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Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable The following table summarizes loans and leases:
(In thousands)
At September 30,
2017
 
At December 31, 2016
Residential
$
4,499,441

 
$
4,254,682

Consumer
2,566,983

 
2,684,500

Commercial
5,348,303

 
4,940,931

Commercial Real Estate
4,464,917

 
4,510,846

Equipment Financing
566,777

 
635,629

Loans and leases (1) (2)
$
17,446,421

 
$
17,026,588


(1)
Loans and leases include net deferred fees and net premiums/discounts of $20.8 million and $17.3 million at September 30, 2017 and December 31, 2016, respectively.
(2)
At September 30, 2017, the Company had pledged $6.7 billion of eligible residential, consumer and commercial loans as collateral to support borrowing capacity at the FHLB Boston and the FRB of Boston.
Past Due Financing Receivables The following tables summarize the aging of loans and leases:
 
At September 30, 2017
(In thousands)
30-59 Days
Past Due and
Accruing
60-89 Days
Past Due and
Accruing
90 or More Days Past Due
and Accruing
Non-accrual
Total Past Due and Non-accrual
Current
Total Loans
and Leases
Residential
$
8,069

$
3,654

$
—

$
45,676

$
57,399

$
4,442,042

$
4,499,441

Consumer:
 
 
 
 
 
 
 
Home equity
7,613

4,685

—

37,105

49,403

2,269,468

2,318,871

Other consumer
2,224

1,454

—

1,859

5,537

242,575

248,112

Commercial:
 
 
 
 
 
 
 
Commercial non-mortgage
1,948

364

934

58,915

62,161

4,402,543

4,464,704

Asset-based
—

—

—

8,558

8,558

875,041

883,599

Commercial real estate:
 
 
 
 
 
 
 
Commercial real estate
1,347

444

—

10,603

12,394

4,161,572

4,173,966

Commercial construction
—

—

—

477

477

290,474

290,951

Equipment financing
818

49

—

570

1,437

565,340

566,777

Total
$
22,019

$
10,650

$
934

$
163,763

$
197,366

$
17,249,055

$
17,446,421

 
At December 31, 2016
(In thousands)
30-59 Days
Past Due and
Accruing
60-89 Days
Past Due and
Accruing
90 or More Days Past Due
and Accruing
Non-accrual
Total Past Due and Non-accrual
Current
Total Loans
and Leases
Residential
$
8,631

$
2,609

$
—

$
47,279

$
58,519

$
4,196,163

$
4,254,682

Consumer:
 
 
 
 
 
 
 
Home equity
8,831

5,782

—

35,926

50,539

2,359,354

2,409,893

Other consumer
2,233

1,485

—

1,663

5,381

269,226

274,607

Commercial:
 
 
 
 
 
 
 
Commercial non-mortgage
1,382

577

749

38,190

40,898

4,094,727

4,135,625

Asset-based
—

—

—

—

—

805,306

805,306

Commercial real estate:
 
 
 
 
 
 
 
Commercial real estate
6,357

1,816

—

9,871

18,044

4,117,742

4,135,786

Commercial construction
—

—

—

662

662

374,398

375,060

Equipment financing
903

693

—

225

1,821

633,808

635,629

Total
$
28,337

$
12,962

$
749

$
133,816

$
175,864

$
16,850,724

$
17,026,588
Activity In Allowance For 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 September 30, 2017
 
Residential
Consumer
Commercial
Commercial
Real Estate
Equipment
Financing
Total
ALLL:
 
 
 
 
 
 
Balance, beginning of period
$
18,427

$
42,488

$
79,964

$
52,402

$
6,297

$
199,578

(Benefit) provision charged to expense
(348
)
(41
)
12,166

(2,129
)
502

10,150

Charge-offs
(585
)
(6,197
)
(3,002
)
(749
)
(121
)
(10,654
)
Recoveries
280

1,894

466

10

79

2,729

Balance, end of period
$
17,774

$
38,144

$
89,594

$
49,534

$
6,757

$
201,803

 
 
 
 
 
 
 
 
At or for the three months ended September 30, 2016
(In thousands)
Residential
Consumer
Commercial
Commercial
Real Estate
Equipment
Financing
Total
ALLL:
 
 
 
 
 
 
Balance, beginning of period
$
24,413

$
42,956

$
73,822

$
33,622

$
5,615

$
180,428

Provision charged to expense
1,076

4,985

4,351

2,953

885

14,250

Charge-offs
(1,304
)
(5,259
)
(2,561
)
—

(300
)
(9,424
)
Recoveries
554

1,313

370

194

240

2,671

Balance, end of period
$
24,739

$
43,995

$
75,982

$
36,769

$
6,440

$
187,925

 
 
