Delaware | 001-31486 | 06-1187536 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | WBS | New York Stock Exchange | ||||||
Depositary Shares, each representing 1/1000th interest in a share of 5.25% Series F Non-Cumulative Perpetual Preferred Stock | WBS-PrF | New York Stock Exchange | ||||||
Depositary Shares, each representing 1/40th interest in a share of 6.50% Series G Non-Cumulative Perpetual Preferred Stock | WBS-PrG | New York Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number |
Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
WEBSTER FINANCIAL CORPORATION | |||||||||||
(Registrant) | |||||||||||
Date: October 17, 2024 | /s/ Albert J. Wang | ||||||||||
Albert J. Wang | |||||||||||
Executive Vice President and Chief Accounting Officer |
Percent | |||||||||||||||||||||||
Three months ended September 30, | Favorable/ | ||||||||||||||||||||||
(In thousands) | 2024 | 2023 | (Unfavorable) | ||||||||||||||||||||
Net interest income | $338,424 | $365,003 | (7.3) | % | |||||||||||||||||||
Non-interest income | 33,288 | 28,804 | 15.6 | ||||||||||||||||||||
Operating revenue | 371,712 | 393,807 | (5.6) | ||||||||||||||||||||
Non-interest expense | 100,892 | 98,736 | (2.2) | ||||||||||||||||||||
Pre-tax, pre-provision net revenue | $270,820 | $295,071 | (8.2) | ||||||||||||||||||||
Percent | |||||||||||||||||||||||
At September 30, | Increase/ | ||||||||||||||||||||||
(In millions) | 2024 | 2023 | (Decrease) | ||||||||||||||||||||
Loans and leases | $40,372 | $38,849 | 3.9 | % | |||||||||||||||||||
Deposits | 17,124 | 17,166 | (0.2) | ||||||||||||||||||||
AUA / AUM (off balance sheet) | 2,968 | 2,727 | 8.9 |
Percent | |||||||||||||||||||||||
Three months ended September 30, | Favorable/ | ||||||||||||||||||||||
(In thousands) | 2024 | 2023 | (Unfavorable) | ||||||||||||||||||||
Net interest income | $93,940 | $77,669 | 20.9 | % | |||||||||||||||||||
Non-interest income | 26,541 | 20,799 | 27.6 | ||||||||||||||||||||
Operating revenue | 120,481 | 98,468 | 22.4 | ||||||||||||||||||||
Non-interest expense | 54,023 | 39,870 | (35.5) | ||||||||||||||||||||
Pre-tax, net revenue | $66,458 | $58,598 | 13.4 | ||||||||||||||||||||
At September 30, | Percent | ||||||||||||||||||||||
(Dollars in millions) | 2024 | 2023 | Increase | ||||||||||||||||||||
Number of accounts (thousands) |
3,341 | 3,186 | 4.9 | % | |||||||||||||||||||
Deposits | $9,940 | $8,230 | 20.8 | ||||||||||||||||||||
Linked investment accounts (off balance sheet) | 5,205 | 4,095 | 27.1 | ||||||||||||||||||||
Total footings | $15,146 | $12,325 | 22.9 |
Percent | |||||||||||||||||||||||
Three months ended September 30, | Favorable/ | ||||||||||||||||||||||
(In thousands) | 2024 | 2023 | (Unfavorable) | ||||||||||||||||||||
Net interest income | $202,122 | $221,698 | (8.8) | % | |||||||||||||||||||
Non-interest income | 28,299 | 28,687 | (1.4) | ||||||||||||||||||||
Operating revenue | 230,421 | 250,385 | (8.0) | ||||||||||||||||||||
Non-interest expense | 116,253 | 117,273 | 0.9 | ||||||||||||||||||||
Pre-tax, pre-provision net revenue | $114,168 | $133,112 | (14.2) | ||||||||||||||||||||
At September 30, | Percent | ||||||||||||||||||||||
(In millions) | 2024 | 2023 | Increase | ||||||||||||||||||||
Loans | $11,571 | $11,219 | 3.1 | % | |||||||||||||||||||
Deposits | 27,020 | 25,869 | 4.4 | ||||||||||||||||||||
AUA (off balance sheet) | 7,948 | 7,615 | 4.4 |
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
|
|||||||||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||||||||
(In thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||||||||||||
Income and performance ratios: | |||||||||||||||||||||||||||||
Net income | $ | 192,985 | $ | 181,633 | $ | 216,323 | $ | 185,393 | $ | 226,475 | |||||||||||||||||||
Net income available to common stockholders | 188,823 | 177,471 | 212,160 | 181,230 | 222,313 | ||||||||||||||||||||||||
Earnings per diluted common share | 1.10 | 1.03 | 1.23 | 1.05 | 1.28 | ||||||||||||||||||||||||
Return on average assets (annualized) | 1.01 | % | 0.96 | % | 1.15 | % | 1.01 | % | 1.23 | % | |||||||||||||||||||
Return on average tangible common stockholders' equity (annualized) (1) |
14.29 | 14.17 | 16.30 | 14.49 | 17.51 | ||||||||||||||||||||||||
Return on average common stockholders’ equity (annualized) | 8.67 | 8.40 | 10.01 | 9.03 | 11.00 | ||||||||||||||||||||||||
Non-interest income as a percentage of total revenue | 8.92 | 6.88 | 14.89 | 10.05 | 13.34 | ||||||||||||||||||||||||
Asset quality: | |||||||||||||||||||||||||||||
Allowance for credit losses on loans and leases | $ | 687,798 | $ | 669,355 | $ | 641,442 | $ | 635,737 | $ | 635,438 | |||||||||||||||||||
