Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 144

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 144
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-maturity securities of $25.3 million and $30.5 million at March 31, 2025, and December 31, 2024, respectively, is excluded from amortized cost and included in Accrued interest receivable and other assets on the accompanying Condensed Consolidated Balance Sheets.An ACL on held-to-maturity securities is recorded for certain Municipal bonds and notes to account for expected lifetime credit losses. Agency securities represent obligations issued by a U.S. government-sponsored enterprise or other federally related entity and are either explicitly or implicitly guaranteed and, therefore, assumed to be zero loss. Held-to-maturity securities with gross unrealized losses and no ACL are considered to be high credit quality and, therefore, zero credit loss has been recorded.The following table summarizes the activity in the ACL on held-to-maturity securities:Three months ended March 31,(In thousands)20252024Balance, beginning of period$171 $209 (Benefit) for credit losses(62)(25)Balance, end of period$109 $184 Contractual MaturitiesThe following table summarizes the amortized cost and fair value of held-to-maturity securities by contractual maturity: March 31, 2025(In thousands)Amortized CostFair ValueMaturing within 1 year$2,889 $2,890 After 1 year through 5 years163,206 155,882 After 5 through 10 years240,712 232,099 After 10 years7,891,229 7,013,853 Total held-to-maturity$8,298,036 $7,404,724 Held-to-maturity 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.

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Credit Quality InformationThe Company monitors the credit quality of held-to-maturity securities through credit ratings provided by S&P, Moody’s, Fitch Ratings, Inc., Kroll Bond Rating Agency, or DBRS Inc. Credit ratings express opinions about the credit quality of a security and are updated at each quarter end. Investment grade securities are rated BBB- or higher by S&P, or Baa3 or higher by Moody’s, and are generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade, which are labeled as speculative