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$WBS announced an acceleration of investment in its employees and the communities it serves following the passage of new federal tax reform legislation. These include: lifting minimum wage to $15 per hour by the end of 2018, and payment of one-time $1,000 cash bonus in 1Q18 to full-time employees who are below the vice president level.
$WBS named Frederick Smith as Controller of Webster Bank and Webster Financial Corporation. As Corporate Controller, Smith will serve as a senior leader within $WBS's Accounting Department and oversee the corporation's accounting operations, close and consolidation, and financial reporting activities.
Financial services firm $WBS said Chairman and CEO James C Smith will retire, and transition to non-executive chairman. Webster’s President John Ciulla will become the new CEO, and join the holding company's BoD. The management changes are effective January 1, 2018, and reflect the culmination of a multi-year leadership succession planning process.
$WBS, the holding company for Webster Bank, has named Albert Wang as the Chief Accounting Officer of Webster Financial Corporation and Webster Bank. He previously served as EVP and Chief Accounting Officer of Banc of California. Wang has more than 20 years of accounting, tax, and audit experience.
Webster Bank, a subsidiary of $WBS, said it led senior commercial mortgage financing for White Plains, New York-based CG IX LLC, a subsidiary of CampGroup LLC, a family-owned operator of 15 summer camps in six states. The loan will refinance existing debt and support future capital projects.
$WBS' increased its quarterly cash dividend by $0.01 to $0.26 per share. The dividend is payable May 22, 2017 to shareholders of record on May 8, 2017. The company also declared a quarterly cash dividend of $400 per share for its Series E Preferred Stock, payable on June 15, 2017 to shareholders of record on June 1, 2017.
$WBS said that the updated balance for loans and deposits in the Boston markets is of total loans of about $375MM and deposits of about $290MM from the new acquisition. These balances, the company added, have improved from the previous quarter.
$WBS said that on the other non-interest income decline QoQ, swap fee income was the largest driver. Additionally on the tax rate guidance, the company said it would see more volatility in the tax line than seen and mostly it will be seen in the first quarter.
$WBS' non-interest income for 1Q17 rose to $63.1MM from $62.4MM last year. This reflects increases of $2.2MM in loan and lease fees and $2.1MM in deposit service fees offset by a decrease of $2MM in HSA other income related to an adjustment of an acquisition receivable and a decline of $1.8MM in client swap activity.
$WBS reported a rise in 1Q17 earnings driven by $1.1Bil in commercial loan growth, full funded by HSA and transactional account deposit growth. Net income rose to $59.47MM or $0.62 per share from $47.05MM or $0.49 per share last year. Revenue grew 7.3% to $255.7MM.
$WBS appointed Gregory Madar as CFO of HSA Bank effective May 2017. HSA Bank, a division of Webster Bank, is a provider of consumer-directed health savings accounts. In his newly created role, Madar will oversee financial performance analysis, budget and planning, controllership and financial management for HSA Bank.
In Personal Banking, $WBS' total deposits and transaction deposits were up 4% and 5% respectively YoverY. The company continues to build momentum in its Boston initiative and expects net interest income to increase by about $5MM linked quarter.