Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 157

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 157
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 member’s behalf. Members’ funds is the corresponding liability to the Funds held in escrow. Given that these amounts can be withdrawn and/or directed for use on demand, as long as in accordance with the terms of the settlement agreement, their carrying amount is a reasonable estimate of fair value.Sale of Mortgage Servicing Rights On February 12, 2024, the Company sold the majority of its mortgage servicing portfolio, which comprised 9,184 individual residential mortgage loans with an aggregate UPB of $1.4 billion. In connection with the sale, the Company received net cash proceeds of $18.4 million and derecognized $6.7 million of mortgage servicing rights. The resulting $11.7 million net gain on sale of mortgage servicing rights is included in Other income on the Condensed Consolidated Statements of Income and in Consumer Banking for segment reporting purposes.Joint Venture with Marathon Asset ManagementOn July 19, 2024, the Company, through its subsidiary, MW Advisor Holding, LLC, entered into an agreement with Marathon Asset Management and formed a private credit joint venture, which will deliver direct lending solutions for sponsor-backed middle market companies across the country.On June 30, 2025, the Company identified the individual loans to comprise the seed portfolio to launch the joint venture’s operations. Accordingly, the $242.2 million of commercial non-mortgage loans identified, in aggregate, were reclassified and transferred from Loans and leases to Loans held for sale on the accompanying Condensed Consolidated Balance Sheets. The $1.3 million difference between the lower of the amortized cost basis of the loans and their fair value at the time of transfer was charged-off and recognized in the Provision for credit losses on the accompanying Condensed Consolidated Statements of Income. The seed portfolio loans are included in Commercial Banking for segment reporting purposes.

In July 2025, the Company sold a portion of the seed portfolio loans. The transfer met the requisite criteria to be accounted for as a sale in accordance with ASC 860, Transfers and Servicing. In connection with the sale, the Company derecognized $33.3 million from Loans held for sale and recognized an immaterial gain. The remainder of the seed portfolio loans are expected to be sold later in the third quarter of 2025.

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Note 3: Investment Securities

Available-for-SaleThe following tables summarize the amortized cost and fair value of available-for-sale securities by major type: June 30,