UPDATE 1-Webster to buy back $100 mln Treasury preferred stock
* Says repurchase not subject to issuance of capital
* Says repurchase to occur on March 3
* Says will record charge in Q1 2010.
March 1 (Reuters) - Webster Financial Corp (WBS.N) said it received U.S. governmental approval to repurchase $100 million, or 25 percent, of the shares of preferred stock issued to the Treasury under the Capital Purchase Program.
The holding company for Webster Bank said the repurchase is not subject to the issuance of additional capital or other conditions from the Treasury.
The company said the repurchase is expected to occur on March 3 and will accelerate the accretion of the remaining $1.6 million discount related to the preferred shares.
The company said it would record a reduction in retained earnings due to the repurchase in the first quarter of 2010.
Webster added its ratio of Tier common to risk-weighted assets will not be affected by the repurchase.
Shares of the company closed at $16 Friday on the New York Stock Exchange. (Reporting by Jochelle Mendonca in Bangalore; Editing by Jarshad Kakkrakandy)
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