Exhibit 99.1

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

WEBSTER REPORTS FOURTH QUARTER RESULTS

WATERBURY, Conn., January 22, 2010 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced a consolidated net loss of $13.7 million for the quarter ended December 31, 2009. The net loss available to common shareholders of $54.4 million for the quarter ended December 31, 2009 included $34 million of imputed dividends related to the Warburg Pincus investment and convertible preferred exchanges completed during the quarter, which did not have any effect on capital levels at year end.

Key points for the quarter:

Increased core pre-tax, pre-provision earnings of $57.4 million compared to $56.1 million for the third quarter.

Increased tangible common equity by $71 million with completion of the Warburg Pincus investment; also bolstered common equity by exchanging common stock for $27 million par amount of outstanding Webster convertible preferred stock.

Reduced levels of provision for loan losses and net charge-offs of $67.0 million and $51.8 million, respectively, compared to $85.0 million and $64.6 million in the third quarter.

Improved net interest margin of 3.26 percent compared to 3.18 percent for the third quarter of 2009.

Improved core to total deposit ratio of 71 percent compared to 69 percent at September 30, 2009, reflecting core deposit growth of $394 million.

Improved loan-to-deposit ratio of 81 percent compared to 83 percent at September 30, 2009.

Webster Chairman and Chief Executive Officer James C. Smith said, “The fourth quarter was marked by many significant improvements in Webster’s operating fundamentals, especially as seen in stabilizing and improved credit metrics, including lower delinquencies, a reduced provision for losses, lower net charge-offs, and higher loan loss coverage. Other positive trends include improved earnings before loan loss provision, expanded net interest margin, and continuing strong core deposit growth. While our results do not yet reflect a return to profitability, our solid performance and improving trends are encouraging. Our recently announced lending and hiring initiatives reflect our positive outlook for continuing improvement throughout 2010.”

Net interest income

• Net interest margin improved to 3.26 percent in the fourth quarter with the increase reflecting an 18 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 $16.35 billion, up from $16.25 billion last quarter.

Provision for credit losses

• $62.2 million of the $67.0 million provision for credit losses recorded in the fourth quarter was related to the Company’s continuing portfolios, and $4.8 million of the provision for credit losses was related to the discontinued liquidating portfolio.

• Net charge-offs were $51.8 million in the fourth quarter compared to $64.6 million for the quarter ended September 30, 2009; $43.2 million was related to the continuing portfolios compared to $51.4 million in the third quarter and $8.5 million was related to the discontinued liquidating portfolio compared to $13.2 million in the third quarter.

Noninterest income

• Noninterest income includes a net gain on sale of investment securities of $53,000 compared to a net loss of $4.7 million in the third quarter. Fourth quarter results also include a net gain of $3.6 million on the fair value accounting mark on warrants issued in connection with the Warburg Pincus investment.

Noninterest expenses

• Noninterest expenses, inclusive of severance and other one-time costs, increased $5.1 million from the third quarter. The fourth quarter included $6.5 million in severance and other one-time costs while the third quarter included $4.2 million in such charges. Included in the $6.5 million in severance and other costs were $3.7 million in facilities related charges, reflecting actions towards full consolidation of back office facilities, and $1.1 million in fraud related expense. Foreclosed and repossessed asset write-downs of $2.7 million and $2.2 million are also included in noninterest expenses in the respective periods.

Income taxes

• Due to the pre-tax loss, the effective tax rate for the fourth quarter was not meaningful. The Company recorded a $1.6 million tax benefit in the quarter on the $15.3 million pre-tax loss applicable to continuing operations in the period.

Investment securities

• Total investment securities were $4.8 billion at December 31, 2009 compared to $4.6 billion at September 30, 2009. The carrying value of the available for sale portfolio included $3 million in net unrealized losses compared to net unrealized losses of $4 million at September 30, 2009, while the carrying value of the held to maturity portfolio does not reflect $61 million in net unrealized gains compared to net unrealized gains of $103 million at September 30, 2009.

Loans

• Total loans were $11.0 billion at December 31, 2009 compared to $11.3 billion at September 30, 2009. In the fourth quarter, residential mortgage loans increased by $60.6 million while consumer, commercial and commercial real estate loans declined by $74.2 million, $239.2 million and $32.8 million, respectively. The decline in commercial loans reflects reductions of $72.2 million in asset based loans and $53.7 million in equipment finance loans, as well as the sale of the insurance premium finance subsidiary in the quarter which had $93.5 million in loans at September 30, 2009.

• The discontinued liquidating portfolio of indirect home equity and national construction loans, included in the consumer and residential loan portfolios, declined by $13.2 million from September 30, 2009 to $219.1 million and $4.8 million, respectively.

