Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 71

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 71
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 consolidation plan, in the third quarter of 2022, the Company arranged to sell its New Britain, Connecticut, property, which comprised of land, buildings, and improvements. Upon making the determination to sell, the Company recognized a $1.8 million write-down and then transferred the property to assets held for disposition at its fair market value of $4.8 million. The sale of the New Britain property closed during the third quarter of 2023. The Company received cash proceeds of $4.1 million and recognized a loss on sale of $0.7 million.

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Note 7: Leasing

Lessor ArrangementsThe Company leases certain types of machinery and equipment to its customers through sales-type and direct financing leases as part of its equipment financing portfolio. These leases generally have remaining lease terms of one to ten years, some of which include renewal options and/or options for the lessee to purchase the asset near or at the end of the lease term. The Company recognized interest income from its sales-type and direct financing lessor activities of $19.3 million, $18.7 million, and $15.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company does not have any significant operating leases in which it is the lessor. Additional information regarding the Company’s equipment financing portfolio can be found within Note 4: Loans and Leases.The following table summarizes the components of the Company’s net investment in its sales-type and direct financing leases:At December 31,(In thousands)20242023Lease receivables$394,489$347,827Unguaranteed residual values (1)63,01460,747Total net investment$457,503$408,574(1)The Company performs quarterly reviews of residual values associated with its equipment finance leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee, and other factors that may impact the residual value to assess for impairment.The following table reconciles undiscounted future lease payments to the total sales-type and direct financing leases’ net investment:(In thousands)At December 31, 20242025$128,7902026127,483202780,011202867,809202932,470Thereafter77,070Total lease payments receivable513,633Present value adjustment(56,130)Total net investment$457,503Lessee ArrangementsThe Company