Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Summaries of the amortized cost, carrying value, and fair value of Webster’s investment securities are presented below:



	At September 30, 2014
			Recognized in OCI							Not Recognized in OCI
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale:
U.S. Treasury Bills	$	525	$	—	$	—		$	525	$	—	$	—		$	525
Agency collateralized mortgage obligations (“CMO”)	628,737		10,543		(1,057		)	638,223		—		—			638,223
Agency mortgage-backed securities (“MBS”)	1,103,345		11,014		(23,539		)	1,090,820		—		—			1,090,820
Agency commercial mortgage-backed securities (“ACMBS”)	80,732		—		(349		)	80,383		—		—			80,383
Commercial mortgage-backed securities (“CMBS”)	510,922		21,975		(55		)	532,842		—		—			532,842
Collateralized loan obligations ("CLO") ⁽¹⁾	379,741		912		(142		)	380,511		—		—			380,511
Pooled trust preferred securities	—		—		—			—		—		—			—
Single issuer trust preferred securities	41,936		83		(2,637		)	39,382		—		—			39,382
Corporate debt securities	107,132		4,068		—			111,200		—		—			111,200
Equity securities - financial institutions	—		—		—			—		—		—			—
Total available-for-sale	$	2,853,070	$	48,595	$	(27,779	)	$	2,873,886	$	—	$	—		$	2,873,886
Held-to-maturity:
Agency CMO	$	411,128	$	—	$	—		$	411,128	$	7,374	$	(1,409	)	$	417,093
Agency MBS	2,181,225		—		—			2,181,225		52,799		(23,068		)	2,210,956
Agency CMBS	377,382		—		—			377,382		650		(622		)	377,410
Municipal bonds and notes	377,074		—		—			377,074		15,332		(38		)	392,368
CMBS	288,692		—		—			288,692		8,833		(2,122		)	295,403
Private Label MBS	6,478		—		—			6,478		117		—			6,595
Total held-to-maturity	$	3,641,979	$	—	$	—		$	3,641,979	$	85,105	$	(27,259	)	$	3,699,825


(1)	Amortized cost is net of $2.8 million of other-than-temporary impairments at September 30, 2014.



	At December 31, 2013
			Recognized in OCI							Not Recognized in OCI
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale:
U.S. Treasury Bills	$	325	$	—	$	—		$	325	$	—	$	—		$	325
Agency CMO	794,397		14,383		(1,868		)	806,912		—		—			806,912
Agency MBS	1,265,276		9,124		(47,698		)	1,226,702		—		—			1,226,702
Agency CMBS	71,759		—		(782		)	70,977		—		—			70,977
CMBS	436,872		28,398		(996		)	464,274		—		—			464,274
CLO ⁽¹⁾	357,326		315		—			357,641		—		—			357,641
Pooled trust preferred securities ⁽²⁾	31,900		—		(3,410		)	28,490		—		—			28,490
Single issuer trust preferred securities	41,807		—		(6,872		)	34,935		—		—			34,935
Corporate debt securities	108,936		4,155		—			113,091		—		—			113,091
Equity securities - financial institutions ⁽³⁾	2,314		1,270		—			3,584		—		—			3,584
Total available-for-sale	$	3,110,912	$	57,645	$	(61,626	)	$	3,106,931	$	—	$	—		$	3,106,931
Held-to-maturity:
Agency CMO	$	365,081	$	—	$	—		$	365,081	$	10,135	$	(1,009	)	$	374,207
Agency MBS	2,130,685		—		—			2,130,685		43,315		(53,188		)	2,120,812
Agency CMBS	115,995		—		—			115,995		44		(818		)	115,221
Municipal bonds and notes	448,405		—		—			448,405		11,104		(1,228		)	458,281
CMBS	290,057		—		—			290,057		8,635		(4,975		)	293,717
Private Label MBS	8,498		—		—			8,498		176		—			8,674
Total held-to-maturity	$	3,358,721	$	—	$	—		$	3,358,721	$	73,409	$	(61,218	)	$	3,370,912


(1)	Amortized cost is net of $2.6 million of other-than-temporary impairments at December 31, 2013.


(2)	Amortized cost is net of $14.0 million of other-than-temporary impairments at December 31, 2013.


(3)	Amortized cost is net of $20.4 million of other-than-temporary impairments at December 31, 2013.

