Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 207

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 207
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30, 2025AgreementMaximum AmountProbability of AchievementPayment Term(in years)Discount RateFair Value(i) Re-sign broker dealers$20799.0 %0.386.40 %$182(ii) Deposit program growth (1) (2)n/an/an/an/an/aDecember 31, 2024AgreementMaximum AmountProbability of AchievementPayment Term(in years)Discount RateFair Value(i) Re-sign broker dealers $20799.0 %0.886.40 %$182(ii) Deposit program growth (1) (2)$12,500100.0 %0.506.40 %$11,568(1)During the first quarter of 2025, the Company re-evaluated its estimate of the forecasted achievement date (payment term) for the deposit program growth event earn-out, which resulted in a revised expected achievement date of April 30, 2025, instead of June 30, 2025. This change in estimate resulted in an increase in fair value of $0.9 million. (2)The Company generated the required $2.5 billion in new broker dealer deposit programs in April 2025, which resulted in the cash payment of $12.5 million on April 22, 2025, to settle its contingent consideration obligation with StoneCastle Partners LLC in accordance with the purchase agreement.Contingent consideration liabilities are included within Accrued expenses and other liabilities on the accompanying Condensed Consolidated Balance Sheets. Any fair value adjustments to contingent consideration liabilities are included in Other expense on the accompanying Condensed Consolidated Statements of Income.

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The following tables summarize the fair values of assets and liabilities measured at fair value on a recurring basis: June 30, 2025(In thousands)Level 1Level 2Level 3TotalFinancial Assets:Available-for-sale securities:Government agency debentures$— $192,436 $— $192,436 Municipal bonds and notes— 103,808 — 103,808 Agency CMO— 27,113 — 27,113 Agency MBS— 4,831,605 — 4,831,605 Agency CMBS— 3,224,198 — 3,224,198 CMBS— 790,132 — 790,132 Corporate debt— 403,373 — 403,373 Private label MBS— 38