Exhibit 99.1

Media Contact	Investor Contact
Alice Ferreira, 203-578-2610	Terry Mangan, 203-578-2318
acferreira@websterbank.com	tmangan@websterbank.com

WEBSTER REPORTS

THIRD QUARTER 2019 EARNINGS OF $1.00 PER DILUTED SHARE

WATERBURY, Conn., October 22, 2019 - Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced earnings applicable to common shareholders of $91.4 million, or $1.00 per diluted share, for the quarter ended September 30, 2019, compared to $97.5 million, or $1.06 per diluted share, for the quarter ended September 30, 2018. Earnings per diluted share would have been $1.01 for the quarter ended September 30, 2019, adjusting for $1.7 million of one-time business optimization costs, compared to $0.98 for the quarter ended September 30, 2018, adjusting for a one-time net benefit of $5.6 million.

“The third quarter continues to demonstrate the power of our banking franchise as evidenced by strong year-over-year loan and deposit growth,” said John R. Ciulla, president and chief executive officer. “We have now posted 40 consecutive quarters of year-over-year revenue growth and seven quarters of return on average tangible common equity above 15 percent.”

Highlights for the third quarter of 2019 compared to prior year:

• Revenue of $310.5 million, an increase of 2.6 percent.

• Loan growth of $1.2 billion, or 6.7 percent, led by commercial real estate and residential mortgage loans, which increased11.8 percent.

• Deposit growth of $1.3 billion, or 5.8 percent, with growth of $689 million, or 12.3 percent, in HSA deposits.

• Net interest margin of 3.49 percent, down12 basis points, with 5 basis points of the reduction due to balance sheet repositioning.

• Pre-tax, pre-provision net revenue growth of $6.7 million, or 5.4 percent, led by HSA Bank’s growth of 16.6 percent.

• Efficiency ratio (non-GAAP) of 56.6 percent compared to 57.4 percent.

• Annualized return on average common shareholders’ equity of 12.36 percent compared to 14.74 percent; annualized return on average tangible common shareholders’ equity (non-GAAP) of 15.37 percent compared to 18.88 percent.

“We’ve achieved our tenth consecutive quarter of positive operating leverage and our efficiency ratio has been below 57 percent over the past year,” said Glenn MacInnes, executive vice president and chief financial officer. “We’re diligently controlling expenses while investing confidently in our future.”

Line of Business performance compared to the third quarter of 2018

Commercial Banking

Webster’s Commercial Banking segment serves middle market, commercial real estate, asset-based lending, equipment finance, private banking, and treasury and payment solutions clients. As of September 30, 2019, Commercial Banking had $11.1 billion in loans and leases and $4.5 billion in deposit balances.

Commercial Banking Operating Results:

						Percent
	Three months ended September 30,					Favorable/
(In thousands)		2019		2018		(Unfavorable)
Net interest income			$96,817		$91,243		6.1	%
Non-interest income		13,987		18,305			(23.6	)
Operating revenue		110,804		109,548			1.1
Non-interest expense		45,261		44,506			(1.7	)
Pre-tax, pre-provision net revenue			$65,543		$65,042		0.8
						Percent
		At September 30,				Increase/
(In millions)		2019		2018		(Decrease)
Loans and leases			$11,121		$10,289		8.1	%
Deposits		4,528		4,251			6.5

Pre-tax, pre-provision net revenue increased$0.5 million to $65.5 million in the quarter as compared to prior year. Net interest income increased$5.6 million to $96.8 million, primarily due to loan growth. Non-interest income decreased$4.3 million to $14.0 million, primarily due to lower syndication fees in the quarter. Non-interest expense increased$0.8 million to $45.3 million, primarily due to strategic hires and investments in product enhancements and infrastructure.

HSA Bank

Webster’s HSA Bank division offers a comprehensive consumer-directed healthcare solution that includes health savings accounts, health reimbursement arrangements, flexible spending accounts and commuter benefits. Health savings accounts are distributed nationwide directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants and financial advisors. As of September 30, 2019, HSA Bank had $8.2 billion in total footings comprising $6.3 billion in deposit balances and $1.9 billion in assets under administration through linked investment accounts.

HSA Bank Operating Results:

						Percent
	Three months ended September 30,					Favorable/
(In thousands)		2019		2018		(Unfavorable)
Net interest income			$42,206		$36,731		14.9	%
Non-interest income		23,526		22,159			6.2
Operating revenue		65,732		58,890			11.6
Non-interest expense		32,918		30,753			(7.0	)
Pre-tax, net revenue			$32,814		$28,137		16.6
						Percent
		At September 30,				Increase/
(Dollars in millions)		2019		2018		(Decrease)
Number of accounts (thousands)		2,992		2,702			10.7	%
Deposits			$6,288		$5,600		12.3
Linked investment accounts *		1,875		1,599			17.3
Total footings			$8,163		$7,199		13.4
* Linked investment accounts are held off balance sheet

Pre-tax net revenue increased$4.7 million to $32.8 million in the quarter as compared to prior year. Net interest income increased$5.5 million to $42.2 million, due to 12 percent growth in deposits and improvement in deposit spreads. Non-interest income increased$1.4 million to $23.5 million, primarily due to 11 percent growth in accounts over the past year. Non-interest expense increased$2.2 million to $32.9 million, primarily due to account growth and expanded distribution.

