Webster Declares 11 Percent Dividend Increase

Apr 18, 2007

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 an 11 percent increase in the regular quarterly cash dividend of $.30 per common share, up from Webster's last quarterly cash dividend of $.27 paid on February 26, 2007. On an annual basis, Webster's dividend increases to $1.20 from $1.08 per common share.

"I am pleased to announce a significant increase in Webster's dividend made possible by the overall growth of our business and the successful completion of our balance sheet restructuring, " stated Webster Chairman and Chief Executive Officer James C. Smith. "This dividend underscores the Board of Directors' confidence in Webster's progress toward achieving our vision to be New England's bank."

The dividend is payable on May 16, 2007 to shareholders of record on May 2, 2007. This is the 79th consecutive quarterly dividend since Webster first paid a dividend in 1987 and the 17th time Webster's dividend has been increased.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.1 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 177 banking offices, 334 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 www.websteronline.com.

SOURCE
Webster Financial Corporation

CONTACT:
Media
Clark Finley
203-578-2287
cfinley@websterbank.com

Investors
James Sitro
203-578-2399
jsitro@websterbank.com