Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 68

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 68
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 resulted in net gains on sale of $0.5 million, $0.9 million, and $3.3 million, respectively.

103

Residential Mortgage Sales and ServicingThe Company originates and sells residential mortgage loans in the normal course of business, primarily to government-sponsored entities through established programs and securitizations. During the years ended December 31, 2024, 2023, and 2022, the Company sold $9.1 million, $12.8 million, and $35.8 million, respectively, of residential mortgage loans originated for sale, which resulted in net (losses) gains on sale of $(0.7) million, $1.1 million, and $0.6 million, respectively.The Company may retain servicing rights on its residential mortgage loans sold in the normal course of business. For the years ended December 31, 2024, 2023, and 2022, residential mortgage loans sold with servicing rights retained were $4.4 million, $6.5 million, and $32.1 million, respectively. At December 31, 2024, and 2023, the aggregate UPB of residential mortgage loans serviced for others was $0.4 billion and $1.8 billion, respectively.The following table summarizes the change in the carrying amount for mortgage servicing rights: Years ended December 31,(In thousands)202420232022Balance, beginning of period$8,523 $9,515 $9,237 Acquired from Sterling— — 859 Additions36 71 289 Amortization(670)(1,063)(870)Sales(6,655)— — Balance, end of period$1,234 $8,523 $9,515 Mortgage servicing rights, which are included in Accrued interest receivable and other assets on the accompanying Consolidated Balance Sheets, are initially measured at fair value and subsequently measured using the amortization method. During the fourth quarter of 2023, the Company committed to and initiated a plan to actively market and sell the majority of its mortgage servicing portfolio. Upon making this determination, the Company treated the related mortgage servicing rights as assets held for disposition, and ceased the recognition of any future amortization expense. On February 12, 2024, the Company completed the sale, which comprised 9,184 individual residential mortgage loans with an aggregate UPB of