WBS » Topics » Asset Quality

This excerpt taken from the WBS 8-K filed Oct 21, 2008.

Asset Quality

Total nonperforming assets were $250.5 million or 1.94 percent of total loans and other real estate owned at September 30, 2008 compared to $224.1 million or 1.75 percent at June 30, 2008. The $26.4 million increase in nonperforming assets was primarily comprised of $26.7 million in residential development projects and $7.4 million in residential loans, $2.7 million in consumer loans and $5.7 million in other real estate owned, somewhat offset by declines in commercial loans of $4.0 million, commercial real estate of $0.7 million and liquidating portfolio of $11.4 million. Nonperforming loans in the liquidating indirect national construction and indirect out of footprint home equity portfolio totaled $17.5 million and $10.8 million at September 30, 2008, respectively compared to $29.0 million and $10.7 million at June 30, 2008 and $18.5 million and $4.2 million a year ago. The decline in liquidating nonperforming loans was the result of management’s decision to expedite resolution of the NCLC portfolio.

 

6


LOGO

 

Past due loans for the continuing portfolios totaled $102.1 million at September 30, 2008, an increase of $34.4 million compared to $67.7 million at June 30, 2008. The increase in past due loans in the continuing portfolio was primarily related to increases of $15.5 million in commercial real estate, $13.0 million in residential loans and $5.1 million in consumer loans. Past due loans for the liquidating portfolio totaled $19.1 million at September 30, 2008 compared to $11.5 million at June 30, 2008.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.5 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 484 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.WebsterOnline.com.

***

This excerpt taken from the WBS 8-K filed Jul 22, 2008.

Asset Quality

Nonperforming assets for the continuing portfolios totaled $182.1 million or 1.47 percent of total loans and other real estate owned at June 30, 2008 compared to $113.3 million or 0.93 percent at March 31, 2008. The $68.8 million increase in nonperforming assets from continuing portfolios was primarily comprised of $36.6 million in commercial real estate (primarily 4 residential development projects) and $26.5 million in commercial loans, $3.7 million in consumer loans and $2.0 million in other real estate owned. Nonperforming loans in the liquidating indirect national construction and indirect out of footprint home equity portfolio totaled $29.0 million and $10.7 million at June 30, 2008, respectively compared to $29.8 million and $9.4 million at March 31, 2008 and $13.4 million and $2.7 million a year ago.

Past due loans for the continuing portfolios totaled $67.7 million at June 30, 2008, a decline of $29.8 million compared to $97.5 million at March 31, 2008, primarily due to a decline in commercial real estate loans. Past due loans for the liquidating portfolio totaled $11.5 million at June 30, 2008, down from $15.5 million at March 31, 2008, due to a decline in indirect national construction loans.

The ratio of the allowance for credit losses to nonperforming loans for the continuing portfolios was 96 percent at June 30, 2008 compared to 147 percent at March 31, 2008. At June 30, 2008, the $32.8 million allowance for the liquidating portfolio was 83 percent of non-performing loans from this portfolio compared to 108 percent at March 31, 2008.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.5 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 484 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.WebsterOnline.com.

***

 

6


LOGO

This excerpt taken from the WBS 8-K filed Apr 22, 2008.

Asset Quality

Non-performing assets for the continuing portfolios totaled $113.3 million or 0.93 percent of total loans and other real estate owned at March 31, 2008 compared to $91.2 million or 0.76 percent at December 31, 2007. The increase in non-performing assets from continuing portfolios was primarily comprised of $8.3 million in commercial real estate, $3.9 million in residential, $2.6 million in home equity and $4.6 million in other real estate owned. Non-performing loans in the liquidating indirect national construction and indirect out of footprint home equity portfolio totaled $29.8 million and $9.4 million at March 31, 2008, respectively compared to $22.8 million and $7.1 million at December 31, 2007 and $2.6 million and $2.7 million a year ago.

Past due loans for the continuing portfolios totaled $97.5 million at March 31, 2008 compared to $77.0 million at December 31, 2007. The increase in past due loans from these portfolios consisted primarily of $18.6 million in commercial real estate, $8 million of which was related to delayed extensions of credit related to tax credit issues and not payment issues, and these issues are expected to be resolved in the second quarter of 2008. Past due loans for the liquidating portfolio totaled $15.5 million at March 31, 2008, down from $21.9 million at December 31, 2007, primarily from a decline in indirect national construction loans.