Asset quality

• Total nonperforming loans were $373.0 million or 3.38 percent of total loans at December 31, 2009 compared to $361.1 million or 3.19 percent at September 30, 2009. The increase in nonperforming loans reflects a combined increase of $19.9 million in non-accrual commercial real estate, residential development and asset based lending loans and a combined decrease of $8.0 million in all other loan categories.

• Past due loans for the continuing portfolios decreased to $90.5 million at December 31, 2009 compared to $114.9 million at September 30, 2009. Past due loans for the liquidating portfolio decreased to $10.4 million at December 31, 2009 compared to $12.6 million at September 30, 2009.

Deposits and borrowings

• Total deposits were $13.6 billion at December 31, 2009 compared to the same amount at September 30, 2009. The core categories of demand, NOW, money market and savings increased by a combined amount of $393.8 million while certificates of deposit and brokered deposits decreased by $317.9 million and $44.5 million, respectively.

• Total borrowings were $2.0 billion, a decline of $134.9 million from $2.1 billion at September 30, 2009 primarily from maturities of FHLB advances of $118.6 million in the quarter. Borrowings represented 11.2 percent of total assets at December 31, 2009 compared to 11.9 percent at September 30, 2009.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.7 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 501 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, 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 fourth quarter earnings announcement will be held today, Friday, January 22, at 9:00 a.m. EST 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; (2) government intervention in the U.S. financial system; (3) changes in the level of non-performing assets and charge-offs; (4) inflation, interest rate, securities market and monetary fluctuations, and management’s estimates and projections of such fluctuations; (5) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (6) changes in management’s estimate of the adequacy of the allowance for loan losses; (7) the risks associated with the continued diversification of assets and adverse changes to credit quality; (8) technological changes; (9) the Company’s ability to increase market share and control expenses; (10) changes in laws, regulations and policies (including tax, banking, securities and insurance laws, regulations and policies); (11) changes in applicable accounting policies and practice; (12) legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (13) the Company’s success at managing the risks involved in the foregoing items; and (14) the other factors that are described in the Company’s Annual Report on Form 10-K 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.

WEBSTER FINANCIAL CORPORATION

Selected Financial Highlights (unaudited)

	At or for the Three Months Ended December 31,						At or for the Twelve Months Ended December 31,
(In thousands, except per share data)	2009			2008			2009			2008
Net loss and performance ratios (annualized):
Net loss	$	(13,696	)	$	(300,286	)	$	(75,632	)	$	(320,970	)
Net loss per diluted common share		(0.84	)		(5.91	)		(2.14	)		(6.42	)
Return on average shareholders’ equity		(2.81	)%		(61.69	)%		(4.02	)%		(17.55	)%
Return on average tangible equity		(3.91	)		(99.44	)		(5.68	)		(29.68	)
Return on average assets		(0.31	)		(6.87	)		(0.43	)		(1.85	)
Loss from continuing operations and performance ratios (annualized):
Loss from continuing operations attributable to Webster Financial Corporation	$	(13,685	)	$	(300,294	)	$	(75,934	)	$	(317,897	)
Net loss from continuing operations per diluted common share		(0.84	)		(5.91	)		(2.15	)		(6.36	)
Return on average shareholders’ equity		(2.81	)%		(61.70	)%		(4.04	)%		(17.39	)%
Return on average tangible equity		(3.91	)		(99.45	)		(5.71	)		(29.40	)
Return on average assets		(0.31	)		(6.87	)		(0.43	)		(1.84	)
Noninterest income as a percentage of total revenue		29.06			(213.84	)		27.45			(5.87	)
Efficiency ratio (a)		64.88			58.96			65.92			62.38
Asset quality:
Allowance for loan losses	$	341,184		$	235,329		$	341,184		$	235,329
Nonperforming assets		401,965			263,189			401,965			263,189
Allowance for loan losses / total loans		3.09	%		1.93	%		3.09	%		1.93	%
Net charge-offs / average loans (annualized)		1.85			1.66			1.68			1.09
Nonperforming loans / total loans		3.38			1.91			3.38			1.91
Nonperforming assets / total loans plus OREO		3.63			2.15			3.63			2.15
Allowance for loan losses / nonperforming loans		91.48			101.19			91.48			101.19
Other ratios (annualized):
Tangible capital ratio		8.10	%		7.70	%		8.10	%		7.70	%
Tangible common equity ratio		5.64			4.08			5.64			4.08
Total-risk based capital (d)		15.34			15.20			15.34			15.20
Tier 1 common equity / risk weighted assets (d)		7.83			5.66			7.83			5.66
Shareholders’ equity / total assets		10.98			10.66			10.98			10.66
Interest-rate spread		3.20			3.11			3.07			3.21
Net interest margin		3.26			3.20			3.13			3.28
Share related:
Book value per common share	$	19.60		$	23.78		$	19.60		$	23.78
Tangible book value per common share		12.57			13.35			12.57			13.35
Common stock closing price		11.87			13.78			11.87			13.78
Dividends declared per common share		0.01			0.30			0.04			1.20
Common shares issued and outstanding		77,893			52,884			77,893			52,884
Basic shares (average)		71,445			52,031			60,943			52,020
Diluted shares (average)		72,747			52,031			63,917			52,020