Nonperforming assets | 427,274 | 374,884 | 289,254 | 218,600 | 218,402 | ||||||||||||||||||||||||
Allowance for credit losses on loans and leases / total loans and leases | 1.32 | % | 1.30 | % | 1.26 | % | 1.25 | % | 1.27 | % | |||||||||||||||||||
Net charge-offs / average loans and leases (annualized) | 0.27 | 0.26 | 0.29 | 0.27 | 0.23 | ||||||||||||||||||||||||
Nonperforming loans and leases / total loans and leases | 0.82 | 0.72 | 0.56 | 0.41 | 0.43 | ||||||||||||||||||||||||
Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets | 0.82 | 0.73 | 0.57 | 0.43 | 0.44 | ||||||||||||||||||||||||
Allowance for credit losses on loans and leases / nonperforming loans and leases | 161.60 | 181.48 | 226.17 | 303.39 | 295.48 | ||||||||||||||||||||||||
Other ratios: | |||||||||||||||||||||||||||||
Tangible equity (1) |
7.85 | % | 7.56 | % | 7.54 | % | 8.12 | % | 7.62 | % | |||||||||||||||||||
Tangible common equity (1) |
7.48 | 7.18 | 7.15 | 7.73 | 7.22 | ||||||||||||||||||||||||
Tier 1 risk-based capital (2) |
11.75 | 11.09 | 11.08 | 11.62 | 11.64 | ||||||||||||||||||||||||
Total risk-based capital (2) |
14.03 | 13.28 | 13.21 | 13.72 | 13.79 | ||||||||||||||||||||||||
Common equity tier 1 risk-based capital (2) |
11.23 | 10.59 | 10.57 | 11.11 | 11.12 | ||||||||||||||||||||||||
Stockholders’ equity / total assets | 11.58 | 11.46 | 11.49 | 11.60 | 11.21 | ||||||||||||||||||||||||
Net interest margin | 3.36 | 3.32 | 3.35 | 3.42 | 3.49 | ||||||||||||||||||||||||
Efficiency ratio (1) |
45.49 | 46.22 | 45.25 | 43.04 | 41.75 | ||||||||||||||||||||||||
Equity and share related: | |||||||||||||||||||||||||||||
Common equity | $ | 8,914,071 | $ | 8,525,289 | $ | 8,463,519 | $ | 8,406,017 | $ | 7,915,222 | |||||||||||||||||||
Book value per common share | 52.00 | 49.74 | 49.07 | 48.87 | 46.00 | ||||||||||||||||||||||||
Tangible book value per common share (1) |
33.26 | 30.82 | 30.22 | 32.39 | 29.48 | ||||||||||||||||||||||||
Common stock closing price | 46.61 | 43.59 | 50.77 | 50.76 | 40.31 | ||||||||||||||||||||||||
Dividends declared per common share | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | ||||||||||||||||||||||||
Common shares issued and outstanding | 171,428 | 171,402 | 172,464 | 172,022 | 172,056 | ||||||||||||||||||||||||
Weighted-average common shares outstanding - Basic | 169,569 | 169,675 | 170,445 | 170,415 | 171,210 | ||||||||||||||||||||||||
Weighted-average common shares outstanding - Diluted | 169,894 | 169,937 | 170,704 | 170,623 | 171,350 | ||||||||||||||||||||||||
WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
|
|||||||||||||||||
(In thousands) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||||||||||
Assets: | |||||||||||||||||
Cash and due from banks | $ | 721,261 | $ | 333,138 | $ | 406,300 | |||||||||||
Interest-bearing deposits | 2,476,290 | 1,202,515 | 1,766,431 | ||||||||||||||
Investment securities: | |||||||||||||||||
Available-for-sale | 8,594,978 | 7,808,874 | 7,653,391 | ||||||||||||||
Held-to-maturity, net | 8,565,936 | 8,637,654 | 6,875,772 | ||||||||||||||
Total investment securities, net | 17,160,914 | 16,446,528 | 14,529,163 | ||||||||||||||
Loans held for sale | 117,615 | 248,137 | 46,267 | ||||||||||||||
Loans and leases: | |||||||||||||||||
Commercial | 20,120,992 | 19,492,433 | 19,691,486 | ||||||||||||||
Commercial real estate | 21,691,377 | 22,277,813 | 20,583,254 | ||||||||||||||
Residential mortgages | 8,576,612 | 8,284,297 | 8,228,451 | ||||||||||||||
Consumer | 1,558,034 | 1,518,922 | 1,584,955 | ||||||||||||||
Total loans and leases | 51,947,015 | 51,573,465 | 50,088,146 | ||||||||||||||
Allowance for credit losses on loans and leases | (687,798) | (669,355) | (635,438) | ||||||||||||||
Total loans and leases, net | 51,259,217 | 50,904,110 | 49,452,708 | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 360,795 | 348,263 | 306,085 | ||||||||||||||
Premises and equipment, net | 411,070 | 417,700 | 431,698 | ||||||||||||||
Goodwill and other intangible assets, net | 3,212,050 | 3,242,193 | 2,843,217 | ||||||||||||||
Cash surrender value of life insurance policies | 1,247,624 | 1,241,367 | 1,242,648 | ||||||||||||||
Deferred tax assets, net | 273,174 | 354,482 | 478,926 | ||||||||||||||
Accrued interest receivable and other assets | 2,213,890 | 2,099,673 | 1,627,408 | ||||||||||||||
Total assets | $ | 79,453,900 | $ | 76,838,106 | $ | 73,130,851 | |||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $ | 10,744,524 | $ | 9,996,274 | $ | 11,410,063 | |||||||||||
Health savings accounts | 8,951,383 | 8,474,857 | 8,229,889 | ||||||||||||||
