WBS » Topics » Nonperforming Assets

This excerpt taken from the WBS 10-Q filed Aug 8, 2007.

Nonperforming Assets

Total nonperforming assets increased by $16.9 million to $78.7 million at June 30, 2007 from $61.8 million at both December 31, 2006 and June 30, 2006.

The following table details nonperforming assets:

 

(In thousands)

   June 30,
2007
   December 31,
2006
   June 30,
2006

Loans accounted for on a nonaccrual basis:

        

Commercial:

        

Commercial banking

   $ 20,142    $ 21,105    $ 22,930

Equipment financing

     2,584      2,616      2,693
                    

Total commercial

     22,726      23,721      25,623

Commercial real estate

     12,242      17,618      23,291

Residential

     26,683      11,307      7,218

Consumer

     10,875      6,266      3,065
                    

Total nonaccruing loans

     72,526      58,912      59,197

Foreclosed properties

     6,128      2,913      2,580
                    

Total nonperforming assets (a)

   $ 78,654    $ 61,825    $ 61,777
                    

(a) Total nonperforming assets previously disclosed included accruing loans past due 90 days or more. Loans past due 90 days or more and still accruing are now disclosed in the “Other Past Due Loans” table.

 

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The increase in nonperforming assets of $16.9 million from December 31, 2006, was primarily the result of an increase of $20.0 million in residential and consumer nonperforming assets, partially offset by a $5.4 million reduction in commercial real estate representing primarily principal paydowns on two accounts. The $15.4 million increase in residential nonaccrual loans relates to the Company’s decision, as previously disclosed, to suspend the accrual of interest on approximately $11.0 million of construction loans in Florida beginning in the second quarter.

The allowance for loan losses at June 30, 2007 was $145.0 million and represented 1.2% of total loans in comparison with an allowance of $147.7 million that represented 1.1% of total loans at December 31, 2006. For additional information on the allowance, see Note 6 of Notes to Consolidated Interim Financial Statements elsewhere in this report.

Not included in the totals above are performing troubled debt restructurings of $144,000 at both June 30, 2007 and December 31, 2006 and $240,000 at June 30, 2006.

This excerpt taken from the WBS 10-Q filed May 4, 2007.

Nonperforming Assets

Total nonperforming assets increased by $3.0 million to $64.8 million at March 31, 2007 from $61.8 million at December 31, 2006 and increased by $3.9 million from $60.9 million at March 31, 2006.

The following table details nonperforming assets:

 

(In thousands)

   March 31,
2007
   December 31,
2006
   March 31,
2006

Loans accounted for on a nonaccrual basis:

        

Commercial:

        

Commercial banking

   $ 13,679    $ 21,105    $ 19,719

Equipment financing

     2,405      2,616      2,864
                    

Total commercial

     16,084      23,721      22,583

Commercial real estate

     18,524      17,618      24,012

Residential

     13,473      11,307      8,891

Consumer

     10,808      6,266      2,875
                    

Total nonaccruing loans

     58,889      58,912      58,361

Foreclosed properties

     5,941      2,913      2,529
                    

Total nonperforming assets (a)

   $ 64,830    $ 61,825    $ 60,890
                    

(a)

Total nonperforming assets previously disclosed included accruing loans past due 90 days or more. Loans past due 90 days or more and still accruing are now disclosed in the “Other Past Due Loans” table.

The increase in nonperforming assets of $3.0 million was primarily the result of an increase of $6.7 million in residential and consumer nonperforming assets offset by a $4.5 million reduction representing two commercial credits from a cash settlement.

The allowance for loan losses at March 31, 2007 was $145.4 million and represented 1.18% of total loans in comparison with an allowance of $147.7 million that represented 1.14% of total loans at December 31, 2006. For additional information on the allowance, see Note 6 of Notes to Consolidated Interim Financial Statements elsewhere in this report.

Not included in the totals above are performing troubled debt restructurings of $144,000 at both March 31, 2007 and December 31, 2006 and $240,000 at March 31, 2006.

 

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This excerpt taken from the WBS 10-K filed Feb 27, 2007.
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,


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$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.
 
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