Webster Announces 9 Percent Dividend Increase

Apr 18, 2005

WATERBURY, Conn., April 18 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today that its Board of Directors approved a 9 percent increase in the regular quarterly cash dividend to $.25 per common share, up from Webster's last quarterly cash dividend of $.23 paid on February 28, 2005. On an annual basis, Webster's dividend rate increases to $1.00 from $.92 per common share.

"Creating value for shareholders and customers is the foundation of Webster's strategic plan for growth," stated Webster Chairman and Chief Executive Officer James C. Smith. "This dividend increase reflects the confidence of our Board of Directors in our ability to achieve our ambitious goals and in the dedication of our 3,300 employees."

The dividend is payable on May 16, 2005 to shareholders of record on May 2, 2005. This is the 71st consecutive quarterly dividend since Webster first paid a dividend in 1987 and the 15th time Webster's dividend has been increased.

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 153 banking offices, 291 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., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank.

For more information about Webster, including past press releases and the latest annual report, visit the Webster website at http://www.websteronline.com .

     Media Contact                     Investor Contact

Meghan Thompson 203-578-2287 Terry Mangan 203-578-2318

mthompson@websterbank.com tmangan@websterbank.com

SOURCE  Webster Financial Corporation
    -0-                             04/18/2005
    /CONTACT:  Media, Meghan Thompson, +1-203-578-2287,
mthompson@websterbank.com, or Investor, Terry Mangan, +1-203-578-2318,
tmangan@websterbank.com, both of Webster Financial Corporation/
    /Web site:  http://www.websteronline.com /
    (WBS)

CO:  Webster Financial Corporation
ST:  Connecticut
IN:  FIN
SU:  DIV

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5435 04/18/2005 15:25 EDT http://www.prnewswire.com