | ||||||||||||||||||
579 and below | 129 | 919 | 880 | 1,070 | 1,073 | 7,163 | 30,501 | 41,735 | ||||||||||||||||||
Home equity | 80,991 | 42,078 | 59,221 | 39,022 | 40,738 | 171,626 | 1,369,189 | 1,802,865 | ||||||||||||||||||
Other consumer | ||||||||||||||||||||||||||
800+ | 2,827 | 5,725 | 2,610 | 658 | 115 | 190 | 7,171 | 19,296 | ||||||||||||||||||
740-799 | 12,317 | 21,036 | 8,925 | 1,493 | 457 | 263 | 5,119 | 49,610 | ||||||||||||||||||
670-739 | 14,761 | 31,952 | 11,843 | 2,284 | 665 | 228 | 8,403 | 70,136 | ||||||||||||||||||
580-669 | 2,344 | 5,419 | 2,360 | 793 | 194 | 124 | 1,570 | 12,804 | ||||||||||||||||||
579 and below | 608 | 982 | 500 | 183 | 37 | 215 | 1,428 | 3,953 | ||||||||||||||||||
Other consumer | 32,857 | 65,114 | 26,238 | 5,411 | 1,468 | 1,020 | 23,691 | 155,799 | ||||||||||||||||||
Consumer portfolio | 1,345,637 | 853,627 | 253,438 | 447,194 | 578,606 | 1,869,298 | 1,392,880 | 6,740,680 | ||||||||||||||||||
Commercial portfolio | 4,116,181 | 2,781,504 | 2,475,137 | 1,198,615 | 909,133 | 1,584,568 | 1,835,397 | 14,900,535 | ||||||||||||||||||
Loans and leases | $ | 5,461,818 | $ | 3,635,131 | $ | 2,728,575 | $ | 1,645,809 | $ | 1,487,739 | $ | 3,453,866 | $ | 3,228,277 | $ | 21,641,215 |
At December 31, 2019 | |||||||||||||||||
(In thousands) | Commercial | Commercial Real Estate | Equipment Financing | ||||||||||||||
(1) - (6) Pass | $ | 5,985,338 | $ | 5,860,981 | $ | 528,561 | |||||||||||
(7) Special Mention | 94,809 | 26,978 | 808 | ||||||||||||||
(8) Substandard | 259,490 | 61,380 | 7,972 | ||||||||||||||
(9) Doubtful | 3,860 | — | — | ||||||||||||||
Total | $ | 6,343,497 | $ | 5,949,339 | $ | 537,341 |
At December 31, 2020 | |||||||||||||||||
(In thousands) |
Unpaid
Principal Balance |
Amortized Cost | Amortized Cost No Allowance | Amortized Cost With Allowance |
Related
Allowance |
||||||||||||
Commercial non-mortgage | $ | 172,069 | $ | 119,884 | $ | 55,742 | $ | 64,142 | $ | 9,665 | |||||||
Asset-based | 2,989 | 2,594 | — | 2,594 | 50 | ||||||||||||
Commercial real estate | 37,177 | 33,879 | 25,931 | 7,948 | 1,610 | ||||||||||||
Equipment financing | 7,770 | 7,298 | 2,983 | 4,315 | 362 | ||||||||||||
Residential | 108,077 | 98,164 | 58,915 | 39,249 | 3,357 | ||||||||||||
Home equity | 109,156 | 46,950 | 34,335 | 12,615 | 988 | ||||||||||||
Other consumer | 2,381 | 653 | 2 | 651 | 105 | ||||||||||||
Total | $ | 439,619 | $ | 309,422 | $ | 177,908 | $ | 131,514 | $ | 16,137 |
At December 31, 2019 | |||||||||||||||||
(In thousands) |
Unpaid
Principal Balance |
Amortized Cost |
Amortized Cost
No Allowance |
Amortized Cost
With Allowance |
Related
Allowance |
||||||||||||
Commercial non-mortgage | $ | 140,096 | $ | 102,254 | $ | 29,739 | $ | 72,515 | $ | 7,862 | |||||||
Asset based | 465 | 139 | — | 139 | 5 | ||||||||||||
Commercial real estate | 29,292 | 23,297 | 14,818 | 8,479 | 1,143 | ||||||||||||
Equipment financing | 5,591 | 5,433 | 2,159 | 3,274 | 418 | ||||||||||||
Residential | 98,790 | 90,096 | 56,231 | 33,865 | 3,618 | ||||||||||||
Home equity | 38,503 | 35,191 | 27,672 | 7,519 | 1,203 | ||||||||||||
Other consumer | — | — | — | — | — | ||||||||||||
Total | $ | 312,737 | $ | 256,410 | $ | 130,619 | $ | 125,791 | $ | 14,249 |
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(In thousands) |
Average
Amortized Cost |
Accrued
Interest Income |
Cash Basis Interest Income |
Average
Amortized Cost |
Accrued
Interest Income |
Cash Basis Interest Income |
Average
Amortized Cost |
Accrued
Interest Income |
Cash Basis Interest Income | ||||||||||||||||||||||||||
Commercial non-mortgage | $ | 111,069 | $ | 3,836 | $ | — | $ | 100,771 | $ | 3,241 | $ | — | $ | 85,585 | $ | 3,064 | $ | — | |||||||||||||||||
Asset based | 1,367 | — | — | 182 | — | — | 407 | — | — | ||||||||||||||||||||||||||
Commercial real estate | 28,588 | 699 | — | 17,062 | 385 | — | 11,027 | 198 | — | ||||||||||||||||||||||||||
Equipment financing | 6,366 | — | — | 5,874 | — | — | 4,820 | 112 | — | ||||||||||||||||||||||||||
Residential | 94,130 | 3,484 | 1,442 | 96,814 | 3,502 | 1,078 | 108,913 | 3,781 | 1,106 | ||||||||||||||||||||||||||
Home equity | 41,070 | 1,315 | 1,826 | 37,167 | 1,045 | 981 | 42,290 | 1,158 | 980 | ||||||||||||||||||||||||||
Other consumer | 327 | 32 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 282,917 | $ | 9,366 | $ | 3,268 | $ | 257,870 | $ | 8,173 | $ | 2,059 | $ | 253,042 | $ | 8,313 | $ | 2,086 |
At December 31, 2020 | At December 31, 2019 | ||||||||||||||||||||||
(In thousands) | Collateral Dependent | Not Considered Collateral Dependent | Total | Collateral Dependent | Not Considered Collateral Dependent | Total | |||||||||||||||||
Commercial non-mortgage | $ | 11,074 | $ | 108,810 | $ | 119,884 | $ | 10,682 | $ | 91,572 | $ | 102,254 | |||||||||||
Asset-based | 2,504 | 90 | 2,594 | — | 139 | 139 | |||||||||||||||||
Commercial real estate | 28,482 | 5,397 | 33,879 | 14,097 | 9,200 | 23,297 | |||||||||||||||||
Equipment financing | — | 7,298 | 7,298 | — | 5,433 | 5,433 | |||||||||||||||||
Residential | 33,980 | 64,184 | 98,164 | 17,635 | 72,461 | 90,096 | |||||||||||||||||
Home equity | 26,796 | 20,154 | 46,950 | 17,136 | 18,055 | 35,191 | |||||||||||||||||
Other consumer | — | 653 | 653 | — | — | — | |||||||||||||||||
Total amortized cost of CDA | $ | 102,836 | $ | 206,586 | $ | 309,422 | $ | 59,550 | $ | 196,860 | $ | 256,410 |
At December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | |||||||||
Accrual status | $ | 140,089 | $ | 136,449 | |||||||
Non-accrual status | 95,338 | 100,989 | |||||||||
Total TDRs | $ | 235,427 | $ | 237,438 | |||||||
Specific reserves for TDRs included in the balance of ACL on loans and leases | $ | 12,728 | $ | 12,956 | |||||||
Additional funds committed to borrowers in TDR status | 12,895 | 4,856 |
Years ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
Commercial portfolio | ||||||||||||||||||||||||||
Extended Maturity | 12 | $ | 1,142 | 18 | $ | 10,769 | 18 | $ | 1,656 | |||||||||||||||||
Adjusted Interest Rate | 1 | 96 | 2 | 112 | — | — | ||||||||||||||||||||
Maturity/Rate Combined | 9 | 984 | 11 | 673 | 18 | 10,327 | ||||||||||||||||||||
Other (2)
|
27 | 40,434 | 31 | 70,002 | 21 | 46,359 | ||||||||||||||||||||
Consumer portfolio | ||||||||||||||||||||||||||
Extended Maturity | 6 | 673 | 13 | 1,926 | 5 | 489 | ||||||||||||||||||||
Maturity/Rate Combined | 15 | 1,467 | 19 | 2,381 | 15 | 1,565 | ||||||||||||||||||||
Other (2)
|
122 | 10,895 | 42 | 2,908 | 66 | 6,385 | ||||||||||||||||||||
Total TDRs | 192 | $ | 55,691 | 136 | $ | 88,771 | 143 | $ | 66,781 |
At December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Pass | $ | 12,462 | $ | 3,952 | |||||||
Special Mention | — | 63 | |||||||||
Substandard | 105,070 | 104,277 | |||||||||
Doubtful | 163 | 3,860 | |||||||||
Total | $ | 117,695 | $ | 112,152 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 508 | $ | 674 | $ | 872 | |||||||||||
Provision (benefit) charged to expense | 141 | 1,865 | (160) | ||||||||||||||
Recoveries, net (settlements charged-off/repurchased loans, net) | 98 | (2,031) | (38) | ||||||||||||||
Ending balance | $ | 747 | $ | 508 | $ | 674 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Proceeds from sale | $ | 486,341 | $ | 216,239 | $ | 188,025 | |||||||||||