Interest-bearing checking | 10,016,651 | 9,509,202 | 8,826,265 | ||||||||||||||
Money market | 20,460,382 | 19,559,083 | 17,755,198 | ||||||||||||||
Savings | 6,921,459 | 6,965,774 | 6,622,833 | ||||||||||||||
Certificates of deposit | 6,020,031 | 5,861,431 | 5,150,139 | ||||||||||||||
Brokered certificates of deposit | 1,400,000 | 1,910,071 | 2,337,380 | ||||||||||||||
Total deposits | 64,514,430 | 62,276,692 | 60,331,767 | ||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 100,232 | 239,524 | 157,491 | ||||||||||||||
Federal Home Loan Bank advances | 3,110,205 | 2,809,843 | 1,810,218 | ||||||||||||||
Long-term debt | 910,963 | 912,743 | 1,050,539 | ||||||||||||||
Accrued expenses and other liabilities | 1,620,020 | 1,790,036 | 1,581,635 | ||||||||||||||
Total liabilities | 70,255,850 | 68,028,838 | 64,931,650 | ||||||||||||||
Preferred stock | 283,979 | 283,979 | 283,979 | ||||||||||||||
Common stockholders’ equity | 8,914,071 | 8,525,289 | 7,915,222 | ||||||||||||||
Total stockholders’ equity | 9,198,050 | 8,809,268 | 8,199,201 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 79,453,900 | $ | 76,838,106 | $ | 73,130,851 | |||||||||||
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
|
||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 809,184 | $ | 793,626 | $ | 2,399,326 | $ | 2,281,955 | ||||||||||||||||||
Interest on investment securities | 176,722 | 113,395 | 485,134 | 321,964 | ||||||||||||||||||||||
Loans held for sale | 5,400 | 17 | 11,075 | 454 | ||||||||||||||||||||||
Other interest and dividends | 12,757 | 23,751 | 36,664 | 90,740 | ||||||||||||||||||||||
Total interest income | 1,004,063 | 930,789 | 2,932,199 | 2,695,113 | ||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 371,075 | 293,955 | 1,068,309 | 695,625 | ||||||||||||||||||||||
Borrowings | 43,105 | 49,698 | 133,971 | 233,240 | ||||||||||||||||||||||
Total interest expense | 414,180 | 343,653 | 1,202,280 | 928,865 | ||||||||||||||||||||||
Net interest income | 589,883 | 587,136 | 1,729,919 | 1,766,248 | ||||||||||||||||||||||
Provision for credit losses | 54,000 | 36,500 | 158,500 | 114,747 | ||||||||||||||||||||||
Net interest income after provision for loan and lease losses | 535,883 | 550,636 | 1,571,419 | 1,651,501 | ||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Deposit service fees | 38,863 | 41,005 | 122,479 | 131,859 | ||||||||||||||||||||||
Loan and lease related fees | 18,513 | 19,966 | 57,614 | 63,499 | ||||||||||||||||||||||
Wealth and investment services | 8,367 | 7,254 | 24,847 | 21,232 | ||||||||||||||||||||||
Cash surrender value of life insurance policies | 8,020 | 6,620 | 20,325 | 19,641 | ||||||||||||||||||||||
(Loss) on sale of investment securities, net | (19,597) | — | (79,338) | (16,795) | ||||||||||||||||||||||
Other income | 3,575 | 15,537 | 53,465 | 31,086 | ||||||||||||||||||||||
Total non-interest income | 57,741 | 90,382 | 199,392 | 250,522 | ||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Compensation and benefits | 194,736 | 180,333 | 570,126 | 526,838 | ||||||||||||||||||||||
Occupancy | 18,879 | 18,617 | 53,421 | 59,042 | ||||||||||||||||||||||
Technology and equipment | 56,696 | 55,261 | 147,835 | 151,442 | ||||||||||||||||||||||
Marketing | 4,224 | 4,810 | 12,612 | 13,446 | ||||||||||||||||||||||
Professional and outside services | 16,001 | 26,874 | 43,048 | 88,693 | ||||||||||||||||||||||
Intangible assets amortization | 8,491 | 8,899 | 26,401 | 27,589 | ||||||||||||||||||||||
Deposit insurance | 13,555 | 13,310 | 52,843 | 39,356 | ||||||||||||||||||||||
Other expenses | 36,376 | 54,474 | 104,616 | 132,728 | ||||||||||||||||||||||
Total non-interest expense | 348,958 | 362,578 | 1,010,902 | 1,039,134 | ||||||||||||||||||||||
Income before income taxes | 244,666 | 278,440 | 759,909 | 862,889 | ||||||||||||||||||||||
Income tax expense | 51,681 | 51,965 | 168,968 | 180,442 | ||||||||||||||||||||||
Net income | 192,985 | 226,475 | 590,941 | 682,447 | ||||||||||||||||||||||
Preferred stock dividends | (4,162) | (4,162) | (12,487) | (12,487) | ||||||||||||||||||||||
Net income available to common stockholders | $ | 188,823 | $ | 222,313 | $ | 578,454 | $ | 669,960 | ||||||||||||||||||
Weighted-average common shares outstanding - Diluted | 169,894 | 171,350 | 170,226 | 172,326 | ||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||
Basic | $ | 1.10 | $ | 1.29 | $ | 3.37 | $ | 3.85 | ||||||||||||||||||
Diluted | 1.10 | 1.28 | 3.36 | 3.85 | ||||||||||||||||||||||
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
|
|||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
