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Borrowings | 12 Months Ended
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Dec. 31, 2024
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:
| At December 31,
| 2024 |  | 2023
(In thousands) | Total Outstanding | Rate |  | Total Outstanding | Rate
Securities sold under agreements to repurchase (1) | $ | 344,168 |  | 2.98 | % |  | $ | 358,387 |  | 3.43 | %
Federal funds purchased | — |  | — |  |  | 100,000 |  | 5.48 |
Securities sold under agreements to repurchase and federal funds purchased | $ | 344,168 |  | 2.98 | % |  | $ | 458,387 |  | 3.88 | %
(1)At December 31, 2024, and 2023, securities sold under agreements to repurchase had an original maturity of one year or less. 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 December 31, 2024, and 2023, since only liabilities are outstanding. Agency MBS securities, which had an aggregate market value of $358.4 million and $381.4 million at December 31, 2024, and 2023, 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:
| At 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) |
| At December 31, 2023
| 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 | $ | 216,251 |  |  | $ | — |  |  | $ | 216,251 |  |  | $ | 232,176 |  |  | $ | — |  |  | $ | (15,925) |
FHLB Advances The following table summarizes information for FHLB advances:
| At December 31,
| 2024 |  | 2023
(In thousands) | Total Outstanding | Weighted-Average Contractual Coupon Rate |  | Total Outstanding | Weighted-Average Contractual Coupon Rate
Maturing within 1 year | $ | 2,100,000 |  | 4.50 | % |  | $ | 2,350,000 |  | 5.53 | %
After 1 but within 2 years | — |  | — |  |  | — |  | — |
After 2 but within 3 years | 218 |  | — |  |  | — |  | — |
After 3 but within 4 years | 215 |  | 2.75 |  |  | 235 |  | — |
After 4 but within 5 years | 642 |  | 1.75 |  |  | 228 |  | 2.75 |
After 5 years | 9,033 |  | 2.02 |  |  | 9,555 |  | 2.07 |
FHLB advances | $ | 2,110,108 |  | 4.49 | % |  | $ | 2,360,018 |  | 5.52 | %
Aggregate market value of assets pledged as collateral | $ | 16,581,133 |  |  |  | $ | 20,734,035 |  |
Remaining borrowing capacity at FHLB | 8,670,348 |  |  |  | 12,535,423 |  |
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, CMBS, Agency MBS, Agency CMO, and MBS. The Bank was in compliance with its FHLB collateral requirements at both December 31, 2024, and 2023. Long-term Debt The following table summarizes long-term debt:
| At December 31,
(In thousands) | 2024 |  | 2023
2024 senior notes | $ | — |  |  | $ | 132,550 |
2029 senior notes (1) | 322,751 |  |  | 328,104 |
2029 subordinated notes | 274,000 |  |  | 274,000 |
2030 subordinated notes | 225,000 |  |  | 225,000 |
2033 junior subordinated notes | 77,320 |  |  | 77,320 |
Total senior and subordinated debt | 899,071 |  |  | 1,036,974 |
Discount on 2029 senior notes | (423) |  |  | (537) |
Debt issuance cost on 2029 senior notes | (1,137) |  |  | (1,419) |
Premium on 2029 subordinated notes and 2030 subordinated notes | 11,674 |  |  | 13,802 |
Long-term debt (2) | $ | 909,185 |  |  | $ | 1,048,820 |
(1)The Company de-designated its fair value hedging relationship on these senior notes in 2020. A basis adjustment of $22.8 million and $28.1 million at December 31, 2024, and 2023, respectively, is included in the carrying value and is being amortized over the remaining life of the senior fixed-rate notes. (2)The classification of debt as long-term is based on the initial terms of greater than one year as of the date of issuance. 2024 Senior Notes. On February 11, 2014, the Company issued $150.0 million in aggregate principal amount of 4.375% fixed-rate senior notes due on February 15, 2024 (the 2024 senior notes). The 2024 senior notes were not convertible or exchangeable, and interest was paid semi-annually in arrears on February 15 and August 15 of each year. Prior to January 16, 2024, the 2024 senior notes were redeemable by the Company at any time, in whole or in part, at a price equal to the greater of (i) the total principal amount to be redeemed and (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon, exclusive of interest accrued to the redemption date, discounted to the redemption date on a semi-annual basis at the Treasury rate plus 30 basis points, plus in any case any accrued and unpaid interest thereon, but excluding the redemption date. On or after January 16, 2024, the 2024 senior notes were redeemable by the Company at any time, in whole or in part, at a redemption price equal to the total principal amount to be redeemed plus any accrued and unpaid interest thereon to, but excluding, the redemption date. The Company repurchased and retired $17.5 million