Loans sold with servicing rights retained | 464,736 | 199,114 | 166,909 | ||||||||||||||
Net gain on sale | $ | 15,305 | $ | 4,031 | $ | 3,146 | |||||||||||
Ancillary fees | 3,230 | 1,614 | 1,544 | ||||||||||||||
Fair value option adjustment | (240) | 470 | (266) |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 17,484 | $ | 21,215 | $ | 25,139 | |||||||||||
Additions | 4,373 | 3,587 | 4,459 | ||||||||||||||
Amortization | (6,562) | (7,318) | (8,383) | ||||||||||||||
Valuation allowance | (1,873) | — | — | ||||||||||||||
Ending balance | $ | 13,422 | $ | 17,484 | $ | 21,215 |
|
At December 31, | ||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Land | $ | 9,436 | $ | 10,997 | |||||||
Buildings and improvements | 70,195 | 77,892 | |||||||||
Leasehold improvements | 71,332 | 77,346 | |||||||||
Fixtures and equipment | 73,730 | 73,946 | |||||||||
Data processing and software | 270,780 | 263,445 | |||||||||
Property and equipment | 495,473 | 503,626 | |||||||||
Less: Accumulated depreciation and amortization | (396,211) | (388,562) | |||||||||
Property and equipment, net | 99,262 | 115,064 | |||||||||
Leased assets, net | 127,481 | 155,349 | |||||||||
Premises and equipment, net | $ | 226,743 | $ | 270,413 |
Years ended December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Beginning balance | $ | — | $ | 91 | |||||||
Additions | 2,654 | — | |||||||||
Write-downs | — | (91) | |||||||||
Sales | — | — | |||||||||
Ending balance | $ | 2,654 | $ | — |
At December 31, 2020 | |||||||||||
(In thousands) | Operating Leases | Consolidated Balance Sheet Line Item Location | |||||||||
ROU lease assets | $ | 127,481 | Premises and equipment, net | ||||||||
Lease liabilities | 158,280 | Operating lease liabilities |
(In thousands) | At or for the Years ended December 31, | |||||||
2020 | 2019 | |||||||
Lease Cost: | ||||||||
Operating lease costs | $ | 30,339 | $ | 29,908 | ||||
Variable lease costs | 5,577 | 4,889 | ||||||
Sublease income | (557) | (577) | ||||||
Total operating lease cost | $ | 35,359 | $ | 34,220 | ||||
Other Information: | ||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 31,212 | $ | 31,223 | ||||
ROU lease assets obtained in exchange for new operating lease liabilities | 9,211 | 22,948 |
(In thousands) | At December 31, 2020 | |||||||
2021 | $ | 28,142 | ||||||
2022 | 27,069 | |||||||
2023 | 24,335 | |||||||
2024 | 21,321 | |||||||
2025 | 19,332 | |||||||
Thereafter | 62,253 | |||||||
Total operating lease liability payments | 182,452 | |||||||
Less: Present value adjustment | 24,172 | |||||||
Lease liabilities | $ | 158,280 | ||||||
Weighted-average remaining lease term - operating leases, in years | 8.04 | |||||||
Weighted-average discount rate - operating leases | 3.19 | % |
At December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In thousands) |
Gross Carrying
Amount |
Accumulated
Amortization |
Net Carrying
Amount |
Gross Carrying
Amount |
Accumulated
Amortization |
Net Carrying
Amount |
|||||||||||||||||
Other intangible assets: | |||||||||||||||||||||||
HSA Bank - Core deposits | $ | 26,625 | $ | 15,618 | $ | 11,007 | $ | 22,000 | $ | 13,073 | $ | 8,927 | |||||||||||
HSA Bank - Customer relationships | 21,000 | 9,624 | 11,376 | 21,000 | 8,010 | 12,990 | |||||||||||||||||
Total other intangible assets | $ | 47,625 | $ | 25,242 | $ | 22,383 | $ | 43,000 | $ | 21,083 | $ | 21,917 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 73,172 | $ | 84,447 | $ | 58,334 | |||||||||||
State and local | 17,417 | 18,595 | 13,409 | ||||||||||||||
Total current | 90,589 | 103,042 | 71,743 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (23,799) | 811 | 8,508 | ||||||||||||||
State and local | (7,437) | 116 | 964 | ||||||||||||||
Total deferred | (31,236) | 927 | 9,472 | ||||||||||||||
Total federal | 49,373 | 85,258 | 66,842 | ||||||||||||||
Total state and local | 9,980 | 18,711 | 14,373 | ||||||||||||||
Income tax expense | $ | 59,353 | $ | 103,969 | $ | 81,215 |
Years ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Income tax expense at federal statutory rate | $ | 58,795 | 21.0 | % | $ | 102,205 | 21.0 | % | $ | 92,743 | 21.0 | % | ||||||||||||||
Reconciliation to reported income tax expense: | ||||||||||||||||||||||||||
SALT expense, net of federal | 7,884 | 2.8 | 14,782 | 3.0 | 11,354 | 2.6 | ||||||||||||||||||||
Tax-exempt interest income, net | (7,181) | (2.6) | (6,752) | (1.4) | (6,475) | (1.5) | ||||||||||||||||||||
Increase in cash surrender value of life insurance | (3,058) | (1.1) | (3,069) | (0.6) | (3,069) | (0.7) | ||||||||||||||||||||
Tax deficiencies (excess tax benefits), net | 484 | 0.2 | (2,251) | (0.4) | (4,483) | (1.0) | ||||||||||||||||||||
Non-deductible FDIC Deposit insurance premiums | 2,172 | 0.8 | 1,904 | 0.4 | 2,215 | 0.5 | ||||||||||||||||||||
Tax Act impacts, net (1)
|
— | — | — | — | (10,982) | (2.5) | ||||||||||||||||||||
Other, net | 257 | 0.1 | (2,850) | (0.6) | (88) | — | ||||||||||||||||||||
Income tax expense and effective tax rate | $ | 59,353 | 21.2 | % | $ | 103,969 | 21.4 | % | $ | 81,215 | 18.4 | % |
At December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Deferred tax assets: | |||||||||||
Allowance for loan and lease losses | $ | 93,791 | $ | 53,851 | |||||||
Net operating loss and credit carry forwards | 66,840 | 69,827 | |||||||||
Compensation and employee benefit plans | 27,643 | 24,518 | |||||||||
Lease liabilities under operating leases | 41,679 | 45,923 | |||||||||
Deferred loan fees, net | 2,397 | — | |||||||||
Net unrealized loss on derivatives | — | 1,650 | |||||||||
Other | 6,353 | 7,871 | |||||||||
Gross deferred tax assets | 238,703 | 203,640 | |||||||||
Valuation allowance | 37,374 | 38,181 | |||||||||
Total deferred tax assets, net of valuation allowance | $ | 201,329 | $ | 165,459 | |||||||
Deferred tax liabilities: | |||||||||||
Net unrealized gain on securities available for sale | $ | 24,364 | $ | 6,430 | |||||||
Net unrealized gain on derivatives | 7,616 | — | |||||||||
ROU assets under operating leases | 33,569 | 40,908 | |||||||||
Equipment financing leases | 38,511 | 31,332 | |||||||||
Premises and equipment | 6,735 | 7,838 | |||||||||
Loan origination costs, net | — | 6,816 | |||||||||
Goodwill and other intangible assets | 5,954 | 6,172 | |||||||||
Other | 3,294 | 3,988 | |||||||||
Gross deferred tax liabilities | 120,043 | 103,484 | |||||||||
Deferred tax assets, net | $ | 81,286 | $ | 61,975 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 4,813 | $ | 2,856 | $ | 3,595 | |||||||||||
Additions as a result of tax positions taken during the current year | 87 | 1,106 | 249 | ||||||||||||||
Additions as a result of tax positions taken during prior years | 572 | 1,744 | 71 | ||||||||||||||
Reductions as a result of tax positions taken during prior years | (694) | (238) | (474) | ||||||||||||||
Reductions relating to settlements with taxing authorities | (130) | (18) | (97) | ||||||||||||||
Reductions as a result of lapse of statute of limitation periods | (396) | (637) | (488) | ||||||||||||||
Ending balance | $ | 4,252 | $ | 4,813 | $ | 2,856 |
At December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Non-interest-bearing: | |||||||||||