Community Banking

Community Banking serves consumer and business banking customers primarily throughout southern New England and into Westchester County, New York. Community Banking is comprised of the Personal Banking and Business Banking operating segments, as well as a distribution network consisting of 157 banking centers and 309 ATMs, a customer care center, and a full range of web and mobile-based banking services. As of September 30, 2019, Community Banking had $8.4 billion in loans and $12.5 billion in deposit balances.

Community Banking Operating Results:

						Percent
	Three months ended September 30,					Favorable/
(In thousands)		2019		2018		(Unfavorable)
Net interest income			$99,459		$101,952		(2.4	)%
Non-interest income		28,115		26,848			4.7
Operating revenue		127,574		128,800			(1.0	)
Non-interest expense *		99,835		95,769			(4.2	)
Pre-tax, pre-provision net revenue			$27,739		$33,031		(16.0	)
						Percent
		At September 30,				Increase/
(In millions)		2019		2018		(Decrease)
Loans			$8,430		$8,032		5.0	%
Deposits		12,462		11,798			5.6

* Non-interest expense for the three months ended September 30, 2019 includes $1.7 million in business optimization costs.

Pre-tax, pre-provision net revenue decreased$5.3 million to $27.7 million in the quarter as compared to prior year. Net interest income decreased$2.5 million to $99.5 million, due to declining interest rates on loans coupled with an increase in deposit costs; which was partially offset by balance growth in the loan and deposit portfolios. Non-interest income increased$1.3 million due to increased income from mortgage banking activities, as well as increases in both deposit and loan related fee income. Non-interest expense increased$4.1 million to $99.8 million driven by increased employee related expenses and continued investments in technology.

Consolidated financial performance:

Quarterly net interest income compared to the third quarter of 2018:

• Net interest income was $240.5 million compared to $230.4 million.

• Net interest margin was 3.49 percent compared to 3.61 percent. The yield on interest-earning assets increased by 5 basis points, and the cost of interest-bearing liabilities increased by 18 basis points.

• Average interest-earning assets totaled $27.6 billion and grew by $2.2 billion, or 8.7 percent.

• Average loans totaled $19.5 billion and grew by $1.4 billion, or 7.8 percent.

• Average deposits totaled $23.2 billion and grew by $1.2 billion, or 5.7 percent.

Quarterly provision for loan losses:

• The provision for loan losses was $11.3 million, compared to $11.9 million in the prior quarter and $10.5 million a year ago.

• Net charge-offs were $13.8 million, compared to $11.6 million in the prior quarter and $6.0 million a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.28 percent, compared to 0.24 percent in the prior quarter and 0.13 percent a year ago.

• The allowance for loan losses represented 1.07 percent of total loans at September 30, 2019, compared to 1.10 percent at June 30, 2019 and 1.16 percent at September 30, 2018. The allowance for loan losses represented 129 percent of nonperforming loans at September 30, 2019 compared to 143 percent at June 30, 2019 and 139 percent at September 30, 2018.

Quarterly non-interest income compared to the third quarter of 2018:

• Total non-interest income was $69.9 million, compared to $72.3 million, a decrease of $2.4 million. This reflects a decrease of $2.5 million in loan related fees primarily related to syndication fees, and $1.9 million in other income primarily related to client hedging income, offset by a $1.4 million increase in HSA fee income driven by account fees and interchange revenue due to account growth.

Quarterly non-interest expense compared to the third quarter of 2018:

• Total non-interest expense was $179.9 million, compared to $178.8 million, an increase of $1.1 million. The increase reflects increases of $2.0 million in compensation and benefits due to annual merit increases and other benefits, $1.6 million in technology/equipment, and $2.1 million in other expenses primarily due to optimization costs related to technology. Offsetting these increases were decreases of $5.3 million in deposit insurance which reflects prior period one-time charges of $2.9 million and the benefit of a fully funded deposit insurance fund, and $0.8 million in pension costs.

Quarterly income taxes compared to the third quarter of 2018:

• Income tax expense was $25.4 million compared to $13.7 million and the effective tax rate was 21.3 percent compared to 12.1 percent.

• The year-ago period included $8.5 million of discrete tax benefits attributable to tax planning and a higher level of other discrete tax benefits, primarily excess tax benefits from stock-based compensation.

Investment securities:

• Total investment securities were $8.2 billion, compared to $7.6 billion at June 30, 2019 and $7.2 billion at September 30, 2018. The carrying value of the available-for-sale portfolio included $20.9 million of net unrealized gains, compared to $12.0 million at June 30, 2019 and $105.1 million of net unrealized losses at September 30, 2018. The carrying value of the held-to-maturity portfolio does not reflect $92.2 million of net unrealized gains, compared to $37.8 million at June 30, 2019 and $168.1 million of net unrealized losses at September 30, 2018.

Loans:

• Total loans were $19.6 billion, compared to $19.3 billion at June 30, 2019 and $18.3 billion at September 30, 2018. Compared to June 30, 2019, commercial real estate loans increased by $173.7 million and residential mortgages increased by $155.0 million while consumer loans decreased by $31.3 million and commercial loans decreased by $15.6 million.

• Compared to a year ago, commercial real estate loans increased by $626.8 million, residential mortgages increased by $458.7 million, and commercial loans increased by $316.4 million, while consumer loans decreased by $171.2 million.

• Loan originations for portfolio were $1.610 billion, compared to $1.382 billion in the prior quarter and $1.375 billion a year ago. In addition, $73 million of residential loans were originated for sale in the quarter, compared to $41 million in the prior quarter and $55 million a year ago.

Asset quality:

• Total nonperforming loans were $162.7 million, or 0.83 percent of total loans, compared to $148.1 million, or 0.77 percent, at June 30, 2019 and $152.7 million, or 0.83 percent, at September 30, 2018. Total paying nonperforming loans were $71.9 million, compared to $52.9 million at June 30, 2019 and $28.9 million at September 30, 2018.

• Past due loans were $35.6 million, compared to $32.3 million at June 30, 2019 and $39.2 million at September 30, 2018.

Deposits and borrowings:

• Total deposits were $23.3 billion, compared to $22.6 billion at June 30, 2019 and $22.0 billion at September 30, 2018. Core deposits to total deposits were 86.0 percent, compared to 85.3 percent at June 30, 2019 and 85.9 percent at September 30, 2018. The loan to deposit ratio was 84.0 percent, compared to 85.3 percent at June 30, 2019 and 83.3 percent at September 30, 2018.

• Total borrowings were $3.2 billion, compared to $2.9 billion at June 30, 2019 and $2.2 billion at September 30, 2018.

Capital:

• The return on average common shareholders’ equity and the return on average tangible common shareholders’ equity were 12.36 percent and 15.37 percent, respectively, compared to 14.74 percent and 18.88 percent, respectively, in the third quarter of 2018.

• The tangible equity and tangible common equity ratios were 8.83percent and 8.34 percent, respectively, compared to 8.41 percent and 7.86 percent, respectively, at September 30, 2018. The common equity tier 1 risk-based capital ratio was 11.61 percent, compared to 11.23 percent at September 30, 2018.

• Book value and tangible book value per common share were $32.68 and $26.58, respectively, compared to $28.96 and $22.83, respectively, at September 30, 2018.

***

Webster Financial Corporation is the holding company for Webster Bank, National Association and its HSA Bank division. With $29.9 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 157 banking centers and 309 ATMs. Webster also provides mobile and Internet banking. 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 2019third quarter earnings announcement will be held today, Tuesday, October 22, 2019 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 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 and cyber-security matters; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, financial holding companies, and other financial services 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 the impact of recent changes with respect to the recognition of credit losses; (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; (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 headings “Risk Factors” and “Management Discussion and Analysis of Financial Condition and Results of Operation.” 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. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Income and performance ratios:
Net income	$	93,865		$	98,649		$	99,736		$	98,838		$	99,673
Earnings applicable to common shareholders	91,442			96,193			97,549			96,666			97,460
Earnings per diluted common share	1.00			1.05			1.06			1.05			1.06
Return on average assets	1.27		%	1.38		%	1.44		%	1.44		%	1.47		%
Return on average tangible common shareholders' equity (non-GAAP)	15.37			16.88			17.70			18.22			18.88
Return on average common shareholders’ equity	12.36			13.47			14.01			14.31			14.74
Non-interest income as a percentage of total revenue	22.52			23.88			22.12			23.58			23.88
Asset quality:
Allowance for loan and lease losses	$	209,152		$	211,671		$	211,389		$	212,353		$	211,832
Nonperforming assets	166,716			153,247			164,431			161,617			157,967
Allowance for loan and lease losses / total loans and leases	1.07		%	1.10		%	1.12		%	1.15		%	1.16		%
Net charge-offs / average loans and leases (annualized)	0.28			0.24			0.21			0.21			0.13
Nonperforming loans and leases / total loans and leases	0.83			0.77			0.84			0.84			0.83
Nonperforming assets / total loans and leases plus OREO	0.85			0.80			0.87			0.87			0.86
Allowance for loan and lease losses / nonperforming loans and leases	128.55			142.97			133.01			137.22			138.76
Other ratios:
Tangible equity (non-GAAP)	8.83		%	8.82		%	8.68		%	8.59		%	8.41		%
Tangible common equity (non-GAAP)	8.34			8.31			8.16			8.05			7.86
Tier 1 risk-based capital(a)	12.29			12.09			12.17			12.16			11.96
Total risk-based capital (a)	13.65			13.48			13.60			13.63			13.44
Common equity tier 1 risk-based capital(a)	11.61			11.41			11.46			11.44			11.23
Shareholders’ equity / total assets	10.54			10.59			10.50			10.45			10.30
Net interest margin	3.49			3.63			3.74			3.66			3.61
Efficiency ratio (non-GAAP)	56.60			56.09			55.93			56.19			57.41
Equity and share related:
Common equity	$	3,007,357		$	2,920,180		$	2,821,218		$	2,741,478		$	2,671,161
Book value per common share	32.68			31.74			30.62			29.72			28.96
Tangible book value per common share (non-GAAP)	26.58			25.63			24.51			23.60			22.83
Common stock closing price	46.87			47.77			50.67			49.29			58.96
Dividends declared per common share	0.40			0.40			0.33			0.33			0.33
Common shares issued and outstanding	92,034			92,007			92,125			92,247			92,230
Weighted-average common shares outstanding - Basic	91,559			91,534			91,962			91,971			91,959
Weighted-average common shares outstanding - Diluted	91,874			91,855			92,225			92,202			92,208
(a) Presented as projected for September 30, 2019 and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	September 30, 2019			June 30, 2019			September 30, 2018
Assets:
Cash and due from banks	$	227,966		$	190,828		$	222,234
Interest-bearing deposits	74,865			26,652			99,746
Securities:
Available for sale	2,960,103			2,978,657			2,823,953
Held to maturity	5,193,521			4,636,707			4,332,458
Total securities	8,153,624			7,615,364			7,156,411
Loans held for sale	27,061			19,249			17,137
Loans and Leases:
Commercial	7,009,884			7,025,506			6,693,450
Commercial real estate	5,398,084			5,224,382			4,771,325
Residential mortgages	4,873,726			4,718,704			4,415,063
Consumer	2,269,952			2,301,291			2,441,181
Total loans and leases	19,551,646			19,269,883			18,321,019
Allowance for loan and lease losses	(209,152		)	(211,671		)	(211,832		)
Loans and leases, net	19,342,494			19,058,212			18,109,187
Federal Home Loan Bank and Federal Reserve Bank stock	116,984			118,371			133,740
Premises and equipment, net	278,642			278,227			128,507
Goodwill and other intangible assets, net	561,252			562,214			565,099
Cash surrender value of life insurance policies	549,335			546,963			539,923
Deferred tax asset, net	59,956			73,462			92,910
Accrued interest receivable and other assets	502,921			452,501			281,423
Total Assets	$	29,895,100		$	28,942,043		$	27,346,317
Liabilities and Shareholders' Equity:
Deposits:
Demand	$	4,291,659		$	4,174,806		$	4,231,505
Health savings accounts	6,288,218			6,212,372			5,599,596
Interest-bearing checking	2,619,452			2,636,109			2,587,679
Money market	2,560,918			2,073,006			2,376,649
Savings	4,264,853			4,169,492			4,106,942
Certificates of deposit	3,249,860			3,291,617			2,746,884
Brokered certificates of deposit	5,705			41,376			348,368
Total deposits	23,280,665			22,598,778			21,997,623
Securities sold under agreements to repurchase and other borrowings	1,210,692			956,920			564,488
Federal Home Loan Bank advances	1,392,849			1,426,656			1,441,884
Long-term debt	549,158			538,379			225,957
Accrued expenses and other liabilities	309,342			356,093			300,167
Total liabilities	26,742,706			25,876,826			24,530,119
Preferred stock	145,037			145,037			145,037
Common shareholders' equity	3,007,357			2,920,180			2,671,161
Total shareholders’ equity	3,152,394			3,065,217			2,816,198
Total Liabilities and Shareholders' Equity	$	29,895,100		$	28,942,043		$	27,346,317

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share data)	2019			2018			2019			2018
Interest income:
Interest and fees on loans and leases	$	236,453		$	215,448		$	701,166		$	616,488
Interest and dividends on securities	57,517			52,707			170,958			157,789
Loans held for sale	166			208			459			498
Total interest income	294,136			268,363			872,583			774,775
Interest expense:
Deposits	34,214			24,397			97,991			62,778
Borrowings	19,383			13,594			50,715			42,447
Total interest expense	53,597			37,991			148,706			105,225
Net interest income	240,539			230,372			723,877			669,550
Provision for loan and lease losses	11,300			10,500			31,800			32,000
Net interest income after provision for loan and lease losses	229,239			219,872			692,077			637,550
Non-interest income:
Deposit service fees	41,410			40,601			127,552			121,911
Loan and lease related fees	8,246			10,782			22,623			24,111
Wealth and investment services	8,496			8,412			24,456			24,738
Mortgage banking activities	2,133			1,305			3,829			3,684
Increase in cash surrender value of life insurance policies	3,708			3,706			10,942			10,921
Other income	5,938			7,478			24,994			24,040
Total non-interest income	69,931			72,284			214,396			209,405
Non-interest expense:
Compensation and benefits	98,623			96,640			294,935			284,457
Occupancy	14,087			14,502			42,802			45,489
Technology and equipment	26,180			24,553			77,644			73,019
Marketing	4,758			4,052			12,329			12,493
Professional and outside services	5,024			4,930			16,706			14,099
Intangible assets amortization	961			961			2,885			2,885
Loan workout expenses	986			681			2,478			2,101
Deposit insurance	4,409			9,694			13,292			30,098
Other expenses	24,866			22,770			73,149			66,216
Total non-interest expense	179,894			178,783			536,220			530,857
Income before income taxes	119,276			113,373			370,253			316,098
Income tax expense	25,411			13,700			78,003			54,518
Net income	93,865			99,673			292,250			261,580
Preferred stock dividends and other	(2,423		)	(2,213		)	(7,331		)	(6,540		)
Earnings applicable to common shareholders	$	91,442		$	97,460		$	284,919		$	255,040
Weighted-average common shares outstanding - Diluted	91,874			92,208			91,883			92,221
Earnings per common share:
Basic	$	1.00		$	1.06		$	3.11		$	2.77
Diluted	1.00			1.06			3.10			2.77

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Interest income:
Interest and fees on loans and leases	$	236,453		$	235,949		$	228,764		$	225,961		$	215,448
Interest and dividends on securities	57,517			56,163			57,278			54,301			52,707
Loans held for sale	166			145			148			130			208
Total interest income	294,136			292,257			286,190			280,392			268,363
Interest expense:
Deposits	34,214			32,757			31,020			27,629			24,397
Borrowings	19,383			17,713			13,619			15,632			13,594
Total interest expense	53,597			50,470			44,639			43,261			37,991
Net interest income	240,539			241,787			241,551			237,131			230,372
Provision for loan and lease losses	11,300			11,900			8,600			10,000			10,500
Net interest income after provision for loan and lease losses	229,239			229,887			232,951			227,131			219,872
Non-interest income:
Deposit service fees	41,410			43,118			43,024			40,272			40,601
Loan and lease related fees	8,246			6,558			7,819			7,914			10,782
Wealth and investment services	8,496			8,309			7,651			8,105			8,412
Mortgage banking activities	2,133			932			764			740			1,305
Increase in cash surrender value of life insurance policies	3,708			3,650			3,584			3,693			3,706
Other income	5,938			13,286			5,770			12,439			7,478
Total non-interest income	69,931			75,853			68,612			73,163			72,284
Non-interest expense:
Compensation and benefits	98,623			98,527			97,785			97,039			96,640
Occupancy	14,087			14,019			14,696			13,974			14,502
Technology and equipment	26,180			25,767			25,697			24,858			24,553
Marketing	4,758			4,243			3,328			4,345			4,052
Professional and outside services	5,024			5,634			6,048			6,201			4,930
Intangible assets amortization	961			962			962			962			961
Loan workout expenses	986			832			660			1,150			681
Deposit insurance	4,409			4,453			4,430			4,651			9,694
Other expenses	24,866			26,203			22,080			21,579			22,770
Total non-interest expense	179,894			180,640			175,686			174,759			178,783
Income before income taxes	119,276			125,100			125,877			125,535			113,373
Income tax expense	25,411			26,451			26,141			26,697			13,700
Net income	93,865			98,649			99,736			98,838			99,673
Preferred stock dividends and other	(2,423		)	(2,456		)	(2,187		)	(2,172		)	(2,213		)
Earnings applicable to common shareholders	$	91,442		$	96,193		$	97,549		$	96,666		$	97,460
Weighted-average common shares outstanding - Diluted	91,874			91,855			92,225			92,202			92,208
Earnings per common share:
Basic	$	1.00		$	1.05		$	1.06		$	1.05		$	1.06
Diluted	1.00			1.05			1.06			1.05			1.06

