Exhibit 99.1

Media Contact	Investor Contact
Ed Steadham 203-578-2287	James Sitro 203-578-2399
esteadham@websterbank.com	jsitro@websterbank.com

WEBSTER REPORTS CONTINUED STRONG DEPOSIT GROWTH AND

SECOND QUARTER RESULTS

WATERBURY, Conn., July 17, 2009 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a consolidated net loss of $31.6 million and net income available to common shareholders of $16.8 million for the quarter ended June 30, 2009. For the first six months of 2009, the consolidated net loss was $42.7 million and net loss available to common shareholders was $4.8 million.

Key points for the quarter include:

Deposits grew $480 million, resulting in an improved loan-to-deposit ratio of 88 percent and core to total deposit ratio of 65 percent.

The successful exchange offer for convertible preferred stock and trust preferred securities completed during the second quarter contributed $173 million in additional Tier 1 common equity. Webster continues to exceed all requirements for well capitalized regulatory ratios by a wide margin.

Gains from the exchange offer offset charges related to write-downs and sales of investment securities and a special FDIC assessment which, taken together, contributed to net income available to common shareholders of $16.8 million.

Webster recorded $85.0 million in provision for loan losses and net loan charge-offs totaled $50.0 million. The allowance for credit losses increased to 2.72 percent of total loans. Non performing assets increased by 10 percent or $36 million during the quarter, of which $24 million were restructured loans.

Noninterest expenses declined by 6 percent from a year ago, excluding charges for foreclosed property expense, FDIC deposit insurance assessments, goodwill impairment and severance and other costs.

Webster Chairman and Chief Executive Officer James C. Smith said, “The major development in the second quarter was our highly successful exchange offer which boosted our Tier 1 common

equity by more than $170 million. In addition to strengthening our capital position, the additional common equity enhances our ability to compete vigorously for new business and to move forward confidently toward our goal of being New England’s bank.

“During the quarter,” Smith added, “we continued to be vigilant on asset quality. We again added to reserves in excess of charge-offs so that our allowance for credit losses now stands at 2.72 percent of total loans. The slow-down in the growth of delinquencies and nonperforming loans across most loan categories is encouraging in this challenging economic environment.”

Exchange offer for convertible preferred stock and trust preferred securities

• During the second quarter, Webster initiated and completed an exchange offer for its Series A Convertible Preferred Stock for shares of Webster common stock and cash and Webster Capital Trust IV Trust Preferred Securities for shares of Webster common stock. Webster accepted $168.5 million of the convertible preferred stock that was tendered, which represented the 75 percent maximum level of participation. All of the $63.9 million in trust preferred securities tendered were accepted by Webster, which represented a participation rate of 32 percent.

• Webster issued 11.3 million common shares and paid $59 million in cash under the exchange offer for an effective cost of common issuance of $14.68 per share. The exchange offer generated $173 million of Tier 1 common equity and reduces interest and dividend expense by $19.2 million annually ($17.5 million after-tax).

Net interest income

• Net interest margin improved to 3.04 percent in the second quarter compared to 2.99 percent in the first quarter; the increase reflects a 15 basis point decline in the cost of funds offsetting a 10 basis point decline in the yield on interest-earning assets.

• Average interest-earning assets totaled $16.0 billion, down from $16.1 billion last quarter.

Provision for credit losses

• $74.3 million of the provision for credit losses recorded in the quarter was related to the Company’s continuing portfolios and $10.7 million was related to the discontinued liquidating portfolio.

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• Net charge-offs were $49.9 million in the quarter compared to $30.1 million for the quarter ended March 31, 2009; $36.7 million was related to the continuing portfolios and $13.2 million was related to the discontinued liquidating portfolio.

Noninterest income

• Deposit service fees increased by $2.0 million from last quarter, reflecting a seasonal improvement over the first quarter.

• Wealth and investment services revenues increased by $0.3 million from the last quarter, primarily from an improved average level of assets under management.

• Loan related fees declined by $0.1 million from the last quarter, reflective of decreased commercial and consumer loan originations.

• Mortgage banking revenue increased by $2.8 million from the last quarter from increased mortgage lending activity.

• Net loss on sale of securities totaled $13.6 million, primarily from a net loss of $11.9 million on the sale of $12.3 million book value of pooled trust preferred securities and $1.7 million loss on sales of $7 million in common equities.

• Gain of $24.3 million in connection with the early extinguishment of $63.9 million of trust preferred securities under the exchange offer

• Loss of $27.1 million on the write-down of certain pooled trust preferred securities to fair value based on credit deterioration in underlying issuers.

• Gain of $1.9 million related to the sale of Visa shares.

Noninterest expenses

• The increase in noninterest expenses from last quarter represents increased compensation and benefits expense as well as higher ongoing FDIC deposit insurance assessments.

• Charges recorded in the second quarter include $1.2 million of write-downs on certain corporate properties classified as assets held for sale.

