WATERBURY, Conn., June 11 /PRNewswire-FirstCall/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced that it sold $225 million aggregate liquidation preference of
non-cumulative perpetual convertible preferred stock related to the public
offering announced on June 5, 2008. Proceeds to Webster from the offering will
be reduced by underwriting discounts and expenses.
"The successful public sale of capital reflects the confidence investors
place in Webster's balance sheet strength and growth potential," said James
Smith, chairman and chief executive officer. "With this capital raise,
Webster's already strong capital position is significantly enhanced. Webster
has chosen to raise capital given our belief that a fortress balance sheet is
a valuable asset in today's uncertain economic environment. This capital will
support our growth as New England's bank and further protect us against the
unforeseen in today's volatile and uncertain markets."
Webster's capital ratios, which were already substantially above the
regulatory requirements for well-capitalized banks, have been further enhanced
by the offering. Webster's resulting estimated ratios as of March 31, 2008 are
12.9 percent total risk-based capital, 10.5 percent tier I risk-based capital,
and 9.2 percent tier I leverage capital, compared to regulatory requirements
for well-capitalized banks of 10 percent total risk-based capital, 6 percent
tier I risk-based capital and 5 percent tier I leverage capital.
Merrill Lynch & Co. acted as the sole book-running manager for the
offering, and JPMorgan and Sandler O'Neill + Partners, L.P. acted as
co-managers of the offering.
This news release shall not constitute an offer to sell or a solicitation
of an offer to buy, nor shall there be any sales of these securities in any
state or jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities law of
any such state or jurisdiction.
The preferred stock was issued pursuant to an effective shelf registration
statement. The offering was made only by means of a prospectus supplement and
accompanying prospectus, final copies of which may be obtained from Merrill
Lynch & Co., Attn: Prospectus Department, 4 World Financial Center, New York,
New York 20080 (telephone: 212-449-1000).
Webster Financial Corporation is the holding company for Webster Bank,
National Association. With $17.2 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, Connecticut 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.
Forward-looking Statements
Certain statements contained in this release may include forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are based upon specific assumptions
that may or may not prove correct. Forward-looking statements are also subject
to known and unknown risks, uncertainties and other factors relating to the
Company's and the Bank's operations and business environment, all of which are
difficult to predict, and many of which are beyond the control of the Company
and the Bank. The factors include, among others: economic and business
conditions in the areas and markets in which the Company and the Bank operate,
particularly those affecting loans secured by real estate; deterioration or
improvement in the ability of the Bank's borrowers to pay their debts to the
Bank; market fluctuations such as those affecting interest and foreign
exchange rates and the value of securities in which the Bank invests;
competition from other financial institutions, whether banks, investment
banks, insurance companies or others; the ability of the Bank to assimilate
acquisitions, enter new markets and lines of business, and open new branches,
successfully; changes in business strategies; changes in tax law and
governmental regulation of financial institutions; demographic changes; and
other risks and uncertainties, including those discussed in the documents the
Company files with the Securities and Exchange Commission ("SEC"). The
foregoing may cause the actual results and performance of the Company and the
Bank to be materially different from the results and performance indicated or
suggested by the forward-looking statements. Further description of the risks
and uncertainties are included in detail in the Company's current, quarterly
and annual reports, as filed with the SEC.
SOURCE: Webster Financial Corporation
CONTACT: Webster Financial Corporation
Media:
Ed Steadham
+1-203-578-2287
esteadham@websterbank.com
or
Investors:
Terry Mangan
+1-203-578-2318
tmangan@websterbank.com
Web site:
http://www.websteronline.com