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)	December 31, 2009			September 30, 2009			December 31, 2008
Assets:
Cash and due from depository institutions	$	171,184		$	173,437		$	259,208
Short-term investments		390,310			360,618			22,154
Investment securities:
Trading, at fair value		—			—			77
Available for sale, at fair value		2,126,043			1,912,283			1,188,705
Held-to-maturity		2,658,869			2,702,881			2,522,511
Total securities		4,784,912			4,615,164			3,711,293
Loans held for sale		12,528			37,005			24,524
Loans:
Residential mortgages		2,903,637			2,843,066			3,068,441
Consumer		3,020,714			3,094,927			3,300,169
Commercial		2,930,239			3,169,425			3,586,807
Commercial real estate		2,182,120			2,214,941			2,232,174
Total loans		11,036,710			11,322,359			12,187,591
Allowance for loan losses		(341,184	)		(326,406	)		(235,329	)
Loans, net		10,695,526			10,995,953			11,952,262
Accrued interest receivable		65,041			70,007			74,307
Prepaid FDIC premiums		79,241			—			—
Federal Home Loan Bank and Federal Reserve Bank stock		140,874			140,874			134,874
Premises and equipment, net		178,422			179,353			185,928
Goodwill and other intangible assets, net		556,752			559,592			563,926
Cash surrender value of life insurance		289,486			286,806			279,807
Deferred tax assets, net		121,733			139,458			189,337
Prepaid expenses and other assets		253,188			250,019			185,917
Total Assets	$	17,739,197		$	17,808,286		$	17,583,537
Liabilities and Equity:
Deposits:
Demand deposits	$	1,664,958		$	1,571,980		$	1,493,295
NOW accounts		2,912,510			2,544,260			1,802,250
Money market deposit accounts		1,991,423			2,209,145			1,356,361
Savings accounts		3,146,603			2,996,318			2,361,169
Certificates of deposit		3,830,865			4,148,759			4,677,615
Brokered deposits		85,768			130,268			194,200
Total deposits		13,632,127			13,600,730			11,884,890
Securities sold under agreements to repurchase and other short-term debt		856,846			872,030			1,570,971
Federal Home Loan Bank advances		544,651			663,210			1,335,996
Long-term debt		588,419			589,600			687,797
Accrued expenses and other liabilities		159,120			185,342			220,145
Total liabilities		15,781,163			15,910,912			15,699,799
Shareholders’ equity		1,948,393			1,887,734			1,874,119
Noncontrolling interests		9,641			9,640			9,619
Total equity		1,958,034			1,897,374			1,883,738
Total Liabilities and Equity	$	17,739,197		$	17,808,286		$	17,583,537