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• A special FDIC assessment of $8 million was recorded during the second quarter.

Income taxes

• Due to the pre-tax loss, the effective tax rate for the second quarter was not meaningful. The Company recorded a $28.5 million tax benefit in the quarter on the $60.4 million pre-tax loss applicable to continuing operations in the period.

Investment securities

• Total investment securities were $4.2 billion at June 30, 2009 compared to $3.5 billion at March 31, 2009. The carrying value of the available for sale portfolio included $49 million in unrealized losses, while the carrying value of the held to maturity portfolio did not reflect $33 million in unrealized gains.

Loans

• Total loans were $11.6 billion at June 30, 2009 compared to $12.1 billion at March 31, 2009. In the second quarter, residential mortgage loans declined by $302.1 million primarily in connection with the securitization of $203 million in conforming residential loans. Consumer, commercial and commercial real estate loans declined by $86.7 million, $81.4 million and $14.5 million, respectively.

• Out-of-market asset based loans declined $56.0 million from March 31, 2009, or more than two-thirds of the decline in commercial loans noted above.

• The discontinued liquidating portfolio of indirect home equity and national construction loans, included in the consumer and residential loan portfolios, declined by $24.5 million from March 31, 2009 to $249.1 million and $6.5 million, respectively.

Asset quality

• Total nonperforming loans were $350.4 million or 3.02 percent of total loans at June 30, 2009 compared to $316.2 million or 2.61 percent at March 31, 2009. The increase in nonperforming loans was primarily attributed to a combined increase of $24.0 million in performing non accrual residential mortgages and consumer loans and an increase of $19.6 million in non accrual equipment financing loans. Non

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accrual loans in all other loan categories declined by a combined amount of $9.4 million.

• Past due loans for the continuing portfolios declined to $112.5 million at June 30, 2009 compared to $112.8 million at March 31, 2009. Past due loans for the liquidating portfolio declined to $9.9 million at June 30, 2009 compared to $12.2 million at March 31, 2009.

Deposits and borrowings

• Total deposits were $13.2 billion at June 30, 2009 compared to $12.7 billion at March 31, 2009. NOW accounts, savings and demand deposits increased $655.2 million, $202.9 million and $65.1 million, respectively, while certificates of deposits and money market deposit accounts decreased $216.9 million and $176.0 million respectively.

• Core deposits, which exclude certificates of deposits and brokered deposits, represented 65.2 percent of total deposits at June 30, 2009 compared to 61.7 percent at March 31, 2009 and 62.0 percent a year ago.

• Total borrowings were $2.3 billion, a decline of $0.2 billion from $2.5 billion at March 31, 2009. Long-term debt declined from $662 million at March 31, 2009 to $591 million at June 30, 2009 in connection with the exchange offer.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.5 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 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 at www.websteronline.com.

***

Conference Call

A conference call covering Webster’s second quarter earnings announcement will be held today, Friday, July 17, at 9:00 a.m. EDT and may be heard through Webster’s investor relations website at www.wbst.com, or in

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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 June 30,						At or for the Six Months Ended June 30,
(In thousands, except per share data)	2009			2008			2009			2008
Net loss and performance ratios (annualized):
Net loss	$	(31,562	)	$	(28,725	)	$	(42,686	)	$	(4,144	)
Net income (loss) per diluted common share		0.31			(0.56	)		(0.09	)		(0.09	)
Return on average shareholders’ equity		(6.81	)%		(6.51	)%		(4.60	)%		(0.47	)%
Return on average tangible equity		(9.68	)		(11.34	)		(6.54	)		(0.83	)
Return on average assets		(0.72	)		(0.67	)		(0.49	)		(0.05	)
Loss from continuing operations and performance ratios (annualized):
Loss from continuing operations	$	(31,875	)	$	(28,286	)	$	(42,999	)	$	(1,581	)
Net income (loss) from continuing operations per diluted common share		0.31			(0.55	)		(0.10	)		(0.04	)
Return on average shareholders’ equity		(6.88	)%		(6.41	)%		(4.63	)%		(0.18	)%
Return on average tangible equity		(9.78	)		(11.17	)		(6.59	)		(0.32	)
Return on average assets		(0.73	)		(0.66	)		(0.49	)		(0.02	)
Noninterest income as a percentage of total revenue		22.87			(4.79	)		27.37			14.39
Efficiency ratio (a)		66.40			65.35			66.91			67.87
Asset quality:
Allowance for credit losses	$	316,037		$	194,368		$	316,037		$	194,368
Nonperforming assets		384,203			224,100			384,203			224,100
Allowance for credit losses / total loans		2.72	%		1.52	%		2.72	%		1.52	%
Net charge-offs / average loans (annualized)		1.66			0.64			1.33			0.70
Nonperforming loans / total loans		3.02			1.62			3.02			1.62
Nonperforming assets / total loans plus OREO		3.30			1.75			3.30			1.75
Allowance for credit losses / nonperforming loans		90.19			93.87			90.19			93.87
Other ratios (annualized):
Tangible capital ratio		7.58	%		6.79	%		7.58	%		6.79	%
Tangible common equity ratio		4.92			5.44			4.92			5.44
Total-risk based capital (d)		13.80			13.51			13.80			13.51
Tier 1 common equity / risk weighted assets (d)		6.40			7.18			6.40			7.18
Shareholders’ equity / total assets		10.55			10.82			10.55			10.82
Interest-rate spread		2.96			3.20			2.93			3.20
Net interest margin		3.04			3.26			3.01			3.27
Share related:
Book value per common share	$	21.73		$	31.71		$	21.73		$	31.71
Tangible book value per common share		13.15			17.57			13.15			17.57
Common stock closing price		8.05			18.60			8.05			18.60
Dividends declared per common share		0.01			0.30			0.02			0.60
Common shares issued and outstanding		64,098			52,551			64,098			52,551
Basic shares (average)		53,398			52,017			52,478			52,009
Diluted shares (average)		53,398			52,017			52,478			52,009

