EXHIBIT 99.1

PRESS RELEASE
WEBSTER FINANCIAL CORPORATION
Webster Contacts:
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Media: Art House, 203-578-2391
            ahouse@websterbank.com
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Investors: James M. Sitro, 203-578-2399
               jsitro@websterbank.com
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                 WEBSTER TO REPURCHASE 2.5 MILLION COMMON SHARES

         WATERBURY, Conn., September 14, 2001 -- Webster Financial Corporation
(Nasdaq: WBST), the holding company for Webster Bank, announced today that its
Board of Directors has authorized the repurchase of up to 2.5 million shares, or
approximately 5 percent of Webster's 49.5 million shares of outstanding common
stock.

         "The Board of Directors believes that Webster shares represent an
attractive investment," said James C. Smith, Webster's chairman and chief
executive officer. "Purchasing our shares at current market prices provides an
excellent means to enhance shareholder value. Over the near term, our repurchase
plan will help to ensure liquidity and alleviate the affects of any order
imbalances resulting from the events of the past week. The Board of Directors
has full confidence in the strength and stability of the U.S. equities market,
and particularly in the value of Webster shares. We look forward to speedy
resumption of normal market operations."

         Webster will repurchase these shares in the open market and unsolicited
negotiated transactions, including block purchases, over the next year. With
today's announcement, Webster has initiated nine stock repurchases since the
company became public in 1986. Five of those buybacks have taken place in the
last seven years.

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         Webster Financial Corporation is the holding company for Webster Bank,
which provides business and consumer banking, mortgage, insurance, trust and
investment services through more than 100 banking offices, 210 ATMs and the
Internet (www.websterbank.com). Webster Financial Corporation owns Center
Capital Corporation, an equipment financing company headquartered in Farmington,
Connecticut, and is majority owner of Chicago-based Duff & Phelps, a leader in
investment banking and financial advisory services.

         For more information on Webster, including past press releases and the
latest Annual Report, visit the Webster Bank website at www.websterbank.com..
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