Webster Q1 2020 Earnings Report
Key Takeaways
Webster Financial Corporation announced earnings applicable to common shareholders of $36.0 million, or $0.39 per diluted share, for the quarter ended March 31, 2020. The results reflect a provision for credit losses of $76.0 million due to the adoption of CECL and the impact of COVID-19.
Results include the adoption of CECL and the impact of COVID-19 resulting in a provision of $76.0 million; allowance coverage of 1.60 percent.
Revenue of $304.2 million.
Loan growth of $2.1 billion, or 11.0 percent from a year ago, led by commercial and commercial real estate, which increased 15.6 percent.
Deposit growth of $1.8 billion, or 7.7 percent from a year ago, with growth of $527 million, or 8.5 percent, in HSA deposits.
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Webster Revenue by Segment
Forward Guidance
Webster has responded quickly with programs to support our Employees, Customers and the Communities where we live and work.
Positive Outlook
- 75% of our bankers are currently working remotely
- Special pay considerations and additional PTO for essential front line employees
- No furloughs; bankers are at 100% pay
- Zero-interest loans up to $5,000 are available to assist employees and their families facing unforeseen challenges due to COVID-19
- Instituted a 90-day foreclosure moratorium on residential loans
Challenges Ahead
- Increased deposit limits; waiving penalties for early CD withdrawals
- Waiving or reducing certain fees
- Not reporting payment deferrals to credit bureaus
- Participating in the SBA Paycheck Protection Program with the initial round resulting in approximately $650 million in SBA approved loans
- Payment modifications (needs based / COVID related impact)
Revenue & Expenses
Visualization of income flow from segment revenue to net income