Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Of Derivative Financial Instruments Designated As Cash Flow Hedges

The table below presents the fair value of Webster’s derivative financial instruments designated as cash flow hedges as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011:

		At September 30, 2012						At December 31, 2011
(Dollars in thousands)	Balance Sheet Classification	# of Instruments	Notional Amount		Estimated Fair Value			# of Instruments	Notional Amount		Estimated Fair Value
Interest rate derivatives designated as hedges of cash flow:
Interest rate swap on FHLB advances	Other liabilities	1	$	100,000	$	(861	)	1	$	100,000	$	(1,521	)
Forward settle interest rate swap on anticipated debt	Other liabilities	6	200,000		(14,524		)	4	200,000		(15,050		)

Net Impact On Interest Expense Related To Cash Flow Hedges

The net impact on interest expense related to cash flow hedges for the three and nine months ended September 30, 2012 and 2011 is presented below:

	Three months ended September 30,
	2012								2011
(In thousands)	Interest Expense		Realized Deferred Loss (Gain)			Net Impact			Interest Expense		Realized Deferred Loss (Gain)			Net Impact
Impact reported as an increase or (reduction) in interest expense on borrowings
Interest rate swaps on FHLB advances	$	351	$	1,139		$	1,490		$	400	$	491		$	891
Interest rate swaps on subordinated debt	—		(21		)	(21		)	—		(37		)	(37		)
Interest rate swaps repurchase agreement	—		830			830			—		469			469
Interest rate swaps on Trust Preferred Securities	—		(16		)	(16		)	—		(45		)	(45		)
Net impact on interest expense on borrowings	$	351	$	1,932		$	2,283		$	400	$	878		$	1,278

	Nine months ended September 30,
	2012								2011
(In thousands)	Interest Expense		Realized Deferred Loss (Gain)			Net Impact			Interest Expense		Realized Deferred Loss (Gain)			Net Impact
Impact reported as an increase or (reduction) in interest expense on borrowings
Interest rate swaps on FHLB advances	$	1,018	$	3,417		$	4,435		$	1,170	$	1,229		$	2,399
Interest rate swaps on subordinated debt	—		(70		)	(70		)	—		(112		)	(112		)
Interest rate swaps repurchase agreement	—		2,129			2,129			—		625			625
Interest rate swaps on Trust Preferred Securities	—		(105		)	(105		)	—		(135		)	(135		)
Net impact on interest expense on borrowings	$	1,018	$	5,371		$	6,389		$	1,170	$	1,607		$	2,777

Net Impact On Interest Expense Related To Fair Value Hedges

The net impact on interest expense related to fair value hedges for the three and nine months ended September 30, 2012 and 2011 is presented in the table below:

	Three months ended September 30,
	2012										2011
(In thousands)	Interest Income		MTM Gain		Realized Deferred (Gain) Loss			Net Impact			Interest Income		MTM Gain		Realized Deferred (Gain) Loss			Net Impact
Impact reported as a (reduction) or increase in interest expense on borrowings
Interest rate swaps on senior notes	$	—	$	—	$	(799	)	$	(799	)	$	—	$	—	$	(799	)	$	(799	)
Interest rate swaps on subordinated debt	—		—		(621		)	(621		)	—		—		(1,120		)	(1,120		)
Interest rate swaps on FHLB advances	—		—		—			—			—		—		(24		)	(24		)
Net impact on interest expense on borrowings	$	—	$	—	$	(1,420	)	$	(1,420	)	$	—	$	—	$	(1,943	)	$	(1,943	)

	Nine months ended September 30,
	2012										2011
(In thousands)	Interest Income		MTM Gain		Realized Deferred (Gain) Loss			Net Impact			Interest Income			MTM Gain			Realized Deferred (Gain) Loss			Net Impact
Impact reported as a (reduction) or increase in interest expense on borrowings
Interest rate swaps on senior notes	$	—	$	—	$	(2,398	)	$	(2,398	)	$	—		$	—		$	(2,398	)	$	(2,398	)
Interest rate swaps on subordinated debt	—		—		(2,028		)	(2,028		)	—			—			(3,359		)	(3,359		)
Interest rate swaps on FHLB advances	—		—		—			—			(61		)	(144		)	50			(155		)
Net impact on interest expense on borrowings	$	—	$	—	$	(4,426	)	$	(4,426	)	$	(61	)	$	(144	)	$	(5,707	)	$	(5,912	)

Interest Rate Swaps And Caps Not Designated For Hedge Accounting

As of September 30, 2012 and December 31, 2011, Webster had the following outstanding interest rate swaps and caps that were not designated for hedge accounting:

		At September 30, 2012						At December 31, 2011
(Dollars in thousands)	Balance Sheet Classification	# of Instruments	Notional Amount		Estimated Fair Value			# of Instruments	Notional Amount		Estimated Fair Value
Webster with customer position:
Commercial loan interest rate swaps	Other assets	157	$	883,617	$	54,383		127	$	615,773	$	45,140
Commercial loan interest rate swaps with floors	Other assets	11	23,396		2,102			12	25,217		1,994
Commercial loan interest rate caps	Other liabilities	21	160,381		(139		)	13	119,186		(160		)
Webster with counterparty position:
Commercial loan interest rate swaps	Other liabilities	149	849,562		(46,562		)	119	595,542		(40,269		)
Commercial loan interest rate swaps	Other liabilities	1	34,000		55			4	20,180		13
Commercial loan interest rate swaps with floors	Other liabilities	11	23,396		(1,754		)	12	25,217		(1,597		)
Commercial loan interest rate caps	Other liabilities	21	160,381		139			13	119,186		160

Changes In Fair Value Of Non-Hedge Accounting Derivatives

Webster reported the changes in the fair value of non-hedge accounting derivatives as a component of other non-interest income in the accompanying Condensed Consolidated Statements of Operations as follows for three and nine months ended September 30, 2012 and 2011:

	Three months ended September 30,
	2012								2011
(In thousands)	Interest Income		MTM (Loss) Gain			Net Impact			Interest Income		MTM (Loss) Gain			Net Impact
Impact reported in other non-interest income:
Visa Swap	$	—	$	(60	)	$	(60	)	$	—	$	(17	)	$	(17	)
Commercial loan interest rate derivatives, net	403		1,108			1,511			234		889			1,123
Fed funds futures contracts	—		(229		)	(229		)	—		(976		)	(976		)
Net impact on other non-interest income	$	403	$	819		$	1,222		$	234	$	(104	)	$	130

	Nine months ended September 30,
	2012								2011
(In thousands)	Interest Income		MTM (Loss) Gain			Net Impact			Interest Income		MTM (Loss) Gain			Net Impact
Impact reported in other non-interest income:
Visa Swap	$	—	$	(532	)	$	(532	)	$	—	$	(134	)	$	(134	)
Commercial loan interest rate derivatives, net	1,080		3,208			4,288			657		1,155			1,812
Fed funds futures contracts	—		(12		)	(12		)	—		(1,813		)	(1,813		)
Net impact on other non-interest income	$	1,080	$	2,664		$	3,744		$	657	$	(792	)	$	(135	)