Webster Receives Approval From Treasury Department to Repurchase $100 Million of Preferred Stock

WATERBURY, Conn., March 1 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today that it has received U.S. governmental approvals to repurchase 25 percent of the shares of preferred stock that were issued to the U.S. Department of the Treasury under its Capital Purchase Program. Webster's redemption of the preferred stock is not subject to any additional approval conditions or stipulations from the Treasury Department, including the issuance of additional capital.

Webster Chairman and Chief Executive Officer James C. Smith said "We have previously announced our intent to start an orderly repayment of our participation in the Capital Purchase Program. We are pleased to now begin that process, having received U.S. Treasury's approval of our request to repurchase 25 percent of the outstanding preferred shares."

The $100 million repurchase is anticipated to occur on March 3, 2010 and will cause Webster to accelerate the accretion of the remaining $1.6 million discount related to these shares and record a reduction in retained earnings. The reduction will be treated in a manner consistent with that for preferred dividends in reporting net income available for common shareholders in the results of operations for the first quarter of 2010. Webster's ratio of Tier 1 common to risk-weighted assets was 7.86 percent at December 31, 2009 and will not be affected by the $100 million repurchase.

Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.7 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 501 ATMs, telephone banking and the Internet.  Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, Center Capital Corporation, 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