Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 113

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 113
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 and industry differences. Based on current market conditions and the Company’s targeted balance sheet composition strategy, the Company intends to hold its available-for-sale securities in unrealized loss positions through the anticipated recovery period.

16

Held-to-maturity securities decreased $0.2 billion, or 3.0%, from $8.4 billion at December 31, 2024, to $8.2 billion at June 30, 2025, primarily due to paydown activities across the Agency MBS, Agency CMBS, and Municipal bonds and notes categories. There were no purchases of held-to-maturity securities during the six months ended June 30, 2025. The average FTE yield on the held-to-maturity portfolio was 3.99% and 3.98% for the three and six months ended June 30, 2025, respectively, as compared to 3.73% and 3.56% for the three and six months ended June 30, 2024, respectively. The 26 and 42 basis point increases, respectively, are primarily due to higher yields on securities that were purchased over the past year, as compared to the yields on securities with paydown activities.

At June 30, 2025, and December 31, 2024, gross unrealized losses on held-to-maturity securities were $913.4 million and $992.7 million, respectively. The $79.3 million decrease is primarily due to lower market interest rates. Held-to-maturity securities are evaluated for credit losses on a quarterly basis under the CECL methodology. At June 30, 2025, and December 31, 2024, the ACL on held-to-maturity securities was $0.1 million and $0.2 million, respectively.

The following table summarizes the maturity distribution of investment securities by the earlier of either contractual maturity or call date, as applicable, along with their respective weighted-average yields:June 30, 20251 Year or Less1 - 5 Years5 - 10 YearsAfter 10 YearsTotal(Dollars in thousands)AmountWeighted-AverageYield (1)AmountWeighted-AverageYield (1)AmountWeighted-AverageYield (1)AmountWeighted-AverageYield (1)AmountWeighted-AverageYield (1)Available-for-sale:Government agency debentures$— — %$— —