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 2007 THIRD QUARTER EARNINGS

Third Quarter Highlights:

• Diluted earnings per share of $.64 (includes the effect of an $11.0 million or $.14 per share increase in the provision for credit losses compared with the second quarter of 2007 that is specifically related to the Company’s consumer home equity portfolio).

• Achieved positive operating leverage of 0.8 percent in the quarter.

• Repurchased over 1.1 million shares of common stock during the quarter while maintaining capital ratios within target ranges.

• Opened new branches in September 2007 in New Rochelle, New York and Longmeadow, Massachusetts; 27 branches now opened since 2002.

WATERBURY, Conn., October 23, 2007 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income of $35.0 million or $.64 per diluted share for the third quarter of 2007, compared to $35.5 million or $.63 per share for the second quarter of 2007 and $9.0 million or $.17 per share for the third quarter of 2006. Results in the third quarter of 2007 reflect an increase in the provision for credit losses of $11.0 million compared to the second quarter of 2007 ($7.6 million net of tax or $.14 per diluted share) in connection with the Company’s home equity portfolio. For the first nine months of 2007, net income totaled $105.5 million, or $1.89 per diluted share, compared to $96.0 million, or $1.80 per diluted share a year ago.

“In an otherwise solid quarter, we have increased our provision for credit losses based on higher delinquency and non-accrual loans in our home equity portfolio, specifically for nationally originated loans with high combined loan to value,” stated Webster Chairman and Chief Executive Officer James C. Smith. “Delinquency for the month of September rose substantially, and we believe taking this step is prudent given this emerging trend.”

Commercial loans (consisting of commercial and industrial and commercial real estate) and consumer loans posted solid growth year over year to $8.7 billion at September 30, 2007, up 7 percent from September 30, 2006. Commercial and consumer loans represent 70 percent of total loans at September 30, 2007 compared to 63 percent a year ago. “We are intensely focused on our direct, core franchise business and our progress is evident” stated Webster President and Chief Operating Officer William T. Bromage.

Revenues

Total revenue, which consists of net interest income plus total noninterest income, totaled $187.3 million in the third quarter. This compares to total revenue of $192.2 million in the second quarter apart from a $2.1 million gain on Webster Capital Trust I and II securities held by Webster and $178.2 million a year ago apart from a $48.9 million charge in connection with an available for sale securities portfolio repositioning. Deducting securities gains from each period results in adjusted total revenue of $186.8 million in the third quarter, $191.7 million in the second quarter and $175.9 million a year ago, or growth of 6.2 percent for the third quarter of 2007 compared to the third quarter of 2006.

Net interest income totaled $127.1 million in the third quarter compared to $130.4 million in the second quarter and $122.4 million a year ago. Average interest-earning assets have been lower in 2007 compared to a year ago as a result of Webster’s balance sheet repositioning actions, with the third quarter of 2007 being 7 percent lower than the third quarter of 2006. However, Webster’s net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) has improved compared to year-ago levels. The net interest margin was 3.38 percent in the third quarter of 2007 compared to 3.01 percent in the third quarter of 2006, with the 37 basis point increase in the net interest margin contributing to 4 percent growth in net interest income compared to a year ago. The net interest margin of 3.38 percent in the third quarter declined by 9 basis points from the second quarter, mainly due to the effect of increased share repurchase activity and the impact of the issuance of $200 million in trust preferred securities in June 2007. The spread between the yield on loans and the cost of deposits was 3.84 percent in the third quarter compared to 3.93 percent in the second quarter and 3.89 percent a year ago.

Total noninterest income was $60.2 million in the third quarter. This compares to $64.0 million in the second quarter, which included a $2.1 million gain on Webster Capital Trust I and II securities held by Webster, and $6.8 million a year ago, which was reduced by the $48.9 million securities portfolio repositioning charge. Deposit service fees totaled $30.0 million compared to $28.8 million in the second quarter and $25.3 million a year ago, the growth partly reflecting the growth in core deposits and the recent implementation of a new consumer fee structure. Insurance revenue was $8.9 million compared to $9.1 million in the second quarter and $9.8 million a year ago. Loan-related fees were $7.7 million compared to

$7.9 million in the second quarter and $7.8 million a year ago. Wealth and investment services revenues totaled $7.1 million compared to $7.6 million in the second quarter and $6.7 million a year ago. Income from mortgage banking activities was $1.8 million in the third quarter compared to income of $4.0 million in the second quarter, inclusive of a $948,000 write-down on $96.3 million of loans previously held for sale that were transferred into portfolio, and a loss of $0.2 million a year ago. Other non-interest income was $1.6 million compared to $1.4 million in the second quarter and $1.7 million a year ago.