Summary of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at September 30, 2014, by contractual maturity, are set forth below:



	Available-for-Sale				Held-to-Maturity
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	15,518	$	15,546	$	15	$	15
Due after one year through five years	107,131		111,200		70,092		73,095
Due after five through ten years	260,350		260,884		67,799		70,457
Due after ten years	2,470,071		2,486,256		3,504,073		3,556,258
Total debt securities	$	2,853,070	$	2,873,886	$	3,641,979	$	3,699,825

Summary of Gross Unrealized Losses not Considered OTTI

The following tables provide information on the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment security type and length of time that individual investment securities have been in a continuous unrealized loss position:



	At September 30, 2014
	Less Than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			# of Holdings	Fair Value		Unrealized Losses
Available-for-sale:
Agency CMO	$	82,646	$	(278	)	$	35,915	$	(779	)	10	$	118,561	$	(1,057	)
Agency MBS	55,408		(262		)	665,932		(23,277		)	73	721,340		(23,539		)
Agency CMBS	36,325		(88		)	44,057		(261		)	4	80,382		(349		)
CMBS	15,000		(41		)	9,390		(14		)	3	24,390		(55		)
CLO	31,858		(142		)	—		—			2	31,858		(142		)
Pooled trust preferred securities	—		—			—		—			—	—		—
Single issuer trust preferred securities	—		—			35,120		(2,637		)	7	35,120		(2,637		)
Total available-for-sale in an unrealized loss position	$	221,237	$	(811	)	$	790,414	$	(26,968	)	99	$	1,011,651	$	(27,779	)
Held-to-maturity:
Agency CMO	$	111,069	$	(798	)	$	25,943	$	(611	)	10	$	137,012	$	(1,409	)
Agency MBS	258,608		(1,161		)	671,769		(21,907		)	64	930,377		(23,068		)
Agency CMBS	196,139		(622		)	—		—			9	196,139		(622		)
Municipal bonds and notes	4,311		(6		)	3,075		(32		)	14	7,386		(38		)
CMBS	5,494		(10		)	73,167		(2,112		)	8	78,661		(2,122		)
Total held-to-maturity in an unrealized loss position	$	575,621	$	(2,597	)	$	773,954	$	(24,662	)	105	$	1,349,575	$	(27,259	)



	At December 31, 2013
	Less Than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			# of Holdings	Fair Value		Unrealized Losses
Available-for-sale:
Agency CMO	$	149,894	$	(1,713	)	$	9,011	$	(155	)	15	$	158,905	$	(1,868	)
Agency MBS	616,286		(29,537		)	279,680		(18,161		)	88	895,966		(47,698		)
Agency CMBS	70,977		(782		)	—		—			3	70,977		(782		)
CMBS	52,340		(996		)	—		—			7	52,340		(996		)
CLO	—		—			—		—			—	—		—
Pooled trust preferred securities	—		—			11,141		(3,410		)	2	11,141		(3,410		)
Single issuer trust preferred securities	3,777		(381		)	31,158		(6,491		)	8	34,935		(6,872		)
Total available-for-sale in an unrealized loss position	$	893,274	$	(33,409	)	$	330,990	$	(28,217	)	123	$	1,224,264	$	(61,626	)
Held-to-maturity:
Agency CMO	$	53,789	$	(1,009	)	$	—	$	—		4	$	53,789	$	(1,009	)
Agency MBS	1,045,693		(42,181		)	170,780		(11,007		)	94	1,216,473		(53,188		)
Agency CMBS	90,218		(818		)	—		—			4	90,218		(818		)
Municipal bonds and notes	46,587		(1,193		)	2,166		(35		)	51	48,753		(1,228		)
CMBS	106,527		(4,059		)	14,832		(916		)	11	121,359		(4,975		)
Total held-to-maturity in an unrealized loss position	$	1,342,814	$	(49,260	)	$	187,778	$	(11,958	)	164	$	1,530,592	$	(61,218	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following is a roll forward of the amount of OTTI related to debt securities:



	Three months ended September 30,						Nine months ended September 30,
(In thousands)	2014			2013			2014			2013
Balance of OTTI, beginning of period	$	9,738		$	10,460		$	16,633		$	10,460
Reduction for securities sold, called	(7,026		)	(1,104		)	(14,082		)	(1,104		)
Additions for OTTI not previously recognized	85			—			246			—
Balance of OTTI, end of period	$	2,797		$	9,356		$	2,797		$	9,356

Summary of Sale Proceeds of Available for Sale Securities

The following table summarizes proceeds from available-for-sale securities, the gross realized gains and losses from those sales, and the impact of the recognition of other-than-temporary impairments for the periods presented:



	Three months ended September 30,					Nine months ended September 30,
(In thousands)	2014			2013		2014			2013
Proceeds from sales⁽¹⁾	$	16,380		$	7,740	$	38,075		$	44,261

Gross realized gains	$	1,812		$	269	$	6,148		$	708
Gross realized losses	(1,770		)	—		(1,770		)	—
OTTI write-down	(85		)	—		(246		)	—
Net realized (losses) gains from investment securities	$	(43	)	$	269	$	4,132		$	708


(1)	Proceeds from sales, for the three and nine months ended September 30, 2014, does not include $25.3 million of unsettled sales transactions at September 30, 2014. The gross realized gains and gross realized losses for the three and nine months ended September 30, 2014 reflect the unsettled sales transactions.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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