Webster Reports 2013 Third Quarter Earnings

                 Webster Reports 2013 Third Quarter Earnings

Diluted Earnings per Share of $0.49 for the Quarter

PR Newswire

WATERBURY, Conn., Oct. 11, 2013

WATERBURY, Conn., Oct. 11, 2013 /PRNewswire/ --Webster Financial Corporation
(NYSE: WBS), the holding company for Webster Bank, N.A., today announced net
income available to common shareholders of $44.7 million, or $0.49 per diluted
share, for the quarter ended September 30, 2013 compared to $44.4 million, or
$0.48 per diluted share, for the quarter ended September 30, 2012.

Highlights for the quarter or at September 30 include:

  Combined growth in commercial and commercial real estate loans of $828.4
  million, or 14.4 percent, from a year ago. Overall loan growth of $750.3
  million, or 6.4 percent, from a year ago.

  Deposit growth of $586.1 million, or 4.1 percent, from a year ago.

  Positive operating leverage of 3.9 percent compared to a year ago as core
  revenue grew by 1.8 percent and core expenses declined by 2.1 percent. The
  efficiency ratio improved by 218 basis points to 60.07 percent from a year
  ago.

  Significant reduction in mortgage banking pipeline resulting in a $5.9
  million decline in mortgage banking activities from a year ago.

  Continued improvement in asset quality as evidenced by a reduction of 33.5
  percent in commercial classified loans and a 28.4 percent reduction in past
  due loans from a year ago. Nonperforming assets increased 10.8 percent from
  a year ago and otherwise would have decreased by 15.2 percent, had $43.5
  million of residential and consumer loans not been required to be classified
  as nonaccrual under regulatory guidance that took effect in the fourth
  quarter of 2012.

  Return on average assets and return on average tangible common equity were
  0.93 percent and 12.43 percent, respectively, in the quarter compared to
  0.92 percent and 13.03 percent, respectively, in the year ago quarter.

"Robust commercial loan growth, favorable asset quality trends, and continued
tight expense control combined to produce solid operating results for the
quarter despite the sharp slowdown in residential mortgage refinance
activity," said James C. Smith, chairman and chief executive officer. "Notable
milestones in the quarter included record net interest income once again and
stellar performance in our health savings account business whose footings
crossed $2 billion. Looking ahead, our strong commercial loan pipeline bodes
well for the region's economic recovery and future performance."

Net interest income (compared to prior year)

  oNet interest income was $150.0 million compared to $144.9 million.
  oNet interest margin was 3.23 percent compared to 3.28 percent. The yield
    on interest-earning assets declined 20 basis points, and the cost of funds
    declined 14 basis points.
  oAverage interest-earning assets totaled $18.8 billion and grew by $764
    million, or 4.2 percent.
  oAverage loans grew by $694.1 million, or 6.0 percent.

Provision for loan losses

  oThe Company recorded a provision for loan losses of $8.5 million in the
    third quarter of 2013 compared to $8.5 million in the second quarter of
    2013 and $5.0 million in the year ago period.
  oNet charge-offs were $14.4 million in the quarter compared to $12.9
    million in the second quarter of 2013 and $17.7 million in the year ago
    period. The ratio of net charge-offs to average loans on an annualized
    basis was 0.47 percent in the quarter compared to 0.43 percent in the
    second quarter of 2013 and 0.61 percent a year ago.
  oThe allowance for loan losses represented 1.26 percent of total loans at
    September 30, 2013 compared to 1.33 percent at June 30, 2013 and 1.59
    percent at September 30, 2012. The allowance for loan losses represented
    88.7 percent of nonperforming loans at September 30, 2013 compared to 87.6
    percent at June 30, 2013 and 114.4 percent at September 30, 2012.

Noninterest income (compared to prior year)

  oTotal noninterest income was $46.3 million compared to $48.5 million, a
    decrease of $2.2 million; there were $0.3 million of securities gains in
    the quarter compared to $0.8 million a year ago.
  oExcluding securities gains, a $1.7 million year over year decrease in core
    noninterest income reflects a decrease of $5.9 million in mortgage banking
    activities, which was offset by increases of $1.8 million in loan related
    fees, $0.9 million in wealth and investment services, $0.8 million from an
    increase in the cash surrender value of life insurance policies, $0.4
    million in deposit service fees, and $0.2 million in other income.

Noninterest expense (compared to prior year)

  oTotal noninterest expense of $122.3 million compared to $123.9 million, a
    decrease of $1.6 million. Included in noninterest expense in the third
    quarter of 2013 are $1.5 million of net one-time costs that amounted to
    $0.01 per diluted share on an after-tax basis. These costs consisted
    primarily of contract termination and severance expenses. There were $0.6
    million of net one-time costs in the year ago quarter.
  oTotal noninterest expense excluding one-time costs decreased $2.5 million.
    The decrease reflects declines of $1.3 million in compensation and
    benefits, $0.9 million in marketing, $0.5 million in professional and
    outside services, and $0.5 million in occupancy expenses. These decreases
    were partially offset by an increase of $1.6 million in other expenses.
  oForeclosed and repossessed asset expenses were $0.4 million compared to
    $0.1 million, while net gains on foreclosed and repossessed assets were
    $0.5 million compared to $0.4 million.

Webster Chief Financial Officer Glenn MacInnes noted, "The net interest margin
has been stable for three consecutive quarters in a challenging interest rate
environment. Coupled with ongoing expense discipline, we have again achieved
positive operating leverage and an improvement in our efficiency ratio of more
than 200 basis points compared to a year ago."

Income taxes

  oThe Company recorded $18.2 million of income tax expense in the third
    quarter of 2013. The effective tax rate was 27.7 percent compared to 30.2
    percent a year ago and reflects a $2.1 million net tax benefit specific to
    the quarter compared to $0.3 million a year ago.
  oThe $2.1 million net benefit in the current period included a $1.7 million
    correction applicable to prior periods identified in the quarter and $0.5
    million applicable to a reduction of the Company's estimated annual
    effective tax rate for 2013, from 31.0 to 30.75 percent, primarily as a
    result of an increase in tax credits during the year.

Investment securities

  oTotal investment securities were $6.4 billion at September 30, 2013 and
    $6.3 billion a year ago. The carrying value of the available for sale
    portfolio included $12.4 million in net unrealized gains compared to net
    unrealized gains of $68.9 million a year ago, while the carrying value of
    the held to maturity portfolio does not reflect $42.6 million in net
    unrealized gains compared to net unrealized gains of $179.2 million a year
    ago.

Loans

  oTotal loans were $12.5 billion at September 30, 2013 compared to $12.2
    billion at June 30, 2013 and $11.7 billion at September 30, 2012. In the
    quarter, commercial, commercial real estate, and residential mortgage
    loans increased by $103.3 million, $117.0 million, and $36.7 million,
    respectively. Consumer loans decreased by $25.4 million.
  oCompared to a year ago, commercial, commercial real estate, and
    residential mortgage loans increased by $472.4 million, $356.0 million,
    and $57.6 million, respectively. Consumer loans decreased by $135.7
    million.
  oLoan originations for portfolio in the third quarter were $1,144 million
    compared to $1,204 million in the second quarter and $836 million a year
    ago. In addition, $157 million of residential loans were originated for
    sale in the quarter compared to $206 million in the second quarter and
    $208 million a year ago.

Asset quality

  oPast due loans were $48.3 million at September 30, 2013 compared to $49.8
    million at June 30, 2013 and $67.4 million at September 30, 2012. Compared
    to June 30, past due commercial non-mortgage and commercial real estate
    loans decreased $7.9 million and $1.4 million, respectively. Past due
    residential mortgages increased $4.7 million, and loans past due 90 days
    and still accruing increased $3.3 million. Compared to September 30,
    2012, all loan categories contributed to the decline except loans past due
    90 days or more and still accruing, which increased $4.6 million.
  oPast due loans represented 0.39 percent of total loans at September 30,
    2013, 0.41 percent at June 30, 2013, and 0.57 percent at September 30,
    2012. Past due loans for the continuing portfolios were $45.6 million at
    September 30 compared to $47.9 million at June 30 and $62.5 million a year
    ago. Past due loans for the liquidating portfolio were $2.7 million at
    September 30 compared to $1.9 million at June 30 and $4.9 million a year
    ago.
  oTotal nonperforming loans decreased to $177.6 million, or 1.42 percent of
    total loans, at September 30, 2013 compared to $186.7 million, or 1.52
    percent, at June 30, 2013 and $162.6 million, or 1.39 percent, at
    September 30, 2012. Included in nonperforming loans at September 30 and
    June 30 are $43.5 million and $42.9 million, respectively, of residential
    and consumer loans classified as nonaccrual under regulatory guidance that
    took effect in the fourth quarter of 2012. Total paying nonperforming
    loans at September 30 were $55.8 million compared to $61.9 million at June
    30 and $16.8 million a year ago, with the increase consisting primarily of
    the loans classified as such due to the regulatory guidance.

Deposits and borrowings

  oTotal deposits were $15.0 billion at September 30, 2013 compared to $14.8
    billion at June 30, 2013 and $14.4 billion at September 30, 2012. Compared
    to June 30, increases of $304.2 million in money market deposits and $12.4
    million in demand deposits were offset by declines of $67.1 million in
    certificates of deposit, $55.3 million in savings, $15.9 million in
    brokered certificates of deposit, and $14.4 million in interest-bearing
    checking. Compared to a year ago, increases of $490.1 million in
    interest-bearing checking, $182.2 in demand deposits, and $231.0 million
    in money market deposits were offset by a decline of $383.6 million in
    certificates of deposit.
  oCore to total deposits were 85.0 percent compared to 84.2 percent at June
    30, and 81.8 percent a year ago. Loans to deposits were 83.2 percent
    compared to 82.6 percent at June 30, and 81.4 percent a year ago.
  oTotal borrowings were $3.2 billion at September 30 compared to $3.1
    billion at both June 30 and a year ago.

Capital

  oThe tangible equity and tangible common equity ratios were 8.13 percent
    and 7.37 percent, respectively, at September 30, 2013 compared to 7.52
    percent and 7.37 percent, respectively, a year ago. The Tier 1 common
    equity to risk-weighted assets ratio was 11.33 percent at September 30
    compared to 11.10 percent a year ago.
  oBook value and tangible book value per common share were $22.34 and
    $16.40, respectively, at September 30, 2013 compared to $22.24 and $16.08,
    respectively, a year ago.
  oReturn on average tangible common shareholders' equity and return on
    average common shareholders' equity were 12.43 percent and 8.93 percent,
    respectively, in the third quarter compared to 13.03 percent and 9.19
    percent, respectively, a year ago.

Webster Financial Corporation is the holding company for Webster Bank,
National Association. With $21 billion in assets, Webster provides business
and consumer banking, mortgage, financial planning, trust and investment
services through 169 banking centers, 308 ATMs, telephone banking, mobile
banking, and the Internet. Webster Bank owns the asset-based lending firm
Webster Business Credit Corporation; the equipment finance firm Webster
Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which
provides health savings account trustee and administrative services. Webster
Bank is a member of the FDIC and an equal housing lender. For more information
about Webster, including past press releases and the latest annual report,
visit the Webster website at www.websterbank.com.

Conference Call

A conference call covering Webster's 2013 third quarter earnings announcement
will be held today, Friday, October 11, 2013 at 9:00 a.m. (Eastern) and may be
heard through Webster's Investor Relations website at www.wbst.com, or in
listen-only mode by calling 1-877-407-8289 or 201-689-8341 internationally.
The call will be archived on the website and available for future retrieval.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking
statements can be identified by words such as "believes," "anticipates,"
"expects," "intends," "targeted," "continue," "remain," "will," "should,"
"may," "plans," "estimates," and similar references to future periods;
however, such words are not the exclusive means of identifying such
statements. Examples of forward-looking statements include, but are not
limited to: (i)projections of revenues, expenses, income or loss, earnings or
loss per share, and other financial items; (ii)statements of plans,
objectives, and expectations of Webster or its management or Board of
Directors; (iii)statements of future economic performance; and
(iv)statements of assumptions underlying such statements. Forward-looking
statements are based on Webster's current expectations and assumptions
regarding its business, the economy, and other future conditions. Because
forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks, and changes in circumstances that are difficult to
predict. Webster's actual results may differ materially from those
contemplated by the forward-looking statements, which are neither statements
of historical fact nor guarantees or assurances of future performance. Factors
that could cause actual results to differ from those discussed in the
forward-looking statements include, but are not limited to: (1)local,
regional, national, and international economic conditions and the impact they
may have on us and our customers and our assessment of that impact; (2)
volatility and disruption in national and international financial markets; (3)
government intervention in the U.S. financial system; (4) changes in the level
of non-performing assets and charge-offs; (5) changes in estimates of future
reserve requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; (6) adverse conditions in the
securities markets that lead to impairment in the value of securities in our
investment portfolio; (7) inflation, interest rate, securities market, and
monetary fluctuations; (8) the timely development and acceptance of new
products and services and perceived overall value of these products and
services by customers; (9) changes in consumer spending, borrowings, and
savings habits; (10) technological changes; (11) the ability to increase
market share and control expenses; (12) changes in the competitive environment
among banks, financial holding companies, and other financial service
providers; (13) the effect of changes in laws and regulations (including laws
and regulations concerning taxes, banking, securities, and insurance) with
which we and our subsidiaries must comply, including those under the
Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III
update to the Basel Accords that is under development; (14) the effect of
changes in accounting policies and practices, as may be adopted by the
regulatory agencies, as well as the Public Company Accounting Oversight Board,
the Financial Accounting Standards Board, and other accounting standard
setters; (15) the costs and effects of legal and regulatory developments
including the resolution of legal proceedings or regulatory or other
governmental inquiries and the results of regulatory examinations or reviews;
and (16) our success at managing the risks involved in the foregoing items and
(17)the other factors that are described in the Company's Annual Report on
Form 10-Kand Quarterly Reports on Form 10-Q under the heading "Risk Factors."
Any forward-looking statement made by the Company in this release speaks only
as of the date on which it is made. Factors or events that could cause the
Company's actual results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company undertakes no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except as may be
required by law.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release
contains certain non-GAAP financial measures. A reconciliation of net income
and other performance ratios, as adjusted, is included in the accompanying
selected financial highlights table.

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



WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
                                 At or for the Three Months Ended
(In thousands,      September    June 30,     March 31,   December   September
except per share    30,          2013         2013        31,        30,
data)               2013                                  2012       2012
Income and
performance ratios
(annualized):
Net income
attributable to     $ 47,305     $ 46,373     $ 42,117    $ 48,526   $ 44,993
Webster Financial
Corp.
Net income
available to common 44,666       43,734       39,231      47,911     44,378
shareholders
Net income per
diluted common      0.49         0.48         0.44        0.52       0.48
share
Return on average   0.93 %       0.92 %       0.84 %      0.98 %     0.92 %
assets
Return on average
tangible common     12.43        12.26        11.28       13.66      13.03
shareholders'
equity
Return on average
common              8.93         8.78         8.01        9.74       9.19
shareholders'
equity
Noninterest income
as a percentage of  23.57        26.22        24.88       26.57      25.07
total revenue
Efficiency ratio    60.07        59.98        62.16       59.68      62.25
Asset quality:
Allowance for loan  $ 157,545    $ 163,442    $ 167,840   $ 177,129  $ 186,089
losses
Nonperforming       185,566      190,539      203,355     198,181    167,524
assets
Allowance for loan
losses / total      1.26 %       1.33 %       1.40 %      1.47 %     1.59 %
loans
Net charge-offs /
average loans       0.47         0.43         0.56        0.56       0.61
(annualized)
Nonperforming loans 1.42         1.52         1.66        1.62       1.39
/ total loans
Nonperforming
assets / total      1.49         1.56         1.69        1.65       1.43
loans plus OREO
Allowance for loan
losses /            88.73        87.55        84.42       90.93      114.44
nonperforming loans
Other ratios
(annualized):
Tangible equity     8.13 %       8.03 %       8.12 %      7.92 %     7.52 %
ratio
Tangible common     7.37         7.27         7.35        7.15       7.37
equity ratio
Tier 1 risk-based   12.99        12.93        12.75       12.47      11.90
capital ratio ^(a)
Total risk-based    14.19        14.19        14.01       13.73      13.16
capital ^(a)
Tier 1 common
equity /            11.33        11.24        11.06       10.78      11.10
risk-weighted
assets ^(a)
Shareholders'
equity / total      10.52        10.47        10.58       10.39      10.05
assets
Net interest margin 3.23         3.23         3.23        3.27       3.28
Share and equity
related:
Common equity       $ 2,016,010  $ 1,975,826  $           $          $
                                              1,976,482   1,941,881  1,954,739
Book value per      22.34        21.88        21.90       22.75      22.24
common share
Tangible book value 16.40        15.93        15.93       16.42      16.08
per common share
Common stock        25.53        25.68        24.26       20.55      23.70
closing price
Dividends declared  0.15         0.15         0.10        0.10       0.10
per common share
Common shares
issued and          90,245       90,289       90,237      85,341     87,899
outstanding
Basic shares        89,759       89,645       85,501      86,949     87,394
(weighted average)
Diluted shares      90,423       90,087       89,662      91,315     91,884
(weighted average)
(a) The ratios presented are projected for September 30, 2013 and actual for
the remaining periods presented.

WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
(In thousands)                      September 30,  June 30,      September 30,
                                    2013           2013          2012
Assets:
Cash and due from banks             $ 266,747      $ 179,068     $ 164,556
Interest-bearing deposits           18,192         32,601        79,763
Investment securities:
 Available for sale, at fair value 3,193,772      3,257,360     3,120,354
 Held to maturity                  3,205,999      3,129,864     3,142,160
 Total securities                  6,399,771      6,387,224     6,262,514
Loans held for sale                 40,193         81,161        91,207
Loans:
 Commercial                        3,611,226      3,507,927     3,138,807
 Commercial real estate            2,983,863      2,866,814     2,627,893
 Residential mortgages             3,350,577      3,313,833     3,292,948
 Consumer                          2,532,299      2,557,719     2,668,004
 Total loans                       12,477,965     12,246,293    11,727,652
Allowance for loan losses           (157,545)      (163,442)     (186,089)
 Loans, net                        12,320,420     12,082,851    11,541,563
Prepaid FDIC premiums               -              -             21,673
Federal Home Loan Bank and Federal  158,878        158,878       142,595
Reserve Bank stock
Premises and equipment, net         121,250        122,704       135,394
Goodwill and other intangible       536,431        537,673       541,399
assets, net
Cash surrender value of life        427,113        423,598       414,797
insurance policies
Deferred tax asset, net             72,180         73,166        74,098
Accrued interest receivable and     248,379        250,314       260,103
other assets
Total Assets                        $ 20,609,554   $ 20,329,238  $ 19,729,662
Liabilities and Equity:
Deposits:
 Demand                            $ 2,968,727    $ 2,956,320   $ 2,786,525
 Interest-bearing checking         3,374,120      3,388,505     2,883,216
 Money market                      2,571,712      2,267,463     2,340,717
 Savings                           3,827,345      3,882,691     3,776,280
 Certificates of deposit           2,124,073      2,191,188     2,507,647
 Brokered certificates of deposit  133,554        149,408       119,052
 Total deposits                    14,999,531     14,835,575    14,413,437
Securities sold under agreements to 1,372,290      1,213,349     1,310,015
repurchase and other borrowings
Federal Home Loan Bank advances     1,602,469      1,627,517     1,452,660
Long-term debt                      229,146        229,928       335,678
Accrued expenses and other          238,459        295,394       234,194
liabilities
 Total liabilities                 18,441,895     18,201,763    17,745,984
Preferred stock                     151,649        151,649       28,939
Common shareholders' equity         2,016,010      1,975,826     1,954,739
 Webster Financial Corporation     2,167,659      2,127,475     1,983,678
shareholders' equity
Total Liabilities and Equity        $ 20,609,554   $ 20,329,238  $ 19,729,662

WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
                            Three Months Ended September  Nine Months Ended
                            30,                           September 30,
(In thousands, except per   2013             2012         2013       2012
share data)
Interest income:
Interest and fees on loans  $ 123,664        $ 121,367    $ 366,445  $ 363,487
and leases
Interest and dividends on   47,516           50,194       143,723    155,659
securities
Loans held for sale         573              655          1,761      1,810
 Total interest income   171,753          172,216      511,929    520,956
Interest expense:
Deposits                    10,908           14,543       35,782     45,701
Borrowings                  10,858           12,783       33,303     42,619
 Total interest expense  21,766           27,326       69,085     88,320
 Net interest income     149,987          144,890      442,844    432,636
Provision for loan losses   8,500            5,000        24,500     14,000
 Net interest income
after provision for loan    141,487          139,890      418,344    418,636
losses
Noninterest income:
Deposit service fees        25,170           24,728       73,786     71,810
Loan related fees           5,840            4,039        15,930     12,473
Wealth and investment       8,095            7,186        24,781     21,656
services
Mortgage banking activities 665              6,515        13,584     14,522
Increase in cash surrender
value of life insurance     3,516            2,680        10,348     7,758
policies
Net gain on investment      269              810          708        3,347
securities
Other income                2,702            2,521        7,649      8,252
 Total noninterest       46,257           48,479       146,786    139,818
income
Noninterest expense:
Compensation and benefits   64,862           66,126       196,680    198,332
Occupancy                   11,994           12,462       36,710     37,922
Technology and equipment    14,895           15,118       45,743     46,721
expense
Marketing                   3,649            4,529        12,277     13,723
Professional and outside    2,254            2,790        5,931      8,869
services
Intangible assets           1,242            1,384        3,726      4,178
amortization
Foreclosed and repossessed  432              118          938        761
asset expenses
Foreclosed and repossessed  (532)            (409)        (1,066)    (1,743)
asset gains
Loan workout expenses       1,296            1,693        4,846      5,718
Deposit insurance           5,300            5,675        15,998     17,107
Other expenses              15,407           13,805       45,582     42,238
                            120,799          123,291      367,365    373,826
Debt prepayment penalties   -                391          43         4,040
Severance, contract, and    1,482            205          4,012      1,013
other
 Total noninterest       122,281          123,887      371,420    378,879
expense
Income before income taxes  65,463           64,482       193,710    179,575
Income tax expense          18,158           19,489       57,915     54,404
 Net income attributable 47,305           44,993       135,795    125,171
to Webster Financial Corp.
Preferred stock dividends   (2,639)          (615)        (8,164)    (1,845)
 Net income available to $ 44,666         $ 44,378     $ 127,631  $ 123,326
common shareholders
 Diluted shares          90,423           91,884       90,193     91,754
(average)
Net income per common share
available to common
shareholders:
 Basic                   $ 0.50           $ 0.51       $ 1.44     $ 1.41
 Diluted                 0.49             0.48         1.41       1.34

WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
                         Three Months Ended
(In thousands, except    September  June 30,   March 31,  December   September
per share data)          30,        2013       2013       31,        30,
                         2013                             2012       2012
Interest income:
Interest and fees on     $ 123,664  $ 121,720  $ 121,061  $ 122,179  $ 121,367
loans and leases
Interest and dividends   47,516     47,822     48,385     49,752     50,194
on securities
Loans held for sale      573        551        637        615        655
 Total interest       171,753    170,093    170,083    172,546    172,216
income
Interest expense:
Deposits                 10,908     12,024     12,850     13,885     14,543
Borrowings               10,858     11,008     11,437     12,389     12,783
 Total interest       21,766     23,032     24,287     26,274     27,326
expense
 Net interest income  149,987    147,061    145,796    146,272    144,890
Provision for loan       8,500      8,500      7,500      7,500      5,000
losses
 Net interest income
after provision for loan 141,487    138,561    138,296    138,772    139,890
losses
Noninterest income:
Deposit service fees     25,170     24,622     23,994     24,823     24,728
Loan related fees        5,840      5,505      4,585      5,570      4,039
Wealth and investment    8,095      8,920      7,766      7,859      7,186
services
Mortgage banking         665        5,888      7,031      8,515      6,515
activities
Increase in cash
surrender value of life  3,516      3,448      3,384      3,496      2,680
insurance policies
Net gain on investment   269        333        106        -          810
securities
Other income             2,702      3,535      1,412      2,677      2,521
 Total noninterest    46,257     52,251     48,278     52,940     48,479
income
Noninterest expense:
Compensation and         64,862     65,768     66,050     65,769     66,126
benefits
Occupancy                11,994     11,837     12,879     12,209     12,462
Technology and equipment 14,895     15,495     15,353     15,489     15,118
expense
Marketing                3,649      3,817      4,811      3,104      4,529
Professional and outside 2,254      1,527      2,150      2,479      2,790
services
Intangible assets        1,242      1,242      1,242      1,242      1,384
amortization
Foreclosed and
repossessed asset        432        331        175        267        118
expenses
Foreclosed and           (532)      (250)      (284)      (383)      (409)
repossessed asset gains
Loan workout expenses    1,296      1,576      1,974      2,338      1,693
Deposit insurance        5,300      5,524      5,174      5,642      5,675
Other expenses           15,407     15,800     14,375     13,934     13,805
                         120,799    122,667    123,899    122,090    123,291
Debt prepayment          -          -          43         -          391
penalties
Severance, contract, and 1,482      937        1,593      835        205
other
 Total noninterest    122,281    123,604    125,535    122,925    123,887
expense
Income before income     65,463     67,208     61,039     68,787     64,482
taxes
Income tax expense       18,158     20,835     18,922     20,261     19,489
 Net income
attributable to Webster  47,305     46,373     42,117     48,526     44,993
Financial Corp.
Preferred stock          (2,639)    (2,639)    (2,886)    (615)      (615)
dividends
 Net income available $ 44,666   $ 43,734   $ 39,231   $ 47,911   $ 44,378
to common shareholders
 Diluted shares       90,423     90,087     89,662     91,315     91,884
(average)
Net income per common
share available to
common shareholders:
 Basic                $ 0.50     $ 0.49     $ 0.46     $ 0.55     $ 0.51
 Diluted              0.49       0.48       0.44       0.52       0.48

WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields, and Rates Paid (unaudited)
                    Three Months Ended September 30,
                                2013                              2012
(Dollars in         Average               Fully tax-  Average               Fully tax-
thousands)          balance     Interest  equivalent  balance     Interest  equivalent
                                          yield/rate                        yield/rate
Assets:

Interest-earning
assets:
 Loans           $           $         3.97 %      $           $         4.14 %
                    12,302,467  123,664               11,608,334  121,367
 Investment      6,293,453   49,854    3.17        6,145,414   53,010    3.48
securities ^(a)
 Loans held for  65,207      573       3.52        82,006      655       3.19
sale
 Federal Home
Loan and Federal    158,878     863       2.16        142,595     879       2.45
Reserve Bank stock

Interest-bearing    14,039      10        0.28        91,502      45        0.19
deposits
 Total
interest-earning    18,834,044  174,964   3.68        18,069,851  175,956   3.88
assets

Noninterest-earning 1,507,532                         1,420,460
assets
 Total assets    $                                 $
                    20,341,576                        19,490,311
Liabilities and
Shareholders'
Equity:
 Interest-bearing
liabilities:
Deposits:
Demand              $           $      -%          $           $      -%
                    2,999,991     -                2,726,790     -
Savings, interest
checking, and money 9,690,140   4,580     0.19        8,935,878   5,137     0.23
market
Certificates of     2,286,380   6,328     1.10        2,677,939   9,406     1.40
deposit
Total deposits      14,976,511  10,908    0.29        14,340,607  14,543    0.40
 Securities sold
under agreements to 1,293,074   5,283     1.60        1,171,787   5,594     1.87
repurchase and
other borrowings
 Federal Home    1,506,120   3,753     0.98        1,433,037   3,942     1.08
Loan Bank advances
  Long-term debt  229,525     1,822     3.18        361,468     3,247     3.59
 Total           3,028,719   10,858    1.41        2,966,292   12,783    1.70
borrowings
 Total
interest-bearing    18,005,230  21,766    0.48        17,306,899  27,326    0.62
liabilities
 
Noninterest-bearing 184,679                           222,929
liabilities
 Total           18,189,909                        17,529,828
liabilities
 Preferred stock 151,649                           28,939
 Common
shareholders'       2,000,018                         1,931,544
equity
 Webster
Financial Corp.     2,151,667                         1,960,483
shareholders'
equity
 Total           $                                 $
liabilities and     20,341,576                        19,490,311
equity
 Tax-equivalent              153,198                           148,630
net interest income
 Less:
tax-equivalent                  (3,211)                           (3,740)
adjustment
 Net interest                $                                 $
income                          149,987                           144,890
 Net interest                          3.23 %                            3.28 %
margin
(a) For purposes of the yield computation, unrealized gains (losses) on
securities available for sale are excluded from the average balance.

WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Yields, and Rates Paid (unaudited)
                    Nine Months Ended September 30,
                                2013                              2012
(Dollars in         Average               Fully tax-  Average               Fully tax-
thousands)          balance     Interest  equivalent  balance     Interest  equivalent
                                          yield/rate                        yield/rate
Assets:

Interest-earning
assets:
 Loans           $           $         4.01 %      $           $         4.21 %
                    12,130,553  366,445               11,435,430  363,487
 Investment      6,249,115   151,146   3.25        6,076,750   164,187   3.63
securities ^(a)
 Loans held for  75,066      1,761     3.13        67,411      1,810     3.58
sale
 Federal Home
Loan and Federal    158,016     2,575     2.18        142,912     2,636     2.46
Reserve Bank stock

Interest-bearing    24,027      73        0.40        78,852      107       0.18
deposits
 Total
interest-earning    18,636,777  522,000   3.73        17,801,355  532,227   3.98
assets

Noninterest-earning 1,520,026                         1,399,566
assets
 Total assets    $                                 $
                    20,156,803                        19,200,921
Liabilities and
Shareholders'
Equity:
 Interest-bearing
liabilities:
 Deposits:
Demand              $           $      -%          $           $      -%
                    2,905,863     -                 2,572,851     -
Savings, interest
checking, and money 9,475,275   13,708    0.19        8,747,401   16,216    0.25
market
Certificates of     2,393,999   22,074    1.23        2,739,829   29,485    1.44
deposit
Total deposits      14,775,137  35,782    0.32        14,060,081  45,701    0.43
 Securities sold
under agreements to 1,196,723   15,522    1.71        1,182,817   15,388    1.71
repurchase and
other borrowings
 Federal Home    1,624,937   12,299    1.00        1,380,393   12,932    1.23
Loan Bank advances
 Long-term debt  235,572     5,482     3.10        447,082     14,299    4.26
 Total           3,057,232   33,303    1.44        3,010,292   42,619    1.87
borrowings
 Total
interest-bearing    17,832,369  69,085    0.51        17,070,373  88,320    0.69
liabilities

Noninterest-bearing 189,001                           213,196
liabilities
 Total           18,021,370                        17,283,569
liabilities
 Preferred stock 151,649                           28,939
 Common
shareholders'       1,983,784                         1,888,413
equity
 Webster
Financial Corp.     2,135,433                         1,917,352
shareholders'
equity
 Total           $                                 $
liabilities and     20,156,803                        19,200,921
equity
Tax-equivalent net              452,915                           443,907
interest income
Less:
tax-equivalent                  (10,071)                          (11,271)
adjustment
 Net interest                $                                 $
income                          442,844                           432,636
 Net interest                          3.24 %                            3.32 %
margin
(a) For purposes of the yield computation, unrealized gains (losses) on
securities available for sale are excluded from the average balance.

WEBSTER FINANCIAL CORPORATION
Five Quarter Loan Balances (unaudited)
(Dollars in    September    June 30,     March 31,    December     September
thousands)     30,          2013         2013         31,          30,
               2013                                   2012         2012
Loan Balances
(actuals):
Continuing
Portfolio:
Commercial     $ 2,573,293  $ 2,515,288  $ 2,397,774  $ 2,399,500  $ 2,201,732
non-mortgage
Equipment      425,827      400,658      404,597      419,311      401,748
financing
Asset based    612,106      591,981      544,112      504,233      535,327
lending
Commercial     2,959,317    2,840,064    2,763,262    2,755,320    2,597,835
real estate
Residential    24,546       26,750       27,692       27,741       30,058
development
Residential    3,350,576    3,313,832    3,287,071    3,291,723    3,292,947
mortgages
Consumer       2,423,829    2,445,792    2,461,595    2,508,992    2,537,039
Total
continuing     12,369,494   12,134,365   11,886,103   11,906,820   11,596,686
portfolio
Allowance for  (139,734)    (142,402)    (146,020)    (152,495)    (156,214)
loan losses
Total
continuing     12,229,760   11,991,963   11,740,083   11,754,325   11,440,472
portfolio, net
Liquidating
Portfolio:
National
Construction   1            1            1            1            1
Lending Center
(NCLC)
Consumer       108,470      111,927      115,928      121,875      130,965
Total
liquidating    108,471      111,928      115,929      121,876      130,966
portfolio
Allowance for  (17,811)     (21,040)     (21,820)     (24,634)     (29,875)
loan losses
Total
liquidating    90,660       90,888       94,109       97,242       101,091
portfolio, net
Total Loan
Balances       12,477,965   12,246,293   12,002,032   12,028,696   11,727,652
(actuals)
Allowance for  (157,545)    (163,442)    (167,840)    (177,129)    (186,089)
loan losses
Loans, net     $            $            $            $            $
               12,320,420   12,082,851   11,834,192   11,851,567   11,541,563
Loan Balances
(average):
Continuing
Portfolio:
Commercial     $ 2,517,496  $ 2,422,156  $ 2,422,372  $ 2,238,557  $ 2,137,882
non-mortgage
Equipment      413,975      398,084      407,849      405,702      404,180
financing
Asset based    599,387      566,623      528,797      516,749      520,100
lending
Commercial     2,859,969    2,784,859    2,744,101    2,653,749    2,528,394
real estate
Residential    25,798       26,724       27,507       29,322       31,484
development
Residential    3,342,516    3,295,192    3,286,946    3,294,254    3,300,067
mortgages
Consumer       2,433,705    2,454,041    2,488,154    2,526,656    2,552,660
Total
continuing     12,192,846   11,947,679   11,905,726   11,664,989   11,474,767
portfolio
Allowance for  (145,849)    (148,037)    (153,710)    (161,239)    (167,469)
loan losses
Total
continuing     12,046,997   11,799,642   11,752,016   11,503,750   11,307,298
portfolio, net
Liquidating
Portfolio:
NCLC           1            1            1            1            1
Consumer       109,620      113,871      118,861      127,701      133,566
Total
liquidating    109,621      113,872      118,862      127,702      133,567
portfolio
Allowance for  (17,811)     (21,040)     (21,820)     (24,634)     (29,875)
loan losses
Total
liquidating    91,810       92,832       97,042       103,068      103,692
portfolio, net
Total Loan
Balances       12,302,467   12,061,551   12,024,588   11,792,691   11,608,334
(average)
Allowance for  (163,660)    (169,077)    (175,530)    (185,873)    (197,344)
loan losses
Loans, net     $            $            $            $            $
               12,138,807   11,892,474   11,849,058   11,606,818   11,410,990

WEBSTER FINANCIAL CORPORATION
Five Quarter Nonperforming Assets (unaudited)
(Dollars in        September    June 30,     March 31,   December    September
thousands)         30,          2013         2013        31,         30,
                   2013                                  2012^(a)    2012
Nonperforming
loans:
Continuing
Portfolio:
Commercial         $ 17,471     $ 17,285     $ 16,328    $ 17,538    $ 30,315
non-mortgage
Equipment          1,669        1,852        2,801       3,325       3,052
financing
Asset based        -            -            -           -           92
lending
Commercial real    15,899       16,591       24,484      15,683      15,768
estate
Residential        4,316        4,444        4,793       5,043       5,431
development
Residential        86,099       94,208       94,711      95,540      79,736
mortgages
Consumer           45,587       44,717       48,370      49,537      23,602
Nonperforming
loans - continuing 171,041      179,097      191,487     186,666     157,996
portfolio
Liquidating
Portfolio:
Consumer           6,517        7,594        7,323       8,133       4,616
Total
nonperforming      $ 177,558    $ 186,691    $ 198,810   $ 194,799   $ 162,612
loans
Other real estate
owned and
repossessed
assets:
Continuing
Portfolio:
Commercial         $ 3,728      $ 404        $ 404       $ 541       $ 917
Repossessed        193          505          995         182         1,840
equipment
Residential        3,601        2,485        2,629       2,369       1,705
Consumer           486          454          517         290         450
Total continuing   8,008        3,848        4,545       3,382       4,912
portfolio
Liquidating
Portfolio:
Total liquidating  -            -            -           -           -
portfolio
Total other real
estate owned and   $ 8,008      $ 3,848      $ 4,545     $ 3,382     $ 4,912
repossessed assets
Total
nonperforming      $ 185,566    $ 190,539    $ 203,355   $ 198,181   $ 167,524
assets
(a) The increases in the residential and consumer categories during 4Q12 are
related to an OCC requirement to reflect Chapter 7 bankruptcies as nonaccruing
loans.

WEBSTER FINANCIAL CORPORATION
Five Quarter Past Due Loans (unaudited)
                           September  June 30,  March 31,  December  September
(Dollars in thousands)     30,        2013      2013       31,       30,
                           2013                            2012      2012
Past due 30-89 days:
Continuing Portfolio:
Commercial non-mortgage    $ 2,982    $ 10,891  $ 3,788    $ 2,769   $ 4,424
Equipment financing        455        783       1,000      1,926     3,524
Asset based lending        -          -         -          -         -
Commercial real estate     547        1,985     1,328      14,710    7,136
Residential development    -          737       -          -         317
Residential mortgages      20,803     16,056    16,571     25,182    22,230
Consumer                   15,966     15,976    14,538     24,860    24,664
Past due 30-89 days -      40,753     46,428    37,225     69,447    62,295
continuing portfolio
Liquidating Portfolio:
Consumer                   2,726      1,902     2,794      3,588     4,909
Total past due 30-89 days  43,479     48,330    40,019     73,035    67,204
Loans past due 90 days or  4,811      1,498     -          1,237     205
more and accruing
Total past due loans       $ 48,290   $ 49,828  $ 40,019   $ 74,272  $ 67,409

WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Loan Losses (unaudited)
                  For the Three Months Ended
(Dollars in       September    June 30,     March      December     September
thousands)        30,          2013         31,        31,          30,
                  2013                      2013       2012^(a)     2012
Beginning balance $ 163,442    $ 167,840    $          $ 186,089    $ 198,757
                                            177,129
Provision         8,500        8,500        7,500      7,500        5,000
Charge-offs
continuing
portfolio:
Commercial        3,245        6,156        4,339      6,411        8,642
non-mortgage
Equipment         10           4            87         682          187
financing
Asset based       -            -            -          69           -
lending
Commercial real   4,069        2,510        3,617      170          2,655
estate
Residential       -            -            143        156          -
development
Residential       3,800        2,112        2,936      2,597        3,234
mortgages
Consumer          4,525        5,374        7,358      8,149        6,752
Charge-offs
continuing        15,649       16,156       18,480     18,234       21,470
portfolio
Charge-offs
liquidating
portfolio:
NCLC              -            -            -          -            28
Consumer          1,302        1,957        3,049      5,137        2,482
Charge-offs
liquidating       1,302        1,957        3,049      5,137        2,510
portfolio
Total charge-offs 16,951       18,113       21,529     23,371       23,980
Recoveries
continuing
portfolio:
Commercial        424          998          901        1,045        779
non-mortgage
Equipment         683          904          828        2,899        3,111
financing
Asset based       2            60           698        996          518
lending
Commercial real   99           323          91         43           121
estate
Residential       6            229          150        721          181
development
Residential       141          435          205        99           318
mortgages
Consumer          1,002        1,571        1,437      674          933
Recoveries
continuing        2,357        4,520        4,310      6,477        5,961
portfolio
Recoveries
liquidating
portfolio:
NCLC              11           5            45         74           35
Consumer          186          690          385        360          316
Recoveries
liquidating       197          695          430        434          351
portfolio
Total recoveries  2,554        5,215        4,740      6,911        6,312
Total net         14,397       12,898       16,789     16,460       17,668
charge-offs
Ending balance    $ 157,545    $ 163,442    $          $ 177,129    $ 186,089
                                            167,840
(a) Note: $5.3 million of net charge-offs in 4Q12 relate to an OCC requirement
to reduce Chapter 7 bankruptcies to collateral value.

