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Mar 31, 2020
Webster Q1 2020 Earnings Report
Reported earnings of $0.39 per diluted share, impacted by CECL adoption and COVID-19.
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.
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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