WATERBURY, Conn., Oct. 26 /PRNewswire/ -- Webster Financial Corporation
(Nasdaq: WBST) announced today that its Board of Directors has approved a
common stock repurchase program of up to $50 million. Webster will buy back
up to 2 million shares, or approximately 5 percent of the company's
38 million shares outstanding.
``The Board of Directors believes that Webster shares represent
extraordinary value,'' said James C. Smith, Webster's chairman and chief
executive officer. ``Investing in our shares at current market prices provides
an excellent means to enhance shareholder value.''
Webster will repurchase these shares in open market and unsolicited
negotiated transactions, including block purchases over the next year.
This is the third action Webster has taken this year to improve shareholder
value through measures that reduce the number of common shares outstanding.
Webster recently completed a 500,000-share common stock buyback announced in
June. In that same month, Webster repurchased warrants that had been issued
to Fleet Financial Group in 1996 in connection with Webster's purchase of 20
former Shawmut Bank branch offices.
With today's announcement, Webster has initiated eight stock repurchases
since the company became public in 1986. Four of those buybacks have taken
place in the last four years.
Webster Bank was founded in 1935 and is a leading Connecticut-based
financial institution. Webster delivers consumer banking, commercial banking,
mortgage, insurance, and trust and investment management services to
individuals, families and businesses.
Webster has $9.2 billion in assets and operates through a network of more
than 100 banking offices, three commercial banking centers, and more than
160 ATMs, in addition to telephone banking, video banking and PC banking has
the number one or number two deposit market share in its primary markets of
Hartford, New Haven and Litchfield counties.
Webster is also the second-largest mortgage lender in Connecticut and a
leading, full-service commercial lender. Webster Trust, the bank's trust and
investment management subsidiary, is the second-largest bank trust company
based in Connecticut. Webster's insurance subsidiary, Damman Insurance
Associates, is one of the largest agencies in the state.