Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At September 30, At December 31, 2016 Residential $ 4,499,441 $ 4,254,682 Consumer 2,566,983 2,684,500 Commercial 5,348,303 4,940,931 Commercial Real Estate 4,464,917 4,510,846 Equipment Financing 566,777 635,629 Loans and leases (1) (2) $ 17,446,421 $ 17,026,588 (1) Loans and leases include net deferred fees and net premiums/discounts of $20.8 million and $17.3 million at September 30, 2017 and December 31, 2016 , respectively. (2) At September 30, 2017 , the Company had pledged $6.7 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 Aging The following tables summarize the aging of loans and leases: At September 30, 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 $ 8,069 $ 3,654 $ — $ 45,676 $ 57,399 $ 4,442,042 $ 4,499,441 Consumer: Home equity 7,613 4,685 — 37,105 49,403 2,269,468 2,318,871 Other consumer 2,224 1,454 — 1,859 5,537 242,575 248,112 Commercial: Commercial non-mortgage 1,948 364 934 58,915 62,161 4,402,543 4,464,704 Asset-based — — — 8,558 8,558 875,041 883,599 Commercial real estate: Commercial real estate 1,347 444 — 10,603 12,394 4,161,572 4,173,966 Commercial construction — — — 477 477 290,474 290,951 Equipment financing 818 49 — 570 1,437 565,340 566,777 Total $ 22,019 $ 10,650 $ 934 $ 163,763 $ 197,366 $ 17,249,055 $ 17,446,421 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 had the loans and leases been current in accordance with the original terms totaled $2.8 million and $3.7 million for the three months ended September 30, 2017 and 2016 , respectively, and $6.4 million and $8.4 million for the nine months ended September 30, 2017 and 2016 , 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 September 30, 2017 Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 18,427 $ 42,488 $ 79,964 $ 52,402 $ 6,297 $ 199,578 (Benefit) provision charged to expense (348 ) (41 ) 12,166 (2,129 ) 502 10,150 Charge-offs (585 ) (6,197 ) (3,002 ) (749 ) (121 ) (10,654 ) Recoveries 280 1,894 466 10 79 2,729 Balance, end of period $ 17,774 $ 38,144 $ 89,594 $ 49,534 $ 6,757 $ 201,803 At or for the three months ended September 30, 2016 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 24,413 $ 42,956 $ 73,822 $ 33,622 $ 5,615 $ 180,428 Provision charged to expense 1,076 4,985 4,351 2,953 885 14,250 Charge-offs (1,304 ) (5,259 ) (2,561 ) — (300 ) (9,424 ) Recoveries 554 1,313 370 194 240 2,671 Balance, end of period $ 24,739 $ 43,995 $ 75,982 $ 36,769 $ 6,440 $ 187,925 At or for the nine months ended September 30, 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 (Benefit) provision charged to expense (4,436 ) 6,847 21,905 2,987 597 27,900 Charge-offs (1,940 ) (18,273 ) (5,321 ) (951 ) (425 ) (26,910 ) Recoveries 924 4,337 1,105 21 106 6,493 Balance, end of period $ 17,774 $ 38,144 $ 89,594 $ 49,534 $ 6,757 $ 201,803 Individually evaluated for impairment $ 4,925 $ 1,689 $ 10,844 $ 290 $ 38 $ 17,786 Collectively evaluated for impairment $ 12,849 $ 36,455 $ 78,750 $ 49,244 $ 6,719 $ 184,017 Loan and lease balances: Individually evaluated for impairment $ 116,706 $ 46,224 $ 85,385 $ 18,199 $ 3,642 $ 270,156 Collectively evaluated for impairment 4,382,735 2,520,759 5,262,918 4,446,718 563,135 17,176,265 Loans and leases $ 4,499,441 $ 2,566,983 $ 5,348,303 $ 4,464,917 $ 566,777 $ 17,446,421 At or for the nine months ended September 30, 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 charged to expense 991 12,458 25,447 3,921 1,033 43,850 Charge-offs (3,536 ) (14,236 ) (17,294 ) (2,521 ) (521 ) (38,108 ) Recoveries 1,408 3,721 1,143 480 441 7,193 Balance, end of period $ 24,739 $ 43,995 $ 75,982 $ 36,769 $ 6,440 $ 187,925 Individually evaluated for impairment $ 9,443 $ 3,005 $ 6,579 $ 467 $ 9 $ 19,503 Collectively evaluated for impairment $ 15,296 $ 40,990 $ 69,403 $ 36,302 $ 6,431 $ 168,422 Loan and lease balances: Individually evaluated for impairment $ 122,020 $ 46,208 $ 58,197 $ 24,423 $ 6,863 $ 257,711 Collectively evaluated for impairment 4,112,027 2,661,135 4,721,605 4,256,090 614,833 16,365,690 Loans and leases $ 4,234,047 $ 2,707,343 $ 4,779,802 $ 4,280,513 $ 621,696 $ 16,623,401 Impaired Loans and Leases The following tables summarize impaired loans and leases: At September 30, 2017 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 127,986 $ 116,706 $ 27,961 $ 88,745 $ 4,925 Consumer - home equity 51,496 46,225 21,833 24,392 1,689 Commercial : Commercial non-mortgage 88,221 76,827 28,124 48,703 10,844 Asset-based 8,558 8,558 8,558 — — Commercial real estate: Commercial real estate 19,026 17,725 12,894 4,831 271 Commercial construction 580 474 — 474 19 