of the 2024 senior notes at 96 cents on the dollar in May 2023. The resulting $0.7 million gain recognized upon the extinguishment was included in Other income on the accompany Consolidated Statements of Income for the year ended December 31, 2023. On February 15, 2024, the Company repaid the outstanding $132.6 million principal amount of the 2024 senior notes plus any accrued and unpaid interest due thereon to. 2029 Senior Notes. On March 25, 2019, the Company issued $300.0 million in aggregate principal amount of 4.100% fixed-rate senior notes due on March 25, 2029 (the 2029 senior notes). The 2029 senior notes are not convertible or exchangeable, and interest is payable semi-annually in arrears on March 25 and September 25 of each year. Prior to December 25, 2028, the 2029 senior notes may be redeemed by the Company at any time, in whole or in part, at a price equal to the greater of (i) the total principal amount to be redeemed and (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon, exclusive of interest accrued to the redemption date, discounted to the redemption date on a semi-annual basis at the Treasury rate plus 25 basis points, plus in any case any accrued and unpaid interest thereon, but excluding the redemption date. On or after December 25, 2028, the 2029 senior notes may be redeemed by the Company at any time, in whole or in part, at a redemption price equal to the total principal amount to be redeemed plus any accrued and unpaid interest thereon to, but excluding, the redemption date. 2029 Subordinated Notes. The Company assumed $274.0 million in aggregate principal amount of 4.000% fixed-to-floating rate subordinated notes due on December 30, 2029 (the 2029 subordinated notes), in connection with the Sterling merger in 2022. The 2029 subordinated notes were issued by Sterling on December 16, 2019, and are not convertible or exchangeable. Prior to December 30, 2024, the interest rate was fixed at 4.000% and payable semi-annually in arrears on June 30 and December 30 of each year. On and after 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 March 30, June 30, September 30, and December 30 of each year, commencing on March 30, 2025. On December 31, 2024, the interest rate on the 2029 subordinated notes yielded 6.840%. The 2029 subordinated notes may be redeemed by the Company, in whole or in part, on any interest payment date after December 30, 2024, at a price equal to the total principal amount plus any accrued and unpaid interest thereon to, but excluding the redemption date, or upon the occurrence of certain specified events. 2030 Subordinated Notes. The Company 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 in 2022. The 2030 subordinated notes were issued by Sterling on October 30, 2020, and are not convertible or exchangeable. Prior to November 1, 2025, the interest rate is fixed at 3.875% and payable semi-annually in arrears on May 1 and November 1 of each year. On and after 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 February 1, May 1, August 1, and November 1 of each year, commencing on February 1, 2026. The 2030 subordinated notes may be redeemed by the Company, in whole or in part, on November 1, 2025, or any interest payment date thereafter, at a price equal to the total principal amount plus any accrued and unpaid interest thereon to, but excluding the redemption date, or upon the occurrence of certain specified events. 2033 Junior Subordinated Notes. On September 17, 2003, the Company issued $77.3 million in aggregate principal amount of floating rate junior subordinated notes due September 17, 2033 (the 2033 junior subordinates notes). The 2033 junior subordinates notes are held in Webster Statutory Trust I, a statutory business trust which was created for the purpose of issuing trust preferred securities. Additional information regarding the Webster Statutory Trust I can be found in Note 15: Variable Interest Entities. The 2033 junior subordinates notes are not convertible or exchangeable, and interest is payable quarterly in arrears on March 17, June 17, September 17, and December 17 of each year. The interest rate on the 2033 junior subordinates notes varies quarterly based on 3-month SOFR plus a credit spread adjustment plus a market spread of 2.95%, which yielded 7.56% and 8.59% at December 31, 2024, and 2023, respectively. The 2033 junior subordinated notes may be redeemed by the Company quarterly, in whole or in part, at a price equal to the total principal amount to be redeemed plus any accrued and unpaid interest thereon to the redemption date.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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