Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 256

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 256
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 funds purchased at December 31, 2024, as compared to $100.0 million at December 31, 2023;

•FHLB advances decreased $249.9 million, primarily due to a change in short-term funding mix;

•Long-term debt decreased $139.6 million, primarily due to the maturity of its 4.375% senior notes in February 2024; and

•Accrued expenses and other liabilities increased $171.6 million. Notable drivers of the change included increases in unfunded commitments for LIHTC investments, accrued compensation, accrued income taxes, and deferred revenue, partially offset by decreases in operating lease liabilities and accrued interest payable.

Total stockholders’ equity increased $0.4 billion, or 5.1%, from $8.7 billion at December 31, 2023, to $9.1 billion at December 31, 2024. The change in stockholders’ equity was attributed to the following:

•Net income recognized of $768.7 million;

•Other comprehensive loss, net of tax, of $5.8 million;

•Dividends paid to common and preferred stockholders of $275.4 million and $16.7 million, respectively;

•Stock-based compensation expense of $55.1 million;

•Stock options exercised of $0.3 million; and

•Repurchases of common stock of $65.8 million under the Company’s common stock repurchase program and $17.2 million related to employee share-based compensation plans. 

45

Investment Securities

Through its Corporate Treasury function, the Company maintains and invests in debt securities that are primarily used to provide a source of liquidity for operating needs, as a means to manage the Company’s interest-rate risk, and to generate interest income. The Company’s investment securities are classified into two major categories: available-for-sale and held-to-maturity.

The ALCO manages the Company’s investment securities in accordance with regulatory guidelines and corporate policies, which include limitations on aspects such as concentrations in and types of investments, as well as minimum risk ratings per type of security. In addition, the OCC may further establish individual limits on certain types of investments if the concentration in such security presents a safety and soundness concern. Although the Bank held the entirety of the Company’s investment securities portfolio at both December 31, 2024, and 2023, the Holding Company may also