Demand | $ | 6,155,592 | $ | 4,446,463 | |||||||
Interest-bearing: | |||||||||||
Health savings accounts | 7,120,017 | 6,416,135 | |||||||||
Checking | 3,652,763 | 2,689,734 | |||||||||
Money market | 2,940,215 | 2,312,840 | |||||||||
Savings | 4,979,031 | 4,354,809 | |||||||||
Time deposits | 2,487,818 | 3,104,765 | |||||||||
Total interest-bearing | 21,179,844 | 18,878,283 | |||||||||
Total deposits | $ | 27,335,436 | $ | 23,324,746 | |||||||
Time deposits and interest-bearing checking, included in above balances, obtained through brokers | $ | 720,440 | $ | 652,151 | |||||||
Time deposits, included in above balance, that exceed the FDIC limit | 504,543 | 661,334 | |||||||||
Demand deposit overdrafts reclassified as loan balances | 2,007 | 1,721 |
(In thousands) | At December 31, 2020 | ||||
2021 | $ | 2,173,670 | |||
2022 | 186,612 | ||||
2023 | 54,287 | ||||
2024 | 22,302 | ||||
2025 | 50,947 | ||||
Time deposits | $ | 2,487,818 |
At December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Total Outstanding | Rate | Total Outstanding | Rate | ||||||||||||||
Securities sold under agreements to repurchase (1):
|
|||||||||||||||||
Original maturity of one year or less | $ | 269,330 | 0.13 | % | $ | 240,431 | 0.19 | % | |||||||||
Original maturity of greater than one year, non-callable | 200,000 | 0.84 | 200,000 | 1.78 | |||||||||||||
Total securities sold under agreements to repurchase | 469,330 | 0.43 | 440,431 | 0.91 | |||||||||||||
Fed funds purchased | 526,025 | 0.08 | 600,000 | 1.59 | |||||||||||||
Securities sold under agreements to repurchase and other borrowings | $ | 995,355 | 0.25 | $ | 1,040,431 | 1.30 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in thousands) |
Total
Outstanding |
Weighted-Average Contractual Coupon Rate |
Total
Outstanding |
Weighted-Average Contractual Coupon Rate | |||||||||||||
Maturing within 1 year | $ | 25,000 | 0.38 | % | $ | 1,690,000 | 1.79 | % | |||||||||
After 1 but within 2 years | 110 | — | 200,000 | 2.53 | |||||||||||||
After 2 but within 3 years | 215 | 2.95 | 130 | — | |||||||||||||
After 3 but within 4 years | 50,000 | 1.59 | 229 | 2.95 | |||||||||||||
After 4 but within 5 years | 50,000 | 1.42 | 50,000 | 1.59 | |||||||||||||
After 5 years | 7,839 | 2.66 | 8,117 | 2.66 | |||||||||||||
FHLB advances | $ | 133,164 | 1.36 | $ | 1,948,476 | 1.87 | |||||||||||
Aggregate carrying value of assets pledged as collateral | $ | 7,387,054 | $ | 7,318,748 | |||||||||||||
Remaining borrowing capacity | 4,689,642 | 2,937,644 |
At December 31, | ||||||||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||||||||
4.375% | Senior fixed-rate notes due February 15, 2024 | $ | 150,000 | $ | 150,000 | |||||||||
4.100 | % |
Senior fixed-rate notes due March 25, 2029 (1)
|
344,164 | 317,486 | ||||||||||
Junior subordinated debt Webster Statutory Trust I floating-rate notes due September 17, 2033 (2)
|
77,320 | 77,320 | ||||||||||||
Total notes and subordinated debt | 571,484 | 544,806 | ||||||||||||
Discount on senior fixed-rate notes | (1,193) | (1,412) | ||||||||||||
Debt issuance cost on senior fixed-rate notes | (2,628) | (3,030) | ||||||||||||
Long-term debt | $ | 567,663 | $ | 540,364 |
Preferred Stock Series F | Common Stock Issued | Treasury Stock Held | Common Stock Outstanding | |||||||||||||||||
Balance at January 1, 2020 | 6,000 | 93,686,311 | 1,659,749 | 92,026,562 | ||||||||||||||||
Restricted share activity | — | — | (266,325) | 266,325 | ||||||||||||||||
Stock options exercised | — | — | (10,230) | 10,230 | ||||||||||||||||
Common stock repurchased | — | — | 2,104,195 | (2,104,195) | ||||||||||||||||
Balance at December 31, 2020 | 6,000 | 93,686,311 | 3,487,389 | 90,198,922 |
(In thousands) | Securities Available For Sale | Derivative Instruments | Defined Benefit Pension and Other Postretirement Benefit Plans | Total | ||||||||||
Balance at December 31, 2017 | $ | (27,947) | $ | (15,016) | $ | (48,568) | $ | (91,531) | ||||||
Other comprehensive (loss) income before reclassifications | (43,427) | 208 | (7,122) | (50,341) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 5,495 | 5,725 | 11,220 | ||||||||||
Net current-period other comprehensive (loss) income, net of tax | (43,427) | 5,703 | (1,397) | (39,121) | ||||||||||
Balance at December 31, 2018 | (71,374) | (9,313) | (49,965) | (130,652) | ||||||||||
Other comprehensive income (loss) before reclassifications | 88,647 | (4,945) | 1,622 | 85,324 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (22) | 5,074 | 4,204 | 9,256 | ||||||||||
Net current-period other comprehensive income (loss), net of tax | 88,625 | 129 | 5,826 | 94,580 | ||||||||||
Balance at December 31, 2019 | 17,251 | (9,184) | (44,139) | (36,072) | ||||||||||
Other comprehensive income (loss) before reclassifications | 50,179 | 20,667 | (3,887) | 66,959 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (6) | 8,435 | 2,940 | 11,369 | ||||||||||
Net current-period other comprehensive income (loss), net of tax | 50,173 | 29,102 | (947) | 78,328 | ||||||||||
Balance at December 31, 2020 | $ | 67,424 | $ | 19,918 | $ | (45,086) | $ | 42,256 |
Years ended December 31, | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Components | 2020 | 2019 | 2018 | Associated Line Item in the Consolidated Statement Of Income | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Unrealized gains on investments | $ | 8 | $ | 29 | $ | — | Gain on sale of investment securities, net | |||||||||||||
Tax expense | (2) | (7) | — | Income tax expense | ||||||||||||||||
Net of tax | $ | 6 | $ | 22 | $ | — | ||||||||||||||
Derivative instruments: | ||||||||||||||||||||
Hedge terminations | $ | (7,884) | $ | (5,509) | $ | (7,425) | Interest expense | |||||||||||||
Premium amortization | (3,536) | (1,323) | — | Interest income | ||||||||||||||||
Tax benefit | 2,985 | 1,758 | 1,930 | Income tax expense | ||||||||||||||||
Net of tax | $ | (8,435) | $ | (5,074) | $ | (5,495) | ||||||||||||||
Defined benefit pension and other postretirement benefit plans: | ||||||||||||||||||||
Amortization of net loss | $ | (3,976) | $ | (5,706) | $ | (7,708) | Other non-interest expense | |||||||||||||
Tax benefit | 1,036 | 1,502 | 1,983 | Income tax expense | ||||||||||||||||
Net of tax | $ | (2,940) | $ | (4,204) | $ | (5,725) |
Year ended December 31, 2020 | |||||||||||
(In thousands) | Pre-Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | ||||||||
Securities available-for-sale: | |||||||||||
Net unrealized gain during the period | $ | 68,116 | $ | (17,937) | $ | 50,179 | |||||
Reclassification for net gain included in net income | (8) | 2 | (6) | ||||||||
Total securities available-for-sale | 68,108 | (17,935) | 50,173 | ||||||||
Derivative instruments: | |||||||||||
Net unrealized gain during the period | 27,683 | (7,016) | 20,667 | ||||||||
Reclassification adjustment for net loss included in net income | 11,420 | (2,985) | 8,435 | ||||||||
Total derivative instruments | 39,103 | (10,001) | 29,102 | ||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Current year actuarial loss | (5,262) | 1,375 | (3,887) | ||||||||
Reclassification adjustment for amortization of net loss included in net income | 3,976 | (1,036) | 2,940 | ||||||||
