Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 61

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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ized inThree months ended September 30,Nine months ended September 30,(In thousands)Net Interest Income2025202420252024Fair value hedges:Interest rate derivativesDeposits interest expense$— $— $— $(1,320)Net recognized on fair value hedges (1)$— $— $— $1,320 Cash flow hedges:Interest rate derivativesLong-term debt interest expense$— $— $— $34 Interest rate derivativesInterest and fees on loans and leases(2,748)(12,104)(8,692)(34,715)Net recognized on cash flow hedges (2)$(2,748)$(12,104)$(8,692)$(34,749)(1)The Company de-designated its fair value hedging relationship on $400.0 million of deposits, which pertained to a portion of Ametros’ member deposits, in 2023. The $1.3 million basis adjustment included in the carrying amount of deposits at December 31, 2023, was recognized in interest expense in January 2024 upon the acquisition of Ametros.(2)Additional information regarding the amounts recognized in net income related to cash flow hedge activities can be found within Note 9: Accumulated Other Comprehensive (Loss), Net of Tax.The following table summarizes the income statement effect of derivatives not designated in hedge relationships:Recognized inThree months ended September 30,Nine months ended September 30,(In thousands)Non-interest Income2025202420252024Interest rate derivativesOther income$4,695 $(5,373)$2,767 $(5,817)Mortgage banking derivativesOther income3 5 2 (25)OtherOther income442 (1,655)(4,565)281 Total not designated as hedging instruments$5,140 $(7,023)$(1,796)$(5,561)

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Derivative Exposure. At September 30, 2025, the Company had $94.9 million of cash collateral received and $11.6 million of cash collateral posted included in Cash and due from banks on the accompanying Condensed Consolidated Balance Sheets. In addition, the Company had $3.6 million in initial margin posted at clearing houses. The Company regularly evaluates the credit risk of its derivative customers, taking into account the likelihood of default, net exposures, and remaining contractual life, among other