Webster Financial (WBS) 8-K Webster Reports Record Growth In Deposits and First

EXHIBIT 99.1

Media Contact	Investor Contact
Ed Steadham 203-578-2287	Terry Mangan 203-578-2318
esteadham@websterbank.com	tmangan@websterbank.com

WEBSTER REPORTS RECORD GROWTH IN DEPOSITS AND FIRST

QUARTER RESULTS

WATERBURY, Conn., April 21, 2009 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a net operating loss of $11.3 million before preferred dividends in the quarter ended March 31, 2009 and record deposit growth for the quarter.

Key points for the quarter include:

Deposits grew a record $810 million, improving the loan-to-deposit ratio to 95 percent.

The net operating loss of $11.3 million before preferred dividends is narrowed from recent quarters.

Webster recorded $66.0 million for credit losses. Net loan charge-offs were $30.1 million. The allowance for credit losses increased to 2.33 % of total loans.

Webster’s strong tangible capital position grew to 7.75 percent at March 31, 2009 compared to 7.70 percent at December 31, 2008 and 5.77 percent a year ago. Webster exceeds all requirements for well capitalized regulatory ratios by a significant margin.

Noninterest expenses declined by 6 percent from a year ago, apart from increases in foreclosed property expense and FDIC deposit insurance assessment.

Webster Chairman and Chief Executive Officer James C. Smith said, “While the underlying performance of our business is encouraging, our first quarter results reflect our cautious approach in the face of a weakening economy. As in the previous quarter, we made sizeable provisions for loan losses.

“Webster enjoyed record growth of $810 million in deposits across our business lines during the period as consumers and businesses increasingly value strong, local banks,” Smith continued.

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“Meanwhile, we continue to lend actively in the market and extended $762 million in new credit to businesses and consumers during the quarter.”

Webster also announced today that its Board of Directors, at its April 20, 2009 meeting, declared a regular quarterly cash dividend of $.01 per common share. The dividend is payable on May 18, 2009 to shareholders of record on May 4, 2009.

Net interest income

• Net interest margin was 2.99 percent in the first quarter compared to 3.20 percent in the fourth quarter; the anticipated decline reflects the full-quarter impact of Federal Reserve rate reductions totaling 175 bps during the course of the fourth quarter as well as interest reversals in the first quarter from higher levels of non performing assets.

• Average interest-earning assets totaled $16.1 billion, up from $15.9 billion last quarter.

Provision for credit losses

• $54 million of the provision for credit losses recorded in the quarter was related to the Company’s continuing portfolios and $12 million was related to the discontinued liquidating portfolio.

• Net charge-offs were $30.1 million in the quarter compared to $52.8 million for the quarter ended December 31, 2008.

Noninterest income

• Deposit service fees declined by $2.1 million from last quarter, primarily from seasonality in the first quarter.

• Wealth and investment services revenues declined by $730,000 from the last quarter, primarily due to a decline in the value of assets under management due to prevailing market conditions.

• Loan related fees declined by $665,000 from the last quarter, primarily from lower origination levels in certain asset classes.

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• Net gain on sale of securities totaled $4.5 million, the result of a $5.7 million gain on sale of $393 million of mortgage backed securities during the quarter and losses of $1.2 million on sales of $5 million in common stock.

• Gain of $6.0 million in connection with the early extinguishment of $22.5 million of subordinated notes and related swaps

Noninterest expenses

• Noninterest expenses declined by $7.1 million from a year ago excluding foreclosed property expenses and FDIC insurance assessment. The increase in noninterest expenses from last quarter primarily represents seasonality in compensation and benefits expense and higher amounts for foreclosed property expense and FDIC deposit insurance assessment.

Income taxes

• Due to the pre-tax loss, the effective tax rate for the first quarter was not meaningful. The Company recorded a $0.6 million tax benefit in the quarter on the $11.9 million pre-tax loss applicable to continuing operations in the period.

Investment securities

• Total investment securities were $3.7 billion at March 31, 2009 compared to $3.8 billion at December 31, 2008. The market value of the held to maturity portfolio improved to $ 50 million in unrealized gains, while the market value on the available for sale portfolio was relatively unchanged from December 31, 2008 with $110 million in unrealized losses.

