UPDATE 1-Webster posts wider-than-expected Q3 loss

* Q3 loss/shr $0.39 vs estimate $-0.24/shr

* Q3 credit loss provision rises 87 pct

* Says Warburg investment completed

Oct 22 (Reuters) - Webster Financial Corp (WBS.N), a top New England lender, posted a much wider-than-expected quarterly loss, hurt mainly by a 87 percent jump in provision for credit losses.

Net loss available to common shareholders was $26.1 million, or 39 cents a share for the third quarter, compared with a loss of $21.7 million, or 42 cents a share, a year earlier.

Analysts were looking for a loss of 24 cents a share, according to Thomson Reuters I/B/E/S.

Webster set aside $85 million as provision for credit losses during the period, an increase from $45.5 million a year back.

The company, in which private-equity firm Warburg Pincus [WP.UL] had agreed to invest $115 million, said it received $40 million of the funding during the quarter, while the remaining investment was completed on Oct. 15.

Webster shares closed at $12.70 Wednesday on the New York Stock Exchange. (Reporting by Anurag Kotoky in Bangalore; Editing by Himani Sarkar)