News Details

WATERBURY, Conn.--(BUSINESS WIRE)--March 16, 2001--Webster Bank, whose holding company is Webster Financial Corporation (Nasdaq: WBST), has announced that it is implementing plans to reconfigure its current branch network.

The first phase of the project involves consolidating nine banking offices into nearby branches in areas where Webster has an extensive - and, in effect, an overlapping -- branch network. In the second phase, Webster will open new branches in communities not currently having a Webster office.

No job eliminations are expected as a result of the branch consolidations and employees will be reassigned to other Webster Bank locations. Webster expects to book a charge in the current quarter for consolidation-related expenses.

"Over the past 10 years, Webster has experienced considerable growth through acquisitions of several Connecticut community banks," said Peter Mulligan, senior executive vice president, retail banking. "The result is that the Webster branch network is highly concentrated and several branches in local markets serve the same customers and, in most cases, are less than a mile or two from each other."

Webster uses sophisticated database technology to track how customers actually use the branches, ATMs, the Webster Customer Contact Center and Web-based banking. Consolidation decisions were made accordingly. Additional ATMs will also figure in Webster's geographic expansion and reconfiguration plans.

"As is the case for all businesses, we find that customer use patterns change over time," said Candy Fitzek, executive vice president, consumer banking. "For these branches, we know that customers conduct an average of 50 percent of their transactions at other branches and ATMs. In addition, electronic transactions continue to show a steady upward trend."

After careful consideration, it has been determined that nine offices will be consolidated effective June 8. Consolidating and receiving branch locations are:

• Danbury, Shelter Rock Road, consolidating into City Center, Danbury

• East Hartford, 290 Roberts Street, consolidating into 1085 Main St., East Hartford

• Ellington, 70 West Road, consolidating into 475 Talcottville Road, Vernon

• Enfield, Enfield Square Mall, consolidating into 9 Hazard Ave., Enfield

• Hartford, 100 Pearl Street, consolidating into CityPlace, Hartford

• Newington, 36 Fenn Road, consolidating into 275 Newington Ave., New Britain

• West Hartford, 1253 New Britain Ave., consolidating into 1114 New Britain Ave.

• Wethersfield, 1160 Silas Deane Highway, consolidating into 1039 Silas Deane Highway

• Windsor Locks, Dexter Plaza, Main Street, consolidating into 2 North Road, East Windsor

Branches near the offices to be consolidated should benefit from the reassignment of personnel. Customers are receiving letters explaining the consolidation of their branch and the location of the receiving branch.

"Webster Bank has a demonstrated record of looking to the future. We make well-considered decisions based on our customers' use of the variety of service channels available to them including branch offices, ATMs, our state-of-the-art customer contact center and websterbank.com," Fitzek said. "We are making the right investments in the technology, human resources, and soon in a select number of new branch banking offices, to bring our customers the financial products and services they need in the years ahead."

Connecticut-based Webster Bank provides business and consumer banking, mortgage, insurance, trust and investment services through more than 100 banking offices, 200 ATMs and the Internet (www.websterbank.com). Webster's online mortgage subsidiary at www.nowlending.com on the Worldwide Web originates low-cost mortgages across the United States.

For more information on Webster visit www.websterbank.com.

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