 
 
 
 
 
 
At or for the nine months ended September 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
(4,436
)
6,847

21,905

2,987

597

27,900

Charge-offs
(1,940
)
(18,273
)
(5,321
)
(951
)
(425
)
(26,910
)
Recoveries
924

4,337

1,105

21

106

6,493

Balance, end of period
$
17,774

$
38,144

$
89,594

$
49,534

$
6,757

$
201,803

Individually evaluated for impairment
$
4,925

$
1,689

$
10,844

$
290

$
38

$
17,786

Collectively evaluated for impairment
$
12,849

$
36,455

$
78,750

$
49,244

$
6,719

$
184,017

 
 
 
 
 
 
 
Loan and lease balances:
 
 
 
 
 
 
Individually evaluated for impairment
$
116,706

$
46,224

$
85,385

$
18,199

$
3,642

$
270,156

Collectively evaluated for impairment
4,382,735

2,520,759

5,262,918

4,446,718

563,135

17,176,265

Loans and leases
$
4,499,441

$
2,566,983

$
5,348,303

$
4,464,917

$
566,777

$
17,446,421

 
At or for the nine months ended September 30, 2016
(In thousands)
Residential
Consumer
Commercial
Commercial
Real Estate
Equipment
Financing
Total
ALLL:
 
 
 
 
 
 
Balance, beginning of period
$
25,876

$
42,052

$
66,686

$
34,889

$
5,487

$
174,990

Provision charged to expense
991

12,458

25,447

3,921

1,033

43,850

Charge-offs
(3,536
)
(14,236
)
(17,294
)
(2,521
)
(521
)
(38,108
)
Recoveries
1,408

3,721

1,143

480

441

7,193

Balance, end of period
$
24,739

$
43,995

$
75,982

$
36,769

$
6,440

$
187,925

Individually evaluated for impairment
$
9,443

$
3,005

$
6,579

$
467

$
9

$
19,503

Collectively evaluated for impairment
$
15,296

$
40,990

$
69,403

$
36,302

$
6,431

$
168,422

 
 
 
 
 
 
 
Loan and lease balances:
 
 
 
 
 
 
Individually evaluated for impairment
$
122,020

$
46,208

$
58,197

$
24,423

$
6,863

$
257,711

Collectively evaluated for impairment
4,112,027

2,661,135

4,721,605

4,256,090

614,833

16,365,690

Loans and leases
$
4,234,047

$
2,707,343

$
4,779,802

$
4,280,513

$
621,696

$
16,623,401
Impaired Loans The following tables summarize impaired loans and leases:
 
At September 30, 2017
(In thousands)
Unpaid
Principal
Balance
Total
Recorded
Investment
Recorded
Investment
No Allowance
Recorded
Investment
With Allowance
Related
Valuation
Allowance
Residential
$
127,986

$
116,706

$
27,961

$
88,745

$
4,925

Consumer - home equity
51,496

46,225

21,833

24,392

1,689

Commercial :
 
 
 
 
 
Commercial non-mortgage
88,221

76,827

28,124

48,703

10,844

Asset-based
8,558

8,558

8,558

—

—

Commercial real estate:
 
 
 
 
 
Commercial real estate
19,026

17,725

12,894

4,831

271

Commercial construction
580

474

—

474

19

Equipment financing
3,721

3,642

3,004

638

38

Total
$
299,588

$
270,157

$
102,374

$
167,783

$
17,786

 
At December 31, 2016
(In thousands)
Unpaid
Principal
Balance
Total
Recorded
Investment
Recorded
Investment
No Allowance
Recorded
Investment
With Allowance
Related
Valuation
Allowance
Residential
$
131,468

$
119,424

$
21,068

$
98,356

$
8,090

Consumer - home equity
52,432

45,719

22,746

22,973

2,903

Commercial :
 
 
 
 
 
Commercial non-mortgage
57,732

53,037

26,006

27,031

7,422

Asset-based
—

—

—

—

—

Commercial real estate:
 
 
 
 
 
Commercial real estate
24,146

23,568

19,591

3,977

169

Commercial construction
1,188

1,187

1,187

—

—

Equipment financing
6,398

6,420

6,197

223

9

Total
$
273,364

$
249,355

$
96,795

$
152,560

$
18,593


The following table summarizes the average recorded investment and interest income recognized for impaired loans and leases:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
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
Recorded
Investment
Accrued
Interest
Income
Cash Basis Interest Income
 
