Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 27

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 pass rated loans to assess the accuracy of the risk grade. Criticized loans undergo more frequent reviews and enhanced monitoring.To measure credit risk for the consumer portfolio, the most relevant credit characteristic is the FICO score, which is a widely used credit scoring system that ranges from 300 to 850. A lower FICO score is indicative of higher credit risk and a higher FICO score is indicative of lower credit risk. FICO scores are updated at least quarterly. Factors such as past due status, employment status, collateral, geography, loans discharged in bankruptcy, and the status of first lien position loans on second lien position loans, are also considered to be consumer portfolio credit quality indicators. For portfolio monitoring purposes, the Company estimates the current value of property secured as collateral for home equity and residential first mortgage lending products on an ongoing basis. The estimate is based on home price indices compiled by the S&P/Case-Shiller Home Price Indices. Real estate price data is applied to the loan portfolios taking into account the age of the most recent valuation and geographic area.

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The following tables summarize the amortized cost basis of commercial loans and leases by Composite Credit Risk Profile grade and origination year:June 30, 2025(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotalCommercial non-mortgage:Risk rating:Pass$1,426,513 $2,647,354 $1,654,046 $2,464,246 $1,161,443 $1,581,608 $6,721,873 $17,657,083 Special mention— 36,433 59,114 126,804 91 — 34,158 256,600 Substandard44,829 46,676 156,110 207,319 90,287 92,189 173,378 810,788 Doubtful— — — — 43 306 1 350 Total commercial non-mortgage1,471,342 2,730,463 1,869,270 2,798,369 1,251,864 1,674,103 6,929,410 18,724,821 Current period gross write-offs1,317 1,242 7,673 5,780 489 8,960 18,291 43,752 Asset-based:Risk rating:Pass2,850