Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Of Assets And Liabilities Measured On Recurring Basis

A summary of fair values for assets and liabilities measured at fair value on a recurring basis is as follows:

	At December 31, 2012
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Financial assets held at fair value:
Available for sale securities:
U.S. treasury bills	$	200	$	200	$	—	$	—
Agency CMOs	1,310,006		—		1,310,006		—
Corporate debt	118,199		—		118,199		—
Collateralized loan obligations	88,540		—		—		88,540
Pooled trust preferred securities	26,207		—		—		26,207
Single issuer trust preferred securities	44,415		—		44,415		—
Equity securities	8,282		8,082		200		—
Agency mortgage-backed securities	1,142,280		—		1,142,280		—
CMBS	398,031		—		398,031		—
Total available for sale securities	3,136,160		8,282		3,013,131		114,747
Derivative instruments:
Interest rate swaps	50,969		—		50,969		—
Mortgage banking derivatives	2,898		—		2,898		—
Investments held in Rabbi Trust	5,741		5,741		—		—
Investments in private equity funds	1,533		—		—		1,533
Total financial assets held at fair value	$	3,197,301	$	14,023	$	3,066,998	$	116,280
Financial liabilities held at fair value:
Derivative instruments:
Interest rate swaps	$	43,172	$	—	$	43,172	$	—
Fed Fund futures contracts	125		125		—		—
Visa Swap	4		—		4		—
Total financial liabilities held at fair value	$	43,301	$	125	$	43,176	$	—

	At December 31, 2011
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Financial assets held at fair value:
Available for sale securities:
U.S. treasury bills	$	200	$	200	$	—	$	—
Agency CMOs	1,940,242		—		1,940,242		—
Pooled trust preferred securities	28,998		—		—		28,998
Single issuer trust preferred securities	38,214		—		38,214		—
Equity securities	9,447		8,472		—		975
Agency mortgage-backed securities	527,310		—		527,310		—
CMBS	330,353		—		330,353		—
Total available for sale securities	2,874,764		8,672		2,836,119		29,973
Derivative instruments:
Interest rate swaps	47,134		—		47,134		—
Investments in private equity funds	2,841		—		—		2,841
Total financial assets held at fair value	$	2,924,739	$	8,672	$	2,883,253	$	32,814
Financial liabilities held at fair value:
Derivative instruments:
Interest rate swaps	$	58,424	$	—	$	58,424	$	—
Fed Fund futures contracts	1,365		—		1,365		—
Visa Swap	2		—		2		—
Total financial liabilities held at fair value	$	59,791	$	—	$	59,791	$	—

Schedule Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis.

	Years ended December 31,
(In thousands)	2012			2011
Level 3, beginning of period (a)	$	32,814		$	61,098
Transfers out of Level 3 (b)	(975		)	—
Change in unrealized loss included in other comprehensive income	3,572			(11,521		)
Unrealized loss included in net income	(1,243		)	(78		)
Realized loss on sale of available for sale securities	—			(3,343		)
Purchases/capital calls	88,891			411
Sales/proceeds	—			(5,487		)
Accretion/amortization	233			652
Calls/paydowns	(7,012		)	(8,680		)
Other	—			(238		)
Level 3, end of period	$	116,280		$	32,814

(a) The Company's investments in private equity funds are included in Level 3. The Company has adjusted prior period balances to conform to the current period’s presentation. Management believes that these changes are immaterial to Webster’s financial statements and align reporting of such data more closely with reporting requirements resulting from the adoption of ASU 2011-4 Fair Value Measurement (Topic 820) “Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in US GAAP and IFRS”.

(b) As of January 1, 2012, auction rate preferred securities were transferred from Level 3 to Level 2. These securities are considered to be Level 2 based upon observable market activity at full par value for recent transactions.

Schedule Of Quantitative Inputs And Assumptions For Items Categorized In Level 3 Of The Fair Value Hierarchy

The following table presents information about quantitative inputs and assumptions for items categorized in Level 3 of the fair value hierarchy:

	At December 31, 2012
(In thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Pooled trust preferred securities	$	26,207	Discounted cash flow	Discount rate	6.2 - 10.2% (9.02%)
				Credit spread	340-738 bps (621 bps)
Collateralized Loan Obligations	$	88,540	Average broker quotes	Bid price	98.5 - 100 (99.3)

Schedule Of Valuation Methodology And Unobservable Inputs

The table below presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2012:

(Dollars in thousands)
Asset	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
Impaired Loans	$	36,004	Real Estate Appraisals	Discount for dated appraisal	0% - 30%
				Discount for costs to sell	3.0% - 8.0%
				Discount for payment status	25% - 33%
Other Real Estate	$	1,294	Appraisals	Discount for costs to sell	8%
				Discount for appraisal type	15% - 60%
Mortgage Servicing Rights	$	12,799	Discounted cash flow	Constant prepayment rate	7.0% - 25.1%
				Discount Rates	2.6% - 4.2%

Summary Of Estimated Fair Values Of Significant Financial Instruments

A summary of estimated fair values of significant financial instruments consisted of the following:

	At December 31, 2012
(In thousands)	Carrying Balance		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets
Securities available for sale	$	3,136,160	$	8,282	$	3,013,131	$	114,747
Securities held-to-maturity	3,107,529		—		3,264,718		—
Loans held for sale	107,633		—		—		107,633
Loans, net	11,851,567		—		—		12,005,555
Mortgage servicing assets (a)	14,027		—		—		15,881
Investments in private equity funds	11,623		—		—		11,623
Derivative instruments	50,969		—		50,969		—
Investments held in Rabbi Trust	5,741		5,741		—		—
Liabilities
Deposits other than time deposits	11,985,683		—		11,985,683		—
Time deposits	2,545,152		—		2,584,921		—
Securities sold under agreements to repurchase and other short-term borrowings	1,076,160		—		1,134,614		—
Federal Home Loan Bank advances (b)	1,827,612		—		1,843,615		—
Long-term debt (c)	334,276		—		298,807		—
Derivative instruments	43,301		125		43,176		—

	At December 31, 2011
(In thousands)	Carrying Balance		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets
Securities available for sale	$	2,874,764	$	8,672	$	2,836,119	$	29,973
Securities held-to-maturity	2,973,727		—		3,130,546		—
Loans held for sale	57,391		—		—		57,391
Loans, net	10,991,917		—		—		11,097,390
Mortgage servicing assets (a)	7,831		—		—		9,968
Investments in private equity funds	12,343		—		—		12,343
Derivative instruments	47,134		—		47,134		—
Liabilities
Deposits other than time deposits	10,821,390		—		10,619,712		—
Time deposits	2,834,635		—		2,883,006		—
Securities sold under agreements to repurchase and other short-term borrowings	1,164,706		—		1,212,228		—
Federal Home Loan Bank advances (b)	1,252,609		—		1,283,871		—
Long-term debt (c)	552,589		—		505,635		—
Derivative instruments	59,791		—		59,791		—

(a) The carrying amount of mortgage servicing assets is net of $1.8 million and $0.9 million reserves at December 31, 2012 and December 31, 2011, respectively. The estimated fair value does not include such adjustments.

(b) The carrying amount of FHLB advances is net of $0.1 million and $0.8 million in hedge accounting adjustments and discounts at December 31, 2012 and December 31, 2011, respectively. The estimated fair value does not include such adjustments.

(c) The carrying amount of long-term debt is net of $4.4 million and $11.7 million in hedge accounting adjustments and discounts at December 31, 2012 and December 31, 2011, respectively. The estimated fair value does not include such adjustments.