Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 287

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 287
---
 positions are recognized in earnings. Additional information regarding derivatives can be found within Note 17: Derivative Financial Instruments in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data.

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 December 31, 2024, and 2023, as compared to actual net interest income and assuming no changes in interest rates:

-300bp-200bp-100bp+100bp+200bp+300bpDecember 31, 2024(1.6)%(0.6)%—%0.4%0.6%0.8%December 31, 2023(7.2)%(4.5)%(2.0)%1.7%3.3%5.4%

Asset sensitivity in terms of net interest income decreased at December 31, 2024, as compared to at December 31, 2023, primarily due to changes in the overall balance sheet composition, which included an increase in fixed-rate investment securities as a result of securities repositioning in 2024, an increase in fixed-rate residential loans, and an increase in higher cost deposit products, such as interLINK money market sweep deposits, certificates of deposit, and online savings, partially offset by a decrease in demand deposit accounts. 

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 for the subsequent twelve-month period starting at December 31, 2024, and 2023:

Short End of the Yield CurveLong End of the Yield Curve-100bp-50bp+50bp+100bp-100bp-50bp+50bp+100bpDecember 31, 20242.1%1.0%(0.7)%(1.6)%(2.2)%(1.0)%1.0%1.9%December 31, 2023(1.8)%(0.8)%0.4%0.7%(2.3)%(1.1)%1.1%2.2%

These non-parallel scenarios are modeled with the short end of the yield curve moving up or down 50 and