Webster To Divest State Bank of Howards Grove Branches to National Exchange Bank and Trust

Feb 08, 2005

WATERBURY, Conn., Feb. 8 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today it has signed a Purchase and Assumption Agreement pursuant to which it has agreed to sell the two branch offices of State Bank of Howards Grove, which also operates under the trade name HSA Bank, to National Exchange Bank and Trust of Wisconsin. Webster previously announced its intention to divest the branches while retaining the health savings account deposits and loans. The transaction is contingent upon receipt of required regulatory approvals and the satisfaction of customary closing conditions, and is subject to the anticipated completion in the first quarter 2005 of Webster's previously announced acquisition of Eastern Wisconsin Bancshares, Inc. (EWBI), the holding company for State Bank of Howards Grove. The terms of the deal were not disclosed.

"National Exchange Bank and Trust is the ideal partner for the State Bank of Howards Grove," said Nathaniel Brinn, Webster's executive vice president for Corporate Development. "By retaining the staff of both branches, National Exchange Bank and Trust will continue to provide customers with the outstanding personal service to which they are accustomed."

Brinn continued, "We have been extremely pleased with HSA Bank's growth since the announcement of our acquisition. Since September 2004, accounts have increased by 45 percent, resulting in a significant increase in deposits. As payroll deductions for new HSA enrollees begin in 2005, deposits are expected to increase steadily."

According to HSA Insider, HSA Bank has the largest health savings account customer base of any bank in the country. "We expect continuing rapid growth," said Brinn.

National Exchange Bank and Trust, an independent bank headquartered in Fond du Lac, Wisc., has more than $850 million in assets and operates 21 offices in east central Wisconsin.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.0 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 152 banking offices, 289 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 http://www.websteronline.com.

     Webster Media Contact                     Webster Investor Contact
     Meghan Thompson 203-578-2287              Terry Mangan 203-578-2318
     mthompson@websterbank.com                 tmangan@websterbank.com

     State Bank of Howards Grove Media Contact
     Bradley O. Yocum, President and Chief Executive Officer
     920-565-5217
     brad@bankwi.com