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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 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 September 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:
 
 
 
 
 
 
 
 
Forward-settle interest rate swap on anticipated debt (1)
Other liabilities
2
$
50,000

$
(901
)
 
—
$
—

$
—

Forward-settle interest rate swap on anticipated debt
Other liabilities
4
100,000

(1,293
)
 
4
100,000

(1,130
)
Interest rate cap on FHLB advances
Other assets
2
50,000

3,048

 
—
—

—

Interest rate swap on FHLB advances
Other liabilities
—
—

—

 
1
100,000

(497
)
(1) Inter-affiliate swaps between the Bank and holding company total an additional $100 million in aggregate notional value with gains and losses that offset.
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 September 30,
 
2013
 
2012
(In thousands)
Interest
Expense
Amount Reclassified From AOCI
 
Interest
Expense
Amount Reclassified From AOCI
Impact reported as an increase (reduction) in interest expense on borrowings:
 
 
 
 
 
Interest rate swaps on FHLB advances
$
—

$
1,353

 
$
351

$
1,139

Interest rate swaps on subordinated debt
—

—

 
—

(21
)
Interest rate swaps on repurchase agreements
—

829

 
—

830

Interest rate swaps on trust preferred securities
—

—

 
—

(16
)
Net impact on interest expense on borrowings
$
—

$
2,182

 
$
351

$
1,932

 
Nine months ended September 30,
 
2013
 
2012
(In thousands)
Interest
Expense
Amount Reclassified From AOCI
 
Interest
Expense
Amount Reclassified From AOCI
Impact reported as an increase (reduction) in interest expense on borrowings:
 
 
 
 
 
Interest rate swaps on FHLB advances
$
498

$
4,604

 
$
1,018

$
3,417

Interest rate swaps on subordinated debt
—

(3
)
 
—

(70
)
Interest rate swaps on repurchase agreements
—

2,489

 
—

2,129

Interest rate swaps on trust preferred securities
—

—

 
—

(105
)
Net impact on interest expense on borrowings
$
498

$
7,090

 
$
1,018

$
5,371
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 September 30,
 
Nine months ended September 30,
(In thousands)
2013
2012
 
2013
2012
Impact reported as a reduction in interest expense on borrowings:
 
 
 
 
 
Interest rate swaps on senior notes
$
(799
)
$
(799
)
 
$
(2,398
)
$
(2,398
)
Interest rate swaps on subordinated debt
—

(621
)
 
(207
)
(2,028
)
Net impact on interest expense on borrowings
$
(799
)
$
(1,420
)
 
$
(2,605
)
$
(4,426
)
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 September 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
153
$
820,055

$
33,028

$
—

$
33,028

Commercial loan interest rate derivatives
Other liabilities
66
561,956

—

(8,379
)
(8,379
)
Total customer position
 
219
$
1,382,011

$
33,028

$
(8,379
)
$
24,649

 
 
 
 
 
 
 
Webster with counterparty position:
 
 
 
 
 
 
Commercial loan interest rate derivatives
Other assets
26
$
266,320

$
3,151

$
(710
)
$
2,441

Commercial loan interest rate derivatives
Other liabilities
186
1,115,631

9,695

(26,130
)
(16,435
)
Total counterparty position
 
212
$
1,381,951

$
12,846

$
(26,840
)
$
(13,994
)
 
 
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 September 30,
 
Nine months ended September 30,
(In thousands)
2013
2012
 
2013
2012
Impact reported in other non-interest income:
 
 
 
 
 
Visa swap
$
(35
)
$
(60
)
 
$
(86
)
$
(532
)
Commercial loan interest rate derivatives, net
1,546

1,511

 
3,230

4,288

Fed funds futures contracts
(450
)
(229
)
 
(290
)
(12
)
Net impact on other non-interest income
$
1,061

$
1,222

 
$
2,854

$
3,744
Offsetting Assets and Liabilities
The tables below present the financial assets and liabilities for derivative positions, summarized by counterparty:
 
At September 30, 2013
 
 
 
Hedge Accounting Positions
 
Non-Hedge Accounting Positions
 
 
 
 
(In thousands)
Notional Amount
 
MTM Gain
MTM Loss
 
MTM Gain
MTM Loss
 
Total MTM(Loss) Gain
Cash Collateral Posted (Received)
Net Exposure (1)
Counterparty:
 
 
 
 
 
 
 
 
 
 
 
Dealer A
$
383,632

 
$
—

$
(388
)
 
$
4,009

$
(10,783
)
 
$
(7,162
)
$
7,100

$
—

Dealer B
343,467

 
—

—

 
3,241

(10,128
)
 
(6,887
)
7,100

213

Dealer C
14,666

 
—

—

 
1

(1,492
)
 
(1,491
)
—

—

Dealer D
291,320

 
1,471

—

 
3,150

(710
)
 
3,911

(4,100
)
—

Dealer E
283,681

 
1,576

(513
)
 
2,373

(2,494
)
 
942

(1,160
)
—

Dealer F
265,185

 
—

(1,293
)
 
72

(1,233
)
 
(2,454
)
7,225

4,771

Total
$
1,581,951

 
$
3,047

$
(2,194
)
 
$
12,846

$
(26,840
)
 
$
(13,141
)
$
16,165

 
(1) Net positive exposure represents over-collateralized loss positions which can be the result of OTC clearing house initial margin requirements posted in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank").
 
At December 31, 2012
 
 
 
Hedge Accounting Positions
 
Non-Hedge Accounting Positions
 
 
 
 
(In thousands)
Notional Amount
 
MTM Gain
MTM Loss
 
MTM Gain
MTM Loss
 
Total MTM Loss
Cash Collateral Posted
Net Exposure
Counterparty:
 
 
 
 
 
 
 
 
 
 
 
Dealer A
$
561,716

 
$
—

$
(985
)
 
$
199

$
(16,721
)
 
$
(17,507
)
$
17,900

$
393

Dealer B
403,097

 
—

(642
)
 
139

(15,281
)
 
(15,784
)
16,980

1,196

Dealer C
15,221

 
—

—

 
1

(2,038
)
 
(2,037
)
—

—

Dealer D
184,648

 
—

—

 
53

(2,506
)
 
(2,453
)
2,600

147

Dealer E
238,830

 
—

—

 
152

(5,419
)
 
(5,267
)
5,290

23

Total
$
1,403,512

 
$
—

$
(1,627
)
 
$
544

$
(41,965
)
 
$
(43,048
)
$
42,770