Borrowings

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

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

	At March 31, 2024				At December 31, 2023
(Dollars in thousands)	Total Outstanding		Rate		Total Outstanding		Rate
Securities sold under agreements to repurchase (1)	$	126,886	0.12	%	$	358,387	3.43	%
Federal funds purchased	235,000		5.44		100,000		5.48
Securities sold under agreements to repurchase and other borrowings	$	361,886	3.58	%	$	458,387	3.88	%

(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 March 31, 2024				At December 31, 2023
(Dollars in thousands)	Total Outstanding		Weighted- Average Contractual Coupon Rate		Total Outstanding		Weighted- Average Contractual Coupon Rate
Maturing within 1 year	$	3,650,000	5.50	%	$	2,350,000	5.53	%
After 1 but within 2 years	—		—		—		—
After 2 but within 3 years	—		—		—		—
After 3 but within 4 years	456		1.36		235		—
After 4 but within 5 years	—		—		228		2.75
After 5 years	9,474		2.08		9,555		2.07
Total FHLB advances	$	3,659,930	5.49	%	$	2,360,018	5.52	%
Aggregate market value of assets pledged as collateral	$	20,238,325			$	20,734,035
Remaining borrowing capacity at FHLB	10,779,412				12,535,423

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 March 31, 2024, and December 31, 2023.

The following table summarizes long-term debt:

(Dollars in thousands)		At March 31, 2024		At December 31, 2023
4.375%	Senior fixed-rate notes due February 15, 2024	$	—	$	132,550
4.100%	Senior fixed-rate notes due March 25, 2029 (2)	326,766		328,104
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 (3)		77,320		77,320
Total senior and subordinated debt		903,086		1,036,974
Discount on senior fixed-rate notes		(498)		(537)
Debt issuance cost on senior fixed-rate notes		(1,337)		(1,419)
Premium on subordinated fixed-to-floating rate notes		13,269		13,802
Long-term debt (1)		$	914,520	$	1,048,820

(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)The Company de-designated its fair value hedging relationship on these senior fixed-rate notes in 2020. A basis adjustment of $26.8 million and $28.1 million at March 31, 2024, and December 31, 2023, respectively, is included in the carrying value and is being amortized over the remaining life of the senior fixed-rate notes.

(3)The interest rate on the Webster Statutory Trust I floating-rate notes varies quarterly based on 3-month SOFR plus a credit spread adjustment plus a market spread of 2.95%, which yielded 8.54% at March 31, 2024, and 8.59% at December 31, 2023