Webster Financial (US:WBS)2021-11-03 20:21Financial Performance - Net income for the three months ended September 30, 2021, was $95,713 thousand, a 38.5% increase from $69,281 thousand in the same period of 2020[197]. - Net income for the nine months ended September 30, 2021, was $297,826,000, an increase of 85.5% compared to $160,577,000 for the same period in 2020[200]. - Earnings applicable to common shareholders for the three months ended September 30, 2021, were $93,171 thousand, compared to $66,890 thousand in the same period of 2020, reflecting a year-over-year increase of approximately 39.5%[196]. - Basic earnings per common share for the three months ended September 30, 2021, were $1.03, up from $0.75 in the same period of 2020, representing an increase of 37.3%[196]. - Earnings per common share for the nine months ended September 30, 2021, was $3.23, up from $1.71 in the same period of 2020, indicating an increase of 89.5%[283]. Asset and Deposit Growth - Total assets increased to $35,374,258 thousand as of September 30, 2021, up from $32,590,690 thousand at December 31, 2020, representing an increase of approximately 8.6%[194]. - Total deposits rose to $30,026,327 thousand as of September 30, 2021, compared to $27,335,436 thousand at December 31, 2020, marking an increase of approximately 9.8%[194]. - Cash and cash equivalents at the end of the period increased to $2,604,159,000 as of September 30, 2021, compared to $241,800,000 at the end of September 2020[202]. - The balance of retained earnings increased to $2,260,560,000 as of September 30, 2021, up from $2,055,620,000 a year earlier, reflecting a growth of 10%[198]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2021, was $229,691 thousand, compared to $219,256 thousand for the same period in 2020, reflecting a year-over-year increase of about 4.5%[196]. - Non-interest income for the three months ended September 30, 2021, was $83,775 thousand, up from $75,060 thousand in the same period of 2020, representing an increase of about 11.4%[196]. - Total non-interest expense for the three months ended September 30, 2021, was $180,237 thousand, a slight decrease from $183,996 thousand in the same period of 2020[196]. - The net current-period other comprehensive loss for the nine months ended September 30, 2021, was $40.75 million, compared to a gain of $88.11 million for the same period in 2020[276]. Credit Quality and Provisions - Provision for credit losses decreased to $7,750 thousand for the three months ended September 30, 2021, down from $22,750 thousand in the same period of 2020, indicating improved credit quality[196]. - The allowance for credit losses on loans and leases decreased to $314,922 thousand as of September 30, 2021, from $359,431 thousand at December 31, 2020, indicating a reduction in potential credit risk[194]. - The company reported a provision for credit losses of $(39,500,000) for the nine months ended September 30, 2021, compared to a provision of $138,750,000 in 2020, indicating improved credit quality[200]. - The total past due loans and leases amounted to $118.724 million, with a total loan portfolio of $21.580 billion[248]. Merger and Strategic Initiatives - The proposed merger between Webster and Sterling was approved by shareholders on August 17, 2021, with Sterling shareholders receiving a fixed exchange ratio of 0.463 of a Webster common share for each share of Sterling common stock owned[224]. - The Company incurred merger-related expenses of $9.8 million and $26.9 million during the three and nine months ended September 30, 2021, respectively, primarily for professional fees and employee costs[226]. - The Company launched a strategic plan in Q4 2020 aimed at driving incremental revenue and cost savings through various organizational actions[227]. Regulatory and Compliance - The company has adopted all applicable Accounting Standards Updates issued by the FASB as of September 30, 2021[213]. - The report includes comprehensive financial statements and notes, ensuring transparency and compliance[369]. - Certifications pursuant to the Sarbanes-Oxley Act of 2002 were signed by the Chief Executive Officer and Chief Financial Officer[369]. - The filing date for the quarterly report is November 3, 2021, indicating timely compliance with regulatory requirements[372].