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Concentrations and Restrictions on Cash and Cash Equivalents
12 Months Ended
Dec. 31, 2013
Cash and Cash Equivalents [Abstract]  
Concentration and Restrictions on Cash and Cash Equivalents
Concentrations and Restrictions on Cash and Cash Equivalents
Webster Bank is required by Federal Reserve Board regulations to maintain reserve balances in cash on hand or at the Federal Reserve Bank. Pursuant to this requirement, Webster held $41.8 million and $44.9 million at December 31, 2013 and 2012, respectively.
The Company maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Interest-bearing deposits with other financial institutions were $23.7 million and $98.2 million at December 31, 2013 and 2012, respectively. The decrease in interest-bearing deposits is primarily due to a reduction in cash balances at the Federal Reserve Bank in excess of reserve requirements.
Cash collateral held on deposit with other financial institution counterparties related to interest rate swap transactions was $16.7 million and $43.4 million at December 31, 2013 and 2012, respectively. Additionally, federal funds sold are essentially uncollateralized loans to other financial institutions. The Company regularly evaluates the credit risk associated with the counterparties to these transactions and believes that Webster is not exposed to any significant credit risks on cash and cash equivalents.