Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 206

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 206
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 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 debt into variable-rate debt. Certain purchased options are also designated as cash flow hedges, allowing 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. The maximum length of time over which forecasted transactions are hedged is 2.3 years.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:September 30, 2025Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated in hedge relationships:Interest rate derivatives (1)$4,250,000 $5,951 $1,000,000 $645 Not designated in hedge relationships:Interest rate derivatives (1)9,182,657 234,279 9,328,401 233,509 Mortgage banking derivatives 938 6 — — Other (2)325,308 209 1,000,122 520 Total not designated as hedging instruments9,508,903 234,494 10,328,523 234,029 Gross derivative instruments, before netting$13,758,903 240,445 $11,328,523 234,674 Less: Master netting agreements69,860 69,860 Cash collateral pledged88,707 11,630 Total derivative instruments, after netting$81,878 $153,184 December 31, 2024Asset DerivativesLiability