Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 124

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 124
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 the Yield CurveLong End of the Yield Curve-100bp-50bp+50bp+100bp-100bp-50bp+50bp+100bpMarch 31, 20251.3%0.6%(0.2)%(0.7)%(2.2)%(1.1)%1.0%2.0%December 31, 20242.1%1.0%(0.7)%(1.6)%(2.2)%(1.0)%1.0%1.9%

Sensitivity to the short end of the yield curve for net interest income decreased from December 31, 2024, to March 31, 2025, also primarily due to changes in the overall balance sheet composition. Sensitivity to the long end of the yield curve generally remained unchanged from December 31, 2024, to March 31, 2025.

The following table summarizes the estimated economic value of financial assets, financial liabilities, and off-balance sheet financial instruments and the corresponding estimated change in economic value if interest rates were to instantaneously increase or decrease by 100 basis points at March 31, 2025, and December 31, 2024:

(Dollars in thousands)EstimatedEconomicValueEstimated Economic Value Change-100bp+100bpMarch 31, 2025Assets$75,440,857 $2,146,957 $(2,291,204)Liabilities63,452,563 2,052,205 (1,852,433)Net$11,988,294 $94,752 $(438,771)Net change as % base net economic value0.8 %(3.7)%December 31, 2024Assets$73,921,262 $2,180,555 $(2,223,719)Liabilities60,952,551 2,089,770 (1,813,843)Net$12,968,711 $90,785 $(409,876)Net change as % base net economic value0.7 %(3.2)%

Changes in economic value can best be described through duration, which is a measure of the price sensitivity of financial assets and financial liabilities due to changes in interest rates. Overall, the longer the duration, the greater the price sensitivity due to changes in interest rates.

Duration gap represents the difference between the duration of financial assets and financial