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WEBSTER FINANCIAL CORPORATION REPORTS EARNINGS INCREASE

 WATERBURY, Conn., April 20 /PRNewswire/ -- Webster Financial Corporation (NASDAQ-NMS: WBST), holding company for Waterbury-based First Federal Bank, earned $7.3 million or $1.49 per fully diluted share for the first quarter ended March 31, 1993, compared to $1.1 million or 33 cents per share for the same period last year. Earnings for the 1993 quarter include $4.3 million or 93 cents per fully diluted share, resulting from the implementation of Financial Accounting Standards Board Statement 109 relating to a cumulative change in the method of accounting for income taxes effective Jan. 1, 1993. Net income before the $4.3 million cumulative effect of the change amounted to $3.0 million or 56 cents per fully diluted share.
 Net interest income was $16.8 million compared to $7.0 million a year earlier, due primarily to a higher level of earning assets resulting from the acquisition of First Constitution Bank in October 1992. Income from other fees and service charges was $1.6 million compared to $1.0 million. Noninterest expenses of $12.7 million compared to $6.0 million reflect costs of operating the larger bank and were in line with expectations.
 Nonperforming loans and other real estate owned amounted to $59.6 million at March 31, 1993 after charge-offs of $4.3 million, an increase of $40.3 million from a year earlier. The increase is entirely attributable to the loans purchased in the First Constitution acquisition and is consistent with projections made at the time of the acquisition. The allowance for loan losses at March 31, 1993 amounted to $44.1 million and represented 128.1 percent of nonperforming loans. The allowance for losses on loans and other real estate owned totaled $45.6 million and represented 78.9 percent of nonperforming loans and other real estate owned.
 Segregated assets, which consist of commercial loans, commercial real estate and multi-family mortgage loans acquired in the First Constitution acquisition, were $216.0 million at March 31, 1993. Nonperforming segregated assets totaled $44.2 million at that date. Segregated assets are covered by an extensive loss-sharing agreement with the FDIC. In addition, the FDIC provided a contingent reserve arrangement to cover possible losses in excess of established reserves on all acquired loans.
 Total assets at March 31, 1993 amounted to $2.1 billion, and deposits totaled $1.7 billion. Loan originations totaled $52.9 million for the quarter. Shareholders' equity at March 31, 1993 amounted to $116.5 million, or 5.6 percent of total assets.
 James C. Smith, president and chief executive officer, said, "The higher operating earnings result from the higher level of earning assets and the favorable interest rate environment. The acquisition of First Constitution Bank from the FDIC on favorable terms has furthered the corporation's objective of careful, profitable growth in keeping with the corporation's low risk profile. The integration of First Constitution into First Federal, including the transfer of customer account processing to First Federal's in-house data processing facilities, was completed ahead of schedule in the first quarter of 1993."
 Webster Financial Corporation is the holding company for First Federal Bank, a federal savings bank headquartered in Waterbury, Conn. First Federal Bank was founded in 1935 and serves communities in New Haven, Fairfield, Hartford and Litchfield counties from 32 offices throughout Connecticut.
 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 or refinancing of one-to-four family homes.
 WEBSTER FINANCIAL CORPORATION
 (NASDAQ: WBST)
 Condensed Financial Information
 (Dollars In Thousands, Except Share Data)
 Three Months Ended
 STATEMENTS OF INCOME 3/31/93 12/31/92 3/31/92
 Net interest income $16,848 $17,392 $6,956
 Provision for loan losses 1,000 2,080 100
 Gain on sale of loans
 and investment securities 192 43 414
 Fees and service charges 1,608 1,695 1,006
 Other noninterest income 207 148 66
 Income before expenses 17,885 17,198 8,342
 Noninterest expense before OREO
 expenses and provision for losses 10,843 11,799 4,883
 OREO expenses and provision
 for losses 1,860 1,802 1,145
 Total noninterest expenses 12,703 13,601 6,028
 Income before taxes and cumulative
 effect of change in method of
 accounting 5,152 3,597 2,314
 Income taxes 2,116 1,523 1,251
 Net income before cumulative effect of
 change in method of accounting 3,036 2,074 1,063
 Cumulative effect of change in method
 of accounting for income taxes 4,300 --- ---
 Net income after cumulative effect
 of change in method of accounting $7,336 $1,493 $1,063
 Net income per common share before
 cumulative change:
 Primary 64 cents 45 cents 33 cents
 Fully diluted 56 cents 45 cents 33 cents
 Net income per common share after
 cumulative change:
 Primary $1.92 45 cents 33 cents
 Fully diluted $1.49 45 cents 33 cents
 Cash dividends paid
 per common share 13 cents 13 cents 13 cents
 Common shares outstanding (000's) 3,224 3,212 3,179
 BALANCE SHEET INFORMATION 3/31/93 12/31/92 3/31/92
 Assets $2,079,724 $2,063,178 $885,545
 Loans receivable, net 1,298,599 1,308,934 515,733
 Mortgage-backed securities 348,841 325,184 261,995
 Segregated assets, net 215,982 223,907 ---
 Deposits 1,694,328 1,713,435 728,354
 FHL bank advances and
 other borrowings 231,952 190,664 71,17
 Total shareholders' equity 116,496 109,977 65,056
 Book value per common share 22.72 20.77 20.46
 Market price per share 18.50 19.00 12.75
 SELECTED FINANCIAL RATIOS At or For Three months ended
 AND OTHER INFORMATION 3/31/93 12/31/92 3/31/92
 Loan originations $52,902 $64,751 $44,409
 Allowance for loan losses
 excl seg asset allow 44,080 46,879 8,857
 Allowance for losses on OREO 1,560 1,674 902
 Allowance for loan losses/
 nonperforming loans 128.10 pct 113.64 pct 116.55 pct
 Allowances for loan and OREO
 losses/nonperforming loans and
 OREO 78.87 pct 88.21 pct 50.52 pct
 Nonperforming loans & OREO to
 total assets excl seg assets 2.71 pct 2.76 pct 2.18 pct
 Return on average equity before
 cumulative change 10.62 pct 8.94 pct 6.58 pct
 Return on average equity after
 cumulative change 25.65 pct --- ---
 Interest rate spread 3.12 pct 3.21 pct 3.05 pct
 Net yield on average earning
 assets 3.31 pct 3.43 pct 3.34 pct
 Noninterest expense to average
 assets 2.47 pct 2.61 pct 2.74 pct
 Noninterest expense less OREO
 provisions and expenses to
 average assets 2.11 pct 2.27 pct 2.13 pct
 Equity to total assets 5.60 pct 5.33 pct 7.35 pct
 Net interest income to
 noninterest expense 1.33x 1.28x 1.15x
 -0- 4/20/93
 /CONTACT: James C. Smith of Webster Financial Corp., 203-755-1422/
 (WBST)


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

DD -- NE001 -- 7870 04/20/93 09:40 EDT
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