Provision For Credit Losses

The provision for credit losses was $15.25 million compared to $4.25 million in the second quarter and $3.0 million a year ago. $11.0 million of the provision for credit losses recorded in the third quarter was specifically for the Company’s $3.2 billion home equity loan and lines of credit portfolio. The increase in provision compared with second quarter 2007 is based on the Company’s analysis of third quarter data developed post quarter end. This takes into account the higher level of estimated losses inherent in this portfolio at September 30, 2007 and reflects recent adverse trends in property values and delinquencies, including higher September delinquencies on the home equity loans secured by properties outside the Company’s retail banking footprint.

Net loan charge-offs totaled $4.0 million during the third quarter of 2007 compared to $4.2 million in the second quarter and $3.1 million a year ago. Included in net charge-offs in the third and second quarters of 2007 were $0.5 million and $0.6 million, respectively, of consumer overdraft losses. Prior to the second quarter, overdraft losses were shown as a reduction of deposit fee income. The allowance for credit losses, which consists of the allowance for loan losses and the reserve for unfunded credit commitments, was $164.0 million, or 1.32 percent of total loans at September 30, 2007 compared to $152.8 million, or 1.23 percent at June 30, 2007 and $156.3 million, or 1.20 percent at September 30, 2006.

Noninterest Expenses

Total noninterest expenses were $121.7 million in the third quarter, or $121.2 million apart from $0.5 million of severance and other costs. This compares to $138.1 million in the second quarter, which included $8.9 million of debt redemption premium costs related to prepayment of the capital trust securities and $5.3 million of severance and other costs in connection with Webster’s recently completed strategic review, and $115.9 million a year ago, which included $0.9 million of acquisition costs. Noninterest expenses declined by $2.6 million from the second quarter of 2007 (excluding the effect of the debt redemption premium and severance and other costs). Noninterest expenses increased by 5.4 percent for the third quarter of 2007 compared to the third quarter of 2006 (excluding the current quarter

severance and other costs and the acquisition costs of $0.9 million incurred in the year ago period).

Webster Chief Financial Officer Jerry Plush noted: “The effects of the repositioning steps we have taken over the past 15 months are now evidenced by our achieving positive operating leverage with adjusted revenue growth exceeding expense growth compared to a year ago. We’re committed to further reducing expenses in low contribution businesses identified in our recently completed strategic review and to centralizing shared services functions, which should benefit operating leverage in future periods.”

Balance Sheet Trends

Total assets were $16.8 billion at September 30, 2007 compared to $18.1 billion a year ago, with the decrease primarily related to balance sheet repositioning actions taken in the fourth quarter of 2006 and first quarter 2007. Total loans were $12.4 billion, a decrease of $0.6 billion, or 5 percent, from a year ago, as residential loans declined by $1.2 billion primarily due to repositioning actions. Securities totaled $2.5 billion and declined by $0.8 billion, or 24 percent from a year ago. Total deposits were $12.6 billion, an increase of $0.3 billion, or 2 percent from a year ago, which includes a $0.6 billion decline in brokered deposits. Excluding the decline in brokered deposits, retail deposits increased $0.9 billion with contributions from the branches acquired from the NewMil Bank acquisition, organic growth from our branch network and growth in health savings account deposits at HSA Bank.

The $0.6 billion reduction in loans, $0.8 billion reduction in securities and $0.3 billion of total deposit growth, each compared to a year ago, contributed to a $1.7 billion reduction in wholesale borrowings over the past year. Wholesale borrowings declined to 14 percent of total assets at September 30, 2007 compared to 22 percent a year ago.

The loan to deposit ratio was 99 percent at September 30, 2007 compared to 97 percent at June 30 and 106 percent a year ago. Improvement from a year ago reflects completion of balance sheet repositioning actions and the increase in deposits over the past year.

Book value per common share of $33.73 at September 30, 2007 increased from $32.02 a year ago. Tangible book value per share was $18.77 at September 30, 2007 compared to $19.11 a year ago. The ratio of tangible equity to tangible assets increased to 6.17 percent at September 30, 2007 compared to 5.66 percent a year ago.

