Exhibit 99.1

Media Contact	Investor Contact
Bob Guenther, 203-578-2391	Terry Mangan 203-578-2318
rguenther@websterbank.com	tmangan@websterbank.com

WEBSTER REPORTS 2013 FIRST QUARTER EARNINGS

Diluted Earnings per Share of $.44 for the Quarter - an Increase of 5 Percent over Prior Year

WATERBURY, Conn., April 15, 2013 - Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common shareholders of $39.2 million, or $0.44 per diluted share, for the quarter ended March 31, 2013 compared to $38.3 million, or $0.42 per diluted share, for the quarter ended March 31, 2012.

Highlights for the quarter or at March 31 include:

Combined growth in commercial and commercial real estate loans of $822.7 million, or 15.5 percent, from a year ago.

Deposit growth of $679.4 million, or 4.9 percent, from a year ago.

Positive operating leverage of 5.7 percent compared to a year ago as core revenue grew by 3.5 percent and core expenses declined by 2.2 percent; as a result, the efficiency ratio improved by 347 basis points from a year ago.

Continued improvement in asset quality as evidenced by a reduction of $169 million, or 33.5 percent, in commercial classified loans from a year ago while past due loans declined $19.9 million, or 33.2 percent from a year ago. Nonperforming assets increased $19.1 million, or 10.4 percent, from a year ago and otherwise would have decreased as a net of $44.0 million of residential and consumer loans were classified as nonaccrual under regulatory guidance that took effect in the fourth quarter of 2012.

Return on average assets and return on average tangible common equity were 0.84 percent and 11.28 percent, respectively, in the quarter compared to 0.82 percent and 12.04 percent, respectively, in the year ago quarter.

James C. Smith, chairman and chief executive officer, said, “Webster's first quarter results delivered a solid 16 percent increase in core pre-tax, pre-provision net earnings from a year ago. Core revenue grew and expenses dropped, creating positive operating leverage of 6 percent compared to a year ago. Loans grew by six percent from a year ago, led by another double-digit increase in the commercial portfolio as we continued to help lead the region's economic recovery.”

Net interest income

• Net interest income was $145.8 million in the first quarter of 2013 compared to $143.4 million a year ago.

• Net interest margin was 3.23 percent compared to 3.36 percent a year ago. The yield on interest-earning assets declined 30 basis points and the cost of funds declined 18 basis points from the year ago quarter.

• Average interest-earning assets totaled $18.5 billion in the quarter and grew by 5.9 percent from a year ago.

• Average loans grew by $749.3 million, or 6.6 percent, from the year ago quarter.

Provision for loan losses

• The Company recorded a provision for loan losses of $7.5 million in both the first quarter of 2013 and fourth quarter of 2012, and $4.0 million in the year ago period; the increased level of the provision reflects growth in the loan portfolio over prior year.

• Net charge-offs were $16.8 million in the quarter compared to $27.2 million a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.56 percent in the quarter compared to 0.96 percent a year ago.

• The allowance for loan losses represented 1.40 percent of total loans at March 31, 2013 compared to 1.47 percent at December 31, 2012 and 1.86 percent at March 31, 2012.

Noninterest income

• Total noninterest income in the first quarter of 2013 increased $4.3 million compared to a year ago; there were $0.1 million of securities gains in the quarter while the year ago quarter had no securities gains.

• Excluding securities gains, the $4.2 million increase in core noninterest income compared to a year ago reflects increases of $2.6 million in mortgage banking activities, $0.9 million from increase in cash surrender value of life insurance policies and $0.5 million from wealth and investment services. Other income was $0.2 million lower than in the year ago quarter reflecting a write-down of $1.5 million in the current quarter on a loan previously transferred to held for sale.

Webster President and Chief Operating Officer Jerry Plush noted, “During the first quarter, we announced outsourcing agreements with Jones Lang LaSalle for optimization of our facilities management and location decision-making and with Fidelity Information Services for management of our IT network and enhancement of our ability to deliver exceptional service to customers. These agreements create not only cost savings for future quarters but enhance our ability to optimize the size and locations of our banking centers and enable us to roll out new banking technologies quickly and seamlessly. We also launched our eForms initiative which will drive additional efficiency gains in future periods."

Noninterest expense

• Total noninterest expense of $125.5 million in the first quarter of 2013 decreased $2.3 million compared to the year ago period. Included in noninterest expense in the first quarter of 2013 are $1.6 million of net one-time costs that amounted to $.01 per diluted share on an after-tax basis. These costs consisted primarily of contract termination and severance expenses. There were $1.2 million of net one-time costs in the year ago quarter that also amounted to $.01 per diluted share.

• Total noninterest expense excluding one-time costs decreased $2.7 million from the first quarter of 2012. The decrease largely reflects a reduction of $2.6 million in compensation and benefits expense.

