Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At June 30, At December 31, 2017 Residential $ 4,455,580 $ 4,490,878 Consumer 2,485,695 2,590,225 Commercial 5,981,556 5,368,694 Commercial Real Estate 4,580,200 4,523,828 Equipment Financing 522,965 550,233 Loans and leases (1) (2) $ 18,025,996 $ 17,523,858 (1) Loans and leases include net deferred fees and net premiums/discounts of $16.4 million and $20.6 million at June 30, 2018 and December 31, 2017 , respectively. (2) At June 30, 2018 the Company had pledged $6.5 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 June 30, 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 $ 6,449 $ 4,449 $ — $ 50,780 $ 61,678 $ 4,393,902 $ 4,455,580 Consumer: Home equity 8,286 3,022 — 36,849 48,157 2,208,522 2,256,679 Other consumer 1,860 1,215 — 1,583 4,658 224,358 229,016 Commercial: Commercial non-mortgage 3,410 1,790 62 36,687 41,949 4,979,771 5,021,720 Asset-based — — — 1,160 1,160 958,676 959,836 Commercial real estate: Commercial real estate 720 — — 9,609 10,329 4,411,603 4,421,932 Commercial construction — — — — — 158,268 158,268 Equipment financing 1,991 331 — 3,510 5,832 517,133 522,965 Total $ 22,716 $ 10,807 $ 62 $ 140,178 $ 173,763 $ 17,852,233 $ 18,025,996 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 $2.4 million and $2.6 million for the three months ended June 30, 2018 and 2017 , respectively, and $4.3 million and $4.5 million for the six months ended June 30, 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 June 30, 2018 Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 18,777 $ 34,239 $ 95,573 $ 51,436 $ 5,324 $ 205,349 Provision charged to expense 659 813 4,490 4,428 110 10,500 Charge-offs (754 ) (4,907 ) (5,632 ) (40 ) (65 ) (11,398 ) Recoveries 325 1,614 909 9 14 2,871 Balance, end of period $ 19,007 $ 31,759 $ 95,340 $ 55,833 $ 5,383 $ 207,322 At or for the three months ended June 30, 2017 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 20,264 $ 45,408 $ 76,354 $ 50,727 $ 6,354 $ 199,107 (Benefit) provision charged to expense (1,621 ) 1,562 5,489 1,771 49 7,250 Charge-offs (623 ) (5,602 ) (2,196 ) (100 ) (119 ) (8,640 ) Recoveries 407 1,120 317 4 13 1,861 Balance, end of period $ 18,427 $ 42,488 $ 79,964 $ 52,402 $ 6,297 $ 199,578 At or for the six months ended June 30, 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 909 2,493 11,910 6,532 (344 ) 21,500 Charge-offs (1,671 ) (9,981 ) (7,129 ) (117 ) (110 ) (19,008 ) Recoveries 711 3,057 1,026 11 31 4,836 Balance, end of period $ 19,007 $ 31,759 $ 95,340 $ 55,833 $ 5,383 $ 207,322 Individually evaluated for impairment $ 4,330 $ 1,498 $ 6,007 $ 2,061 $ 18 $ 13,914 Collectively evaluated for impairment $ 14,677 $ 30,261 $ 89,333 $ 53,772 $ 5,365 $ 193,408 Loan and lease balances: Individually evaluated for impairment $ 109,636 $ 41,636 $ 87,071 $ 12,677 $ 6,185 $ 257,205 Collectively evaluated for impairment 4,345,944 2,444,059 5,894,485 4,567,523 516,780 17,768,791 Loans and leases $ 4,455,580 $ 2,485,695 $ 5,981,556 $ 4,580,200 $ 522,965 $ 18,025,996 At or for the six months ended June 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 (4,088 ) 6,888 9,739 5,116 95 17,750 Charge-offs (1,355 ) (12,076 ) (2,319 ) (202 ) (304 ) (16,256 ) Recoveries 644 2,443 639 11 27 3,764 Balance, end of period $ 18,427 $ 42,488 $ 79,964 $ 52,402 $ 6,297 $ 199,578 Individually evaluated for impairment $ 5,105 $ 1,829 $ 10,951 $ 324 $ 27 $ 18,236 Collectively evaluated for impairment $ 13,322 $ 40,659 $ 69,013 $ 52,078 $ 6,270 $ 181,342 Loan and lease balances: Individually evaluated for impairment $ 117,820 $ 47,310 $ 83,206 $ 18,677 $ 6,332 $ 273,345 Collectively evaluated for impairment 4,270,488 2,552,008 5,060,965 4,537,531 579,341 17,000,333 Loans and leases $ 4,388,308 $ 2,599,318 $ 5,144,171 $ 4,556,208 $ 585,673 $ 