Capital

Webster repurchased 1,152,800 shares of its common stock during the third quarter at a total cost of $48.9 million. As of September 30, 2007, Webster had 0.7 million shares of remaining

availability under the 2.8 million share repurchase authorization that was announced on June 5, 2007 and 2.7 million shares of availability under an additional authorization that was announced on September 26, 2007, for combined availability of approximately 3.4 million shares.

Mr. Plush noted: “Our improved capital position enabled us to repurchase over 1.1 million shares in the quarter and 3.1 million shares year to date while maintaining our principal capital ratios within the target ranges we outlined in our most recent investor presentation in September. We intend to continue to selectively repurchase our shares given the current level of our stock price.”

Asset Quality

Nonperforming assets totaled $104.2 million, or 0.84 percent of total loans and other real estate owned at September 30, 2007, compared to $78.7 million, or 0.63 percent, at June 30 and $61.4 million, or 0.47 percent, a year ago. Nonperforming assets in the residential portfolio totaled $34.3 million at September 30 compared to $27.4 million at June 30 and $7.6 million a year ago, with the majority of the increase coming from residential construction loans originated by Webster’s National Wholesale Lending operation. Webster previously announced it had discontinued residential construction lending outside of its New England market area, and has allocated reserves against these loans. Nonperforming assets in the consumer portfolio totaled $19.5 million at September 30 compared to $12.3 million at June 30 and $3.6 million a year ago, with the majority of the increase coming from home equity loans and lines of credit originated out of footprint. Webster is currently following a retail/in market origination strategy in its ongoing home equity activity.

The allowance for credit losses, which consists of the allowance for loan losses and the reserve for unfunded credit commitments, was $164.0 million, or 1.32 percent of total loans, at September 30, 2007 compared to $152.8 million, or 1.23 percent at June 30, 2007 and $156.3 million, or 1.20 percent at September 30, 2006. The ratio of the allowance for credit losses to nonperforming loans was 172 percent at September 30, 2007 compared to 211 percent at June 30 and 264 percent a year ago.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $16.8 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 179 banking offices, 339 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 at www.websteronline.com.

***

Conference Call

A conference call covering Webster’s 2007 third quarter earnings announcement will be held today, Tuesday, October 23, 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 1-877-407-8293 or 201-689-8349 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 2006. 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.

-—30-—

WEBSTER FINANCIAL CORPORATION

	At or for the Three Months Ended September 30,						At or for the Nine Months Ended September 30,
(In thousands, except per share data)	2007			2006 (c)			2007			2006 (c)
Adjusted net income and performance ratios, net of tax (annualized):
Net income	$	34,968		$	8,997		$	105,471		$	95,992
Net debt prepayment expense		—			—			4,427			—
Software development cost write-off		—			—			2,212			—
Severance costs		294			—			2,951			—
Closing costs-Peoples Mortgage Company		—			—			1,509			—
Write-down of construction loans held for sale		—			—			1,071			—
Recognition of loss on AFS securities		—			31,768			—			31,768
Adjusted net income		35,262			40,765			117,641			127,760
Net income per diluted common share		0.65			0.77			2.11			2.40
Return on average shareholders’ equity		7.70	%		9.80	%		8.37	%		10.23	%
Return on average tangible equity		13.68			16.55			14.65			17.27
Return on average assets		0.84			0.91			0.93			0.95
Noninterest income as a percentage of total revenue		32.16			31.28			31.97			30.69
Efficiency ratio (a)		64.72			65.03			65.62			64.37
Net income and performance ratios (annualized):
Net income	$	34,968		$	8,997		$	105,471		$	95,992
Net income per diluted common share		0.64			0.17			1.89			1.80
Return on average shareholders’ equity		7.63	%		2.17	%		7.50	%		7.70	%
Return on average tangible equity		13.57			3.66			13.13			13.01
Return on average assets		0.83			0.20			0.83			0.72
Noninterest income as a percentage of total revenue		32.16			5.30			32.03			23.89
Efficiency ratio (a)		64.96			89.61			68.95			70.68
Asset quality:
Allowance for credit losses	$	164,011		$	156,331		$	164,011		$	156,331
Nonperforming assets		104,174			61,416			104,174			61,416
Allowance for credit losses / total loans		1.32	%		1.20	%		1.32	%		1.20	%
Net charge-offs / average loans (annualized)		0.13			0.10			0.15			0.08
Nonperforming loans / total loans		0.77			0.45			0.77			0.45
Nonperforming assets / total loans plus OREO & repos		0.84			0.47			0.84			0.47
Allowance for credit losses / nonperforming loans		172.06			264.47			172.06			264.47
Other ratios (annualized):
Tangible capital ratio		6.17	%		5.66	%		6.17	%		5.66	%
Shareholders’ equity / total assets		10.72			9.26			10.72			9.26
Interest-rate spread		3.29			2.93			3.32			3.06
Net interest margin		3.38			3.01			3.42			3.13
Share related:
Book value per common share	$	33.73		$	32.02		$	33.73			32.02
Tangible book value per common share		18.77			19.11			18.77			19.11
Common stock closing price		42.12			47.11			42.12			47.11
Dividends declared per common share		0.30			0.27			0.87			0.79
Common shares issued and outstanding		53,520			52,476			53,520			52,476
Basic shares (average)		53,735			52,241			55,166			52,654
Diluted shares (average)		54,259			52,871			55,753			53,276