(In thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 809,184 | $ | 798,097 | $ | 792,045 | $ | 789,423 | $ | 793,626 | |||||||||||||||||||
Interest on investment securities | 176,722 | 160,827 | 147,585 | 128,924 | 113,395 | ||||||||||||||||||||||||
Loans held for sale | 5,400 | 5,593 | 82 | 280 | 17 | ||||||||||||||||||||||||
Other interest and dividends | 12,757 | 11,769 | 12,138 | 14,520 | 23,751 | ||||||||||||||||||||||||
Total interest income | 1,004,063 | 976,286 | 951,850 | 933,147 | 930,789 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 371,075 | 361,263 | 335,971 | 325,793 | 293,955 | ||||||||||||||||||||||||
Borrowings | 43,105 | 42,726 | 48,140 | 36,333 | 49,698 | ||||||||||||||||||||||||
Total interest expense | 414,180 | 403,989 | 384,111 | 362,126 | 343,653 | ||||||||||||||||||||||||
Net interest income | 589,883 | 572,297 | 567,739 | 571,021 | 587,136 | ||||||||||||||||||||||||
Provision for credit losses | 54,000 | 59,000 | 45,500 | 36,000 | 36,500 | ||||||||||||||||||||||||
Net interest income after provision for loan and lease losses | 535,883 | 513,297 | 522,239 | 535,021 | 550,636 | ||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Deposit service fees | 38,863 | 41,027 | 42,589 | 37,459 | 41,005 | ||||||||||||||||||||||||
Loan and lease related fees | 18,513 | 19,334 | 19,767 | 21,362 | 19,966 | ||||||||||||||||||||||||
Wealth and investment services | 8,367 | 8,556 | 7,924 | 7,767 | 7,254 | ||||||||||||||||||||||||
Cash surrender value of life insurance policies | 8,020 | 6,359 | 5,946 | 6,587 | 6,620 | ||||||||||||||||||||||||
(Loss) on sale of investment securities, net | (19,597) | (49,915) | (9,826) | (16,825) | — | ||||||||||||||||||||||||
Other income | 3,575 | 16,937 | 32,953 | 7,465 | 15,537 | ||||||||||||||||||||||||
Total non-interest income | 57,741 | 42,298 | 99,353 | 63,815 | 90,382 | ||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Compensation and benefits | 194,736 | 186,850 | 188,540 | 184,914 | 180,333 | ||||||||||||||||||||||||
Occupancy | 18,879 | 15,103 | 19,439 | 18,478 | 18,617 | ||||||||||||||||||||||||
Technology and equipment | 56,696 | 45,303 | 45,836 | 46,486 | 55,261 | ||||||||||||||||||||||||
Marketing | 4,224 | 4,107 | 4,281 | 5,176 | 4,810 | ||||||||||||||||||||||||
Professional and outside services | 16,001 | 14,066 | 12,981 | 18,804 | 26,874 | ||||||||||||||||||||||||
Intangible assets amortization | 8,491 | 8,716 | 9,194 | 8,618 | 8,899 | ||||||||||||||||||||||||
Deposit insurance | 13,555 | 15,065 | 24,223 | 58,725 | 13,310 | ||||||||||||||||||||||||
Other expenses | 36,376 | 36,811 | 31,429 | 36,020 | 54,474 | ||||||||||||||||||||||||
Total non-interest expense | 348,958 | 326,021 | 335,923 | 377,221 | 362,578 | ||||||||||||||||||||||||
Income before income taxes | 244,666 | 229,574 | 285,669 | 221,615 | 278,440 | ||||||||||||||||||||||||
Income tax expense | 51,681 | 47,941 | 69,346 | 36,222 | 51,965 | ||||||||||||||||||||||||
Net income | 192,985 | 181,633 | 216,323 | 185,393 | 226,475 | ||||||||||||||||||||||||
Preferred stock dividends | (4,162) | (4,162) | (4,163) | (4,163) | (4,162) | ||||||||||||||||||||||||
Net income available to common stockholders | $ | 188,823 | $ | 177,471 | $ | 212,160 | $ | 181,230 | $ | 222,313 | |||||||||||||||||||
Weighted-average common shares outstanding - Diluted | 169,894 | 169,937 | 170,704 | 170,623 | 171,350 | ||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||
Basic | $ | 1.10 | $ | 1.03 | $ | 1.23 | $ | 1.05 | $ | 1.29 | |||||||||||||||||||
Diluted | 1.10 | 1.03 | 1.23 | 1.05 | 1.28 | ||||||||||||||||||||||||
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields/Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
| |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average balance |
Interest | Yield/rate | Average balance |
Interest | Yield/rate | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans and leases | $ | 51,752,193 | $ | 820,209 | 6.22 | % | $ | 50,912,188 | $ | 804,930 | 6.20 | % | |||||||||||||||||||||||
Investment securities (1) |
16,886,464 | 179,356 | 4.10 | 14,686,798 | 119,997 | 3.09 | |||||||||||||||||||||||||||||
Federal Home Loan and Federal Reserve Bank stock | 340,330 | 4,383 | 5.12 | 355,495 | 7,619 | 8.50 | |||||||||||||||||||||||||||||
Interest-bearing deposits | 629,180 | 8,374 | 5.21 | 1,187,096 | 16,132 | 5.32 | |||||||||||||||||||||||||||||
Loans held for sale | 216,735 | 5,400 | 9.97 | 6,756 | 17 | 1.03 | |||||||||||||||||||||||||||||
Total interest-earning assets | 69,824,902 | $ | 1,017,722 | 5.69 | % | 67,148,333 | $ | 948,695 | 5.49 | % | |||||||||||||||||||||||||
Non-interest-earning assets | 6,980,399 | 6,459,493 | |||||||||||||||||||||||||||||||||