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)

(In thousands)	June 30, 2009			March 31, 2009			June 30, 2008
Assets:
Cash and due from depository institutions	$	254,638		$	208,862		$	323,480
Short-term investments		8,216			19,942			2,996
Investment securities:
Trading, at fair value		—			—			2,280
Available for sale, at fair value		1,405,872			1,097,229			849,591
Held-to-maturity		2,767,965			2,429,887			2,065,771
Total securities		4,173,837			3,527,116			2,917,642
Loans held for sale		113,936			48,876			3,972
Loans:
Residential mortgages		2,881,955			3,184,082			3,594,100
Commercial		3,333,610			3,415,051			3,637,395
Commercial real estate		2,235,776			2,250,295			2,314,497
Consumer		3,159,361			3,246,031			3,220,462
Total loans		11,610,702			12,095,459			12,766,454
Allowance for loan losses		(305,999	)		(270,929	)		(184,868	)
Loans, net		11,304,703			11,824,530			12,581,586
Federal Home Loan Bank and Federal Reserve Bank stock		137,874			134,874			132,210
Accrued interest receivable		69,317			67,951			73,060
Premises and equipment, net		179,625			182,629			190,273
Goodwill and other intangible assets, net		561,013			562,462			756,503
Cash surrender value of life insurance		285,064			282,399			274,570
Deferred tax assets, net		153,745			199,531			94,823
Prepaid expenses and other assets		210,608			197,562			127,521
Total Assets	$	17,452,576		$	17,256,734		$	17,478,636
Liabilities and Equity:
Deposits:
Demand deposits	$	1,595,390		$	1,530,335		$	1,583,686
NOW accounts		2,591,108			1,935,926			1,861,997
Money market deposit accounts		1,618,910			1,794,943			1,591,857
Savings accounts		2,778,970			2,576,058			2,452,831
Certificates of deposit		4,422,033			4,638,977			4,416,165
Brokered deposits		168,171			218,520			170,031
Total deposits		13,174,582			12,694,759			12,076,567
Securities sold under agreements to repurchase and other short-term debt		1,015,099			1,146,852			1,275,024
Federal Home Loan Bank advances		663,123			671,294			1,419,570
Long-term debt		590,520			661,968			653,995
Accrued expenses and other liabilities		158,102			216,734			152,169
Total liabilities		15,601,426			15,391,607			15,577,325
Shareholders’ equity		1,841,518			1,855,495			1,891,705
Noncontrolling interests		9,632			9,632			9,606
Total equity		1,851,150			1,865,127			1,901,311
Total Liabilities and Equity	$	17,452,576		$	17,256,734		$	17,478,636

