Company: WBS-PG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000801337-25-000083
Chunk: 209

Company: WEBSTER FINANCIAL CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 209
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 instruments, before netting (1)$43 $311,518 $— $311,561 Contingent consideration— — 11,750 11,750 Total financial liabilities$43 $311,518 $11,750 $323,311 (1)Additional information regarding the impact of netting derivative assets and derivative liabilities, as well as the impact from offsetting cash collateral with the same derivative counterparties, can be found within Note 13: Derivative Financial Instruments.(2)Certain alternative investments are recorded at NAV. Assets measured at NAV are not classified within the fair value hierarchy.

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Assets Measured at Fair Value on a Non-Recurring BasisThe Company measures certain assets at fair value on a non-recurring basis. The following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis.Alternative Investments. The measurement alternative has been elected for alternative investments without readily determinable fair values that do not qualify for the NAV practical expedient. The measurement alternative requires investments to be measured at cost minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Accordingly, these alternative investments are classified within Level 2 of the fair value hierarchy. At June 30, 2025, and December 31, 2024, the carrying amount of these alternative investments was $70.8 million and $61.5 million, respectively, of which $8.2 million and $8.3 million, respectively, were considered to be measured at fair value. During the six months ended June 30, 2025, there were $1.8 million in total write-ups due to observable price changes, and no write-downs due to impairment. Additionally, during the six months ended June 30, 2025, the Company sold alternative investments with a carrying amount of $3.8 million, for which the measurement alternative was elected, for proceeds of $9.5 million, resulting in total gains on sale of $5.7 million.Loans Transferred to Held for Sale. Once a decision has been made to sell loans that were not previously classified as held for sale, these loans are transferred into the held for sale category and carried at the lower of cost or fair value, less estimated costs to sell. At the time of transfer and classification as held for sale, any amount by which cost exceeds fair value is accounted