XML 26 R16.htm IDEA: XBRL DOCUMENT v3.22.2.2
Borrowings
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Borrowings Borrowings
The following table summarizes securities sold under agreements to repurchase and other borrowings:
At September 30, 2022At December 31, 2021
(Dollars in thousands)Total OutstandingRateTotal OutstandingRate
Securities sold under agreements to repurchase (1):
Original maturity of one year or less$312,089 0.11 %$474,896 0.11 %
Original maturity of greater than one year, non-callable (2)
— — 200,000 1.32 
Total securities sold under agreements to repurchase (1)
312,089 0.11 674,896 0.47 
Federal funds purchased953,325 3.17 — — 
Securities sold under agreements to repurchase and other borrowings$1,265,414 2.41 $674,896 0.47 
(1)Webster has the right of offset with respect to all repurchase agreement assets and liabilities. Total securities sold under agreements to repurchase are presented as gross transactions, as only liabilities are outstanding for the periods presented.
(2)During the three months September 30, 2022, Webster and its repurchase agreement counterparty agreed to fully extinguish two $100 million long-term, structured repurchase agreements. As a result, a net fee of $2.5 million was paid to Webster, which was recognized as a gain and recorded within other non-interest income on the Condensed Consolidated Statements of Operations.
Securities sold under agreements to repurchase are used as a source of borrowed funds and are collateralized by Agency MBS and corporate bonds. The Company's repurchase agreement counterparties are limited to primary dealers in government securities, and commercial and municipal customers through the Corporate Treasury function. Webster may also purchase unsecured term and overnight federal funds to satisfy its short-term liquidity needs.
The following table summarizes information for FHLB advances:
At September 30, 2022At December 31, 2021
(Dollars in thousands)Total OutstandingWeighted-
Average Contractual Coupon Rate		Total OutstandingWeighted-
Average Contractual Coupon Rate
Maturing within 1 year$3,500,145 3.03 %$90 — %
After 1 but within 2 years122 2.51 202 2.95 
After 2 but within 3 years— — — — 
After 3 but within 4 years— — — — 
After 4 but within 5 years— — — — 
After 5 years10,450 2.03 10,705 2.03 
Total FHLB advances$3,510,717 3.03 $10,997 2.03 
Aggregate carrying value of assets pledged as collateral$9,973,866 $7,556,034 
Remaining borrowing capacity at FHLB3,513,563 5,087,294 
Webster Bank may borrow up to the amount of eligible mortgages and securities that have been pledged as collateral to secure FHLB advances, which primarily include certain residential and commercial real estate loans and home equity lines of credit. Webster Bank was in compliance with its FHLB collateral requirements at both September 30, 2022 and December 31, 2021.
The following table summarizes long-term debt:
(Dollars in thousands)At September 30,
2022		At December 31,
2021
4.375%Senior fixed-rate notes due February 15, 2024$150,000 $150,000 
4.100%
Senior fixed-rate notes due March 25, 2029 (1)
334,796 338,811 
4.000%Subordinated fixed-to-floating rate notes due December 30, 2029274,000 — 
3.875%Subordinated fixed-to-floating rate notes due November 1, 2030225,000 — 
Junior subordinated debt Webster Statutory Trust I floating-rate notes due September 17, 2033 (2)
77,320 77,320 
Total senior and subordinated debt1,061,116 566,131 
Discount on senior fixed-rate notes(811)(974)
Debt issuance cost on senior fixed-rate notes(1,924)(2,226)
Premium on subordinated fixed-to-floating rate notes16,463 — 
Long-term debt$1,074,844 $562,931 
(1)Webster de-designated its fair value hedging relationship on these senior notes in 2020. A basis adjustment of $34.8 million and $38.8 million at September 30, 2022 and December 31, 2021, respectively, is included in the carrying value and is being amortized over the remaining life of the senior notes.
(2)The interest rate on the Webster Statutory Trust I floating-rate notes, which varies quarterly based on 3-month LIBOR plus 2.95%, was 6.48% and 3.17% at September 30, 2022 and December 31, 2021, respectively.
Webster assumed $274.0 million in aggregate principal amount of 4.00% fixed-to-floating rate subordinated notes due on December 30, 2029 (the 2029 subordinated notes) in connection with the Sterling merger. The 2029 subordinated notes were issued by Sterling on December 16, 2019 through a public offering, and are redeemable at a price equal to the total principal amount plus any accrued and unpaid interest thereon, in whole or in part by Webster on December 30, 2024, or any interest payment date thereafter, upon the occurrence of certain specified events. Until December 30, 2024, the interest rate is fixed at 4.00% and payable semi-annually in arrears on each June 30 and December 30. From December 30, 2024 through the earlier of maturity or redemption, the 2029 subordinated notes will bear interest at a floating rate per annum equal to three-month term SOFR plus 253 basis points, payable quarterly in arrears on each March 30, June 30, September 30, and December 30.
In addition, Webster assumed $225.0 million in aggregate principal amount of 3.875% fixed-to-floating rate subordinated notes due on November 1, 2030 (the 2030 subordinated notes) in connection with the Sterling merger. The 2030 subordinated notes were issued by Sterling on October 30, 2020 through a public offering, and are redeemable at a price equal to the total principal amount plus any accrued and unpaid interest thereon, in whole or in part by Webster on December 30, 2024, or any interest payment date thereafter, upon the occurrence of certain specified events. Until November 1, 2025, the interest rate is fixed at 3.875% and payable semi-annually in arrears on each May 1 and December 30. From November 1, 2025 through the earlier of maturity or redemption, the 2030 subordinated notes will bear interest at a floating rate per annum equal to three-month term SOFR plus 369 basis points, payable quarterly in arrears on each February 1, May 1, August 1, and November 1.
Webster recorded the 2029 and 2030 subordinated notes at their estimated fair value of $281.0 million and $235.9 million, respectively, on the merger effective date. The purchase premiums are being amortized into interest expense over the remaining lives of the subordinated notes.