WATERBURY, Conn., May 20, 2002 (BUSINESS WIRE) -- Webster Financial Corporation
(Nasdaq: WBST), holding company for Webster Bank, announced today that it has
reached a definitive agreement to acquire the asset-based lending division of
IBJ Whitehall Business Credit Corporation, a subsidiary of The Industrial Bank
of Japan Trust Company.
The asset-based lending operations will operate as Whitehall Business Credit
Corporation, a subsidiary of Webster Bank. Terms of the all cash transaction
were not disclosed. The transaction, which is subject to regulatory filings and
customary closing conditions, is expected to close in the third quarter of 2002,
is expected to be immediately accretive to earnings, and will not create any
goodwill.
"Our acquisition of this asset-based lending business is consistent with our
plans to continue to diversify our lending business into high quality commercial
loans in a manner that enhances our revenue stream and creates opportunities for
growth," said William T. Bromage, Webster President and Chief Operating Officer.
"Asset-based lending has been a promising business for us, and this transaction
both strengthens our existing asset-based lending capabilities and broadens our
geographic reach."
In the transaction Webster will acquire approximately $515 million of
outstanding loans, most of which are to customers in the Northeast. Webster has
completed extensive due diligence of the asset-based lending portfolio and
related cash management business. Its acquisition is limited to current and
fully performing loans in the asset-based lending portfolio at closing.
Webster will offer employment to the current staff of approximately 55 people
and will operate this business from its existing location at One State Street in
New York City. In addition, Webster will retain offices in Braintree,
Massachusetts and Atlanta, Georgia. Webster expects to obtain approximately $21
million of deposits and cash management accounts related to this business.
"This acquisition accelerates our transformation to a diversified financial
services provider with a commercial bank profile," said James C. Smith, Webster
Chairman and CEO. "Building on our recent growth in equipment leasing and
financing, insurance and investment management, this new asset-based lending
business, and in particular the highly capable management team, adds to our
solid foundation for growth in the years ahead."
Warren Mino, the current President and Chief Operating Officer of IBJ Whitehall
Business Credit Corporation, is expected to continue his leadership of these
operations when they join Webster Bank. Mr. Mino said that he and his colleagues
were pleased to be part of a financial services company with an existing
asset-based lending business. "We all like the fact that we are joining this
strong, growing company that considers asset-based lending to be a strategic
growth opportunity. We look forward to adding value as part of the Webster
team," he said.
IBJ Whitehall Business Credit Corporation, founded in 1968, is a wholly owned
subsidiary of the Industrial Bank of Japan Trust Company headquartered in New
York City, which in turn is a wholly owned subsidiary of Mizuho Corporate Bank.
Webster Financial Corporation is the holding company for Webster Bank and
Webster Insurance. With $12 billion in assets, Connecticut-based Webster Bank
provides business and consumer banking, mortgage, insurance, trust and
investment services through more than 100 banking offices, 210 ATMs and the
Internet (www.websterbank.com). Webster Financial Corporation is majority owner
of Chicago-based Duff & Phelps, LLC, a leader in financial advisory services,
and Webster Bank owns Center Capital Corporation, an equipment leasing and
financing company headquartered in Farmington, Connecticut and Webster Trust
Company, N.A. For more information on Webster, including past press releases and
the latest Annual Report, visit the Webster Bank website at www.websterbank.com.
Statements in this press release regarding Webster Financial Corporation's
business that are not historical facts are "forward looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statement, see "Forward Looking Statements" in the
Company's Annual Report for the most recently ended fiscal year.
CONTACT: Webster Contacts:
Media: Art House, 203/578-2391
Ahouse@websterbank.com
Clark Finley, 203/578-2507
cfinley@websterbank.com
or
Investors:
James M. Sitro, 203/578-2399
jsitro@websterbank.com