WATERBURY, Conn., April 16, 2015 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common shareholders of $47.1 million, or $0.52 per diluted share, for the quarter ended March 31, 2015 compared to $47.8 million, or $0.53 per diluted share, for the quarter ended March 31, 2014.

"Webster's solid first quarter results mark our 22nd consecutive quarter of year-over-year revenue growth, a clear reflection of our bankers' success in serving our customers and communities," said James C. Smith, chairman and chief executive officer. "Commercial Banking once again recorded double-digit loan growth, while HSA Bank opened a record number of new health savings accounts, as consumers increasingly reap the rewards of taking ownership for their health care costs."

Highlights for the first quarter of 2015 compared to the first quarter of 2014:


    --  Excluding security gains, earnings per diluted share of $0.52 compared
        to $0.50 a year ago.
    --  Growth in commercial and commercial real estate loans of $993.4 million,
        or 14.0 percent. Overall loan growth of $1.3 billion, or 9.8 percent.
    --  Successful closing of acquired HSA business resulted in the addition of
        $1.4 billion in low-cost, long duration health savings account deposits
        (HSAs), reinforcing HSA Bank's position as a market leader in this fast
        growing segment.
    --  Overall deposit growth of $2.5 billion, or 16.7 percent, primarily
        reflecting the HSA acquisition.
    --  Record core revenue of $217.6 million increased 8.3 percent, while core
        expenses increased by 7.1 percent resulting in core pre-provision net
        revenue of $84.7 million, or a 10.3 percent improvement.
    --  Efficiency ratio of 59.76 percent, an improvement of 51 basis points.
        Positive operating leverage of 1.2 percent.
    --  Annualized return on average tangible common shareholders' equity of
        11.82 percent.

"We've now completed eight consecutive quarters with the efficiency ratio at or below 60 percent," said Glenn MacInnes, executive vice president and chief financial officer. "In addition, the annualized net charge-off ratio has been 25 basis points or less for five consecutive quarters as we maintain credit discipline in a competitive market."

Quarterly net interest income compared to the first quarter of 2014:


    --  Net interest income was $159.8 million, compared to $155.3 million.
    --  Net interest margin was 3.10 percent compared to 3.26 percent. The yield
        on interest-earning assets declined by 18 basis points, while the cost
        of funds declined by 3 basis points.
    --  Average interest-earning assets totaled $21.0 billion and grew by $1.6
        billion, or 8.0 percent.
    --  Average loans grew by $1.1 billion, or 8.9 percent.

Quarterly provision for loan losses:


    --  The Company recorded a provision for loan losses of $9.75 million in the
        first quarter of 2015 compared to $9.5 million in the fourth quarter of
        2014 and $9.0 million in the first quarter of 2014.
    --  Net charge-offs were $7.0 million compared to $6.7 million in the prior
        quarter and $8.0 million a year ago. The ratio of net charge-offs to
        average loans on an annualized basis was 0.20 percent compared to 0.20
        percent in the prior quarter and 0.25 percent a year ago.
    --  The allowance for loan losses represented 1.14 percent of total loans at
        March 31, 2015 compared to 1.15 percent at December 31, 2014 and 1.18
        percent at March 31, 2014. The allowance for loan losses represented 106
        percent of nonperforming loans at March 31 compared to 123 percent at
        December 31 and 106 percent a year ago.

Quarterly non-interest income compared to the first quarter of 2014:


    --  Total non-interest income was $57.9 million compared to $49.8 million,
        an increase of $8.1 million. Excluding securities gains and
        other-than-temporary impairment charges, a $12.3 million year-over-year
        increase in core non-interest income reflects increases of $7.9 million
        in deposit service fees of which $6.7 million resulted from the HSA
        acquisition, $1.2 million in loan related fees, $0.8 million in mortgage
        banking activities, and $3.4 million in other income, offset by a $0.9
        million reduction in wealth and investment services.

Quarterly non-interest expense compared to the first quarter of 2014:


    --  Total non-interest expense was $134.1 million compared to $124.5
        million, an increase of $9.6 million. Included in non-interest expense
        are $0.5 million of net one-time costs, which consisted primarily of
        costs related to the HSA acquisition. There were $0.2 million of net
        one-time costs in the year-ago quarter.
    --  Non-interest expense, excluding one-time costs, increased $9.4 million.
        This increase is attributable to an increase of $4.5 million in
        compensation and benefits primarily related to staff additions and an
        increase of $4.2 million in technology and equipment expense at HSA Bank
        primarily from the acquisition.
    --  Foreclosed and repossessed asset expenses were $0.2 million compared to
        $0.5 million, while net losses on foreclosed and repossessed assets were
        $0.5 million compared to net gains of $0.3 million a year ago.

Quarterly income taxes compared to the first quarter of 2014:


    --  The Company recorded $24.1 million of income tax expense compared to
        $21.2 million, an increase of $2.9 million. The effective tax rate was
        32.6 percent compared to 29.6 percent. The year ago quarter reflected a
        $2.0 million net tax benefit compared to a net benefit of $0.5 million
        in the current quarter.

Investment securities:


    --  Total investment securities were $6.9 billion at March 31, 2015 compared
        to $6.7 billion at December 31, 2014 and $6.5 billion a year ago. The
        carrying value of the available-for-sale portfolio included $36.9
        million of net unrealized gains compared to $25.9 million at December 31
        and $8.8 million a year ago, while the carrying value of the
        held-to-maturity portfolio does not reflect $99.8 million of net
        unrealized gains compared to $75.8 million at December 31 and $30.2
        million a year ago.

Loans:


    --  Total loans were $14.3 billion at March 31, 2015 compared to $13.9
        billion at December 31, 2014 and $13.0 billion a year ago. Compared to
        December 31, commercial, commercial real estate, residential mortgage,
        and consumer loans increased by $156.4 million, $108.6 million, $85.1
        million, and $20.0 million, respectively.
    --  Compared to a year ago, commercial real estate, commercial, residential
        mortgage, and consumer loans increased by $519.5 million, $473.9
        million, $237.7 million, and $44.4 million, respectively.
    --  Loan originations for portfolio in the first quarter were $1.062 billion
        compared to $1.378 billion in the fourth quarter and $879 million a year
        ago. In addition, $87 million of residential loans were originated for
        sale in the quarter compared to $87 million in the prior quarter and $59
        million a year ago.