• Foreclosed and repossessed asset expenses were $0.2 million in the quarter compared to $0.5 million a year ago, while gains on foreclosed and repossessed assets were $0.3 million and $0.7 million in the respective periods.

Income taxes

• The Company recorded $18.9 million of income tax expense in the first quarter of 2013 on the $61.0 million of pre-tax income in the period. The effective tax rate was 31.0 percent compared to 29.9 percent a year ago, which reflected a net tax benefit of $0.5 million specific to that period.

Investment securities

• Total investment securities were $6.4 billion at March 31, 2013 and $6.2 billion a year ago. The carrying value of the available for sale portfolio included $64.5 million in net unrealized gains compared to net unrealized gains of $43.4 million a year ago, while the carrying value of the held to maturity portfolio does not reflect $130.9 million in net unrealized gains compared to net unrealized gains of $154.9 million a year ago.

Loans

• Total loans were $12.0 billion at both March 31, 2013 and December 31, 2012, and $11.3 billion at March 31, 2012. In the quarter, commercial and commercial real estate loans increased by $23.4 million and $7.9 million, respectively. Residential mortgage and consumer loans decreased by $4.7 million and $53.3 million, respectively.

• Compared to a year ago, commercial, commercial real estate and residential mortgage loans increased by $457.5 million, $365.2 million and $16.9 million, respectively. Consumer loans decreased by $149.6 million.

• Loan originations for portfolio in the first quarter were $690.5 million compared to $1.279 billion in the fourth quarter and $790.8 million a year ago. In addition, $229.0 million of residential loans were originated and sold with servicing retained in the quarter compared to $221.8 million in the fourth quarter and $131.4 million a year ago.

Asset quality

• Past due loans decreased to $40.0 million at March 31, 2013 compared to $74.3 million at December 31, 2012 and $60.0 million at March 31, 2012. Compared to December 31, 2012, past due commercial real estate, residential mortgage and consumer loans decreased by $13.4 million, $8.6 million and $10.3 million, respectively. Compared to March 31, 2012, all loan categories contributed to the decline except commercial real estate, which totaled $1.3 million compared to $1.1 million a year ago.

• Past due loans represented 0.33 percent of total loans at March 31, 0.62 percent at December 31 and 0.53 percent a year ago. Past due loans for the continuing portfolios were $37.2 million at March 31 compared to $70.7 million at December 31 and $54.7 million a year ago. Past due loans for the liquidating portfolio were $2.8 million at March 31 compared to $3.6 million at December 31 and $5.3 million a year ago.

• Total nonperforming loans increased to $198.8 million, or 1.66 percent of total loans, at March 31, 2013 compared to $194.8 million, or 1.62 percent, at December 31, 2012 and $178.3 million, or 1.58 percent, at March 31, 2012. Included in nonperforming loans at March 31 and December 31 are $44.0 million and $39.5 million, respectively, of residential and consumer loans classified as nonaccrual under regulatory guidance that took effect in the fourth quarter of 2012. Total paying nonperforming loans at March 31 were $55.3 million compared to $46.5 million at December 31 and $18.1 million a year ago, with the increase consisting primarily of the loans classified as such due to the regulatory guidance.

Deposits and borrowings

• Total deposits were $14.6 billion at March 31, 2013 compared to $14.5 billion at December 31, 2012 and $13.9 billion at March 31, 2012. Compared to December 31, increases of $206.8 million in interest-bearing checking and $65.7 million in savings deposits were offset by declines of $31.8 million in demand deposits, $39.3 in money market deposits and $108.3 million in certificates of deposit. Compared to a year ago, increases of $357.9 million in demand, $479.6 in interest-bearing checking, $120.7 million in money market and $50.2 million in savings deposits were offset by a decline of $329.0 million in certificates of deposit.

• Core to total deposits and loans to deposits were 83.3 percent and 82.1 percent, respectively, compared to 82.5 percent and 82.8 percent at December 31, and 80.2 percent and 81.1 percent a year ago.

• Total borrowings were $3.2 billion at both March 31 and December 31, and $3.1 billion a year ago.

Capital

• As previously disclosed, the holder of 8.625 million warrants on Webster's common stock exercised the warrants on a net exercise basis on March 22, 2013. Webster issued 4.565 million shares, net, of common stock. The issuance of the 4.565 million shares is reflected in the 90.237 million common shares issued and outstanding at March 31, 2013.

• The tangible equity and tangible common equity ratios were 8.12 percent and 7.35 percent, respectively, at March 31, 2013 compared to 7.27 percent and 7.11 percent, respectively, a year ago. The tier 1 common equity to risk-weighted assets ratio was 11.02 percent at March 31 compared to 10.96 percent a year ago.

