This excerpt taken from the WBS 8-K filed Jan 8, 2008.
Other preliminary fourth quarter 2007 earnings information:
Webster previously disclosed that stock buyback activity in the fourth quarter coupled with recent Fed Funds rate reductions and higher levels of nonaccruals would reduce the net interest margin from the 3.38 percent reported for the third quarter of 2007. As a result, the company expects the net interest margin to decline by 12 basis points to 3.26 percent for the fourth quarter of 2007. While Webster is essentially neutral to interest rate shifts over a twelve-month period, recent reductions in the Fed Funds rate have resulted in faster downward re-pricing of loans versus deposits in the near term. Also, given the impact of the reserving decisions on fourth quarter earnings, Webster does not anticipate resuming stock buybacks in the near term. Webster repurchased 1.3 million shares in the fourth quarter of 2007.