The ratio of the allowance for credit losses to non-performing loans for the continuing portfolios was 147 percent at March 31, 2008 compared to 178 percent at December 31, 2007. At March 31, 2008, the $42.1 million allowance for the discontinued indirect portfolios was 108 percent of non-performing loans from the discontinued portfolios compared to 167 percent at December 31, 2007.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.2 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 181 banking offices, 484 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.WebsterOnline.com.


LOGO

 

***

These excerpts taken from the WBS 10-K filed Feb 28, 2008.

Asset Quality

Asset quality declined in 2007 as nonperforming assets increased to $121.1 million at December 31, 2007 from $61.8 million a year earlier. The increase in nonperforming assets was primarily the result of increases in non-performing loans in the liquidating indirect national construction and indirect out of market home equity portfolio. Residential and consumer non-performing loans within the continuing portfolio increased $12.1 million and $10.7 million, respectively, when compared to the balances at December 31, 2006. Non-performing loans within the liquidating portfolios increased $26.4 million when compared to balances at December 31, 2006. Total commercial nonperforming assets increased $9.6 million when compared to the balances at December 31, 2006. Commercial real estate non-performing assets decreased $4.7 million when compared to the balances at December 31, 2006. The allowance for loan losses increased in 2007 to $188.1 million from $147.7 million in 2006 primarily due to a $51.0 million increase in the provision ($11.0 million was recorded in the third quarter and $40.0 million was recorded in the fourth quarter). The $51.0 million in additional provision related to the $424.0 million of loans in the liquidating indirect residential construction lending and indirect out of market home equity portfolios.

Nonperforming assets, loan delinquency and credit losses are considered to be key measures of asset quality. Asset quality is one of the key factors in the determination of the level of the allowance for credit losses. See “Allowance for Credit Losses” contained elsewhere within this section for further information on the allowance.

Asset Quality

Asset
quality declined in 2007 as nonperforming assets increased to $121.1 million at December 31, 2007 from $61.8 million a year earlier. The increase in nonperforming assets was primarily the result of increases in non-performing loans in the
liquidating indirect national construction and indirect out of market home equity portfolio. Residential and consumer non-performing loans within the continuing portfolio increased $12.1 million and $10.7 million, respectively, when compared to the
balances at December 31, 2006. Non-performing loans within the liquidating portfolios increased $26.4 million when compared to balances at December 31, 2006. Total commercial nonperforming assets increased $9.6 million when compared to the
balances at December 31, 2006. Commercial real estate non-performing assets decreased $4.7 million when compared to the balances at December 31, 2006. The allowance for loan losses increased in 2007 to $188.1 million from $147.7 million in
2006 primarily due to a $51.0 million increase in the provision ($11.0 million was recorded in the third quarter and $40.0 million was recorded in the fourth quarter). The $51.0 million in additional provision related to the $424.0 million of loans
in the liquidating indirect residential construction lending and indirect out of market home equity portfolios.

Nonperforming assets, loan delinquency and
credit losses are considered to be key measures of asset quality. Asset quality is one of the key factors in the determination of the level of the allowance for credit losses. See “Allowance for Credit Losses” contained elsewhere
within this section for further information on the allowance.

This excerpt taken from the WBS 8-K filed Jan 24, 2008.

Asset Quality

Non-performing assets totaled $121.1 million or 0.97 percent of total loans and other real estate owned at December 31, 2007 compared to $104.2 million or 0.84 percent at September 30, 2007 and $61.8 million or 0.48 percent a year ago. Non-performing loans in the liquidating indirect national construction and indirect out of footprint home equity portfolio totaled $22.8 million and $7.1 million at December 31, 2007, respectively compared to $18.5 million and $4.2 million at September 30, 2007 respectively and $1.1 million and $2.5 million a year ago. Non-performing assets from the ongoing portfolios totaled $91.2 million or 0.73 percent of total loans at December 31, 2007. The increase in non-performing assets from September 30, 2007 was primarily composed of $4.7 million in residential, $1.8 million in home equity, and $4.3 million and $2.9 million from the discontinued liquidating indirect national construction and indirect, out of footprint home equity portfolios.

The ratio of the allowance for credit losses to non-performing loans was 175 percent at December 31, 2007 compared to 172 percent at September 30, 2007 and 263 percent a year ago. At December 31, 2007, the $49.9 million allowance for the discontinued indirect portfolios was 153 percent of non-performing loans from the discontinued portfolios, while the $147.7 million allowance for the continuing portfolios was 184 percent of non-performing loans from the continuing portfolios.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.2 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 181 banking offices, 343 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company, and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank.

This excerpt taken from the WBS 8-K filed Oct 23, 2007.