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Consolidated Statements of Operations (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share data)	2009			2008			2009			2008
Interest income:
Loans including fees	$	137,533		$	175,786		$	278,300		$	367,058
Investment securities		48,799			38,115			99,626			77,447
Loans held for sale		833			92			997			1,492
Total interest income		187,165			213,993			378,923			445,997
Interest expense:
Deposits		49,982			60,055			102,890			135,297
Borrowings		17,895			28,252			38,548			60,158
Total interest expense		67,877			88,307			141,438			195,455
Net interest income		119,288			125,686			237,485			250,542
Provision for credit losses		85,000			25,000			151,000			40,800
Net interest income after provision for credit losses		34,288			100,686			86,485			209,742
Non-interest income:
Deposit service fees		29,984			29,943			57,943			58,376
Loan related fees		6,350			7,891			12,832			14,749
Wealth and investment services		6,081			7,634			11,831			14,590
Mortgage banking activities		3,433			104			4,039			844
Increase in cash surrender value of life insurance		2,665			2,623			5,257			5,204
Net (loss) gain on sale of investment securities		(13,593	)		126			(9,135	)		249
Other income		1,325			854			1,600			2,638
		36,245			49,175			84,367			96,650
Gain on the exchange of trust preferreds for common stock		24,336			—			24,336			—
Gain on early extinguishment of subordinated notes		—			—			5,993			—
Loss on write-down of investments to fair value		(27,110	)		(54,924	)		(27,110	)		(56,177	)
Visa share transactions		1,907			—			1,907			1,625
Total non-interest income		35,378			(5,749	)		89,493			42,098
Non-interest expenses:
Compensation and benefits		59,189			62,866			115,658			126,309
Occupancy		13,594			13,128			27,889			26,810
Furniture and equipment		15,288			15,634			30,428			30,794
Marketing		3,196			4,940			6,302			8,583
Outside services		3,394			3,706			7,178			7,859
Intangible amortization		1,450			1,464			2,913			3,012
Foreclosed and repossessed asset expenses		1,799			1,068			2,978			1,348
Foreclosed and repossessed asset write-downs		2,829			484			6,279			717
FDIC deposit insurance assessment		5,959			344			10,549			698
Other expenses		14,066			16,005			28,366			30,063
		120,764			119,639			238,540			236,193
Severance and other costs		1,313			9,368			1,553			8,718
Impairment of goodwill		—			8,500			—			8,500
FDIC special assessment		8,000			—			8,000			—
Total non-interest expenses		130,077			137,507			248,093			253,411
Loss from continuing operations before income taxes		(60,411	)		(42,570	)		(72,115	)		(1,571	)
Income tax (benefit) expense		(28,536	)		(14,285	)		(29,129	)		18
Loss from continuing operations		(31,875	)		(28,285	)		(42,986	)		(1,589	)
Income (loss) from discontinued operations, net of tax		313			(439	)		313			(2,563	)
Consolidated net loss	$	(31,562	)	$	(28,724	)	$	(42,673	)	$	(4,152	)
Less: Net income (loss) attributable to noncontrolling interests		—			1			13			(8	)
Net loss attributable to Webster Financial Corporation		(31,562	)		(28,725	)		(42,686	)		(4,144	)
Preferred stock dividends, accretion and extinguishment gain		48,361			(215	)		37,932			(431	)
Net income (loss) available to common shareholders	$	16,799		$	(28,940	)	$	(4,754	)	$	(4,575	)
Diluted shares (average)		53,398			52,017			52,478			52,009
Net income (loss) per common share:
Basic
Income (loss) from continuing operations	$	0.31		$	(0.55	)	$	(0.10	)	$	(0.04	)
Net income (loss)		0.31			(0.56	)		(0.09	)		(0.09	)
Diluted
Income (loss) from continuing operations		0.31			(0.55	)		(0.10	)		(0.04	)
Net income (loss)		0.31			(0.56	)		(0.09	)		(0.09	)

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Consolidated Statements of Operations (unaudited)