• Book value and tangible book value per common share were $21.90 and $15.93, respectively, at March 31 compared to $21.24 and $15.05, respectively a year ago. The comparisons for each figure to a year ago reflect the 4.565 million shares issued during the first quarter of 2013 in connection with the exercise of the 8.625 million warrants on Webster's common stock.

• Return on average tangible common shareholders' equity and return on average common shareholders' equity were 11.28 percent and 8.01 percent, respectively, in the first quarter compared to 12.04 percent and 8.30 percent, respectively, a year ago.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $20 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 168 banking centers, 294 ATMs, telephone banking, mobile banking, and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides health savings account trustee and administrative services. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

***

Conference Call

A conference call covering Webster's 2013 first quarter earnings announcement will be held today, Monday, April 15, 2013 at 9:00 a.m. (Eastern) 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

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives, and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Webster's current expectations and

assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1)local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; (2) volatility and disruption in national and international financial markets; (3) government intervention in the U.S. financial system; (4) changes in the level of non-performing assets and charge-offs; (5) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (6) adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (7) inflation, interest rate, securities market, and monetary fluctuations; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by customers; (9) changes in consumer spending, borrowings, and savings habits; (10) technological changes; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, financial holding companies, and other financial service providers; (13) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply, including those under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III update to the Basel Accords that is under development; (14) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; (15) the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; and (16) our success at managing the risks involved in the foregoing items and (17)the other factors that are described in the Company's Annual Report on Form 10-Kand Quarterly Reports on Form 10-Q under the heading “Risk Factors.”Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

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
(In thousands, except per share data)	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Income and performance ratios (annualized):
Net income attributable to Webster Financial Corp.	$	42,117		$	48,526		$	44,993		$	41,240		$	38,938
Net income available to common shareholders	39,231			47,911			44,378			40,625			38,323
Net income per diluted common share	0.44			0.52			0.48			0.44			0.42
Return on average assets	0.84		%	0.98		%	0.92		%	0.86		%	0.82		%
Return on average tangible common shareholders' equity	11.28			13.66			13.03			12.38			12.04
Return on average common shareholders’ equity	8.01			9.74			9.19			8.62			8.30
Noninterest income as a percentage of total revenue	24.88			26.57			25.07			24.70			23.48
Efficiency ratio	62.16			59.68			62.25			63.75			65.63
Asset quality:
Allowance for loan losses	$	167,840		$	177,129		$	186,089		$	198,757		$	210,288
Nonperforming assets	203,355			198,181			167,524			173,621			184,218
Allowance for loan losses / total loans	1.40		%	1.47		%	1.59		%	1.72		%	1.86		%
Net charge-offs / average loans (annualized)	0.56			0.56			0.61			0.58			0.96
Nonperforming loans / total loans	1.66			1.62			1.39			1.47			1.58
Nonperforming assets / total loans plus OREO	1.69			1.65			1.43			1.50			1.63
Allowance for loan losses / nonperforming loans	84.42			90.93			114.44			117.44			117.96
Other ratios (annualized):
Tangible equity ratio	8.12		%	7.92		%	7.52		%	7.35		%	7.27		%
Tangible common equity ratio	7.35			7.15			7.37			7.20			7.11
Tier 1 risk-based capital ratio (a)	12.72			12.47			11.90			12.82			12.86
Total risk-based capital (a)	13.98			13.73			13.16			14.08			14.12
Tier 1 common equity / risk-weighted assets (a)	11.02			10.78			11.10			10.97			10.96
Shareholders’ equity / total assets	10.58			10.39			10.05			9.94			9.90
Net interest margin	3.23			3.27			3.28			3.32			3.36
Share and equity related:
Common equity	$	1,976,482		$	1,941,881		$	1,954,739		$	1,902,609		$	1,866,003
Book value per common share	21.90			22.75			22.24			21.65			21.24
Tangible book value per common share	15.93			16.42			16.08			15.47			15.05
Common stock closing price	24.26			20.55			23.70			21.66			22.67
Dividends declared per common share	0.10			0.10			0.10			0.10			0.05
Common shares issued and outstanding	90,237			85,341			87,899			87,885			87,849
Basic shares (weighted average)	85,501			86,949			87,394			87,291			87,216
Diluted shares (weighted average)	89,662			91,315			91,884			91,543			91,782

