Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 43

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 43
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 to determine whether the decline in fair value below the amortized cost basis is a result of any credit related factors. During the fourth quarter of 2024, a $0.9 million ACL was recorded related to a single available-for-sale Corporate debt security. Each of the Company’s other available-for-sale securities in an unrealized loss position at December 31, 2024, 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, and industry differences.Based on current market conditions and the Company’s targeted balance sheet composition strategy, the Company intends to hold its available-for-sale securities with unrealized loss positions through the anticipated recovery period. The issuers of these available-for-sale securities have not, to the Company’s knowledge, established any cause for default. Market prices are expected to approach par as the securities approach maturity. There was no ACL recorded on available-for-sale securities at December 31, 2023.Contractual MaturitiesThe following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity:At December 31, 2024(In thousands)Amortized CostFair ValueMaturing within 1 year$6,343 $6,322 After 1 year through 5 years248,409 243,204 After 5 years through 10 years626,884 576,872 After 10 years8,838,779 8,180,202 Total available-for-sale$9,720,415 $9,006,600 Available-for-sale securities that are not due at a single maturity date have been categorized based on the maturity date of the underlying collateral. Actual principal cash flows may differ from this categorization as borrowers have the right to prepay their obligations with or without prepayment penalties.Sales of Available-for Sale SecuritiesThe following table summarizes information related to sales of available-for-sales securities:Years ended December 31,(In thousands)202420232022Proceeds from sales$2,142,462 $789,603 $172,947 Gross realized gains$2,240 $— $— Gross realized losses (1)(141,034)(37,356)(6,751)(1)For the years ended December 31, 2024, and 2023, respectively, $2.6 million and $3.8 million of the gross losses realized on sale of