Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At March 31, 2016 At December 31, 2015 Residential $ 4,109,243 $ 4,061,001 Consumer 2,726,869 2,702,560 Commercial 4,378,760 4,315,999 Commercial Real Estate 4,046,911 3,991,649 Equipment Financing 596,572 600,526 Loans and leases (1) $ 15,858,355 $ 15,671,735 (1) Loans and leases include net deferred fees and net premiums and discounts of $19.9 million and $18.0 million at March 31, 2016 and December 31, 2015 , respectively. At March 31, 2016 , the Company had pledged $6.1 billion of eligible loan collateral to support borrowing capacity at the Federal Home Loan Bank of Boston ("FHLB") and the Federal Reserve Bank of Boston ("FRB"). Loans and Leases Portfolio Aging The following tables summarize the aging of loans and leases: At March 31, 2016 (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 Current Total Loans Residential $ 8,100 $ 2,375 $ 1,354 $ 53,805 $ 65,634 $ 4,043,609 $ 4,109,243 Consumer: Home equity 6,837 4,585 — 37,534 48,956 2,386,085 2,435,041 Other consumer 1,140 706 — 778 2,624 289,204 291,828 Commercial: Commercial non-mortgage 1,461 5,808 2,038 32,482 41,789 3,565,387 3,607,176 Asset-based — — — — — 771,584 771,584 Commercial real estate: Commercial real estate 19,843 889 — 11,948 32,680 3,774,029 3,806,709 Commercial construction — — — 3,460 3,460 236,742 240,202 Equipment financing 176 418 — 868 1,462 595,110 596,572 Total $ 37,557 $ 14,781 $ 3,392 $ 140,875 $ 196,605 $ 15,661,750 $ 15,858,355 At December 31, 2015 (In thousands) 30-59 Days 60-89 Days Past Due and Accruing 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current Total Loans 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 Interest on non-accrual loans and leases that would have been recorded as additional interest income for the three months ended March 31, 2016 and 2015 , had the loans and leases been current in accordance with their original terms, totaled $3.0 million and $2.8 million , respectively. Allowance for Loan and Lease Losses The following tables summarize the allowance for loan and lease losses: At or for the three months ended March 31, 2016 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance, beginning of period $ 25,876 $ 42,052 $ 66,686 $ 34,889 $ 5,487 $ 174,990 Provision (benefit) charged to expense 2,327 2,791 10,536 (119 ) 65 15,600 Charge-offs (1,594 ) (4,421 ) (11,208 ) (1,526 ) (151 ) (18,900 ) Recoveries 721 1,214 457 74 45 2,511 Balance, end of period $ 27,330 $ 41,636 $ 66,471 $ 33,318 $ 5,446 $ 174,201 Individually evaluated for impairment $ 10,044 $ 3,037 $ 3,235 $ 2,022 $ 42 $ 18,380 Collectively evaluated for impairment $ 17,286 $ 38,599 $ 63,236 $ 31,296 $ 5,404 $ 155,821 Loan and lease balances: Individually evaluated for impairment $ 130,133 $ 48,096 $ 64,847 $ 35,619 $ 1,012 $ 279,707 Collectively evaluated for impairment 3,979,110 2,678,773 4,313,913 4,011,292 595,560 15,578,648 Loans and leases $ 4,109,243 $ 2,726,869 $ 4,378,760 $ 4,046,911 $ 596,572 $ 15,858,355 At or for the three months ended March 31, 2015 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance, beginning of period $ 25,452 $ 43,518 $ 52,114 $ 32,102 $ 6,078 $ 159,264 Provision (benefit) charged to expense 4,144 2,232 2,754 1,398 (778 ) 9,750 Charge-offs (1,955 ) (4,296 ) (255 ) (3,153 ) (15 ) (9,674 ) Recoveries 108 1,162 1,015 202 143 2,630 Balance, end of period $ 27,749 $ 42,616 $ 55,628 $ 30,549 $ 5,428 $ 161,970 Individually evaluated for impairment $ 14,350 $ 4,255 $ 4,939 $ 3,668 $ 28 $ 27,240 Collectively evaluated for impairment $ 13,399 $ 38,361 $ 50,689 $ 26,881 $ 5,400 $ 134,730 Loan and lease balances: Individually evaluated for impairment $ 140,362 $ 50,719 $ 49,311 $ 72,850 $ 631 $ 313,873 Collectively evaluated for impairment 3,453,910 2,518,718 3,850,499 3,590,221 543,005 13,956,353 Loans and leases $ 3,594,272 $ 2,569,437 $ 3,899,810 $ 3,663,071 $ 543,636 $ 14,270,226 Impaired Loans and Leases The following tables summarize impaired loans and leases: At March 31, 2016 (In thousands) Unpaid Principal Balance Total (1) Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 