Total assets | $ | 76,805,301 | $ | 73,607,826 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 10,243,045 | $ | — | — | % | $ | 11,335,734 | $ | — | — | % | |||||||||||||||||||||||
Health savings accounts | 8,546,941 | 3,257 | 0.15 | 8,235,632 | 3,126 | 0.15 | |||||||||||||||||||||||||||||
Interest-bearing checking, money market and savings | 36,599,576 | 286,280 | 3.11 | 32,673,899 | 214,891 | 2.61 | |||||||||||||||||||||||||||||
Certificates of deposit and brokered deposits | 7,190,093 | 81,538 | 4.51 | 7,342,757 | 75,938 | 4.10 | |||||||||||||||||||||||||||||
Total deposits | 62,579,655 | 371,075 | 2.36 | 59,588,022 | 293,955 | 1.96 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 125,738 | 38 | 0.12 | 170,256 | 50 | 0.12 | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 2,535,497 | 35,172 | 5.43 | 2,945,136 | 40,196 | 5.34 | |||||||||||||||||||||||||||||
Long-term debt (1) |
911,834 | 7,895 | 3.56 | 1,051,380 | 9,452 | 3.70 | |||||||||||||||||||||||||||||
Total borrowings | 3,573,069 | 43,105 | 4.77 | 4,166,772 | 49,698 | 4.72 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 66,152,724 | $ | 414,180 | 2.49 | % | 63,754,794 | $ | 343,653 | 2.14 | % | |||||||||||||||||||||||||
Non-interest-bearing liabilities | 1,657,443 | 1,482,563 | |||||||||||||||||||||||||||||||||
Total liabilities | 67,810,167 | 65,237,357 | |||||||||||||||||||||||||||||||||
Preferred stock | 283,979 | 283,979 | |||||||||||||||||||||||||||||||||
Common stockholders’ equity | 8,711,155 | 8,086,490 | |||||||||||||||||||||||||||||||||
Total stockholders’ equity | 8,995,134 | 8,370,469 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 76,805,301 | $ | 73,607,826 | |||||||||||||||||||||||||||||||
Tax-equivalent net interest income | 603,542 | 605,042 | |||||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustments | (13,659) | (17,906) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 589,883 | $ | 587,136 | |||||||||||||||||||||||||||||||
Net interest margin | 3.36 | % | 3.49 | % | |||||||||||||||||||||||||||||||
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Yields/Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
| |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance |
Interest | Yield/Rate | Average balance |
Interest | Yield/Rate | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans and leases | $ | 51,376,513 | $ | 2,430,382 | 6.23 | % | $ | 50,733,691 | $ | 2,313,030 | 6.02 | % | |||||||||||||||||||||||
Investment securities (1) |
16,505,404 | 497,931 | 3.87 | 14,700,296 | 341,998 | 2.95 | |||||||||||||||||||||||||||||
Federal Home Loan and Federal Reserve Bank stock | 340,222 | 13,901 | 5.46 | 442,429 | 19,204 | 5.80 | |||||||||||||||||||||||||||||
Interest-bearing deposits | 563,217 | 22,763 | 5.31 | 1,872,657 | 71,536 | 5.04 | |||||||||||||||||||||||||||||
Loans held for sale | 150,985 | 11,075 | 9.78 | 35,982 | 454 | 1.68 | |||||||||||||||||||||||||||||
Total interest-earning assets | 68,936,341 | $ | 2,976,052 | 5.65 | % | 67,785,055 | $ | 2,746,222 | 5.30 | % | |||||||||||||||||||||||||
Non-interest-earning assets | 7,091,307 | 6,271,968 | |||||||||||||||||||||||||||||||||
Total assets | $ | 76,027,648 | $ | 74,057,023 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 10,327,076 | $ | — | — | % | $ | 11,775,500 | $ | — | — | % | |||||||||||||||||||||||
Health savings accounts | 8,560,303 | 9,654 | 0.15 | 8,259,408 | 9,243 | 0.15 | |||||||||||||||||||||||||||||
Interest-bearing checking, money market and savings | 35,227,682 | 799,939 | 3.03 | 31,442,258 | 516,646 | 2.20 | |||||||||||||||||||||||||||||
Certificates of deposit and brokered deposits | 7,508,481 | 258,716 | 4.60 | 6,192,415 | 169,736 | 3.66 | |||||||||||||||||||||||||||||
Total deposits | 61,623,542 | 1,068,309 | 2.32 | 57,669,581 | 695,625 | 1.61 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 198,029 | 3,260 | 2.16 | 430,989 | 7,940 | 2.43 | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 2,551,535 | 106,266 | 5.47 | 5,104,372 | 196,878 | 5.09 | |||||||||||||||||||||||||||||
Long-term debt (1) |
935,370 | 24,445 | 3.58 | 1,061,643 | 28,422 | 3.68 | |||||||||||||||||||||||||||||
Total borrowings | 3,684,934 | 133,971 | 4.82 | 6,597,004 | 233,240 | 4.69 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 65,308,476 | $ | 1,202,280 | 2.46 | % | 64,266,585 | $ | 928,865 | 1.93 | % | |||||||||||||||||||||||||
Non-interest-bearing liabilities | 1,888,947 | 1,462,723 | |||||||||||||||||||||||||||||||||
Total liabilities | 67,197,423 | 65,729,308 | |||||||||||||||||||||||||||||||||
Preferred stock | 283,979 | 283,979 | |||||||||||||||||||||||||||||||||