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Consolidated Statements of Operations (unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
(In thousands, except per share data)	2009			2008			2009			2008
Interest income:
Loans including fees	$	127,069		$	168,200		$	536,635		$	710,621
Investment securities		54,029			40,398			206,630			157,055
Loans held for sale		364			51			2,077			1,597
Total interest income		181,462			208,649			745,342			869,273
Interest expense:
Deposits		35,937			57,154			180,804			250,182
Borrowings		15,044			25,427			69,900			113,300
Total interest expense		50,981			82,581			250,704			363,482
Net interest income		130,481			126,068			494,638			505,791
Provision for credit losses		67,000			100,000			303,000			186,300
Net interest income after provision for credit losses		63,481			26,068			191,638			319,491
Non-interest income:
Deposit service fees		30,634			30,018			119,421			120,132
Loan related fees		6,501			7,147			24,890			29,067
Wealth and investment services		6,009			6,480			24,000			28,140
Mortgage banking activities		1,456			336			6,901			1,230
Increase in cash surrender value of life insurance		2,680			2,631			10,629			10,441
Net gain (loss) on sale of investment securities		53			(4,233	)		(13,810	)		(6,094	)
Other income		2,649			1,315			7,766			6,684
		49,982			43,694			179,797			189,600
Gain on the exchange of trust preferreds for common stock		—			—			24,336			—
Gain on early extinguishment of subordinated notes		—			—			5,993			—
Loss on write-down of investments to fair value		(77	)		(129,593	)		(28,477	)		(219,277	)
Visa share transactions		—			—			1,907			1,625
Warrants - fair value adjustment		3,552			—			3,552			—
Total non-interest income		53,457			(85,899	)		187,108			(28,052	)
Non-interest expenses:
Compensation and benefits		61,644			52,078			237,074			239,701
Occupancy		14,061			13,406			55,522			53,043
Furniture and equipment		15,299			15,469			60,926			61,155
Marketing		4,365			2,895			14,469			13,956
Outside services		4,209			4,101			15,015			15,758
Intangible amortization		1,409			1,463			5,743			5,939
Foreclosed and repossessed asset expenses		2,192			1,799			7,060			4,643
Foreclosed and repossessed asset write-downs		2,745			1,615			11,099			4,300
FDIC deposit insurance assessment		5,565			3,468			22,056			4,698
Other expenses		14,193			13,379			58,175			57,442
		125,682			109,673			487,139			460,635
Severance and other costs		6,533			5,905			12,255			16,158
Impairment of goodwill		—			188,866			—			198,379
FDIC special assessment		—			—			8,000			—
Total non-interest expenses		132,215			304,444			507,394			675,172
Loss from continuing operations before income taxes		(15,277	)		(364,275	)		(128,648	)		(383,733	)
Income tax benefit		(1,593	)		(63,980	)		(52,736	)		(65,840	)
Loss from continuing operations		(13,684	)		(300,295	)		(75,912	)		(317,893	)
(Loss) income from discontinued operations, net of tax		(11	)		8			302			(3,073	)
Consolidated net loss	$	(13,695	)	$	(300,287	)	$	(75,610	)	$	(320,966	)
Less: Net income (loss) attributable to noncontrolling interests		1			(1	)		22			4
Net loss attributable to Webster Financial Corporation		(13,696	)		(300,286	)		(75,632	)		(320,970	)
Preferred stock dividends, accretion and extinguishment gain		(40,704	)		(7,308	)		(9,620	)		(12,947	)
Net loss available to common shareholders	$	(54,400	)	$	(307,594	)	$	(85,252	)	$	(333,917	)
Diluted shares (average)		72,747			52,031			63,917			52,020
Net loss per common share:
Basic
Loss from continuing operations	$	(0.76	)	$	(5.91	)	$	(1.41	)	$	(6.36	)
Net loss		(0.76	)		(5.91	)		(1.40	)		(6.42	)
Diluted
Loss from continuing operations		(0.84	)		(5.91	)		(2.15	)		(6.36	)
Net loss		(0.84	)		(5.91	)		(2.14	)		(6.42	)

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)	Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			March 31, 2009			Dec. 31, 2008
Interest income:
Loans including fees	$	127,069		$	131,266		$	137,533		$	140,767		$	168,200
Investment securities		54,029			52,975			48,799			50,827			40,398
Loans held for sale		364			716			833			164			51
Total interest income		181,462			184,957			187,165			191,758			208,649
Interest expense:
Deposits		35,937			41,977			49,982			52,908			57,154
Borrowings		15,044			16,308			17,895			20,653			25,427
Total interest expense		50,981			58,285			67,877			73,561			82,581
Net interest income		130,481			126,672			119,288			118,197			126,068
Provision for credit losses		67,000			85,000			85,000			66,000			100,000
Net interest income after provision for credit losses		63,481			41,672			34,288			52,197			26,068
Noninterest income:
Deposit service fees		30,634			30,844			29,984			27,959			30,018
Loan related fees		6,501			5,557			6,350			6,482			7,147
Wealth and investment services		6,009			6,160			6,081			5,750			6,480
Mortgage banking activities		1,456			1,406			3,433			606			336
Increase in cash surrender value of life insurance		2,680			2,692			2,665			2,592			2,631
Net gain (loss) on sale of investment securities		53			(4,728	)		(13,593	)		4,458			(4,233	)
Other income		2,649			3,517			1,325			275			1,315
		49,982			45,448			36,245			48,122			43,694
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		(77	)		(1,290	)		(27,110	)		—			(129,593	)
Warrants - fair value adjustment		3,552			—			—			—			—
Visa share transactions		—			—			1,907			—			—
Total noninterest income		53,457			44,158			35,378			54,115			(85,899	)
Noninterest expenses:
Compensation and benefits		61,644			59,772			59,189			56,469			52,078
Occupancy		14,061			13,572			13,594			14,295			13,406
Furniture and equipment		15,299			15,199			15,288			15,140			15,469
Marketing		4,365			3,802			3,196			3,106			2,895
Outside services		4,209			3,628			3,394			3,784			4,101
Intangible amortization		1,409			1,421			1,450			1,463			1,463
Foreclosed and repossessed asset expenses		2,192			1,733			1,799			1,179			1,799
Foreclosed and repossessed asset write-downs		2,745			2,232			2,829			3,450			1,615
FDIC deposit insurance assessment		5,565			5,942			5,959			4,590			3,468
Other expenses		14,193			15,616			14,066			14,302			13,379
		125,682			122,917			120,764			117,778			109,673
Severance and other costs		6,533			4,169			1,313			240			5,905
FDIC special assessment		—			—			8,000			—			—
Goodwill impairment		—			—			—			—			188,866
Total noninterest expenses		132,215			127,086			130,077			118,018			304,444
Loss from continuing operations before income taxes		(15,277	)		(41,256	)		(60,411	)		(11,706	)		(364,275	)
Income tax benefit		(1,593	)		(22,014	)		(28,536	)		(593	)		(63,980	)
Loss from continuing operations		(13,684	)		(19,242	)		(31,875	)		(11,113	)		(300,295	)
(Loss) income from discontinued operations, net of tax		(11	)		—			313			—			8
Consolidated net loss	$	(13,695	)	$	(19,242	)	$	(31,562	)	$	(11,113	)	$	(300,287	)
Less: Net income (loss) attributable to noncontrolling interests		1			8			—			13			(1	)
Net loss attributable to Webster Financial Corporation		(13,696	)	$	(19,250	)	$	(31,562	)	$	(11,126	)	$	(300,286	)
Preferred stock dividends, accretion and extinguishment gain		(40,704	)		(6,850	)		48,361			(10,430	)		(7,308	)
Net (loss) income available to common shareholders	$	(54,400	)	$	(26,100	)	$	16,799		$	(21,556	)	$	(307,594	)
Diluted shares (average)		72,386			66,281			53,398			52,102			52,031
Net income (loss) per common share:
Basic
(Loss) income from continuing operations	$	(0.76	)	$	(0.39	)	$	0.31		$	(0.41	)	$	(5.91	)
Net (loss) income		(0.76	)		(0.39	)		0.31			(0.41	)		(5.91	)
Diluted
Loss from continuing operations		(0.84	)		(0.39	)		(0.66	)		(0.41	)		(5.91	)
Net loss		(0.84	)		(0.39	)		(0.66	)		(0.41	)		(5.91	)