Total defined benefit pension and postretirement benefit plans | (1,286) | 339 | (947) | ||||||||
Other comprehensive income, net of tax | $ | 105,925 | $ | (27,597) | $ | 78,328 | |||||
Year ended December 31, 2019 | |||||||||||
(In thousands) | Pre-Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | ||||||||
Securities available-for-sale: | |||||||||||
Net unrealized gain during the period | $ | 120,333 | $ | (31,686) | $ | 88,647 | |||||
Reclassification for net gain included in net income | (29) | 7 | (22) | ||||||||
Total securities available-for-sale | 120,304 | (31,679) | 88,625 | ||||||||
Derivative instruments: | |||||||||||
Net unrealized loss during the period | (6,672) | 1,727 | (4,945) | ||||||||
Reclassification adjustment for net loss included in net income | 6,832 | (1,758) | 5,074 | ||||||||
Total derivative instruments | 160 | (31) | 129 | ||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Current year actuarial gain | 2,202 | (580) | 1,622 | ||||||||
Reclassification adjustment for amortization of net loss included in net income | 5,706 | (1,502) | 4,204 | ||||||||
Total defined benefit pension and postretirement benefit plans | 7,908 | (2,082) | 5,826 | ||||||||
Other comprehensive income, net of tax | $ | 128,372 | $ | (33,792) | $ | 94,580 | |||||
Year ended December 31, 2018 | |||||||||||
(In thousands) | Pre-Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | ||||||||
Securities available-for-sale: | |||||||||||
Net unrealized loss during the period | $ | (58,792) | $ | 15,365 | $ | (43,427) | |||||
Reclassification for net gain included in net income | — | — | — | ||||||||
Total securities available-for-sale | (58,792) | 15,365 | (43,427) | ||||||||
Derivative instruments: | |||||||||||
Net unrealized gain during the period | 280 | (72) | 208 | ||||||||
Reclassification adjustment for net loss included in net income | 7,425 | (1,930) | 5,495 | ||||||||
Total derivative instruments | 7,705 | (2,002) | 5,703 | ||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Current year actuarial loss | (9,600) | 2,478 | (7,122) | ||||||||
Reclassification adjustment for amortization of net loss included in net income | 7,708 | (1,983) | 5,725 | ||||||||
Total defined benefit pension and postretirement benefit plans | (1,892) | 495 | (1,397) | ||||||||
Other comprehensive loss, net of tax | $ | (52,979) | $ | 13,858 | $ | (39,121) |
At December 31, 2020 | ||||||||||||||||||||||||||
Actual (1)
|
Minimum Requirement | Well Capitalized | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Webster Financial Corporation | ||||||||||||||||||||||||||
CET1 risk-based capital | $ | 2,543,131 | 11.35 | % | $ | 1,008,512 | 4.5 | % | $ | 1,456,739 | 6.5 | % | ||||||||||||||
Total risk-based capital | 3,045,652 | 13.59 | 1,792,910 | 8.0 | 2,241,137 | 10.0 | ||||||||||||||||||||
Tier 1 risk-based capital | 2,688,168 | 11.99 | 1,344,682 | 6.0 | 1,792,910 | 8.0 | ||||||||||||||||||||
Tier 1 leverage capital | 2,688,168 | 8.32 | 1,291,980 | 4.0 | 1,614,975 | 5.0 | ||||||||||||||||||||
Webster Bank | ||||||||||||||||||||||||||
CET1 risk-based capital | $ | 2,791,474 | 12.46 | % | $ | 1,008,027 | 4.5 | % | $ | 1,456,039 | 6.5 | % | ||||||||||||||
Total risk-based capital | 3,071,505 | 13.71 | 1,792,048 | 8.0 | 2,240,060 | 10.0 | ||||||||||||||||||||
Tier 1 risk-based capital | 2,791,474 | 12.46 | 1,344,036 | 6.0 | 1,792,048 | 8.0 | ||||||||||||||||||||
Tier 1 leverage capital | 2,791,474 | 8.65 | 1,291,415 | 4.0 | 1,614,268 | 5.0 | ||||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||||||||
Actual | Minimum Requirement | Well Capitalized | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Webster Financial Corporation | ||||||||||||||||||||||||||
CET1 risk-based capital | $ | 2,516,361 | 11.56 | % | $ | 979,739 | 4.5 | % | $ | 1,415,179 | 6.5 | % | ||||||||||||||
Total risk-based capital | 2,950,181 | 13.55 | 1,741,758 | 8.0 | 2,177,198 | 10.0 | ||||||||||||||||||||
Tier 1 risk-based capital | 2,661,398 | 12.22 | 1,306,319 | 6.0 | 1,741,758 | 8.0 | ||||||||||||||||||||
Tier 1 leverage capital | 2,661,398 | 8.96 | 1,188,507 | 4.0 | 1,485,634 | 5.0 | ||||||||||||||||||||
Webster Bank | ||||||||||||||||||||||||||
CET1 risk-based capital | $ | 2,527,645 | 11.61 | % | $ | 979,497 | 4.5 | % | $ | 1,414,829 | 6.5 | % | ||||||||||||||
Total risk-based capital | 2,739,108 | 12.58 | 1,741,328 | 8.0 | 2,176,660 | 10.0 | ||||||||||||||||||||
Tier 1 risk-based capital | 2,527,645 | 11.61 | 1,305,996 | 6.0 | 1,741,328 | 8.0 | ||||||||||||||||||||
Tier 1 leverage capital | 2,527,645 | 8.51 | 1,187,953 | 4.0 | 1,484,941 | 5.0 |
Years ended December 31, | |||||||||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Earnings for basic and diluted earnings per common share: | |||||||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 | |||||||||||
Less: Preferred stock dividends | 7,875 | 7,875 | 7,853 | ||||||||||||||
Net income available to common shareholders | 212,746 | 374,848 | 352,565 | ||||||||||||||
Less: Earnings applicable to participating securities (1)
|
1,272 | 1,863 | 862 | ||||||||||||||
Earnings applicable to common shareholders | $ | 211,474 | $ | 372,985 | $ | 351,703 | |||||||||||
Shares: | |||||||||||||||||
Weighted-average common shares outstanding - basic | 89,967 | 91,559 | 91,930 | ||||||||||||||
Effect of dilutive securities | 184 | 323 | 297 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 90,151 | 91,882 | 92,227 | ||||||||||||||
Earnings per common share (1):
|
|||||||||||||||||
Basic | $ | 2.35 | $ | 4.07 | $ | 3.83 | |||||||||||
Diluted | 2.35 | 4.06 | 3.81 |
At December 31, 2020 | At December 31, 2019 | ||||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives (1)
|
$ | 1,000,000 | $ | 39,641 | $ | 25,000 | $ | 103 | $ | 1,225,000 | $ | 11,855 | $ | 300,000 | $ | 3,153 | |||||||||||||||||||
Not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives (1)
|
4,533,441 | 292,096 | 4,356,339 | 11,874 | 4,869,139 | 133,455 | 4,090,522 | 9,732 | |||||||||||||||||||||||||||
Mortgage banking derivatives (2)
|
40,771 | 855 | — | — | 27,873 | 329 | 57,000 | 110 | |||||||||||||||||||||||||||
Other (3)
|
108,987 | 264 | 360,497 | 377 | 76,544 | 398 | 275,279 | 818 | |||||||||||||||||||||||||||
Total not designated as hedging instruments | 4,683,199 | 293,215 | 4,716,836 | 12,251 | 4,973,556 | 134,182 | 4,422,801 | 10,660 | |||||||||||||||||||||||||||
Gross derivative instruments, before netting | $ | 5,683,199 | 332,856 | $ | 4,741,836 | 12,354 | $ | 6,198,556 | 146,037 | $ | 4,722,801 | 13,813 | |||||||||||||||||||||||
Less: Master netting agreements | 7,522 | 7,522 | 4,779 | 4,779 | |||||||||||||||||||||||||||||||
Cash collateral | 33,043 | 4,485 | 8,100 | 1,871 | |||||||||||||||||||||||||||||||
Total derivative instruments, after netting | $ | 292,291 | $ | 347 | $ | 133,158 | $ | 7,163 |
At December 31, 2020 | ||||||||||||||||||||
(In thousands) |
Gross
Amount |
Offset Amount | Net Amount on Balance Sheet | Amounts Not Offset | Net Amounts | |||||||||||||||
Asset derivatives | $ | 40,565 | $ | 40,565 | $ | — | $ | 785 | $ | 785 | ||||||||||
Liability derivatives | 12,007 | 12,007 | — | 1,247 | 1,247 | |||||||||||||||
