Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 98

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 98
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ivative Positions and OffsettingDerivatives Designated in Hedge Relationships. Interest rate swaps allow the Company to change the fixed or variable nature of an interest rate without the exchange of the underlying notional amount. Certain pay fixed/receive variable interest rate swaps are designated as cash flow hedges to effectively convert variable-rate debt into fixed-rate debt, whereas certain receive fixed/pay variable interest rate swaps are designated as fair value hedges to effectively convert fixed-rate long-term debt into variable-rate debt. Certain purchased options are also designated as cash flow hedges. Purchased options allow the Company to limit the potential adverse impact of variable interest rates by establishing a cap rate or floor rate in exchange for an upfront premium. The purchased options designated as cash flow hedges represent interest rate caps where payment is received from the counterparty if interest rates rise above the cap rate, and interest rate floors where payment is received from the counterparty when interest rates fall below the floor rate. Derivatives Not Designated in Hedge Relationships. The Company also enters into derivative transactions that are not designated in hedge relationships. The Company has a back-to-back swap program, whereby it enters into an interest rate swap with a qualified customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty, to hedge interest rate risk. Derivative assets and derivative liabilities with the same counterparty are presented on a net basis when master netting agreements are in place.The following tables present the notional amounts and fair values, including accrued interest, of derivative positions:At December 31, 2024Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated as hedging instruments:Interest rate derivatives (1)$750,000 $719 $4,250,000 $13,169 Not designated as hedging instruments:Interest rate derivatives (1)8,693,493 300,120 8,728,767 298,296 Mortgage banking derivatives (2)584 3 — — Other (3)337,370 1,300 833,449 96 Total not designated as hedging instruments9,031,447 301,423 9,562,216 298,392 Gross derivative instruments, before netting$9,781,447 302,142 $13,812,216 311,561 Less: Master netting agreements31,881 31,881  Cash collateral pledged