Webster Declares Quarterly Dividend and Announces New Share Repurchase of 2.3 Million Common Shares

Jul 22, 2003

WATERBURY, Conn., Jul 22, 2003 (BUSINESS WIRE) -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, announced today that its Board of Directors has declared a regular cash dividend of $.21 per common share and authorized the repurchase of up to approximately 2.3 million shares. The 2.3 million shares authorized for stock repurchase represents 5% of Webster's 45.6 million shares of outstanding common stock.

Webster's dividend is payable on August 18, 2003 to shareholders of record on August 4, 2003. This is the 64th consecutive dividend since Webster first paid a dividend in 1987.

Today's authorized repurchase is in addition to Webster's existing stock repurchase authorization. In July 2002, Webster's Board of Directors approved the repurchase of 2.4 million shares, of which approximately 700,000 shares remain to be purchased. Today's announcement brings the current repurchase authorization to approximately 3.0 million shares.

"Our Board of Directors believes that Webster's shares represent an attractive investment at current valuations," stated Webster chairman and chief executive officer, James C. Smith. "Previous Board decisions to repurchase shares have been well rewarded. In addition, the present initiative will allow Webster greater capital management flexibility."

Webster will continue to repurchase shares from time-to-time in the open market and unsolicited negotiated transactions, including block purchases. With today's announcement, Webster has initiated eleven stock repurchases since the company became public in 1986. Seven of those buybacks have taken place in the past nine years.

Webster Financial Corporation is the holding company for Webster Bank and Webster Insurance. With $14 billion in assets, Webster Bank provides business and consumer banking, mortgage, insurance, trust and investment services through 109 banking offices, 219 ATMs, a Connecticut-based call center and the Internet. Webster Financial Corporation is majority owner of Chicago-based Duff & Phelps, LLC, a leader in financial advisory services. Webster Bank owns the asset-based lending firm, Whitehall Business Credit Corporation, Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and Webster Trust Company, N.A.

For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website at www.websteronline.com.

SOURCE: Webster Financial Corporation

Webster Financial Corporation
Media Contact:
Clark Finley, 203-578-2429
cfinley@westerbank.com
or
Investor Contact:
Terry Mangan, 203-578-2318
tmangan@websterbank.com