Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 80

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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 time.The Company evaluates its contracts with Ametros customers for material rights, or options, to acquire additional goods or services for free or at a discount. The contracts for post-settlement medical management and compliance services contain renewal options that represent a material right, which is recognized as a separate performance obligation at the inception of the arrangement. The Company allocates the transaction price to material rights using the practical alternative, which allocates the transaction price to the services expected to be provided and the corresponding expected consideration. Material rights are recognized at the time the service is transferred or when the option expires.In addition, a fixed, non-refundable fee that represents an advance payment for access to future services is initially deferred and subsequently amortized into other income ratably over the estimated life expectancy of the member. During the three months ended June 30, 2025, and 2024, and during the six months ended June 30, 2025, and 2024, $0.5 million and $0.4 million, respectively, and $0.9 million and $0.7 million, respectively, of such deferred revenue was recognized in Other income.Contract Balances and Deferred CostsContracts with customers generated accounts receivable, deferred costs, and deferred revenue of $3.6 million, $4.6 million, and $24.0 million, respectively, at June 30, 2025, and $2.7 million, $3.0 million and $22.8 million, respectively at December 31, 2024. All of these balances pertain to contracts with customers from the acquired Ametros business.

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Note 17: Commitments and Contingencies

Credit-Related Financial InstrumentsIn the normal course of business, the Company offers financial instruments with off-balance sheet risk to meet the financing needs of its customers. These transactions include commitments to extend credit, standby letters of credit, and commercial letters of credit, which involve, to varying degrees, elements of credit risk.The following table summarizes the outstanding amounts of credit-related financial instruments with off-balance sheet risk:(In thousands)June 30,2025December 31, 2024Commitments to extend credit$12,285,376 $11,630,765 Standby letters of credit608,752 578,912 Commercial letters of credit27,842 28,287 Total credit-related financial instruments with off-balance sheet risk$12,921,970