Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 288

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 288
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100 basis points, while the long end of the yield curve remains unchanged, and vice versa. The short end of the yield curve is defined as terms less than eighteen months, and the long end of the yield curve is defined as terms greater than eighteen months. The results reflect the annualized impact of immediate interest rate changes.

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Sensitivity to the short end of the yield curve for net interest income changed from being asset sensitive to liability sensitive at December 31, 2024, as compared to December 31, 2023, primarily due to a change in deposit mix. As discussed above, in 2024, the Company experienced an increase in higher cost deposit products, such as interLINK money market sweep deposits, certificates of deposit, and online savings. In addition, the Company’s 2024 securities repositioning resulted in an increase in fixed-rate investment securities, further contributing to decreased asset sensitivity at the short end of the yield curve. Sensitivity to the long end of the yield curve generally remained unchanged from December 31, 2023, to December 31, 2024.

The following table summarizes the estimated economic value of financial assets, financial liabilities, and off-balance sheet financial instruments and the corresponding estimated change in economic value if interest rates were to instantaneously increase or decrease by 100 basis points at December 31, 2024, and 2023:

  BookValueEstimatedEconomicValueEstimated Economic Value Change (In thousands)-100bp+100bpAt December 31, 2024Assets$79,025,073$73,921,262$2,180,555 $(2,223,719)Liabilities69,891,85960,952,5512,089,770 (1,813,843)Net$9,133,214$12,968,711$90,785 $(409,876)Net change as % base net economic value0.7 %(3.2)%At December 31, 2023Assets$74,945,249$70,356,779$1,297,870$(1,350,496)Liabilities66,255,25361,722,4801,960,088(1,786,228)Net$8,689,996$8,634,299$(662,218)$435,732 Net change as % base net economic value(7.7)%5.0 %

Changes in economic value can best be