Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 17

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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8,137,412 $(725,900)The $115.1 million decrease in gross unrealized losses of available-for-sale securities from December 31, 2024, to June 30, 2025, is primarily due to lower market interest rates. The Company assesses each available-for-sale security that is in an unrealized loss position on a quarterly basis 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, 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.Contractual MaturitiesThe following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity:June 30, 2025(In thousands)Amortized CostFair ValueMaturing within 1 year$884 $881 After 1 year through 5 years334,324 328,656 After 5 through 10 years702,943 660,919 After 10 years9,151,330 8,629,898 Total available-for-sale$10,189,481 $9,620,354 Available-for-sale securities that are not due at a single maturity date have been categorized based on the maturity date of the underlying collateral. Actual principal cash flows may differ from this categorization as borrowers have the right to prepay their obligations with or without prepayment penalties.Sales of Available-for Sale SecuritiesThe following table summarizes information related to sales of available-for-sales securities:Three months ended June 30,Six months ended June 30,(In thousands)2025202420252024Proceeds from sales$— $921,642 $14,880 $1,253,332 G