Profile: Webster Financial Corp (WBS)
27 Mar 2017
Webster Financial Corporation (Webster), incorporated on September 10, 1986, is a bank and financial holding company. The Company's segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. The Commercial Banking segment includes middle-market, asset-based lending, commercial real estate, equipment finance, and treasury and payment solutions, which includes government and institutional banking. The Community Banking segment consists of its Personal Banking and Business Banking segments. HSA Bank, a division of the Company's wholly owned subsidiary, Webster Bank, National Association (Webster Bank), offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. Private Banking provides local, full relationship banking that serves high-net-worth clients, not-for-profit organizations, and business clients with asset management, trust, loan and deposit products, and financial planning services. The Company's treasury unit and consumer liquidating portfolio are included in the Corporate and Reconciling category.
Personal Banking includes consumer products, such as deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans and credit cards. Business Banking offers credit, deposit and cash flow management products to businesses and professional service firms. Webster Bank's investment services division, WIS, offers investment and securities-related services. Health savings accounts are used in conjunction with high deductible health plans. Health savings accounts are offered through employers or directly to consumers and are distributed nationwide directly and through multiple partnerships. Community Banking serves consumer and business banking customers primarily throughout southern New England and into Westchester County, New York. The Company delivers financial services to individuals, families and businesses primarily within its regional footprint from New York to Massachusetts. As of December 31, 2016, Webster provided business and consumer banking, mortgage lending, financial planning, trust, and investment services through 175 banking offices, 350 automatic teller machines (ATMs), mobile banking, and its Website.
The Company offers a range of loans, including consumer loans, which consist of home equity and liquidating-home equity loans; commercial loans, which comprises commercial non-mortgage loans and asset-based loans; commercial real estate loans, which consist of commercial construction loans, and equipment financing. As of December 31, 2016, the Company had net loans and leases of $16.8 billion.
Webster Bank's investment securities portfolio is classified as available-for-sale and held-to-maturity. The available-for-sale portfolio consists primarily of agency collateralized mortgage obligations (CMO), agency mortgage-backed securities (MBS), non-agency commercial mortgage-backed securities (CMBS) and collateralized loan obligation (CLOs). As of December 31, 2016, the Company's total available-for-sale investment securities at fair value amounted to $2,991.09 million. Its held-to-maturity securities include Agency CMO, Agency MBS, Agency CMBS, Municipal bonds and notes, CMBS and Private Label MBS. As of December 31, 2016, the Company's total held-to-maturity securities amounted to $4,125.125 million.
Sources of Funds
The primary source of Webster Bank's cash flows for use in lending and meeting its general operational needs is deposits. Webster Bank offers a range of deposit products for checking and savings (including ATM and debit card use); direct deposit; automated clearing house (ACH) payments; combined statements; mobile banking services; Internet-based banking; bank by mail, as well as overdraft protection through line of credit or transfer from another deposit account) designed to meet the transactional, savings and investment needs for both consumer and business customers. Webster Bank manages the flow of funds in its deposit accounts and provides a range of accounts and rates consistent with Federal Deposit Insurance Corporation (FDIC) regulations. As of December 31, 2016, its total deposits were $19.3 billion.
Webster Financial Corp
132 Grand St
WATERBURY CT 06702-1909