At December 31, 2019 | ||||||||||||||||||||
(In thousands) |
Gross
Amount |
Offset Amount | Net Amount on Balance Sheet | Amounts Not Offset | Net Amounts | |||||||||||||||
Asset derivatives | $ | 13,012 | $ | 12,879 | $ | 133 | $ | 299 | $ | 432 | ||||||||||
Liability derivatives | 6,710 | 6,650 | 60 | 329 | 389 |
Recognized In | Years ended December 31, | |||||||||||||||||||
(In thousands) | Net Interest Income | 2020 | 2019 | 2018 | ||||||||||||||||
Fair value hedges: (1)
|
||||||||||||||||||||
Recognized on derivatives | Long-term debt | $ | 30,693 | $ | 17,486 | $ | — | |||||||||||||
Recognized on hedged items | Long-term debt | (30,693) | (17,486) | — | ||||||||||||||||
Net recognized on fair value hedges | $ | — | $ | — | $ | — | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate derivatives | Long-term debt | $ | 8,206 | $ | 4,241 | $ | 6,557 | |||||||||||||
Interest rate derivatives | Interest and fees on loans and leases | (6,373) | 1,314 | — | ||||||||||||||||
Net recognized on cash flow hedges | $ | 1,833 | $ | 5,555 | $ | 6,557 |
Consolidated Balance Sheet Line Item in Which Hedged Item is Located | Carrying Amount of Hedged Item |
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount (1)
|
||||||||||||||||||||||||
At December 31, | At December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Long-term debt | $ | 344,164 | $ | 317,486 | $ | 44,164 | $ | 17,486 |
At December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Unpaid Principal Balance | Difference | Fair Value | Unpaid Principal Balance | Difference | |||||||||||||||||||||||||||||
Originated loans held for sale | $ | 14,000 | $ | 13,511 | $ | 489 | $ | 35,750 | $ | 35,186 | $ | 564 |
At December 31, 2020 | ||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Financial assets held at fair value: | ||||||||||||||
Agency CMO | $ | — | $ | 154,613 | $ | — | $ | 154,613 | ||||||
Agency MBS | — | 1,457,409 | — | 1,457,409 | ||||||||||
Agency CMBS | — | 1,117,233 | — | 1,117,233 | ||||||||||
CMBS | — | 508,018 | — | 508,018 | ||||||||||
CLO | — | 76,383 | — | 76,383 | ||||||||||
Corporate debt | — | 13,120 | — | 13,120 | ||||||||||
Total available-for-sale investment securities | — | 3,326,776 | — | 3,326,776 | ||||||||||
Gross derivative instruments, before netting (1)
|
205 | 332,651 | — | 332,856 | ||||||||||
Originated loans held for sale | — | 14,000 | — | 14,000 | ||||||||||
Investments held in Rabbi Trust | 4,811 | — | — | 4,811 | ||||||||||
Alternative investments (2)
|
— | — | — | 11,112 | ||||||||||
Total financial assets held at fair value | $ | 5,016 | $ | 3,673,427 | $ | — | $ | 3,689,555 | ||||||
Financial liabilities held at fair value: | ||||||||||||||
Gross derivative instruments, before netting (1)
|
$ | 218 | $ | 12,136 | $ | — | $ | 12,354 |
At December 31, 2019 | ||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Financial assets held at fair value: | ||||||||||||||
Agency CMO | $ | — | $ | 185,801 | $ | — | $ | 185,801 | ||||||
Agency MBS | — | 1,612,164 | — | 1,612,164 | ||||||||||
Agency CMBS | — | 581,552 | — | 581,552 | ||||||||||
CMBS | — | 431,871 | — | 431,871 | ||||||||||
CLO | — | 92,205 | — | 92,205 | ||||||||||
Corporate debt | — | 22,240 | — | 22,240 | ||||||||||
Total available-for-sale investment securities | — | 2,925,833 | — | 2,925,833 | ||||||||||
Gross derivative instruments, before netting (1)
|
328 | 145,709 | — | 146,037 | ||||||||||
Originated loans held for sale | — | 35,750 | — | 35,750 | ||||||||||
Investments held in Rabbi Trust | 4,780 | — | — | 4,780 | ||||||||||
Alternative investments (2)
|
— | — | — | 4,331 | ||||||||||
Total financial assets held at fair value | $ | 5,108 | $ | 3,107,292 | $ | — | $ | 3,116,731 | ||||||
Financial liabilities held at fair value: | ||||||||||||||
Gross derivative instruments, before netting (1)
|
$ | 611 | $ | 13,202 | $ | — | $ | 13,813 |
At December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In thousands) |
Carrying
Amount |
Fair
Value |
Carrying
Amount |
Fair
Value |
|||||||||||||||||||
Assets: | |||||||||||||||||||||||
Level 2 | |||||||||||||||||||||||
Held-to-maturity investment securities | $ | 5,567,889 | $ | 5,835,364 | $ | 5,293,918 | $ | 5,380,653 | |||||||||||||||
Level 3 | |||||||||||||||||||||||
Loans and leases, net | 21,281,784 | 21,413,397 | 19,827,890 | 19,961,632 | |||||||||||||||||||
Mortgage servicing assets | 13,422 | 14,362 | 17,484 | 33,250 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Level 2 | |||||||||||||||||||||||
Deposit liabilities | $ | 24,847,618 | $ | 24,847,618 | $ | 20,219,981 | $ | 20,219,981 | |||||||||||||||
Time deposits | 2,487,818 | 2,494,601 | 3,104,765 | 3,102,316 | |||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 995,355 | 1,000,189 | 1,040,431 | 1,041,042 | |||||||||||||||||||
FHLB advances | 133,164 | 139,035 | 1,948,476 | 1,950,035 | |||||||||||||||||||
Long-term debt (1)
|
567,663 | 538,407 | 540,364 | 555,775 |
|
Pension Plan | SERP | Other | |||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Beginning balance | $ | 241,404 | $ | 209,513 | $ | 1,935 | $ | 1,835 | $ | 2,399 | $ | 2,612 | ||||||||||||||
Interest cost | 6,511 | 7,941 | 46 | 65 | 46 | 85 | ||||||||||||||||||||
Actuarial loss (gain) | 27,376 | 33,157 | 194 | 163 | (307) | (103) | ||||||||||||||||||||
Benefits paid and administrative expenses | (8,877) | (9,207) | (129) | (128) | (140) | (195) | ||||||||||||||||||||
Ending balance (1)
|
266,414 | 241,404 | 2,046 | 1,935 | 1,998 | 2,399 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Beginning balance | 239,621 | 191,972 | — | — | — | — | ||||||||||||||||||||
Actual return on plan assets | 35,524 | 46,856 | — | — | — | — | ||||||||||||||||||||
Employer contributions | — | 10,000 | 129 | 128 | 140 | 195 | ||||||||||||||||||||
Benefits paid and administrative expenses | (8,877) | (9,207) | (129) | (128) | (140) | (195) | ||||||||||||||||||||
Ending balance | 266,268 | 239,621 | — | — | — | — | ||||||||||||||||||||
Funded status of the plan at year end (2)
|
$ | (146) | $ | (1,783) | $ | (2,046) | $ | (1,935) | $ | (1,998) | $ | (2,399) |
|
Pension Plan | SERP | Other | |||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net actuarial loss (gain) included in AOCI | $ | 57,902 | $ | 56,555 | $ | 773 | $ | 602 | $ | (690) | $ | (458) | ||||||||||||||
Deferred tax benefit (expense) | 12,881 | 12,528 | 172 | 133 | (153) | (101) | ||||||||||||||||||||
Amounts included in accumulated AOCI, net of tax | $ | 45,021 | $ | 44,027 | $ | 601 | $ | 469 | $ | (537) | $ | (357) |
(In thousands) | Pension Plan | SERP | Other | |||||||||||
2021 | $ | 9,657 | $ | 131 | $ | 254 | ||||||||
2022 | 10,294 | 132 | 237 | |||||||||||
2023 | 10,465 | 132 | 219 | |||||||||||
2024 | 10,887 | 138 | 201 | |||||||||||
2025 | 11,304 | 136 | 182 | |||||||||||
2026-2030 | 61,336 | 625 | 638 |
Pension Plan | SERP | Other | |||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Interest cost on benefit obligations | 6,511 | 7,941 | 7,212 | 46 | 65 | 103 | 46 | 85 | 78 | ||||||||||||||||||||||||||
Expected return on plan assets | (13,522) | (11,436) | (12,716) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Recognized net loss (gain) | 4,027 | 5,705 | 4,862 | 23 | 14 | 2,846 | (74) | (13) | — | ||||||||||||||||||||||||||
