Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 98

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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 to lower market interest rates. On a quarterly basis, each available-for-sale security that is in an unrealized loss position is evaluated to determine whether the decline in fair value below the amortized cost basis is a result of any credit related factors. At March 31, 2025, and December 31, 2024, the ACL on available-for-sale securities was $0.9 million, which related to a single Corporate debt security. Each of the Company’s other available-for-sale securities in an unrealized loss position at March 31, 2025, are investment grade, current as to principal and interest, and their price changes are consistent with interest and credit spreads when adjusting for duration, convexity, rating, 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.

13

Held-to-maturity securities decreased $0.1 billion, or 1.7%, from $8.4 billion at December 31, 2024, to $8.3 billion at March 31, 2025, primarily due to paydown activities across the Agency MBS, Municipal bonds and notes, and Agency CMBS categories. There were no purchases of held-to-maturity securities during the three months ended March 31, 2025. The average FTE yield on the held-to-maturity portfolio was 3.97% for the three months ended March 31, 2025, as compared to 3.37% for the three months ended March 31, 2024. The 60 basis point increase is 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 March 31, 2025, and December 31, 2024, gross unrealized losses on held-to-maturity securities were $0.9 billion and $1.0 billion, respectively. The $0.1 billion 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 March 31, 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