Loans and Leases | Loans and Leases The following table summarizes loans and leases: At December 31, (In thousands) 2015 2014 Residential $ 4,061,001 $ 3,509,175 Consumer 2,702,560 2,549,401 Commercial 4,315,999 3,749,270 Commercial Real Estate 3,991,649 3,554,428 Equipment Financing 600,526 537,751 Loans and leases (1)(2) $ 15,671,735 $ 13,900,025 (1) Loan and lease balances include net deferred fees and unamortized premiums of $18.0 million and $10.6 million at December 31, 2015 and December 31, 2014 , respectively. (2) Accrued interest of $43.1 million and $38.4 million at December 31, 2015 and December 31, 2014 , respectively, are not included in the loan and lease balances. At December 31, 2015 , the Company had pledged $6.1 billion of eligible loans as collateral to support available borrowing capacity at the Federal Home Loan Bank of Boston and the Federal Reserve Bank of Boston. Loans and Leases Portfolio Aging The following tables summarize the aging of loans and leases: At December 31, 2015 (In thousands) 30-59 Days Past Due and Accruing 60-89 Days 90 or More Days Past Due and Accruing Non-accrual Total Past Due and Non-accrual (1) Current Total Loans and Leases Residential $ 10,365 $ 4,703 $ 2,029 $ 54,201 $ 71,298 $ 3,989,703 $ 4,061,001 Consumer: Home equity 9,061 4,242 — 37,337 50,640 2,402,758 2,453,398 Other consumer 1,390 615 — 560 2,565 246,597 249,162 Commercial: Commercial non-mortgage 768 3,288 22 27,037 31,115 3,531,669 3,562,784 Asset-based — — — — — 753,215 753,215 Commercial real estate: Commercial real estate 1,624 625 — 16,767 19,016 3,673,408 3,692,424 Commercial construction — — — 3,461 3,461 295,764 299,225 Equipment financing 543 59 — 706 1,308 599,218 600,526 Total $ 23,751 $ 13,532 $ 2,051 $ 140,069 $ 179,403 $ 15,492,332 $ 15,671,735 At December 31, 2014 (In thousands) 30-59 Days Past Due and Accruing 60-89 Days 90 or More Days Past Due and Accruing Non-accrual Total Past Due and Non-accrual (1) Current Total Loans and Leases Residential (2) $ 11,410 $ 5,840 $ 2,039 $ 64,117 $ 83,406 $ 3,425,769 $ 3,509,175 Consumer: Home equity 11,393 5,076 — 40,026 56,495 2,417,275 2,473,770 Other consumer 704 410 — 281 $ 1,395 74,236 75,631 Commercial: Commercial non-mortgage 1,948 153 48 6,449 8,598 3,079,342 3,087,940 Asset-based — — — — — 661,330 661,330 Commercial real estate: Commercial real estate 2,325 392 — 15,038 17,755 3,302,652 3,320,407 Commercial construction — — — 3,659 3,659 230,362 234,021 Equipment financing 551 150 — 578 1,279 536,472 537,751 Total $ 28,331 $ 12,021 $ 2,087 $ 130,148 $ 172,587 $ 13,727,438 $ 13,900,025 (1) Loans and leases 30 days or more days past due and accruing exclude $0.6 million and $0.5 million of accrued interest receivable at December 31, 2015 and December 31, 2014 , respectively. (2) U.S. Government guaranteed loans of approximately $2.0 million were reclassified from non-accrual to over 90 days past due and accruing reflective of a policy change effective in the first quarter of 2015 . Interest on non-accrual loans and leases that would have been recorded as additional interest income for the years ended December 31, 2015 , 2014 , and 2013 , had the loans and leases been current in accordance with their original terms, totaled $8.2 million , $9.3 million , and $11.4 million , respectively. Allowance for Loan and Lease Losses The following tables summarize the activity in, as well as the loan and lease balances that were evaluated for, the ALLL: At or for the Year ended December 31, 2015 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2015 $ 25,452 $ 43,518 $ 52,114 $ 32,102 $ 6,078 $ 159,264 Provision (benefit) charged to expense 6,057 11,847 23,356 9,718 (1,678 ) 