	Three Months Ended
(In thousands, except per share data)	June 30, 2009			March 31, 2009			Dec. 31, 2008			Sept. 30, 2008			June 30, 2008
Interest income:
Loans including fees	$	137,533		$	140,767		$	168,200		$	175,363		$	175,786
Investment securities		48,799			50,827			40,398			39,210			38,115
Loans held for sale		833			164			51			54			92
Total interest income		187,165			191,758			208,649			214,627			213,993
Interest expense:
Deposits		49,982			52,908			57,154			57,731			60,055
Borrowings		17,895			20,653			25,427			27,715			28,252
Total interest expense		67,877			73,561			82,581			85,446			88,307
Net interest income		119,288			118,197			126,068			129,181			125,686
Provision for credit losses		85,000			66,000			100,000			45,500			25,000
Net interest income after provision for credit losses		34,288			52,197			26,068			83,681			100,686
Noninterest income:
Deposit service fees		29,984			27,959			30,018			31,738			29,943
Loan related fees		6,350			6,482			7,147			7,171			7,891
Wealth and investment services		6,081			5,750			6,480			7,070			7,634
Mortgage banking activities		3,433			606			336			50			104
Increase in cash surrender value of life insurance		2,665			2,592			2,631			2,606			2,623
Net (loss) gain on sale of investment securities		(13,593	)		4,458			(4,233	)		(50	)		126
Other income		1,325			275			1,315			2,731			854
		36,245			48,122			43,694			51,316			49,175
Gain on the exchange of trust preferreds for common stock		24,336			—			—			—			—
Gain on early extinguishment of debt and swaps		—			5,993			—			—			—
Loss on write-down of investments to fair value		(27,110	)		—			(129,593	)		(33,507	)		(54,924	)
Loss on sale of FNMA/FHLMC preferred stock		—			—			—			(2,060	)		—
Visa share transactions		1,907			—			—			—			—
Total noninterest income		35,378			54,115			(85,899	)		15,749			(5,749	)
Noninterest expenses:
Compensation and benefits		59,189			56,469			52,078			61,314			62,866
Occupancy		13,594			14,295			13,406			12,827			13,128
Furniture and equipment		15,288			15,140			15,469			14,892			15,634
Marketing		3,196			3,106			2,895			2,478			4,940
Outside services		3,394			3,784			4,101			3,798			3,706
Intangible amortization		1,450			1,463			1,463			1,464			1,464
Foreclosed and repossessed asset expenses		1,799			1,179			1,799			1,496			1,068
Foreclosed and repossessed asset write-downs		2,829			3,450			1,615			1,968			484
FDIC deposit insurance assessment		5,959			4,590			3,468			532			344
Other expenses		14,066			14,302			13,379			13,998			16,005
		120,764			117,778			109,673			114,767			119,639
Severance and other costs		1,313			240			5,905			1,535			9,368
FDIC special assessment		8,000			—			—			—			—
Goodwill impairment		—			—			188,866			1,013			8,500
Total noninterest expenses		130,077			118,018			304,444			117,315			137,507
Loss from continuing operations before income taxes		(60,411	)		(11,706	)		(364,275	)		(17,885	)		(42,570	)
Income tax benefit		(28,536	)		(593	)		(63,980	)		(1,878	)		(14,285	)
Loss from continuing operations		(31,875	)		(11,113	)		(300,295	)		(16,007	)		(28,285	)
Income (loss) from discontinued operations, net of tax		313			—			8			(518	)		(439	)
Consolidated net loss	$	(31,562	)	$	(11,113	)	$	(300,287	)	$	(16,525	)	$	(28,724	)
Less: Net income (loss) attributable to noncontrolling interests		—			13			(1	)		14			1
Net loss attributable to Webster Financial Corporation		(31,562	)	$	(11,126	)	$	(300,286	)	$	(16,539	)	$	(28,725	)
Preferred stock dividends, accretion and extinguishment gain		48,361			(10,430	)		(7,308	)		(5,209	)		(215	)
Net income (loss) available to common shareholders	$	16,799		$	(21,556	)	$	(307,594	)	$	(21,748	)	$	(28,940	)
Diluted shares (average)		53,398			52,102			52,031			52,032			52,017
Net income (loss) per common share:
Basic
Income (loss) from continuing operations	$	0.31		$	(0.41	)	$	(5.91	)	$	(0.41	)	$	(0.55	)
Net income (loss)		0.31			(0.41	)		(5.91	)		(0.42	)		(0.56	)
Diluted
Income (loss) from continuing operations		0.31			(0.41	)		(5.91	)		(0.41	)		(0.55	)
Net income (loss)		0.31			(0.41	)		(5.91	)		(0.42	)		(0.56	)

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Interest-Rate Spreads (unaudited)

	Three Months Ended
	June 30, 2009		March 31, 2009		December 31, 2008		September 30, 2008		June 30, 2008
Interest-rate spread
Yield on interest-earning assets	4.72	%	4.82	%	5.24	%	5.45	%	5.51	%
Cost of interest-bearing liabilities	1.76		1.91		2.13		2.21		2.31
Interest-rate spread	2.96	%	2.91	%	3.11	%	3.24	%	3.20	%
Net interest margin	3.04	%	2.99	%	3.20	%	3.32	%	3.26	%

Consolidated Average Balances, Yields and Rates Paid (unaudited)

Three Months Ended June 30,	2009							2008
(Dollars in thousands)	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance		Interest			Fully tax- equivalent yield/rate
Assets:
Interest-earning assets:
Loans	$	12,003,362	$	137,533		4.57	%	$	12,686,784	$	175,786		5.52	%
Investment securities (b)		3,804,936		51,689		5.32			2,882,509		40,435		5.48
Loans held for sale		77,787		833		4.28			5,705		92		6.45
Federal Home Loan and Federal Reserve Bank stock		137,841		670		1.95			126,073		1,366		4.36
Short-term investments		12,124		43		1.39			6,374		40		2.50
Total interest-earning assets		16,036,050		190,768		4.72			15,707,445		217,719		5.51
Noninterest-earning assets		1,443,322							1,541,441
Total assets	$	17,479,372						$	17,248,886
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,567,026	$	—		—	%	$	1,487,433	$	—		—	%
Savings, NOW and money market deposit accounts		6,745,909		15,229		0.91			5,891,261		19,305		1.31
Time deposits		4,778,929		34,753		2.92			4,626,051		40,751		3.53
Total deposits		13,091,864		49,982		1.53			12,004,745		60,056		2.01
Securities sold under agreements to repurchase and other short-term debt		1,031,671		4,554		1.75			1,298,709		8,561		2.61
Federal Home Loan Bank advances		666,604		6,459		3.83			1,358,648		10,548		3.07
Long-term debt		653,712		6,882		4.21			660,642		9,142		5.54
Total borrowings		2,351,987		17,895		3.02			3,317,999		28,251		3.38
Total interest-bearing liabilities		15,443,851		67,877		1.76			15,322,744		88,307		2.31
Noninterest-bearing liabilities		171,664							149,693
Total liabilities		15,615,515							15,472,437
Preferred stock of subsidiary corporation		9,577							9,577
Shareholders’ equity		1,854,280							1,766,872
Total liabilities and shareholders’ equity	$	17,479,372						$	17,248,886
Tax-equivalent net interest income				122,891							129,412
Less: tax-equivalent adjustment				(3,603	)						(3,726	)
Net interest income			$	119,288						$	125,686
Interest-rate spread						2.96	%						3.20	%
Net interest margin						3.04	%						3.26	%

