Loans and Leases | Loans and Leases The following table summarizes loans and leases: At December 31, (In thousands) 2018 2017 Residential $ 4,416,637 $ 4,490,878 Consumer 2,396,704 2,590,225 Commercial 6,216,606 5,368,694 Commercial Real Estate 4,927,145 4,523,828 Equipment Financing 508,397 550,233 Loans and leases (1) (2) $ 18,465,489 $ 17,523,858 (1) Loans and leases include net deferred fees and net premiums and discounts of $13.9 million and $20.6 million at December 31, 2018 and December 31, 2017 , respectively. (2) At December 31, 2018 , the Company had pledged $7.1 billion of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston. Loans and Leases Portfolio Aging The following tables summarize the aging of loans and leases: At December 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 and Leases Residential $ 8,513 $ 4,301 $ — $ 49,188 $ 62,002 $ 4,354,635 $ 4,416,637 Consumer: Home equity 9,250 5,385 — 33,495 48,130 2,121,049 2,169,179 Other consumer 1,774 957 — 1,494 4,225 223,300 227,525 Commercial: Commercial non-mortgage 1,011 702 104 55,810 57,627 5,189,808 5,247,435 Asset-based — — — 224 224 968,947 969,171 Commercial real estate: Commercial real estate 1,275 245 — 8,242 9,762 4,698,552 4,708,314 Commercial construction — — — — — 218,831 218,831 Equipment financing 510 405 — 6,314 7,229 501,168 508,397 Total $ 22,333 $ 11,995 $ 104 $ 154,767 $ 189,199 $ 18,276,290 $ 18,465,489 At December 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 and Leases 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 for the years ended December 31, 2018 , 2017 , and 2016 , had the loans and leases been current in accordance with their original terms, totaled $9.7 million , $8.4 million , and $11.0 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 Year ended December 31, 2018 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2018 $ 19,058 $ 36,190 $ 89,533 $ 49,407 $ 5,806 $ 199,994 Provision (benefit) charged to expense 2,016 4,628 23,041 12,644 (329 ) 42,000 Losses charged off (3,455 ) (19,228 ) (18,220 ) (2,061 ) (423 ) (43,387 ) Recoveries 1,980 7,091 4,439 161 75 13,746 Balance at December 31, 2018 $ 19,599 $ 28,681 $ 98,793 $ 60,151 $ 5,129 $ 212,353 Individually evaluated for impairment $ 4,286 $ 1,383 $ 7,824 $ 1,661 $ 196 $ 15,350 Collectively evaluated for impairment $ 15,313 $ 27,298 $ 90,969 $ 58,490 $ 4,933 $ 197,003 Loan and lease balances: Individually evaluated for impairment $ 103,531 $ 39,144 $ 99,512 $ 10,828 $ 6,315 $ 259,330 Collectively evaluated for impairment 4,313,106 2,357,560 6,117,094 4,916,317 502,082 18,206,159 Loans and leases $ 4,416,637 $ 2,396,704 $ 6,216,606 $ 4,927,145 $ 508,397 $ 18,465,489 At or for the Year ended December 31, 2017 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2017 $ 23,226 $ 45,233 $ 71,905 $ 47,477 $ 6,479 $ 194,320 Provision (benefit) charged to expense (2,692 ) 9,367 23,417 11,040 (232 ) 40,900 Losses charged off (2,500 ) (24,447 ) (8,147 ) (9,275 ) (558 ) (44,927 ) Recoveries 1,024 6,037 2,358 165 117 9,701 Balance at December 31, 2017 $ 19,058 $ 36,190 $ 89,533 $ 49,407 $ 5,806 $ 199,994 Individually evaluated for impairment $ 4,805 $ 1,668 $ 9,786 $ 272 $ 23 $ 16,554 Collectively evaluated for impairment $ 14,253 $ 34,522 $ 79,747 $ 49,135 $ 5,783 $ 183,440 Loan and lease balances: Individually evaluated for impairment $ 114,295 $ 45,436 $ 72,471 $ 11,226 $ 3,325 $ 246,753 Collectively evaluated for impairment 4,376,583 2,544,789 5,296,223 4,512,602 546,908 17,277,105 Loans and leases $ 4,490,878 $ 2,590,225 $ 5,368,694 $ 4,523,828 $ 550,233 $ 17,523,858 At or for the Year ended December 31, 2016 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total Allowance for loan and lease losses: Balance at January 1, 2016 $ 25,876 $ 42,052 $ 59,977 $ 41,598 $ 5,487 $ 174,990 Provision (benefit) charged to expense 230 18,507 28,662 7,930 1,021 56,350 Losses charged off (4,636 ) (20,669 ) (18,360 ) (2,682 ) (565 ) (46,912 ) Recoveries 1,756 5,343 1,626 631 536 9,892 Balance at December 31, 2016 $ 23,226 $ 45,233 $ 71,905 $ 47,477 $ 6,479 $ 194,320 Individually evaluated for impairment $ 8,090 $ 2,903 $ 7,422 $ 169 $ 9 $ 18,593 Collectively evaluated for impairment $ 15,136 $ 42,330 $ 64,483 $ 47,308 $ 6,470 $ 175,727 Loan and lease balances: Individually evaluated for impairment $ 119,424 $ 45,719 $ 53,037 $ 24,755 $ 6,420 $ 249,355 Collectively evaluated for impairment 4,135,258 2,638,781 4,887,894 4,486,091 629,209 16,777,233 Loans and leases $ 4,254,682 $ 2,684,500 $ 4,940,931 $ 4,510,846 $ 635,629 $ 17,026,588 Impaired