Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 112

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 112
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891,90910.6 CMBS65,2590.8 65,6900.8 Total held-to-maturity$8,192,822100.0 %$8,444,362100.0 %Total investment securities$17,813,176$17,450,962

(1)The balances at June 30, 2025, and December 31, 2024, exclude the ACL recorded on held-to-maturity securities of $0.1 million and $0.2 million, respectively.

Available-for-sale securities increased $0.6 billion, or 6.8%, from $9.0 billion at December 31, 2024, to $9.6 billion at June 30, 2025, primarily due to purchases exceeding paydown activities, particularly across the Agency MBS, Agency CMBS, and CMBS categories. The average FTE yield on the available-for-sale portfolio was 4.72% and 4.70% for the three and six months ended June 30, 2025, respectively, as compared to 3.99% and 3.91%, for the three and six months ended June 30, 2024, respectively. The 73 and 79 basis point increases, respectively, are primarily due to higher yields on securities that were purchased over the past year, as compared to the yields on securities with paydown activities or that were sold.

At June 30, 2025, and December 31, 2024, gross unrealized losses on available-for-sale securities were $610.8 million and $725.9 million, respectively. The $115.1 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. At June 30, 2025, and 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 other available-for-sale securities in an unrealized loss position at June 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,