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Interest-Rate Spreads (unaudited)

	Three Months Ended
	December 31, 2009		September 30, 2009		June 30, 2009		March 31, 2009		December 31, 2008
Interest-rate spread
Yield on interest-earning assets	4.50	%	4.60	%	4.72	%	4.82	%	5.24	%
Cost of interest-bearing liabilities	1.30		1.48		1.76		1.91		2.13
Interest-rate spread	3.20	%	3.12	%	2.96	%	2.91	%	3.11	%
Net interest margin	3.26	%	3.18	%	3.04	%	2.99	%	3.20	%

Consolidated Average Balances, Yields and Rates Paid (unaudited)

Three Months Ended December 31,	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	$	11,182,063	$	127,069		4.50	%	$	12,769,534	$	168,200		5.22	%
Investment securities (b)		4,673,090		56,607		4.86			3,000,195		42,918		5.42
Loans held for sale		41,250		364		3.53			4,093		51		4.99
Federal Home Loan and Federal Reserve Bank stock		140,874		716		2.02			134,874		1,196		3.53
Short-term investments		317,183		211		0.26			11,399		40		1.38
Total interest-earning assets		16,354,460		184,967		4.50			15,920,095		212,405		5.24
Noninterest-earning assets		1,331,093							1,570,208
Total assets	$	17,685,553						$	17,490,303
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,639,058	$	—		—	%	$	1,510,066	$	—		—	%
Savings, NOW and money market deposit accounts		7,749,872		14,429		0.74			5,550,224		17,849		1.28
Time deposits		4,110,743		21,508		2.08			4,823,332		39,305		3.24
Total deposits		13,499,673		35,937		1.06			11,883,622		57,154		1.91
Securities sold under agreements to repurchase and other short-term debt		884,867		4,449		1.97			1,446,049		6,345		1.72
Federal Home Loan Bank advances		594,919		5,259		3.46			1,384,706		8,630		2.44
Long-term debt		589,548		5,336		3.62			665,382		10,452		6.28
Total borrowings		2,069,334		15,044		2.87			3,496,137		25,427		2.87
Total interest-bearing liabilities		15,569,007		50,981		1.30			15,379,759		82,581		2.13
Noninterest-bearing liabilities		158,592							154,048
Total liabilities		15,727,599							15,533,807
Noncontrolling interests		9,638							9,577
Shareholders’ equity		1,948,316							1,946,919
Total liabilities and shareholders’ equity	$	17,685,553						$	17,490,303
Tax-equivalent net interest income				133,986							129,824
Less: tax-equivalent adjustment				(3,505	)						(3,756	)
Net interest income			$	130,481						$	126,068
Interest-rate spread						3.20	%						3.11	%
Net interest margin						3.26	%						3.20	%

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Consolidated Average Balances, Yields and Rates Paid (unaudited)

