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WEBSTER FINANCIAL CORPORATION COMPLETES $25 MILLION PREFERRED STOCK OFFERING

 WATERBURY, Conn., Dec. 30 /PRNewswire/ -- Webster Financial Corporation (NASDAQ: WBST) today completed a $25 million registered offering of 250,000 shares of Series B 7-1/2 percent Cumulative Convertible Preferred Stock at $100 per share. Webster Financial Corporation is the holding company for First Federal Bank, a federal savings bank which recently acquired most of the assets and all of the deposits of First Constitution Bank in an FDIC assisted transaction.
 In response to investor interest, the company elected to increase the maximum offering amount from $23 million to $25 million, which new maximum amount was oversubscribed by investors. Purchasers in the offering were primarily institutional investors for amounts in excess of $1 million.
 Half of the net proceeds of the offering are being used to redeem today $11,750,000 of the $30 million of Series A Perpetual Preferred Stock issued by the company to the FDIC in connection with First Federal bank's recent acquisition. The balance will be used primarily to further increase the capital of First Federal Bank, which prior to the offering exceeded all fully phased in regulatory capital requirements.
 James C. Smith, president and chief executive officer of Webster and First Federal Bank said, "We are pleased to have completed the offering within less than three months of the First Constitution acquisition and prior to the end of our fiscal year." The Series B Stock has a lower dividend rate than the Series A Stock issued to the FDIC.
 Merrill Lynch & Co. served as the exclusive selling agent for Webster in the offering. The shares are non-callable for four years and are convertible into shares of Webster's common stock at a price of $19.17 per share.
 First Federal Bank acquired assets of $1.3 billion and deposits of $1.2 billion of the former First Constitution Bank from the FDIC in an assisted transaction on Oct. 2, 1992. The acquisition, accounted for as a purchase transaction, increased First Federal Bank's assets to approximately $2.2 billion.
 First Federal Bank acquired 16 full service banking offices, including 14 offices in New Haven County and two offices in Fairfield County, and now serves over 140,000 customers from 32 banking offices in the Connecticut counties of New Haven, Fairfield, Litchfield and Hartford, with its main office located in Waterbury.
 -0- 12/30/92
 /CONTACT: James C. Smith or John V. Brennan of Webster Financial, 203-755-1422/
 (WBST)


CO: Webster Financial Corporation ST: Connecticut IN: FIN SU:

DD -- NE014 -- 0714 12/30/92 16:58 EST
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Publication:PR Newswire
Date:Dec 30, 1992
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