$400 million in new capital enhances already strong capital base, expands
credit for region's consumers, businesses
--Webster issues 400,000 shares of preferred stock representing $400
million in new capital
--Treasury Department receives warrants to purchase 3.3 million shares of
Webster common stock
WATERBURY, Conn., Nov. 21 /PRNewswire-FirstCall/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced it has received $400 million in new capital under the U.S.
Department of Treasury's Capital Purchase Program (CPP).
Webster issued 400,000 shares of Fixed Rate Cumulative Perpetual Preferred
Stock, Series B, par value $.01 per share with a liquidation preference of
$1,000 per share to the Treasury Department. The Treasury Department also
received ten-year warrants to purchase up to 3,282,276 shares of Webster's
common stock, par value $.01 per share, at an initial exercise price of $18.28
per share. The preferred stock and warrants will be accounted for as an
addition to Webster's regulatory capital.
At September 30, 2008, Webster well exceeded federal regulatory standards
for a "well-capitalized" institution. On a pro forma basis, the additional
$400 million in CPP funding increases Webster's Tier 1 leverage ratio from 8.7
percent to 11.1 percent and its Total Risk-Based Capital ratio from 13.2
percent to 16.2 percent.
The Series B Preferred Stock will pay cumulative dividends at a rate of 5
percent per year for the first five years and 9 percent per year thereafter.
Webster cannot redeem the preferred stock during the first three years after
issuance except with the proceeds from a "qualified equity offering" while any
redemption will require approval from the Federal Reserve. Dividend payment
dates will be February 15, May 15, August 15 and November 15 in each year.
Forward-looking Statements
Statements in this press release regarding Webster Financial Corporation's
business that are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties that could cause actual results to differ from those contained
in the forward-looking statement, see "Forward Looking Statements" in
Webster's Annual Report for 2007. Except as required by law, Webster does not
undertake to update any such forward looking information.
Webster Financial Corporation is the holding company for Webster Bank,
National Association. With $17.5 billion in assets, Webster provides business
and consumer banking, mortgage, financial planning, trust and investment
services through 181 banking offices, 484 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, Conn., and provides health savings account trustee and
administrative services through HSA Bank, a division of Webster 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
www.WebsterOnline.com.
SOURCE Webster Financial Corporation
-0- 11/21/2008
/CONTACT: Media, Ed Steadham, +1-203-578-2287, esteadham@websterbank.com;
Investors, Terry Mangan, +1-203-578-2318, tmangan@websterbank.com /
/Photo: http://www.newscom.com/cgi-bin/prnh/20050421/NYTH039LOGO/
/Web Site: http://www.websteronline.com /
(WBS)
CO: Webster Financial Corporation
ST: Connecticut
IN: FIN
SU: FNC
PR
-- NY48084 --
8084 11/21/2008 15:52 EST http://www.prnewswire.com