Footnotes:

(a) Noninterest expense as a percentage of net interest income plus noninterest income.

(b) For purposes of the yield computation, unrealized gains (losses) are excluded from the average balance.

(c) Certain previously reported information has been revised for the effect of a $4.2 million reduction in insurance commissions receivable, including a $2.7 million after-tax reduction in shareholders’ equity. There was no effect on net income for the periods presented.

Consolidated Statements of Condition (unaudited)

(In thousands)	September 30, 2007			June 30, 2007			September 30, 2006 (c)
Assets:
Cash and due from depository institutions	$	264,929		$	293,223		$	243,434
Short-term investments		80,270			8,222			9,562
Securities:
Trading, at fair value		635			5,935			2,848
Available for sale, at fair value		455,508			411,309			2,249,935
Held-to-maturity		2,051,277			2,046,891			1,064,188
Total securities		2,507,420			2,464,135			3,316,971
Loans held for sale		211,659			372,891			309,149
Loans:
Residential mortgages		3,677,682			3,736,313			4,845,198
Commercial		3,562,394			3,554,846			3,368,164
Commercial real estate		1,896,566			1,938,656			1,770,674
Consumer		3,283,914			3,210,457			3,037,674
Total loans		12,420,556			12,440,272			13,021,710
Allowance for loan losses		(154,532	)		(144,974	)		(147,446	)
Loans, net		12,266,024			12,295,298			12,874,264
Accrued interest receivable		86,654			85,078			93,844
Premises and equipment, net		197,852			194,412			189,562
Goodwill and other intangible assets		816,471			818,422			692,388
Cash surrender value of life insurance		266,729			264,100			245,108
Prepaid expenses and other assets		147,399			151,475			161,803
Total Assets	$	16,845,407		$	16,947,256		$	18,136,085
Liabilities and Shareholders’ Equity:
Deposits:
Demand deposits	$	1,479,503		$	1,544,695		$	1,453,317
NOW accounts		1,664,025			1,797,701			1,559,584
Money market deposit accounts		2,065,474			1,916,097			2,078,797
Savings accounts		2,211,125			2,194,215			1,838,494
Certificates of deposit		4,847,060			4,965,140			4,477,191
Brokered deposits		286,806			401,213			896,670
Total deposits		12,553,993			12,819,061			12,304,053
Federal Home Loan Bank advances		628,445			531,117			1,867,393
Securities sold under agreements to repurchase and other short-term debt		994,624			899,852			1,466,845
Long-term debt		666,236			656,455			636,028
Reserve for unfunded credit commitments		9,479			7,776			8,885
Accrued expenses and other liabilities		178,010			185,767			163,192
Total liabilities		15,030,787			15,100,028			16,446,396
Preferred stock of subsidiary corporation		9,577			9,577			9,577
Shareholders’ equity		1,805,043			1,837,651			1,680,112
Total Liabilities and Shareholders’ Equity	$	16,845,407		$	16,947,256		$	18,136,085

See Selected Financial Highlights for footnotes.