Common stockholders’ equity | 8,546,246 | 8,043,736 | |||||||||||||||||||||||||||||||||
Total stockholders’ equity | 8,830,225 | 8,327,715 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 76,027,648 | $ | 74,057,023 | |||||||||||||||||||||||||||||||
Tax-equivalent net interest income | 1,773,772 | 1,817,357 | |||||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustments | (43,853) | (51,109) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 1,729,919 | $ | 1,766,248 | |||||||||||||||||||||||||||||||
Net interest margin | 3.34 | % | 3.49 | % | |||||||||||||||||||||||||||||||
WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited) |
|||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||||||||||||
Loans and leases (actual): | |||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 18,657,089 | $ | 18,021,758 | $ | 17,976,128 | $ | 18,214,261 | $ | 18,058,524 | |||||||||||||||||||
Asset-based lending | 1,463,903 | 1,470,675 | 1,492,886 | 1,557,841 | 1,632,962 | ||||||||||||||||||||||||
Commercial real estate | 21,691,377 | 22,277,813 | 21,869,502 | 21,157,732 | 20,583,254 | ||||||||||||||||||||||||
Residential mortgages | 8,576,612 | 8,284,297 | 8,226,154 | 8,227,923 | 8,228,451 | ||||||||||||||||||||||||
Consumer | 1,558,034 | 1,518,922 | 1,533,972 | 1,568,295 | 1,584,955 | ||||||||||||||||||||||||
Total loans and leases | 51,947,015 | 51,573,465 | 51,098,642 | 50,726,052 | 50,088,146 | ||||||||||||||||||||||||
Allowance for credit losses on loans and leases | (687,798) | (669,355) | (641,442) | (635,737) | (635,438) | ||||||||||||||||||||||||
Total loans and leases, net | $ | 51,259,217 | $ | 50,904,110 | $ | 50,457,200 | $ | 50,090,315 | $ | 49,452,708 | |||||||||||||||||||
Loans and leases (average): | |||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 18,166,258 | $ | 17,995,654 | $ | 18,235,402 | $ | 18,181,417 | $ | 18,839,776 | |||||||||||||||||||
Asset-based lending | 1,452,794 | 1,473,175 | 1,523,616 | 1,588,350 | 1,663,481 | ||||||||||||||||||||||||
Commercial real estate | 22,215,293 | 22,186,566 | 21,403,765 | 20,764,834 | 20,614,334 | ||||||||||||||||||||||||
Residential mortgages | 8,390,613 | 8,252,397 | 8,225,151 | 8,240,390 | 8,200,938 | ||||||||||||||||||||||||
Consumer | 1,527,235 | 1,527,007 | 1,550,484 | 1,577,349 | 1,593,659 | ||||||||||||||||||||||||
Total loans and leases | $ | 51,752,193 | $ | 51,434,799 | $ | 50,938,418 | $ | 50,352,340 | $ | 50,912,188 | |||||||||||||||||||
WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited)
|
|||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||||||||||||
Nonperforming loans and leases: | |||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 215,834 | $ | 210,906 | $ | 203,626 | $ | 134,617 | $ | 121,067 | |||||||||||||||||||
Asset-based lending | 29,791 | 29,791 | 34,915 | 35,090 | 10,350 | ||||||||||||||||||||||||
Commercial real estate | 150,711 | 96,337 | 14,323 | 11,314 | 31,004 | ||||||||||||||||||||||||
Residential mortgages | 9,098 | 11,345 | 8,407 | 5,591 | 27,312 | ||||||||||||||||||||||||
Consumer | 20,183 | 20,457 | 22,341 | 22,932 | 25,320 | ||||||||||||||||||||||||
Total nonperforming loans and leases | $ | 425,617 | $ | 368,836 | $ | 283,612 | $ | 209,544 | $ | 215,053 | |||||||||||||||||||
Other real estate owned and repossessed assets: | |||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 504 | $ | 5,013 | $ | 5,540 | $ | 8,954 | $ | 2,687 | |||||||||||||||||||
Residential mortgages | 221 | — | — | — | 662 | ||||||||||||||||||||||||
Consumer | 932 | 1,035 | 102 | 102 | — | ||||||||||||||||||||||||
Total other real estate owned and repossessed assets | $ | 1,657 | $ | 6,048 | $ | 5,642 | $ | 9,056 | $ | 3,349 | |||||||||||||||||||
Total nonperforming assets | $ | 427,274 | $ | 374,884 | $ | 289,254 | $ | 218,600 | $ | 218,402 |
Past due 30-89 days: | |||||||||||||||||||||||||||||
Commercial non-mortgage | $ | 45,123 | $ | 134,794 | $ | 15,365 | $ | 7,071 | $ | 38,875 | |||||||||||||||||||
Commercial real estate | 36,110 | 10,284 | 72,999 | 9,002 | 3,491 | ||||||||||||||||||||||||
Residential mortgages | 18,153 | 13,008 | 17,580 | 21,047 | 16,208 | ||||||||||||||||||||||||
Consumer | 9,471 | 8,185 | 6,824 | 9,417 | 12,016 | ||||||||||||||||||||||||
Total past due 30-89 days | $ | 108,857 | $ | 166,271 | $ | 112,768 | $ | 46,537 | $ | 70,590 | |||||||||||||||||||
Past due 90 days or more and accruing | 71 | 9 | 12,460 | 52 | 138 | ||||||||||||||||||||||||
Total past due loans and leases | $ | 108,928 | $ | 166,280 | $ | 125,228 | $ | 46,589 | $ | 70,728 |
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited) |