Net periodic benefit cost (benefit) | $ | (2,984) | $ | 2,210 | $ | (642) | $ | 69 | $ | 79 | $ | 2,949 | $ | (28) | $ | 72 | $ | 78 |
Pension Plan | SERP | Other | |||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Net (gain) loss | $ | 5,375 | $ | (2,263) | $ | 9,952 | $ | 194 | $ | 164 | $ | — | $ | (307) | $ | (103) | $ | (352) | |||||||||||||||||
Amounts reclassified from AOCI | (4,027) | (5,705) | (4,862) | (23) | (14) | (2,846) | 74 | 13 | — | ||||||||||||||||||||||||||
Total (gain) loss recognized in OCI | $ | 1,348 | $ | (7,968) | $ | 5,090 | $ | 171 | $ | 150 | $ | (2,846) | $ | (233) | $ | (90) | $ | (352) |
At December 31, | |||||||||||||||||||||||||||||
|
2020 | 2019 | |||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Exchange traded fund | $ | 39,645 | $ | — | $ | — | $ | 39,645 | $ | 36,552 | $ | — | $ | — | $ | 36,552 | |||||||||||||
Cash and cash equivalents | 861 | — | — | 861 | 1,225 | — | — | 1,225 | |||||||||||||||||||||
Common collective trusts | — | 225,762 | — | 225,762 | — | 201,844 | — | 201,844 | |||||||||||||||||||||
Total pension plan assets | $ | 40,506 | $ | 225,762 | $ | — | $ | 266,268 | $ | 37,777 | $ | 201,844 | $ | — | $ | 239,621 |
|
Target Allocation | Percentage of Pension Plan Assets | |||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Fixed income investments | 62 | % | 61 | % | 61 | % | |||||||||||
Equity investments | 38 | 38 | 38 | ||||||||||||||
Cash and cash equivalents | — | 1 | 1 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
|
Pension Plan | SERP | Other | |||||||||||||||||||||||
|
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Discount rate | 2.29 | % | 3.07 | % | 1.91 | % | 2.82 | % | 1.40 | % | 2.50 | % |
|
Pension Plan | SERP | Other | ||||||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Discount rate | 3.07 | % | 4.12 | % | 3.50 | % | 2.82 | % | 3.95 | % | 3.30 | % | 2.50 | % | 3.69 | % | 3.00 | % | |||||||||||||||||
Expected long-term return on assets | 5.75 | % | 6.00 | % | 6.00 | % | 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 | 6.50 | % | 6.50 | % | 7.00 | % |
(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 | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||||||||
Pentegra Defined Benefit Plan for Financial Institutions | 13-5645888 | 333 | $998 | $863 | $679 | At least 80 percent | At least 80 percent |
Unvested Restricted Stock Awards Outstanding | Stock Options Outstanding | ||||||||||||||||||||||||||||||||||
Time-Based | Performance-Based | ||||||||||||||||||||||||||||||||||
Number of
Shares |
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, 2020 | 450,224 | $ | 54.53 | 233,304 | $ | 54.94 | 420,931 | $ | 23.35 | ||||||||||||||||||||||||||
Granted | 296,435 | 37.79 | 106,739 | 40.56 | — | — | |||||||||||||||||||||||||||||
Vested | 171,852 | 52.22 | 79,836 | 56.18 | — | — | |||||||||||||||||||||||||||||
Forfeited | 27,622 | 45.98 | 9,541 | 50.42 | — | — | |||||||||||||||||||||||||||||
Exercised | — | — | — | — | 10,230 | 23.51 | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | 547,185 | 46.59 | 250,666 | 48.77 | 410,701 | 23.35 |
At December 31, 2020 | ||||||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community Banking |
Corporate and
Reconciling |
Consolidated
Total |
|||||||||||||||
Total assets | $ | 12,689,255 | $ | 80,352 | $ | 9,769,824 | $ | 10,051,259 | $ | 32,590,690 | ||||||||||
At December 31, 2019 | ||||||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community Banking |
Corporate and
Reconciling |
Consolidated
Total |
|||||||||||||||
Total assets | $ | 11,541,803 | $ | 80,176 | $ | 9,348,727 | $ | 9,418,638 | $ | 30,389,344 |
Year ended December 31, 2020 | ||||||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community Banking |
Corporate and
Reconciling |
Consolidated
Total |
|||||||||||||||
Net interest income | $ | 423,869 | $ | 162,363 | $ | 422,979 | $ | (117,818) | $ | 891,393 | ||||||||||
Non-interest income | 58,366 | 100,826 | 106,279 | 19,806 | 285,277 | |||||||||||||||
Non-interest expense | 187,572 | 140,637 | 390,596 | 40,141 | 758,946 | |||||||||||||||
Pre-tax, pre-provision net revenue | 294,663 | 122,552 | 138,662 | (138,153) | 417,724 | |||||||||||||||
Provision for credit losses | 137,993 | — | (144) | (99) | 137,750 | |||||||||||||||
Income before income tax expense | 156,670 | 122,552 | 138,806 | (138,054) | 279,974 | |||||||||||||||
Income tax expense | 38,368 | 32,721 | 27,484 | (39,220) | 59,353 | |||||||||||||||
Net income | $ | 118,302 | $ | 89,831 | $ | 111,322 | $ | (98,834) | $ | 220,621 |
Year ended December 31, 2019 | ||||||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community Banking |
Corporate and
Reconciling |
Consolidated
Total |
|||||||||||||||
Net interest income | $ | 403,258 | $ | 172,685 | $ | 420,898 | $ | (41,714) | $ | 955,127 | ||||||||||
Non-interest income | 59,063 | 97,041 | 109,270 | 19,941 | 285,315 | |||||||||||||||
Non-interest expense | 181,580 | 135,586 | 388,399 | 10,385 | 715,950 | |||||||||||||||
Pre-tax, pre-provision net revenue | 280,741 | 134,140 | 141,769 | (32,158) | 524,492 | |||||||||||||||
Provision for credit losses | 25,407 | — | 12,393 | — | 37,800 | |||||||||||||||
Income before income tax expense | 255,334 | 134,140 | 129,376 | (32,158) | 486,692 | |||||||||||||||
Income tax expense | 63,323 | 35,547 | 27,428 | (22,329) | 103,969 | |||||||||||||||
Net income | $ | 192,011 | $ | 98,593 | $ | 101,948 | $ | (9,829) | $ | 382,723 |
Year ended December 31, 2018 | ||||||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community Banking |
Corporate and
Reconciling |
Consolidated
Total |
|||||||||||||||
Net interest income | $ | 381,098 | $ | 147,920 | $ | 422,063 | $ | (44,400) | $ | 906,681 | ||||||||||
Non-interest income | 64,765 | 89,323 | 109,669 | 18,811 | 282,568 | |||||||||||||||
Non-interest expense | 174,054 | 124,594 | 384,603 | 22,365 | 705,616 | |||||||||||||||
Pre-tax, pre-provision net revenue | 271,809 | 112,649 | 147,129 | (47,954) | 483,633 | |||||||||||||||
Provision for credit losses | 32,388 | — | 9,612 | — | 42,000 | |||||||||||||||
Income before income tax expense | 239,421 | 112,649 | 137,517 | (47,954) | 441,633 | |||||||||||||||
Income tax expense | 58,898 | 29,289 | 27,366 | (34,338) | 81,215 | |||||||||||||||
Net income | $ | 180,523 | $ | 83,360 | $ | 110,151 | $ | (13,616) | $ | 360,418 |
Year ended December 31, 2020 | |||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community
Banking |
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Non-interest Income: | |||||||||||||||||
Deposit service fees | $ | 11,634 | $ | 92,693 | $ | 51,599 | $ | 106 | $ | 156,032 | |||||||
Wealth and investment services | 10,644 | — | 22,307 | (35) | 32,916 | ||||||||||||
Other | — | 8,133 | 1,656 | — | 9,789 | ||||||||||||
Revenue from contracts with customers | 22,278 | 100,826 | 75,562 | 71 | 198,737 | ||||||||||||
Other sources of non-interest income | 36,088 | — | 30,717 | 19,735 | 86,540 | ||||||||||||
Total non-interest income | $ | 58,366 | $ | 100,826 | $ | 106,279 | $ | 19,806 | $ | 285,277 |
