Investment Securities (Tables)

12 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

A summary of the amortized cost, carrying value, and fair value of Webster’s investment securities is presented below:



	At December 31, 2012
			Recognized in OCI							Not Recognized in OCI
(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Carrying value		Gross unrealized gains		Gross unrealized losses			Fair value
Available for sale:
U.S. Treasury Bills	$	200	$	—	$	—		$	200	$	—	$	—		$	200
Agency collateralized mortgage obligations (“CMOs”)	1,284,126		25,972		(92		)	1,310,006		—		—			1,310,006
Agency mortgage-backed securities (“MBS”)	1,121,941		21,437		(1,098		)	1,142,280		—		—			1,142,280
Commercial mortgage-backed securities (“CMBS”)	359,438		42,086		(3,493		)	398,031		—		—			398,031
Collateralized loan obligations ("CLOs")	88,765		—		(225		)	88,540		—		—			88,540
Pooled trust preferred securities ⁽¹⁾	46,018		—		(19,811		)	26,207		—		—			26,207
Single issuer trust preferred securities	51,181		—		(6,766		)	44,415		—		—			44,415
Corporate debt	111,281		6,918		—			118,199		—		—			118,199
Equity securities - financial institutions ⁽²⁾	6,232		2,054		(4		)	8,282		—		—			8,282
Total available for sale	$	3,069,182	$	98,467	$	(31,489	)	$	3,136,160	$	—	$	—		$	3,136,160
Held-to-maturity:
Agency CMOs	500,369		—		—			500,369		16,643		(8		)	517,004
Agency MBS	1,833,677		—		—			1,833,677		88,082		(474		)	1,921,285
Municipal bonds and notes	559,131		—		—			559,131		34,366		(110		)	593,387
CMBS	199,810		—		—			199,810		18,324		—			218,134
Private Label MBS	14,542		—		—			14,542		366		—			14,908
Total held-to-maturity	$	3,107,529	$	—	$	—		$	3,107,529	$	157,781	$	(592	)	$	3,264,718

Total investment securities	$	6,176,711	$	98,467	$	(31,489	)	$	6,243,689	$	157,781	$	(592	)	$	6,400,878


(1)	Amortized cost is net of $10.5 million of credit related other-than-temporary impairment at December 31, 2012.


(2)	Amortized cost is net of $21.3 million of other-than-temporary impairment at December 31, 2012.



	At December 31, 2011
			Recognized in OCI							Not Recognized in OCI
(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Carrying value		Gross unrealized gains		Gross unrealized losses			Fair value
Available for sale:
U.S. Treasury Bills	$	200	$	—	$	—		$	200	$	—	$	—		$	200
Agency CMOs	1,916,372		27,211		(3,341		)	1,940,242		—		—			1,940,242
Agency MBS	502,389		25,079		(158		)	527,310		—		—			527,310
CMBS	319,200		22,395		(11,242		)	330,353		—		—			330,353
Pooled trust preferred securities ⁽¹⁾	52,606		—		(23,608		)	28,998		—		—			28,998
Single issuer trust preferred securities	51,027		—		(12,813		)	38,214		—		—			38,214
Equity securities - financial institutions ⁽²⁾	7,669		1,802		(24		)	9,447		—		—			9,447
Total available for sale	$	2,849,463	$	76,487	$	(51,186	)	$	2,874,764	$	—	$	—		$	2,874,764
Held-to-maturity:
Agency CMOs	733,889		—		—			733,889		20,555		—			754,444
Agency MBS	1,411,008		—		—			1,411,008		98,449		—			1,509,457
Municipal bonds and notes	646,358		—		—			646,358		30,960		(174		)	677,144
CMBS	158,451		—		—			158,451		6,588		—			165,039
Private Label MBS	24,021		—		—			24,021		441		—			24,462
Total held-to-maturity	$	2,973,727	$	—	$	—		$	2,973,727	$	156,993	$	(174	)	$	3,130,546

Total investment securities	$	5,823,190	$	76,487	$	(51,186	)	$	5,848,491	$	156,993	$	(174	)	$	6,005,310


(1)	Amortized cost is net of $10.5 million of credit related other-than-temporary impairment at December 31, 2011.


