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WEBSTER REPORTS EARNINGS, DECLARES CASH DIVIDEND

 WATERBURY, Conn., July 20 /PRNewswire/ -- Webster Financial Corporation (NASDAQ: WBST) holding company for First Federal Bank, reported net income of $3.4 million or 58 cents per fully diluted share for the second quarter ended June 30, 1993 compared to $1.2 million or 34 cents per share during the same quarter in 1992. The Board of Directors declared a regular quarterly cash dividend of 13 cents per share, payable Aug. 17, 1993 to shareholders of record on Aug. 6.
 Net interest income totaled $16.3 million in the second quarter of 1993 compared to $7.5 million in the same period a year earlier. Income from fees and service charges amounted to $1.6 million in the second quarter compared to $940,000 a year earlier. The ratio of noninterest expenses to average assets was 2.25 percent for the 1993 quarter compared to 2.92 percent for the 1992 quarter.
 James C. Smith, president and chief executive officer, said, "We attribute the higher earnings 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 six months ended June 30, 1993 amounted to $10.7 million or $1.93 per fully diluted share compared to $2.3 million or 64 cents per share for the same period a year earlier. Earnings for the six months ended June 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 six months ended June 30, 1993 amounted to $6.4 million or $1.10 per fully diluted share.
 Nonperforming loans and other real estate owned amounted to $61.7 million at June 30, 1993 after charge-offs of $1.1 million during the second quarter, an increase of $45.0 million from a year earlier and of $2.4 million from the quarter ended March 31, 1993. The increase 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 June 30, 1993 amounted to $46.3 million and represented 122 percent of nonperforming loans. The allowance for losses on loans and other real estate owned totaled $47.9 million at June 30, 1993 and represented 79 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 $203 million at June 30, 1993. Nonperforming segregated assets totaled $49.2 million at that date. Segregated assets are covered by an extensive loss-sharing agreement with the FDIC. The FDIC also provided a $20 million contingent reserve arrangement to cover possible losses in excess of established reserves on all acquired loans and segregated assets.
 Shareholders' equity amounted to $100 million at June 30, 1993 compared to $116 million at March 31, 1993. The decrease during the June quarter is entirely attributable to the redemption of $18.25 million of preferred stock, representing the remaining shares of Series A Perpetual Preferred Stock issued to the FDIC to facilitate the First Constitution acquisition. As previously announced, the Series A shares were redeemed with part of the net proceeds raised by Webster through a registered offering of $40 million of 8 3/4 percent Senior Notes due 2000. The balance of the net proceeds was retained in the holding company for general corporate purposes. Book value per share at June 30, 1993 was $21.25 based on 3,547,345 shares of common stock outstanding, an increase of $2.42 per common share from a year earlier. First Federal Bank had a core capital ratio of 5.38 percent at June 30, 1993 and continues to meet all regulatory requirements of 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.
 WEBSTER FINANCIAL CORPORATION
 (NASDAQ: WBST)
 Condensed Financial Information
 (Dollars In Thousands, Except Share Data)
 Three Months Ended
 STATEMENTS OF INCOME 6/30/93 3/31/93 6/30/92
 Net interest income $16,287 $16,648 $7,514
 Provision for loan losses 1,000 1,000 100
 Gain on sale of loans
 and investment securities 266 192 162
 Fees and service charges 1,607 1,608 940
 Other noninterest income 188 207 77
 Income before expenses 17,346 17,855 8,593
 Noninterest expense before OREO