Twelve Months Ended December 31,	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	$	11,697,078	$	536,635		4.59	%	$	12,700,933	$	710,621		5.60	%
Investment securities (b)		4,150,969		217,961		5.18			2,895,616		166,312		5.56
Loans held for sale		52,131		2,077		3.98			27,366		1,597		5.83
Federal Home Loan and Federal Reserve Bank stock		137,931		2,685		1.95			127,423		5,501		4.32
Short-term investments		156,553		471		0.30			6,422		146		2.27
Total interest-earning assets		16,194,662		759,829		4.68			15,757,760		884,177		5.58
Noninterest-earning assets		1,395,821							1,546,699
Total assets	$	17,590,483						$	17,304,459
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand deposits	$	1,578,356	$	—		—	%	$	1,487,661	$	—		—	%
Savings, NOW and money market deposit accounts		6,977,196		60,971		0.87			5,776,660		80,994		1.40
Time deposits		4,525,770		119,833		2.65			4,764,386		169,188		3.55
Total deposits		13,081,322		180,804		1.38			12,028,707		250,182		2.08
Securities sold under agreements to repurchase and other short-term debt		1,124,118		19,275		1.71			1,359,318		34,643		2.55
Federal Home Loan Bank advances		697,711		25,286		3.62			1,269,098		39,236		3.09
Long-term debt		628,145		25,339		4.03			660,146		39,421		5.97
Total borrowings		2,449,974		69,900		2.85			3,288,562		113,300		3.45
Total interest-bearing liabilities		15,531,296		250,704		1.61			15,317,269		363,482		2.37
Noninterest-bearing liabilities		168,970							149,236
Total liabilities		15,700,266							15,466,505
Noncontrolling interests		9,631							9,577
Shareholders’ equity		1,880,586							1,828,377
Total liabilities and shareholders’ equity	$	17,590,483						$	17,304,459
				509,125							520,695
Less: tax-equivalent adjustment				(14,487	)						(14,904	)
Net interest income			$	494,638						$	505,791
Interest-rate spread						3.07	%						3.21	%
Net interest margin						3.13	%						3.28	%

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Loan balances (unaudited)

(Dollars in thousands)	Dec. 31, 2009			Sep. 30, 2009			June 30, 2009			March 31, 2009			Dec. 31, 2008
Loan Balances (actuals):
Continuing Portfolio:
Residential mortgages	$	2,898,820		$	2,837,240		$	2,875,415		$	3,170,908		$	3,049,706
Consumer		2,801,589			2,863,622			2,910,275			2,979,117			3,016,524
Commercial		1,505,956			1,619,284			1,711,995			1,738,640			1,797,135
Equipment financing		897,802			951,500			998,258			1,016,718			1,037,077
Asset based lending		526,481			598,641			623,357			659,694			752,595
Commercial real estate		2,067,862			2,086,298			2,091,811			2,094,751			2,070,641
Residential development		114,258			128,643			143,965			155,544			161,533
Total continuing		10,812,768			11,085,228			11,355,076			11,815,372			11,885,211
Allowance for loan losses		(287,784	)		(269,306	)		(264,159	)		(226,562	)		(191,426	)
Total continuing, net		10,524,984			10,815,922			11,090,917			11,588,810			11,693,785
Liquidating Portfolio:
NCLC (c)		4,817			5,826			6,540			13,174			18,735
Consumer		219,125			231,305			249,086			266,913			283,645
Total liquidating portfolio		223,942			237,131			255,626			280,087			302,380
Allowance for loan losses		(53,400	)		(57,100	)		(41,840	)		(44,367	)		(43,903	)
Total liquidating, net		170,542			180,031			213,786			235,720			258,477
Total Loan Balances (actuals)		11,036,710			11,322,359			11,610,702			12,095,459			12,187,591
Allowance for loan losses		(341,184	)		(326,406	)		(305,999	)		(270,929	)		(235,329	)
Loans (net)	$	10,695,526		$	10,995,953		$	11,304,703		$	11,824,530		$	11,952,262
Loan Balances (average):
Continuing Portfolio:
Residential mortgages	$	2,860,204		$	2,831,440		$	3,127,099		$	3,092,512		$	3,449,202
Consumer		2,834,923			2,884,543			2,951,691			3,012,178			2,989,393
Commercial		1,548,470			1,675,289			1,750,996			1,784,062			1,811,527
Equipment finance		930,050			975,552			1,011,999			1,026,322			1,015,340
Asset based lending		577,330			622,472			652,197			701,263			842,148
Commercial real estate		2,075,754			2,089,643			2,090,615			2,083,861			2,182,228
Residential development		125,320			139,040			150,674			158,924			161,533
Total continuing		10,952,051			11,217,979			11,735,271			11,859,122			12,451,371
Allowance for loan losses		(277,870	)		(260,472	)		(248,701	)		(204,619	)		(167,230	)
Total continuing, net		10,674,181			10,957,507			11,486,570			11,654,503			12,284,141
Liquidating Portfolio:
NCLC (c)		5,661			6,414			10,090			15,675			24,199
Consumer		224,351			240,675			258,001			276,219			293,964
Total liquidating portfolio		230,012			247,089			268,091			291,894			318,163
Allowance for loan losses		(53,400	)		(57,100	)		(41,840	)		(44,367	)		(43,903	)
Total liquidating, net		176,612			189,989			226,251			247,527			274,260
Total Loan Balances (average)		11,182,063			11,465,068			12,003,362			12,151,016			12,769,534
Allowance for loan losses		(331,270	)		(317,572	)		(290,541	)		(248,986	)		(211,133	)
Loans (net)	$	10,850,793		$	11,147,496		$	11,712,821		$	11,902,030		$	12,558,401

