Webster Announces Sale of FIRSTFED TRUST COMPANY, N.A. to Coastline Trust Company

Jun 15, 2004

WATERBURY, Conn.--(BUSINESS WIRE)--June 15, 2004--Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, National Association, announced today the sale of its majority share in FIRSTFED TRUST COMPANY, N.A., to Coastline Trust Company, formerly M/D Trust, LLC.

Webster Bank, N.A., acquired a sixty-five percent share of FIRSTFED TRUST COMPANY, N.A., as part of its recent merger with FIRSTFED AMERICA BANCORP, INC. As minority shareowner, M/D Trust, LLC had an established right to purchase FIRSTFED TRUST COMPANY's equity ownership interest in the event of a change of control in FIRSTFED AMERICA BANCORP, INC. Upon Webster's acquisition of FIRSTFED, M/D Trust, LLC exercised their option. Terms of the deal were not disclosed.

Edward A. Hjerpe, III, Webster's president and chief operating officer for Massachusetts and Rhode Island and a former director of FIRSTFED TRUST COMPANY, said: "Our sale to Coastline Trust Company will benefit both companies. We have worked together productively since the formation of FIRSTFED TRUST COMPANY, N.A., and look forward to maintaining our strong relationships."

Webster Financial Corporation acquired FIRSTFED AMERICA BANCORP, INC on May 14, 2004.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 145 banking offices, 266 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., and Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut.

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

CONTACT: Webster Financial Corporation
Media:
Meghan Thompson, 203-578-2287
mthompson@websterbank.com
Investors:
Terry Mangan, 203-578-2318
tmangan@websterbank.com

SOURCE: Webster Financial Corporation