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Consolidated Average Balances, Yields and Rates Paid (unaudited)

Six Months Ended June 30,	2009							2008
(Dollars in thousands)	Average balance		Interest			Fully tax- equivalent yield/rate		Average balance		Interest			Fully tax- equivalent yield/rate
Assets:
Interest-earning assets:
Loans	$	12,076,781	$	278,300		4.61	%	$	12,613,449	$	367,058		5.80	%
Investment securities (b)		3,808,227		105,575		5.40			2,860,599		81,735		5.61
Loans held for sale		49,259		997		4.05			51,039		1,492		5.85
Federal Home Loan and Federal Reserve Bank stock		136,366		1,296		1.92			121,135		3,039		5.05
Short-term investments		16,114		74		0.92			5,032		77		3.05
Total interest-earning assets		16,086,747		386,242		4.77			15,651,254		453,401		5.76
Noninterest-earning assets		1,454,622							1,540,169
Total assets	$	17,541,369						$	17,191,423
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,537,297	$	—		—	%	$	1,462,493	$	—		—	%
Savings, NOW and money market deposit accounts		6,346,814		30,940		0.98			5,843,966		43,485		1.49
Time deposits		4,808,525		71,950		3.02			4,782,166		91,813		3.85
Total deposits		12,692,636		102,890		1.63			12,088,625		135,298		2.25
Securities sold under agreements to repurchase and other short-term debt		1,361,792		10,355		1.51			1,329,236		19,780		2.94
Federal Home Loan Bank advances		767,923		13,513		3.50			1,199,292		20,427		3.37
Long-term debt		667,465		14,680		4.40			659,715		19,950		6.05
Total borrowings		2,797,180		38,548		2.75			3,188,243		60,157		3.75
Total interest-bearing liabilities		15,489,816		141,438		1.84			15,276,868		195,455		2.56
Noninterest-bearing liabilities		185,563							155,120
Total liabilities		15,675,379							15,431,988
Preferred stock of subsidiary corporation		9,577							9,577
Shareholders’ equity		1,856,413							1,749,858
Total liabilities and shareholders’ equity	$	17,541,369						$	17,191,423
				244,804							257,946
Less: tax-equivalent adjustment				(7,319	)						(7,404	)
Net interest income			$	237,485						$	250,542
Interest-rate spread						2.93	%						3.20	%
Net interest margin						3.01	%						3.27	%

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Loan balances (unaudited)

	June 30, 2009			March 31, 2009			Dec. 31, 2008			Sept. 30, 2008			June 30, 2008
(Dollars in thousands)
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages	$	2,875,415		$	3,170,908		$	3,049,706		$	3,542,416		$	3,547,997
Commercial		1,711,995			1,738,640			1,797,135			1,803,321			1,792,528
Equipment financing		998,258			1,016,718			1,037,077			1,006,238			1,002,533
Asset based lending		623,357			659,694			752,595			867,510			842,334
Commercial real estate		2,091,811			2,094,751			2,070,641			2,147,617			2,083,600
Residential development		143,965			155,544			161,533			217,564			230,897
Consumer		2,910,275			2,979,117			3,016,524			2,960,491			2,910,055
Total continuing		11,355,076			11,815,372			11,885,211			12,545,157			12,409,944
Allowances for loan loss		(264,159	)		(226,562	)		(191,426	)		(161,331	)		(151,997	)
Total continuing, net		11,090,917			11,588,810			11,693,785			12,383,826			12,257,947
Liquidating Portfolio:
NCLC (c)		6,540			13,174			18,735			25,409			46,103
Consumer		249,086			266,913			283,645			295,823			310,407
Total liquidating portfolio		255,626			280,087			302,380			321,232			356,510
Allowances for loan loss		(41,840	)		(44,367	)		(43,903	)		(27,838	)		(32,871	)
Total liquidating, net		213,786			235,720			258,477			293,394			323,639
Total Loan Balances (actuals)		11,610,702			12,095,459			12,187,591			12,866,389			12,766,454
Allowances for loan loss		(305,999	)		(270,929	)		(235,329	)		(189,169	)		(184,868	)
Loans (net)	$	11,304,703		$	11,824,530		$	11,952,262		$	12,677,220		$	12,581,586
Loan Balances (average):
Continuing Portfolio:
Residential mortgages	$	3,112,695		$	3,092,512		$	3,449,202		$	3,542,938		$	3,564,040
Commercial		1,750,996			1,784,062			1,811,527			1,796,598			1,778,444
Equipment finance		1,011,999			1,026,322			1,015,340			1,007,465			1,001,358
Asset based lending		652,197			701,263			842,148			844,518			836,934
Commercial real estate		2,090,615			2,083,861			2,182,228			2,120,589			2,016,430
Residential development		150,674			158,924			161,533			217,564			230,897
Consumer		2,951,691			3,012,178			2,989,393			2,924,446			2,890,852
Total continuing		11,720,867			11,859,122			12,451,371			12,454,118			12,318,955
Allowances for loan loss		(248,701	)		(204,619	)		(167,230	)		(162,420	)		(147,845	)
Total continuing, net		11,472,166			11,654,503			12,284,141			12,291,698			12,171,110
Liquidating Portfolio:
NCLC (c)		24,494			15,675			24,199			43,777			49,656
Consumer		258,001			276,219			293,964			307,503			318,173
Total liquidating portfolio		282,495			291,894			318,163			351,280			367,829
Allowances for loan loss		(41,840	)		(44,367	)		(43,903	)		(27,838	)		(32,871	)
Total liquidating, net		240,655			247,527			274,260			323,442			334,958
Total Loan Balances (average)		12,003,362			12,151,016			12,769,534			12,805,398			12,686,784
Allowances for loan loss		(290,541	)		(248,986	)		(211,133	)		(190,258	)		(180,716	)
Loans (net)	$	11,712,821		$	11,902,030		$	12,558,401		$	12,615,140		$	12,506,068

