Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

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 in the accompanying Condensed Consolidated Balance Sheets:

		At June 30, 2013					At December 31, 2012
(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 cash flow hedges:
Interest rate cap on FHLB advances	Other assets	2	$	50,000	$	3,056	—	$	—	$	—
Interest rate swap on FHLB advances	Other liabilities	—	$	—	$	—	1	$	100,000	$	(497	)
Forward-settle interest rate swap on anticipated debt	Other liabilities	—	—		—		4	100,000		(1,130		)

Net Impact On Interest Expense Related To Cash Flow Hedges

The net impact on interest expense related to cash flow hedges is presented below:

	Three months ended June 30,
	2013						2012
(In thousands)	Interest Expense		Deferred Loss (Gain)		Net Impact		Interest Expense		Deferred Loss (Gain)			Net Impact
Impact reported as an increase (reduction) in interest expense on borrowings:
Interest rate swaps on FHLB advances	$	118	$	1,519	$	1,637	$	336	$	1,139		$	1,475
Interest rate swaps on subordinated debt	—		—		—		—		(22		)	(22		)
Interest rate swaps on repurchase agreements	—		830		830		—		830			830
Interest rate swaps on Trust Preferred Securities	—		—		—		—		(44		)	(44		)
Net impact on interest expense on borrowings	$	118	$	2,349	$	2,467	$	336	$	1,903		$	2,239

	Six months ended June 30,
	2013								2012
(In thousands)	Interest Expense		Deferred Loss (Gain)			Net Impact			Interest Expense		Deferred Loss (Gain)			Net Impact
Impact reported as an increase (reduction) in interest expense on borrowings:
Interest rate swaps on FHLB advances	$	498	$	3,251		$	3,749		$	667	$	2,278		$	2,945
Interest rate swaps on subordinated debt	—		(3		)	(3		)	—		(49		)	(49		)
Interest rate swaps on repurchase agreements	—		1,660			1,660			—		1,299			1,299
Interest rate swaps on Trust Preferred Securities	—		—			—			—		(89		)	(89		)
Net impact on interest expense on borrowings	$	498	$	4,908		$	5,406		$	667	$	3,439		$	4,106

Net Impact On Interest Expense Related To Fair Value Hedges

The net impact on interest expense related to fair value hedges is presented below:

	Three months ended June 30,
	2013										2012
(In thousands)	Interest Income		MTM Gain		Deferred Gain			Net Impact			Interest Income		MTM Gain		Deferred Gain			Net Impact
Impact reported as a (reduction) increase in interest expense on borrowings:
Interest rate swaps on senior notes	$	—	$	—	$	(800	)	$	(800	)	$	—	$	—	$	(800	)	$	(800	)
Interest rate swaps on subordinated debt	—		—		—			—			—		—		(620		)	(620		)
Net impact on interest expense on borrowings	$	—	$	—	$	(800	)	$	(800	)	$	—	$	—	$	(1,420	)	$	(1,420	)

	Six months ended June 30,
	2013										2012
(In thousands)	Interest Income		MTM Gain		Deferred Gain			Net Impact			Interest Income		MTM Gain		Deferred Gain			Net Impact
Impact reported as a (reduction) increase in interest expense on borrowings:
Interest rate swaps on senior notes	$	—	$	—	$	(1,599	)	$	(1,599	)	$	—	$	—	$	(1,599	)	$	(1,599	)
Interest rate swaps on subordinated debt	—		—		(207		)	(207		)	—		—		(1,407		)	(1,407		)
Net impact on interest expense on borrowings	$	—	$	—	$	(1,806	)	$	(1,806	)	$	—	$	—	$	(3,006	)	$	(3,006	)

Interest Rate Swaps And Caps Not Designated For Hedge Accounting

Webster had the following outstanding interest rate swaps and caps that were not designated for hedge accounting:

		At June 30, 2013
					Estimated Fair Value
(Dollars in thousands)	Balance Sheet Classification	# of Instruments	Notional Amount		Gain		Loss			Net
Webster with customer position:
Commercial loan interest rate derivatives	Other assets	140	$	702,154	$	30,676	$	—		$	30,676
Commercial loan interest rate derivatives	Other liabilities	72	588,924		—		(10,200		)	(10,200		)
Total customer position		212	$	1,291,078	$	30,676	$	(10,200	)	$	20,476
Webster with counterparty position:
Commercial loan interest rate derivatives	Other assets	79	$	562,195	$	6,739	$	(3,173	)	$	3,566
Commercial loan interest rate derivatives	Other liabilities	126	728,624		8,673		(22,906		)	(14,233		)
Total counterparty position		205	$	1,290,819	$	15,412	$	(26,079	)	$	(10,667	)