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Nonperforming Assets (unaudited)

(Dollars in thousands)	Dec. 31, 2009		Sept. 30, 2009		June 30, 2009		March 31, 2009		Dec. 31, 2008
Nonperforming loans:
Continuing Portfolio:
Residential mortgages	$	70,311	$	66,180	$	59,775	$	55,962	$	48,731
Performing non-accrual residential mortgages		39,256		43,581		33,822		10,849		3,771
Commercial		56,632		61,746		68,979		65,073		32,915
Equipment financing		30,152		31,784		35,675		16,056		13,138
Asset based lending		13,982		5,064		24,456		29,353		17,072
Commercial real estate		56,144		47,644		16,707		12,604		8,032
Residential development		47,264		44,821		46,808		54,147		48,628
Consumer		31,299		33,837		33,816		37,518		29,627
Performing non-accrual consumer		7,456		6,000		4,534		2,652		312
Nonperforming loans - continuing portfolio		352,496		340,657		324,572		284,214		202,226
Liquidating Portfolio:
NCLC (c)		3,408		4,089		5,628		12,259		12,821
Performing non-accrual NCLC		825		825		—		—		581
Consumer		13,915		14,030		19,521		19,510		16,757
Performing non-accrual consumer		2,333		1,475		674		185		181
Nonperforming loans - liquidating portfolio		20,481		20,419		25,823		31,954		30,340
Total nonperforming loans	$	372,977	$	361,076	$	350,395	$	316,168	$	232,566
Other real estate owned and repossessed assets:
Continuing Portfolio:
Residential mortgages	$	4,131	$	2,872	$	1,808	$	1,399	$	1,863
Commercial		11,621		13,225		9,340		10,361		9,782
Equipment financing		6,522		8,479		10,322		13,352		13,086
Asset based lending		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Residential development		—		—		—		—		—
Consumer		5,017		4,833		5,571		369		1,244
Total continuing		27,291		29,409		27,041		25,481		25,975
Liquidating Portfolio:
NCLC (c)		1,401		3,108		5,836		5,563		3,519
Consumer		296		—		931		1,139		1,129
Nonperforming loans - liquidating portfolio		1,697		3,108		6,767		6,702		4,648
Total other real estate owned and repossessed assets	$	28,988	$	32,517	$	33,808	$	32,183	$	30,623
Total nonperforming assets	$	401,965	$	393,593	$	384,203	$	348,351	$	263,189

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Five Quarter Past Due Loans (unaudited)

(Dollars in thousands)	Dec. 31, 2009		Sept. 30, 2009		June 30, 2009		March 31, 2009		Dec. 31, 2008
Past due 30-89 days:
Accruing loans:
Continuing Portfolio:
Residential mortgages	$	36,086	$	38,927	$	39,955	$	45,798	$	45,909
Commercial		7,870		9,735		8,460		8,033		15,817
Equipment financing		10,642		10,407		13,464		16,404		9,860
Asset based lending		—		—		—		145		3,676
Commercial real estate		8,184		23,872		19,053		8,373		7,158
Residential development		551		776		3,210		1,004		2,096
Consumer		27,214		31,178		28,354		33,092		33,848
Past Due 30-89 days - continuing portfolio		90,547		114,895		112,496		112,849		118,364
Liquidating Portfolio:
NCLC (c)		582		910		1		1		4,487
Consumer		9,804		11,680		9,880		12,244		15,621
Past Due 30-89 days - liquidating portfolio		10,386		12,590		9,881		12,245		20,108
Accruing loans past due 90 days or more:
Residential mortgages		—		—		—		—		—
Commercial		50		2,685		445		573		459
Equipment financing		—		—		—		—		—
Asset based lending		—		—		—		—		—
Commercial real estate		236		206		475		—		450
Residential development		—		—		—		150		201
Consumer		—		—		—		—		—
Accruing loans past due 90 days or more:		286		2,891		920		723		1,110
Total past due loans	$	101,219	$	130,376	$	123,297	$	125,817	$	139,582

