Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 56

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 designated as fair value hedges to effectively convert fixed-rate debt into variable-rate debt. Certain purchased options are also designated as cash flow hedges, allowing the Company to limit the potential adverse impact of variable interest rates by establishing a cap rate or floor rate in exchange for an upfront premium. The purchased options designated as cash flow hedges represent interest rate caps where payment is received from the counterparty if interest rates rise above the cap rate, and interest rate floors where payment is received from the counterparty when interest rates fall below the floor rate. The maximum length of time over which forecasted transactions are hedged is 2.4 years.Derivatives Not Designated in Hedge Relationships. The Company also enters into derivative transactions that are not designated in hedge relationships. The Company has a back-to-back swap program, whereby it enters into an interest rate swap with a qualified customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty, to hedge interest rate risk. Derivative assets and derivative liabilities with the same counterparty are presented on a net basis when master netting agreements are in place.The following tables present the notional amounts and fair values, including accrued interest, of derivative positions:June 30, 2025Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated in hedge relationships:Interest rate derivatives (1)$3,500,000 $5,666 $1,750,000 $1,475 Not designated in hedge relationships:Interest rate derivatives (1)8,495,135 241,293 9,406,550 240,723 Mortgage banking derivatives 364 3 — — Other (2)279,668 593 788,112 1,589 Total not designated as hedging instruments8,775,167 241,889 10,194,662 242,312 Gross derivative instruments, before netting$12,275,167 247,555 $11,944,662 243,787 Less: Master netting agreements59,898 59,898 Cash collateral pledged114,607 15,860 Total derivative instruments, after netting$73,050 $168,029 December 31, 2024Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated in hedge relationships:Interest rate derivatives