(a) The ratios presented are projected for March 31, 2013 and actual for the remaining periods presented.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	March 31, 2013			December 31, 2012			March 31, 2012
Assets:
Cash and due from banks	$	118,657		$	252,283		$	173,027
Interest-bearing deposits	51,352			98,205			77,921
Investment securities:
Available for sale, at fair value	3,318,238			3,136,160			3,144,867
Held to maturity	3,111,169			3,107,529			3,079,654
Total securities	6,429,407			6,243,689			6,224,521
Loans held for sale	96,706			107,633			59,615
Loans:
Commercial	3,346,483			3,323,044			2,888,977
Commercial real estate	2,790,954			2,783,061			2,425,797
Residential mortgages	3,287,072			3,291,724			3,270,213
Consumer	2,577,523			2,630,867			2,727,163
Total loans	12,002,032			12,028,696			11,312,150
Allowance for loan losses	(167,840		)	(177,129		)	(210,288		)
Loans, net	11,834,192			11,851,567			11,101,862
Prepaid FDIC premiums	16,644			16,323			32,507
Federal Home Loan Bank and Federal Reserve Bank stock	158,878			155,630			142,595
Premises and equipment, net	127,609			134,562			141,088
Goodwill and other intangible assets, net	538,915			540,157			544,180
Cash surrender value of life insurance policies	420,562			418,293			309,556
Deferred tax asset, net	55,656			68,681			81,676
Accrued interest receivable and other assets	261,960			259,742			245,594
Total Assets	$	20,110,538		$	20,146,765		$	19,134,142
Liabilities and Equity:
Deposits:
Demand	$	2,849,355		$	2,881,131		$	2,491,442
Interest-bearing checking	3,286,540			3,079,767			2,806,950
Money market	2,165,744			2,205,072			2,045,090
Savings	3,885,394			3,819,713			3,835,180
Certificates of deposit	2,292,441			2,418,853			2,646,783
Brokered certificates of deposit	144,408			126,299			119,052
Total deposits	14,623,882			14,530,835			13,944,497
Securities sold under agreements to repurchase and other short-term borrowings	1,033,767			1,076,160			1,268,589
Federal Home Loan Bank advances	1,902,563			1,827,612			1,352,466
Long-term debt	230,709			334,276			474,318
Accrued expenses and other liabilities	191,486			284,352			199,330
Total liabilities	17,982,407			18,053,235			17,239,200
Preferred stock	151,649			151,649			28,939
Common shareholders' equity	1,976,482			1,941,881			1,866,003
Webster Financial Corporation shareholders’ equity	2,128,131			2,093,530			1,894,942
Total Liabilities and Equity	$	20,110,538		$	20,146,765		$	19,134,142

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
(In thousands, except per share data)	Three Months Ended March 31,
	2013			2012
Interest income:
Interest and fees on loans and leases	$	121,061		$	120,741
Interest and dividends on securities	48,385			52,868
Loans held for sale	637			498
Total interest income	170,083			174,107
Interest expense:
Deposits	12,850			16,056
Borrowings	11,437			14,683
Total interest expense	24,287			30,739
Net interest income	145,796			143,368
Provision for loan losses	7,500			4,000
Net interest income after provision for loan losses	138,296			139,368
Noninterest income:
Deposit service fees	23,994			23,363
Loan related fees	4,585			4,869
Wealth and investment services	7,766			7,221
Mortgage banking activities	7,031			4,383
Increase in cash surrender value of life insurance policies	3,384			2,517
Net gain on investment securities	106			—
Other income	1,412			1,633
Total noninterest income	48,278			43,986
Noninterest expense:
Compensation and benefits	66,050			68,619
Occupancy	12,879			12,882
Technology and equipment expense	15,353			15,582
Marketing	4,811			4,100
Professional and outside services	2,150			2,692
Intangible assets amortization	1,242			1,397
Foreclosed and repossessed asset expenses	175			467
Foreclosed and repossessed asset gains	(284		)	(664		)
Loan workout expenses	1,974			1,824
Deposit insurance	5,174			5,709
Other expenses	14,375			13,990
	123,899			126,598
Debt prepayment penalties	43			1,134
Severance, contract, and other	1,593			81
Total noninterest expense	125,535			127,813
Income before income taxes	61,039			55,541
Income tax expense	18,922			16,603
Net income attributable to Webster Financial Corp.	42,117			38,938
Preferred stock dividends	(2,886		)	(615		)
Net income available to common shareholders	$	39,231		$	38,323
Diluted shares (average)	89,662			91,782
Net income per common share available to common shareholders:
Basic	$	0.46		$	0.44
Diluted	0.44			0.42

