Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 173

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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 to subsequently measure its investments in qualified affordable housing projects.The following table summarizes the Company’s LIHTC investments and related unfunded commitments:(In thousands)March 31, 2025December 31, 2024Gross investment in LIHTC investments$1,510,214 $1,439,461 Accumulated amortization(254,162)(222,101)Net investment in LIHTC investments$1,256,052 $1,217,360 Unfunded commitments for LIHTC investments$749,732 $720,890 The aggregate carrying value of the Company’s LIHTC investments and the related unfunded commitments are included in Accrued interest receivable and other assets and Accrued expenses and other liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The Company’s maximum exposure to loss related to its LIHTC investments is generally the aggregate carrying value as of each reporting date. However, income tax credits recognized related to these investments are subject to recapture by taxing authorities for up to a period of 15 years based on compliance provisions that are required to be met at the project level. During the three months ended March 31, 2025, and 2024, there were $70.8 million and $158.7 million of commitments approved to fund LIHTC investments, respectively.The following table summarizes the amount of income tax credits and other income tax benefits, and investment amortization generated from the Company’s LIHTC investments, which are recognized as a component of income tax expense on the accompanying Condensed Consolidated Statements of Income:Three months ended March 31,(In thousands)20252024Income tax credits and other income tax benefits from LIHTC investments$(41,706)$(28,024)Investment amortization from LIHTC investments32,061 20,413 Income tax credits and other income tax benefits, and investment amortization generated from the Company’s LIHTC investments, are included as a component of operating activities on the accompanying Condensed Consolidated Statements of Cash Flows.

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Webster Statutory Trust I. The Company owns all the outstanding common stock of Webster Statutory Trust I, a financial vehicle that has issued, and in the future may issue, trust preferred securities. The Company is not the primary beneficiary of Webster Statutory Trust I. The only assets of Webster Statutory Trust I are junior subordinated debentures that are issued by the Company, which were