Webster Financial (WBS) 8-K Webster Reports Quarterly Earnings Per Share of $.84; Deposits Increase by $1.1 Billion Over the Past Year

Exhibit 99.1

Exhibit 99.1

Media Contact
Clark Finley 203-578-2287
cfinley@websterbank.com Investor Contact
Terry Mangan 203-578-2318
tmangan@websterbank.com

WEBSTER REPORTS QUARTERLY EARNINGS PER SHARE OF $.84; DEPOSITS
INCREASE BY $1.1 BILLION OVER THE PAST YEAR

WATERBURY, Conn., January 26, 2006 — Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income of $45.5 million in the fourth quarter compared to $16.3 million a year ago, which reflected a nonrecurring charge in conjunction with a balance sheet de-leveraging program. Net income per diluted share was $.84 compared to $.30 a year ago. For the full year, net income was $185.9 million compared to $153.8 million in 2004. Net income per share was $3.43 for 2005 and $3.00 in the prior year.

Cash net income, which adds stock-based compensation and intangible amortization expenses back to net income, was $50.1 million compared to $20.7 million in the year-ago quarter. Cash net income per share was $.93 in the fourth quarter compared to $.38 a year ago. For the full year, cash net income was $204.6 million compared to $170.2 million a year ago. Cash net income per share was $3.77 and $3.32 in the respective years.

Results in 2004 reflect the impact of Webster’s balance sheet de-leveraging program including $32.4 million of after-tax costs. Those costs reduced earnings per share by $.60 in the fourth quarter and by $.63 for the full year. Results in 2005 reflect one-time expenses equivalent to $.02 per share in the fourth quarter and $.10 for the full year incurred in support of Webster’s now-completed core infrastructure conversion project.

“We committed ourselves in 2005 to a set of core operating principles designed to increase tangible capital and reduce our exposure to rising interest rates while maintaining our focus on growing loans and deposits,” stated Webster Chairman and Chief Executive Officer James C. Smith. “Progress in each of these areas has strengthened our balance sheet and contributed to higher quality earnings. In addition, completion of our core infrastructure conversion project means that Webster now has the technology platform in place to support our vision to be the leading regional financial services provider.”

Included in net income are gains on the sale of securities. In the fourth quarter, these gains represented $.01 per share compared to $.02 a year ago exclusive of losses on securities under the de-leveraging transaction. For the full year 2005, securities gains were $.04 per share compared to $.25 a year ago apart from the de-leveraging transaction. The reduced level of securities gains in 2005 is consistent with Webster’s emphasis on delivering high quality earnings.

Revenues

Total revenues (net interest income plus total noninterest income) were $187.9 million in the fourth quarter compared to $180.6 million a year ago adjusted for the de-leveraging transaction, an increase of 4 percent. Adjusting both periods to exclude securities gains, total revenues grew by 4 percent as well. On this same basis, total revenues for all of 2005 were $734.6 million and increased by 10 percent from the prior year when also excluding Duff & Phelps, which was sold in the first quarter of 2004.

Net interest income totaled $129.7 million in the fourth quarter compared to $127.6 million in the year-ago period, an increase of 2 percent. This increase primarily reflects growth in earning assets over the past year, led by growth in commercial loans in particular, partially offset by the effects of a flatter yield curve and narrowing margins. Net interest income totaled $517.3 million in the full year 2005 and grew by 11 percent from 2004 as a result of growth in earning assets and margin benefit from the de-leveraging transaction.

Webster’s net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) was 3.22 percent in the fourth quarter compared to 3.25 percent a year ago and 3.26 percent in the third quarter. The decline from each period reflects the recent interest rate environment, which has resulted in asset yields not rising at the same pace as the cost of liabilities. For the full year 2005, however, the net interest margin improved to 3.29 percent compared to 3.11 percent the prior year, with the increase reflecting the benefit of Webster’s de-leveraging in the fourth quarter of 2004.

Total noninterest income was $58.2 million in the fourth quarter compared to $53.0 million a year ago adjusted for the de-leveraging transaction. Excluding securities gains of $1.0 million and $3.2 million of revenue particular to the quarter, noninterest income increased 9 percent from a year ago and totaled $54.0 million. Deposit service fees totaled $22.9 million and increased 11 percent from a year ago reflecting growth in customer transactions. Wealth management fees totaled $6.2 million and increased 19 percent reflecting strength in trust

fees and investment product sales. Loan and loan servicing fees totaled $9.3 million and increased 20 percent. Other income totaled $3.5 million compared to $2.7 million a year ago.

