$400 million in new capital will enhance already strong capital base,
expand credit for region's consumers, businesses
WATERBURY, Conn., Nov. 7 /PRNewswire-FirstCall/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today
announced it has received preliminary approval for $400 million in new capital
under the U.S. Department of Treasury's Capital Purchase Program (CPP).
Under the voluntary program, Webster may issue up to $400 million in
senior preferred shares and provide warrants for up to an additional $60
million in common stock to the Treasury, subject to standard terms and
conditions.
The Treasury and regulators have urged healthy institutions to take part
in the program in order to build capital and increase the flow of credit to
support the economy. Consistent with that spirit, Webster plans to use the new
capital to provide an equal amount of credit for the communities it serves.
"Participating in the program is the right thing to do. While Webster is
already well capitalized, we support the Treasury's objective to ensure that
sufficient credit is available for the borrowing needs of consumers and
businesses," said James C. Smith, Webster's chairman and CEO. "Webster was
founded during the Great Depression to help people build and buy their homes.
True to our heritage, we are committed to helping the nation and our region
solidify a foundation for future growth, including assisting distressed
borrowers who are struggling during the current downturn."
Webster currently exceeds federal regulatory standards for a
"well-capitalized" institution. On a pro forma basis, the additional $400
million in CPP funding would increase 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 additional capital will also position Webster to pursue opportunities
for growth, including acquisition of like-minded partners that share Webster's
vision to be New England's bank.
Webster also announced today that it will continue participating in the
FDIC's Temporary Liquidity Guarantee Program for non-interest bearing
transaction deposit accounts after the automatic enrollment period ends.
Launched by the FDIC on Oct. 14, the program provides unlimited deposit
insurance on funds in noninterest-bearing transaction deposit accounts not
otherwise covered by the existing deposit insurance limit of $250,000 until
Dec. 31, 2009. Eligible institutions were automatically enrolled in the
program during the introductory period at no cost. Webster will continue
participating in the program beyond the automatic enrollment period when the
FDIC starts to assess fees.
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- 11/07/2008
/CONTACT: Media, Ed Steadham, +1-203-578-2287, esteadham@websterbank.com,
or Investors, Terry Mangan, +1-203-578-2318, tmangan@websterbank.com/
/Photo: http://www.newscom.com/cgi-bin/prnh/20050421/NYTH039LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web Site: www.websteronline.com /
(WBS)
CO: Webster Financial Corporation; the U.S. Department of Treasury
ST: Connecticut
IN: FIN
SU: ACC
PR
-- NY44660 --
4660 11/07/2008 06:00 EST http://www.prnewswire.com