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Interest income:
Interest and fees on loans and leases	$	121,061		$	122,179		$	121,367		$	121,379		$	120,741
Interest and dividends on securities	48,385			49,752			50,194			52,597			52,868
Loans held for sale	637			615			655			657			498
Total interest income	170,083			172,546			172,216			174,633			174,107
Interest expense:
Deposits	12,850			13,885			14,543			15,102			16,056
Borrowings	11,437			12,389			12,783			15,153			14,683
Total interest expense	24,287			26,274			27,326			30,255			30,739
Net interest income	145,796			146,272			144,890			144,378			143,368
Provision for loan losses	7,500			7,500			5,000			5,000			4,000
Net interest income after provision for loan losses	138,296			138,772			139,890			139,378			139,368
Noninterest income:
Deposit service fees	23,994			24,823			24,728			23,719			23,363
Loan related fees	4,585			5,570			4,039			3,565			4,869
Wealth and investment services	7,766			7,859			7,186			7,249			7,221
Mortgage banking activities	7,031			8,515			6,515			3,624			4,383
Increase in cash surrender value of life insurance policies	3,384			3,496			2,680			2,561			2,517
Net gain on investment securities	106			—			810			2,537			—
Other income	1,412			2,677			2,521			4,098			1,633
Total noninterest income	48,278			52,940			48,479			47,353			43,986
Noninterest expense:
Compensation and benefits	66,050			65,769			66,126			63,587			68,619
Occupancy	12,879			12,209			12,462			12,578			12,882
Technology and equipment expense	15,353			15,489			15,118			16,021			15,582
Marketing	4,811			3,104			4,529			5,094			4,100
Professional and outside services	2,150			2,479			2,790			3,387			2,692
Intangible assets amortization	1,242			1,242			1,384			1,397			1,397
Foreclosed and repossessed asset expenses	175			267			118			176			467
Foreclosed and repossessed asset gains	(284		)	(383		)	(409		)	(670		)	(664		)
Loan workout expenses	1,974			2,338			1,693			2,201			1,824
Deposit insurance	5,174			5,642			5,675			5,723			5,709
Other expenses	14,375			13,934			13,805			14,443			13,990
	123,899			122,090			123,291			123,937			126,598
Debt prepayment penalties	43			—			391			2,515			1,134
Severance, contract, and other	1,593			835			205			727			81
Total noninterest expense	125,535			122,925			123,887			127,179			127,813
Income before income taxes	61,039			68,787			64,482			59,552			55,541
Income tax expense	18,922			20,261			19,489			18,312			16,603
Net income attributable to Webster Financial Corp.	42,117			48,526			44,993			41,240			38,938
Preferred stock dividends	(2,886		)	(615		)	(615		)	(615		)	(615		)
Net income available to common shareholders	$	39,231		$	47,911		$	44,378		$	40,625		$	38,323
Diluted shares (average)	89,662			91,315			91,884			91,543			91,782
Net income per common share available to common shareholders:
Basic	$	0.46		$	0.55		$	0.51		$	0.46		$	0.44
Diluted	0.44			0.52			0.48			0.44			0.42

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Yields, and Rates Paid (unaudited)
Three Months Ended March 31,			2013							2012
(Dollars in thousands)	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance		Interest			Fully tax- equivalent yield/rate
Assets:
Interest-earning assets:
Loans	$	12,024,588	$	121,061		4.04	%	$	11,275,333	$	120,741		4.27	%
Investment securities (a)	6,194,885		51,015			3.33		5,961,336		55,680			3.76
Loans held for sale	89,334		637			2.85		51,705		498			3.85
Federal Home Loan and Federal Reserve Bank stock	156,261		847			2.20		143,551		876			2.45
Interest-bearing deposits	82,215		46			0.22		77,435		30			0.15
Total interest-earning assets	18,547,283		173,606			3.76		17,509,360		177,825			4.06
Noninterest-earning assets	1,504,196							1,394,077
Total assets	$	20,051,479						$	18,903,437
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Demand	$	2,836,051	$	—		—	%	$	2,435,197	$	—		—	%
Savings, interest checking, and money market	9,318,300		4,622			0.20		8,628,048		5,794			0.27
Certificates of deposit	2,500,450		8,228			1.33		2,810,203		10,262			1.47
Total deposits	14,654,801		12,850			0.36		13,873,448		16,056			0.47
Securities sold under agreements to repurchase and other short-term borrowings	1,091,437		5,055			1.85		1,166,550		4,434			1.50
Federal Home Loan Bank advances	1,747,858		4,539			1.04		1,260,217		4,564			1.43
Long-term debt	247,077		1,843			2.98		507,116		5,685			4.48
Total borrowings	3,086,372		11,437			1.48		2,933,883		14,683			1.99
Total interest-bearing liabilities	17,741,173		24,287			0.55		16,807,331		30,739			0.73
Noninterest-bearing liabilities	199,369							219,332
Total liabilities	17,940,542							17,026,663
Preferred stock	151,649							28,939
Common shareholders' equity	1,959,288							1,847,835
Webster Financial Corp. shareholders' equity	2,110,937							1,876,774
Total liabilities and equity	$	20,051,479						$	18,903,437
Tax-equivalent net interest income			149,319							147,086
Less: tax-equivalent adjustment			(3,523		)					(3,718		)
Net interest income			$	145,796						$	143,368
Net interest margin						3.23	%						3.36	%

