Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 183

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 183
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 valuation specialist, are not observable, and accordingly, are classified within Level 3 of the fair value hierarchy.The following tables summarize the unobservable inputs used to derive the estimated fair value of the Company’s contingent consideration liabilities (dollars in thousands):March 31, 2025AgreementMaximum AmountProbability of AchievementPayment Term(in years)Discount RateFair Value(i) Re-sign broker dealers$20799.0 %0.636.40 %$182(ii) Deposit program growth (1) (2)$12,500100.0 %0.086.40 %$12,500December 31, 2024AgreementMaximum AmountProbability of AchievementPayment Term(in years)Discount RateFair Value(i) Re-sign broker dealers $20799.0 %0.886.40 %$182(ii) Deposit program growth$12,500100.0 %0.506.40 %$11,568(1)During the first quarter of 2025, the Company re-evaluated its estimate of the forecasted achievement date (payment term) for the deposit program growth event earn-out, which resulted in a revised expected achievement date of April 30, 2025, instead of June 30, 2025. This change in estimate resulted in an increase in fair value of $0.9 million. (2)The Company generated the required $2.5 billion in new broker dealer deposit programs in April 2025, which resulted in the cash payment of $12.5 million on April 22, 2025, to settle its contingent consideration obligation with StoneCastle Partners LLC in accordance with the purchase agreement.Contingent consideration liabilities are included within Accrued expenses and other liabilities on the accompanying Condensed Consolidated Balance Sheets. Any fair value adjustments to contingent consideration liabilities are included in Other expense on the accompanying Condensed Consolidated Statements of Income.

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The following tables summarize the fair values of assets and liabilities measured at fair value on a recurring basis: March 31, 2025(In thousands)Level 1Level 2Level 3TotalFinancial Assets:Available-for-sale securities:Government agency debentures$— $192,341 $— $192,341 Municipal bonds and notes— 109,294 — 109,294 Agency CMO— 28,285 — 28,285 Agency MBS— 4,758,155 — 4