XML 44 R28.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Retirement Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2024
Retirement Benefits [Abstract] |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Pension and Other Postretirement Benefit Plans The Bank had offered a qualified noncontributory defined benefit Pension Plan and a non-qualified SERP to eligible employees and key executives who met certain age and service requirements, both of which were frozen effective December 31, 2007. Only those employees who were hired prior to January 1, 2007, and who became participants of the plans prior to January 1, 2008, have accrued benefits under the plans. The Bank also provides an OPEB plan to certain retired employees. In connection with the Sterling merger in 2022, the Company assumed the benefit obligations of Sterling’s non-qualified SERP and OPEB plans, which includes the Astoria Bank Excess Benefit and Supplemental Benefit Plans, Astoria Bank Directors’ Retirement Plan, Retirement Plan of the Greater New York Savings Bank for Non-Employee Directors, Supplemental Executive Retirement Plan of Provident Bank, Supplemental Executive Retirement Plan of Provident Bank - Other, Sterling Bancorp Supplemental Postretirement Life Insurance Plan, Astoria Bank Postretirement Welfare Benefit Plans, and a Split Dollar Life Insurance Arrangement. Each of the plan’s measurement dates, including the plans assumed from Sterling in the merger, coincides with the Company’s December 31 year end. The following table summarizes the changes in the benefit obligation, fair value of plan assets, and funded status of the defined benefit pension and other postretirement benefit plans at December 31:
| Pension |  | SERP |  | OPEB
(In thousands) | 2024 | 2023 |  | 2024 | 2023 |  | 2024 | 2023
Change in benefit obligation: |  |  |  |  |  |  |  |
Beginning balance | $ | 189,986 |  | $ | 187,836 |  |  | $ | 4,139 |  | $ | 4,245 |  |  | $ | 22,669 |  | $ | 22,822 |
Service cost | — |  | — |  |  | — |  | — |  |  | 17 |  | 27 |
Interest cost | 8,648 |  | 8,782 |  |  | 178 |  | 191 |  |  | 956 |  | 1,042 |
Actuarial (gain) loss (1) | (13,588) |  | 3,333 |  |  | (260) |  | 183 |  |  | 3,637 |  | (382) |
Benefits paid | (10,934) |  | (9,965) |  |  | (459) |  | (480) |  |  | (13,612) |  | (840) |
Ending balance | 174,112 |  | 189,986 |  |  | 3,598 |  | 4,139 |  |  | 13,667 |  | 22,669 |
Change in plan assets: |  |  |  |  |  |  |  |
Beginning balance | 217,167 |  | 201,382 |  |  | — |  | — |  |  | — |  | — |
Actual return on plan assets (2) | 3,106 |  | 25,750 |  |  | — |  | — |  |  | — |  | — |
Employer contributions | — |  | — |  |  | 459 |  | 480 |  |  | 13,612 |  | 840 |
Benefits paid | (10,934) |  | (9,965) |  |  | (459) |  | (480) |  |  | (13,612) |  | (840) |
Ending balance | 209,339 |  | 217,167 |  |  | — |  | — |  |  | — |  | — |
Funded status (3) | $ | 35,227 |  | $ | 27,181 |  |  | $ | (3,598) |  | $ | (4,139) |  |  | $ | (13,667) |  | $ | (22,669) |
(1)The change in actuarial (gain) loss is primarily due to actuarial gains in 2024 resulting from an increase in discount rates, as compared to actuarial losses in 2023 resulting from a decrease in discount rates. (2)The decrease in actual return on plan assets for the Pension Plan is primarily due to the performance of fixed income investments, which comprise approximately 65% of the portfolio. In 2024, fixed income investments earned a negative return, as compared to a positive return in 2023. (3)The overfunded (underfunded) status of each plan is respectively included in Accrued interest receivable and other assets or Accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets, as applicable. The following table summarizes the weighted-average assumptions used to determine the benefit obligation at December 31:
| Discount Rate
| 2024 | 2023 |
Pension: |  |  |
Webster Bank Pension Plan | 5.43 | % | 4.76 | % |
SERP: |  |  |
Webster Bank Supplemental Defined Benefit Plan for Executive Officers | 5.31 | % | 4.68 | % |
Astoria Bank Excess Benefit and Supplemental Benefit Plans | 5.14 |  | 4.56 |  |
Astoria Bank Directors’ Retirement Plan | 5.04 |  | 4.50 |  |
Retirement Plan of the Greater New York Savings Bank for Non-Employee Directors | 5.03 |  | 4.50 |  |
Supplemental Executive Retirement Plan of Provident Bank | 5.32 |  | 4.83 |  |