(2)	Amortized cost is net of $21.6 million of other-than-temporary impairment at December 31, 2011.

Summary Of Debt Securities By Contractual Maturity

The amortized cost and fair value of debt securities at December 31, 2012, by contractual maturity, are set forth below:



	Available for Sale				Held to Maturity
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	9,742	$	8,652	$	9,190	$	9,194
Due after one year through five years	101,803		107,629		13,560		14,251
Due after five through ten years	29,782		30,872		202,299		214,557
Due after ten years	2,921,623		2,980,725		2,882,480		3,026,716
Total debt securities	$	3,062,950	$	3,127,878	$	3,107,529	$	3,264,718

Summary Of Gross Unrealized Losses Not Considered OTTI

The following tables provide information on the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment security category and length of time that individual investment securities have been in a continuous unrealized loss position:



	At December 31, 2012
	Less Than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			# of Holdings	Fair Value		Unrealized Losses
Available for Sale:
Agency CMOs	$	69,936	$	(92	)	$	—	$	—		4	$	69,936	$	(92	)
Agency MBS	275,818		(1,098		)	—		—			28	275,818		(1,098		)
CMBS	14,947		(17		)	20,909		(3,476		)	2	35,856		(3,493		)
CLOs	44,775		(225		)	—		—			2	44,775		(225		)
Pooled trust preferred securities	—		—			26,207		(19,811		)	8	26,207		(19,811		)
Single issuer trust preferred securities	—		—			44,415		(6,766		)	9	44,415		(6,766		)
Equity securities-financial institutions	144		(4		)	—		—			1	144		(4		)
Total available for sale	405,620		(1,436		)	91,531		(30,053		)	54	497,151		(31,489		)
Held-to-maturity:
Agency CMOs	18,741		(8		)	—		—			1	18,741		(8		)
Agency MBS	161,057		(474		)	—		—			12	161,057		(474		)
Municipal bonds and notes	5,990		(51		)	2,858		(59		)	11	8,848		(110		)
Total held-to-maturity	185,788		(533		)	2,858		(59		)	24	188,646		(592		)

Total investment securities	$	591,408	$	(1,969	)	$	94,389	$	(30,112	)	78	$	685,797	$	(32,081	)



	At December 31, 2011
	Less Than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			# of Holdings	Fair Value		Unrealized Losses
Available for Sale:
Agency CMOs	$	405,318	$	(3,341	)	$	—	$	—		11	$	405,318	$	(3,341	)
Agency MBS	90,418		(158		)	—		—			3	90,418		(158		)
CMBS	73,190		(1,924		)	14,957		(9,318		)	5	88,147		(11,242		)
Pooled trust preferred securities	6,526		(8,178		)	22,472		(15,430		)	8	28,998		(23,608		)
Single issuer trust preferred securities	6,711		(1,521		)	31,503		(11,292		)	9	38,214		(12,813		)
Equity securities-financial institutions	124		(24		)	—		—			1	124		(24		)
Total available for sale	582,287		(15,146		)	68,932		(36,040		)	37	651,219		(51,186		)
Held-to-maturity:
Municipal bonds and notes	5,405		(66		)	6,117		(108		)	21	11,522		(174		)
Total held-to-maturity	5,405		(66		)	6,117		(108		)	21	11,522		(174		)

Total investment securities	$	587,692	$	(15,212	)	$	75,049	$	(36,148	)	58	$	662,741	$	(51,360	)

Schedule Of Trust Preferred Securities - Pooled Issuers For OTTI Information

The following table summarizes pertinent information that was considered by management in evaluating Trust Preferred Securities – Pooled Issuers for OTTI in the current reporting period:



