Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At June 30, At December 31, 2018 Residential $ 4,718,704 $ 4,416,637 Consumer 2,301,291 2,396,704 Commercial 6,519,953 6,216,606 Commercial Real Estate 5,224,382 4,927,145 Equipment Financing 505,553 508,397 Loans and leases (1) (2) $ 19,269,883 $ 18,465,489 (1) Includes net deferred fees and net premiums/discounts of $8.2 million and $13.9 million at June 30, 2019 and December 31, 2018 , respectively. (2) At June 30, 2019 the Company had pledged $6.8 billion of eligible loans as collateral to support borrowing capacity at the Federal Home Loan Bank (FHLB) of Boston and the Federal Reserve Bank (FRB) of Boston. The equipment financing portfolio includes net investment in leases of $164.0 million at June 30, 2019 . Total undiscounted cash flows to be received from the Company's net investment in leases are $178.5 million at June 30, 2019 and are primarily due within the next five years. The Company's lessor portfolio has recognized interest income of $1.5 million and $2.9 million for the three and six months ended June 30, 2019 , respectively. Loans and Leases Aging The following tables summarize the aging of loans and leases: At June 30, 2019 (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 $ 6,922 $ 3,955 $ — $ 48,228 $ 59,105 $ 4,659,599 $ 4,718,704 Consumer: Home equity 7,451 2,574 — 31,870 41,895 2,035,234 2,077,129 Other consumer 2,776 1,180 — 1,190 5,146 219,016 224,162 Commercial: Commercial non-mortgage 1,300 688 410 52,452 54,850 5,387,985 5,442,835 Asset-based — — — 184 184 1,076,934 1,077,118 Commercial real estate: Commercial real estate 1,189 125 — 10,428 11,742 4,957,572 4,969,314 Commercial construction 1,355 — — — 1,355 253,713 255,068 Equipment financing 2,241 219 — 3,949 6,409 499,144 505,553 Total $ 23,234 $ 8,741 $ 410 $ 148,301 $ 180,686 $ 19,089,197 $ 19,269,883 At December 31, 2018 (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 $ 8,513 $ 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 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 $3.4 million and $2.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $6.1 million and $4.3 million for the six months ended June 30, 2019 and 2018 , 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 June 30, 2019 Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 20,413 $ 26,919 $ 100,174 $ 58,893 $ 4,990 $ 211,389 Provision (benefit) charged to expense 2,667 1,313 3,391 4,615 (86 ) 11,900 Charge-offs (2,154 ) (4,098 ) (5,218 ) (2,473 ) (439 ) (14,382 ) Recoveries 295 1,972 453 33 11 2,764 Balance, end of period $ 21,221 $ 26,106 $ 98,800 $ 61,068 $ 4,476 $ 211,671 At or for the three months ended June 30, 2018 (In thousands) 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 (benefit) 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 six months ended June 30, 2019 (In thousands) Residential Consumer Commercial Commercial Real Estate Equipment Financing Total ALLL: Balance, beginning of period $ 19,599 $ 28,681 $ 98,793 $ 60,151 $ 5,129 $ 212,353 Provision (benefit) charged to expense 3,554 1,036 11,618 4,324 (32 ) 20,500 Charge-offs (2,405 ) (8,071 ) (12,851 ) (3,446 ) (643 ) (27,416 ) Recoveries 473 4,460 1,240 39 22 6,234 Balance, end of period $ 21,221 $ 26,106 $ 98,800 $ 61,068 $ 4,476 $ 211,671 Individually evaluated for impairment $ 3,969 $ 1,292 $ 8,696 $ 656 $ 168 $ 14,781 Collectively evaluated for impairment $ 17,252 $ 24,814 $ 90,104 $ 60,412 $ 4,308 $ 196,890 Loan and lease balances: Individually evaluated for impairment $ 100,168 $ 37,332 $ 97,919 $ 13,879 $ 3,949 $ 253,247 Collectively evaluated for impairment 4,618,536 2,263,959 6,422,034 5,210,503 501,604 19,016,636 Loans and leases $ 4,718,704 $ 2,301,291 $ 6,519,953 $ 5,224,382 $ 505,553 $ 19,269,883 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 Impaired Loans and Leases The following tables summarize impaired loans and leases: At June 30, 2019 