Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Bad
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Financial report summary
?Risks
- A failure or breach of our information systems, or those of our third-party vendors and service providers, including as a result of cyber-attacks, could disrupt our businesses, result in the misuse of confidential or proprietary information, damage our reputation, and cause losses.
- Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our ESG practices may impose additional costs on us or expose us to new or additional risks.
- We are subject to financial and reputational risks from potential liability arising from lawsuits.
- We rely on third parties to perform significant operational services for us.
- Our business may be adversely affected by fraud.
- Our internal controls may be ineffective, circumvented, or fail.
- We are exposed to environmental liability risk with respect to properties to which we obtain title.
- Climate change manifesting as physical or transition risks could adversely affect our operations, businesses, and customers.
- Our allowance for credit losses on loans and leases may be insufficient.
- The soundness of other financial institutions could adversely affect our business.
- We are subject to the risk of default by our counterparties and clients, particularly with respect to certain types of commercial loans.
- We are subject to commercial lending concentration risks.
- We are subject to extensive government regulation and supervision, which may interfere with our ability to conduct our business operations.
- We face risks related to the adoption of future legislation and potential changes in federal regulatory agency leadership, policies, and priorities.
- Changes in federal, state, or local tax laws may negatively impact our financial performance.
- We are subject to examinations and challenges by taxing authorities.
- Health care reform could adversely affect our HSA Bank division.
- Difficult conditions or volatility in the U.S. economy and financial markets may have a materially adverse effect on our business, financial condition, and results of operations.
- Our profitability depends significantly on local economic conditions in the states in which we conduct business.
- Changes in interest rates and spreads may have a materially adverse effect on our business, financial condition, and results of operations.
- Changes in our financial condition or in the general banking industry, or changes in interest rates, could result in a loss of depositor confidence.
- Unrealized losses in our available-for-sale securities portfolio could negatively impact our business.
- The proportion of our deposit account balances that exceed the FDIC insurance limits may expose the Bank to enhanced liquidity risk in times of financial distress.
- Higher mortgage rates and low inventory adversely impact our ability to originate or refinance residential mortgage loans.
- We may be subject to more stringent capital and liquidity requirements, which could limit our business activities.
- Our stock price can be volatile.
- The Holding Company may not pay dividends to stockholders if it is not able to receive dividends from its subsidiary, Webster Bank.
- Changes in our accounting policies or in accounting standards could materially impact how we report our financial results.
- The preparation of our consolidated financial statements requires the use of estimates that may vary from actual results.
- A significant merger or acquisition requires us to make estimates, including the fair values of assets acquired and liabilities assumed.
- If our goodwill were determined to be impaired, it could have a negative impact on our profitability.
- Our investments in certain tax-advantaged projects may not generate returns as anticipated or at all, and may have an adverse impact on our results of operations.
- New lines of business or new products and services may subject us to additional risk.
- We may not be able to attract and retain skilled people, and the loss of key employees or the inability to maintain appropriate staffing may disrupt relationships with customers and adversely impact our business.
- We operate in a highly competitive industry and market area.
- Failure to keep pace with and adapt to technological change could adversely impact our business.
- The loss of key partnerships could adversely affect our HSA Bank division and deposit administration activities.
Management Discussion
- (1)Non-performing asset balances and related asset quality ratios exclude the impact of net unamortized (discounts)/premiums and net unamortized deferred (fees)/costs on loans and leases.
- The non-GAAP financial measures identified in the preceding table provide both management and investors with information useful in understanding the Company's financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by management for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. Management believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting the Company's business and allows investors to view its performance in a similar manner.
- Tangible book value per common share represents stockholders’ equity less preferred stock and goodwill and other intangible assets (tangible common equity) divided by common shares outstanding at the end of the reporting period. The tangible common equity ratio represents tangible common equity divided by total assets less goodwill and other intangible assets (tangible assets). Both of these measures are used by management to evaluate the Company's capital position. The annualized return on average tangible common stockholders' equity is calculated using net income available to common stockholders, adjusted for the annualized tax-effected amortization of intangible assets, as a percentage of average tangible common equity. This measure is used by management to assess the Company's performance against its peer financial institutions. The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items in order to measure how well the Company is managing its recurring operating expenses.