The provision for loan losses totaled $2.0 million in the fourth quarter and exceeded net loan charge-offs by $0.6 million. The provision was $4.0 million a year ago which exceeded net loan charge-offs by $1.3 million. For the full year, the provision totaled $9.5 million and exceeded net loan charge-offs by $5.5 million compared to the full year 2004 provision of $18.0 million which exceeded net loan charge-offs by $7.7 million. The annualized net loan charge-off ratio was 0.05 percent of average loans in the fourth quarter compared to 0.09 percent a year ago and 0.03 percent for all of 2005 compared to 0.10 percent in 2004.

Expenses

Total noninterest expenses of $119.4 million in the fourth quarter of 2005 reflected $4.3 million of expenses that were particular to the quarter, including $1.3 million of non-recurring charges under Webster’s core infrastructure conversion project. This compares to total noninterest expenses of $154.0 million a year ago, which included $45.8 million of de-leveraging costs. Further adjusting each period for acquisitions and investments inde novo branch expansion, total noninterest expenses were $108.8 million in the fourth quarter and $102.8 million a year ago. The increase from a year ago reflects investments in customer contact personnel, other employee-related costs and investments in technology to support Webster’s new core systems.

Balance Sheet Trends

Total assets were $17.8 billion at December 31, 2005 and increased by 5 percent from a year ago. Total loans were $12.3 billion and also increased by 5 percent from a year ago. Deposits were $11.6 billion and increased by $1.1 billion, or 10 percent, from a year ago aided by ourde novobranching program and the acquisition of HSA Bank in March 2005. The ratio of loans to deposits improved to 106 percent at December 31, 2005 compared to 111 percent a year ago.

“We opened eight new retail banking branches in 2005 across our southern New England franchise,” stated Webster President and Chief Operating Officer William T. Bromage. “These eight offices contributed to the $273 million of new deposits during the year under ourde novo branch expansion program that now has 19 branches opened since 2002 with a total of $572 million in deposits.”

At the end of the fourth quarter, commercial loans were $4.7 billion, including commercial and industrial loans at $2.9 billion, up 11 percent from a year ago, and commercial real estate loans at $1.8 billion, up 5 percent. Consumer loans, primarily home equity loans and lines, increased 5 percent to $2.8 billion compared to $2.6 billion a year ago. Commercial, commercial real estate and consumer loans comprised 61 percent of total loans at December 31, 2005 compared to 59 percent a year ago.

Demand and NOW deposits have grown by 10 percent and 19 percent, respectively, compared to a year ago while certificates of deposit balances have grown by 26 percent as consumer preferences have shifted to this product offering. Wholesale borrowings as a percent of total assets declined to 25 percent at December 31, 2005 compared to 28 percent a year ago as total deposit growth exceeded loan growth by almost $500 million over the past year.

“Deposits grew at twice the level of loans over the past year, which allowed us to reduce higher-cost borrowings by over $300 million,” stated Webster Chief Financial Officer William J. Healy. “As a result of our balance sheet management, the ratios of loans to deposits and borrowings to total assets, as well as our tangible equity ratio, improved significantly compared to a year ago.”

Book value per common share of $30.70 at December 31, 2005 increased from $28.79 a year ago. Tangible book value per share of $18.03 at December 31, 2005 increased from $16.30 last year. The ratio of tangible equity to tangible assets increased to 5.54 percent at December 31, 2005 compared to 5.21 percent a year ago. Return on average tangible equity was 18.8 percent in the fourth quarter compared to 22.4 percent a year ago apart from de-leveraging costs while the cash return on average tangible equity was 20.7 percent and 24.4 percent in the respective periods.

Asset Quality

Nonperforming assets increased during the quarter and totaled $73.0 million, or 0.41 percent of total assets, at December 31, 2005 compared to $60.4 million, or 0.34 percent, at September 30 and $39.2 million, or 0.23 percent, a year ago.

The allowance for loan losses was $155.6 million, or 1.27 percent of total loans, at December 31, 2005 compared to $150.1 million, or 1.28 percent, a year ago and $155.1 million, or 1.27 percent, at September 30. The ratio of the allowance to nonperforming loans at December 31, 2005 was 232 percent compared to 416 percent a year ago and 265 percent at September 30.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.8 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 157 banking offices, 304 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank.

