Company: WBS-PG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000801337-25-000104
Chunk: 66

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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)The Company re-signed the last existing broker dealer under contract in July 2025, which resulted in the cash payment of $0.2 million and an immaterial fair value adjustment.(2)During the first quarter of 2025, the Company re-evaluated its estimate of the forecasted achievement date (payment term) for the deposit program growth event earn-out, which resulted in a revised expected achievement date of April 30, 2025, instead of June 30, 2025. This change in estimate resulted in an increase in fair value of $0.9 million. The Company generated the required $2.5 billion in new broker dealer deposit programs in April 2025, which resulted in the cash payment of $12.5 million.The estimated fair values of the contingent consideration liabilities were measured on a recurring basis and determined using an income approach considering management’s evaluation of the probability of achievement, forecasted achievement date (payment term), and a discount rate equivalent to the cost of debt. These significant inputs, which are the responsibility of management and were calculated with the assistance of a third-party valuation specialist, are not observable, and accordingly, are classified within Level 3 of the fair value hierarchy.Contingent consideration liabilities are included within Accrued expenses and other liabilities on the accompanying Condensed Consolidated Balance Sheets. Any fair value adjustments to contingent consideration liabilities are included in Other expense on the accompanying Condensed Consolidated Statements of Income.

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The following tables summarize the fair values of assets and liabilities measured at fair value on a recurring basis: September 30, 2025(In thousands)Level 1Level 2Level 3TotalFinancial Assets:Available-for-sale securities:Government agency debentures$— $196,071 $— $196,071 Municipal bonds and notes— 107,914 — 107,914 Agency CMO— 25,833 — 25,833 Agency MBS— 5,011,855 — 5,011,855 Agency CMBS— 3,371,247 — 3,371,247 CMBS— 821,447 — 821,447 Corporate debt— 350,093 — 350,093 Private label MBS— 38,409 — 38,409 Other— 9,475 — 9,475 Total available-for-sale securities— 9,932,344