Webster Announces 8 Percent Dividend Increase

Apr 17, 2006

WATERBURY, Conn., April 17 /PRNewswire-FirstCall/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today that its Board of Directors approved an 8 percent increase in the regular quarterly cash dividend to $.27 per common share, up from Webster's last quarterly cash dividend of $.25 paid on February 21, 2006. On an annual basis, Webster's dividend rate increases to $1.08 from $1.00 per common share.

"We've grown our business and strengthened our balance sheet over the past year," stated Webster Chairman and Chief Executive Officer James C. Smith. "This dividend increase underscores the Board of Directors' confidence in Webster's progress toward achieving its vision to be the region's leading financial services provider."

The dividend is payable on May 15, 2006 to shareholders of record on May 1, 2006. This is the 75th consecutive quarterly dividend since Webster first paid a dividend in 1987 and the 16th time Webster's dividend has been increased.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.8 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 158 banking offices, 306 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, Member FDIC and equal housing lender.

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
Clark Finley 203-578-2287
cfinley@websterbank.com

Investor Contact
Terry Mangan 203-578-2318
tmangan@websterbank.com