For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website atwww.websteronline.com.

***

Conference Call

A conference call covering Webster’s 2005 fourth quarter earnings announcement will be held today, Thursday, January 26, at 11:00 a.m. Eastern Time and may be heard through Webster’s investor relations website atwww.wbst.com, or in listen-only mode by calling 1-877-407-3980 or 201-689-8475 internationally. The call will be archived on the website and available for future retrieval.

Forward-looking Statements

Statements in this press release regarding Webster Financial Corporation’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statement, see “Forward Looking Statements” in Webster’s Annual Report for 2004. Except as required by law, Webster does not undertake to update any such forward looking information.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. We believe that providing certain non-GAAP financial measures, such as cash basis net income, provides investors with information useful in understanding our financial performance, our performance trends and financial position. A reconciliation of cash basis net income to net income is included in the accompanying financial tables, elsewhere in this report.

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WEBSTER FINANCIAL CORP.

Selected Financial Highlights (unaudited)
	At or for the Three						At or for the
	Months Ended December 31,						Year Ended December 31,
(In thousands, except per share data)	2005			2004			2005			2004
Net income and performance ratios (annualized):
Net income	$	45,500		$	16,306		$	185,855		$	153,833
Net income per diluted common share		0.84			0.30			3.43			3.00
Return on average shareholders’ equity		11.04	%		4.28	%		11.52	%		11.14	%
Return on average tangible equity		18.81			7.50			19.95			18.03
Return on average assets		1.02			0.38			1.06			0.94
Noninterest income as a percentage of total revenue		30.99			27.67			29.92			31.94
Efficiency ratio (a,d)		63.53			87.33			61.71			65.00
Net income and performance ratios before deleveraging charges (annualized):
Net income	$	45,500		$	16,306		$	185,855		$	153,833
Debt prepayment penalties, net of tax		—			29,745			—			29,745
Loss on sale of securities, net of tax		—			2,702			—			2,702
Net income before deleveraging charges		45,500			48,753			185,855			186,280
Net income per diluted common share		0.84			0.90			3.43			3.63
Return on average shareholders’ equity		11.04	%		12.81	%		11.52	%		13.49	%
Return on average tangible equity		18.81			22.43			19.95			21.84
Return on average assets		1.02			1.13			1.06			1.13
Noninterest income as a percentage of total revenue		30.99			29.33			29.92			32.35
Efficiency Ratio (a)		63.53			59.97			61.71			58.00
Cash income and performance ratios (annualized) (b):
Net income	$	45,500		$	16,306		$	185,855		$	153,833
Stock-based compensation, net of tax		1,352			1,248			5,845			4,490
Intangible amortization, net of tax		3,250			3,149			12,943			11,924
Cash income		50,102			20,703			204,643			170,247
Cash income per diluted common share		0.93			0.38			3.77			3.32
Cash return on average shareholders’ equity		12.15	%		5.44	%		12.69	%		12.33	%
Cash return on average tangible equity		20.72			9.52			21.97			19.96
Cash return on average assets		1.12			0.48			1.17			1.04
Cash income and performance ratios before deleveraging charges (annualized) (b):
Net income before deleveraging charges	$	45,500		$	48,753		$	185,855		$	186,280
Stock-based compensation, net of tax		1,352			1,248			5,845			4,490
Intangible amortization, net of tax		3,250			3,149			12,943			11,924
Cash income		50,102			53,150			204,643			202,694
Cash income per diluted common share		0.93			0.98			3.77			3.95
Cash return on average shareholders’ equity		12.15	%		13.97	%		12.69	%		14.68	%
Cash return on average tangible equity		20.72			24.45			21.97			23.76
Cash return on average assets		1.12			1.23			1.17			1.23
Asset quality:
Allowance for loan losses	$	155,632		$	150,112		$	155,632		$	150,112
Nonperforming assets		73,014			39,166			73,014			39,166
Allowance for loan losses / total loans		1.27	%		1.28	%		1.27	%		1.28	%
Net charge-offs/ average loans (annualized)		0.05			0.09			0.03			0.10
Nonperforming loans / total loans		0.55			0.31			0.55			0.31
Nonperforming assets / total assets		0.41			0.23			0.41			0.23
Allowance for loan losses / nonperforming loans		231.50			415.50			231.50			415.50
Other ratios (annualized):
Tangible capital ratio		5.54	%		5.21	%		5.54	%		5.21	%
Shareholders’ equity / total assets		9.24			9.07			9.24			9.07
Interest-rate spread		3.18			3.22			3.25			3.09
Net interest margin		3.22			3.25			3.29			3.11

WEBSTER FINANCIAL CORP.

Selected Financial Highlights (unaudited)
Share related:
Book value per common share	$	30.70	$	28.79	$	30.70	$	28.79
Tangible book value per common share		18.03		16.30		18.03		16.30
Common stock closing price		46.90		50.64		46.90		50.64
Dividends declared per common share		0.25		0.23		0.98		0.90
Common shares issued and outstanding		53,662		53,628		53,662		53,628
Basic shares (average)		53,473		53,187		53,577		50,506
Diluted shares (average)		54,129		54,045		54,236		51,352

Footnotes:

(a)	Noninterest expense as a percentage of net interest income plus noninterest income.
(b)	Cash income represents net income excluding the after tax effects of non-cash charges related to the amortization of intangible assets and stock-based compensation, which includes stock options and restricted stock.
(c)	For purposes of this computation, unrealized gains (losses) are excluded from the average balance for rate calculations.
(d)	Excluding conversion and infrastructure costs, the efficiency ratio would be 62.84% and 87.16% for the three months ending December 31, 2005 and 2004 and 60.61% and 64.93% for twelve months ended December 31, 2005 and 2004, respectively.

Consolidated Statements of Condition (unaudited)
	December 31,			September 30,			December 31,
(In thousands)	2005			2005			2004
Assets:
Cash and due from depository institutions	$	293,706		$	269,859		$	248,825
Short-term investments		36,302			9,224			17,629
Securities:
Trading, at fair value		2,257			1,901			—
Available for sale, at fair value		2,555,419			2,668,226			2,494,406
Held-to-maturity securities		1,142,909			1,161,507			1,229,613
Total securities		3,700,585			3,831,634			3,724,019
Loans held for sale		267,919			247,365			147,211
Loans:
Residential mortgages		4,828,564			4,812,298			4,775,344
Commercial		2,876,528			2,978,537			2,584,738
Commercial real estate		1,808,494			1,666,384			1,715,047
Consumer		2,771,700			2,740,019			2,637,646
Total loans		12,285,286			12,197,238			11,712,775
Allowance for loan losses		(155,632	)		(155,052	)		(150,112	)
Loans, net		12,129,654			12,042,186			11,562,663
Accrued interest receivable		85,779			73,253			63,406
Premises and equipment, net		182,856			179,463			149,069
Goodwill and intangible assets		698,570			703,740			694,165
Cash surrender value of life insurance		237,822			235,467			228,120
Prepaid expenses and other assets		191,198			214,865			185,490
Total Assets	$	17,824,391		$	17,807,056		$	17,020,597
Liabilities and Shareholders’ Equity:
Deposits:
Demand deposits	$	1,546,096		$	1,431,642		$	1,409,682
NOW accounts		1,622,403			1,600,481			1,368,213
Money market deposit accounts		1,789,781			1,971,075			1,996,918
Savings accounts		2,015,045			2,032,927			2,253,073
Certificates of deposit		4,249,874			4,118,765			3,376,718
Total retail deposits		11,223,199			11,154,890			10,404,604
Treasury deposits		407,946			507,302			166,684
Total deposits		11,631,145			11,662,192			10,571,288
Federal Home Loan Bank advances		2,215,722			2,064,963			2,590,335
Securities sold under agreements to repurchase and other short-term debt		1,525,906			1,633,906			1,438,483
Other long-term debt		648,682			673,999			670,015
Accrued expenses and other liabilities		146,133			126,537			196,925
Total liabilities		16,167,588			16,161,597			15,467,046
Preferred stock of subsidiary corporation		9,577			9,577			9,577
Shareholders’ equity		1,647,226			1,635,882			1,543,974
Total Liabilities and Shareholders’ Equity	$	17,824,391		$	17,807,056		$	17,020,597

See Selected Financial Highlights for footnotes.

Consolidated Statements of Condition (unaudited)
	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
(In thousands, except per share data)	2005		2004			2005		2004
Interest income:
Loans	$	187,607	$	154,177		$	689,041	$	547,308
Securities and short-term investments		42,503		42,807			169,861		178,118
Loans held for sale		3,563		1,718			12,945		6,682
Total interest income		233,673		198,702			871,847		732,108
Interest expense:
Deposits		57,132		32,993			188,437		120,606
Borrowings		46,879		38,109			166,069		143,341
Total interest expense		104,011		71,102			354,506		263,947
Net interest income		129,662		127,600			517,341		468,161
Provision for loan losses		2,000		4,000			9,500		18,000
Net interest income after provision for loan losses		127,662		123,600			507,841		450,161
Noninterest income:
Deposit service fees		22,909		20,712			85,967		77,743
Insurance revenue		10,678		10,348			44,015		43,506
Loan and loan servicing fees		9,290		7,727			33,232		28,574
Wealth and investment services		6,174		5,198			23,151		22,207
Gain on sale of loans and loan servicing, net		2,322		2,492			11,573		13,305
Increase in cash surrender value of life insurance		2,360		2,283			9,241		8,835
Financial advisory services		—		—			—		3,808
Other		3,470		2,692			10,073		7,416
		57,203		51,452			217,252		205,394
Gain (loss) on sale of securities, net		1,026		(2,646	)		3,633		14,313
Total noninterest income		58,229		48,806			220,885		219,707
Noninterest expenses:
Compensation and benefits		64,905		57,128			241,469		219,320
Occupancy		11,141		9,909			43,292		35,820
Furniture and equipment		14,810		10,889			50,228		37,626
Intangible amortization		5,001		4,844			19,913		18,345
Marketing		3,981		2,533			14,267		13,380
Professional services		3,594		5,523			14,962		15,654
Conversion and infrastructure costs		1,281		300			8,138		500
Debt prepayment penalties		—		45,761			—		45,761
Other		14,646		17,161			63,301		60,731
Total noninterest expenses		119,359		154,048			455,570		447,137
Income before income taxes		66,532		18,358			273,156		222,731
Income taxes		21,032		2,052			87,301		68,898
Net income	$	45,500	$	16,306		$	185,855	$	153,833
Diluted shares (average)		54,129		54,045			54,236		51,352
Net income per common share:
Basic	$	0.85	$	0.31		$	3.47	$	3.05
Diluted		0.84		0.30			3.43		3.00

See Selected Financial Highlights for footnotes.

Consolidated Statements of Income (unaudited)

	Three Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31
(In thousands, except per share data)	2005		2005		2005		2005		2004
Interest income:
Loans	$	187,607	$	175,680	$	166,967	$	158,787	$	154,177
Securities and short-term investments		42,503		43,775		42,684		40,899		42,807
Loans held for sale		3,563		3,686		2,964		2,732		1,718
Total interest income		233,673		223,141		212,615		202,418		198,702
Interest expense:
Deposits		57,132		51,338		44,099		35,868		32,993
Borrowings		46,879		42,191		38,681		38,318		38,109
Total interest expense		104,011		93,529		82,780		74,186		71,102
Net interest income		129,662		129,612		129,835		128,232		127,600
Provision for loan losses		2,000		2,000		2,000		3,500		4,000
Net interest income after provision for loan losses		127,662		127,612		127,835		124,732		123,600
Noninterest income:
Deposit service fees		22,909		22,182		21,747		19,129		20,712
Insurance revenue		10,678		10,973		10,562		11,802		10,348
Loan and loan servicing fees		9,290		7,739		7,274		8,929		7,727
Wealth and investment services		6,174		5,554		6,028		5,395		5,198
Gain on sale of loans and loan servicing, net		2,322		3,703		3,012		2,536		2,492
Increase in cash surrender value of life insurance		2,360		2,341		2,302		2,238		2,283
Other		3,470		2,347		2,013		2,243		2,692
		57,203		54,839		52,938		52,272		51,452
Gain (loss) on sale of securities, net		1,026		1,141		710		756		(2,646	)
Total noninterest income		58,229		55,980		53,648		53,028		48,806
Noninterest expenses:
Compensation and benefits		64,905		60,808		57,854		57,902		57,128
Occupancy		11,141		10,482		10,810		10,859		9,909
Furniture and equipment		14,810		13,009		11,611		10,798		10,889
Intangible amortization		5,001		5,001		5,009		4,902		4,844
Marketing		3,981		3,339		3,664		3,283		2,533
Professional services		3,594		3,626		3,972		3,770		5,523
Conversion and infrastructure costs		1,281		2,217		3,506		1,134		300
Debt prepayment penalties		—		—		—		—		45,761
Other		14,646		16,450		17,079		15,126		17,161
Total noninterest expenses		119,359		114,932		113,505		107,774		154,048
Income before income taxes		66,532		68,660		67,978		69,986		18,358
Income taxes		21,032		22,058		21,720		22,491		2,052
Net income	$	45,500	$	46,602	$	46,258	$	47,495	$	16,306
Diluted shares (average)		54,129		54,310		54,278		54,217		54,045
Net income per common share:
Basic	$	0.85	$	0.87	$	0.86	$	0.89	$	0.31
Diluted		0.84		0.86		0.85		0.88		0.30

See Selected Financial Highlights for footnotes.

Retail and Wholesale Interest-Rate Spreads (unaudited)

Three Months Ended,	December			September			June			March			December
	2005			2005			2005			2005			2004
Interest-rate spread
Yield on interest-earning assets		5.73	%		5.55	%		5.40	%		5.22	%		5.02	%
Cost of interest-bearing liabilities		2.55			2.33			2.11			1.94			1.80
Interest-rate spread		3.18	%		3.22	%		3.29	%		3.28	%		3.22	%
Net interest margin		3.22			3.26			3.32			3.32			3.25
Retail interest-rate spread
Yield on loans and loans held for sale		6.02	%		5.83	%		5.66	%		5.44	%		5.25	%
Cost of deposits		1.94			1.76			1.57			1.37			1.25
Spread		4.08	%		4.07	%		4.09	%		4.07	%		4.00	%
Wholesale interest-rate spread
Yield on securities and short-term investments		4.75	%		4.67	%		4.62	%		4.52	%		4.37	%
Cost of borrowings		4.19			3.84			3.54			3.23			2.91
Spread		0.56	%		0.83	%		1.08	%		1.29	%		1.46	%

Consolidated Average Statements of Condition (unaudited)

Three Months Ended December 31,	2005								2004
						Fully tax-								Fully tax-
	Average					equivalent			Average					equivalent
(Dollars in thousands)	balance		Interest			yield/rate			balance		Interest			yield/rate
Assets:
Interest-earning assets:
Loans	$	12,328,141	$	187,608			6.03	%	$	11,649,909	$	154,177			5.25	%
Securities		3,715,720		44,733			4.76	(c)		4,053,134		44,495			4.39	(c)
Loans held for sale		251,169		3,563			5.67			136,197		1,718			5.05
Short-term investments		19,846		147			2.90			25,772		134			2.03
Total interest-earning assets		16,314,876		236,051			5.73			15,865,012		200,524			5.02
Noninterest-earning assets		1,537,062								1,411,162
Total assets	$	17,851,938							$	17,276,174
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,522,306	$	—			—	%	$	1,399,592	$	—			—	%
Savings, NOW and money market deposit accounts		5,502,733		19,065			1.37			5,643,515		12,340			0.87
Time deposits		4,665,580		38,067			3.24			3,434,389		20,653			2.39
Total deposits		11,690,619		57,132			1.94			10,477,496		32,993			1.25
Federal Home Loan Bank advances		2,280,934		22,742			3.90			2,690,001		19,810			2.88
Repurchase agreements and other short-term debt		1,454,730		12,568			3.38			1,778,435		8,455			1.86
Other long-term debt		665,062		11,569			6.96			686,226		9,844			5.74
Total borrowings		4,400,726		46,879			4.19			5,154,662		38,109			2.91
Total interest-bearing liabilities		16,091,345		104,011			2.55			15,632,158		71,102			1.80
Noninterest-bearing liabilities		101,994								112,063
Total liabilities		16,193,339								15,744,221
Preferred stock of subsidiary corporation		9,577								9,577
Shareholders’ equity		1,649,022								1,522,376
Total liabilities and shareholders’ equity	$	17,851,938							$	17,276,174
				132,040								129,422
Less: tax-equivalent adjustment				(2,378	)							(1,822	)
Net interest income			$	129,662							$	127,600
Interest-rate spread							3.18	%							3.22	%
Net interest margin							3.22	%							3.25	%

See Selected Financial Highlights for footnotes.

