WATERBURY, Conn., June 29 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today that in the initial public offering of Higher One Holdings, Inc. (NYSE: ONE) that commenced trading on June 17, 2010 it had sold 594,107 shares of common stock at $12.00 per share. Webster had indicated its desire to sell all of the 1,200,000 shares that it owned in Higher One but was scaled back to 594,107 shares through the initial public offering process. As a result of the sale, Webster realized net proceeds of approximately $6.6 million that will result in an expected gain of approximately $6.4 million in its financial results for the second quarter of 2010.
Webster retains the balance of 605,893 shares of Higher One's common stock subject to a 180-day lockup period that follows the initial public offering. Based on Higher One's closing stock price of $14.50 per share on June 29, 2010, the current market value of the remaining shares is approximately $8.8 million compared to a cost basis of approximately $0.2 million. Webster has determined that the remaining shares will be held as trading assets in the investment securities portfolio and as a result, beginning with the second quarter of 2010 will reflect any gain or loss from the remaining shares being marked to market at each quarter's end prior to eventual sale.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $18.0 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 500 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, Webster Capital Finance, Inc., an equipment finance company headquartered in Farmington, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and 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.
SOURCE Webster Financial Corporation