Year ended December 31, 2019 | |||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community
Banking |
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Non-interest Income: | |||||||||||||||||
Deposit service fees | $ | 12,136 | $ | 92,096 | $ | 63,572 | $ | 218 | $ | 168,022 | |||||||
Wealth and investment services | 10,330 | — | 22,637 | (35) | 32,932 | ||||||||||||
Other | — | 4,945 | 2,394 | — | 7,339 | ||||||||||||
Revenue from contracts with customers | 22,466 | 97,041 | 88,603 | 183 | 208,293 | ||||||||||||
Other sources of non-interest income | 36,597 | — | 20,667 | 19,758 | 77,022 | ||||||||||||
Total non-interest income | $ | 59,063 | $ | 97,041 | $ | 109,270 | $ | 19,941 | $ | 285,315 |
Year ended December 31, 2018 | |||||||||||||||||
(In thousands) |
Commercial
Banking |
HSA
Bank |
Community
Banking |
Corporate and
Reconciling |
Consolidated
Total |
||||||||||||
Non-interest Income: | |||||||||||||||||
Deposit service fees | $ | 12,775 | $ | 85,809 | $ | 63,522 | $ | 77 | $ | 162,183 | |||||||
Wealth and investment services | 10,145 | — | 22,732 | (34) | 32,843 | ||||||||||||
Other | — | 3,514 | 2,133 | — | 5,647 | ||||||||||||
Revenue from contracts with customers | 22,920 | 89,323 | 88,387 | 43 | 200,673 | ||||||||||||
Other sources of non-interest income | 41,845 | — | 21,282 | 18,768 | 81,895 | ||||||||||||
Total non-interest income | $ | 64,765 | $ | 89,323 | $ | 109,669 | $ | 18,811 | $ | 282,568 | |||||||
At December 31, | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Commitments to extend credit | $ | 6,517,840 | $ | 6,162,658 | |||||||
Standby letter of credit | 207,201 | 188,103 | |||||||||
Commercial letter of credit | 30,522 | 29,180 | |||||||||
Total credit-related financial instruments with off-balance sheet risk | $ | 6,755,563 | $ | 6,379,941 |
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 2,367 | $ | 2,506 | $ | 2,362 | |||||||||||
Adoption of ASU No. 2016-13 (CECL) | 9,139 | — | — | ||||||||||||||
Provision (benefit) | 1,249 | (139) | 144 | ||||||||||||||
Ending balance | $ | 12,755 | $ | 2,367 | $ | 2,506 |
Condensed Balance Sheets | |||||||||||
|
December 31, | ||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Assets: | |||||||||||
Cash and due from banks | $ | 302,315 | $ | 510,940 | |||||||
Intercompany debt securities | 150,000 | 150,000 | |||||||||
Investment in subsidiaries | 3,340,556 | 3,079,549 | |||||||||
Alternative investments | 8,970 | 5,356 | |||||||||
Other assets | 8,122 | 13,537 | |||||||||
Total assets | $ | 3,809,963 | $ | 3,759,382 | |||||||
Liabilities and shareholders’ equity: | |||||||||||
Senior notes | $ | 490,343 | $ | 463,044 | |||||||
Junior subordinated debt | 77,320 | 77,320 | |||||||||
Accrued interest payable | 5,862 | 6,057 | |||||||||
Due to subsidiaries | 324 | 52 | |||||||||
Other liabilities | 1,489 | 5,139 | |||||||||
Total liabilities | 575,338 | 551,612 | |||||||||
Shareholders’ equity | 3,234,625 | 3,207,770 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,809,963 | $ | 3,759,382 |
Condensed Statements of Income |
|
|
|
||||||||||||||
|
Years ended December 31, | ||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Operating Income: | |||||||||||||||||
Dividend income from bank subsidiary | $ | 20,000 | $ | 360,000 | $ | 290,000 | |||||||||||
Interest on securities and deposits | 5,530 | 10,728 | 7,342 | ||||||||||||||
Alternative investments (loss) income | 2,467 | (256) | 290 | ||||||||||||||
Other non-interest income | 634 | 382 | 805 | ||||||||||||||
Total operating income | 28,631 | 370,854 | 298,437 | ||||||||||||||
Operating Expense: | |||||||||||||||||
Interest expense on borrowings | 18,684 | 21,062 | 11,127 | ||||||||||||||
Non-interest expense | 16,426 | 15,527 | 19,105 | ||||||||||||||
Total operating expense | 35,110 | 36,589 | 30,232 | ||||||||||||||
Income before income tax benefit and equity in undistributed earnings of subsidiaries | (6,479) | 334,265 | 268,205 | ||||||||||||||
Income tax benefit | 4,572 | 4,671 | 2,207 | ||||||||||||||
Equity in undistributed earnings of subsidiaries | 222,528 | 43,787 | 90,006 | ||||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 |
Condensed Statements of Comprehensive Income |
|
|
|
||||||||||||||
|
Years ended December 31, | ||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net income | $ | 220,621 | $ | 382,723 | $ | 360,418 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Derivative instruments | 2,622 | 1,479 | 1,447 | ||||||||||||||
Other comprehensive income (loss) of subsidiaries | 75,706 | 93,101 | (40,568) | ||||||||||||||
Other comprehensive income (loss), net of tax | 78,328 | 94,580 | (39,121) | ||||||||||||||
Comprehensive income | $ | 298,949 | $ | 477,303 | $ | 321,297 |
Condensed Statements of Cash Flows |
|
|
|
||||||||||||||
Years ended December 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net cash provided by operating activities | $ | 27,790 | $ | 362,617 | $ | 282,986 | |||||||||||
Investing activities: | |||||||||||||||||
Alternative investments capital call | (3,751) | (1,850) | — | ||||||||||||||
Investment in subsidiaries | — | (296,000) | — | ||||||||||||||
Net cash used for investing activities | (3,751) | (297,850) | — | ||||||||||||||
Financing activities: | |||||||||||||||||
Issuance of long-term debt | — | 296,358 | — | ||||||||||||||
Cash dividends paid to common shareholders | (144,967) | (140,783) | (114,959) | ||||||||||||||
Cash dividends paid to preferred shareholders | (7,875) | (7,875) | (7,875) | ||||||||||||||
Exercise of stock options | 240 | 619 | 2,173 | ||||||||||||||
Common stock repurchased and acquired from stock compensation plan activity | (80,062) | (19,619) | (25,937) | ||||||||||||||
Net cash (used for) provided by financing activities | (232,664) | 128,700 | (146,598) | ||||||||||||||
Increase in cash and cash equivalents | (208,625) | 193,467 | 136,388 | ||||||||||||||
Cash and cash equivalents at beginning of year | 510,940 | 317,473 | 181,085 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 302,315 | $ | 510,940 | $ | 317,473 |
|
2020 | ||||||||||||||||||||||
(In thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||
Interest income | $ | 274,470 | $ | 252,275 | $ | 239,239 | $ | 236,065 | |||||||||||||||
Interest expense | 43,669 | 27,868 | 19,983 | 19,136 | |||||||||||||||||||
Net interest income | 230,801 | 224,407 | 219,256 | 216,929 | |||||||||||||||||||
Provision for credit losses | 76,000 | 40,000 | 22,750 | (1,000) | |||||||||||||||||||
Non-interest income | 73,378 | 60,076 | 75,060 | 76,763 | |||||||||||||||||||
Non-interest expense | 178,836 | 176,584 | 183,996 | 219,530 | |||||||||||||||||||
Income before income tax expense | 49,343 | 67,899 | 87,570 | 75,162 | |||||||||||||||||||
Income tax expense | 11,144 | 14,802 | 18,289 | 15,118 | |||||||||||||||||||
Net income | $ | 38,199 | $ | 53,097 | $ | 69,281 | $ | 60,044 | |||||||||||||||
Earnings applicable to common shareholders | $ | 36,021 | $ | 50,729 | $ | 66,890 | $ | 57,715 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 0.40 | $ | 0.57 | $ | 0.75 | $ | 0.64 | |||||||||||||||
Diluted | 0.39 | 0.57 | 0.75 | 0.64 |
2019 | |||||||||||||||||||||||
(In thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||