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)	Dec. 31, 2009			Sept. 30, 2009		June 30, 2009			March 31, 2009		Dec. 31, 2008
Beginning balance	$	336,511		$	316,037	$	281,729		$	245,829	$	198,669
Provision		67,000			85,000		85,000			66,000		100,000
Allowance for sold loans		(469	)		—		—			—		—
Charge-offs continuing portfolio:
Residential mortgages		2,858			2,721		4,793			2,964		3,778
Commercial		6,094			13,729		8,983			5,388		5,416
Equipment financing		13,302			7,939		6,324			2,236		1,222
Asset based lending		1,099			15,926		5,297			2,981		176
Commercial real estate		4,605			—		—			—		53
Residential development		6,600			3,019		2,350			48		30,158
Consumer		10,723			10,237		10,242			6,541		3,887
Charge-offs continuing portfolio		45,281			53,571		37,989			20,158		44,690
Charge-offs liquidating portfolio:
NCLC (c)		1,068			135		3,387			2,086		777
Consumer		8,232			13,256		10,825			9,911		8,779
Charge-offs liquidating portfolio		9,300			13,391		14,212			11,997		9,556
Total charge-offs		54,581			66,962		52,201			32,155		54,246
Recoveries continuing portfolio:
Residential mortgages		82			277		115			24		85
Commercial		476			435		230			378		225
Equipment financing		898			821		203			287		177
Asset based lending		55			—		—			5		129
Commercial real estate		—			—		—			—		—
Residential development		—			—		9			—		—
Consumer		535			642		702			766		180
Recoveries continuing portfolio		2,046			2,175		1,259			1,460		796
Recoveries liquidating portfolio:
NCLC (c)		614			62		825			528		595
Consumer		168			132		187			67		15
Recoveries liquidating portfolio		782			194		1,012			595		610
Total recoveries		2,828			2,369		2,271			2,055		1,406
Total net charge-offs		51,753			64,593		49,930			30,100		52,840
Change in unfunded commitments		—			67		(762	)		—		—
Ending balance	$	351,289		$	336,511	$	316,037		$	281,729	$	245,829
Components:
Allowance for loan losses	$	341,184		$	326,406	$	305,999		$	270,929	$	235,329
Reserve for unfunded credit commitments		10,105			10,105		10,038			10,800		10,500
Allowance for credit losses	$	351,289		$	336,511	$	316,037		$	281,729	$	245,829

See Selected Financial Highlights for footnotes.

WEBSTER FINANCIAL CORPORATION

Asset Quality Ratios

	For the Three Months Ended
(Dollars in thousands)	Dec. 31, 2009		Sept. 30, 2009		June 30, 2009		March 31, 2009		Dec. 31, 2008
Total Portfolio
Allowance for loan losses / total loans	3.09	%	2.88	%	2.64	%	2.24	%	1.93	%
Net charge-offs / average loans (annualized)	1.85		2.25		1.66		0.99		1.66
Nonperforming loans / total loans	3.38		3.19		3.02		2.61		1.91
Nonperforming assets / total loans plus OREO	3.63		3.47		3.30		2.87		2.15
Allowance for loan losses / nonperforming loans	91.48		90.40		87.33		85.69		101.19
Continuing Portfolio
Allowance for loan losses / total loans	2.66	%	2.43	%	2.33	%	1.92	%	1.61	%
Net charge-offs / average loans (annualized)	1.58		1.83		1.25		0.63		1.41
Nonperforming loans / total loans	3.26		3.07		2.86		2.41		1.70
Nonperforming assets / total loans plus OREO	3.50		3.33		3.09		2.62		1.92
Allowance for loan losses / nonperforming loans	81.64		79.05		81.39		79.72		97.05
Liquidating Portfolio
NCLC (C)
Allowance for loan losses / total loans	18.68	%	17.16	%	23.00	%	30.86	%	30.01	%
Net charge-offs / average loans (annualized)	32.08		4.55		101.57		39.76		2.99
Nonperforming loans / total loans	87.88		84.35		86.06		93.05		71.53
Allowance for loan losses / nonperforming loans	21.26		20.35		26.72		33.16		41.96
Consumer
Allowance for loan losses / total loans	23.96	%	24.25	%	16.19	%	15.10	%	13.50	%
Net charge-offs / average loans (annualized)	14.38		21.81		16.49		14.26		11.93
Nonperforming loans / total loans	7.41		6.70		8.11		7.38		5.97
Allowance for loan losses / nonperforming loans	323.12		361.82		199.73		204.63		225.99

See Selected Financial Highlights for footnotes.