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Three Months Ended September 30,
			2019							2018
(Dollars in thousands)	Average balance		Interest			Yield/rate		Average balance		Interest			Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	19,473,293	$	237,131		4.80	%	$	18,060,842	$	216,065		4.71	%
Investment securities (a)	7,929,568		57,810			2.93		7,104,625		52,342			2.91
Federal Home Loan and Federal Reserve Bank stock	104,975		1,120			4.23		126,558		1,586			4.97
Interest-bearing deposits	63,751		345			2.12		72,157		334			1.81
Loans held for sale	20,301		166			3.29		20,291		208			4.10
Total interest-earning assets	27,591,888		$	296,572		4.25	%	25,384,473		$	270,535		4.20	%
Non-interest-earning assets	1,965,521							1,663,012
Total Assets	$	29,557,409						$	27,047,485
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	4,322,932	$	—		—	%	$	4,257,448	$	—		—	%
Health savings accounts	6,274,341		3,135			0.20		5,576,417		2,793			0.20
Interest-bearing checking, money market and savings	9,256,189		14,697			0.63		9,135,736		9,827			0.43
Certificates of deposit	3,301,588		16,382			1.97		2,935,663		11,777			1.59
Total deposits	23,155,050		34,214			0.59		21,905,264		24,397			0.44
Securities sold under agreements to repurchase and other borrowings	1,362,877		6,571			1.89		729,154		3,084			1.66
Federal Home Loan Bank advances	1,017,787		6,910			2.66		1,155,768		7,685			2.60
Long-term debt (a)	543,869		5,902			4.52		225,926		2,825			5.00
Total borrowings	2,924,533		19,383			2.63		2,110,848		13,594			2.53
Total interest-bearing liabilities	26,079,583		$	53,597		0.81	%	24,016,112		$	37,991		0.63	%
Non-interest-bearing liabilities	359,135							234,564
Total liabilities	26,438,718							24,250,676
Preferred stock	145,037							145,037
Common shareholders' equity	2,973,654							2,651,772
Total shareholders' equity	3,118,691							2,796,809
Total Liabilities and Shareholders' Equity	$	29,557,409						$	27,047,485
Tax-equivalent net interest income			242,975							232,544
Less: tax-equivalent adjustments			(2,436		)					(2,172		)
Net interest income			$	240,539						$	230,372
Net interest margin						3.49	%						3.61	%
(a) For purposes of yield/rate computation, unrealized gain (loss) balances on securities available for sale and senior fixed-rate notes hedges are excluded.

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Nine Months Ended September 30,
			2019							2018
(Dollars in thousands)	Average balance		Interest			Yield/rate		Average balance		Interest			Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	19,007,780	$	703,136		4.90	%	$	17,901,888	$	618,419		4.58	%
Investment securities (a)	7,572,687		171,265			3.01		7,135,037		157,108			2.91
Federal Home Loan and Federal Reserve Bank stock	108,716		3,949			4.86		130,947		4,587			4.68
Interest-bearing deposits	56,449		983			2.30		63,807		782			1.62
Loans held for sale	19,013		459			3.22		17,292		498			3.84
Total interest-earning assets	26,764,645		$	879,792		4.36	%	25,248,971		$	781,394		4.09	%
Non-interest-earning assets	1,872,632							1,645,331
Total Assets	$	28,637,277						$	26,894,302
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	4,261,060	$	—		—	%	$	4,177,004	$	—		—	%
Health savings accounts	6,213,150		9,150			0.20		5,508,325		8,152			0.20
Interest-bearing checking, money market and savings	9,050,853		40,622			0.60		9,172,498		25,399			0.37
Certificates of deposit	3,290,044		48,219			1.96		2,710,917		29,227			1.44
Total deposits	22,815,107		97,991			0.57		21,568,744		62,778			0.39
Securities sold under agreements to repurchase and other borrowings	918,864		13,227			1.90		824,203		10,722			1.72
Federal Home Loan Bank advances	1,084,332		22,467			2.73		1,288,410		23,437			2.40
Long-term debt (a)	441,329		15,021			4.63		225,863		8,288			4.89
Total borrowings	2,444,525		50,715			2.75		2,338,476		42,447			2.40
Total interest-bearing liabilities	25,259,632		$	148,706		0.78	%	23,907,220		$	105,225		0.59	%
Non-interest-bearing liabilities	353,346							228,892
Total liabilities	25,612,978							24,136,112
Preferred stock	145,037							145,078
Common shareholders' equity	2,879,262							2,613,112
Total shareholders' equity	3,024,299							2,758,190
Total Liabilities and Shareholders' Equity	$	28,637,277						$	26,894,302
Tax-equivalent net interest income			731,086							676,169
Less: tax-equivalent adjustments			(7,209		)					(6,619		)
Net interest income			$	723,877						$	669,550
Net interest margin						3.62	%						3.54	%
(a) For purposes of yield/rate computation, unrealized gain (loss) balances on securities available for sale and senior fixed-rate notes hedges are excluded.

WEBSTER FINANCIAL CORPORATION Five Quarter Loan and Lease Balances(unaudited)
(Dollars in thousands)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Loan and Lease Balances (actual):
Commercial non-mortgage	$	5,887,119		$	5,948,388		$	5,811,309		$	5,755,832		$	5,724,405
Asset-based lending	1,122,765			1,077,118			1,039,633			969,171			969,045
Commercial real estate	5,398,084			5,224,382			4,991,825			4,927,145			4,771,325
Residential mortgages	4,873,726			4,718,704			4,631,787			4,416,637			4,415,063
Consumer	2,269,952			2,301,291			2,339,736			2,396,704			2,441,181
Total Loan and Lease Balances	19,551,646			19,269,883			18,814,290			18,465,489			18,321,019
Allowance for loan and lease losses	(209,152		)	(211,671		)	(211,389		)	(212,353		)	(211,832		)
Loans and Leases, net	$	19,342,494		$	19,058,212		$	18,602,901		$	18,253,136		$	18,109,187
Loan and Lease Balances (average):
Commercial non-mortgage	$	5,933,221		$	5,914,710		$	5,776,334		$	5,754,153		$	5,597,831
Asset-based lending	1,138,189			1,049,403			1,016,069			964,575			944,120
Commercial real estate	5,312,403			5,079,415			4,930,035			4,862,419			4,620,741
Residential mortgages	4,802,497			4,662,033			4,415,434			4,419,826			4,434,056
Consumer	2,286,983			2,324,717			2,371,302			2,423,414			2,464,094
Total Loan and Lease Balances	19,473,293			19,030,278			18,509,174			18,424,387			18,060,842
Allowance for loan and lease losses	(213,130		)	(210,719		)	(214,966		)	(214,453		)	(208,102		)
Loans and Leases, net	$	19,260,163		$	18,819,559		$	18,294,208		$	18,209,934		$	17,852,740

WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets and Past Due Loans and Leases(unaudited)
(Dollars in thousands)	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018
Nonperforming loans and leases:
Commercial non-mortgage	$	64,197	$	56,340	$	66,754	$	62,265	$	58,366
Asset-based lending	9,165		184		218		224		1,066
Commercial real estate	12,810		10,413		7,449		8,243		7,255
Residential mortgages	43,733		48,104		49,267		49,069		49,348
Consumer	32,794		33,015		35,245		34,949		36,621
Total nonperforming loans and leases	$	162,699	$	148,056	$	158,933	$	154,750	$	152,656
Other real estate owned and repossessed assets:
Commercial non-mortgage	$	544	$	1,307	$	861	$	407	$	83
Residential mortgages	1,912		2,012		2,769		4,679		3,944
Consumer	1,561		1,872		1,868		1,781		1,284
Total other real estate owned and repossessed assets	$	4,017	$	5,191	$	5,498	$	6,867	$	5,311
Total nonperforming assets	$	166,716	$	153,247	$	164,431	$	161,617	$	157,967

Past due 30-89 days:
Commercial non-mortgage	$	5,384	$	4,438	$	19,152	$	2,615	$	6,186
Asset-based lending	—		—		—		—		—
Commercial real estate	1,433		2,665		2,283		1,514		2,746
Residential mortgages	13,445		10,844		12,865		12,789		14,499
Consumer	15,217		13,949		16,174		17,324		15,631
Total past due 30-89 days	35,479		31,896		50,474		34,242		39,062
Past due 90 days or more and accruing	92		410		—		104		139
Total past due loans and leases	$	35,571	$	32,306	$	50,474	$	34,346	$	39,201

Five Quarter Changes in the Allowance for Loan and Lease Losses (unaudited)
	For the Three Months Ended
(Dollars in thousands)	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018
Beginning balance	$	211,671	$	211,389	$	212,353	$	211,832	$	207,322
Provision	11,300		11,900		8,600		10,000		10,500
Charge-offs:
Commercial non-mortgage	11,291		5,657		7,837		10,239		876
Asset-based lending	—		—		—		289		—
Commercial real estate	32		2,473		973		22		1,922
Residential mortgages	872		2,154		251		910		874
Consumer	3,765		4,098		3,972		4,384		4,863
Total charge-offs	15,960		14,382		13,033		15,844		8,535
Recoveries:
Commercial non-mortgage	173		464		569		2,993		376
Asset-based lending	—		—		229		21		66
Commercial real estate	3		33		6		7		143
Residential mortgages	356		295		178		1,137		133
Consumer	1,609		1,972		2,487		2,207		1,827
Total recoveries	2,141		2,764		3,469		6,365		2,545
Total net charge-offs	13,819		11,618		9,564		9,479		5,990
Ending balance	$	209,152	$	211,671	$	211,389	$	212,353	$	211,832

WEBSTER FINANCIAL CORPORATION

Reconciliations to GAAP Financial Measures ____ ___

The Company evaluates its business based on certain ratios that utilize non-GAAP financial measures. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results and financial position of the Company. Other companies may define or calculate supplemental financial data differently.

The efficiency ratio, which measures the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. Return on average tangible common shareholders' equity measures the Company’s net income available to common shareholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average shareholders’ equity less average preferred stock and average goodwill and intangible assets. The tangible equity ratio represents shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The tangible common equity ratio represents shareholders’ equity less preferred stock and goodwill and intangible assets divided by total assets less goodwill and intangible assets. Tangible book value per common share represents shareholders’ equity less preferred stock and goodwill and intangible assets divided by common shares outstanding at the end of the period. Core deposits express total deposits less time deposits. See the tables below for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP.

