Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At March 31, At December 31, 2017 Residential $ 4,459,862 $ 4,490,878 Consumer 2,522,380 2,590,225 Commercial 5,759,124 5,368,694 Commercial Real Estate 4,544,831 4,523,828 Equipment Financing 519,378 550,233 Loans and leases (1) (2) $ 17,805,575 $ 17,523,858 (1) Loans and leases include net deferred fees and net premiums/discounts of $17.9 million and $20.6 million at March 31, 2018 and December 31, 2017 , respectively. (2) At March 31, 2018 the Company had pledged $6.6 billion of eligible residential, consumer, and commercial loans as collateral to support borrowing capacity at the Federal Home Loan Bank (FHLB) Boston and the Federal Reserve Bank (FRB) of Boston. Loans and Leases Aging The following tables summarize the aging of loans and leases: At March 31, 2018 (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 $ 13,829 $ 3,571 $ — $ 44,574 $ 61,974 $ 4,397,888 $ 4,459,862 Consumer: Home equity 8,951 5,627 — 35,894 50,472 2,239,473 2,289,945 Other consumer 2,008 1,061 — 1,614 4,683 227,752 232,435 Commercial: Commercial non-mortgage 1,526 236 604 42,990 45,356 4,839,497 4,884,853 Asset-based — — — 1,534 1,534 872,737 874,271 Commercial real estate: Commercial real estate 508 603 245 3,889 5,245 4,343,274 4,348,519 Commercial construction — — — — — 196,312 196,312 Equipment financing 2,840 156 — 3,668 6,664 512,714 519,378 Total $ 29,662 $ 11,254 $ 849 $ 134,163 $ 175,928 $ 17,629,647 $ 17,805,575 At December 31, 2017 (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 $ 8,643 $ 5,146 $ — $ 44,481 $ 58,270 $ 4,432,608 $ 4,490,878 Consumer: Home equity 12,668 5,770 — 35,645 54,083 2,298,185 2,352,268 Other consumer 2,556 1,444 — 1,707 5,707 232,250 237,957 Commercial: Commercial non-mortgage 5,212 603 644 39,214 45,673 4,488,242 4,533,915 Asset-based — — — 589 589 834,190 834,779 Commercial real estate: Commercial real estate 478 77 248 4,484 5,287 4,238,987 4,244,274 Commercial construction — — — — — 279,554 279,554 Equipment financing 1,732 626 — 393 2,751 547,482 550,233 Total $ 31,289 $ 13,666 $ 892 $ 126,513 $ 172,360 $ 17,351,498 $ 17,523,858 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 $2.1 million and $3.1 million for the three months ended March 31, 2018 and 2017 , 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 allowance for loan and lease losses (ALLL): At or for the three months ended March 31, 2018 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 19,058 $ 36,190 $ 89,533 $ 49,407 $ 5,806 $ 199,994 Provision (benefit) charged to expense 251 1,680 7,420 2,104 (455 ) 11,000 Charge-offs (917 ) (5,074 ) (1,497 ) (77 ) (45 ) (7,610 ) Recoveries 385 1,443 117 2 18 1,965 Balance, end of period $ 18,777 $ 34,239 $ 95,573 $ 51,436 $ 5,324 $ 205,349 Individually evaluated for impairment $ 4,574 $ 1,579 $ 11,166 $ 257 $ 21 $ 17,597 Collectively evaluated for impairment $ 14,203 $ 32,660 $ 84,407 $ 51,179 $ 5,303 $ 187,752 Loan and lease balances: Individually evaluated for impairment $ 111,937 $ 42,587 $ 76,573 $ 10,928 $ 6,455 $ 248,480 Collectively evaluated for impairment 4,347,925 2,479,793 5,682,551 4,533,903 512,923 17,557,095 Loans and leases $ 4,459,862 $ 2,522,380 $ 5,759,124 $ 4,544,831 $ 519,378 $ 17,805,575 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 (Benefit) provision 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 Impaired Loans and Leases The following tables summarize impaired loans and leases: At March 31, 2018 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 122,063 $ 111,937 $ 70,143 $ 41,794 $ 4,574 Consumer - home equity 47,452 42,587 32,408 10,179 1,579 Commercial : Commercial non-mortgage 83,660 75,039 30,078 44,961 11,166 Asset-based 4,282 1,534 1,534 — — Commercial real estate: Commercial real estate 11,690 10,928 6,305 4,623 257 Commercial construction 212 — — — — Equipment financing 6,465 6,455 