Equipment financing 3,721 3,642 3,004 638 38 Total $ 299,588 $ 270,157 $ 102,374 $ 167,783 $ 17,786 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 - home equity 52,432 45,719 22,746 22,973 2,903 Commercial : Commercial non-mortgage 57,732 53,037 26,006 27,031 7,422 Asset-based — — — — — 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 (In thousands) Average Recorded Investment Accrued Interest Income Cash Basis Interest Income Average Accrued Cash Basis Interest Income Average Recorded Investment Accrued Cash Basis Interest Income Average Recorded Investment Accrued Cash Basis Interest Income Residential $ 118,841 $ 1,027 $ 285 $ 124,993 $ 1,070 $ 304 $ 118,065 $ 3,133 $ 986 $ 128,234 $ 3,309 $ 918 Consumer - home equity 46,753 341 246 46,892 336 238 45,972 998 808 47,317 1,029 754 Commercial Commercial Non-Mortgage 81,816 249 — 58,874 352 — 64,932 704 — 57,389 1,299 — Asset based 4,279 — — — — — 4,279 — — — — Commercial real estate: Commercial real estate 20,249 96 — 23,930 77 — 20,647 329 — 26,689 374 — Commercial construction 828 — — 4,386 12 — 831 12 — 5,171 81 — Equipment financing 4,895 30 — 3,642 107 — 5,031 168 — 3,642 109 — Total $ 277,661 $ 1,743 $ 531 $ 262,717 $ 1,954 $ 542 $ 259,757 $ 5,344 $ 1,794 $ 268,442 $ 6,201 $ 1,672 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 ten grades, with each grade corresponding to a progressively greater risk of default. Grades (1) - (6) are considered pass ratings, and (7) - (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 (7) "Special Mention" credit has the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the asset. An (8) "Substandard" asset has a well defined weakness that jeopardizes the full repayment of the debt. An asset rated (9) "Doubtful" 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 (10) "Loss" 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 September 30, At December 31, At September 30, At December 31, At September 30, At December 31, (1) - (6) Pass $ 5,037,439 $ 4,655,007 $ 4,266,658 $ 4,357,458 $ 548,298 $ 618,084 (7) Special Mention 108,828 56,240 85,926 69,023 3,557 1,324 (8) Substandard 192,161 226,603 112,333 84,365 14,922 16,221 (9) Doubtful 9,875 3,081 — — — — Total $ 5,348,303 $ 4,940,931 $ 4,464,917 $ 4,510,846 $ 566,777 $ 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 September 30, At December 31, 2016 Accrual status $ 135,774 $ 147,809 Non-accrual status 82,576 75,719 Total recorded investment of TDRs $ 218,350 $ 223,528 Specific reserves for TDRs included in the balance of ALLL $ 11,837 $ 14,583 Additional funds committed to borrowers in TDR status 3,944 459 For the portion of TDRs deemed to be uncollectible, Webster charged off $0.4 million and $3.0 million for the three months ended September 30, 2017 and 2016 , respectively, and $3.0 million , and $17.9 million for the nine months ended September 30, 2017 and 2016 , respectively. The following table provides information on the type of concession for loans and leases modified as TDRs: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Number of Post- (1) Number of Post- (1) Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential: Extended Maturity — $ — 4 $ 967 9 $ 1,390 11 $ 1,969 Adjusted Interest Rate — — 1 292 2 335 2 528 Maturity/Rate Combined 4 570 3 290 9 1,416 10 1,185 Other (2) 6 1,357 3 299 32 5,471 18 3,190 Consumer - home equity Extended Maturity 2 158 2 89 8 822 9 381 Adjusted Interest Rate 1 247 — — 1 247 — — Maturity/Rate Combined 2 399 3 264 13 3,212 11 923 Other (2) 12 839 8 270 55 3,733 37 1,447 Commercial non - mortgage Extended Maturity — — 2 213 8 813 11 14,862 Maturity/Rate Combined 8 299 — — 13 9,153 2 648 Other (2) — — 4 1,265 1 4 11 1,639 Commercial real estate: Extended Maturity — — 1 109 — — 1 109 Maturity/Rate Combined — — 1 291 — — 2 335 Other (2) — — — — — — 1 509 Equipment Financing Extended Maturity — — 6 6,638 — — 7 6,642 Total TDRs 35 $ 3,869 38 $ 10,987 151 $ 26,596 133 $ 34,367 (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. Loans and leases modified as TDRs within the previous 12 months and for which there was a payment default, consisted of one residential loan with a recorded investment of $248 thousand for both the three and nine months ended September 30, 2017. There were no such loans and leases for both the three and nine months ended September 30, 2016. The recorded investment of TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: (In thousands) At September 30, 2017 At December 31, 2016 (1) - (6) Pass $ 8,902 $ 10,210 (7) Special Mention 360 7 (8) Substandard 46,157 45,509 (9) Doubtful — 2,738 Total $ 55,419 $ 58,464 |