Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 123

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 123
---
 measured using simulation analysis and asset/liability modeling software to calculate the Company’s earnings at risk and equity at risk. Earnings at risk is defined as the change in net interest income due to change in interest rates. Equity at risk is defined as the change in the net economic value of financial assets, financial liabilities, and off-balance sheet financial instruments, due to changes in interest rates compared to a base net economic value.

Information regarding the key model assumptions and methods used to calculate the Company’s earnings at risk and equity at risk, along with other information regarding the Company’s asset/liability management process overall, can be found under the section captioned “Asset/Liability Management and Market Risk” contained in Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There were no changes to management's asset/liability management process during the three months ended March 31, 2025, that had a material impact on its measurement of interest rate risk.

The following table summarizes the estimated impact that gradual parallel changes in interest rates of up and down 100, 200, and 300 basis points might have on the Company’s net interest income over a twelve-month period starting at March 31, 2025, and December 31, 2024, as compared to actual net interest income and assuming no changes in interest rates:

-300bp-200bp-100bp+100bp+200bp+300bpMarch 31, 2025(2.8)%(1.4)%(0.5)%0.8%1.4%1.8%December 31, 2024(1.6)%(0.6)%—%0.4%0.6%0.8%

Asset sensitivity in terms of net interest income increased from December 31, 2024, to March 31, 2025, primarily due to changes in the overall balance sheet composition, which included an increase in cash and cash equivalents and floating-rate commercial & institutional loans, partially offset by an increase in residential mortgages.

The following table summarizes the estimated impact that yield curve twists or immediate non-parallel changes in interest rates of up and down 50 and 100 basis points might have on the Company’s net interest income over a twelve-month period starting at March 31, 2025, and December 31, 2024:

Short End of