49,300 Losses charged off (6,508 ) (17,679 ) (11,522 ) (7,578 ) (273 ) (43,560 ) Recoveries 875 4,366 2,738 647 1,360 9,986 Balance at December 31, 2015 $ 25,876 $ 42,052 $ 66,686 $ 34,889 $ 5,487 $ 174,990 Individually evaluated for impairment $ 10,364 $ 3,477 $ 5,197 $ 3,163 $ 3 $ 22,204 Collectively evaluated for impairment $ 15,512 $ 38,575 $ 61,489 $ 31,726 $ 5,484 $ 152,786 Loan and lease balances: Individually evaluated for impairment $ 134,448 $ 48,425 $ 56,581 $ 39,295 $ 422 $ 279,171 Collectively evaluated for impairment 3,926,553 2,654,135 4,259,418 3,952,354 600,104 15,392,564 Loans and leases $ 4,061,001 $ 2,702,560 $ 4,315,999 $ 3,991,649 $ 600,526 $ 15,671,735 At or for the Year ended December 31, 2014 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2014 $ 23,027 $ 41,951 $ 51,001 $ 32,408 $ 4,186 $ 152,573 Provision (benefit) charged to expense 7,315 17,224 10,412 2,046 253 37,250 Losses charged off (6,214 ) (20,712 ) (13,668 ) (3,237 ) (595 ) (44,426 ) Recoveries 1,324 5,055 4,369 885 2,234 13,867 Balance at December 31, 2014 $ 25,452 $ 43,518 $ 52,114 $ 32,102 $ 6,078 $ 159,264 Individually evaluated for impairment $ 12,094 $ 4,237 $ 2,710 $ 6,232 $ 28 $ 25,301 Collectively evaluated for impairment $ 13,358 $ 39,281 $ 49,404 $ 25,870 $ 6,050 $ 133,963 Loan and lease balances: Individually evaluated for impairment $ 141,982 $ 50,249 $ 36,176 $ 101,817 $ 632 $ 330,856 Collectively evaluated for impairment 3,367,193 2,499,152 3,713,094 3,452,611 537,119 13,569,169 Loans and leases $ 3,509,175 $ 2,549,401 $ 3,749,270 $ 3,554,428 $ 537,751 $ 13,900,025 At or for the Year ended December 31, 2013 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2013 $ 32,030 $ 56,995 $ 50,562 $ 33,210 $ 4,332 $ 177,129 Provision (benefit) charged to expense 1,187 7,808 14,442 12,975 (2,912 ) 33,500 Losses charged off (11,592 ) (29,037 ) (19,126 ) (15,425 ) (279 ) (75,459 ) Recoveries 1,402 6,185 5,123 1,648 3,045 17,403 Balance at December 31, 2013 $ 23,027 $ 41,951 $ 51,001 $ 32,408 $ 4,186 $ 152,573 Individually evaluated for impairment $ 10,535 $ 4,595 $ 1,878 $ 3,445 $ — $ 20,453 Collectively evaluated for impairment $ 12,492 $ 37,356 $ 49,123 $ 28,963 $ 4,186 $ 132,120 Loan and lease balances: Individually evaluated for impairment $ 142,413 $ 52,092 $ 52,018 $ 104,808 $ 210 $ 351,541 Collectively evaluated for impairment 3,219,012 2,484,596 3,230,833 2,953,554 460,240 12,348,235 Loans and leases $ 3,361,425 $ 2,536,688 $ 3,282,851 $ 3,058,362 $ 460,450 $ 12,699,776 Impaired Loans and Leases The following tables summarize impaired loans and leases: At December 31, 2015 (In thousands) Unpaid Principal Balance Total Recorded Investment (1) Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential: 1-4 family $ 148,144 $ 134,448 $ 23,024 $ 111,424 $ 10,364 Consumer: Home equity 56,680 48,425 25,130 23,295 3,477 Commercial: Commercial non-mortgage 67,116 56,581 31,600 24,981 5,197 Commercial real estate: Commercial real estate 36,980 33,333 9,204 24,129 3,160 Commercial construction 7,010 5,962 5,939 23 3 Equipment financing 612 422 328 94 3 Total $ 316,542 $ 279,171 $ 95,225 $ 183,946 $ 22,204 At December 31, 2014 (In thousands) Unpaid Principal Balance Total Recorded Investment (1) Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential: 1-4 family $ 157,152 $ 141,982 $ 24,335 $ 117,647 $ 12,094 Consumer: Home equity 60,424 50,249 26,432 23,817 4,237 Commercial: Commercial non-mortgage 41,019 36,176 15,998 20,178 2,710 Commercial real estate: Commercial real estate 99,687 95,656 40,306 55,350 6,222 Commercial construction 7,218 6,161 5,940 221 10 Equipment financing 629 632 — 632 28 Total $ 366,129 $ 330,856 $ 113,011 $ 217,845 $ 25,301 (1) Total recorded investment of impaired loans and leases exclude $1.7 million and $1.4 million of accrued interest receivable at December 31, 2015 and December 31, 2014 , respectively. The following table summarizes the average recorded investment and interest income recognized for impaired loans and leases: Years ended December 31, 2015 2014 2013 (In thousands) Average Recorded Investment Accrued Interest Income Cash Basis Interest Income Average Recorded Investment Accrued Interest Income Cash Basis Interest Income Average Accrued Cash Basis Interest Income Residential $ 138,215 $ 4,473 $ 1,139 $ 142,198 $ 4,644 $ 1,221 $ 144,325 $ 4,119 $ 1,954 Consumer 49,337 1,451 1,099 51,171 1,484 1,203 53,318 1,003 1,724 Commercial 46,379 1,319 — 44,097 2,326 — 60,558 2,889 — Commercial real estate: Commercial real estate 64,495 1,165 — 93,209 3,429 — 105,676 4,476 — Commercial construction 6,062 133 — 8,381 269 — 15,254 620 — Equipment financing 527 16 — 421 28 — 1,284 22 — Total $ 305,015 $ 8,557 $ 2,238 $ 339,477 $ 12,180 $ 2,424 $ 380,415 $ 13,129 $ 3,678 Credit Quality Indicators. To measure credit risk for the commercial, commercial real estate, and equipment financing portfolios, the Company employs a dual grade credit risk grading system for estimating the probability of borrower default and the loss given default. The credit risk grade system assigns a rating to each borrower and to the facility, which together form a Composite Credit Risk Profile (“CCRP”). The credit risk grade system categorizes borrowers by common financial characteristics that measure the credit strength of borrowers and facilities by common structural characteristics. The CCRP has 10 grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 6 are considered pass ratings, and 7 through 10 are criticized as defined by the regulatory agencies. Risk ratings, assigned to differentiate risk within the portfolio, are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ current financial positions and outlooks, risk profiles, and the related collateral and structural positions. Loan officers review updated financial information on at least an annual basis for all pass rated loans to assess the accuracy of the risk grade. Criticized loans undergo more frequent reviews and enhanced monitoring. A “Special Mention” (7) credit has the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the asset. “Substandard” (8) assets have a well defined weakness that jeopardizes the full repayment of the debt. An asset rated “Doubtful” (9) has all of the same weaknesses as a substandard credit with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, improbable. Assets classified as “Loss” (10) in accordance with regulatory guidelines are considered uncollectible and charged off. The following table summarize commercial, commercial real estate and equipment financing loans and leases segregated by risk rating exposure: Commercial Commercial Real Estate Equipment Financing (In thousands) At December 31, At December 31, At December 31, At December 31, At December 31, At December 31, (1) - (6) Pass $ 4,023,255 $ 3,545,218 $ 3,857,019 $ 3,408,128 $ 586,445 $ 516,116 (7) Special Mention 70,904 88,777 55,030 33,453 1,628 4,364 (8) Substandard 220,389 115,106 79,289 112,354 12,453 17,271 (9) Doubtful 1,451 169 311 493 — — Total $ 4,315,999 $ 3,749,270 $ 3,991,649 $ 3,554,428 $ 600,526 $ 537,751 For residential and consumer loans, the Company considers factors such as past due status, updated FICO scores, employment status, home prices, loan to value, geography, loans discharged in bankruptcy, and the status of first lien position loans on second lien position loans as credit quality