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Nonperforming Assets (unaudited)

(Dollars in thousands)	June 30, 2009		March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008
Nonperforming loans:
Continuing Portfolio:
Residential mortgages	$	60,622	$	55,962	$	48,731	$	39,445	$	27,083
Performing non-accrual residential mortgages		32,975		10,849		3,771		—		—
Commercial		68,979		65,073		32,915		33,842		36,808
Equipment financing		35,675		16,056		13,138		7,462		6,718
Asset based lending		24,456		29,353		17,072		17,239		18,980
Commercial real estate		16,707		12,604		8,032		8,971		9,710
Residential development		46,808		54,147		48,628		71,065		48,130
Consumer		33,838		37,518		29,627		23,668		20,745
Performing non-accrual consumer		4,512		2,652		312		—		—
Nonperforming loans - continuing portfolio		324,572		284,214		202,226		201,692		168,174
Liquidating Portfolio:
NCLC (c)		5,628		12,259		12,821		14,227		28,235
Performing non-accrual NCLC		—		—		581		—		—
Consumer		19,521		19,510		16,757		10,994		10,651
Performing non-accrual consumer		674		185		181		—		—
Nonperforming loans - liquidating portfolio		25,823		31,954		30,340		25,221		38,886
Total nonperforming loans	$	350,395	$	316,168	$	232,566	$	226,913	$	207,060
Other real estate owned and repossessed assets:
Continuing Portfolio:
Residential mortgages	$	1,808	$	1,399	$	1,863	$	3,071	$	3,792
Commercial		9,340		10,361		9,782		1,026		1,113
Equipment financing		10,322		13,352		13,086		12,261		5,663
Asset based lending		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Residential development		—		—		—		—		—
Consumer		5,571		369		1,244		2,835		4,173
Total continuing		27,041		25,481		25,975		19,193		14,741
Liquidating Portfolio:
NCLC (c)		5,836		5,563		3,519		2,943		279
Consumer		931		1,139		1,129		626		2,020
Nonperforming loans - liquidating portfolio		6,767		6,702		4,648		3,569		2,299
Total other real estate owned and repossessed assets	$	33,808	$	32,183	$	30,623	$	22,762	$	17,040
Total nonperforming assets	$	384,203	$	348,351	$	263,189	$	249,675	$	224,100

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Past Due Loans (unaudited)

(Dollars in thousands)	June 30, 2009		March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Residential mortgages	$	39,955	$	45,798	$	45,909	$	40,209	$	27,534
Commercial		8,460		8,033		15,817		7,196		8,337
Equipment financing		13,464		16,404		9,860		8,102		9,414
Asset based lending		—		145		3,676		—		—
Commercial real estate		19,053		8,373		7,158		18,241		2,756
Residential development		3,210		1,004		2,096		5,832		2,485
Consumer		28,354		33,092		33,848		23,279		18,137
Past Due 30-89 days - continuing portfolio		112,496		112,849		118,364		102,859		68,663
Liquidating Portfolio:
NCLC (c)		1		1		4,487		3,046		2,487
Consumer		9,880		12,244		15,621		15,370		8,063
Past Due 30-89 days - liquidating portfolio		9,881		12,245		20,108		18,416		10,550
Accruing loans past due 90 days or more:
Residential mortgages		—		—		—		—		—
Commercial		445		573		459		534		1,380
Equipment financing		—		—		—		—		—
Asset based lending		—		—		—		—		—
Commercial real estate		475		—		450		174		—
Residential development		—		150		201		—		—
Consumer		—		—		—		—		—
Accruing loans past due 90 days or more:		920		723		1,110		708		1,380
Total past due loans	$	123,297	$	125,817	$	139,582	$	121,983	$	80,593