143,159 $ 130,133 $ 22,191 $ 107,942 $ 10,044 Consumer 53,210 48,096 24,806 23,290 3,037 Commercial 83,347 64,847 38,119 26,728 3,235 Commercial real estate: Commercial real estate 31,686 29,657 14,687 14,970 2,019 Commercial construction 7,010 5,962 5,940 22 3 Equipment financing 1,307 1,012 — 1,012 42 Total $ 319,719 $ 279,707 $ 105,743 $ 173,964 $ 18,380 At December 31, 2015 (In thousands) Unpaid Principal Balance Total (1) Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 148,144 $ 134,448 $ 23,024 $ 111,424 $ 10,364 Consumer 56,680 48,425 25,130 23,295 3,477 Commercial 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 The following table summarizes the average recorded investment and interest income recognized for impaired loans and leases: Three months ended March 31, 2016 2015 (In thousands) Average Recorded Investment Accrued Cash Basis Interest Income Average Recorded Investment Accrued Cash Basis Interest Income Residential $ 132,291 $ 1,115 $ 317 $ 141,625 $ 1,059 $ 256 Consumer 48,261 349 259 50,604 361 282 Commercial 60,714 472 — 43,037 427 — Commercial real estate: Commercial real estate 31,495 148 — 81,637 530 — Commercial construction 5,962 35 — 6,171 33 — Equipment financing 717 1 — 632 11 — Total $ 279,440 $ 2,120 $ 576 $ 323,706 $ 2,421 $ 538 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 summarizes commercial, commercial real estate and equipment financing loans and leases segregated by risk rating exposure: Commercial Commercial Real Estate Equipment Financing (In thousands) At March 31, At December 31, At March 31, At December 31, At March 31, At December 31, (1) - (6) Pass $ 4,060,128 $ 4,023,255 $ 3,897,741 $ 3,857,019 $ 574,782 $ 586,445 (7) Special Mention 101,340 70,904 36,700 55,030 8,234 1,628 (8) Substandard 216,098 220,389 112,165 79,289 13,556 12,453 (9) Doubtful 1,194 1,451 305 311 — — Total $ 4,378,760 $ 4,315,999 $ 4,046,911 $ 3,991,649 $ 596,572 $ 600,526 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 ("TDRs") The following table summarizes information for TDRs: (Dollars in thousands) At March 31, 2016 At December 31, 2015 Accrual status $ 172,036 $ 171,784 Non-accrual status 85,624 100,906 Total recorded investment of TDRs (1) $ 257,660 $ 272,690 Accruing TDRs performing under modified terms more than one year 55.2 % 55.0 % Specific reserves for TDRs included in the balance of allowance for loan and lease losses $ 16,123 $ 21,405 Additional funds committed to borrowers in TDR status 1,700 1,133 (1) Total recorded investment of TDRs excludes $1.0 million and $1.1 million of accrued interest receivable at March 31, 2016 and December 31, 2015 , respectively. In the three months ended March 31, 2016 and 2015 , Webster charged off $11.6 million and $3.9 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: Three months ended March 31, 2016 2015 Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential: Extended Maturity 5 $ 664 9 $ 1,345 Adjusted Interest Rate 1 236 — — Maturity/Rate Combined — — 10 1,668 Other (2) 7 1,415 3 536 Consumer: Extended Maturity 1 99 4 499 Adjusted Interest Rate — — — — Maturity/Rate Combined 4 300 8 444 Other (2) 7 338 21 1,332 Commercial: Extended Maturity 9 14,649 1 33 Adjusted Interest Rate — — — — Maturity/Rate Combined 1 4 2 132 Other (2) 4 310 — — Commercial real estate: Extended Maturity — — — — Maturity/Rate Combined 1 44 — — Other (2) 1 509 — — Equipment Financing Extended Maturity 1 4 — — Total TDRs 42 $ 18,572 58 $ 5,989 (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: Three months ended March 31, 2016 2015 (Dollars in thousands) Number of Loans and Leases Recorded Investment Number of Loans and Leases Recorded Investment Residential 3 $ 699 3 $ 642 Consumer 2 90 2 251 Commercial 9 12,587 2 6,317 Commercial real estate 1 405 1 10,930 Total 15 $ 13,781 8 $ 18,140 The recorded investment of TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: (In thousands) At March 31, 2016 At December 31, 2015 (1) - (6) Pass $ 12,197 $ 12,970 (7) Special Mention 2,959 2,999 (8) Substandard 64,008 72,132 (9) Doubtful 268 1,717 Total $ 79,432 $ 89,818 |