indicators. On an ongoing basis for portfolio monitoring purposes, the Company estimates the current value of property secured as collateral for both home equity and residential first mortgage lending products. The estimate is based on home price indices compiled by the S&P/Case-Shiller Home Price Indices. The Case-Shiller data indicates trends for Metropolitan Statistical Areas. The trend data is applied to the loan portfolios taking into account the age of the most recent valuation and geographic area. Troubled Debt Restructurings The following table summarizes information for TDRs: At December 31, (Dollars in thousands) 2015 2014 Accrual status $ 171,784 $ 241,855 Non-accrual status 100,906 76,939 Total recorded investment of TDRs (1) $ 272,690 $ 318,794 Accruing TDRs performing under modified terms more than one year 55.0 % 67.5 % Specific reserves for TDRs included in the balance of allowance for loan and lease losses $ 21,405 $ 23,785 Additional funds committed to borrowers in TDR status 1,133 552 (1) Total recorded investment of TDRs exclude $1.1 million and $1.4 million at December 31, 2015 and December 31, 2014 , respectively, of accrued interest receivable. For years ended December 31, 2015 , 2014 and 2013 , Webster charged off $11.8 million , $13.5 million , and $24.4 million , respectively, for the portion of TDRs deemed to be uncollectible. TDRs may be modified by means of extended maturity, below market adjusted interest rates, a combination of rate and maturity, or other means, including covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions. The following table provides information on the type of concession for loans and leases modified as TDRs: Years ended December 31, 2015 2014 2013 Number of Loans and Leases Post- Modification Recorded Investment (1) Number of Loans and Leases Post- Modification Recorded Investment (1) Number of Loans and Leases Post- Modification Recorded Investment (1) (Dollars in thousands) Residential: Extended Maturity 27 $ 4,909 27 $ 3,547 27 $ 5,219 Adjusted Interest rates 3 573 3 448 8 2,759 Combination Rate and Maturity 26 5,315 22 4,220 45 8,264 Other (2) 30 4,366 55 11,791 44 9,497 Consumer: Extended Maturity 12 1,012 19 944 24 1,159 Adjusted Interest rates — — 1 51 4 154 Combination Rate and Maturity 12 945 6 411 14 1,504 Other (2) 68 3,646 90 4,931 100 4,247 Commercial: Extended Maturity 3 254 7 422 3 7,525 Adjusted Interest rates 1 24 1 25 — — Combination Rate and Maturity 7 5,361 22 1,212 22 1,083 Other (2) 20 22,048 6 7,431 4 4,603 Commercial real estate: Extended Maturity 1 315 — — 3 226 Combination Rate and Maturity 1 42 2 11,106 6 15,520 Other (2) 1 405 — — 1 68 Equipment Financing Extended Maturity — — 1 492 — — Total 212 $ 49,215 262 $ 47,031 305 $ 61,828 (1) Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of the restructurings was not significant. (2) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, and/or other concessions. The following table provides information on loans and leases modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented: Years ended December 31, 2015 2014 2013 (Dollars in thousands) Number of Loans and Leases Recorded Investment Number of Loans and Leases Recorded Investment Number of Loans and Leases Recorded Investment Residential 1 $ 55 7 $ 1,494 9 $ 1,201 Consumer 1 3 2 24 4 339 Commercial — — — — 1 47 Commercial real estate — — — — — — Total 2 $ 58 9 $ 1,518 14 $ 1,587 The recorded investment of TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: At December 31, (In thousands) 2015 2014 (1) - (6) Pass $ 12,970 $ 40,734 (7) Special Mention 2,999 8,275 (8) Substandard 72,132 77,211 (9) Doubtful 1,717 343 Total $ 89,818 $ 126,563 |