|||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||||||||||||
ACL on loans and leases, beginning balance | $ | 669,355 | $ | 641,442 | $ | 635,737 | $ | 635,438 | $ | 628,911 | |||||||||||||||||||
Provision | 53,869 | 61,041 | 43,194 | 34,300 | 35,839 | ||||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial portfolio | 36,362 | 33,356 | 38,461 | 28,794 | 27,360 | ||||||||||||||||||||||||
Consumer portfolio | 997 | 1,418 | 1,330 | 6,878 | 3,642 | ||||||||||||||||||||||||
Total charge-offs | 37,359 | 34,774 | 39,791 | 35,672 | 31,002 | ||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial portfolio | 377 | 360 | 553 | 396 | 292 | ||||||||||||||||||||||||
Consumer portfolio | 1,556 | 1,286 | 1,749 | 1,275 | 1,398 | ||||||||||||||||||||||||
Total recoveries | 1,933 | 1,646 | 2,302 | 1,671 | 1,690 | ||||||||||||||||||||||||
Total net charge-offs | 35,426 | 33,128 | 37,489 | 34,001 | 29,312 | ||||||||||||||||||||||||
ACL on loans and leases, ending balance | $ | 687,798 | $ | 669,355 | $ | 641,442 | $ | 635,737 | $ | 635,438 | |||||||||||||||||||
ACL on unfunded loan commitments, ending balance | 22,598 | 22,456 | 24,495 | 24,734 | 23,040 | ||||||||||||||||||||||||
ACL, ending balance | $ | 710,396 | $ | 691,811 | $ | 665,937 | $ | 660,471 | $ | 658,478 |
Three Months Ended | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||||||||||||||||||||
Efficiency ratio: | ||||||||||||||||||||||||||||||||
Non-interest expense | $ | 348,958 | $ | 326,021 | $ | 335,923 | $ | 377,221 | $ | 362,578 | ||||||||||||||||||||||
Less: Foreclosed property activity | (687) | (364) | (330) | (96) | (492) | |||||||||||||||||||||||||||
Intangible assets amortization | 8,491 | 8,716 | 9,194 | 8,618 | 8,899 | |||||||||||||||||||||||||||
Operating lease depreciation | 197 | 560 | 663 | 900 | 1,146 | |||||||||||||||||||||||||||
FDIC special assessment | (1,544) | — | 11,862 | 47,164 | — | |||||||||||||||||||||||||||
Merger related expenses (1) |
— | — | 3,139 | 30,679 | 61,625 | |||||||||||||||||||||||||||
Strategic restructuring costs and other | 22,169 | — | — | — | — | |||||||||||||||||||||||||||
Adjusted non-interest expense | $ | 320,332 | $ | 317,109 | $ | 311,395 | $ | 289,956 | $ | 291,400 | ||||||||||||||||||||||
Net interest income | $ | 589,883 | $ | 572,297 | $ | 567,739 | $ | 571,021 | $ | 587,136 | ||||||||||||||||||||||
Add: Tax-equivalent adjustment | 13,659 | 14,315 | 15,879 | 17,830 | 17,906 | |||||||||||||||||||||||||||
Non-interest income | 57,741 | 42,298 | 99,353 | 63,815 | 90,382 | |||||||||||||||||||||||||||
Other income (2) |
7,448 | 7,802 | 7,626 | 5,099 | 3,614 | |||||||||||||||||||||||||||
Less: Operating lease depreciation | 197 | 560 | 663 | 900 | 1,146 | |||||||||||||||||||||||||||
(Loss) on sale of investment securities, net | (19,597) | (49,915) | (9,826) | (16,825) | — | |||||||||||||||||||||||||||
Exit of non-core operations | (15,977) | — | — | — | — | |||||||||||||||||||||||||||
Net gain on sale of mortgage servicing rights | — | — | 11,655 | — | — | |||||||||||||||||||||||||||
Adjusted income | $ | 704,108 | $ | 686,067 | $ | 688,105 | $ | 673,690 | $ | 697,892 | ||||||||||||||||||||||
Efficiency ratio | 45.49% | 46.22% | 45.25% | 43.04% | 41.75% | |||||||||||||||||||||||||||
ROATCE: | ||||||||||||||||||||||||||||||||
Net income | $ | 192,985 | $ | 181,633 | $ | 216,323 | $ | 185,393 | $ | 226,475 | ||||||||||||||||||||||
Less: Preferred stock dividends | 4,162 | 4,162 | 4,163 | 4,163 | 4,162 | |||||||||||||||||||||||||||
Add: Intangible assets amortization, tax-effected | 6,708 | 6,886 | 7,263 | 6,808 | 7,030 | |||||||||||||||||||||||||||
Adjusted net income | $ | 195,531 | $ | 184,357 | $ | 219,423 | $ | 188,038 | $ | 229,343 | ||||||||||||||||||||||
Adjusted net income, annualized basis | $ | 782,124 | $ | 737,428 | $ | 877,692 | $ | 752,152 | $ | 917,372 | ||||||||||||||||||||||
Average stockholders’ equity | $ | 8,995,134 | $ | 8,733,737 | $ | 8,759,992 | $ | 8,312,798 | $ | 8,370,469 | ||||||||||||||||||||||
Less: Average preferred stock | 283,979 | 283,979 | 283,979 | 283,979 | 283,979 | |||||||||||||||||||||||||||
Average goodwill and other intangible assets, net | 3,238,115 | 3,246,940 | 3,090,751 | 2,838,770 | 2,847,560 | |||||||||||||||||||||||||||
Average tangible common stockholders’ equity | $ | 5,473,040 | $ | 5,202,818 | $ | 5,385,262 | $ | 5,190,049 | $ | 5,238,930 | ||||||||||||||||||||||
Return on average tangible common stockholders’ equity | 14.29% | 14.17% | 16.30% | 14.49% | 17.51% |
(In thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||||||||||||||||||||
Tangible equity: | ||||||||||||||||||||||||||||||||
