Webster reduces involvement in TARP

WATERBURY, Conn. – Webster Financial Corp. has repurchased $100 million, or 25 percent, of the shares of preferred stock issued to the U.S. Treasury under the federal Capital Purchase Program.
Webster, the parent of Waterbury, Conn.-based Webster Bank, said the repurchase will not require the issuance of additional capital.
The company said it would record a reduction in retained earnings due to the repurchase in the first quarter.
Webster enrolled in the program, which is part of the government’s Troubled Asset Relief Program – otherwise known as TARP – in December 2008. The CCP allowed the federal government to buy shares of healthy banks in hopes it would help thaw credit markets.
Many of the banks that initially signed on have since exited the program, citing restrictive government requirements on matters such as executive compensation.
Webster received $400 million in new capital and, in return, issued 400,000 shares of preferred stock.
Webster Financial Corp. (NYSE: WBS) – a $17.8 billion company based in Waterbury, Conn. – is the holding company for Webster Bank N.A., a financial services company with more than 181 branches, including13 branches in Rhode Island. Additional information is available at www.WebsterOnline.com.