17,273,678 Impaired Loans and Leases The following tables summarize impaired loans and leases: At June 30, 2018 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 120,019 $ 109,636 $ 68,854 $ 40,782 $ 4,330 Consumer - home equity 46,758 41,636 32,140 9,496 1,498 Commercial : Commercial non-mortgage 99,170 85,911 52,522 33,389 6,007 Asset-based 1,197 1,160 1,160 — — Commercial real estate: Commercial real estate 13,490 12,677 2,812 9,865 2,061 Commercial construction — — — — — Equipment financing 6,254 6,185 5,792 393 18 Total $ 286,888 $ 257,205 $ 163,280 $ 93,925 $ 13,914 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 June 30, Six months ended June 30, 2018 2017 2018 2017 (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 $ 110,787 $ 948 $ 265 $ 119,398 $ 1,036 $ 286 $ 111,965 $ 1,929 $ 518 $ 118,622 $ 2,106 $ 701 Consumer - home equity 42,112 290 250 47,296 335 249 43,536 584 500 46,514 657 562 Commercial: Commercial non-mortgage 80,475 871 — 85,006 233 — 78,896 1,410 — 68,122 455 — Asset based 1,347 — — — — — 875 — — — — — Commercial real estate: Commercial real estate 11,802 38 — 20,454 98 — 11,951 134 — 20,851 233 — Commercial construction — — — 862 — — — — — 865 12 — Equipment financing 6,320 35 — 6,240 67 — 4,755 71 — 6,376 138 — Total $ 252,843 $ 2,182 $ 515 $ 279,256 $ 1,769 $ 535 $ 251,978 $ 4,128 $ 1,018 $ 261,350 $ 3,601 $ 1,263 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 June 30, At December 31, At June 30, At December 31, At June 30, At December 31, (1) - (6) Pass $ 5,574,419 $ 5,048,162 $ 4,422,144 $ 4,355,916 $ 497,193 $ 525,105 (7) Special Mention 172,017 104,594 48,683 62,065 6,490 8,022 (8) Substandard 226,275 206,883 109,373 105,847 19,282 17,106 (9) Doubtful 8,845 9,055 — — — — Total $ 5,981,556 $ 5,368,694 $ 4,580,200 $ 4,523,828 $ 522,965 $ 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 June 30, At December 31, 2017 Accrual status $ 150,459 $ 147,113 Non-accrual status 79,515 74,291 Total recorded investment of TDRs $ 229,974 $ 221,404 Specific reserves for TDRs included in the balance of ALLL $ 11,334 $ 12,384 Additional funds committed to borrowers in TDR status 7,206 2,736 For the portion of TDRs deemed to be uncollectible, Webster charged off $4.5 million and $0.6 million for the three months ended June 30, 2018 and 2017 , respectively, and $5.2 million , and $2.6 million for the six months ended June 30, 2018 and 2017 , respectively. The following table provides information on the type of concession for loans and leases modified as TDRs: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Number of Post- (1) Number of Post- (1) Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential Extended Maturity — $ — 4 $ 420 — $ — 9 $ 1,390 Adjusted Interest Rate — — 2 335 — — 2 335 Maturity/Rate Combined 3 276 2 354 3 276 5 846 Other (2) 8 1,685 7 1,176 13 2,442 26 4,114 Consumer - home equity Extended Maturity — — 4 625 2 193 6 664 Adjusted Interest Rate — — — — — — — — Maturity/Rate Combined 1 335 4 830 3 448 11 2,813 Other (2) 14 915 10 701 25 1,693 43 2,894 Commercial non - mortgage Extended Maturity — — 6 778 3 85 8 813 Adjusted Interest Rate — — — — — — — — Maturity/Rate Combined 2 51 5 8,854 2 51 5 8,854 Other (2) 7 24,059 — — 9 28,743 1 4 Commercial real estate Extended Maturity 1 52 — — 2 97 — — Maturity/Rate Combined 1 245 — — 1 245 — — Other (2) 1 5,111 — — 1 5,111 — — Equipment Financing Extended Maturity — — — — — — — — Total TDRs 38 $ 32,729 44 $ 14,073 64 $ 39,384 116 $ 22,727 (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 during the three and six months ended June 30, 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 June 30, 2018 At December 31, 2017 (1) - (6) Pass $ 3,886 $ 8,268 (7) Special Mention 14,109 355 (8) Substandard 60,706 53,050 (9) Doubtful — — Total $ 78,701 $ 61,673 |