Stockholders’ equity | $ | 9,198,050 | $ | 8,809,268 | $ | 8,747,498 | $ | 8,689,996 | $ | 8,199,201 | ||||||||||||||||||||||
Less: Goodwill and other intangible assets, net | 3,212,050 | 3,242,193 | 3,250,909 | 2,834,600 | 2,843,217 | |||||||||||||||||||||||||||
Tangible stockholders’ equity | $ | 5,986,000 | $ | 5,567,075 | $ | 5,496,589 | $ | 5,855,396 | $ | 5,355,984 | ||||||||||||||||||||||
Total assets | $ | 79,453,900 | $ | 76,838,106 | $ | 76,161,693 | $ | 74,945,249 | $ | 73,130,851 | ||||||||||||||||||||||
Less: Goodwill and other intangible assets, net | 3,212,050 | 3,242,193 | 3,250,909 | 2,834,600 | 2,843,217 | |||||||||||||||||||||||||||
Tangible assets | $ | 76,241,850 | $ | 73,595,913 | $ | 72,910,784 | $ | 72,110,649 | $ | 70,287,634 | ||||||||||||||||||||||
Tangible equity | 7.85% | 7.56% | 7.54% | 8.12% | 7.62% | |||||||||||||||||||||||||||
Tangible common equity: | ||||||||||||||||||||||||||||||||
Tangible stockholders’ equity | $ | 5,986,000 | $ | 5,567,075 | $ | 5,496,589 | $ | 5,855,396 | $ | 5,355,984 | ||||||||||||||||||||||
Less: Preferred stock | 283,979 | 283,979 | 283,979 | 283,979 | 283,979 | |||||||||||||||||||||||||||
Tangible common stockholders’ equity | $ | 5,702,021 | $ | 5,283,096 | $ | 5,212,610 | $ | 5,571,417 | $ | 5,072,005 | ||||||||||||||||||||||
Tangible assets | $ | 76,241,850 | $ | 73,595,913 | $ | 72,910,784 | $ | 72,110,649 | $ | 70,287,634 | ||||||||||||||||||||||
Tangible common equity | 7.48% | 7.18% | 7.15% | 7.73% | 7.22% | |||||||||||||||||||||||||||
Tangible book value per common share: | ||||||||||||||||||||||||||||||||
Tangible common stockholders’ equity | $ | 5,702,021 | $ | 5,283,096 | $ | 5,212,610 | $ | 5,571,417 | $ | 5,072,005 | ||||||||||||||||||||||
Common shares outstanding | 171,428 | 171,402 | 172,464 | 172,022 | 172,056 | |||||||||||||||||||||||||||
Tangible book value per common share | $ | 33.26 | $ | 30.82 | $ | 30.22 | $ | 32.39 | $ | 29.48 | ||||||||||||||||||||||
Core deposits: | ||||||||||||||||||||||||||||||||
Total deposits | $ | 64,514,430 | $ | 62,276,692 | $ | 60,747,743 | $ | 60,784,284 | $ | 60,331,767 | ||||||||||||||||||||||
Less: Certificates of deposit | 6,020,031 | 5,861,431 | 5,928,773 | 5,574,048 | 5,150,139 | |||||||||||||||||||||||||||
Brokered certificates of deposit | 1,400,000 | 1,910,071 | 1,008,547 | 2,890,411 | 2,337,380 | |||||||||||||||||||||||||||
Core deposits | $ | 57,094,399 | $ | 54,505,190 | $ | 53,810,423 | $ | 52,319,825 | $ | 52,844,248 |
Three Months Ended September 30, 2024 |
||||||||
Adjusted ROATCE: | ||||||||
Net income | $ | 192,985 | ||||||
Less: Preferred stock dividends | 4,162 | |||||||
Add: Intangible assets amortization, tax-effected | 6,708 | |||||||
Loss on sale of investment securities, net, tax-effected | 14,283 | |||||||
Exit of non-core operations, tax-effected | 11,644 | |||||||
Strategic restructuring costs and other, tax-effected | 16,158 | |||||||
FDIC special assessment, tax-effected | (1,125) | |||||||
Adjusted net income | $ | 236,491 | ||||||
Adjusted net income, annualized basis | $ | 945,964 | ||||||
Average stockholders’ equity | $ | 8,995,134 | ||||||
Less: Average preferred stock | 283,979 | |||||||
Average goodwill and other intangible assets, net | 3,238,115 | |||||||
Average tangible common stockholders’ equity | $ | 5,473,040 | ||||||
Adjusted return on average tangible common stockholders’ equity | 17.28 | % | ||||||
Adjusted ROAA: | ||||||||
Net income | $ | 192,985 | ||||||
Add: Loss on sale of investment securities, tax-effected | 14,283 | |||||||
Exit of non-core operations, tax-effected | 11,644 | |||||||
Strategic restructuring costs and other, tax-effected | 16,158 | |||||||
FDIC special assessment, tax-effected | (1,125) | |||||||
Adjusted net income | $ | 233,945 | ||||||
Adjusted net income, annualized basis | $ | 935,780 | ||||||
Average assets | $ | 76,805,301 | ||||||
Adjusted return on average assets | 1.22 | % |
GAAP to adjusted reconciliation: | Three Months Ended September 30, 2024 | |||||||||||||||||||
(In millions, except per share data) | Pre-Tax Income | Net Income Available to Common Stockholders | Diluted EPS | |||||||||||||||||
Reported (GAAP) | $ | 244.7 | $ | 188.8 | $ | 1.10 | ||||||||||||||
Loss on sale of investment securities, net | 19.6 | 14.3 | 0.08 | |||||||||||||||||
Exit of non-core operations | 16.0 | 11.6 | 0.07 | |||||||||||||||||
Strategic restructuring costs and other | 22.2 | 16.2 | 0.10 | |||||||||||||||||
FDIC special assessment | (1.5) | (1.1) | (0.01) | |||||||||||||||||
Adjusted (non-GAAP) | $ | 300.9 | $ | 229.8 | $ | 1.34 | ||||||||||||||