Asset Quality

Nonperforming assets totaled $104.2 million, or 0.84 percent of total loans and other real estate owned at September 30, 2007, compared to $78.7 million, or 0.63 percent, at June 30 and $61.4 million, or 0.47 percent, a year ago. Nonperforming assets in the residential portfolio totaled $34.3 million at September 30 compared to $27.4 million at June 30 and $7.6 million a year ago, with the majority of the increase coming from residential construction loans originated by Webster’s National Wholesale Lending operation. Webster previously announced it had discontinued residential construction lending outside of its New England market area, and has allocated reserves against these loans. Nonperforming assets in the consumer portfolio totaled $19.5 million at September 30 compared to $12.3 million at June 30 and $3.6 million a year ago, with the majority of the increase coming from home equity loans and lines of credit originated out of footprint. Webster is currently following a retail/in market origination strategy in its ongoing home equity activity.

The allowance for credit losses, which consists of the allowance for loan losses and the reserve for unfunded credit commitments, was $164.0 million, or 1.32 percent of total loans, at September 30, 2007 compared to $152.8 million, or 1.23 percent at June 30, 2007 and $156.3 million, or 1.20 percent at September 30, 2006. The ratio of the allowance for credit losses to nonperforming loans was 172 percent at September 30, 2007 compared to 211 percent at June 30 and 264 percent a year ago.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $16.8 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 179 banking offices, 339 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank.

 


LOGO

This excerpt taken from the WBS 10-K filed Feb 27, 2007.
Asset Quality
 
Asset quality improved slightly in 2006 as nonperforming assets decreased to $61.8 million at December 31, 2006 compared to $66.3 million a year earlier. The decrease in nonperforming assets was primarily the result of decreases in nonperforming commercial and commercial real estate loans and commercial other real estate owned. Total commercial and commercial real estate nonperforming assets decreased $13.6 million when compared to the balances at December 31, 2005. Partially offsetting these decreases were increases of $9.1 million in residential and consumer nonperforming assets. The allowance for loan losses increased in 2006 to $147.7 million from $146.5 million in 2005 due to the $4.7 million allowance for loan losses acquired as part of the acquisition of NewMil, partially offset by the effect of net charge-offs exceeding the provision for losses during the year.
 
Nonperforming assets, loan delinquency and credit losses are considered to be key measures of asset quality. Asset quality is one of the key factors in the determination of the level of the allowance for credit losses. See “Allowance for Credit Losses” contained elsewhere within this section for further information on the allowance.
 
Nonperforming Assets
 
Management devotes significant attention to maintaining asset quality through conservative underwriting standards, active servicing of loans and aggressive management of nonperforming assets. Nonperforming assets include nonaccruing loans and foreclosed properties. The aggregate amount of nonperforming assets decreased as a percentage of total assets to 0.36% at December 31, 2006 from 0.37% at December 31, 2005.
 
Nonperforming loans were $58.9 million at December 31, 2006, compared to $60.6 million at December 31, 2005. Nonperforming loans are defined as nonaccruing loans. The ratio of nonperforming loans to total loans was 0.46% and 0.49% at December 31, 2006 and 2005, respectively. The allowance for loan losses at December 31, 2006 was $147.7 million and represented 250.7% of nonperforming loans and 1.14% of total loans. At December 31, 2005, the allowance was $146.5 million and represented 241.9% of nonperforming loans and 1.19% of total loans. Interest on nonaccrual loans that would have been recorded as additional interest income for the years ended December 31, 2006, 2005 and 2004 had the loans been current in accordance with their original terms approximated $2.0 million,


36


Table of Contents

$3.2 million and $2.1 million, respectively. See Note 1 of Notes to Consolidated Financial Statements contained elsewhere within the Report for information concerning the nonaccrual loan policy.
 
Total nonperforming loans decreased $1.6 million, or 2.7% in 2006. This decrease was primarily the result of a $5.3 million decrease in commercial loans and a $5.1 million decrease in commercial real estate loans, partially offset by an $8.8 million increase in residential and consumer loans. The increase in residential and consumer loans was principally due to the acquisition of $0.9 million of nonperforming assets from NewMil; a $3.4 million increase in residential mortgages to borrowers primarily within the Webster footprint; and a $4.4 million increase in home equity accounts that are associated with the expansion of Webster’s national distribution channels. Nonperforming asset levels at December 31, 2006 compare favorably to Webster’s ten year averages for nonperforming residential and consumer assets. The new nonperforming loans do not represent a concentration in any particular borrower group or collateral type.
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki