801337--3/2/2009--WEBSTER_FINANCIAL_CORP

related topics
{condition, economic, financial}
{stock, price, share}
{tax, income, asset}
{product, market, service}
{loss, insurance, financial}
{competitive, industry, competition}
{personnel, key, retain}
{regulation, government, change}
{system, service, information}
{control, financial, internal}
{capital, credit, financial}
{debt, indebtedness, cash}
Difficult market conditions have adversely affected the industry in which Webster operates. Current levels of market volatility are unprecedented. Webster is subject to extensive government regulation and supervision. There can be no assurance that recent government action will help stabilize the U.S. financial system and will not have unintended adverse consequences. Webster s participation in the U.S. Treasury s Capital Purchase Program restricts the Company s ability to increase dividends on its common stock, undertake stock repurchase programs and compensate key executives. Webster s stock price can be volatile. The Company operates in a highly competitive industry and market area. Webster may not be able to attract and retain skilled people. Webster s business strategy could have an impact on earnings and results of operations. If the goodwill that the Company has recorded in connection with its acquisitions becomes further impaired, it could have a negative impact on the Company s profitability. Webster continually encounters technological change. Webster s controls and procedures may fail or be circumvented. New lines of business or new products and services may subject Webster to additional risks. Customer information may be obtained and used fraudulently. Changes in interest rates and spreads could have an impact on earnings and results of operations which could have a negative impact on the value of Webster s stock. If all or a significant portion of the unrealized losses in Webster s portfolio of investment securities were determined to be other-than-temporarily impaired, Webster would recognize a material charge to its earnings and its capital ratios would be adversely impacted. Webster s allowance for credit losses may be insufficient. Webster may not pay dividends if it is not able to receive dividends from its subsidiary, Webster Bank.

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