Company: WBS-PG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000801337-25-000026
Chunk: 197

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 197
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 options that represent a material right, which is recognized as a separate performance obligation at the inception of the arrangement. The Company allocates the transaction price to material rights using the practical alternative, which allocates the transaction price to the services expected to be provided and the corresponding expected consideration. Material rights are recognized at the time the service is transferred or when the option expires.In addition, a fixed, non-refundable fee that represents an advance payment for access to future services is initially deferred and subsequently amortized into other income ratably over the estimated life expectancy of the member. During the three months ended March 31, 2025, and 2024, $0.5 million and $0.3 million, respectively, of such deferred revenue was recognized in Other income.Contract Balances and Deferred CostsContracts with customers generated accounts receivable, deferred costs, and deferred revenue of $3.0 million, $3.8 million, and $23.3 million, respectively, at March 31, 2025, and $2.7 million, $3.0 million and $22.8 million, respectively at December 31, 2024. All of these balances pertain to contracts with customers from the acquired Ametros business.

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Note 17: Commitments and Contingencies

Credit-Related Financial InstrumentsIn the normal course of business, the Company offers financial instruments with off-balance sheet risk to meet the financing needs of its customers. These transactions include commitments to extend credit, standby letters of credit, and commercial letters of credit, which involve, to varying degrees, elements of credit risk.The following table summarizes the outstanding amounts of credit-related financial instruments with off-balance sheet risk:(In thousands)March 31,2025December 31, 2024Commitments to extend credit$11,951,465 $11,630,765 Standby letters of credit582,193 578,912 Commercial letters of credit38,658 28,287 Total credit-related financial instruments with off-balance sheet risk$12,572,316 $12,237,964 The Company enters into contractual commitments to extend credit to its customers (i.e., revolving credit arrangements, term loan commitments, and short-term borrowing agreements), generally with fixed expiration dates or other termination clauses and that require payment of a fee. Substantially all of the Company’s commitments to extend credit are contingent upon its customers maintaining specific credit standards at the time of loan