Borrowings

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Borrowings

Borrowings

Securities Sold Under Agreements to Repurchase and Federal Funds Purchased

The following table summarizes securities sold under agreements to repurchase and federal funds purchased:

	March 31, 2025				December 31, 2024
(Dollars in thousands)	Total Outstanding		Rate		Total Outstanding		Rate
Securities sold under agreements to repurchase (1)	$	83,395	0.12	%	$	344,168	2.98	%
Federal funds purchased	—		—		—		—
Securities sold under agreements to repurchase and federal funds purchased	$	83,395	0.12	%	$	344,168	2.98	%

(1)Securities sold under agreements to repurchase have an original maturity of one year or less for the periods presented.

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 has the right of offset with respect to repurchase agreement assets and liabilities with the same counterparty when master netting agreements are in place. Securities sold under agreements to repurchase are presented as gross transactions at March 31, 2025, and December 31, 2024, since only liabilities are outstanding. Agency MBS securities, which had an aggregate market value of $85.8 million and $358.4 million at March 31, 2025, and December 31, 2024, respectively, are pledged to secure repurchase agreements. These Agency MBS securities are subject to changes in market value and, therefore, the Company may increase or decrease the level of securities pledged as collateral based upon movements in market value.

The following tables represent the offsetting of repurchase agreements that are subject to master netting agreements:

	March 31, 2025
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial position
(In thousands)							Financial Instruments		Cash Collateral Pledged		Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—	$	—	$	—
	December 31, 2024
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial position
(In thousands)							Financial Instruments		Cash Collateral Pledged		Net Amount
Repurchase agreements	$	209,961	$	—	$	209,961	$	220,588	$	—	$	(10,627)

FHLB Advances

The following table summarizes information for FHLB advances:

	March 31, 2025				December 31, 2024
(Dollars in thousands)	Total Outstanding		Weighted- Average Contractual Coupon Rate		Total Outstanding		Weighted- Average Contractual Coupon Rate
Maturing within 1 year	$	2,900,000	4.46	%	$	2,100,000	4.50	%
After 1 but within 2 years	—		—		—		—
After 2 but within 3 years	425		1.37		218		—
After 3 but within 4 years	—		—		215		2.75
After 4 but within 5 years	636		1.75		642		1.75
After 5 years	8,950		2.02		9,033		2.02
Total FHLB advances	$	2,910,011	4.45	%	$	2,110,108	4.49	%
Aggregate market value of assets pledged as collateral	$	16,544,661			$	16,581,133
Remaining borrowing capacity at FHLB	7,889,282				8,670,348

The Bank may borrow up to a discounted amount of eligible loans and securities that have been pledged as collateral to secure FHLB advances, which includes certain residential, multi-family, and commercial real estate loans, home equity lines of credit, Agency MBS, and Agency CMO. The Bank was in compliance with its FHLB collateral requirements at both March 31, 2025, and December 31, 2024.

Long-term Debt

The following table summarizes long-term debt:

(Dollars in thousands)		March 31, 2025		December 31, 2024
4.100%	Senior fixed-rate notes due March 25, 2029 (1)	$	321,413	$	322,751
Subordinated floating-rate notes due December 30, 2029 (2)		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		897,733		899,071
Discount on senior fixed-rate notes		(398)		(423)
Debt issuance cost on senior fixed-rate notes		(1,070)		(1,137)
Premium on subordinated fixed-to-floating rate notes		11,145		11,674
Long-term debt (4)		$	907,410	$	909,185

(1)The Company de-designated its fair value hedging relationship on these senior fixed-rate notes in 2020. A basis adjustment of $21.4 million and $22.8 million at March 31, 2025, and December 31, 2024, respectively, is included in the carrying value and is being amortized over the remaining life of the senior fixed-rate notes.

(2)The interest rate on the 2029 subordinated floating-rate notes varies quarterly based on 3-month term SOFR plus 253 basis points, which yielded 6.83% at March 31, 2025, and 6.84% at December 31, 2024.

(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 7.51% at March 31, 2025, and 7.56% at December 31, 2024.

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

Additional information regarding the Company’s long-term debt can be found within Note 11: Borrowings in the Notes to Consolidated Financial Statements contained in Part II - Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.