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 109,366 $ 100,168 $ 64,494 $ 35,674 $ 3,969 Consumer - home equity 40,761 37,332 29,295 8,037 1,292 Commercial non-mortgage 127,092 97,735 61,199 36,536 8,691 Asset-based 510 184 — 184 5 Commercial real estate 19,734 13,879 6,920 6,959 656 Equipment financing 3,949 3,949 771 3,178 168 Total $ 301,412 $ 253,247 $ 162,679 $ 90,568 $ 14,781 At December 31, 2018 (In thousands) Unpaid Principal Balance Total Recorded Investment No Allowance Recorded Investment With Allowance Related Valuation Allowance Residential $ 113,575 $ 103,531 $ 64,899 $ 38,632 $ 4,286 Consumer - home equity 44,654 39,144 30,576 8,568 1,383 Commercial non-mortgage 120,165 99,287 65,724 33,563 7,818 Asset-based 550 225 — 225 6 Commercial real estate 13,355 10,828 2,125 8,703 1,661 Equipment financing 6,368 6,315 2,946 3,369 196 Total $ 298,667 $ 259,330 $ 166,270 $ 93,060 $ 15,350 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, 2019 2018 2019 2018 (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 $ 101,245 $ 912 $ 282 $ 110,787 $ 948 $ 265 $ 101,850 $ 1,820 $ 546 $ 111,965 $ 1,929 $ 518 Consumer - home equity 38,092 287 241 42,112 290 250 38,238 556 521 43,536 584 500 Commercial non-mortgage 106,753 844 — 80,475 871 — 98,511 1,764 — 78,896 1,410 — Asset based 201 — — 1,347 — — 204 — — 875 — — Commercial real estate 13,070 61 — 11,802 38 — 12,354 134 — 11,951 134 — Equipment financing 4,451 — — 6,320 35 — 5,132 — — 4,755 71 — Total $ 263,812 $ 2,104 $ 523 $ 252,843 $ 2,182 $ 515 $ 256,289 $ 4,274 $ 1,067 $ 251,978 $ 4,128 $ 1,018 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 or other loan factors 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 $ 6,124,187 $ 5,781,138 $ 5,047,238 $ 4,773,298 $ 495,381 $ 494,585 (7) Special Mention 168,290 206,351 95,528 75,338 2,560 1,303 (8) Substandard 220,758 222,405 81,616 78,509 7,612 12,509 (9) Doubtful 6,718 6,712 — — — — Total $ 6,519,953 $ 6,216,606 $ 5,224,382 $ 4,927,145 $ 505,553 $ 508,397 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, may also be evaluated 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 troubled debt restructurings (TDRs): (Dollars in thousands) At June 30, At December 31, 2018 Accrual status $ 136,081 $ 138,479 Non-accrual status 106,986 91,935 Total recorded investment of TDRs $ 243,067 $ 230,414 Specific reserves for TDRs included in the balance of ALLL $ 14,368 $ 11,930 Additional funds committed to borrowers in TDR status 6,160 3,893 For the portion of TDRs deemed to be uncollectible, Webster charged off $4.2 million and $4.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $5.6 million , and $5.2 million for the six months ended June 30, 2019 and 2018 , 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, 2019 2018 2019 2018 Number of Post- (1) Number of Post- (1) Number of Post- (1) Number of Post- (1) (Dollars in thousands) Residential Extended Maturity 3 $ 421 — $ — 4 $ 940 — $ — Maturity/Rate Combined 8 1,397 3 276 13 1,848 3 276 Other (2) 2 281 8 1,685 4 542 13 2,442 Consumer - home equity Extended Maturity 2 225 — — 4 370 2 193 Maturity/Rate Combined 2 110 1 335 2 110 3 448 Other (2) 6 466 14 915 19 1,220 25 1,693 Commercial non - mortgage Extended Maturity 4 69 — — 6 193 3 85 Adjusted Interest Rate 1 100 — — 1 100 — — Maturity/Rate Combined 2 46 2 51 3 71 2 51 Other (2) 4 12,029 7 24,059 19 34,056 9 28,743 Commercial real estate Extended Maturity — — 1 52 — — 2 97 Adjusted Interest rates — — 1 245 — — 1 245 Maturity/Rate Combined — — 1 5,111 — — 1 5,111 Other (2) — — — — 2 2,636 — — Total TDRs 34 $ 15,144 38 $ 32,729 77 $ 42,086 64 $ 39,384 (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 and six months ended June 30, 2019 and 2018 . 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, 2019 At December 31, 2018 (1) - (6) Pass $ 19,295 $ 13,165 (7) Special Mention 72 84 (8) Substandard 79,482 67,880 (9) Doubtful 6,718 6,610 Total $ 105,567 $ 87,739 |