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

WEBSTER FINANCIAL CORPORATION Five Quarter Loan Balances(unaudited)
(Dollars in thousands)	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Loan Balances (actuals):
Continuing Portfolio:
Commercial non-mortgage	$	2,397,774		$	2,399,500		$	2,201,732		$	2,069,127		$	1,972,205
Equipment financing	404,597			419,311			401,748			417,654			446,585
Asset based lending	544,112			504,233			535,327			499,212			470,187
Commercial real estate	2,763,262			2,755,320			2,597,835			2,518,392			2,389,206
Residential development	27,692			27,741			30,058			33,035			36,591
Residential mortgages	3,287,071			3,291,723			3,292,947			3,300,616			3,270,212
Consumer	2,461,595			2,508,992			2,537,039			2,565,654			2,585,685
Total continuing	11,886,103			11,906,820			11,596,686			11,403,690			11,170,671
Allowance for loan losses	(146,020		)	(152,495		)	(156,214		)	(168,882		)	(180,413		)
Total continuing, net	11,740,083			11,754,325			11,440,472			11,234,808			10,990,258
Liquidating Portfolio:
National Construction Lending Center (NCLC)	1			1			1			1			1
Consumer	115,928			121,875			130,965			136,306			141,478
Total liquidating portfolio	115,929			121,876			130,966			136,307			141,479
Allowance for loan losses	(21,820		)	(24,634		)	(29,875		)	(29,875		)	(29,875		)
Total liquidating, net	94,109			97,242			101,091			106,432			111,604
Total Loan Balances (actuals)	12,002,032			12,028,696			11,727,652			11,539,997			11,312,150
Allowance for loan losses	(167,840		)	(177,129		)	(186,089		)	(198,757		)	(210,288		)
Loans, net	$	11,834,192		$	11,851,567		$	11,541,563		$	11,341,240		$	11,101,862
Loan Balances (average):
Continuing Portfolio:
Commercial non-mortgage	$	2,422,372		$	2,238,557		$	2,137,882		$	2,008,778		$	1,970,656
Equipment financing	407,849			405,702			404,180			430,882			458,111
Asset based lending	528,797			516,749			520,100			480,574			474,264
Commercial real estate	2,744,101			2,653,749			2,528,394			2,453,430			2,336,576
Residential development	27,507			29,322			31,484			35,422			38,401
Residential mortgages	3,286,946			3,294,254			3,300,067			3,296,306			3,253,199
Consumer	2,488,154			2,526,656			2,552,660			2,576,521			2,598,758
Total continuing	11,905,726			11,664,989			11,474,767			11,281,913			11,129,965
Allowance for loan losses	(153,710		)	(161,239		)	(167,469		)	(179,139		)	(201,592		)
Total continuing, net	11,752,016			11,503,750			11,307,298			11,102,774			10,928,373
Liquidating Portfolio:
NCLC	1			1			1			1			1
Consumer	118,861			127,701			133,566			138,807			145,367
Total liquidating portfolio	118,862			127,702			133,567			138,808			145,368
Allowance for loan losses	(21,820		)	(24,634		)	(29,875		)	(29,875		)	(29,875		)
Total liquidating, net	97,042			103,068			103,692			108,933			115,493
Total Loan Balances (average)	12,024,588			11,792,691			11,608,334			11,420,721			11,275,333
Allowance for loan losses	(175,530		)	(185,873		)	(197,344		)	(209,014		)	(231,467		)
Loans, net	$	11,849,058		$	11,606,818		$	11,410,990		$	11,211,707		$	11,043,866

WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets(unaudited)
(Dollars in thousands)	March 31, 2013		December 31, 2012 (a)		September 30, 2012		June 30, 2012		March 31, 2012
Nonperforming loans:
Continuing Portfolio:
Commercial non-mortgage	$	16,328	$	17,538	$	30,315	$	29,271	$	31,547
Equipment financing	2,801		3,325		3,052		5,862		4,868
Asset based lending	—		—		92		262		1,475
Commercial real estate	24,484		15,683		15,768		23,457		25,131
Residential development	4,793		5,043		5,431		5,982		6,140
Residential mortgages	94,711		95,540		79,736		77,336		79,110
Consumer	48,370		49,537		23,602		22,616		26,098
Nonperforming loans - continuing portfolio	191,487		186,666		157,996		164,786		174,369
Liquidating Portfolio:
Consumer	7,323		8,133		4,616		4,460		3,896
Nonperforming loans - liquidating portfolio	7,323		8,133		4,616		4,460		3,896
Total nonperforming loans	$	198,810	$	194,799	$	162,612	$	169,246	$	178,265
Other real estate owned and repossessed assets:
Continuing Portfolio:
Commercial	$	404	$	541	$	917	$	917	$	2,051
Repossessed equipment	995		182		1,840		721		674
Residential	2,629		2,369		1,705		2,271		2,648
Consumer	517		290		450		466		580
Total continuing	4,545		3,382		4,912		4,375		5,953
Liquidating Portfolio:
Total liquidating	—		—		—		—		—
Total other real estate owned and repossessed assets	$	4,545	$	3,382	$	4,912	$	4,375	$	5,953
Total nonperforming assets	$	203,355	$	198,181	$	167,524	$	173,621	$	184,218

