Shares of Webster Financial Corporation (NYSE:WBS) ended Friday session in green amid volatile trading. The shares closed up +0.39 points or 1.01% at $38.87 with 697,450 shares getting traded. Post opening the session at $38.68, the shares hit an intraday low of $38.36 and an intraday high of $38.91 and the price vacillated in this range throughout the day. The company has a market cap of $3.60 billion and the numbers of outstanding shares have been calculated to be 91.67 million shares.
Webster Financial Corporation (WBS) on July 20, 2016 announced earnings applicable to common shareholders of $48.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2016 compared to $49.8 million, or $0.55 per diluted share, for the quarter ended June 30, 2015. The second quarter of 2015 included a $3.7 million net tax benefit, or $0.04 per diluted share.
“Double-digit loan growth once again propelled strong revenue growth as Webster bankers continued to excel in service to businesses and consumers,” said James C. Smith, chairman and chief executive officer. “Loan originations in excess of $1 billion, coupled with exceptionally strong credit metrics, helped overcome margin pressure from historically low interest rate environment to produce another solid quarter.”
Highlights for the second quarter of 2016 compared to the second quarter of 2015:
- Revenue of $242.0 million, an increase of 8.6 percent, including a record level of net interest income of $176.9 million.
- Loan growth of $1.5 billion, or 10.1 percent, with growth of $1.1 billion in commercial and commercial real estate loans.
- Deposit growth of $1.5 billion, or 8.9 percent, with growth of $1.1 billion in transactional and health savings account deposits.
- Efficiency ratio (non-GAAP) of 61.47 percent
- Annualized return on average tangible common shareholders’ equity (non-GAAP) of 11.25 percent.
“Ongoing strategic investments in our businesses, along with continued expense discipline, are designed to maximize shareholder value over time,” said Glenn MacInnes, executive vice president and chief financial officer.
Shares of Arch Capital Group Ltd. (NASDAQ:ACGL) ended Friday session in green amid volatile trading. The shares closed up +0.34 points or 0.42% at $81.75 with 402,540 shares getting traded. Post opening the session at $81.35, the shares hit an intraday low of $81.13 and an intraday high of $81.82 and the price vacillated in this range throughout the day. The company has a market cap of $10.06 billion and the numbers of outstanding shares have been calculated to be 122.57 million shares.
Arch Capital Group Ltd. (ACGL) on August 16, 2016 announced that it has entered into a definitive agreement to acquire United Guaranty Corporation (UGC) and AIG United Guaranty Insurance (Asia) Limited from their current owner, American International Group, Inc. (AIG). The combination of Arch’s existing mortgage insurance business with UGC’s established business will create the largest private mortgage insurer in the world, based on insurance in-force, with a global footprint. At closing, Arch will pay to AIG aggregate consideration of approximately $3.4 billion, payable in a combination of cash and securities. Upon closing, Arch or its subsidiaries will assume AIG’s quota share of UGC’s mortgage insurance on a prospective basis. Subject to regulatory approvals, the purchase price could be reduced by a special dividend of up to $250 million from UGC to AIG prior to closing. It is anticipated that the transaction will close late Fourth Quarter 2016 or early First Quarter 2017, subject to approvals of the applicable regulators and government-sponsored enterprises (GSEs), including the North Carolina Department of Insurance, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), and the satisfaction of customary closing conditions.
Constantine (Dinos) Iordanou, Chairman and CEO of Arch, commented, “We are extremely pleased to be able to expand our private mortgage insurance business through the acquisition of United Guaranty. Our mortgage insurance segment expands and complements our strengths in the specialty insurance and reinsurance businesses, which continue to be central to our global, diversified operations.”
“We are excited about the combination of Arch and United Guaranty because these companies have led the market in innovation through their risk based pricing models and focus on data analytics. We believe that the companies’ complementary risk management cultures will further accelerate innovation and sound risk management and help us to maximize our best-in-class processes in the specialty insurance space.”