Asset quality:


    --  Past due loans were $45.1 million at March 31, 2015 compared to $42.3
        million at December 31, 2014 and $48.5 million a year ago. Compared to
        December 31, past due consumer, commercial non-mortgage, commercial real
        estate, liquidating consumer, and equipment financing loans increased
        $2.6 million, $1.9 million, $1.2 million, $0.2 million, and $0.1
        million, respectively, while past due residential mortgage loans
        decreased $3.2 million. Loans past due 90 days and still accruing
        increased $22 thousand. Compared to a year ago, past due residential
        mortgage, commercial non-mortgage, and liquidating consumer loans
        decreased $5.0 million, $3.9 million, and $0.1 million, respectively,
        while past due consumer, commercial real estate, and equipment financing
        loans increased $3.9 million, $1.3 million, and $0.1 million,
        respectively. Loans past due 90 days and still accruing increased $0.7
        million.
    --  Past due loans represented 0.32 percent of total loans at quarter end,
        0.30 percent at December 31, and 0.37 percent a year ago. Past due loans
        for the continuing portfolio were $43.3 million at quarter end compared
        to $40.7 million at December 31 and $46.2 million a year ago. Past due
        loans for the liquidating portfolio were $1.8 million at March 31
        compared to $1.7 million at December 31 and $2.3 million a year ago.
    --  Total nonperforming loans increased to $152.2 million, or 1.07 percent
        of total loans, at quarter end compared to $129.9 million, or 0.93
        percent, at December 31, and $144.6 million, or 1.11 percent, a year
        ago. Total paying nonperforming loans at March 31 were $53.8 million
        compared to $30.5 million at December 31 and $48.8 million a year ago.

Deposits and borrowings:


    --  Total deposits were $17.5 billion at March 31, 2015 compared to $15.7
        billion at December 31, 2014 and $15.0 billion a year ago. Compared to
        December 31, increases of $1.7 billion in health savings accounts,
        $205.8 million in money market, $112.3 million in interest-bearing
        checking, and $85.9 million in savings deposits, were offset by declines
        of $148.6 million in demand deposits, $65.6 million in certificates of
        deposit, and $235 thousand in brokered certificates of deposit. Compared
        to a year ago, increases of $1.8 billion in health savings accounts,
        $421.7 million in demand deposits, $309.3 million in interest-bearing
        checking, $74.1 million in brokered certificates of deposit, and $58.5
        million in savings deposits, were offset by declines of $148.6 million
        in certificates of deposit and $18.7 million in money market deposits.
    --  Core to total deposits were 87.4 percent at quarter end, 85.5 percent at
        December 31, and 84.8 percent a year ago. Loans to deposits were 81.3
        percent compared to 88.8 percent at December 31 and 86.4 percent a year
        ago.
    --  Total borrowings were $2.9 billion at March 31 compared to $4.3 billion
        at December 31 and $3.7 billion a year ago.

Capital:


    --  The return on average tangible common shareholders' equity and the
        return on average common shareholders' equity were 11.82 percent and
        8.57 percent, respectively, for the first quarter of 2015 compared to
        12.51 percent and 9.16 percent, respectively, in the first quarter of
        2014.
    --  The tangible equity and tangible common equity ratios were 7.87 percent
        and 7.20 percent, respectively, at March 31, 2015 compared to 8.26
        percent and 7.53 percent, respectively, at March 31, 2014. The Tier 1
        common equity to risk-weighted assets ratio was 10.93 percent at March
        31 compared to 11.45 percent a year ago.
    --  Book value and tangible book value per common share were $24.29 and
        $17.87, respectively, at March 31, 2015 compared to $23.13 and $17.22,
        respectively, at March 31, 2014.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $23.1 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 164 banking centers, 313 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 2015 first quarter earnings announcement will be held today, Thursday, April 16, 2015 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 nonperforming 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-K and 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.



    Media Contact              Investor Contact

    Bob Guenther, 203-578-2391 Terry Mangan, 203-578-2318

    rguenther@websterbank.com  tmangan@websterbank.com



    WEBSTER FINANCIAL CORPORATION
    Selected Financial Highlights (unaudited)
    ----------------------------------------

                                                                                                                                                              At or for the Three Months Ended
                                                                                                                                                              --------------------------------

    (In thousands, except per share data)                                                                  March 31,                                            December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                              2015                                 2014(b)                                                2014(b)                                                2014(b)                            2014(b)
    ---                                                                                                                       ----                                  ------                                                 ------                                                ------                             ------


    Income and performance ratios (annualized):
    -------------------------------------------

    Net income                                                                                                             $49,722                                                $51,006                                                  $50,457                                               $47,834                       $50,429

    Net income available to common shareholders                                                                             47,083                                                 48,367                                                   47,818                                                45,195                        47,790

    Net income per diluted common share                                                                                       0.52                                                   0.53                                                     0.53                                                  0.50                          0.53

    Return on average assets                                                                                                 0.88%                                                 0.93%                                                   0.94%                                                0.90%                        0.96%

    Return on average tangible common shareholders' equity                                                                   11.82                                                  11.74                                                    11.86                                                 11.51                         12.51

    Return on average common shareholders' equity                                                                             8.57                                                   8.84                                                     8.87                                                  8.53                          9.16

    Non-interest income as a percentage of total revenue                                                                     26.60                                                  25.08                                                    24.44                                                 23.48                         24.29

    Efficiency ratio                                                                                                         59.76                                                  58.59                                                    58.91                                                 59.21                         60.27


    Asset quality:
    --------------

    Allowance for loan losses                                                                                             $161,970                                               $159,264                                                 $156,482                                              $154,868                      $153,600

    Nonperforming assets                                                                                                   157,546                                                136,397                                                  144,314                                               150,490                       152,382

    Allowance for loan losses / total loans                                                                                  1.14%                                                 1.15%                                                   1.16%                                                1.17%                        1.18%

    Net charge-offs / average loans (annualized)                                                                              0.20                                                   0.20                                                     0.24                                                  0.24                          0.25

    Nonperforming loans / total loans                                                                                         1.07                                                   0.93                                                     1.03                                                  1.08                          1.11

    Nonperforming assets / total loans plus OREO                                                                              1.10                                                   0.98                                                     1.07                                                  1.13                          1.17

    Allowance for loan losses / nonperforming loans                                                                         106.39                                                 122.62                                                   112.51                                                107.73                        106.22


    Other ratios (annualized):
    --------------------------

    Tangible equity ratio                                                                                                    7.87%                                                 8.14%                                                   8.35%                                                8.34%                        8.26%

    Tangible common equity ratio                                                                                              7.20                                                   7.45                                                     7.64                                                  7.62                          7.53

    Tier 1 risk-based capital ratio (a)                                                                                      12.04                                                  12.95                                                    13.06                                                 12.97                         13.07

    Total risk-based capital(a)                                                                                              13.47                                                  14.06                                                    14.17                                                 14.09                         14.20

    Tier 1 common equity / risk-weighted assets (a)                                                                          10.93                                                  11.43                                                    11.50                                                 11.40                         11.45

    Shareholders' equity / total assets                                                                                      10.19                                                  10.31                                                    10.59                                                 10.61                         10.58

    Net interest margin                                                                                                       3.10                                                   3.17                                                     3.17                                                  3.19                          3.26


    Share and equity related:
    -------------------------

    Common equity                                                                                                       $2,203,926                                             $2,171,166                                               $2,159,344                                            $2,132,973                    $2,088,146

    Book value per common share                                                                                              24.29                                                  23.99                                                    23.93                                                 23.64                         23.13

    Tangible book value per common share                                                                                     17.87                                                  18.10                                                    18.02                                                 17.72                         17.22

    Common stock closing price                                                                                               37.05                                                  32.53                                                    29.14                                                 31.54                         31.06

    Dividends declared per common share                                                                                       0.20                                                   0.20                                                     0.20                                                  0.20                          0.15


    Common shares issued and outstanding                                                                                    90,715                                                 90,512                                                   90,248                                                90,246                        90,269

    Basic shares (weighted average)                                                                                         90,251                                                 90,045                                                   89,888                                                89,776                        89,880

    Diluted shares (weighted average)                                                                                       90,841                                                 90,741                                                   90,614                                                90,528                        90,658


     (a) The ratios presented are projected for March 31, 2015 and actual for the remaining periods presented.


    (b) Certain previously reported information reflects (1) the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects," and (2) the reclassification of residential loans from nonperforming to accrual past due 90 days or more as their principal
     and accrued interest are well secured due to government guarantees.



    WEBSTER FINANCIAL CORPORATION
    Consolidated Balance Sheets (unaudited)
    --------------------------------------

    (In thousands)                                                                                                                                              March 31,                    December 31,             March 31,
                                                                                                                                                                                        2015    2014(a)                 2014(a)
    ---                                                                                                                                                                                 ----     ------                  ------

    Assets:

    Cash and due from banks                                                                                                                                                         $233,970                 $261,544              $251,886

    Interest-bearing deposits                                                                                                                                                        119,297                  132,695                29,893

    Investment securities:

    Available for sale, at fair value                                                                                                                                              2,968,109                2,793,873             3,008,856

    Held to maturity                                                                                                                                                               3,923,189                3,872,955             3,448,195
                                                                                                                                                                                   ---------                ---------             ---------

       Total securities                                                                                                                                                            6,891,298                6,666,828             6,457,051

    Loans held for sale                                                                                                                                                               45,866                   67,952                14,631

    Loans:

    Commercial                                                                                                                                                                     4,443,446                4,287,021             3,969,508

    Commercial real estate                                                                                                                                                         3,663,071                3,554,428             3,143,612

    Residential mortgages                                                                                                                                                          3,594,272                3,509,175             3,356,539

    Consumer                                                                                                                                                                       2,569,437                2,549,401             2,525,083
                                                                                                                                                                                   ---------                ---------             ---------

       Total loans                                                                                                                                                                14,270,226               13,900,025            12,994,742

    Allowance for loan losses                                                                                                                                                      (161,970)               (159,264)            (153,600)
                                                                                                                                                                                    --------                 --------              --------

       Loans, net                                                                                                                                                                 14,108,256               13,740,761            12,841,142

    Federal Home Loan Bank and Federal Reserve Bank stock                                                                                                                            193,290                  193,290               166,133

    Premises and equipment, net                                                                                                                                                      123,548                  121,933               121,473

    Goodwill and other intangible assets, net                                                                                                                                        582,751                  532,553               534,070

    Cash surrender value of life insurance policies                                                                                                                                  443,225                  440,073               433,793

    Deferred tax asset, net                                                                                                                                                           61,136                   73,873                55,107

    Accrued interest receivable and other assets                                                                                                                                     304,051                  301,670               270,734
                                                                                                                                                                                     -------                  -------               -------

    Total Assets                                                                                                                                                                 $23,106,688              $22,533,172           $21,175,913
                                                                                                                                                                                 -----------              -----------           -----------


    Liabilities and Equity:

    Deposits:

    Demand                                                                                                                                                                        $3,450,316               $3,598,872            $3,028,625

    Interest-bearing checking                                                                                                                                                      2,267,350                2,155,047             1,958,027

    Health savings accounts                                                                                                                                                        3,529,301                1,824,799             1,719,890

    Money market                                                                                                                                                                   2,114,300                1,908,522             2,133,036

    Savings                                                                                                                                                                        3,978,655                3,892,778             3,920,171

    Certificates of deposit                                                                                                                                                        1,905,943                1,971,567             2,054,541

    Brokered certificates of deposit                                                                                                                                                 299,785                  300,020               225,699
                                                                                                                                                                                     -------                  -------               -------

       Total deposits                                                                                                                                                             17,545,650               15,651,605            15,039,989

    Securities sold under agreements to repurchase and other borrowings                                                                                                            1,083,877                1,250,756             1,147,882

    Federal Home Loan Bank advances                                                                                                                                                1,584,357                2,859,431             2,203,606

    Long-term debt                                                                                                                                                                   226,267                  226,237               376,412

    Accrued expenses and other liabilities                                                                                                                                           310,962                  222,328               168,229
                                                                                                                                                                                     -------                  -------               -------

    Total liabilities                                                                                                                                                             20,751,113               20,210,357            18,936,118
                                                                                                                                                                                  ----------               ----------            ----------


    Preferred stock                                                                                                                                                                  151,649                  151,649               151,649

    Common shareholders' equity                                                                                                                                                    2,203,926                2,171,166             2,088,146
                                                                                                                                                                                   ---------                ---------             ---------

       Webster Financial Corporation shareholders' equity                                                                                                                          2,355,575                2,322,815             2,239,795
                                                                                                                                                                                   ---------                ---------             ---------

    Total Liabilities and Equity                                                                                                                                                 $23,106,688              $22,533,172           $21,175,913
                                                                                                                                                                                 -----------              -----------           -----------


    (a) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."


    WEBSTER FINANCIAL CORPORATION
    Consolidated Statements of Income (unaudited)
    --------------------------------------------

                                                        Three Months Ended March
                                                                 31,
                                                       ------------------------

    (In thousands, except per
     share data)                                             2015                         2014(a)
    -------------------------                                ----                         ------

    Interest income:

    Interest and fees on loans
     and leases                                          $130,723                                $124,010

    Interest and dividends on
     securities                                            51,679                                  53,592

    Loans held for sale                                       510                                     177

    Total interest income                                 182,912                                 177,779
                                                          -------                                 -------

    Interest expense:

    Deposits                                               11,542                                  10,644

    Borrowings                                             11,606                                  11,834

    Total interest expense                                 23,148                                  22,478
                                                           ------                                  ------

    Net interest income                                   159,764                                 155,301

    Provision for loan losses                               9,750                                   9,000

    Net interest income after
     provision for loan losses                            150,014                                 146,301
                                                          -------                                 -------

    Non-interest income:

    Deposit service fees                                   32,625                                  24,712

    Loan related fees                                       5,679                                   4,482

    Wealth and investment
     services                                               7,889                                   8,838

    Mortgage banking activities                             1,561                                     775

    Increase in cash surrender
     value of life insurance
     policies                                               3,152                                   3,258

    Net gain on investment
     securities                                                43                                   4,336

    Other income                                            6,941                                   3,515
                                                            -----                                   -----

                                                           57,890                                  49,916

    Loss on write-down of
     investment securities to
     fair value                                                 -                                   (88)

    Total non-interest income                              57,890                                  49,828
                                                           ------                                  ------

    Non-interest expense:

    Compensation and benefits                              70,864                                  66,371

    Occupancy                                              13,596                                  12,759

    Technology and equipment
     expense                                               19,248                                  15,010

    Marketing                                               4,176                                   3,180

    Professional and outside
     services                                               2,453                                   2,702

    Intangible assets
     amortization                                           1,288                                   1,168

    Foreclosed and repossessed
     asset expenses                                           169                                     458

    Foreclosed and repossessed
     asset gains                                              536                                   (260)

    Loan workout expenses                                     878                                   1,052

    Deposit insurance                                       6,241                                   5,311

    Other expenses                                         14,166                                  16,500
                                                           ------                                  ------

                                                          133,615                                 124,251

    Severance, contract, and
     other                                                    290                                      22

    Acquisition costs                                         509                                       -

    Branch and facility
     optimization                                           (324)                                    190

    Total non-interest expense                            134,090                                 124,463
                                                          -------                                 -------

    Income before income taxes                             73,814                                  71,666

    Income tax expense                                     24,092                                  21,237
                                                           ------                                  ------

    Net income                                             49,722                                  50,429

    Preferred stock dividends                             (2,639)                                (2,639)

    Net income available to
     common shareholders                                  $47,083                                 $47,790
                                                          -------                                 -------


    Diluted shares (average)                               90,841                                  90,658


    Net income per common share available to common
     shareholders:

    Basic                                                   $0.52                                   $0.53

    Diluted                                                  0.52                                    0.53


    (a) Certain previously reported information reflects the retrospective application of ASU
     No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."


    WEBSTER FINANCIAL CORPORATION
    Five Quarter Consolidated Statements of Income (unaudited)
    ---------------------------------------------------------

                                                                                                                                 Three Months Ended
                                                                                                                                 ------------------

    (In thousands, except per share data)                                                                  March 31,                                           December 31,               September 30,           June 30,            March 31,
                                                                                                                               2015                                2014(a)                    2014(a)              2014(a)              2014(a)
    ---                                                                                                                        ----                                ------                      ------               ------               ------

    Interest income:

    Interest and fees on loans and leases                                                                                  $130,723                                              $132,604                $129,227            $125,771              $124,010

    Interest and dividends on securities                                                                                     51,679                                                50,921                  50,448              51,511                53,592

    Loans held for sale                                                                                                         510                                                   226                     239                 215                   177

    Total interest income                                                                                                   182,912                                               183,751                 179,914             177,497               177,779
                                                                                                                            -------                                               -------                 -------             -------               -------

    Interest expense:

    Deposits                                                                                                                 11,542                                                11,322                  11,345              10,851                10,644

    Borrowings                                                                                                               11,606                                                11,781                  11,199              11,524                11,834

    Total interest expense                                                                                                   23,148                                                23,103                  22,544              22,375                22,478
                                                                                                                             ------                                                ------                  ------              ------                ------

    Net interest income                                                                                                     159,764                                               160,648                 157,370             155,122               155,301

    Provision for loan losses                                                                                                 9,750                                                 9,500                   9,500               9,250                 9,000

    Net interest income after provision for loan losses                                                                     150,014                                               151,148                 147,870             145,872               146,301
                                                                                                                            -------                                               -------                 -------             -------               -------

    Non-interest income:

    Deposit service fees                                                                                                     32,625                                                25,928                  26,489              26,302                24,712

    Loan related fees                                                                                                         5,679                                                 8,361                   5,479               4,890                 4,482

    Wealth and investment services                                                                                            7,889                                                 8,517                   8,762               8,829                 8,838

    Mortgage banking activities                                                                                               1,561                                                   977                   1,805                 513                   775

    Increase in cash surrender value of life insurance policies                                                               3,152                                                 3,278                   3,346               3,296                 3,258

    Net gain on investment securities                                                                                            43                                                 1,121                      42                   -                4,336

    Other income                                                                                                              6,941                                                 6,492                   5,071               3,839                 3,515

                                                                                                                             57,890                                                54,674                  50,994              47,669                49,916

    Loss on write-down of investment securities to fair value                                                                     -                                                (899)                   (85)               (73)                 (88)
                                                                                                                                ---

    Total non-interest income                                                                                                57,890                                                53,775                  50,909              47,596                49,828
                                                                                                                             ------                                                ------                  ------              ------                ------

    Non-interest expense:

    Compensation and benefits                                                                                                70,864                                                71,220                  66,849              65,711                66,371

    Occupancy                                                                                                                13,596                                                11,518                  11,557              11,491                12,759

    Technology and equipment expense                                                                                         19,248                                                15,827                  15,419              15,737                15,010

    Marketing                                                                                                                 4,176                                                 3,918                   4,032               4,249                 3,180

    Professional and outside services                                                                                         2,453                                                 1,855                   2,470               1,269                 2,702

    Intangible assets amortization                                                                                            1,288                                                   416                     432                 669                 1,168

    Foreclosed and repossessed asset expenses                                                                                   169                                                   244                     387                 134                   458

    Foreclosed and repossessed asset gains                                                                                      536                                                 (238)                  (225)              (574)                (260)

    Loan workout expenses                                                                                                       878                                                   685                     969                 801                 1,052

    Deposit insurance                                                                                                         6,241                                                 5,856                   5,938               5,565                 5,311

    Other expenses                                                                                                           14,166                                                16,158                  17,083              16,898                16,500
                                                                                                                             ------                                                ------                  ------              ------                ------

                                                                                                                            133,615                                               127,459                 124,911             121,950               124,251

    Severance, contract, and other                                                                                              290                                                   633                      42                 267                    22

    Acquisition costs                                                                                                           509                                                   396                     144                   -                    -

    Branch and facility optimization                                                                                          (324)                                                  276                   (599)                258                   190

    Provision for litigation and settlements                                                                                      -                                                1,400                       -                  -                    -
                                                                                                                                ---                                                                                                                 ---

    Total non-interest expense                                                                                              134,090                                               130,164                 124,498             122,475               124,463
                                                                                                                            -------                                               -------                 -------             -------               -------

    Income before income taxes                                                                                               73,814                                                74,759                  74,281              70,993                71,666

    Income tax expense                                                                                                       24,092                                                23,753                  23,824              23,159                21,237
                                                                                                                             ------

    Net income                                                                                                               49,722                                                51,006                  50,457              47,834                50,429

    Preferred stock dividends                                                                                               (2,639)                                              (2,639)                (2,639)            (2,639)              (2,639)
                                                                                                                             ------

    Net income available to common shareholders                                                                             $47,083                                               $48,367                 $47,818             $45,195               $47,790
                                                                                                                            -------                                               -------                 -------             -------               -------


    Diluted shares (average)                                                                                                 90,841                                                90,741                  90,614              90,528                90,658


    Net income per common share available to common shareholders:

    Basic                                                                                                                     $0.52                                                 $0.54                   $0.53               $0.50                 $0.53

    Diluted                                                                                                                    0.52                                                  0.53                    0.53                0.50                  0.53


    (a) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."



    WEBSTER FINANCIAL CORPORATION
    Consolidated Average Balances, Yields, and Rates Paid (unaudited)
    ----------------------------------------------------------------

                                                                                                                                                                   Three Months Ended March 31,
                                                                                                                                                                   ----------------------------

                                                                                                                                                                                                                2015                                                                         2014
                                                                                                                                                                                                                ----                                                                         ----

    (Dollars in thousands)                                                                                                                   Average balance                                    Interest               Fully tax-           Average balance(b)               Interest                 Fully tax-
                                                                                                                                                                                                                     equivalent                                                                     equivalent
                                                                                                                                                                                                                     yield/rate                                                                     yield/rate
    ---                                                                                                                                                                                                                                                                                               ----------

    Assets:

      Interest-earning assets:

      Loans                                                                                                                                                       $13,994,482                               $131,254                  3.76%                     $12,853,349               $124,512                     3.88%

      Investment securities(a)                                                                                                                                      6,695,978                                 52,426                   3.15                        6,420,976                 54,925                      3.43

      Federal Home Loan and Federal Reserve Bank stock                                                                                                                193,290                                  1,316                   2.76                          158,959                  1,167                      2.98

      Interest-bearing deposits                                                                                                                                        99,879                                     63                   0.25                           15,949                     11                      0.27

      Loans held for sale                                                                                                                                              40,666                                    510                   5.02                           18,128                    177                      3.92
                                                                                                                                                                       ------                                    ---                   ----                           ------                    ---                      ----

        Total interest-earning assets                                                                                                                              21,024,295                               $185,569                   3.54                       19,467,361               $180,792                      3.72


      Non-interest-earning assets                                                                                                                                   1,643,631                                                                                    1,511,799

        Total assets                                                                                                                                              $22,667,926                                                                                  $20,979,160
                                                                                                                                                                  -----------                                                                                  -----------


    Liabilities and Shareholders' Equity:

      Interest-bearing liabilities:

       Deposits:

      Demand                                                                                                                                                       $3,454,242                        $             -                    -%                     $3,096,991         $            -                       -%

      Savings, interest checking, and money market                                                                                                                 11,541,135                                  4,836                   0.17                        9,844,931                  4,519                      0.19

      Certificates of deposit                                                                                                                                       2,242,857                                  6,706                   1.21                        2,250,283                  6,125                      1.10

        Total deposits                                                                                                                                             17,238,234                                 11,542                   0.27                       15,192,205                 10,644                      0.28
                                                                                                                                                                   ----------                                 ------                   ----                       ----------                 ------                      ----


    Securities sold under agreements to repurchase and other borrowings                                                                                             1,199,025                                  4,387                   1.46                        1,351,444                  5,205                      1.54

    Federal Home Loan Bank advances                                                                                                                                 1,432,717                                  4,821                   1.35                        1,721,669                  3,847                      0.89

    Long-term debt                                                                                                                                                    226,248                                  2,398                   4.24                          308,985                  2,782                      3.60

        Total borrowings                                                                                                                                            2,857,990                                 11,606                   1.62                        3,382,098                 11,834                      1.40
                                                                                                                                                                    ---------                                 ------                   ----                        ---------                 ------                      ----

        Total interest-bearing liabilities                                                                                                                         20,096,224                                $23,148                  0.46%                      18,574,303                $22,478                     0.49%


    Non-interest-bearing liabilities                                                                                                                                  221,799                                                                                      165,864

        Total liabilities                                                                                                                                          20,318,023                                                                                   18,740,167
                                                                                                                                                                   ----------                                                                                   ----------


    Preferred stock                                                                                                                                                   151,649                                                                                      151,649

    Common shareholders' equity                                                                                                                                     2,198,254                                                                                    2,087,344
                                                                                                                                                                    ---------                                                                                    ---------

    Webster Financial Corp. shareholders' equity                                                                                                                    2,349,903                                                                                    2,238,993

        Total liabilities and equity                                                                                                                              $22,667,926                                                                                  $20,979,160
                                                                                                                                                                  -----------                                                                                  -----------

    Tax-equivalent net interest income                                                                                                                                                                    162,421                                                                      158,314

    Less: tax-equivalent adjustment                                                                                                                                                                       (2,657)                                                                     (3,013)

        Net interest income                                                                                                                                                                              $159,764                                                                     $155,301
                                                                                                                                                                                                         --------                                                                     --------

        Net interest margin                                                                                                                                                                                                       3.10%                                                                          3.26%
                                                                                                                                                                                                                                   ----                                                                            ----


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


    (b) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."



    WEBSTER FINANCIAL CORPORATION
    Five Quarter Loan Balances (unaudited)
    -------------------------------------

    (Dollars in thousands)                                                                                                        March 31,                                                  December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                                                          2015                                                       2014                                                 2014                                                     2014                           2014
    ---                                                                                                                                                   ----                                                       ----                                                 ----                                                     ----                           ----

    Loan Balances (actuals):

      Continuing Portfolio:

       Commercial non-mortgage                                                                                                                      $3,183,218                                                 $3,087,940                                           $2,984,949                                               $2,978,576                     $2,926,223

       Equipment financing                                                                                                                             543,636                                                    537,751                                              490,150                                                  464,948                        457,670

       Asset-based lending                                                                                                                             716,592                                                    661,330                                              647,042                                                  624,565                        585,615

       Commercial real estate                                                                                                                        3,663,071                                                  3,554,428                                            3,354,107                                                3,291,892                      3,143,612

       Residential mortgages                                                                                                                         3,594,272                                                  3,509,174                                            3,455,353                                                3,366,091                      3,356,538

       Consumer                                                                                                                                      2,480,270                                                  2,457,345                                            2,485,870                                                2,449,730                      2,422,377
                                                                                                                                                     ---------                                                  ---------                                            ---------                                                ---------                      ---------

        Total continuing portfolio                                                                                                                  14,181,059                                                 13,807,968                                           13,417,471                                               13,175,802                     12,892,035

        Allowance for loan losses                                                                                                                    (152,825)                                                 (149,813)                                           (145,818)                                               (143,440)                     (141,352)

        Total continuing portfolio, net                                                                                                             14,028,234                                                 13,658,155                                           13,271,653                                               13,032,362                     12,750,683
                                                                                                                                                    ----------                                                 ----------                                           ----------                                               ----------                     ----------

    Liquidating Portfolio:

      National Construction Lending Center (NCLC)                                                                                                            -                                                         1                                                    1                                                        1                              1

      Consumer                                                                                                                                          89,167                                                     92,056                                               96,030                                                   99,577                        102,706
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                        -------

        Total liquidating portfolio                                                                                                                     89,167                                                     92,057                                               96,031                                                   99,578                        102,707

        Allowance for loan losses                                                                                                                      (9,145)                                                   (9,451)                                            (10,664)                                                (11,428)                      (12,248)
                                                                                                                                                        ------                                                     ------                                              -------                                                  -------                        -------

        Total liquidating portfolio, net                                                                                                                80,022                                                     82,606                                               85,367                                                   88,150                         90,459
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------

    Total Loan Balances (actuals)                                                                                                                   14,270,226                                                 13,900,025                                           13,513,502                                               13,275,380                     12,994,742

    Allowance for loan losses                                                                                                                        (161,970)                                                 (159,264)                                           (156,482)                                               (154,868)                     (153,600)

    Loans, net                                                                                                                                     $14,108,256                                                $13,740,761                                          $13,357,020                                              $13,120,512                    $12,841,142
                                                                                                                                                   -----------                                                -----------                                          -----------                                              -----------                    -----------


    Loan Balances (average):

      Continuing Portfolio:

       Commercial non-mortgage                                                                                                                      $3,096,762                                                 $3,036,412                                           $2,987,403                                               $2,963,150                     $2,853,516

       Equipment financing                                                                                                                             542,067                                                    509,331                                              478,333                                                  459,140                        456,391

       Asset-based lending                                                                                                                             675,218                                                    647,952                                              621,856                                                  612,170                        562,443

       Commercial real estate                                                                                                                        3,574,826                                                  3,452,954                                            3,329,767                                                3,195,746                      3,080,575

       Residential mortgages                                                                                                                         3,546,098                                                  3,483,444                                            3,409,010                                                3,361,276                      3,364,746

       Consumer                                                                                                                                      2,468,422                                                  2,491,359                                            2,467,839                                                2,437,452                      2,431,900
                                                                                                                                                     ---------                                                  ---------                                            ---------                                                ---------                      ---------

        Total continuing portfolio                                                                                                                  13,903,393                                                 13,621,452                                           13,294,208                                               13,028,934                     12,749,571

        Allowance for loan losses                                                                                                                    (153,790)                                                 (150,706)                                           (146,863)                                               (143,811)                     (143,676)

        Total continuing portfolio, net                                                                                                             13,749,603                                                 13,470,746                                           13,147,345                                               12,885,123                     12,605,895
                                                                                                                                                    ----------                                                 ----------                                           ----------                                               ----------                     ----------

    Liquidating Portfolio:

      NCLC                                                                                                                                                   1                                                          1                                                    1                                                       53                              1

      Consumer                                                                                                                                          91,088                                                     94,069                                               97,661                                                  100,878                        103,777
                                                                                                                                                        ------                                                     ------                                               ------                                                  -------                        -------

        Total liquidating portfolio                                                                                                                     91,089                                                     94,070                                               97,662                                                  100,931                        103,778

        Allowance for loan losses                                                                                                                      (9,145)                                                   (9,451)                                            (10,664)                                                (11,428)                      (12,248)

        Total liquidating portfolio, net                                                                                                                81,944                                                     84,619                                               86,998                                                   89,503                         91,530
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------

    Total Loan Balances (average)                                                                                                                   13,994,482                                                 13,715,522                                           13,391,870                                               13,129,865                     12,853,349

    Allowance for loan losses                                                                                                                        (162,935)                                                 (160,157)                                           (157,527)                                               (155,239)                     (155,924)
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------

    Loans, net                                                                                                                                     $13,831,547                                                $13,555,365                                          $13,234,343                                              $12,974,626                    $12,697,425
                                                                                                                                                   -----------                                                -----------                                          -----------                                              -----------                    -----------






    WEBSTER FINANCIAL CORPORATION
    Five Quarter Nonperforming Assets (unaudited)
    --------------------------------------------

    (Dollars in thousands)                                                                                                        March 31,                                                  December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                                                          2015                                  2014(a)                                                2014(a)                                               2014(a)                             2014(a)
    ---                                                                                                                                                   ----                                   ------                                                 ------                                                ------                              ------

    Nonperforming loans:

    Continuing Portfolio:

    Commercial non-mortgage                                                                                                                            $27,057                                                     $6,436                                              $12,421                                                  $14,152                        $12,869

    Equipment financing                                                                                                                                    285                                                        518                                                1,659                                                      863                          1,325

    Asset-based lending                                                                                                                                      -                                                         -                                                   -                                                       -                             -

    Commercial real estate                                                                                                                              25,814                                                     18,675                                               18,341                                                   19,023                         20,009

    Residential mortgages                                                                                                                               61,274                                                     64,022                                               67,541                                                   67,722                         65,855

    Consumer                                                                                                                                            33,696                                                     35,770                                               34,566                                                   36,526                         38,670

     Nonperforming loans - continuing portfolio                                                                                                        148,126                                                    125,421                                              134,528                                                  138,286                        138,728
                                                                                                                                                       -------                                                    -------                                              -------                                                  -------                        -------

    Liquidating Portfolio:

    Consumer                                                                                                                                             4,117                                                      4,460                                                4,560                                                    5,475                          5,875

    Total nonperforming loans                                                                                                                         $152,243                                                   $129,881                                             $139,088                                                 $143,761                       $144,603
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------


    Other real estate owned and repossessed assets:

    Continuing Portfolio:

    Commercial                                                                                                                            $                  -                                                    $2,899                                               $2,899                                                   $3,238                         $3,466

    Repossessed equipment                                                                                                                                    -                                                       100                                                  100                                                      100                            123

    Residential                                                                                                                                          3,051                                                      2,280                                                1,712                                                    2,748                          3,721

    Consumer                                                                                                                                             2,252                                                      1,237                                                  515                                                      643                            469

     Total continuing portfolio                                                                                                                          5,303                                                      6,516                                                5,226                                                    6,729                          7,779
                                                                                                                                                         -----                                                      -----                                                -----                                                    -----                          -----

    Liquidating Portfolio:

     Total liquidating portfolio                                                                                                                             -                                                         -                                                   -                                                       -                             -

    Total other real estate owned and repossessed assets                                                                                                $5,303                                                     $6,516                                               $5,226                                                   $6,729                         $7,779
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------

    Total nonperforming assets                                                                                                                        $157,546                                                   $136,397                                             $144,314                                                 $150,490                       $152,382
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------


    (a) Certain previously reported information reflects the reclassification of residential loans from nonperforming loans to accruing past due 90 days or more as their principal and accrued interest are well secured due to government guarantees.






    WEBSTER FINANCIAL CORPORATION
    Five Quarter Past Due Loans (unaudited)
    --------------------------------------

    (Dollars in thousands)                                                                                                        March 31,                                                  December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                                                          2015                                  2014(a)                                                2014(a)                                               2014(a)                             2014(a)
    ---                                                                                                                                                   ----                                   ------                                                 ------                                                ------                              ------

    Past due 30-89 days:

    Continuing Portfolio:

    Commercial non-mortgage                                                                                                                             $3,992                                                     $2,099                                               $8,795                                                   $5,045                         $7,913

    Equipment financing                                                                                                                                    789                                                        701                                                  433                                                      290                            698

    Asset-based lending                                                                                                                                      -                                                         -                                                   -                                                       -                             -

    Commercial real estate                                                                                                                               3,962                                                      2,714                                                1,625                                                    1,610                          2,680

    Residential mortgages                                                                                                                               13,966                                                     17,216                                               15,980                                                   17,826                         18,966

    Consumer                                                                                                                                            18,459                                                     15,867                                               15,852                                                   18,956                         14,552

     Past due 30-89 days - continuing portfolio                                                                                                         41,168                                                     38,597                                               42,685                                                   43,727                         44,809
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------

    Liquidating Portfolio:

    Consumer                                                                                                                                             1,820                                                      1,658                                                1,419                                                    2,105                          2,325

    Total past due 30-89 days                                                                                                                           42,988                                                     40,255                                               44,104                                                   45,832                         47,134
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------

    Loans past due 90 days or more and accruing                                                                                                          2,109                                                      2,087                                                1,980                                                    1,828                          1,368
                                                                                                                                                         -----                                                      -----                                                -----                                                    -----                          -----

    Total past due loans                                                                                                                               $45,097                                                    $42,342                                              $46,084                                                  $47,660                        $48,502
                                                                                                                                                       -------                                                    -------                                              -------                                                  -------                        -------


    (a) Certain previously reported information reflects the reclassification of residential loans from nonperforming loans to accruing past due 90 days or more as their principal and accrued interest are well secured due to government guarantees.






    WEBSTER FINANCIAL CORPORATION
    Five Quarter Changes in the Allowance for Loan Losses (unaudited)
    ----------------------------------------------------------------

                                                                                                                              For the Three Months Ended
                                                                                                                              --------------------------

    (Dollars in thousands)                                                                                                        March 31,                                                  December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                                                          2015                                                       2014                                                 2014                                                     2014                           2014
    ---                                                                                                                                                   ----                                                       ----                                                 ----                                                     ----                           ----

    Beginning balance                                                                                                                                 $159,264                                                   $156,482                                             $154,868                                                 $153,600                       $152,573

    Provision                                                                                                                                            9,750                                                      9,500                                                9,500                                                    9,250                          9,000

    Charge-offs continuing portfolio:

    Commercial non-mortgage                                                                                                                                255                                                      4,097                                                2,738                                                    3,685                          3,148

    Equipment financing                                                                                                                                     15                                                         84                                                  491                                                       20                              -

    Asset-based lending                                                                                                                                      -                                                         -                                                   -                                                       -                             -

    Commercial real estate                                                                                                                               3,153                                                        246                                                  139                                                      447                          2,405

    Residential mortgages                                                                                                                                1,953                                                      1,346                                                1,870                                                    1,840                          1,158

    Consumer                                                                                                                                             3,634                                                      3,648                                                5,078                                                    4,075                          4,517

    Charge-offs continuing portfolio                                                                                                                     9,010                                                      9,421                                               10,316                                                   10,067                         11,228
                                                                                                                                                         -----                                                      -----                                               ------                                                   ------                         ------

    Charge-offs liquidating portfolio:

    NCLC                                                                                                                                                     2                                                          -                                                   -                                                       -                             -

    Consumer                                                                                                                                               662                                                        563                                                1,251                                                    1,211                            369

    Charge-offs liquidating portfolio                                                                                                                      664                                                        563                                                1,251                                                    1,211                            369

    Total charge-offs                                                                                                                                    9,674                                                      9,984                                               11,567                                                   11,278                         11,597
                                                                                                                                                         -----                                                      -----                                               ------                                                   ------                         ------

    Recoveries continuing portfolio:

    Commercial non-mortgage                                                                                                                                989                                                      1,258                                                  967                                                    1,121                            950

    Equipment financing                                                                                                                                    143                                                        702                                                  336                                                      397                            799

    Asset-based lending                                                                                                                                     26                                                          -                                                  50                                                        -                            23

    Commercial real estate                                                                                                                                 202                                                        217                                                  120                                                       69                            479

    Residential mortgages                                                                                                                                  104                                                        291                                                  250                                                      495                            108

    Consumer                                                                                                                                               821                                                        636                                                1,770                                                      923                            865

    Recoveries continuing portfolio                                                                                                                      2,285                                                      3,104                                                3,493                                                    3,005                          3,224
                                                                                                                                                         -----                                                      -----                                                -----                                                    -----                          -----

    Recoveries liquidating portfolio:

    NCLC                                                                                                                                                     4                                                          5                                                   11                                                       12                            152

    Consumer                                                                                                                                               341                                                        157                                                  177                                                      279                            248

    Recoveries liquidating portfolio                                                                                                                       345                                                        162                                                  188                                                      291                            400

    Total recoveries                                                                                                                                     2,630                                                      3,266                                                3,681                                                    3,296                          3,624
                                                                                                                                                         -----                                                      -----                                                -----                                                    -----                          -----

    Total net charge-offs                                                                                                                                7,044                                                      6,718                                                7,886                                                    7,982                          7,973
                                                                                                                                                         -----                                                      -----                                                -----                                                    -----                          -----

    Ending balance                                                                                                                                    $161,970                                                   $159,264                                             $156,482                                                 $154,868                       $153,600
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------







    WEBSTER FINANCIAL CORPORATION
    Reconciliations to GAAP Financial Measures
    ------------------------------------------


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


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


    See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014. The Company believes the use of these non-GAAP financial measures provides additional clarity
     in assessing the results of the Company. Other companies may define or calculate supplemental financial data differently.


