Borrowings

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

The following table summarizes securities sold under agreements to repurchase and other borrowings:

	At June 30, 2023				At December 31, 2022
(Dollars in thousands)	Total Outstanding		Rate		Total Outstanding		Rate
Securities sold under agreements to repurchase (1)	$	243,580	0.11	%	$	282,005	0.11	%
Federal funds purchased	—		—		869,825		4.44
Securities sold under agreements to repurchase and other borrowings	$	243,580	0.11	%	$	1,151,830	3.38	%

(1)The Company 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.

Securities sold under agreements to repurchase, all of which have an original maturity of one year or less for the periods presented, are used as a source of borrowed funds and are collateralized by Agency MBS and Corporate debt. The Company's repurchase agreement counterparties are limited to primary dealers in government securities, and commercial and municipal customers through the Corporate Treasury function. The Company 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 June 30, 2023				At December 31, 2022
(Dollars in thousands)	Total Outstanding		Weighted- Average Contractual Coupon Rate		Total Outstanding		Weighted- Average Contractual Coupon Rate
Maturing within 1 year	$	4,300,180	5.26	%	$	5,450,187	4.40	%
After 1 but within 2 years	—		—		—		—
After 2 but within 3 years	—		—		—		—
After 3 but within 4 years	—		—		—		—
After 4 but within 5 years	478		1.35		252		—
After 5 years	9,713		2.07		10,113		2.09
Total FHLB advances	$	4,310,371	5.26	%	$	5,460,552	4.39	%
Aggregate carrying value of assets pledged as collateral	$	21,308,244			$	13,692,379
Remaining borrowing capacity at FHLB	11,559,717				4,291,326

The Bank may borrow up to the amount of eligible mortgages and securities that have been pledged as collateral to secure FHLB advances, which includes certain residential and commercial real estate loans, home equity lines of credit, CMBS, Agency MBS, Agency CMO, U.S. Treasury notes, and MBS. The Bank was in compliance with its FHLB collateral requirements at both June 30, 2023, and December 31, 2022.

The following table summarizes long-term debt:

(Dollars in thousands)		At June 30, 2023		At December 31, 2022
4.375%	Senior fixed-rate notes due February 15, 2024 (2)	$	132,550	$	150,000
4.100%	Senior fixed-rate notes due March 25, 2029 (3)	330,781		333,458
4.000%	Subordinated fixed-to-floating rate notes due December 30, 2029	274,000		274,000
3.875%	Subordinated fixed-to-floating rate notes due November 1, 2030	225,000		225,000
Junior subordinated debt Webster Statutory Trust I floating-rate notes due September 17, 2033 (4)		77,320		77,320
Total senior and subordinated debt		1,039,651		1,059,778
Discount on senior fixed-rate notes		(647)		(756)
Debt issuance cost on senior fixed-rate notes		(1,612)		(1,824)
Premium on subordinated fixed-to-floating rate notes		14,866		15,930
Long-term debt (1)		$	1,052,258	$	1,073,128

(1)The classification of debt as long-term is based on the initial terms of greater than one year as of the date of issuance.

(2)During the three months ended June 30, 2023, the Company repurchased and retired $17.5 million of these senior notes at 96 cents on the dollar. The resulting $0.7 million gain recognized on extinguishment was recorded in Other income on the accompanying Condensed Consolidated Statements of Income.

(3)The Company de-designated its fair value hedging relationship on these senior notes in 2020. A basis adjustment of $30.8 million and $33.5 million at June 30, 2023, and December 31, 2022, respectively, is included in the carrying value and is being amortized over the remaining life of the senior notes.

(4)The interest rate on the Webster Statutory Trust I floating-rate notes at June 30, 2023, and December 31, 2022, was calculated based on 3-month LIBOR plus 2.95%, which yielded 8.46% and 7.69% respectively.