Supplemental Executive Retirement Plan of Provident Bank - Other | 5.09 |  | 4.71 |  |
OPEB: |  |  |
Webster Bank Postretirement Medical Benefit Plan | 5.01 | % | 4.54 | % |
Sterling Bancorp Supplemental Postretirement Life Insurance Plan | 5.20 |  | 4.51 |  |
Astoria Bank Postretirement Welfare Benefit Plans | 5.39 |  | 4.74 |  |
Split Dollar Life Insurance Arrangement (1) | n/a | 4.45 |  |
(1)The year end discount rate at December 31, 2024, is not applicable due to plan cessation during the year. The following table summarizes the amounts recorded in accumulated other comprehensive (loss) income that have not yet been recognized in net periodic benefit (income) cost at December 31:
| Pension |  | SERP |  | OPEB
(In thousands) | 2024 | 2023 |  | 2024 | 2023 |  | 2024 | 2023
Net actuarial loss (gain) | $ | 34,440 |  | $ | 41,296 |  |  | $ | (44) |  | $ | 312 |  |  | $ | (1,788) |  | $ | (3,231) |
Deferred tax (benefit) expense | (6,488) |  | (11,201) |  |  | 8 |  | (85) |  |  | 337 |  | 876 |
Net amount recorded in (AOCL) | $ | 27,952 |  | $ | 30,095 |  |  | $ | (36) |  | $ | 227 |  |  | $ | (1,451) |  | $ | (2,355) |
The following table summarizes the components of net periodic benefit (income) cost for the years ended December 31:
| Pension |  | SERP |  | OPEB
(In thousands) | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022
Service cost | $ | — |  | $ | — |  | $ | — |  |  | $ | — |  | $ | — |  | $ | — |  |  | $ | 17 |  | $ | 27 |  | $ | 34 |
Interest cost | 8,648 |  | 8,782 |  | 5,565 |  |  | 178 |  | 191 |  | 107 |  |  | 956 |  | 1,042 |  | 652 |
Expected return on plan assets | (12,709) |  | (11,778) |  | (14,675) |  |  | — |  | — |  | — |  |  | — |  | — |  | — |
Amortization of actuarial loss (gain) | 2,871 |  | 4,781 |  | 2,224 |  |  | 12 |  | 6 |  | 26 |  |  | (976) |  | (2,704) |  | (40) |
Other (1) | — | — | — |  |  | — | — | — |  |  | 3,212 |  | — |  | — |
Net periodic benefit (income) cost (2) | $ | (1,190) |  | $ | 1,785 |  | $ | (6,886) |  |  | $ | 190 |  | $ | 197 |  | $ | 133 |  |  | $ | 3,209 |  | $ | (1,635) |  | $ | 646 |
(1)Reflects the loss recognized upon cessation of the Split Dollar Life Insurance Arrangement in 2024. (2)Net periodic benefit (income) cost is included in Other expense on the accompanying Consolidated Statements of Income. The following table summarizes the weighted-average assumptions used to determine net periodic benefit (income) cost for the years ended December 31:
| Discount Rate
| 2024 | 2023 | 2022
Pension: |  |  |
Webster Bank Pension Plan | 4.76 | % | 4.96 | % | 2.65 | %
SERP: |  |  |
Webster Bank Supplemental Defined Benefit Plan for Executive Officers | 4.68 | % | 4.88 | % | 2.45 | %
Astoria Bank Excess Benefit and Supplemental Benefit Plans | 4.56 |  | 4.77 |  | 2.58 |
Astoria Bank Directors’ Retirement Plan | 4.50 |  | 4.70 |  | 2.23 |
Retirement Plan of the Greater New York Savings Bank for Non-Employee Directors | 4.50 |  | 4.70 |  | 2.37 |
Supplemental Executive Retirement Plan of Provident Bank | 4.83 |  | 5.04 |  | 2.76 |
Supplemental Executive Retirement Plan of Provident Bank - Other | 4.71 |  | 4.90 |  | 2.38 |
OPEB: |  |  |
Webster Bank Postretirement Medical Benefit Plan | 4.54 | % | 4.72 | % | 1.99 | %
Sterling Bancorp Supplemental Postretirement Life Insurance Plan | 4.51 |  | 4.70 |  | 2.35 |
Astoria Bank Postretirement Welfare Benefit Plans | 4.74 |  | 4.94 |  | 2.93 |
Split Dollar Life Insurance Arrangement | 4.45 |  | 4.63 |  | 2.20 |
| Expected Long-Term Rate of Return on Plan Assets
| 2024 | 2023 | 2022
Pension: |  |  |
Webster Bank Pension Plan | 6.00 | % | 6.00 | % | 5.50 | %
| Assumed Health Care Cost Trend Rate (1)
| 2024 | 2023 | 2022
OPEB: |  |  |
Webster Bank Postretirement Medical Benefit Plan | 6.50 | % | 6.50 | % | 6.25 | %
Astoria Bank Postretirement Welfare Benefit Plans | 6.50 |  | 6.40 |  | 6.60 |