Loans

• Total loans were $12.1 billion at March 31, 2009 compared to $12.2 billion at December 31, 2008. In the first quarter, residential mortgage loans and commercial real estate loans increased by $115.6 million and $18.1 million, respectively, while commercial loans and consumer loans declined by $171.8 million and $54.1 million, respectively.

• In-market loan originations increased by $200 million from the fourth quarter.

• Out-of-market asset based loans declined by $92.9 million from year-end, or more than half of the decline in commercial loans noted above.

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• The discontinued liquidating portfolio of indirect home equity and national construction loans, included in the consumer and residential loan amounts, declined by $22.3 million from year-end.

Asset quality

• Total nonperforming loans were $316.2 million or 2.61 percent of total loans at March 31, 2009 compared to $232.6 million or 1.91 percent at December 31, 2008. The increase in nonperforming loans was primarily attributed to increased non accruals in commercial loan categories of $58 million, $14 million in residential loans and $13 million in consumer loans.

• Past due loans for the continuing portfolios declined to $112.8 million at March 31, 2009 compared to $118.4 million at December 31, 2008. Past due loans for the liquidating portfolio declined to $12.2 million at March 31, 2009 compared to $20.1 million at December 31, 2008.

Deposits and borrowings

• Total deposits were $12.7 billion at March 31, 2009 compared to $11.9 billion at December 31, 2008. Money market, savings, NOW accounts and demand deposits increased $438.6 million, $214.9 million, $133.7 million and $37.0 million, respectively, while certificates of deposits decreased $38.6 million. Retail, HSA Bank and Government Finance deposits grew by $256 million, $86 million and $393 million, respectively.

• Core deposits, which exclude certificates of deposits and brokered deposits, represented 61.7 percent of total deposits at March 31, 2009 compared to 59.0 percent at December 31, 2008 and 60.7 percent a year ago.

• Total borrowings were $2.5 billion, a decline of $1.1 billion from $3.6 billion at December 31, 2008. FHLB advances declined from $1.34 billion at December 31, 2008 to $671 million at March 31, 2009.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.3 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 492 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the

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insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. 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 first quarter earnings announcement will be held today, Tuesday, April 21, at 9:00 a.m. EDT and may be heard through Webster’s investor relations website at www.wbst.com, or in listen-only mode by calling 1-877-407-8289 or 201-689-8341 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 2008. 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. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying selected financial highlights table.

We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

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WEBSTER FINANCIAL CORPORATION

Selected Financial Highlights (unaudited)

	At or for the Three Months Ended March 31,
	2009			2008
	(In thousands, except per share data)
Net income (loss) and performance ratios (annualized):
Net income (loss)	$	(11,341	)	$	24,365
Net income (loss) per diluted common share		(0.41	)		0.47
Return on average shareholders’ equity		(2.44	)%		5.62	%
Return on average tangible equity		(3.47	)		9.95
Return on average assets		(0.26	)		0.57
Income (loss) from continuing operations and performance ratios (annualized):
Income (loss) from continuing operations	$	(11,341	)	$	26,489
Net income (loss) from continuing operations per diluted common share		(0.41	)		0.51
Return on average shareholders’ equity		(2.44	)%		6.11	%
Return on average tangible equity		(3.47	)		10.82
Return on average assets		(0.26	)		0.62
Noninterest income as a percentage of total revenue		31.41			27.71
Efficiency ratio (a)		67.59			65.21
Asset quality:
Allowance for credit losses	$	281,729		$	189,808
Nonperforming assets		348,351			153,984
Allowance for credit losses / total loans		2.33	%		1.51	%
Net charge-offs / average loans (annualized)		0.99			0.75
Nonperforming loans / total loans		2.61			1.11
Nonperforming assets / total loans plus OREO		2.87			1.22
Allowance for credit losses / nonperforming loans		89.11			135.87
Other ratios (annualized):
Tangible capital ratio		7.75	%		5.77	%
Tangible common equity ratio		4.05			5.77
Total-risk based capital (d)		14.40			11.37
Shareholders’ equity / total assets		10.75			9.96
Interest-rate spread		2.91			3.20
Net interest margin		2.99			3.27
Share related:
Book value per common share	$	23.45		$	32.71
Tangible book value per common share		13.02			18.36
Common stock closing price		4.25			27.87
Dividends declared per common share		0.01			0.30
Common shares issued and outstanding		52,830			52,490
Basic shares (average)		52,102			52,001
Diluted shares (average)		52,102			52,297

Footnotes:

(a) Calculated using SNL’s methodology - noninterest expense (excluding foreclosed property expenses, intangible amortization, goodwill impairments and other charges) as a percentage of net interest income (FTE basis) plus noninterest income (excluding gain/loss on securities and other charges).

(b) For purposes of the yield computation, unrealized gains (losses) on securities available for sale are excluded from the average balance.

(c) NCLC is defined as National Construction Lending Center

(d) The ratios presented are projected for the 2009 reporting periods and actual for the 2008 reporting periods.

WEBSTER FINANCIAL CORPORATION

Consolidated Balance Sheet (unaudited)

	March 31, 2009			December 31, 2008			March 31, 2008
	(In thousands)
Assets:
Cash and due from depository institutions	$	208,862		$	259,208		$	274,321
Short-term investments		19,942			22,154			4,042
Investment securities:
Trading, at fair value		—			77			1,049
Available for sale, at fair value		1,097,229			1,188,705			760,502
Held-to-maturity		2,429,887			2,522,511			2,091,918
Other securities		134,874			134,874			117,213
Total securities		3,661,990			3,846,167			2,970,682
Loans held for sale		48,876			24,524			8,223
Loans:
Residential mortgages		3,184,082			3,068,441			3,635,314
Commercial		3,415,051			3,586,807			3,571,954
Commercial real estate		2,250,295			2,232,174			2,196,110
Consumer		3,246,031			3,300,169			3,197,591
Total loans		12,095,459			12,187,591			12,600,969
Allowance for loan losses		(270,929	)		(235,329	)		(180,308	)
Loans, net		11,824,530			11,952,262			12,420,661
Accrued interest receivable		67,951			74,307			77,593
Premises and equipment, net		182,629			185,928			192,928
Goodwill and other intangible assets, net		562,462			563,926			766,467
Cash surrender value of life insurance		282,399			279,807			271,947
Assets held for disposition		5,571			5,571			6,912
Unsettled trades		750			105			27,568
Deferred tax assets, net		199,531			189,337			80,565
Prepaid expenses and other assets		191,241			180,241			141,653
Total Assets	$	17,256,734		$	17,583,537		$	17,243,562
Liabilities and Equity:
Deposits:
Demand deposits	$	1,530,334		$	1,493,295		$	1,475,258
NOW accounts		1,935,926			1,802,250			1,825,963
Money market deposit accounts		1,794,943			1,356,361			1,704,655
Savings accounts		2,576,058			2,361,169			2,361,522
Certificates of deposit		4,638,977			4,677,615			4,564,887
Brokered deposits		218,520			194,200			211,007
Total deposits		12,694,758			11,884,890			12,143,292
Securities sold under agreements to repurchase and other short-term debt		1,146,852			1,570,971			1,642,320
Federal Home Loan Bank advances		671,294			1,335,996			869,079
Long-term debt		661,968			687,797			666,891
Liabilities held for disposition		—			—			806
Accrued expenses and other liabilities		216,789			220,187			194,881
Total liabilities		15,391,661			15,699,841			15,517,269
Shareholders’ equity		1,855,496			1,874,119			1,716,716
Noncontrolling interest		9,577			9,577			9,577
Total equity		1,865,073			1,883,696			1,726,293
Total Liabilities and Equity	$	17,256,734		$	17,583,537		$	17,243,562

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31,
	2009			2008
	(In thousands, except per share data)
Interest income:
Loans	$	140,767		$	191,272
Investments		50,827			39,332
Loans held for sale		164			1,400
Total interest income		191,758			232,004
Interest expense:
Deposits		52,908			75,242
Borrowings		20,653			31,906
Total interest expense		73,561			107,148
Net interest income		118,197			124,856
Provision for credit losses		66,000			15,800
Net interest income after provision for credit losses		52,197			109,056
Noninterest income:
Deposit service fees		27,959			28,433
Loan related fees		6,482			6,858
Wealth and investment services		5,750			6,956
Mortgage banking activities		606			740
Increase in cash surrender value of life insurance		2,592			2,581
Net gain on sale of investment securities		4,458			123
Other income		275			1,784
		48,122			47,475
Gain on early extinguishment of debt and swaps		5,993			—
Loss on write-down of investments to fair value		—			(1,253	)
Visa share redemption		—			1,625
Total noninterest income		54,115			47,847
Noninterest expenses:
Compensation and benefits		56,469			63,443
Occupancy		14,295			13,682
Furniture and equipment		15,140			15,160
Marketing		3,106			3,643
Outside services		3,784			4,153
Intangible amortization		1,463			1,548
Foreclosed and repossessed property expenses		1,179			280
REO and foreclosed writedowns		3,450			233
FDIC deposit insurance assessment		4,590			354
Other expenses		14,530			14,265
		118,006			116,761
Severance and other costs		240			(650	)
Total noninterest expenses		118,246			116,111
Income (loss) from continuing operations before income taxes		(11,934	)		40,792
Income taxes (benefit)		(593	)		14,303
Income (loss) from continuing operations		(11,341	)		26,489
Income (loss) from discontinued operations, net of tax		—			(2,124	)
Net income (loss)	$	(11,341	)	$	24,365
Preferred stock dividends and accretion of discount		10,215			—
Net income (loss) available to common shareholders	$	(21,556	)	$	24,365
Diluted shares (average)		52,102			52,297
Net income (loss) per common share:
Basic
Income (loss) from continuing operations	$	(0.41	)	$	0.51
Net income (loss)		(0.41	)		0.47
Diluted
Income (loss) from continuing operations		(0.41	)		0.51
Net income (loss)		(0.41	)		0.47

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Consolidated Statements of Operations (unaudited)

	Three Months Ended
	March 31, 2009			Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008
	(In thousands, except per share data)
Interest income:
Loans	$	140,767		$	168,200		$	175,363		$	175,786		$	191,272
Investments		50,827			40,398			39,210			38,115			39,332
Loans held for sale		164			51			54			92			1,400
Total interest income		191,758			208,649			214,627			213,993			232,004
Interest expense:
Deposits		52,908			57,154			57,731			60,055			75,242
Borrowings		20,653			25,427			27,715			28,252			31,906
Total interest expense		73,561			82,581			85,446			88,307			107,148
Net interest income		118,197			126,068			129,181			125,686			124,856
Provision for credit losses		66,000			100,000			45,500			25,000			15,800
Net interest income after provision for credit losses		52,197			26,068			83,681			100,686			109,056
Noninterest income:
Deposit service fees		27,959			30,018			31,738			29,943			28,433
Loan related fees		6,482			7,147			7,171			7,891			6,858
Wealth and investment services		5,750			6,480			7,070			7,634			6,956
Mortgage banking activities		606			336			50			104			740
Increase in cash surrender value of life insurance		2,592			2,631			2,606			2,623			2,581
Net gain (loss) on sale of investment securities		4,458			(4,233	)		(50	)		126			123
Other income		275			1,315			2,731			854			1,784
		48,122			43,694			51,316			49,175			47,475
Gain on early extinguishment of debt and swaps		5,993			—			—			—			—
Loss on write-down of investments to fair value		—			(129,593	)		(33,507	)		(54,924	)		(1,253	)
Loss on sale of FNMA/FHLMC preferred stock		—			—			(2,060	)		—			—
VISA share redemption		—			—			—			—			1,625
Total noninterest income		54,115			(85,899	)		15,749			(5,749	)		47,847
Noninterest expenses:
Compensation and benefits		56,469			52,078			61,314			62,866			63,443
Occupancy		14,295			13,406			12,827			13,128			13,682
Furniture and equipment		15,140			15,469			14,892			15,634			15,160
Marketing		3,106			2,895			2,478			4,940			3,643
Outside services		3,784			4,101			3,798			3,706			4,153
Intangible amortization		1,463			1,463			1,464			1,464			1,548
Foreclosed and repossessed property expenses		1,179			1,799			1,496			1,068			280
REO and foreclosed writedowns		3,450			1,615			1,968			484			233
FDIC deposit insurance assessment		4,590			3,468			532			344			354
Other expenses		14,530			13,593			14,227			16,221			14,265
		118,006			109,887			114,996			119,855			116,761
Severance and other costs		240			5,905			1,535			9,368			(650	)
Goodwill impairment		—			188,866			1,013			8,500			—
Total noninterest expenses		118,246			304,658			117,544			137,723			116,111
Income (loss) from continuing operations before income taxes		(11,934	)		(364,489	)		(18,114	)		(42,786	)		40,792
Income taxes (benefit)		(593	)		(63,980	)		(1,878	)		(14,285	)		14,303
Income (loss) from continuing operations		(11,341	)		(300,509	)		(16,236	)		(28,501	)		26,489
Income (loss) from discontinued operations, net of tax		—			8			(518	)		(439	)		(2,124	)
Net income (loss)	$	(11,341	)	$	(300,501	)	$	(16,754	)	$	(28,940	)	$	24,365
Preferred stock dividends and accretion of discount		10,215			7,093			4,994			—			—
Net income (loss) available to common shareholders	$	(21,556	)	$	(307,594	)	$	(21,748	)	$	(28,940	)	$	24,365
Diluted shares (average)		52,102			52,031			52,032			52,017			52,297
Net income (loss) per common share:
Basic
Income (loss) from continuing operations	$	(0.41	)	$	(5.91	)	$	(0.41	)	$	(0.55	)	$	0.51
Net income (loss)		(0.41	)		(5.91	)		(0.42	)		(0.56	)		0.47
Diluted
Income (loss) from continuing operations		(0.41	)		(5.91	)		(0.41	)		(0.55	)		0.51
Net income (loss)		(0.41	)		(5.91	)		(0.42	)		(0.56	)		0.47

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Interest-Rate Spreads (unaudited)

	Three Months Ended
	March 31, 2009		December 31, 2008		September 30, 2008		June 30, 2008		March 31, 2008
Interest-rate spread
Yield on interest-earning assets	4.82	%	5.24	%	5.45	%	5.51	%	6.02	%
Cost of interest-bearing liabilities	1.91		2.13		2.21		2.31		2.82
Interest-rate spread	2.91	%	3.11	%	3.24	%	3.20	%	3.20	%
Net interest margin	2.99	%	3.20	%	3.32	%	3.26	%	3.27	%

Consolidated Average Balances, Yields and Rates Paid (unaudited)

	Three Months Ended March 31,
	2009							2008
	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance		Interest			Fully tax- equivalent yield/rate
	(Dollars in thousands)
Assets:
Interest-earning assets:
Loans	$	12,151,016	$	140,767		4.65	%	$	12,540,115	$	191,272		6.08	%
Investment securities (b)		3,946,429		54,511		5.36			2,954,885		42,973		5.75
Loans held for sale		20,415		164		3.22			96,372		1,400		5.81
Short-term investments		20,148		32		0.63			3,690		37		3.98
Total interest-earning assets		16,138,008		195,474		4.82			15,595,062		235,682		6.02
Noninterest-earning assets		1,466,046							1,538,898
Total assets	$	17,604,054						$	17,133,960
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,507,206	$	—		—	%	$	1,437,553	$	—		—	%
Savings, NOW and money market
deposit accounts		5,943,285		15,711		1.07			5,796,671		24,180		1.67
Time deposits		4,838,449		37,197		3.12			4,938,280		51,062		4.15
Total deposits		12,288,940		52,908		1.75			12,172,504		75,242		2.49
Securities sold under agreements to repurchase and other short-term debt		1,695,580		5,800		1.37			1,359,763		11,219		3.26
Federal Home Loan Bank advances		870,368		7,054		3.24			1,039,936		9,879		3.76
Long-term debt		681,371		7,799		4.58			658,789		10,808		6.56
Total borrowings		3,247,319		20,653		2.54			3,058,488		31,906		4.14
Total interest-bearing liabilities		15,536,259		73,561		1.91			15,230,992		107,148		2.82
Noninterest-bearing liabilities		199,648							160,546
Total liabilities		15,735,907							15,391,538
Preferred stock of subsidiary corporation		9,577							9,577
Shareholders’ equity		1,858,570							1,732,845
Total liabilities and shareholders’ equity	$	17,604,054						$	17,133,960
Tax-equivalent net interest income				121,913							128,534
Less: tax-equivalent adjustment				(3,716	)						(3,678	)
Net interest income			$	118,197						$	124,856
Interest-rate spread						2.91	%						3.20	%
Net interest margin						2.99	%						3.27	%

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Loan balances (unaudited)

	March 31, 2009			Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008
	(Dollars in thousands)
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages	$	3,170,908		$	3,049,706		$	3,542,416		$	3,547,997		$	3,580,914
Commercial		1,738,640			1,797,135			1,803,321			1,792,528			1,754,738
Equipment financing		1,016,718			1,037,077			1,006,238			1,002,533			983,455
Asset based lending		659,694			752,595			867,510			842,334			833,761
Commercial real estate		2,094,751			2,070,641			2,147,617			2,083,600			1,951,186
Residential development		155,544			161,533			217,564			230,897			244,924
Consumer		2,979,117			3,016,524			2,960,491			2,910,055			2,871,102
Total continuing		11,815,372			11,885,211			12,545,157			12,409,944			12,220,080
Allowance for loan losses		(226,562	)		(191,426	)		(161,331	)		(151,997	)		(138,191	)
Total continuing, net		11,588,810			11,693,785			12,383,826			12,257,947			12,081,889
Liquidating Portfolio:
NCLC (c)		13,174			18,735			25,409			46,103			54,400
Consumer		266,913			283,645			295,823			310,407			326,489
Total liquidating portfolio		280,087			302,380			321,232			356,510			380,889
Allowance for loan losses		(44,367	)		(43,903	)		(27,838	)		(32,871	)		(42,117	)
Total liquidating, net		235,720			258,477			293,394			323,639			338,772
Total Loan Balances (actuals)		12,095,459			12,187,591			12,866,389			12,766,454			12,600,969
Allowances for loan loss		(270,929	)		(235,329	)		(189,169	)		(184,868	)		(180,308	)
Loans, net	$	11,824,530		$	11,952,262		$	12,677,220		$	12,581,586		$	12,420,661
Loan Balances (average):
Continuing Portfolio:
Residential mortgages	$	3,092,512		$	3,449,202		$	3,542,938		$	3,564,040		$	3,576,090
Commercial		1,784,062			1,811,527			1,796,598			1,778,444			1,750,913
Equipment finance		1,026,322			1,015,340			1,007,465			1,001,358			984,313
Asset based lending		701,263			842,148			844,518			836,934			822,794
Commercial real estate		2,083,861			2,182,228			2,120,589			2,016,430			1,867,170
Residential development		158,924			161,533			217,564			230,897			244,924
Consumer		3,012,178			2,989,393			2,924,446			2,890,852			2,902,906
Total continuing		11,859,122			12,451,371			12,454,118			12,318,955			12,149,110
Allowance for loan losses		(204,619	)		(167,230	)		(162,420	)		(147,845	)		(145,909	)
Total continuing, net		11,654,503			12,284,141			12,291,698			12,171,110			12,003,201
Liquidating Portfolio:
NCLC (c)		15,675			24,199			43,777			49,656			58,253
Consumer		276,219			293,964			307,503			318,173			332,752
Total liquidating portfolio		291,894			318,163			351,280			367,829			391,005
Allowance for loan losses		(44,367	)		(43,903	)		(27,838	)		(32,871	)		(42,127	)
Total liquidating, net		247,527			274,260			323,442			334,958			348,878
Total Loan Balances (average)		12,151,016			12,769,534			12,805,398			12,686,784			12,540,115
Allowance for loan losses		(248,986	)		(211,133	)		(190,258	)		(180,716	)		(188,036	)
Loans, net	$	11,902,030		$	12,558,401		$	12,615,140		$	12,506,068		$	12,352,079

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Nonperforming Assets (unaudited)

	March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008		March 31, 2008
	(Dollars in thousands)
Nonperforming loans:
Continuing Portfolio:
Residential mortgages	$	66,811	$	52,502	$	39,445	$	27,083	$	26,242
Commercial		65,073		32,915		33,842		36,808		25,140
Equipment financing		16,056		13,138		7,462		6,718		5,719
Asset based lending		29,353		17,072		17,239		18,980		5,124
Commercial real estate		12,604		8,032		8,971		9,710		7,809
Residential development		54,147		48,628		71,065		48,130		13,402
Consumer		40,170		29,939		23,668		20,745		17,084
Nonperforming loans—continuing portfolio		284,214		202,226		201,692		168,174		100,520
Liquidating Portfolio:
NCLC (c)		12,259		13,402		14,227		28,235		29,804
Consumer		19,695		16,938		10,994		10,651		9,378
Nonperforming loans—liquidating portfolio		31,954		30,340		25,221		38,886		39,182
Total nonperforming loans	$	316,168	$	232,566	$	226,913	$	207,060	$	139,702
Other real estate owned and repossessed assets:
Continuing Portfolio:
Residential mortgages	$	1,399	$	1,863	$	3,071	$	3,792	$	1,820
Commercial		10,361		9,782		1,026		1,113		1,113
Equipment financing		13,352		13,086		12,261		5,663		5,477
Asset based lending		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Residential development		—		—		—		—		—
Consumer		369		1,244		2,835		4,173		4,348
Total continuing		25,481		25,975		19,193		14,741		12,758
Liquidating Portfolio:
NCLC (c)		5,563		3,519		2,943		279		—
Consumer		1,139		1,129		626		2,020		1,524
Nonperforming loans—liquidating portfolio		6,702		4,648		3,569		2,299		1,524
Total other real estate owned and repossessed assets	$	32,183	$	30,623	$	22,762	$	17,040	$	14,282
Total nonperforming assets	$	348,351	$	263,189	$	249,675	$	224,100	$	153,984

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Past Due Loans (unaudited)

	March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008		March 31, 2008
	(Dollars in thousands)
Past due 30-89 days:
Continuing Portfolio:
Residential mortgages	$	45,798	$	45,909	$	40,209	$	27,534	$	28,972
Commercial		8,033		15,817		7,196		8,337		10,229
Equipment financing		16,404		9,860		8,102		9,414		10,269
Asset based lending		145		3,676		—		—		—
Commercial real estate		8,373		7,158		18,241		2,756		24,655
Residential development		1,004		2,096		5,832		2,485		5,999
Consumer		33,092		33,848		23,279		18,137		20,721
Past Due 30-89 days—continuing portfolio		112,849		118,364		102,859		68,663		100,845
Liquidating Portfolio:
NCLC(c)		1		4,487		3,046		2,487		1,645
Consumer		12,244		15,621		15,370		8,063		10,473
Past Due 30-89 days—liquidating portfolio		12,245		20,108		18,416		10,550		12,118
Accruing loans past due 90 days or more:
Residential mortgages		—		—		—		—		—
Commercial		573		459		534		1,380		596
Equipment financing		—		—		—		—		—
Asset based lending		—		—		—		—		—
Commercial real estate		—		450		174		—		—
Residential development		150		201		—		—		436
Consumer		—		—		—		—		—
Accruing loans past due 90 days or more:		723		1,110		708		1,380		1,032
Total past due loans	$	125,817	$	139,582	$	121,983	$	80,593	$	113,995

See Selected Financial Highlights for footnotes.

Five Quarter Changes in the Allowance for Credit Losses (unaudited)

	For the Three Months Ended
	March 31, 2009		Dec. 31, 2008		Sept. 30, 2008			June 30, 2008		March 31, 2008
	(Dollars in thousands)
Beginning balance	$	245,829	$	198,669	$	194,368		$	189,808	$	197,586
Provision		66,000		100,000		45,500			25,000		15,800
Charge-offs continuing portfolio:
Residential mortgages		2,964		3,778		1,623			1,036		1,480
Commercial		5,388		5,416		6,593			1,154		4,749
Equipment financing		2,236		1,222		998			672		490
Asset based lending		2,981		176		7,245			1,623		6,200
Commercial real estate		—		53		—			1,504		—
Residential development		48		30,158		161			3,711		—
Consumer		6,541		3,887		4,643			2,784		3,697
Charge-offs continuing portfolio		20,158		44,690		21,263			12,484		16,616
Charge-offs liquidating portfolio:
NCLC (c)		2,086		777		14,025			4,203		4,341
Consumer		9,911		8,779		6,767			5,450		3,448
Charge-offs liquidating portfolio		11,997		9,556		20,792			9,653		7,789
Total charge-offs		32,155		54,246		42,055			22,137		24,405
Recoveries continuing portfolio:
Residential mortgages		24		85		5			162		36
Commercial		378		225		89			269		241
Equipment financing		287		177		303			238		251
Asset based lending		5		129		61			375		44
Commercial real estate		—		—		—			—		—
Residential development		—		—		—			—		—
Consumer		766		180		256			246		255
Recoveries continuing portfolio		1,460		796		714			1,290		827
Recoveries liquidating portfolio:
NCLC (c)		528		595		151			406		—
Consumer		67		15		(9	)		1		—
											��
Recoveries liquidating portfolio		595		610		142			407		—
Total recoveries		2,055		1,406		856			1,697		827
Total net charge-offs		30,100		52,840		41,199			20,440		23,578
Ending balance	$	281,729	$	245,829	$	198,669		$	194,368	$	189,808
Components:
Allowance for loan losses	$	270,929	$	235,329	$	189,169		$	184,868	$	180,308
Reserve for unfunded credit commitments		10,800		10,500		9,500			9,500		9,500
Allowance for credit losses	$	281,729	$	245,829	$	198,669		$	194,368	$	189,808

See Selected Financial Highlights for footnotes.

Asset Quality Ratios

	For the Three Months Ended
	March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008		March 31, 2008
	(Dollars in thousands)
Total Portfolio
Allowance for loan losses / total loans	2.24	%	1.93	%	1.47	%	1.45	%	1.43	%
Allowance for credit losses / total loans	2.33		2.02		1.54		1.52		1.51
Net charge-offs / average loans (annualized)	0.99		1.66		1.29		0.64		0.75
Nonperforming loans / total loans	2.61		1.91		1.76		1.62		1.11
Nonperforming assets / total loans plus OREO	2.87		2.15		1.94		1.75		1.22
Allowance for credit losses / nonperforming loans	89.11		105.70		87.55		93.87		135.87
Continuing Portfolio
Allowance for loan losses / total loans	1.92	%	1.61	%	1.29	%	1.22	%	1.13
Allowance for credit losses / total loans	2.01		1.70		1.36		1.30		1.21
Net charge-offs / average loans (annualized)	0.63		1.41		0.66		0.36		0.51
Nonperforming loans / total loans	2.41		1.70		1.61		1.36		0.82
Nonperforming assets / total loans plus OREO	2.62		1.92		1.76		1.47		0.93
Allowance for credit losses / nonperforming loans	83.52		102.35		86.09		96.48		146.92
Liquidating Portfolio
NCLC(C)
Allowance for loan losses / total loans	30.86	%	30.01	%	22.85	%	19.65	%	23.64
Net charge-offs / average loans (annualized)	39.76		2.99		126.76		30.59		29.81
Nonperforming loans / total loans	93.05		71.53		55.99		61.24		54.79
Allowance for loan losses / nonperforming loans	33.16		41.96		40.80		32.09		43.15
Consumer
Allowance for loan losses / total loans	15.10	%	13.50	%	7.45	%	7.53	%	8.96
Net charge-offs / average loans (annualized)	14.26		11.93		8.81		6.75		4.2
Nonperforming loans / total loans	7.38		5.97		3.72		3.37		2.87
Allowance for loan losses / nonperforming loans	204.63		225.99		200.5		223.63		312.09

See Selected Financial Highlights for footnotes.