Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 76

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 76
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.0 DTA valuation allowance adjustment, net31,091 3.1 (368)— (9,874)(1.2)Other, net(5,774)(0.6)(3,943)(0.4)(675)(0.1)Income tax expense and effective tax rate$248,300 24.4 %$216,664 20.0 %$153,694 19.3 %

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The following table reflects the significant components of DTAs, net:  At December 31,(In thousands)20242023Deferred tax assets:ACL on loans and leases$187,348 $171,870 Net operating loss and credit carry forwards74,363 68,103 Compensation and employee benefit plans50,880 46,670 Lease liabilities under operating leases52,397 60,331 Net unrealized loss on available-for-sale securities193,309 191,922 Other71,008 72,546 Gross deferred tax assets629,305 611,442 Valuation allowance(64,422)(28,746)Total deferred tax assets, net of valuation allowance$564,883 $582,696 Deferred tax liabilities:ROU assets under operating leases$44,434 $49,754 Equipment financing leases54,990 54,300 Goodwill and other intangible assets102,042 59,817 Purchase accounting and fair value adjustments10,359 15,527 Other36,202 34,086 Gross deferred tax liabilities248,027 213,484 Deferred tax assets, net$316,856 $369,212 The Company’s net DTAs decreased by $52.4 million during 2024, reflecting primarily a $35.9 million net DTL recognized as part of purchase accounting adjustments related to the acquisition of Ametros and the $18.2 million deferred tax expense, partially offset by a $2.5 million benefit allocated directly to AOCL.The valuation allowance of $64.4 million at December 31, 2024, is comprised of $62.7 million attributable to SALT net operating loss and credit carryforwards and $1.7 million of capital loss carryforwards, as compared to $28.7 million at December 31, 2023, primarily attributable to SALT net operating loss carryforwards. The $35.7 million increase