Consolidated Statements of Income (unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands, except per share data)	2007		2006			2007		2006
Interest income:
Loans	$	212,847	$	215,094		$	632,348	$	617,765
Securities and short-term investments		34,163		40,883			100,006		121,612
Loans held for sale		4,616		4,366			18,284		11,022
Total interest income		251,626		260,343			750,638		750,399
Interest expense:
Deposits		94,484		85,058			271,797		220,005
Borrowings		30,083		52,849			93,348		150,994
Total interest expense		124,567		137,907			365,145		370,999
Net interest income		127,059		122,436			385,493		379,400
Provision for credit losses		15,250		3,000			22,500		8,000
Net interest income after provision for credit losses		111,809		119,436			362,993		371,400
Noninterest income:
Deposit service fees		29,956		25,252			84,068		71,271
Insurance revenue		8,948		9,793			28,210		30,505
Loan related fees		7,661		7,760			23,502		24,746
Wealth and investment services		7,142		6,738			21,657		20,022
Mortgage banking activities		1,849		(185	)		8,040		5,626
Increase in cash surrender value of life insurance		2,629		2,368			7,749		7,053
Gain on sale of securities, net		482		2,307			1,526		4,021
Other		1,568		1,693			4,759		4,752
		60,235		55,726			179,511		167,996
Loss on write-down of AFS securities to fair value		—		(48,879	)		—		(48,879	)
Gain on Webster Capital Trust I and II securities		—		—			2,130		—
Total noninterest income		60,235		6,847			181,641		119,117
Noninterest expenses:
Compensation and benefits		66,958		62,050			202,237		191,638
Occupancy		12,516		11,977			39,099		35,983
Furniture and equipment		15,039		13,840			45,397		41,397
Intangible amortization		2,153		3,079			8,970		11,000
Marketing		4,134		4,211			12,554		12,127
Professional services		3,557		4,302			11,791		11,310
Other		16,867		15,523			51,794		47,951
		121,224		114,982			371,842		351,406
Debt redemption premium		—		—			8,940		—
Severance and other costs		452		—			10,265		—
Acquisition costs		—		868			—		933
Total noninterest expenses		121,676		115,850			391,047		352,339
Income before income taxes		50,368		10,433			153,587		138,178
Income taxes		15,400		1,436			48,116		42,186
Net income	$	34,968	$	8,997		$	105,471	$	95,992
Diluted shares (average)		54,259		52,871			55,753		53,276
Net income per common share:
Basic	$	0.65	$	0.17		$	1.91	$	1.82
Diluted		0.64		0.17			1.89		1.80

See Selected Financial Highlights for footnotes.

Consolidated Statements of Income (unaudited)

	Three Months Ended
(In thousands, except per share data)	Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006			Sept. 30, 2006
Interest income:
Loans	$	212,847	$	210,337	$	209,164	$	225,634		$	215,094
Securities and short-term investments		34,163		32,563		33,280		32,514			40,883
Loans held for sale		4,616		7,419		6,249		6,191			4,366
Total interest income		251,626		250,319		248,693		264,339			260,343
Interest expense:
Deposits		94,484		89,683		87,630		90,195			85,058
Borrowings		30,083		30,283		32,982		44,994			52,849
Total interest expense		124,567		119,966		120,612		135,189			137,907
Net interest income		127,059		130,353		128,081		129,150			122,436
Provision for credit losses		15,250		4,250		3,000		3,000			3,000
Net interest income after provision for credit losses		111,809		126,103		125,081		126,150			119,436
Noninterest income:
Deposit service fees		29,956		28,758		25,354		25,494			25,252
Insurance revenue		8,948		9,141		10,121		8,301			9,793
Loan related fees		7,661		7,901		7,940		9,643			7,760
Wealth and investment services		7,142		7,637		6,878		7,161			6,738
Mortgage banking activities		1,849		3,962		2,229		2,917			(185	)
Increase in cash surrender value of life insurance		2,629		2,586		2,534		2,550			2,368
Gain (loss) on sale of securities, net		482		503		541		(2,732	)		2,307
Other		1,568		1,367		1,824		3,733			1,693
		60,235		61,855		57,421		57,067			55,726
Gain on Webster Capital Trust I and II securities		—		2,130		—		—			—
Loss on write-down of AFS securities to fair value		—		—		—		—			(48,879	)
Loss on sale of mortgage loans		—		—		—		(5,713	)		—
Total noninterest income		60,235		63,985		57,421		51,354			6,847
Noninterest expenses:
Compensation and benefits		66,958		66,888		68,391		64,142			62,050
Occupancy		12,516		13,200		13,383		13,403			11,977
Furniture and equipment		15,039		15,389		14,969		14,637			13,840
Intangible amortization		2,153		3,344		3,473		3,473			3,079
Marketing		4,134		4,209		4,211		3,350			4,211
Professional services		3,557		3,432		4,802		5,457			4,302
Other		16,867		17,398		17,529		16,129			15,523
		121,224		123,860		126,758		120,591			114,982
Debt redemption premium		—		8,940		—		—			—
Severance and other costs		452		5,291		4,522		—			—
Acquisition costs		—		—		—		2,018			868
Total noninterest expenses		121,676		138,091		131,280		122,609			115,850
Income before income taxes		50,368		51,997		51,222		54,895			10,433
Income taxes		15,400		16,530		16,186		17,097			1,436
Net income	$	34,968	$	35,467	$	35,036	$	37,798		$	8,997
Diluted shares (average)		54,259		56,243		56,762		56,452			52,871
Net income per common share:
Basic	$	0.65	$	0.64	$	0.62	$	0.68		$	0.17
Diluted		0.64		0.63		0.62		0.67			0.17

