Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 49

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 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 2.0 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:March 31, 2025Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated in hedge relationships:Interest rate derivatives (1)$2,750,000 $4,704 $2,250,000 $3,263 Not designated in hedge relationships:Interest rate derivatives (1)8,804,803 257,423 8,846,028 256,668 Mortgage banking derivatives 1,541 17 — — Other (2)343,572 205 783,094 659 Total not designated as hedging instruments9,149,916 257,645 9,629,122 257,327 Gross derivative instruments, before netting$11,899,916 262,349 $11,879,122 260,590 Less: Master netting agreements44,248 44,248 Cash collateral pledged168,060 8,940 Total derivative instruments, after netting$50,041 $207,402 December 31, 2024Asset DerivativesLiability Derivatives(In thousands)Notional AmountsFair ValueNotional AmountsFair ValueDesignated in hedge relationships:Interest rate derivatives (1)$750,000 $719 $4,250,000 $13,169 Not designated in hedge relationships:Interest rate derivatives (1)8,693,493 300,120 8,728,767 298