WEBSTER FINANCIAL
CORPORATION
Reconciliations to GAAP
Financial Measures
The Company evaluates its business based on the following ratios that utilize
tangible equity, a non-GAAP financial measure. Return on average tangible
common shareholders' equity measures the Company's net income available to
common shareholders, adjusted for the tax-affected amortization of intangible
assets, as a percentage of average common shareholders' equity less goodwill
and intangible assets (excluding mortgage servicing rights). The tangible
equity ratio represents total ending shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights) divided by total
assets less goodwill and intangible assets (excluding mortgage servicing
rights). The tangible common equity ratio represents ending common
shareholders' equity less goodwill and intangible assets (excluding mortgage
servicing rights) divided by total assets less goodwill and intangible assets
(excluding mortgage servicing rights). Tangible book value per common share
represents ending common shareholders' equity less goodwill and intangible
assets (excluding mortgage servicing rights) divided by ending common shares
outstanding.
The efficiency ratio, which measures the costs expended to generate a dollar
of revenue, is calculated excluding foreclosed property expense, amortization
of intangibles, gain or loss on securities, and other non-recurring items.
Accordingly, this is also a non-GAAP financial measure.
See the tables below for reconciliations of these non-GAAP financial measures
with financial measures defined by GAAP for the three months ended September
30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30,
2012. The Company believes the use of these non-GAAP financial measures
provides additional clarity in assessing the results of the Company. Other
companies may define or calculate supplemental financial data differently.

                    At or for the Three Months Ended
(Dollars in         September   June 30,    March 31,   December    September
thousands)          30,         2013        2013        31,         30,
                    2013                                2012        2012
Reconciliation of
net income
available to common

shareholders to net
income used for
computing the

return on average
tangible common
shareholders'

equity ratio
Net income
available to common $ 44,666    $ 43,734    $ 39,231    $ 47,911    $ 44,378
shareholders
Amortization of
intangibles         807         807         807         807         900
(tax-affected @
35%)
 Quarterly net
income adjusted for
amortization of     45,473      44,541      40,038      48,718      45,278

 intangibles
 Annualized net
income used in the
return onaverage
                    $ 181,982   $ 178,164   $ 160,152   $ 194,872   $ 181,112
 tangible common
shareholders'
equity ratio
Reconciliation of
average common
shareholders'
equity

to average tangible
common
shareholders'
equity
Average common      $           $           $           $           $
shareholders'       2,000,018   1,991,600   1,959,288   1,967,312   1,931,544
equity
Average goodwill    (529,887)   (529,887)   (529,887)   (529,887)   (529,887)
Average intangible
assets (excluding
mortgage servicing  (7,151)     (8,391)     (9,635)     (10,873)    (12,188)

rights)
 Average
tangible common     $           $           $           $           $
shareholders'       1,462,980   1,453,322   1,419,766   1,426,552   1,389,469
equity
Reconciliation of
period-end
shareholders'
equity to

period-end tangible
shareholders'
equity
Shareholders'       $           $           $           $           $
equity              2,167,659   2,127,475   2,128,131   2,093,530   1,983,678
Goodwill            (529,887)   (529,887)   (529,887)   (529,887)   (529,887)
Intangible assets
(excluding mortgage (6,544)     (7,786)     (9,028)     (10,270)    (11,512)
servicing rights)
 Tangible        $           $           $           $           $
shareholders'       1,631,228   1,589,802   1,589,216   1,553,373   1,442,279
equity
Reconciliation of
period-end common
shareholders'

equity to
period-end tangible
common
shareholders'

equity
Shareholders'       $           $           $           $           $
equity              2,167,659   2,127,475   2,128,131   2,093,530   1,983,678
Preferred stock     (151,649)   (151,649)   (151,649)   (151,649)   (28,939)
Common
shareholders'       2,016,010   1,975,826   1,976,482   1,941,881   1,954,739
equity
Goodwill            (529,887)   (529,887)   (529,887)   (529,887)   (529,887)
Intangible assets
(excluding mortgage (6,544)     (7,786)     (9,028)     (10,270)    (11,512)
servicing rights)
 Tangible common $           $           $           $           $
shareholders'       1,479,579   1,438,153   1,437,567   1,401,724   1,413,340
equity
Reconciliation of
period-end assets
to period-end

tangible assets
Assets              $           $           $           $           $
                    20,609,554  20,329,238  20,110,538  20,146,765  19,729,662
Goodwill            (529,887)   (529,887)   (529,887)   (529,887)   (529,887)
Intangible assets
(excluding mortgage (6,544)     (7,786)     (9,028)     (10,270)    (11,512)
servicing rights)
 Tangible assets $           $           $           $           $
                    20,073,123  19,791,565  19,571,623  19,606,608  19,188,263
Book value per
common share
Common              $           $           $           $           $
shareholders'       2,016,010   1,975,826   1,976,482   1,941,881   1,954,739
equity
Ending common
shares issued and   90,245      90,289      90,237      85,341      87,899
outstanding (in
thousands)
 Book value per
share of common     $ 22.34     $ 21.88     $ 21.90     $ 22.75     $ 22.24
stock
Tangible book value
per common share
Tangible common     $           $           $           $           $
shareholders'       1,479,579   1,438,153   1,437,567   1,401,724   1,413,340
equity
Ending common
shares issued and   90,245      90,289      90,237      85,341      87,899
outstanding (in
thousands)
 Tangible book
value per common    $ 16.40     $ 15.93     $ 15.93     $ 16.42     $ 16.08
share
Reconciliation of
noninterest expense
to noninterest

expense used in the
efficiency ratio
Noninterest expense $ 122,281   $ 123,604   $ 125,535   $ 122,925   $ 123,887
Foreclosed property (432)       (331)       (175)       (267)       (118)
expense
Intangible assets   (1,242)     (1,242)     (1,242)     (1,242)     (1,384)
amortization
Other expense       (950)       (687)       (1,352)     (452)       (187)
Noninterest expense
used in the         $ 119,657   $ 121,344   $ 122,766   $ 120,964   $ 122,198
efficiency ratio
Reconciliation of
income to income
used in the

efficiency ratio
Net interest income
before provision    $ 149,987   $ 147,061   $ 145,796   $ 146,272   $ 144,890
for loan losses
Fully
taxable-equivalent  3,211       3,337       3,523       3,480       3,740
adjustment
Noninterest income  46,257      52,251      48,278      52,940      48,479
Net gain on
investment          (269)       (333)       (106)       --          (810)
securities
 Income used in
the efficiency      $ 199,186   $ 202,316   $ 197,491   $ 202,692   $ 196,299
ratio





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



SOURCE Webster Financial Corporation

Website: http://www.websteronline.com