		At December 31, 2012
					Estimated Fair Value
(Dollars in thousands)	Balance Sheet Classification	# of Instruments	Notional Amount		Gain		Loss			Net
Webster with customer position:
Commercial loan interest rate derivatives	Other assets	178	$	1,009,623	$	50,969	$	—		$	50,969
Commercial loan interest rate derivatives	Other liabilities	23	193,946		—		(124		)	(124		)
Total customer position		201	$	1,203,569	$	50,969	$	(124	)	$	50,845
Webster with counterparty position:
Commercial loan interest rate derivatives	Other liabilities	194	$	1,203,512	$	544	$	(41,965	)	$	(41,421	)
Total counterparty position		194	$	1,203,512	$	544	$	(41,965	)	$	(41,421	)

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 Income as follows:

	Three months ended June 30,
	2013								2012
(In thousands)	Net Swap Income		MTM (Loss) Gain and Fees			Net Impact			Net Swap Income		MTM (Loss) Gain and Fees			Net Impact
Impact reported in other non-interest income:
Visa swap	$	—	$	(26	)	$	(26	)	$	—	$	(20	)	$	(20	)
Commercial loan interest rate derivatives, net	512		479			991			362		1,321			1,683
Fed funds futures contracts	—		108			108			—		61			61
Net impact on other non-interest income	$	512	$	561		$	1,073		$	362	$	1,362		$	1,724

	Six months ended June 30,
	2013								2012
(In thousands)	Net Swap Income		MTM (Loss) Gain and Fees			Net Impact			Net Swap Income		MTM (Loss) Gain and Fees			Net Impact
Impact reported in other non-interest income:
Visa swap	$	—	$	(51	)	$	(51	)	$	—	$	(472	)	$	(472	)
Commercial loan interest rate derivatives, net	997		687			1,684			677		2,100			2,777
Fed funds futures contracts	—		160			160			—		217			217
Net impact on other non-interest income	$	997	$	796		$	1,793		$	677	$	1,845		$	2,522

Offsetting Assets and Liabilities

The tables below present the offsetting of financial assets and derivatives in the accompanying Condensed Consolidated Balance Sheets summarized by counterparty:

	At June 30, 2013
			Hedge Accounting Positions (1)				Non-Hedge Accounting Positions
(In thousands)	Notional Outstanding		Gain		Loss		Gain		Loss			Net Position (2)			Total Gain (Loss)			Cash Collateral			Net Exposure (3)
Counterparty:
Dealer A	$	367,672	$	—	$	—	$	4,797	$	(11,125	)	$	(6,328	)	$	(6,328	)	$	5,800		$	—
Dealer B	346,099		—		—		3,875		(10,205		)	(6,330		)	(6,330		)	5,160			—
Dealer C	14,853		—		—		1		(1,576		)	(1,575		)	(1,575		)	—			—
Dealer D	298,038		1,470		—		3,922		(562		)	3,360			4,830			(5,200		)	—
Dealer E	285,445		1,586		—		2,715		(2,611		)	104			1,690			(1,830		)	—
Dealer F	28,712		—		—		102		—			102			102			353			455
Total	$	1,340,819	$	3,056	$	—	$	15,412	$	(26,079	)	$	(10,667	)	$	(7,611	)	$	4,283

	At December 31, 2012
			Hedge Accounting Positions (1)					Non-Hedge Accounting Positions
(In thousands)	Notional Outstanding		Gain		Loss			Gain		Loss			Net Position (2)			Total Gain (Loss)			Cash Collateral		Net Exposure (3)
Counterparty:
Dealer A	$	561,716	$	—	$	(985	)	$	199	$	(16,721	)	$	(16,522	)	$	(17,507	)	$	17,900	$	393
Dealer B	403,097		—		(642		)	139		(15,281		)	(15,142		)	(15,784		)	16,980		1,196
Dealer C	15,221		—		—			1		(2,038		)	(2,037		)	(2,037		)	—		—
Dealer D	184,648		—		—			53		(2,506		)	(2,453		)	(2,453		)	2,600		147
Dealer E	238,830		—		—			152		(5,419		)	(5,267		)	(5,267		)	5,290		23
Total	$	1,403,512	$	—	$	(1,627	)	$	544	$	(41,965	)	$	(41,421	)	$	(43,048	)	$	42,770

(1) Hedge accounting positions are recorded on a gross basis in other assets (liabilities)

(2) Net gain (loss) position recorded in other assets (liabilities)

(3) Net positive exposure represents over collateralized loss positions which are the result of OTC clearing house initial margin requirements posted in compliance with Dodd-Frank regulations.