Interest income | $ | 286,190 | $ | 292,257 | $ | 294,136 | $ | 282,000 | |||||||||||||||
Interest expense | 44,639 | 50,470 | 53,597 | 50,750 | |||||||||||||||||||
Net interest income | 241,551 | 241,787 | 240,539 | 231,250 | |||||||||||||||||||
Provision for credit losses | 8,600 | 11,900 | 11,300 | 6,000 | |||||||||||||||||||
Non-interest income | 68,612 | 75,853 | 69,931 | 70,919 | |||||||||||||||||||
Non-interest expense | 175,686 | 180,640 | 179,894 | 179,730 | |||||||||||||||||||
Income before income tax expense | 125,877 | 125,100 | 119,276 | 116,439 | |||||||||||||||||||
Income tax expense | 26,141 | 26,451 | 25,411 | 25,966 | |||||||||||||||||||
Net income | $ | 99,736 | $ | 98,649 | $ | 93,865 | $ | 90,473 | |||||||||||||||
Earnings applicable to common shareholders | $ | 97,549 | $ | 96,193 | $ | 91,442 | $ | 88,066 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 1.06 | $ | 1.05 | $ | 1.00 | $ | 0.96 | |||||||||||||||
Diluted | 1.06 | 1.05 | 1.00 | 0.96 |
/s/ John R. Ciulla | /s/ Glenn I. MacInnes | |||||||
John R. Ciulla | Glenn I. MacInnes | |||||||
Chairman, President and Chief Executive Officer | Executive Vice President and Chief Financial Officer |
Plan Category |
Number of Shares to be Issued Upon Exercise of Outstanding Awards (1)
|
Weighted-Average
Exercise Price of Outstanding Awards |
Number of Shares Available for Future Grants | ||||||||||||||
Plans approved by shareholders | 410,701 | $ | 23.35 | 1,514,830 | |||||||||||||
Plans not approved by shareholders | — | — | — | ||||||||||||||
Total | 410,701 | $ | 23.35 | 1,514,830 |
Exhibit Number
|
Exhibit Description
|
Exhibit Included
|
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
|
3/17/2020
|
|||||||||||||||||||||||||||||
4 |
Instruments Defining the Rights of Security Holders
|
|||||||||||||||||||||||||||||||
4.1 |
10-K
|
4.1
|
2/28/2020
|
|||||||||||||||||||||||||||||
4.2 |
10-K
|
4.1
|
3/10/2006
|
|||||||||||||||||||||||||||||
4.3 |
10-K
|
10.41
|
3/27/1997
|
|||||||||||||||||||||||||||||
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
|
|||||||||||||||||||||||||||||
4.8 | 8-K | 4.1 | 3/25/2019 | |||||||||||||||||||||||||||||
4.9 | 8-K | 4.2 | 3/25/2019 | |||||||||||||||||||||||||||||
10 |
Material Contracts (1)
|
|||||||||||||||||||||||||||||||
10.1 |
DEF 14A
|
10.1
|
3/18/2016
|
|||||||||||||||||||||||||||||
10.2 |
8-K
|
10.2
|
12/21/2007
|
|||||||||||||||||||||||||||||
10.3 |
8-K
|
10.1
|
12/21/2007
|
|||||||||||||||||||||||||||||
10.4 |
DEF 14A
|
A
|
3/15/2013
|
|||||||||||||||||||||||||||||
10.5 |
10-Q
|
10.1
|
5/7/2019
|
|||||||||||||||||||||||||||||
10.6 | X | |||||||||||||||||||||||||||||||
10.7 |
8-K
|
10.1
|
12/27/2012
|
|||||||||||||||||||||||||||||
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
|
Exhibit Number
|
Exhibit Description
|
Exhibit Included
|
Incorporated by Reference
|
|||||||||||||||||||||||||||||
Form
|
Exhibit
|
Filing Date
|
||||||||||||||||||||||||||||||
10.12 |
10-K
|
10.13
|
2/28/2014
|
|||||||||||||||||||||||||||||
10.13 |
10-Q
|
10.5
|
5/5/2017
|
|||||||||||||||||||||||||||||
10.14 |
10-Q
|
10.1
|
8/6/2014
|
|||||||||||||||||||||||||||||
10.15 |
10-Q
|
10.2
|
8/6/2014
|
|||||||||||||||||||||||||||||
10.16 |
10-K
|
10.18
|
3/1/2018
|
|||||||||||||||||||||||||||||
10.17 |
10-Q
|
10.2
|
5/5/2017
|
|||||||||||||||||||||||||||||
10.18 |
10-Q
|
10.4
|
5/5/2017
|
|||||||||||||||||||||||||||||
10.19 |
X
|
|||||||||||||||||||||||||||||||
10.20 |
10-K
|
10.23
|
3/1/2018
|
|||||||||||||||||||||||||||||
10.21 |
10-K
|
10.24
|
3/1/2018
|
|||||||||||||||||||||||||||||
10.22 |
10-Q
|
10.25
|
8/3/2018
|
|||||||||||||||||||||||||||||
10.23 |
10-Q
|
10.26
|
11/5/2018
|
|||||||||||||||||||||||||||||
10.24 |
X
|
|||||||||||||||||||||||||||||||
10.25 |
X
|
|||||||||||||||||||||||||||||||
21 |
X
|
|||||||||||||||||||||||||||||||
23 |
X
|
|||||||||||||||||||||||||||||||
31.1 |
X
|
|||||||||||||||||||||||||||||||
31.2 |
X
|
|||||||||||||||||||||||||||||||
32.1 |
X (2)
|
|||||||||||||||||||||||||||||||
32.2 |
X (2)
|
|||||||||||||||||||||||||||||||
101 | The following financial information from the Company's Annual Report on Form 10-K for the year ended December 31, 2020 formatted in Inline Extensible Business Reporting Language (iXBRL) includes; (i) Cover Page, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Income, (iv) Consolidated Statements of Comprehensive Income, (v) Consolidated Statements of Shareholders' Equity, (vi) Consolidated Statements of Cash Flows, and (vii) Notes To Consolidated Financial Statements, tagged in summary and in detail | X | ||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) | X |
WEBSTER FINANCIAL CORPORATION | ||||||||
By | /s/ John R. Ciulla | |||||||
John R. Ciulla | ||||||||
Chairman, President and Chief Executive Officer |
Signature: | Title: | |||||||
/s/ John R. Ciulla | Chairman of the Board of Directors, President and Chief Executive Officer | |||||||
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/ William L. Atwell | Lead Director | |||||||
William L. Atwell | ||||||||
/s/ Elizabeth E. Flynn | Director | |||||||
Elizabeth E. Flynn | ||||||||
/s/ E. Carol Hayles | Director | |||||||
E. Carol Hayles | ||||||||
/s/ Linda H. Ianieri | Director | |||||||
Linda H. Ianieri | ||||||||
/s/ Laurence C. Morse | Director | |||||||
Laurence C. Morse | ||||||||
/s/ Karen R. Osar | Director | |||||||
Karen R. Osar | ||||||||
/s/ Mark Pettie | Director | |||||||
Mark Pettie | ||||||||
/s/ Lauren C. States | Director | |||||||
Lauren C. States |
Event | Amount | ||||
Annual Board Retainer - Lead Director | $ | 76,000 | |||
Annual Board Retainer - Director | $ | 54,000 | |||
Annual Audit Committee Retainer - Chair | $ | 24,000 | |||
Annual Audit Committee Retainer - Member | $ | 11,000 | |||
Annual Compensation Committee Retainer - Chair | $ | 20,000 | |||
Annual Compensation Committee Retainer - Member | $ | 8,000 | |||
Annual Nominating & Corporate Governance Committee Retainer - Chair | $ | 13,000 | |||
Annual Nominating & Corporate Governance Committee Retainer - Member | $ | 5,000 | |||
Annual Risk Committee Retainer - Chair | $ | 20,000 | |||
Annual Risk Committee Retainer - Member | $ | 8,000 |
Very truly yours, | |||||
WEBSTER FINANCIAL CORPORATION | |||||
By: /s/ William L. Atwell | |||||
Name: William L. Atwell | |||||
Title: Lead Director | |||||
ACKNOWLEDGED AND AGREED: | |||||
/s/ James C. Smith | |||||
James C. Smith |
/s/ Jonathan Roberts | |||||
Jonathan Roberts | |||||
WEBSTER FINANCIAL CORPORATION | |||||
By: /s/ John R. Ciulla | |||||
Name: John R. Ciulla | |||||
Title: Chairman, President & CEO |
/s/ Jonathan Roberts | |||||
Jonathan Roberts | |||||
WEBSTER FINANCIAL CORPORATION | |||||
By: /s/ John R. Ciulla | |||||
Name: John R. Ciulla | |||||
Title: Chairman, 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 |
/s/ John R. Ciulla | ||
John R. Ciulla
|
||
Chairman, President and Chief Executive Officer |
/s/ Glenn I. MacInnes | ||
Glenn I. MacInnes | ||
Executive Vice President and Chief Financial Officer |
/s/ John R. Ciulla | ||
John R. Ciulla | ||
Chairman, President and Chief Executive Officer |
/s/ Glenn I. MacInnes | ||
Glenn I. MacInnes | ||
Executive Vice President and Chief Financial Officer |