XML 162 R49.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 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 Consolidated Balance Sheets as of December 31, 2013 and December 31, 2012:
 
 
At December 31, 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 assets
4
$
100,000

$
1,815

 
—
$
—

$
—

Forward-settle interest rate swap on anticipated debt (1)
Other liabilities
1
25,000

(15
)
 
—
—

—

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

1,212

 
—
—

—

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

(607
)
 
4
100,000

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

3,554

 
—
—

—

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 $250 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 for the years ended December 31, 2013, 2012, and 2011 is presented below:
 
Years ended December 31,
 
2013
 
2012
 
2011
(In thousands)
Interest
Expense
Amount Reclassified From AOCI
 
Interest
Expense
Amount Reclassified From AOCI
 
Interest
Expense
Amount Reclassified From AOCI
Impact reported as an increase or (reduction) in interest expense on borrowings
 
 
 
 
 
 
 
 
Interest rate swaps on FHLB advances
$
498

$
5,956

 
$
1,393

$
4,754

 
$
1,542

$
1,962

Interest rate swaps on subordinated debt
—

(3
)
 
—

(92
)
 
—

(150
)
Interest rate swaps repurchase agreement
—

3,319

 
—

2,959

 
—

1,095

Interest rate swaps on Trust Preferred Securities
—

—

 
—

(105
)
 
—

(180
)
Net impact on interest expense on borrowings
$
498

$
9,272

 
$
1,393

$
7,516

 
$
1,542

$
2,727
Net Impact On Interest Expense Related To Fair Value Hedges
The net impact on interest expense related to fair value hedges for the years ended December 31, 2013, 2012 and 2011 is presented in the table below:
 
Years ended December 31,
(In thousands)
2013
 
2012
 
2011
Impact reported as a reduction in interest expense on borrowings
 
 
 
 
 
Interest rate swaps on senior notes
$
(3,197
)
 
$
(3,197
)
 
$
(3,197
)
Interest rate swaps on subordinated debt
(207
)
 
(2,648
)
 
(4,479
)
Interest rate swaps on FHLB advances
—

 
—

 
(171
)
Net impact on interest expense on borrowings
$
(3,404
)
 
$
(5,845
)
 
$
(7,847
)
Interest Rate Swaps And Caps Not Designated For Hedge Accounting
At December 31, 2013 and December 31, 2012, Webster had the following outstanding interest rate swaps and caps that were not designated for hedge accounting:
 
 
At December 31, 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 swaps
Other assets
159

$
915,272

$
29,004

$
—

$
29,004

Commercial loan interest rate swaps
Other liabilities
76

648,456

—

(11,175
)
(11,175
)
Total customer position
 
235

$
1,563,728

$
29,004

$
(11,175
)
$
17,829

 
 
 
 
 
 
 
Webster with counterparty position:
 
 
 
 
 
 
Commercial loan interest rate swaps
Other assets
111

$
914,044

$
8,944

$
(2,766
)
$
6,178

Commercial loan interest rate swaps
Other liabilities
118

649,623

8,118

(20,094
)
(11,976
)
Total counterparty position
 
229

$
1,563,667

$
17,062

$
(22,860
)
$
(5,798
)

 
 
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

$
50,970

$
—

$
50,970

Commercial loan interest rate derivatives
Other liabilities
23

193,946

—

(124
)
(124
)
Total customer position
 
201

$
1,203,569

$
50,970

$
(124
)
$
50,846


 
 
 
 
 
 
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
)
Webster reported the changes in the fair value of non-hedge accounting derivatives as a component of other non-interest income in the accompanying Consolidated Statements of Income as follows.
 
Years ended December 31,
(In thousands)
2013
 
2012
 
2011
Impact reported in other non-interest income:
 
 
 
 
 
Visa Swap
$
(120
)
 
$
(556
)
 
$
(153
)
Interest rate derivatives, net
5,890

 
6,128

 
2,889

Fed funds futures contracts
(438
)
 
48

 
(1,815
)
Net impact on other non-interest income
$
5,332

 
$
5,620

 
$
921
Offsetting Assets and Liabilities
The tables below present the financial assets and liabilities for non customer derivative positions, including futures contracts, summarized by dealer counterparty:

At December 31, 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)
Dealer A
$
387,258

 
$
730

$
—

 
$
4,643

$
(9,647
)
 
$
(4,274
)
$
4,300

$
26

Dealer B
322,888

 
615

—

 
3,475

(9,100
)
 
(5,010
)
4,940

—

Dealer C
14,477

 
—

—

 
—

(1,348
)
 
(1,348
)
—

—

Dealer D
291,627

 
1,734

—

 
4,108

(592
)
 
5,250

(5,300
)
—

Dealer E
372,771

 
2,290

(15
)
 
3,017

(1,743
)
 
3,549

(3,310
)
—

Dealer F
11,749,646

 
1,212

(607
)
 
1,819

(657
)
 
1,767

7,485

9,252

Totals
$
13,138,667

 
$
6,581

$
(622
)
 
$
17,062

$
(23,087
)
 
$
(66
)
$
8,115

 
 
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) Gain
Cash Collateral Posted (Received)
Net Exposure (1)
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

Dealer F
6,600,000

 


 

(125
)
 
(125
)
674

549

Totals
$
8,003,512

 
$
—

$
(1,627
)
 
$
544

$
(42,090
)
 
$
(43,173
)
$
43,444

 
(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").