Loans and Leases | Loans and Leases The following table summarizes loans and leases: At December 31, (In thousands) 2019 2018 Commercial $ 6,343,497 $ 6,216,606 Commercial Real Estate 5,949,339 4,927,145 Equipment Financing 537,341 508,397 Residential 4,972,685 4,416,637 Consumer 2,234,124 2,396,704 Loans and leases (1) (2) $ 20,036,986 $ 18,465,489 (1) Loans and leases include net deferred fees and net premiums and discounts of $17.6 million and $13.9 million at December 31, 2019 and December 31, 2018, respectively. (2) At December 31, 2019, the Company had pledged $7.9 billion of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston. The equipment financing portfolio includes net investment in leases of $169.3 million at December 31, 2019. Total undiscounted cash flows to be received from the Company's net investment in leases are $184.1 million at December 31, 2019 and are primarily due within the next five years. The Company's lessor portfolio has recognized interest income of $5.5 million for year ended December 31, 2019. Loans and Leases Portfolio Aging The following tables summarize the aging of loans and leases: At December 31, 2019 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current Total Loans Commercial: Commercial non-mortgage $ 2,094 $ 617 $ — $ 59,369 $ 62,080 $ 5,234,531 $ 5,296,611 Asset-based — — — 139 139 1,046,747 1,046,886 Commercial real estate: Commercial real estate 1,256 454 — 9,950 11,660 5,713,939 5,725,599 Commercial construction — — — 1,613 1,613 222,127 223,740 Equipment financing 5,493 292 — 5,433 11,218 526,123 537,341 Residential 7,166 6,441 — 43,193 56,800 4,915,885 4,972,685 Consumer: Home equity 8,267 5,551 — 30,170 43,988 1,970,556 2,014,544 Other consumer 4,269 807 — 1,192 6,268 213,312 219,580 Total $ 28,545 $ 14,162 $ — $ 151,059 $ 193,766 $ 19,843,220 $ 20,036,986 At December 31, 2018 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Current Total Loans 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 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 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 for the years ended December 31, 2019, 2018, and 2017, had the loans and leases been current in accordance with their original terms, totaled $11.3 million, $9.7 million, and $8.4 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, 2019 (In thousands) Commercial Commercial Equipment Residential Consumer Total Allowance for loan and lease losses: Balance at January 1, 2019 $ 98,793 $ 60,151 $ 5,129 $ 19,599 $ 28,681 $ 212,353 Provision for loan and lease losses 20,370 8,550 254 4,110 4,516 37,800 Charge-offs (29,033) (3,501) (793) (4,153) (15,000) (52,480) Recoveries 1,626 45 78 1,363 8,311 11,423 Balance at December 31, 2019 $ 91,756 $ 65,245 $ 4,668 $ 20,919 $ 26,508 $ 209,096 Individually evaluated for impairment 7,867 1,143 418 3,618 1,203 14,249 Collectively evaluated for impairment $ 83,889 $ 64,102 $ 4,250 $ 17,301 $ 25,305 $ 194,847 Loan and lease balances: Individually evaluated for impairment $ 102,393 $ 23,297 $ 5,433 $ 90,096 $ 35,191 $ 256,410 Collectively evaluated for impairment 6,241,104 5,926,042 531,908 4,882,589 2,198,933 19,780,576 Loans and leases $ 6,343,497 $ 5,949,339 $ 537,341 $ 4,972,685 $ 2,234,124 $ 20,036,986 At or for the Year ended December 31, 2018 (In thousands) Commercial Commercial Equipment Residential Consumer Total Allowance for loan and lease losses: Balance at January 1, 2018 $ 89,533 $ 49,407 $ 5,806 $ 19,058 $ 36,190 $ 199,994 Provision for loan and lease losses 23,041 12,644 (329) 2,016 4,628 42,000 Charge-offs (18,220) (2,061) (423) (3,455) (19,228) (43,387) Recoveries 4,439 161 75 1,980 7,091 13,746 Balance at December 31, 2018 $ 98,793 $ 60,151 $ 5,129 $ 19,599 $ 28,681 $ 212,353 Individually evaluated for impairment 7,824 1,661 196 4,286 1,383 15,350 Collectively evaluated for impairment $ 90,969 $ 58,490 $ 4,933 $ 15,313 $ 27,298 $ 197,003 Loan and lease balances: Individually evaluated for impairment $ 99,512 $ 10,828 $ 6,315 $ 103,531 $ 39,144 $ 259,330 Collectively evaluated for impairment 6,117,094 4,916,317 502,082 4,313,106 2,357,560 18,206,159 Loans and leases $ 6,216,606 $ 4,927,145 $ 508,397 $ 4,416,637 $ 2,396,704 $ 18,465,489 At or for the Year ended December 31, 2017 (In thousands) Commercial Commercial Equipment Residential Consumer Total Allowance for loan and lease losses: Balance at January 1, 2017 $ 71,905 $ 47,477 $ 6,479 $ 23,226 $ 45,233 $ 194,320 Provision for loan and lease losses 23,417 11,040 (232) (2,692) 9,367 40,900 Charge-offs (8,147) (9,275) (558) (2,500) (24,447) (44,927) Recoveries 2,358 165 117 1,024 6,037 9,701 Balance at December 31, 2017 $ 89,533 $ 49,407 $ 5,806 $ 19,058 $ 36,190 $ 199,994 Individually evaluated for impairment 9,786 272 23 4,805 1,668 16,554 Collectively evaluated for impairment $ 79,747 $ 49,135 $ 5,783 $ 14,253 $ 34,522 $ 183,440 Loan and lease balances: Individually evaluated for impairment $ 72,471 $ 11,226 $ 3,325 $ 114,295 $ 45,436 $ 246,753 Collectively evaluated for impairment 5,296,223 4,512,602 546,908 4,376,583 2,544,789 17,277,105 Loans and leases $ 5,368,694 $ 4,523,828 $ 550,233 $ 4,490,878 $ 2,590,225 $ 17,523,858 Impaired Loans and Leases The following tables summarize impaired loans and leases: At December 31, 2019 (In thousands) Unpaid Total Recorded Recorded Related Commercial non-mortgage $ 140,096 $ 102,254 $ 29,739 $ 72,515 $ 7,862 Asset-based 465 139 — 139 5 Commercial real estate 27,678 21,684 13,205 8,479 1,143 Commercial construction 1,614 1,613 1,613 — — Equipment financing 5,591 5,433 2,159 3,274 418 Residential 98,790 90,096 56,231 33,865 3,618 Consumer home equity 38,503 35,191 27,672 7,519 1,203 Total $ 312,737 $ 256,410 $ 130,619 $ 125,791 $ 14,249 At December 31, 2018 (In thousands) Unpaid Total Recorded Recorded Related 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 Commercial construction — — — — — Equipment financing 6,368 6,315 2,946 3,369 196 Residential 113,575 103,531 64,899 38,632 4,286 Consumer home equity 44,654 39,144 30,576 8,568 1,383 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: Years ended December 31, 2019 2018 2017 (In thousands) Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Commercial non-mortgage $ 100,771 $ 3,241 $ — $ 85,585 $ 3,064 $ — $ 62,459 $ 1,095 $ — Asset based 182 — — 407 — — 295 — — Commercial real estate 16,256 385 — 11,027 198 — 17,397 417 — Commercial construction 806 — — — — — 594 12 — Equipment financing 5,874 — — 4,820 112 — 4,872 207 — Residential 96,814 3,502 1,078 108,913 3,781 1,106 116,859 4,138 1,264 Consumer home equity 37,167 1,045 981 42,290 1,158 980 45,578 1,323 1,046 Total $ 257,870 $ 8,173 $ 2,059 $ 253,042 $ 8,313 $ 2,086 $ 248,054 $ 7,192 $ 2,310 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) 2019 2018 2019 2018 2019 2018 (1) - (6) Pass $ 5,985,338 $ 5,781,138 $ 5,860,981 $ 4,773,298 $ 528,561 $ 494,585 (7) Special Mention 94,809 206,351 26,978 75,338 808 1,303 (8) Substandard 259,490 222,405 61,380 78,509 7,972 12,509 (9) Doubtful 3,860 6,712 — — — — Total $ 6,343,497 $ 6,216,606 $ 5,949,339 $ 4,927,145 $ 537,341 $ 508,397 Troubled Debt Restructurings The following table summarizes information for TDRs: At December 31, (Dollars in thousands) 2019 2018 Accrual status $ 136,449 $ 138,479 Non-accrual status 100,989 91,935 Total recorded investment of TDR $ 237,438 $ 230,414 Specific reserves for TDR included in the balance of ALLL $ 12,956 $ 11,930 Additional funds committed to borrowers in TDR status 4,856 3,893 For years ended December 31, 2019, 2018 and 2017, Webster charged off $21.8 million, $14.3 million, and $3.2 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, 2019 2018 2017 Number of Post-Modification Recorded Investment (1) Number of Post-Modification Recorded Investment (1) Number of Post-Modification Recorded Investment (1) (Dollars in thousands) Commercial non mortgage: Extended Maturity 15 $ 2,413 12 $ 823 12 $ 1,233 Adjusted Interest rates 2 112 — — — — Combination Rate and Maturity 11 673 15 8,842 18 9,592 Other (2) 28 65,186 20 41,248 4 6,375 Commercial real estate: Extended Maturity 3 8,356 2 97 — — Combination Rate and Maturity — — 3 1,485 — — Other (2) 3 4,816 1 5,111 — — Equipment Financing Extended Maturity — — 4 736 — — Residential: Extended Maturity 7 1,327 1 20 16 2,569 Adjusted Interest rates — — — — 2 335 Combination Rate and Maturity 15 2,241 9 947 12 1,733 Other (2) 8 1,001 21 3,573 39 6,200 Consumer home equity: Extended Maturity 6 599 4 469 12 976 Adjusted Interest rates — — — — 1 247 Combination Rate and Maturity 4 140 6 618 14 3,469 Other (2) 34 1,907 45 2,812 73 4,907 Total 136 $ 88,771 143 $ 66,781 203 $ 37,636 (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. For the year ended December 31, 2019 there were six Commercial non-mortgage and one Commercial Real Estate TDRs with a recorded investment of $0.8 million and $1.7 million, respectively, that had been modified within the previous 12 months and for which there was a payment default. There were no significant amounts for the years ended December 31, 2018 and 2017. 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) 2019 2018 (1) - (6) Pass $ 3,952 $ 13,165 (7) Special Mention 63 84 (8) Substandard 104,277 67,880 (9) Doubtful 3,860 6,610 Total $ 112,152 $ 87,739 |