Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At March 31, At December 31, 2016 Residential $ 4,290,685 $ 4,254,682 Consumer 2,634,063 2,684,500 Commercial 5,019,383 4,940,931 Commercial Real Estate 4,530,507 4,510,846 Equipment Financing 619,861 635,629 Loans and leases (1) (2) $ 17,094,499 $ 17,026,588 (1) Loans and leases include net deferred fees and net premiums/discounts of $19.7 million and $17.3 million at March 31, 2017 and December 31, 2016 , respectively. (2) At March 31, 2017 , the Company had pledged $6.3 billion of eligible residential, consumer and commercial loans as collateral to support borrowing capacity at the FHLB Boston and the FRB of Boston. Loans and Leases Portfolio Aging The following tables summarize the aging of loans and leases: At March 31, 2017 (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 $ 5,994 $ 5,559 $ — $ 46,871 $ 58,424 $ 4,232,261 $ 4,290,685 Consumer: Home equity 7,669 3,735 — 40,906 52,310 2,316,659 2,368,969 Other consumer 1,997 1,382 — 1,203 4,582 260,512 265,094 Commercial: Commercial non-mortgage 1,048 644 747 74,257 76,696 4,094,550 4,171,246 Asset-based — — — — — 848,137 848,137 Commercial real estate: Commercial real estate 1,942 130 — 9,163 11,235 4,105,334 4,116,569 Commercial construction — — — 642 642 413,296 413,938 Equipment financing 751 547 — 703 2,001 617,860 619,861 Total $ 19,401 $ 11,997 $ 747 $ 173,745 $ 205,890 $ 16,888,609 $ 17,094,499 At December 31, 2016 (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 $ 8,631 $ 2,609 $ — $ 47,279 $ 58,519 $ 4,196,163 $ 4,254,682 Consumer: Home equity 8,831 5,782 — 35,926 50,539 2,359,354 2,409,893 Other consumer 2,233 1,485 — 1,663 5,381 269,226 274,607 Commercial: Commercial non-mortgage 1,382 577 749 38,190 40,898 4,094,727 4,135,625 Asset-based — — — — — 805,306 805,306 Commercial real estate: Commercial real estate 6,357 1,816 — 9,871 18,044 4,117,742 4,135,786 Commercial construction — — — 662 662 374,398 375,060 Equipment financing 903 693 — 225 1,821 633,808 635,629 Total $ 28,337 $ 12,962 $ 749 $ 133,816 $ 175,864 $ 16,850,724 $ 17,026,588 Interest on non-accrual loans and leases that would have been recorded as additional interest income for the three months ended March 31, 2017 and 2016 , had the loans and leases been current in accordance with their original terms, totaled $3.1 million and $3.0 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 three months ended March 31, 2017 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 23,226 $ 45,233 $ 71,905 $ 47,477 $ 6,479 $ 194,320 Provision (benefit) charged to expense (2,467 ) 5,326 4,250 3,345 46 10,500 Charge-offs (732 ) (6,474 ) (123 ) (102 ) (185 ) (7,616 ) Recoveries 237 1,323 322 7 14 1,903 Balance, end of period $ 20,264 $ 45,408 $ 76,354 $ 50,727 $ 6,354 $ 199,107 Individually evaluated for impairment $ 6,981 $ 2,605 $ 11,564 $ 256 $ 5 $ 21,411 Collectively evaluated for impairment $ 13,283 $ 42,803 $ 64,790 $ 50,471 $ 6,349 $ 177,696 Loan and lease balances: Individually evaluated for impairment $ 120,976 $ 47,281 $ 86,805 $ 23,954 $ 6,148 $ 285,164 Collectively evaluated for impairment 4,169,709 2,586,782 4,932,578 4,506,553 613,713 16,809,335 Loans and leases $ 4,290,685 $ 2,634,063 $ 5,019,383 $ 4,530,507 $ 619,861 $ 17,094,499 At or for the three months ended March 31, 2016 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: 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 Impaired Loans and Leases The following tables summarize impaired loans and leases: At March 31, 2017 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 132,986 $ 120,976 $ 21,355 $ 99,621 $ 6,981 Consumer 52,545 47,281 22,845 24,436 2,605 Commercial 95,269 86,805 24,328 62,477 11,564 Commercial real estate: Commercial real estate 23,407 22,772 18,962 3,810 157 Commercial construction 1,188 1,182 688 494 99 Equipment financing 6,194 6,148 6,005 143 5 Total $ 311,589 $ 285,164 $ 94,183 $ 190,981 $ 21,411 At December 31, 2016 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 131,468 $ 119,424 $ 21,068 $ 98,356 $ 8,090 Consumer 52,432 45,719 22,746 22,973 2,903 Commercial 57,732 53,037 26,006 27,031 7,422 Commercial real estate: Commercial real estate 24,146 23,568 19,591 3,977 169 Commercial construction 1,188 1,187 1,187 — — Equipment financing 6,398 6,420 6,197 223 9 Total $ 273,364 $ 249,355 $ 96,795 $ 152,560 $ 18,593 The following table summarizes the average recorded investment and interest income recognized for impaired loans and leases: Three months ended March 31, 2017 2016 (In thousands) Average Recorded Investment Accrued Cash Basis Interest Income Average Recorded Investment Accrued Cash Basis Interest Income Residential $ 120,200 $ 1,070 $ 415 $ 132,291 $ 1,115 $ 317 Consumer 46,500 322 313 48,261 349 259 Commercial 69,921 222 — 60,714 472 — Commercial real estate: Commercial real estate 23,170 135 — 31,495 148 — Commercial construction 1,184 12 — 5,962 35 — Equipment financing 6,284 71 — 717 1 — Total $ 267,259 $ 1,832 $ 728 $ 279,440 $ 2,120 $ 576 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. 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 Composite Credit Risk Profile 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 considered 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 a borrower's current financial position and outlook, risk profile, and the related collateral and structural position. 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 $ 4,728,817 $ 4,655,007 $ 4,331,615 $ 4,357,458 $ 602,108 $ 618,084 (7) Special Mention 57,136 56,240 109,932 69,023 1,716 1,324 (8) Substandard 215,451 226,603 81,456 84,365 16,037 16,221 (9) Doubtful 17,979 3,081 7,504 — — — Total $ 5,019,383 $ 4,940,931 $ 4,530,507 $ 4,510,846 $ 619,861 $ 635,629 For residential and consumer loans, the Company considers factors such as past due status, updated FICO scores, employment status, collateral, 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 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: (Dollars in thousands) At March 31, At December 31, 2016 Accrual status $ 145,073 $ 147,809 Non-accrual status 80,988 75,719 Total recorded investment of TDRs $ 226,061 $ 223,528 Accruing TDRs performing under modified terms more than one year 57.0 % 57.1 % Specific reserves for TDRs included in the balance of ALLL $ 13,248 $ 14,583 Additional funds committed to borrowers in TDR status 2,487 459 In the three months ended March 31, 2017 and 2016 , Webster charged off $2.0 million and $11.6 million , respectively, for the portion of TDRs deemed to be uncollectible. A TDR 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, 2017 2016 Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential: Extended Maturity 5 $ 970 5 $ 664 Adjusted Interest Rate — — 1 236 Maturity/Rate Combined 3 492 — — Other (2) 19 2,938 7 1,415 Consumer: Extended Maturity 2 39 1 99 Maturity/Rate Combined 7 1,983 4 300 Other (2) 33 2,193 7 338 Commercial: Extended Maturity 2 35 9 14,649 Maturity/Rate Combined — — 1 4 Other (2) 1 4 4 310 Commercial real estate: Maturity/Rate Combined — — 1 44 Other (2) — — 1 509 Equipment Financing Extended Maturity — — 1 4 Total TDRs 72 $ 8,654 42 $ 18,572 (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, 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, 2017 2016 (Dollars in thousands) Number of Loans and Leases (1) Recorded Investment (1) Number of Loans and Leases Recorded Investment Residential — $ — 3 $ 699 Consumer — — 2 90 Commercial — — 9 12,587 Commercial real estate — — 1 405 Total — $ — 15 $ 13,781 (1) There were no re-defaulted TDRs during the three months ended March 31, 2017 . 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, 2017 At December 31, 2016 (1) - (6) Pass $ 10,671 $ 10,210 (7) Special Mention 6 7 (8) Substandard 44,430 45,509 (9) Doubtful 2,697 2,738 Total $ 57,804 $ 58,464 |