Trust Preferred Securities - Pooled Issuers
Deal Name	Class	Amortized Cost ⁽¹⁾		Gross Unrealized Losses			Fair Value		Lowest Credit Ratings as of December 31, 2012 ⁽²⁾	Total Other- Than-Temporary Impairment thru December 31, 2012			% of Performing Bank/ Insurance Issuers		Deferrals/ Defaults (As a % of Current Collateral)
(Dollars in thousands)
Security H	B	$	3,486	$	(1,649	)	$	1,837	B	$	(352	)	92.0	%	7.2	%
Security I	B	4,467		(2,110		)	2,357		CCC	(365		)	93.8	%	8.0	%
Security J	B	5,303		(2,719		)	2,584		CCC	(806		)	92.0	%	9.9	%
Security K	A	7,400		(3,474		)	3,926		CCC	(2,040		)	68.6	%	34.3	%
Security L	B	8,725		(4,240		)	4,485		CCC	(867		)	95.8	%	6.4	%
Security M	A	7,191		(4,141		)	3,050		D	(4,926		)	57.3	%	38.5	%
Security N	A	9,446		(1,478		)	7,968		A	(1,104		)	92.0	%	9.9	%
		$	46,018	$	(19,811	)	$	26,207		$	(10,460	)

(1)For the securities previously deemed impaired, the amortized cost is reflective of previous OTTI recognized in earnings.

(2)The Company utilized credit ratings provided by Moody’s, S&P and Fitch in its evaluation of issuers.

Schedule Of OTTI For Single Issuer Trust Preferred Securities



Trust Preferred Securities - Single Issuers
Deal Name	Amortized Cost		Gross Unrealized Losses			Fair Value		Lowest Credit Ratings as of December 31, 2012 ⁽¹⁾
(Dollars in thousands)
Security B	$	6,893	$	(1,174	)	$	5,719	BB
Security C	8,673		(974		)	7,699		BBB
Security D	9,542		(1,090		)	8,452		B
Security E	11,766		(1,379		)	10,387		BBB
Security F	14,307		(2,149		)	12,158		BBB
	$	51,181	$	(6,766	)	$	44,415

(1)The Company utilized credit ratings provided by Moody’s, S&P and Fitch in its evaluation of issuers.

Roll Forward Of OTTI Recognized In Earnings

The following is a roll forward of the amount of credit related OTTI recognized in earnings for the years ended December 31:



(In thousands)	2012		2011			2010
Balance of credit related OTTI, beginning of year	$	10,460	$	26,320		$	43,492
Reduction for payment of deferred interest	—		(16		)	—
Reduction for securities sold	—		(15,844		)	(22,943		)
Additions for credit related OTTI not previously recognized	—		—			5,771
Balance of credit related OTTI, end of year	$	10,460	$	10,460		$	26,320

Summary Of Sale Proceeds Of Available For Sale Securities

The following table summarizes the proceeds from the sale of securities for the periods ended December 31, 2012, 2011 and 2010:



	Years ended December 31,
(In thousands)	2012		2011		2010
Available for sale:
Agency CMOs	$	44,850	$	94,335	$	116,140
Agency MBS	86,015		180,613		266,154
Agency notes	—		—		30,027
CMBS	16,284		—		—
Pooled trust preferred securities	—		1,456		4,153
Equity securities	1,073		2,353		—
Total available for sale	$	148,222	$	278,757	$	416,474

Summary Of Sale Proceeds And Realized Gains And Losses And Recognition Of OTTI

The following table summarizes the impact of realized gains and losses from the sale of securities and the impact of the recognition of other-than-temporary impairments for the periods presented.



	Years ended December 31,
	2012								2011										2010
(In thousands)	Gains		Losses		OTTI Charges		Net		Gains		Losses			OTTI Charges		Net			Gains		Losses			OTTI Charges			Net
Available for sale:
Agency CMOs	$	897	$	—	$	—	$	897	$	1,959	$	—		$	—	$	1,959		$	1,980	$	—		$	—		$	1,980
Agency MBS	806		—		—		806		4,833		—			—		4,833			8,342		—			—			8,342
Agency notes	—		—		—		—		—		—			—		—			18		—			—			18
CMBS	1,235		—		—		1,235		—		—			—		—			—		—			—			—
Pooled trust preferred securities	—		—		—		—		—		(3,343		)	—		(3,343		)	341		(933		)	(5,771		)	(6,363		)
Equity securities	409		—		—		409		374		—			—		374			—		—			(67		)	(67		)
Total available for sale	$	3,347	$	—	$	—	$	3,347	$	7,166	$	(3,343	)	$	—	$	3,823		$	10,681	$	(933	)	$	(5,838	)	$	3,910

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

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+ Details

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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