See Selected Financial Highlights for footnotes.

Interest-Rate Spread (unaudited)

	Three Months Ended
	September 30, 2007		June 30, 2007		March 31, 2007		December 31, 2006		September 30, 2006
Interest-rate spread
Yield on interest-earning assets	6.61	%	6.62	%	6.61	%	6.52	%	6.31	%
Cost of interest-bearing liabilities	3.32		3.25		3.29		3.38		3.38
Interest-rate spread	3.29	%	3.37	%	3.32	%	3.14	%	2.93	%
Net interest margin	3.38	%	3.47	%	3.41	%	3.23	%	3.01	%

Consolidated Average Statements of Condition (unaudited)

Three Months Ended September 30,	2007							2006
(Dollars in thousands)	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance (c)		Interest			Fully tax- equivalent yield/rate
Assets:
Interest-earning assets:
Loans	$	12,390,191	$	212,847		6.80	%	$	12,813,385	$	215,094		6.65	%
Securities (b)		2,470,938		35,783		5.79			3,347,060		43,000		5.06
Loans held for sale		297,330		4,616		6.21			277,181		4,366		6.30
Short-term investments		91,362		1,185		5.08			18,484		190		4.02
Total interest-earning assets		15,249,821		254,431		6.61			16,456,110		262,650		6.31
Noninterest-earning assets		1,597,950							1,496,171
Total assets	$	16,847,771						$	17,952,281
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,512,450	$	—		—	%	$	1,451,171	$	—		—	%
Savings, NOW and money market deposit accounts		5,909,836		34,832		2.34			5,445,159		28,258		2.06
Time deposits		5,224,511		59,652		4.53			5,308,496		56,800		4.23
Total deposits		12,646,797		94,484		2.96			12,204,826		85,058		2.76
Federal Home Loan Bank advances		589,427		6,906		4.58			2,069,417		26,328		4.98
Repurchase agreements and other short-term debt		949,452		10,733		4.42			1,215,371		13,764		4.43
Long-term debt		661,075		12,444		7.53			627,379		12,757		8.13
Total borrowings		2,199,954		30,083		5.40			3,912,167		52,849		5.31
Total interest-bearing liabilities		14,846,751		124,567		3.32			16,116,993		137,907		3.38
Noninterest-bearing liabilities		159,375							165,298
Total liabilities		15,006,126							16,282,291
Preferred stock of subsidiary corporation		9,577							9,577
Shareholders’ equity		1,832,068							1,660,413
Total liabilities and shareholders’ equity	$	16,847,771						$	17,952,281
				129,864							124,743
Less: tax-equivalent adjustment				(2,805	)						(2,307	)
Net interest income			$	127,059						$	122,436
Interest-rate spread						3.29	%						2.93	%
Net interest margin						3.38	%						3.01	%

See Selected Financial Highlights for footnotes.