(a) The increases in the residential and consumer categories during 4Q12 are related to an OCC requirement to reflect Chapter 7 bankruptcies as nonaccruing loans.

WEBSTER FINANCIAL CORPORATION Five Quarter Past Due Loans(unaudited)
(Dollars in thousands)	March 31, 2013		December 31, 2012		September 30, 2012		June 30, 2012		March 31, 2012
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Commercial non-mortgage	$	3,788	$	2,769	$	4,424	$	6,479	$	6,938
Equipment financing	1,000		1,926		3,524		1,665		4,099
Asset based lending	—		—		—		—		—
Commercial real estate	1,328		14,710		7,136		3,152		1,101
Residential development	—		—		317		—		—
Residential mortgages	16,571		25,182		22,230		26,966		22,915
Consumer	14,538		24,860		24,664		22,163		19,592
Past Due 30-89 days - continuing portfolio	37,225		69,447		62,295		60,425		54,645
Liquidating Portfolio:
Consumer	2,794		3,588		4,909		4,377		5,263
Past Due 30-89 days - liquidating portfolio	2,794		3,588		4,909		4,377		5,263
Accruing loans past due 90 days or more	—		1,237		205		1,074		43
Total past due loans	$	40,019	$	74,272	$	67,409	$	65,876	$	59,951

WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Loan Losses(unaudited)
	For the Three Months Ended
(Dollars in thousands)	March 31, 2013		December 31, 2012 (a)		September 30, 2012		June 30, 2012		March 31, 2012
Beginning balance	$	177,129	$	186,089	$	198,757	$	210,288	$	233,487
Provision	7,500		7,500		5,000		5,000		4,000
Charge-offs continuing portfolio:
Commercial non-mortgage	4,340		6,411		8,642		5,164		14,994
Equipment financing	87		682		187		165		634
Asset based lending	—		69		—		512		—
Commercial real estate	3,617		170		2,655		1,066		5,848
Residential development	143		156		—		—		—
Residential mortgages	2,936		2,597		3,234		3,948		3,115
Consumer	7,357		8,149		6,752		8,122		6,487
Charge-offs continuing portfolio	18,480		18,234		21,470		18,977		31,078
Charge-offs liquidating portfolio:
NCLC	—		—		28		4		—
Consumer	3,049		5,137		2,482		3,227		3,564
Charge-offs liquidating portfolio	3,049		5,137		2,510		3,231		3,564
Total charge-offs	21,529		23,371		23,980		22,208		34,642
Recoveries continuing portfolio:
Commercial non-mortgage	901		1,045		779		957		886
Equipment financing	828		2,899		3,111		1,115		2,348
Asset based lending	698		996		518		721		914
Commercial real estate	91		43		121		34		1,069
Residential development	150		721		181		12		31
Residential mortgages	205		99		318		126		118
Consumer	1,437		674		933		2,453		1,932
Recoveries continuing portfolio	4,310		6,477		5,961		5,418		7,298
Recoveries liquidating portfolio:
NCLC	45		74		35		10		23
Consumer	385		360		316		249		122
Recoveries liquidating portfolio	430		434		351		259		145
Total recoveries	4,740		6,911		6,312		5,677		7,443
Total net charge-offs	16,789		16,460		17,668		16,531		27,199
Ending balance	$	167,840	$	177,129	$	186,089	$	198,757	$	210,288

(a) Note: $5.3 million of net charge-offs in 4Q12 relate to an OCC requirement to reduce Chapter 7 bankruptcies to collateral value.

WEBSTER FINANCIAL CORPORATION

Reconciliations to GAAP Financial Measures

The Company evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Return on average tangible common shareholders' equity measures the Company’s net income available to common shareholders, adjusted for the tax-affected amortization of intangible assets, as a percentage of average common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights). The tangible equity ratio represents total ending shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights). The tangible common equity ratio represents ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights). Tangible book value per common share represents ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding.

The efficiency ratio, which measures the costs expended to generate a dollar of revenue, is calculated excluding foreclosed property expense, amortization of intangibles, gain or loss on securities, and other non-recurring items. Accordingly, this is also a non-GAAP financial measure.

See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Company. Other companies may define or calculate supplemental financial data differently.

	At or for the Three Months Ended
(Dollars in thousands)	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Reconciliation of net income available to common shareholders to net income used for computing the return on average tangible common shareholders' equity ratio
Net income available to common shareholders	$	39,231		$	47,911		$	44,378		$	40,625		$	38,323
Amortization of intangibles (tax-affected @ 35%)	807			807			900			908			908
Quarterly net income adjusted for amortization of intangibles	40,038			48,718			45,278			41,533			39,231
Annualized net income used in the return on average tangible common shareholders' equity ratio	$	160,152		$	194,872		$	181,112		$	166,132		$	156,924
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
Average common shareholders' equity	$	1,959,288		$	1,967,312		$	1,931,544		$	1,885,386		$	1,847,835
Average goodwill	(529,887		)	(529,887		)	(529,887		)	(529,887		)	(529,887		)
Average intangible assets (excluding mortgage servicing rights)	(9,635		)	(10,873		)	(12,188		)	(13,576		)	(14,973		)
Average tangible common shareholders’ equity	$	1,419,766		$	1,426,552		$	1,389,469		$	1,341,923		$	1,302,975
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity
Shareholders' equity	$	2,128,131		$	2,093,530		$	1,983,678		$	1,931,548		$	1,894,942
Goodwill	(529,887		)	(529,887		)	(529,887		)	(529,887		)	(529,887		)
Intangible assets (excluding mortgage servicing rights)	(9,028		)	(10,270		)	(11,512		)	(12,896		)	(14,293		)
Tangible shareholders’ equity	$	1,589,216		$	1,553,373		$	1,442,279		$	1,388,765		$	1,350,762
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity
Shareholders' equity	$	2,128,131		$	2,093,530		$	1,983,678		$	1,931,548		$	1,894,942
Preferred stock	(151,649		)	(151,649		)	(28,939		)	(28,939		)	(28,939		)
Common shareholders' equity	1,976,482			1,941,881			1,954,739			1,902,609			1,866,003
Goodwill	(529,887		)	(529,887		)	(529,887		)	(529,887		)	(529,887		)
Intangible assets (excluding mortgage servicing rights)	(9,028		)	(10,270		)	(11,512		)	(12,896		)	(14,293		)
Tangible common shareholders’ equity	$	1,437,567		$	1,401,724		$	1,413,340		$	1,359,826		$	1,321,823
Reconciliation of period-end assets to period-end tangible assets
Assets	$	20,110,538		$	20,146,765		$	19,729,662		$	19,429,749		$	19,134,142
Goodwill	(529,887		)	(529,887		)	(529,887		)	(529,887		)	(529,887		)
Intangible assets (excluding mortgage servicing rights)	(9,028		)	(10,270		)	(11,512		)	(12,896		)	(14,293		)
Tangible assets	$	19,571,623		$	19,606,608		$	19,188,263		$	18,886,966		$	18,589,962
Book value per common share
Common shareholders’ equity	$	1,976,482		$	1,941,881		$	1,954,739		$	1,902,609		$	1,866,003
Ending common shares issued and outstanding (in thousands)	90,237			85,341			87,899			87,885			87,849
Book value per share of common stock	$	21.90		$	22.75		$	22.24		$	21.65		$	21.24
Tangible book value per common share
Tangible common shareholders’ equity	$	1,437,567		$	1,401,724		$	1,413,340		$	1,359,826		$	1,321,823
Ending common shares issued and outstanding (in thousands)	90,237			85,341			87,899			87,885			87,849
Tangible book value per common share	$	15.93		$	16.42		$	16.08		$	15.47		$	15.05
Reconciliation of noninterest expense to noninterest expense used in the efficiency ratio
Noninterest expense	$	125,535		$	122,925		$	123,887		$	127,179		$	127,813
Foreclosed property expense	(175		)	(267		)	(118		)	(176		)	(467		)
Intangible assets amortization	(1,242		)	(1,242		)	(1,384		)	(1,397		)	(1,397		)
Other expense	(1,352		)	(452		)	(187		)	(2,572		)	(551		)
Noninterest expense used in the efficiency ratio	$	122,766		$	120,964		$	122,198		$	123,034		$	125,398
Reconciliation of income to income used in the efficiency ratio
Net interest income before provision for loan losses	$	145,796		$	146,272		$	144,890		$	144,378		$	143,368
Fully taxable-equivalent adjustment	3,523			3,480			3,740			3,813			3,718
Noninterest income	48,278			52,940			48,479			47,353			43,986
Less: Net gain on investment securities	(106		)	—			(810		)	(2,537		)	—
Income used in the efficiency ratio	$	197,491		$	202,692		$	196,299		$	193,007		$	191,072