                                                                                                                           At or for the Three Months Ended
                                                                                                                           --------------------------------

    (Dollars in thousands, except per share data)                                                                                 March 31,                                                  December 31,                                          September 30,                                            June 30,                           March 31,
                                                                                                                                                          2015                                  2014(a)                                                2014(a)                                               2014(a)                             2014(a)
    ---                                                                                                                                                   ----                                   ------                                                 ------                                                ------                              ------

    Reconciliation of net income available to common shareholders to net income used for computing the  return on average tangible common
     shareholders' equity ratio
    -------------------------------------------------------------------------------------------------------------------------------------

    Net income available to common shareholders                                                                                                        $47,083                                                    $48,367                                              $47,818                                                  $45,195                        $47,790

    Amortization of intangibles (tax-affected @ 35%)                                                                                                      837                                                        270                                                  281                                                      435                            759
                                                                                                                                                           ---                                                        ---                                                  ---                                                      ---                            ---

    Quarterly net income adjusted for amortization of intangibles                                                                                       47,920                                                     48,637                                               48,099                                                   45,630                         48,549

    Annualized net income used in the return on average tangible common shareholders' equity
     ratio                                                                                                                                            $191,680                                                   $194,548                                             $192,396                                                 $182,520                       $194,196
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------


    Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
    -----------------------------------------------------------------------------------------------------

    Average common shareholders' equity                                                                                                             $2,198,254                                                 $2,189,191                                           $2,155,246                                               $2,119,160                     $2,087,344

    Average goodwill                                                                                                                                 (537,147)                                                 (529,887)                                           (529,887)                                               (529,887)                     (529,887)

    Average intangible assets (excluding mortgage servicing rights)                                                                                   (39,559)                                                   (2,862)                                             (3,294)                                                 (3,762)                       (4,754)
                                                                                                                                                       -------                                                     ------                                               ------                                                   ------

    Average tangible common shareholders' equity                                                                                                    $1,621,548                                                 $1,656,442                                           $1,622,065                                               $1,585,511                     $1,552,703
                                                                                                                                                    ----------                                                 ----------                                           ----------                                               ----------                     ----------


    Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity
    ---------------------------------------------------------------------------------------------

    Shareholders' equity                                                                                                                            $2,355,575                                                 $2,322,815                                           $2,310,993                                               $2,284,622                     $2,239,795

    Goodwill                                                                                                                                         (538,373)                                                 (529,887)                                           (529,887)                                               (529,887)                     (529,887)

    Intangible assets (excluding mortgage servicing rights)                                                                                           (44,378)                                                   (2,666)                                             (3,082)                                                 (3,515)                       (4,183)

    Tangible shareholders' equity                                                                                                                   $1,772,824                                                 $1,790,262                                           $1,778,024                                               $1,751,220                     $1,705,725
                                                                                                                                                    ----------                                                 ----------                                           ----------                                               ----------                     ----------


    Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity
    -------------------------------------------------------------------------------------------------------

    Shareholders' equity                                                                                                                            $2,355,575                                                 $2,322,815                                           $2,310,993                                               $2,284,622                     $2,239,795

    Preferred stock                                                                                                                                  (151,649)                                                 (151,649)                                           (151,649)                                               (151,649)                     (151,649)
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------

    Common shareholders' equity                                                                                                                      2,203,926                                                  2,171,166                                            2,159,344                                                2,132,973                      2,088,146

    Goodwill                                                                                                                                         (538,373)                                                 (529,887)                                           (529,887)                                               (529,887)                     (529,887)

    Intangible assets (excluding mortgage servicing rights)                                                                                           (44,378)                                                   (2,666)                                             (3,082)                                                 (3,515)                       (4,183)

    Tangible common shareholders' equity                                                                                                            $1,621,175                                                 $1,638,613                                           $1,626,375                                               $1,599,571                     $1,554,076
                                                                                                                                                    ----------                                                 ----------                                           ----------                                               ----------                     ----------


    Reconciliation of period-end assets to period-end tangible assets
    -----------------------------------------------------------------

    Assets                                                                                                                                         $23,106,688                                                $22,533,172                                          $21,827,046                                              $21,524,484                    $21,175,913

    Goodwill                                                                                                                                         (538,373)                                                 (529,887)                                           (529,887)                                               (529,887)                     (529,887)

    Intangible assets (excluding mortgage servicing rights)                                                                                           (44,378)                                                   (2,666)                                             (3,082)                                                 (3,515)                       (4,183)

    Tangible assets                                                                                                                                $22,523,937                                                $22,000,619                                          $21,294,077                                              $20,991,082                    $20,641,843
                                                                                                                                                   -----------                                                -----------                                          -----------                                              -----------                    -----------


    Book value per common share
    ---------------------------

    Common shareholders' equity                                                                                                                     $2,203,926                                                 $2,171,166                                           $2,159,344                                               $2,132,973                     $2,088,146

    Ending common shares issued and outstanding (in thousands)                                                                                          90,715                                                     90,512                                               90,248                                                   90,246                         90,269

    Book value per share of common stock                                                                                                                $24.29                                                     $23.99                                               $23.93                                                   $23.64                         $23.13
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------


    Tangible book value per common share
    ------------------------------------

    Tangible common shareholders' equity                                                                                                            $1,621,175                                                 $1,638,613                                           $1,626,375                                               $1,599,571                     $1,554,076

    Ending common shares issued and outstanding (in thousands)                                                                                          90,715                                                     90,512                                               90,248                                                   90,246                         90,269

    Tangible book value per common share                                                                                                                $17.87                                                     $18.10                                               $18.02                                                   $17.72                         $17.22
                                                                                                                                                        ------                                                     ------                                               ------                                                   ------                         ------


    Reconciliation of non-interest expense to non-interest expense used in the efficiency ratio
    -------------------------------------------------------------------------------------------

    Non-interest expense                                                                                                                              $134,090                                                   $130,164                                             $124,498                                                 $122,475                       $124,463

    Foreclosed property expense                                                                                                                          (169)                                                     (244)                                               (387)                                                   (134)                         (458)

    Intangible assets amortization                                                                                                                     (1,288)                                                     (416)                                               (432)                                                   (669)                       (1,168)

    Other expense                                                                                                                                      (1,011)                                                   (2,467)                                                 638                                                       49                             48

    Non-interest expense used in the efficiency ratio                                                                                                 $131,622                                                   $127,037                                             $124,317                                                 $121,721                       $122,885
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------


    Reconciliation of income to income used in the efficiency ratio
    ---------------------------------------------------------------

    Net interest income before provision for loan losses                                                                                              $159,764                                                   $160,648                                             $157,370                                                 $155,122                       $155,301

    Fully taxable-equivalent adjustment                                                                                                                  2,657                                                      2,628                                                2,700                                                    2,783                          3,013

    Non-interest income                                                                                                                                 57,890                                                     53,775                                               50,909                                                   47,596                         49,828

    Net gain on investment securities                                                                                                                     (43)                                                   (1,121)                                                (42)                                                       -                       (4,336)

    Other                                                                                                                                                    -                                                       899                                                   85                                                       73                             88

    Income used in the efficiency ratio                                                                                                               $220,268                                                   $216,829                                             $211,022                                                 $205,574                       $203,894
                                                                                                                                                      --------                                                   --------                                             --------                                                 --------                       --------


    (a) Certain previously reported information reflects the retrospective application of ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects."

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/webster-reports-2015-first-quarter-earnings-300066921.html

SOURCE Webster Financial Corporation