(1)The rates to which the healthcare cost trend rates are assumed to decline (ultimate trend rates) along with the year that the ultimate trend rates will be reached for the Webster Bank Postretirement Medical Benefit Plan and the Astoria Bank Postretirement Welfare Benefit Plans are 4.40% in 2033, and 4.40% in 2034, respectively. The discount rates used to determine the benefit obligation and net periodic benefit (income) cost for the Company’s defined benefit pension and other postretirement benefit plans were generally selected by reference to a high-quality bond yield curve, using a full yield curve approach, and matched to the timing and amount of each plan’s expected benefit payments. The following table summarizes amounts recognized in other comprehensive (loss) income, including reclassification adjustments, for the years ended December 31:
| Pension |  | SERP |  | OPEB
(In thousands) | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022
Net actuarial (gain) loss | $ | (3,985) |  | $ | (10,639) |  | $ | 17,148 |  |  | $ | (260) |  | $ | 183 |  | $ | (581) |  |  | $ | 955 |  | $ | (382) |  | $ | (4,992) |
Amounts reclassified from (AOCL) | (2,871) |  | (4,781) |  | (2,224) |  |  | (12) |  | (6) |  | (26) |  |  | 976 |  | 2,704 |  | 40 |
Total (gain) loss recognized in OCI (OCL) | $ | (6,856) |  | $ | (15,420) |  | $ | 14,924 |  |  | $ | (272) |  | $ | 177 |  | $ | (607) |  |  | $ | 1,931 |  | $ | 2,322 |  | $ | (4,952) |
At December 31, 2024, the expected future benefit payments for the Company’s defined benefit pension and other postretirement benefits plans are as follows:
(In thousands) | Pension | SERP | OPEB
2025 | $ | 11,052 |  | $ | 457 |  | $ | 1,262 |
2026 | 11,457 |  | 440 |  | 1,218 |
2027 | 11,882 |  | 420 |  | 1,223 |
2028 | 12,270 |  | 399 |  | 1,183 |
2029 | 12,579 |  | 377 |  | 1,143 |
Thereafter | 65,045 |  | 1,492 |  | 5,132 |
Asset Management The Pension Plan invests primarily in common collective trusts and registered investment companies. However, the Pension Plan’s investment policy guidelines also allow for the investment in cash and cash equivalents, fixed income securities, and equity securities. Common collective trusts and registered investment companies are both benchmarked against the Standard & Poor’s 500 Index. Incremental benchmarks used to assess the common collective trusts include the S&P 400 Mid Cap Index, Russell 200 Index, MSCI ACWI ex U.S. Index, and the Bloomberg U.S. Long Credit Index. The standard deviation should not exceed that of the composite index. The Pension Plan’s investment strategy and asset allocations are monitored by the Company’s Retirement Plans Committee with the assistance of external investment advisors, and the investment portfolio is rebalanced, as appropriate. The target asset allocation percentages for the year ended December 31, 2024, were 64.5% fixed-income investments and 35.5% equity investments. The actual asset allocation percentages for the year ended December 31, 2024, were 64.1% fixed-income investments, 35.3% equity investments, and 0.6% cash and cash equivalents. The overall investment objective of the Pension Plan is to maintain a diversified portfolio with a targeted expected long-term rate of return on plan assets of approximately 6.00%. The expected long-term rate of return on plan assets is the average rate of return expected to be realized on funds invested, or expected to be invested, to provide for the benefits included in the benefit obligation. The expected long-term rate of return on plan assets is generally established as of the beginning of the year based upon historical and projected returns for each asset category, with subsequent remeasurements occurring in interim periods, as appropriate. Depending on market conditions, the expected long-term rate of return on plan assets may exceed or fall short of the targeted percentage. Fair Value Measurement The following is a description of the valuation methodologies used for the Pension Plan’s assets measured at fair value: Common Collective Trusts. Common collective trusts are valued based on the net asset value as reported by the trustee of the funds. The funds’ underlying investments are valued using quoted market prices in active markets or observable inputs for similar assets. Therefore, common collective trusts are classified as Level 2 within the fair value hierarchy. Registered Investment Companies. Registered investment companies are valued at the daily closing price as reported by the fund. Registered investment companies held by the Plan are quoted in an active market and are classified as Level 1 within the fair value hierarchy. Cash and Cash Equivalents. Cash and cash equivalents are recorded at cost plus accrued interest and are classified as Level 1 within the fair value hierarchy. The following table sets forth by level within the fair value hierarchy the Pension Plan’s assets at fair value:
| At December 31,
| 2024 |  | 2023
(In thousands) | Level 1 | Level 2 | Level 3 | Total |  | Level 1 | Level 2 | Level 3 | Total
Common collective trusts | $ | — |  | $ | 187,096 |  | $ | — |  | $ | 187,096 |  |  | $ | — |  | $ | 195,004 |  | $ | — |  | $ | 195,004 |
Registered investment companies | 20,939 |  | — |  | — |  | 20,939 |  |  | 20,965 |  | — |  | — |  | 20,965 |
Cash and cash equivalents | 1,304 |  | — |  | — |  | 1,304 |  |  | 1,198 |  | — |  | — |  | 1,198 |
Total pension plan assets | $ | 22,243 |  | $ | 187,096 |  | $ | — |  | $ | 209,339 |  |  | $ | 22,163 |  | $ | 195,004 |  | $ | — |  | $ | 217,167 |
Multiple-Employer Defined Benefit Pension Plan The Bank participates in a multi-employer plan that provides pension benefits to former employees of a bank acquired by the Company. Participation in the plan was frozen as of September 1, 2004. The plan maintains a single trust and does not segregate the assets or liabilities of its participating employers. Minimum required employer contributions are determined by an independent actuary and are calculated using a 15-year shortfall amortization factor. There are no collective bargaining agreements or other obligations requiring contributions to the plan, nor has a funding improvement plan been implemented. The following table summarizes information related to the Bank’s participation in the multi-employer plan:
(In thousands) |  |  |  |  |  |  |  | Contributions Years Ended December 31, |  | Funded Status At December 31,
Plan Name |  | Employer Identification Number |  | Plan Number |  | Surcharge Imposed |  | 2024 | 2023 | 2022 |  | 2024 | 2023
Pentegra Defined Benefit Plan for Financial Institutions |  | 13-5645888 |  | 333 |  | No |  | $482 | $448 | $448 |  | At least 80 percent | At least 80 percent
The Bank’s contributions to the multi-employer plan for the years ended December 31, 2024, 2023, and 2022, did not exceed more than 5% of total plan contributions for the plan years ended June 30, 2023, 2022, and 2021. The plan’s Form 5500 was not available for the plan year ended June 30, 2024, as of the date the Company’s Consolidated Financial Statements were issued. As of July 1, 2024, the date of the most recent actuarial valuation, the plan administrator confirmed that the Bank’s portion of the multi-employer plan was $3.3 million underfunded. Defined Contribution Postretirement Benefit Plans The Bank also sponsors the Webster Bank Retirement Savings Plan, which is a defined contribution postretirement benefit plan established under Section 401(k) of the Internal Revenue Code. Under the Webster Bank Retirement Savings Plan, employees who have met a certain age requirement may elect to contribute a percentage of their eligible compensation to the plan on either a pre-tax or post-tax basis. During the years ended December 31, 2024, 2023, and 2022, the Bank made matching employer contributions to their accounts equal to 100% of the first 2% and 50% of the next 6% of participants’ contributions. The Sterling National Bank 401k and Profit Sharing Plan, which was offered to eligible legacy Sterling employees who became employees of the Company in 2022, was effectively merged with and into the Webster Bank Retirement Savings Plan on December 29, 2023. Prior to the merger of these plans, participants of the Sterling National Bank 401(k) and Profit Sharing Plan could elect to contribute a percentage of their eligible compensation to the plan on either a pre-tax or post-tax basis. During the years ended December 31, 2023, and 2022, the Bank made (i) matching employer contributions equal to 50% of participant contributions up to 4% of eligible compensation for a maximum match of 2%, and (ii) profit sharing contributions equal to 3% of eligible compensation for all eligible legacy Sterling participants, regardless of whether they had contributed to the plan. Compensation and benefits expense included total employer contributions under the defined contribution postretirement benefit plans of $20.6 million, $20.3 million, and $18.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration