1047865--3/15/2010--WEBSTER_PREFERRED_CAPITAL_CORP

related topics
{debt, indebtedness, cash}
{condition, economic, financial}
{loss, insurance, financial}
{stock, price, share}
{loan, real, estate}
{tax, income, asset}
{competitive, industry, competition}
{investment, property, distribution}
The Company is controlled by, and is reliant upon, Webster Bank, and any adverse effect upon Webster Bank could effect the Company s operations The Company is dependent upon Webster Bank as its Advisor and Servicer, and if Webster Bank were to assign these duties to a third-party, there can be no guarantee that the third-party would be able to perform to a level suitable to the Company Webster Bank and its affiliates may have interests which are not identical to the Company s, resulting in conflicts of interest with respect to certain transactions Any future change in the Company s policies and strategies by the Board of Directors could have an adverse effect on the Company As a wholly owned subsidiary of Webster Bank, the Company could be subject to restrictions on its operations by bank regulators Failure to qualify as a REIT would cause the Company to be taxed as a corporation, which would significantly reduce funds available to shareholders Deterioration in local economic conditions may negatively impact the Company s financial performance Variations in interest rates may negatively affect the Company s financial performance The difficulty in liquidating defaulted mortgage loans could negatively affect the Company s results of operations If the Company s allowance for loan losses is not sufficient to cover actual loan losses, the Company s earnings will decrease To the extent the Company were to incur indebtedness, the Company would be subject to risks associated with leverage, including changes in interest rates and prepayment risk

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