Loans and Leases The following tables summarize impaired loans and leases: At December 31, 2018 (In thousands) Unpaid Principal Balance Total Recorded Investment Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential: 1-4 family $ 113,575 $ 103,531 $ 64,899 $ 38,632 $ 4,286 Consumer home equity 44,654 39,144 30,576 8,568 1,383 Commercial: Commercial non-mortgage 120,165 99,287 65,724 33,563 7,818 Asset-based 550 225 — 225 6 Commercial real estate: Commercial real estate 13,355 10,828 2,125 8,703 1,661 Commercial construction — — — — — Equipment financing 6,368 6,315 2,946 3,369 196 Total $ 298,667 $ 259,330 $ 166,270 $ 93,060 $ 15,350 At December 31, 2017 (In thousands) Unpaid Principal Balance Total Recorded Investment Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential: 1-4 family $ 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: Years ended December 31, 2018 2017 2016 (In thousands) Average Recorded Investment Accrued Interest Income Cash Basis Interest Income Average Recorded Investment Accrued Interest Income Cash Basis Interest Income Average Accrued Cash Basis Interest Income Residential $ 108,913 $ 3,781 $ 1,106 $ 116,859 $ 4,138 $ 1,264 $ 126,936 $ 4,377 $ 1,200 Consumer home equity 42,290 1,158 980 45,578 1,323 1,046 47,072 1,361 985 Commercial Commercial non-mortgage 85,585 3,064 — 62,459 1,095 — 54,708 1,540 — Asset based 407 — — 295 — — — — — Commercial real estate: Commercial real estate 11,027 198 — 17,397 417 — 28,451 511 — Commercial construction — — — 594 12 — 3,574 92 — Equipment financing 4,820 112 — 4,872 207 — 3,421 184 — Total $ 253,042 $ 8,313 $ 2,086 $ 248,054 $ 7,192 $ 2,310 $ 264,162 $ 8,065 $ 2,185 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 PD and the 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 loss. 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 borrowers’ 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 At December 31, At December 31, At December 31, (In thousands) 2018 2017 2018 2017 2018 2017 (1) - (6) Pass $ 5,781,138 $ 5,048,162 $ 4,773,298 $ 4,355,916 $ 494,585 $ 525,105 (7) Special Mention 206,351 104,594 75,338 62,065 1,303 8,022 (8) Substandard 222,405 206,883 78,509 105,847 12,509 17,106 (9) Doubtful 6,712 9,055 — — — — Total $ 6,216,606 $ 5,368,694 $ 4,927,145 $ 4,523,828 $ 508,397 $ 550,233 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 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 TDRs: At December 31, (Dollars in thousands) 2018 2017 Accrual status $ 138,479 $ 147,113 Non-accrual status 91,935 74,291 Total recorded investment of TDR $ 230,414 $ 221,404 Specific reserves for TDR included in the balance of ALLL $ 11,930 $ 12,384 Additional funds committed to borrowers in TDR status 3,893 2,736 For years ended December 31, 2018 , 2017 and 2016 , Webster charged off $14.3 million , $3.2 million , and $18.6 million , respectively, for the portion of TDRs deemed to be uncollectible. The following table provides information on the type of concession for loans and leases modified as TDRs: Years ended December 31, 2018 2017 2016 Number of Loans and Leases Post- Modification Recorded Investment (1) Number of Loans and Leases Post- Modification Recorded Investment (1) Number of Loans and Leases Post- Modification Recorded Investment (1) (Dollars in thousands) Residential: Extended Maturity 1 $ 20 16 $ 2,569 17 $ 2,801 Adjusted Interest rates — — 2 335 2 528 Combination Rate and Maturity 9 947 12 1,733 13 1,537 Other (2) 21 3,573 39 6,200 24 4,090 Consumer home equity: Extended Maturity 4 469 12 976 11 484 Adjusted Interest rates — — 1 247 — — Combination Rate and Maturity 6 618 14 3,469 15 1,156 Other (2) 45 2,812 73 4,907 52 3,131 Commercial non mortgage: Extended Maturity 12 823 12 1,233 12 14,883 Adjusted Interest rates — — — — — — Combination Rate and Maturity 15 8,842 18 9,592 2 648 Other (2) 20 41,248 4 6,375 13 1,767 Commercial real estate: Extended Maturity 2 97 — — 3 4,921 Adjusted Interest rates — — — — 1 237 Combination Rate and Maturity 3 1,485 — — 2 335 Other (2) 1 5,111 — — 1 509 Equipment Financing Extended Maturity 4 736 — — 7 6,642 Total 143 $ 66,781 203 $ 37,636 175 $ 43,669 (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 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 years ended December 31, 2018 , 2017 and 2016 . The recorded investment of TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: At December 31, (In thousands) 2018 2017 (1) - (6) Pass $ 13,165 $ 8,268 (7) Special Mention 84 355 (8) Substandard 67,880 53,050 (9) Doubtful 6,610 — Total $ 87,739 $ 61,673 |