 expenses and provision for losses 10,245 10,843 4,649
 OREO expenses and provision
 for losses 1,361 1,660 1,812
 Total noninterest expenses 11,626 12,703 6,461
 Income before taxes and cumulative
 effect of change in method of
 accounting 5,722 5,152 2,132
 Income taxes 2,351 2,116 918
 Net income before cumulative effect of
 change in method of accounting 3,371 3,036 1,214
 Cumulative effect of change in method
 of accounting for income taxes --- 4,300 ---
 Net income after cumulative effect
 of change in method of accounting $3,371 $7,336 $1,214
 Net income per common share before
 cumulative change:
 Primary 69 cents 58 cents 34 cents
 Fully diluted 58 cents 51 cents 34 cents
 Net income per common share after
 cumulative change:
 Primary 69 cents $1.75 34 cents
 Fully diluted 58 cents $1.35 34 cents
 Cash dividends paid
 per common share 12 cents 12 cents 12 cents
 Common shares outstanding (000's) 3,547 3,546 3,497
 Six Months Ended
 STATEMENTS OF INCOME 6/30/93 6/30/92
 Net interest income $33,135 $14,470
 Provision for loan losses 2,000 200
 Gain on sale of loans
 and investment securities 458 576
 Fees and service charges 3,215 1,946
 Other noninterest income 395 143
 Income before expenses 35,203 16,935
 Noninterest expense before OREO
 expenses and provision for losses 21,088 9,532
 OREO expenses and provision
 for losses 3,241 2,957
 Total noninterest expenses 24,329 12,489
 Income before taxes and cumulative
 effect of change in method of
 accounting 10,874 4,446
 Income taxes 4,467 2,169
 Net income before cumulative effect of
 change in method of accounting 6,407 $2,277
 Cumulative effect of change in method
 of accounting for income taxes 4,300 ---
 Net income after cumulative effect
 of change in method of accounting $10,707 $2,277
 Net income per common share before
 cumulative change:
 Primary $1.27 64 cents
 Fully diluted $1.10 64 cents
 Net income per common share after
 cumulative change:
 Primary $2.44 64 cents
 Fully diluted $1.93 64 cents
 Cash dividends paid
 per common share 24 cents 24 cents
 Common shares outstanding (000's) 3,547 3,497
 BALANCE SHEET INFORMATION 6/30/93 3/31/93 6/30/92
 Assets $2,063,323 $2,079,724 $882,995
 Loans receivable, net 1,265,743 1,298,599 506,491
 Mortgage-backed securities 354,744 348,841 252,808
 Segregated assets, net 202,657 215,729 ---
 Deposits 1,686,682 1,694,328 735,948
 FHL bank advances and
 other borrowings 234,172 231,952 60,276
 Total shareholders' equity 100,372 116,496 65,866
 Book value per common share 21.25 20.65 18.83
 Market price per share 18.50 16.88 12.75
 SELECTED FINANCIAL RATIOS At or For Three months ended
 AND OTHER INFORMATION 6/30/93 3/31/93 6/30/92
 Loan originations $72,438 $52,902 $44,714
 Allowance for loan losses
 excl seg asset allow 46,278 44,080 8,780
 Allowance for losses on OREO 1,626 1,560 1,320
 Allowance for loan losses/
 nonperforming loans 121.97 pct 128.10 pct 123.75 pct
 Allowances for loan and OREO
 losses/nonperforming loans and
 OREO 78.67 pct 79.22 pct 56.05 pct
 Nonperforming loans & OREO to
 total assets excl seg assets 2.95 pct 2.70 pct 1.89 pct
 Return on average equity before
 cumulative change 12.05 pct 10.62 pct 7.39 pct
 Return on average equity after
 cumulative change 12.05 pct 25.65 pct 7.39 pct
 Interest rate spread 3.08 pct 3.12 pct 3.28 pct
 Net yield on average earning
 assets 3.24 pct 3.31 pct 3.57 pct
 Noninterest expense to average
 assets 2.25 pct 2.47 pct 2.92 pct
 Noninterest expense less OREO
 provisions and expenses to
 average assets 1.98 pct 2.11 pct 2.10 pct
 Equity to total assets 4.86 pct 5.60 pct 7.46 pct
 Net interest income to
 noninterest expense 1.40x 1.33x 1.16x
 ----
 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- 7/20/93
 /CONTACT: James C. Smith of Webster Financial Corp., 203-755-1422/
 (WBST)


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

CM -- NE018 -- 3535 07/20/93 15:57 EDT
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