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

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

	For the Three Months Ended
(Dollars in thousands)	June 30, 2009			March 31, 2009		Dec. 31, 2008		Sept. 30, 2008			June 30, 2008
Beginning balance	$	281,729		$	245,829	$	198,669	$	194,368		$	189,808
Provision		85,000			66,000		100,000		45,500			25,000
Charge-offs continuing portfolio:
Residential mortgages		4,793			2,964		3,778		1,623			1,036
Commercial		8,983			5,388		5,416		6,593			1,154
Equipment financing		6,324			2,236		1,222		998			672
Asset based lending		5,297			2,981		176		7,245			1,623
Commercial real estate		—			—		53		—			1,504
Residential development		2,350			48		30,158		161			3,711
Consumer		10,242			6,541		3,887		4,643			2,784
Charge-offs continuing portfolio		37,989			20,158		44,690		21,263			12,484
Charge-offs liquidating portfolio:
NCLC (c)		3,387			2,086		777		14,025			4,203
Consumer		10,825			9,911		8,779		6,767			5,450
Charge-offs liquidating portfolio		14,212			11,997		9,556		20,792			9,653
Total charge-offs		52,201			32,155		54,246		42,055			22,137
Recoveries continuing portfolio:
Residential mortgages		115			24		85		5			162
Commercial		230			378		225		89			269
Equipment financing		203			287		177		303			238
Asset based lending		—			5		129		61			375
Commercial real estate		—			—		—		—			—
Residential development		9			—		—		—			—
Consumer		702			766		180		256			246
Recoveries continuing portfolio		1,259			1,460		796		714			1,290
Recoveries liquidating portfolio:
NCLC (c)		825			528		595		151			406
Consumer		187			67		15		(9	)		1
Recoveries liquidating portfolio		1,012			595		610		142			407
Total recoveries		2,271			2,055		1,406		856			1,697
Total net charge-offs		49,930			30,100		52,840		41,199			20,440
Change in unfunded commitments		(762	)		—		—		—			—
Ending balance	$	316,037		$	281,729	$	245,829	$	198,669		$	194,368
Components:
Allowance for loan losses	$	305,999		$	270,929	$	235,329	$	189,169		$	184,868
Reserve for unfunded credit commitments		10,038			10,800		10,500		9,500			9,500
Allowance for credit losses	$	316,037		$	281,729	$	245,829	$	198,669		$	194,368

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Asset Quality Ratios

	For the Three Months Ended
(Dollars in thousands)	June 30, 2009		March 31, 2009		Dec. 31, 2008		Sept. 30, 2008		June 30, 2008
Total Portfolio
Allowance for loan losses / total loans	2.64	%	2.24	%	1.93	%	1.47	%	1.45	%
Allowance for credit losses / total loans	2.72		2.33		2.02		1.54		1.52
Net charge-offs / average loans (annualized)	1.66		0.99		1.66		1.29		0.64
Nonperforming loans / total loans	3.02		2.61		1.91		1.76		1.62
Nonperforming assets / total loans plus OREO	3.30		2.87		2.15		1.94		1.75
Allowance for credit losses / nonperforming loans	90.19		89.11		105.70		87.55		93.87
Continuing Portfolio
Allowance for loan losses / total loans	2.33	%	1.92	%	1.61	%	1.29	%	1.22	%
Allowance for credit losses / total loans	2.41		2.01		1.70		1.36		1.3
Net charge-offs / average loans (annualized)	1.25		0.63		1.41		0.66		0.36
Nonperforming loans / total loans	2.86		2.41		1.70		1.61		1.36
Nonperforming assets / total loans plus OREO	3.09		2.62		1.92		1.76		1.47
Allowance for credit losses / nonperforming loans	84.48		83.52		102.35		86.09		96.48
Liquidating Portfolio
NCLC (C)
Allowance for loan losses / total loans	23.00	%	30.86	%	30.01	%	22.85	%	19.65	%
Net charge-offs / average loans (annualized)	41.84		39.76		2.99		126.76		30.59
Nonperforming loans / total loans	86.06		93.05		71.53		55.99		61.24
Allowance for loan losses / nonperforming loans	26.72		33.16		41.96		40.80		32.09
Consumer
Allowance for loan losses / total loans	16.19	%	15.10	%	13.50	%	7.45	%	7.53	%
Net charge-offs / average loans (annualized)	16.49		14.26		11.93		8.81		6.75
Nonperforming loans / total loans	8.11		7.38		5.97		3.72		3.37
Allowance for loan losses / nonperforming loans	199.73		204.63		225.99		200.50		223.63

See Selected Financial Highlights for footnotes.