Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 15

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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, which will deliver direct lending solutions for sponsor-backed middle market companies across the country.On June 30, 2025, the Company identified the individual loans to comprise the seed portfolio to launch the joint venture’s operations. Accordingly, the $242.2 million of commercial non-mortgage loans identified, in aggregate, were reclassified and transferred from Loans and leases to Loans held for sale on the accompanying Condensed Consolidated Balance Sheets. The $1.3 million difference between the lower of the amortized cost basis of the loans and their fair value at the time of transfer was charged-off and recognized in the Provision for credit losses on the accompanying Condensed Consolidated Statements of Income. The seed portfolio loans are included in Commercial Banking for segment reporting purposes.During the third quarter of 2025, the Company sold the majority of the seed portfolio loans. The transfers each met the requisite criteria to be accounted for as sales in accordance with ASC 860, Transfers and Servicing. In connection with the sales, the Company derecognized $202.0 million, in aggregate, from Loans held for sale and recognized a gain of $1.6 million in Other income on the accompanying Condensed Consolidated Statements of Income. The remainder of the seed portfolio loans are expected to be sold in the fourth quarter of 2025.Allegacy Federal Credit Union HSA Portfolio AcquisitionOn August 29, 2025, the Company acquired a portfolio of HSAs from Allegacy Federal Credit Union. The transaction was accounted for as an asset acquisition, and the Company received $6.2 million in both cash and deposits on the acquisition date. The Company also paid a 12% deposit premium based on the final settlement of deposits, which resulted in the recognition of a $0.7 million core deposit intangible asset.

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Note 3: Investment Securities

Available-for-SaleThe following tables summarize the amortized cost and fair value of available-for-sale securities by major type: September 30, 2025(In thousands)AmortizedCost (1)UnrealizedGainsUnrealizedLossesAllowance for Credit LossesFair ValueGovernment agency debentures$222,828 $— $(26,757)$— $196,071 Municipal bonds and notes117,230 — (9,316)— 107,914 Agency CMO27,955 — (2,122)— 25,833 Agency MBS5,106