5

Consolidated Average Statements of Condition (unaudited)

Nine Months Ended September 30,	2007							2006
(Dollars in thousands)	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance (c)		Interest			Fully tax- equivalent yield/rate
Assets:
Interest-earning assets:
Loans	$	12,380,468	$	632,348		6.78	%	$	12,611,701	$	617,765		6.51	%
Securities (b)		2,402,321		105,023		5.84			3,490,595		127,810		4.81
Loans held for sale		390,651		18,284		6.24			245,559		11,022		5.98
Short-term investments		73,122		2,913		5.25			24,038		709		3.89
Total interest-earning assets		15,246,562		758,568		6.61			16,371,893		757,306		6.13
Noninterest-earning assets		1,598,840							1,498,577
Total assets	$	16,845,402						$	17,870,470
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,511,333	$	—		—	%	$	1,453,435	$	—		—	%
Savings, NOW and money market deposit accounts		5,733,793		93,982		2.19			5,375,789		70,555		1.75
Time deposits		5,256,838		177,815		4.52			5,122,366		149,450		3.89
Total deposits		12,501,964		271,797		2.91			11,951,590		220,005		2.46
Federal Home Loan Bank advances		743,770		26,490		4.70			2,235,163		76,153		4.49
Repurchase agreements and other short-term debt		970,515		33,208		4.51			1,244,686		38,200		4.05
Long-term debt		591,331		33,650		7.59			632,257		36,641		7.73
Total borrowings		2,305,616		93,348		5.36			4,112,106		150,994		4.86
Total interest-bearing liabilities		14,807,580		365,145		3.29			16,063,696		370,999		3.07
Noninterest-bearing liabilities		154,169							134,520
Total liabilities		14,961,749							16,198,216
Preferred stock of subsidiary corporation		9,577							9,577
Shareholders’ equity		1,874,076							1,662,677
Total liabilities and shareholders’ equity	$	16,845,402						$	17,870,470
				393,423							386,307
Less: tax-equivalent adjustment				(7,930	)						(6,907	)
Net interest income			$	385,493						$	379,400
Interest-rate spread						3.32	%						3.06	%
Net interest margin						3.42	%						3.13	%

See Selected Financial Highlights for footnotes.

	At or for the Three Months Ended
(Unaudited) (Dollars in thousands)	September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006
Asset Quality
Nonperforming loans:
Commercial:
Commercial	$	25,845		$	20,142		$	13,679		$	21,105		$	29,321
Equipment financing		5,054			2,584			2,405			2,616			2,450
Total commercial		30,899			22,726			16,084			23,721			31,771
Commercial real estate		14,238			12,242			18,524			17,618			16,811
Residential		33,297			26,683			13,473			11,307			7,032
Consumer		16,887			10,875			10,808			6,266			3,496
Total nonperforming loans		95,321			72,526			58,889			58,912			59,110
Other real estate owned and repossessed assets:
Commercial		5,233			3,950			4,833			1,922			1,573
Residential		985			711			350			383			607
Consumer		2,635			1,467			758			608			126
Total other real estate owned and repossessed assets		8,853			6,128			5,941			2,913			2,306
Total nonperforming assets	$	104,174		$	78,654		$	64,830		$	61,825		$	61,416
Accruing loans 90 or more days past due	$	1,286		$	2,088		$	4,636		$	1,490		$	4,609
Allowance for Credit Losses
Beginning balance	$	152,750		$	152,660		$	154,994		$	156,331		$	156,471
Provision		15,250			4,250			3,000			3,000			3,000
Allowance for acquired loans		—			—			—			4,724			—
Charge-offs:
Commercial		1,992			2,034			2,293			9,352			3,369
Residential		433			286			2,581			199			46
Consumer		2,582			3,176			1,993			454			265
Total charge-offs		5,007			5,496			6,867			10,005			3,680
Recoveries		(1,018	)		(1,336	)		(1,533	)		(944	)		(540	)
Net loan charge-offs		3,989			4,160			5,334			9,061			3,140
Ending balance	$	164,011		$	152,750		$	152,660		$	154,994		$	156,331
Components:
Allowance for loan losses	$	154,532		$	144,974		$	145,367		$	147,719		$	147,446
Reserve for unfunded credit commitments		9,479			7,776			7,293			7,275			8,885
Allowance for credit losses	$	164,011		$	152,750		$	152,660		$	154,994		$	156,331
Asset Quality Ratios:
Allowance for loan losses / total loans		1.24	%		1.17	%		1.18	%		1.14	%		1.13	%
Allowance for credit losses / total loans		1.32			1.23			1.24			1.20			1.20
Net charge-offs / average loans (annualized)		0.13			0.14			0.17			0.27			0.10
Nonperforming loans / total loans		0.77			0.58			0.48			0.46			0.45
Nonperforming assets / total loans plus OREO & repos		0.84			0.63			0.53			0.48			0.47
Allowance for credit losses / nonperforming loans		172.06			210.61			259.23			263.09			264.47

See Selected Financial Highlights for footnotes.