The Waterbury parent of regional lender Webster Bank announced Monday it will repay this week a quarter of the $400 million in federal aid obtained at the peak of the U.S. financial crisis.
Webster Financial Corp. said the federal Treasury has given the green light to the bank’s plan to repurchase $100 million, or 25 percent, of the preferred stock it gave the federal government as part of the capital purchase program in December 2008.
Webster said the redemption will take place Wednesday.
Webster Chairman and CEO Jim Smith said the bank had previously declared its intent to begin repaying the Treasury for its investment.
Smith said the redemption isn’t subject to any special terms nor will the bank be required to issue additional capital.
Webster has approximately $19 billion in assets.