5,999 456 21 Total $ 275,824 $ 248,480 $ 146,467 $ 102,013 $ 17,597 At December 31, 2017 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 125,352 $ 114,295 $ 69,759 $ 44,536 $ 4,805 Consumer - home equity 50,809 45,436 34,418 11,018 1,668 Commercial : Commercial non-mortgage 79,900 71,882 27,313 44,569 9,786 Asset-based 3,272 589 589 — — Commercial real estate: Commercial real estate 11,994 11,226 6,387 4,839 272 Commercial construction — — — — — Equipment financing 3,409 3,325 2,932 393 23 Total $ 274,736 $ 246,753 $ 141,398 $ 105,355 $ 16,554 The following table summarizes the average recorded investment and interest income recognized for impaired loans and leases: Three months ended March 31, 2018 2017 (In thousands) Average Recorded Investment Accrued Cash Basis Interest Income Average Recorded Investment Accrued Cash Basis Interest Income Residential $ 113,116 $ 981 $ 253 $ 120,200 $ 1,070 $ 415 Consumer - home equity 44,011 294 250 46,500 322 313 Commercial Commercial Non-Mortgage 73,461 539 — 69,921 222 — Asset based 1,061 — — — — — Commercial real estate: Commercial real estate 11,077 96 — 23,170 135 — Commercial construction — — — 1,184 12 — Equipment financing 4,890 36 — 6,284 71 — Total $ 247,616 $ 1,946 $ 503 $ 267,259 $ 1,832 $ 728 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 default (PD) and the loss given default (LGD). 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 March 31, At December 31, At March 31, At December 31, At March 31, At December 31, (1) - (6) Pass $ 5,337,985 $ 5,048,162 $ 4,384,598 $ 4,355,916 $ 493,311 $ 525,105 (7) Special Mention 210,164 104,594 44,742 62,065 7,119 8,022 (8) Substandard 201,959 206,883 115,491 105,847 18,948 17,106 (9) Doubtful 9,016 9,055 — — — — Total $ 5,759,124 $ 5,368,694 $ 4,544,831 $ 4,523,828 $ 519,378 $ 550,233 For residential and consumer loans, the primary credit quality indicator that the Company considers is past due status. Other factors, such as, updated Fair Isaac Corporation (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 may also be evaluated. On an ongoing basis for portfolio monitoring purposes, the Company estimates the current value of property secured as collateral for 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 real estate price 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 troubled debt restructurings (TDRs): (Dollars in thousands) At March 31, At December 31, 2017 Accrual status $ 141,608 $ 147,113 Non-accrual status 77,930 74,291 Total recorded investment of TDRs $ 219,538 $ 221,404 Specific reserves for TDRs included in the balance of ALLL $ 13,874 $ 12,384 Additional funds committed to borrowers in TDR status 3,347 2,736 For the portion of TDRs deemed to be uncollectible, Webster charged off $0.7 million , and $2.0 million for the three months ended March 31, 2018 and 2017 , respectively. The following table provides information on the type of concession for loans and leases modified as TDRs: Three months ended March 31, 2018 2017 Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential: Extended Maturity — $ — 5 $ 970 Maturity/Rate Combined — — 3 492 Other (2) 5 757 19 2,938 Consumer - home equity Extended Maturity 2 193 2 39 Maturity/Rate Combined 2 113 7 1,983 Other (2) 11 778 33 2,193 Commercial non - mortgage Extended Maturity 3 85 2 35 Other (2) 2 4,684 1 4 Commercial real estate: Extended Maturity 1 45 — — Total TDRs 26 $ 6,655 72 $ 8,654 (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. There were no significant amounts of loans and leases modified as TDRs within the previous 12 months and for which there was a payment default for the three months ended March 31, 2018 or 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, 2018 At December 31, 2017 (1) - (6) Pass $ 8,591 $ 8,268 (7) Special Mention 349 355 (8) Substandard 56,074 53,050 (9) Doubtful — — Total $ 65,014 $ 61,673 |