Webster Financial Corporation (WBS)’s Q4 2014 Earnings Conference Call Transcript

Dean Rochester – Dolce May

Got you. So switching to the HSA Bank deal it sounds like you already bought or pre-bought half of that 500 million dollar securities you were planning to purchase. Sorry if I’ve missed this but what are securities and investments rates on these purchases and where are re-investment rates today?

Glenn I. MacInnes – Chief Financial Officer

So what we bought was, say about 250 million at 287.

Dean Rochester – Dolce May

Great and where are you seeing rates today generally?

Glenn I. MacInnes – Chief Financial Officer

They’re within that range. OK, so when we buy the second piece I think we’d expect to be somewhere from 275 to 3, somewhere around there.

Dean Rochester – Dolce May

And what does that make the securities that you guys purchased?

Glenn I. MacInnes – Chief Financial Officer

It’s all primarily HNCCMBS, CLOs and some immunity, very small amount of immunities there.

Dean Rochester – Dolce May

Perfect, and then, your comments on extending durational liabilities, I was just wondering if you guys think you’re pretty much done with that or we should expect to see some growth in CDs or maybe you’ve turned down borrowing something like that.

Glenn I. MacInnes – Chief Financial Officer

No, we think we have more opportunity there. I think some of it will come from the pay down from the HSA acquisition but we have a product set that includes some additional CDs, retail CDs, we have a bump up CD that we just launched as a 3 year CD. We also have pour five year offering out there. We also have another 150 million in forward swaps that will help extend that as well.

Dean Rochester – Dolce May

Ok, thanks for that and I just want housekeeping items, just curious what the breakdown of that intangible bank would be, HSA bank deal, Goodwill versus CDI and then what your expectation is for the amortization expense.

Glenn I. MacInnes – Chief Financial Officer

We’re not final on that amount as yet so over the next couple of weeks we’ll be out with that.

Dean Rochester – Dolce May

Is that 5 million increased expense roughly corporate your wealth on that? Your general thoughts at this point.

Glenn I. MacInnes – Chief Financial Officer

Yeah it does.

Dean Rochester – Dolce May

Ok perfect, alright thanks Glenn.

Operator:

Alright our next question today is from Casey Haire, Jeffrey’s. Please proceed with your question.

Casey Haire – Jefferies

Hey good morning guys. This question on a loan pipeline sounds like a strong fourth quarter production to pull forward some of the loan growth from the first quarter. Just curious if you could quantify the size of the pipeline versus September 30th and just broadly speaking as we look forward to 2015 your view on whether or not you’ll be able to do better than the billion in 3 loan growth that you saw in 2014.