Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 116

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 116
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.79% and 4.73% for the three and nine months ended September 30, 2025, respectively, as compared to 4.30% and 4.04%, for the three and nine months ended September 30, 2024, respectively. The 49 and 69 basis point increases, respectively, are primarily due to higher yields on securities that were purchased in 2024 and 2025, as compared to the yields on securities with paydown activities or that were sold.

At September 30, 2025, and December 31, 2024, gross unrealized losses on available-for-sale securities were $573.0 million and $725.9 million, respectively. The $152.9 million decrease is primarily due to lower market interest rates. On a quarterly basis, each available-for-sale security that is in an unrealized loss position is evaluated to determine whether the decline in fair value below the amortized cost basis is a result of any credit related factors. There was no ACL recorded on available-for-sale securities at September 30, 2025. At December 31, 2024, the ACL on available-for-sale securities was $0.9 million, which related to a single Corporate debt security. Each of the Company’s available-for-sale securities in an unrealized loss position at September 30, 2025, are investment grade, current as to principal and interest, and their price changes are consistent with interest and credit spreads when adjusting for duration, convexity, rating, and industry differences. Based on current market conditions and the Company’s targeted balance sheet composition strategy, the Company intends to hold its available-for-sale securities in unrealized loss positions through the anticipated recovery period.

16

Held-to-maturity securities decreased $0.3 billion, or 4.3%, from $8.4 billion at December 31, 2024, to $8.1 billion at September 30, 2025, primarily due to paydown activities across the Agency MBS, Agency CMBS, and Municipal bonds and notes categories. There were no purchases of held-to-maturity securities during the nine months ended September 30, 2025. The average FTE yield on the held-to-maturity portfolio was 3.98% for both the three and nine months ended September 30, 2025, respectively, as compared to 3.90% and 3.68% for the three and nine