Past due loans and nonperforming loans grew at a reduced rate from last quarter endPlanned elimination of approximately 200 additional positions across theCompany, resulting in an additional severance charge of $4.2 millionPre-tax operating loss of $35.9 million or $.83 per diluted share before OTTI,goodwill impairment, securities gain and losses and severance chargesStrong tangible capital position, including all of the above charges, of 7.70percent at year end compared to 5.89 percent a year ago. Significantly exceedall requirements for well capitalized regulatory ratiosDividend reduced to $.01, reflecting desire to preserve strong capitalpositionGoodwill ImpairmentAs indicated in the Form 8-K filed January 15, 2009, the Company has beentesting its goodwill for potential impairment based on the continued publiccapital markets disruption and the Company's market capitalizationdeterioration compared to book value. The Company engaged an independentvaluation firm to assist with the testing of the carrying value of goodwill,which totaled $718.5 million at September 30, 2008. In light of recent marketand economic events, the Company is continuing to review goodwill to determinewhether any further impairment results. Based on analysis to date, the Companyhas determined there was goodwill impairment of $188.9 million related to itscommercial banking, consumer finance and other business segments. A goodwillimpairment charge is non-cash in nature and does not affect the Company'sliquidity, tangible equity or its well capitalized position under regulatorycapital ratios. The Company expects to complete its goodwill analysis in thenear future. 
Pre-tax Operating Income TwelveTwelve(in thousands, except perMonthsMonths share data) Three Months Ended Ended EndedDec 31,Sept 30,Dec 31,Dec. 31,2008 200820082007Net (Loss) Income Before Tax$(364,489) $(18,114) $(384,597) $158,784Adjustments:OTTI Charge 129,59333,507219,277 3,565Securities Losses (Gains) 4,233 2,1106,094(1,721)Severance 5,905 1,535 16,15815,608Impairment of Goodwill188,866 1,013198,379 -Gain on Webster Capital Trust Securities - (2,130)Visa Share Redemption - - (1,625)-Total Adjustments 328,59738,165438,28315,322Pre-tax Operating Loss Income$(35,892)$20,051$53,686$174,106Pre Tax Loss Earnings Per Share $(0.83)$0.29$0.80 $3.17For the full year 2008, net loss totaled $321.8 million, or $6.42 loss perdiluted share, compared to net income of $96.8 million, or $1.76 per dilutedshare in the year-ago period. Pre-tax operatingincome and operating EPS, representing pre-tax earnings and EPS determined inaccordance with generally accepted accounting principles ("GAAP") excludingthe effects of the pre-tax, non-cash OTTI charge and other items noted above,provide a more meaningful comparison for effectively evaluating the Company'score operating results.Webster Chairman and Chief Executive Officer James C. Smith said, "Webster'sexceptionally strong capital position enables us to act purposefully toaddress the current and future challenges faced by the financial servicesindustry. We are committed and well prepared to meet our customers' needs andto contribute to the eventual economic recovery in our region."Webster will provide details on its fourth quarter performance in a conferencecall at 9:00 AM EST today (refer to details for the conference call at the endof this release). In addition, Webster has posted supplemental informationregarding its investment securities portfolio and other items on our websiteat announced charges taken in the fourth quarter included $118.0million in write-downs for OTTI for certain capital trust investmentsecurities classified as available for sale and $11.6 million for equitysecurities also classified as available for sale.
The $188.9 million goodwillimpairment charge reflects the effect of current economic deterioration onloan values and the impact of substantial interest rate decreases in thefourth quarter. This non-cash charge has no effect on the company's liquidityand capital positions.Of the $5.9 million severance charge recorded in the fourth quarter, $4.2million relates to the next phase of the OneWebster earnings optimizationprogram. This program is expected to result in $50 million in annual benefitsby 2010. Webster ChiefFinancial Officer and Chief Risk Officer Jerry Plush stated, "We recognizethat further expense discipline is essential given current economicconditions.
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