	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Efficiency ratio:
Non-interest expense (GAAP)	$	179,894		$	180,640		$	175,686		$	174,759		$	178,783
Less: Foreclosed property activity (GAAP)	(128		)	(55		)	(253		)	191			(309		)
Intangible assets amortization (GAAP)	961			962			962			962			961
Other expenses (non-GAAP)	1,750			—			7			320			2,959
Non-interest expense (non-GAAP)	$	177,311		$	179,733		$	174,970		$	173,286		$	175,172
Net interest income (GAAP)	$	240,539		$	241,787		$	241,551		$	237,131		$	230,372
Add: Tax-equivalent adjustment (non-GAAP)	2,436			2,435			2,338			2,407			2,172
Non-interest income (GAAP)	69,931			75,853			68,612			73,163			72,284
Other (non-GAAP)	350			354			342			282			308
Less: Gain on the sale of banking centers (GAAP)	—			—			—			4,596			—
Income (non-GAAP)	$	313,256		$	320,429		$	312,843		$	308,387		$	305,136
Efficiency ratio (non-GAAP)	56.60		%	56.09		%	55.93		%	56.19		%	57.41		%
Return on average tangible common shareholders' equity:
Net income (GAAP)	$	93,865		$	98,649		$	99,736		$	98,838		$	99,673
Less: Preferred stock dividends (GAAP)	1,968			1,969			1,969			1,969			1,968
Add: Intangible assets amortization, tax-effected (GAAP)	759			760			760			760			759
Income adjusted for preferred stock dividends and intangible assets amortization (non-GAAP)	$	92,656		$	97,440		$	98,527		$	97,629		$	98,464
Income adjusted for preferred stock dividends and intangible assets amortization, annualized basis (non-GAAP)	$	370,624		$	389,760		$	394,108		$	390,516		$	393,856
Average shareholders' equity (non-GAAP)	$	3,118,691		$	3,016,541		$	2,935,653		$	2,853,176		$	2,796,809
Less: Average preferred stock (non-GAAP)	145,037			145,037			145,037			145,037			145,037
Average goodwill and other intangible assets (non-GAAP)	561,715			562,679			563,646			564,601			565,559
Average tangible common shareholders' equity (non-GAAP)	$	2,411,939		$	2,308,825		$	2,226,970		$	2,143,538		$	2,086,213
Return on average tangible common shareholders' equity (non-GAAP)	15.37		%	16.88		%	17.70		%	18.22		%	18.88		%

WEBSTER FINANCIAL CORPORATION

Reconciliations to GAAP Financial Measures (continued) ___ ___

	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Tangible equity:
Shareholders' equity (GAAP)	$	3,152,394		$	3,065,217		$	2,966,255		$	2,886,515		$	2,816,198
Less: Goodwill and other intangible assets (GAAP)	561,252			562,214			563,176			564,137			565,099
Tangible shareholders' equity (non-GAAP)	$	2,591,142		$	2,503,003		$	2,403,079		$	2,322,378		$	2,251,099
Total assets (GAAP)	$	29,895,100		$	28,942,043		$	28,238,129		$	27,610,315		$	27,346,317
Less: Goodwill and other intangible assets (GAAP)	561,252			562,214			563,176			564,137			565,099
Tangible assets (non-GAAP)	$	29,333,848		$	28,379,829		$	27,674,953		$	27,046,178		$	26,781,218
Tangible equity (non-GAAP)	8.83		%	8.82		%	8.68		%	8.59		%	8.41		%
Tangible common equity:
Tangible shareholders' equity (non-GAAP)	$	2,591,142		$	2,503,003		$	2,403,079		$	2,322,378		$	2,251,099
Less: Preferred stock (GAAP)	145,037			145,037			145,037			145,037			145,037
Tangible common shareholders' equity (non-GAAP)	$	2,446,105		$	2,357,966		$	2,258,042		$	2,177,341		$	2,106,062
Tangible assets (non-GAAP)	$	29,333,848		$	28,379,829		$	27,674,953		$	27,046,178		$	26,781,218
Tangible common equity (non-GAAP)	8.34		%	8.31		%	8.16		%	8.05		%	7.86		%
Tangible book value per common share:
Tangible common shareholders' equity (non-GAAP)	$	2,446,105		$	2,357,966		$	2,258,042		$	2,177,341		$	2,106,062
Common shares outstanding	92,034			92,007			92,125			92,247			92,230
Tangible book value per common share (non-GAAP)	$	26.58		$	25.63		$	24.51		$	23.60		$	22.83
Core deposits:
Total deposits	$	23,280,665		$	22,598,778		$	22,750,928		$	21,858,845		$	21,997,623
Less: Certificates of deposit	3,249,860			3,291,617			3,273,120			2,961,564			2,746,884
Brokered certificates of deposit	5,705			41,376			81,507			234,982			348,368
Core deposits (non-GAAP)	$	20,025,100		$	19,265,785		$	19,396,301		$	18,662,299		$	18,902,371