Consolidated Average Statements of Condition (unaudited)

Twelve Months Ended December 31,	2005								2004
						Fully tax-								Fully tax-
	Average					equivalent			Average					equivalent
(Dollars in thousands)	balance		Interest			yield/rate			balance		Interest			yield/rate
Assets:
Interest-earning assets:
Loans	$	11,930,776	$	689,048			5.78	%	$	10,719,446	$	547,308			5.11	%
Securities		3,806,289		178,106			4.68	(c)		4,331,385		183,028			4.23	(c)
Loans held for sale		232,695		12,945			5.56			129,945		6,682			5.14
Short-term investments		19,982		537			2.69			30,651		390			1.27
Total interest-earning assets		15,989,742		880,636			5.50			15,211,427		737,408			4.85
Noninterest-earning assets		1,484,723								1,234,124
Total assets	$	17,474,465							$	16,445,551
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,449,596	$	—			—	%	$	1,255,897	$	—			—	%
Savings, NOW and money market deposit accounts		5,633,897		66,226			1.18			5,286,637		47,683			0.90
Time deposits		4,215,801		122,211			2.90			3,162,939		72,923			2.31
Total deposits		11,299,294		188,437			1.67			9,705,473		120,606			1.24
Federal Home Loan Bank advances		2,256,216		78,623			3.48			2,774,287	��	82,092			2.96
Repurchase agreements and other short-term debt		1,520,086		43,842			2.88			1,834,605		24,693			1.35
Other long-term debt		673,562		43,604			6.47			646,636		36,556			5.65
Total borrowings		4,449,864		166,069			3.73			5,255,528		143,341			2.73
Total interest-bearing liabilities		15,749,158		354,506			2.25			14,961,001		263,947			1.76
Noninterest-bearing liabilities		102,732								94,145
Total liabilities		15,851,890								15,055,146
Preferred stock of subsidiary corporation		9,577								9,577
Shareholders’ equity		1,612,998								1,380,828
Total liabilities and shareholders’ equity	$	17,474,465							$	16,445,551
				526,130								473,461
Less: tax-equivalent adjustment				(8,789	)							(5,300	)
Net interest income			$	517,341							$	468,161
Interest-rate spread							3.25	%							3.09	%
Net interest margin							3.29	%							3.11	%

See Selected Financial Highlights for footnotes.

	At or for the Three Months Ended
(Unaudited)	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
(Dollars in thousands)	2005			2005			2005			2005			2004
Asset Quality
Nonperforming loans:
Commercial:
Commercial	$	43,309		$	27,544		$	19,073		$	17,112		$	14,624
Equipment financing		3,065			3,209			3,466			3,800			3,383
Total commercial		46,374			30,753			22,539			20,912			18,007
Commercial real estate		12,047			19,650			11,654			15,609			8,431
Residential		6,979			6,436			6,690			7,528			7,796
Consumer		1,829			1,699			1,019			1,586			1,894
Total nonperforming loans		67,229			58,538			41,902			45,635			36,128
Loans held for sale		—			181			—			492			—
Other real estate owned and repossessed assets:
Commercial		5,126			1,408			2,217			2,472			2,824
Residential		232			218			112			446			100
Consumer		427			10			10			85			114
Total other real estate owned and repossessed assets		5,785			1,636			2,339			3,003			3,038
Total nonperforming assets	$	73,014		$	60,355		$	44,241		$	49,130		$	39,166
Allowance for Loan Losses
Beginning balance	$	155,052		$	154,822		$	152,519		$	150,112		$	148,179
Allowance for purchased loans		—			—			—			—			617
Provision		2,000			2,000			2,000			3,500			4,000
Charge-offs:
Commercial		3,272			2,204			1,432			2,155			3,432
Residential		110			378			178			167			367
Consumer		153			137			201			142			147
Total charge-offs		3,535			2,719			1,811			2,464			3,946
Recoveries		(2,115	)		(949	)		(2,114	)		(1,371	)		(1,262	)
Net loan charge-offs (recoveries)		1,420			1,770			(303	)		1,093			2,684
Ending balance	$	155,632		$	155,052		$	154,822		$	152,519		$	150,112
Asset Quality Ratios:
Allowance for loan losses / total loans		1.27	%		1.27	%		1.31	%		1.30	%		1.28	%
Net charge-offs (recoveries)/ average loans (annualized)		0.05			0.06			(0.01	)		0.04			0.09
Nonperforming loans / total loans		0.55			0.48			0.35			0.39			0.31
Nonperforming assets / total assets		0.41			0.34			0.25			0.28			0.23
Allowance for loan losses / nonperforming loans		231.50			264.87			369.49			334.21			415.50