WATERBURY, Conn. – Webster Financial Corp.’s fourth-quarter results aren’t going to change after all.
On Jan. 23, when the parent of Webster Bank N.A. posted a $300.5 million loss for the final quarter of 2008, it made a point of calling the results “preliminary.” (READ MORE)
The company noted at the time that it was conducting a review of its goodwill impairment in its retail banking segment, and warned that the review could change its fourth-quarter impairment charge, which then stood at $188.87 million.
Well, the good news for Webster: The company announced last week that it has completed its review and determined that no additional impairment charge is needed. Also, it said the review found no change in the valuation allowance for its deferred tax assets as of Dec. 31.
The bad news: Webster still lost $300.5 million in the fourth quarter, compared with its year-earlier loss of $8.70 million, just as the bank had said in its initial report five weeks earlier.
Aside from the $188.87 million non-cash goodwill charge, the quarterly results included a $129.59 million write-down of certain investments to fair value and a $100 million provision against possible loan losses. The goodwill impairment does not affect Webster’s liquidity and capital positions, the company noted.
Webster said it will continue testing its goodwill for potential impairments in the future.
Webster Financial Corp. (NYSE: WBS) is the holding company for Webster Bank N.A., a financial services company with more than 180 branches including 10 branches in Rhode Island. Additional information is available at www.WebsterOnline.com.
