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 WATERBURY, Conn., Oct. 19 /PRNewswire/ -- Webster Financial Corporation (NASDAQ: WBST), holding company for First Federal Bank, reported net income of $3.1 million or 60 cents per fully diluted common share for the third quarter ended Sept. 30, 1993 compared to $1.3 million or 36 cents per common share during the same quarter in 1992. The board of directors declared a regular quarterly cash dividend of 13 cents per common share, payable Nov. 16, 1993 to shareholders of record on Nov. 5.
 Net interest income totaled $15.0 million in the third quarter of 1993 compared to $7.9 million in the same period a year earlier. Income from fees and service charges amounted to $1.8 million in the third quarter compared to $985,000 a year earlier. The ratio of noninterest expenses to average assets was 2.06 percent for the 1993 third quarter compared to 2.51 percent for the same 1992 quarter.
 James C. Smith, president and chief executive officer, said, "The higher earnings for the quarter are due in large part to the increase in earning assets resulting from the acquisition of First Constitution Bank from the FDIC in October 1992, to operating efficiencies achieved since the acquisition and to lower expenses and provisions related to other real estate owned."
 Net income for the nine months ended Sept. 30, 1993 amounted to $13.8 million or $2.53 per fully diluted share compared to $3.6 million or $1.00 per share for the same period a year earlier. Earnings for the nine months ended Sept. 30, 1993 include $4.3 million or 83 cents per fully diluted share from the implementation of Financial Accounting Standards Board Statement 109, which changed the method of accounting for income taxes effective Jan. 1, 1993. Before the change, net income for the nine months ended Sept. 30, 1993 amounted to $9.5 million or $1.70 per fully diluted share.
 Nonperforming loans and other real estate owned amounted to $57.8 million at Sept. 30, 1993 after charge-offs of $3.5 million during the third quarter, an increase of $43.0 million from a year earlier and a decrease of $1.5 million from the quarter ended June 30, 1993. The increase from Sept. 30, 1992 was primarily attributable to the loans purchased in the First Constitution acquisition and was consistent with projections made at the time of the acquisition. The allowance for loan losses at Sept. 30, 1993 amounted to $44.5 million and represented 124.7 percent of nonperforming loans. The allowance for losses on loans and other real estate owned totaled $45.7 million at Sept. 30, 1993 and represented 77.5 percent of nonperforming loans and other real estate owned.
 Segregated assets, which consist of commercial loans, commercial real estate loans and multi-family mortgage loans acquired in the First Constitution acquisition, were $187.8 million at Sept. 30, 1993. Nonperforming segregated assets totaled $46.9 million at that date. Segregated assets are covered by an extensive loss-sharing agreement with the FDIC. The FDIC also has provided a $20 million contingent reserve arrangement for possible losses in excess of established reserves on all acquired loans and segregated assets.
 Shareholders' equity of $102.8 million at Sept. 30, 1993 resulted in a book value of $21.81 per share based on 3,565,248 shares of common stock outstanding, an increase of $2.72 per common share from a year earlier. First Federal Bank had a core capital ratio of 5.45 percent at Sept. 30, 1993 and continues to meet all regulatory requirements for a "well capitalized" bank.
 Webster Financial Corporation is the holding company for First Federal Bank, a federal savings bank headquartered in Waterbury. First Federal was founded in 1935 and converted from a federal mutual to a federal stock institution in 1986.
 Through First Federal, the corporation is engaged primarily in the business of attracting deposits from the general public and investing these funds in loans for the purchase, construction and refinancing of one- to four-family homes.
 The corporation serves communities in New Haven, Hartford, Fairfield and Litchfield counties from 32 banking offices throughout Connecticut.
 Condensed Financial Information
 (Dollars In Thousands, Except Per Share Data)
 Three Months Ended Nine Months Ended
 STATEMENTS OF INCOME 9/30/93 9/30/92 9/30/93 9/30/92
 Net interest income $14,996 $7,902 $48,131 $22,372
 Provision for loan losses 1,000 720 3,000 920
 Gain on sale of loans
 and investment securities 236 333 694 909
 Fees and service charges 1,761 985 4,976 2,931
 Other noninterest income 198 92 593 235
 Income before expenses 16,191 8,592 51,394 25,527
 Noninterest expense before
 OREO expenses and
 prov. for losses 10,023 4,838 31,111 14,370
 OREO expenses and provision
 for losses 583 697 3,824 3,654
 Total noninterest expenses 10,606 5,535 34,935 18,024
 Income before taxes
 and cumulative
 effect of change in method of
 accounting 5,585 3,057 16,459 7,503
 Income taxes 2,514 1,752 6,981 3,921
 Net income before cumulative
 effect of change in method
 of accounting 3,071 1,305 9,478 3,582
 Cumulative effect of
 change in method of acct.
 for inc. taxes --- --- 4,300 ---
 Net inc. after cumulative
 effect of change in method
 of accounting 3,071 1,305 13,778 3,582
 Preferred stock dividends 468 --- 2,185 ---
 Net Income Available to
 Common Shareholders $2,603 $1,305 $11,593 $3,582
 Net income per com. share
 before cumulative change:
 Primary 70 cents 36 cents $1.97 $1.00
 Fully diluted 60 cents 36 cents $1.70 $1.00
 Net income per common share after
 cumulative change:
 Primary 70 cents 36 cents $3.14 $1.00
 Fully diluted 60 cents 36 cents $2.53 $1.00
 Cash dividends paid
 per common share 13 cents 12 cents 37 cents 36 cents
 Common shares
 outstanding (000's) 3,565 3,497 3,565 3,497
 Assets $2,105,675 $880,103
 Loans receivable, net 1,247,832 513,208
 Mortgage-backed securities 438,189 249,594
 Segregated assets, net 187,788 ---
 Deposits 1,664,278 732,679
 FHL bank advances and
 other borrowings 303,952 60,276
 Total shareholders' equity 102,746 66,757
 Book value per common share 21.81 19.09
 Market price per share 20.25 12.82
 SELECTED FINANCIAL RATIOS At or For Three months ended
 AND OTHER INFORMATION 9/30/93 9/30/92
 Loan originations $71,349 $43,662
 Allowance for loan losses
 excl seg asset allow 44,478 9,459
 Allowance for losses on OREO 1,205 1,837
 Allowance for loan losses/
 nonperforming loans 124.65 pct 159.03 pct
 Allowances for loan and OREO
 losses/nonperforming loans and
 OREO 77.46 pct 67.88 pct
 Nonperforming loans & OREO to
 total assets 2.80 pct 1.68 pct
 Return on average equity 11.87 pct 7.81 pct
 Interest rate spread 3.01 pct 3.43 pct
 Net yield on average earning
 assets 3.08 pct 3.71 pct
 Noninterest expense to average
 assets 2.06 pct 2.51 pct
 Noninterest expense less OREO
 provisions and expenses to
 average assets 1.95 pct 2.20 pct
 Equity to total assets 4.88 pct 7.59 pct
 Net interest income to
 noninterest expense 1.41x 1.43x
 NOTE: All per share data and the number of outstanding common shares for all periods and dates prior to June 30, 1993 have been adjusted retroactively to give effect to a 10 percent stock dividend to common shareholders of record on June 4, 1993.
 -0- 10/19/93
 /CONTACT: James C. Smith of Webster Financial Corp., 203-578-2214/

CO: Webster Financial Corporation ST: Connecticut IN: FIN SU: ERN DIV

JL-DJ -- NE003 -- 4056 10/19/93 14:18 EDT
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Publication:PR Newswire
Date:Oct 19, 1993

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