Company: WBS-PG
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000801337-25-000004
Chunk: 72

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 72
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 enters into operating leases in the normal course of business, primarily for office space, banking centers, and other operational activities. These leases generally have remaining lease terms of one to ten years. The Company does not have any finance leases in which it is the lessee, nor any significant sub-lease arrangements.The following table summarizes the Company’s ROU lease assets and operating lease liabilities:At December 31,(In thousands)Consolidated Balance Sheet Line Item20242023ROU lease assets Premises and equipment, net$163,827$183,441Operating lease liabilitiesAccrued expenses and other liabilities193,188222,439There were no ROU lease asset impairment charges during the years ended December 31, 2024, and 2023. During the year ended December 31, 2022, a $23.1 million ROU asset impairment charge was included in Occupancy on the accompanying Consolidated Statements of Income attributed to the Company’s 2022 corporate real estate consolidation plan. The amount of impairment charge was calculated as the difference between the estimated fair value of the assets, which was determined using a discounted cash flow technique, relative to their book value.

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The following table summarizes the components of operating lease expense and other relevant information:At or for the Years ended December 31,(In thousands)202420232022Lease Cost:Operating lease cost$36,235$33,880$38,975Variable lease cost4,8804,6175,679Sublease income(909)(223)(1,383)Total operating lease expense$40,206$38,274$43,271Other Information:Cash paid for amounts included in the measurement of operating lease liabilities$36,080$37,615$44,767ROU lease assets obtained in exchange for operating lease liabilities (1)10,44422,98927,897Weighted-average remaining lease term (in years)7.087.467.72Weighted-average discount rate3.20  %2.96  %2.65  %(1)Excludes $0.5 million of ROU lease assets acquired from Ametros for the year ended December 31, 2024, and $100.0 million of ROU lease assets acquired from Sterling for the year ended December 31, 2022.The following table reconciles undiscounted future lease payments to total operating lease liabilities:(In thousands)At December 31, 20242025$33,221