Average
Recorded
Investment
Accrued
Interest
Income
Cash Basis Interest Income
Residential
$
118,841

$
1,027

$
285

 
$
124,993

$
1,070

$
304

 
$
118,065

$
3,133

$
986

 
$
128,234

$
3,309

$
918

Consumer - home equity
46,753

341

246

 
46,892

336

238

 
45,972

998

808

 
47,317

1,029

754

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Non-Mortgage
81,816

249

—

 
58,874

352

—

 
64,932

704

—

 
57,389

1,299

—

Asset based
4,279

—

—

 
—

—

—

 
4,279



—

 
—

—

—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
20,249

96

—

 
23,930

77

—

 
20,647

329

—

 
26,689

374

—

Commercial construction
828

—

—

 
4,386

12

—

 
831

12

—

 
5,171

81

—

Equipment financing
4,895

30

—

 
3,642

107

—

 
5,031

168

—

 
3,642

109

—

Total
$
277,661

$
1,743

$
531

 
$
262,717

$
1,954

$
542

 
$
259,757

$
5,344

$
1,794

 
$
268,442

$
6,201

$
1,672
Financing Receivable Credit Quality Indicators 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 September 30,
2017
 
At December 31,
2016
 
At September 30,
2017
 
At December 31,
2016
 
At September 30,
2017
 
At December 31,
2016
(1) - (6) Pass
$
5,037,439

 
$
4,655,007

 
$
4,266,658

 
$
4,357,458

 
$
548,298

 
$
618,084

(7) Special Mention
108,828

 
56,240

 
85,926

 
69,023

 
3,557

 
1,324

(8) Substandard
192,161

 
226,603

 
112,333

 
84,365

 
14,922

 
16,221

(9) Doubtful
9,875

 
3,081

 
—

 
—

 
—

 
—

Total
$
5,348,303

 
$
4,940,931

 
$
4,464,917

 
$
4,510,846

 
$
566,777

 
$
635,629
Troubled Debt Restructurings on Financing Receivables Troubled Debt Restructurings
The following table summarizes information for TDRs:
(Dollars in thousands)
At September 30,
2017
 
At December 31, 2016
Accrual status
$
135,774

 
$
147,809

Non-accrual status
82,576

 
75,719

Total recorded investment of TDRs
$
218,350

 
$
223,528

Specific reserves for TDRs included in the balance of ALLL
$
11,837

 
$
14,583

Additional funds committed to borrowers in TDR status
3,944

 
459


For the portion of TDRs deemed to be uncollectible, Webster charged off $0.4 million and $3.0 million for the three months ended September 30, 2017 and 2016, respectively, and $3.0 million, and $17.9 million for the nine months ended September 30, 2017 and 2016, respectively.
The following table provides information on the type of concession for loans and leases modified as TDRs:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
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)
 
Number of
Loans and
Leases
Post-
Modification
Recorded
Investment(1)
(Dollars in thousands)
 
Residential:
 
 
 
 
 
 
 
 
 
 
 
Extended Maturity
—

$
—

 
4

$
967

 
9
$
1,390

 
11
$
1,969

Adjusted Interest Rate
—

—

 
1

292

 
2
335

 
2
528

Maturity/Rate Combined
4

570

 
3

290

 
9
1,416

 
10
1,185

Other (2)
6

1,357

 
3

299

 
32
5,471

 
18
3,190

Consumer - home equity
 
 
 
 
 
 
 
 
 
 
 
Extended Maturity
2

158

 
2

89

 
8
822

 
9
381

Adjusted Interest Rate
1

247

 
—

—

 
1
247

 
—
—

Maturity/Rate Combined
2

399

 
3

264

 
13
3,212

 
11
923

Other (2)
12

839

 
8

270

 
55
3,733

 
37
1,447

Commercial non - mortgage
 
 
 


 
 
 
 
 
 
 
Extended Maturity
—

—

 
2

213

 
8
813

 
11
14,862

Maturity/Rate Combined
8

299

 
—

—

 
13
9,153

 
2
648

Other (2)
—

—

 
4

1,265

 
1
4

 
11
1,639

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Extended Maturity
—

—

 
1

109

 
—
—

 
1
109

Maturity/Rate Combined
—

—

 
1

291

 
—
—

 
2
335

Other (2)
—

—

 
—

—

 
—
—

 
1
509

Equipment Financing
 
 
 
 
 
 
 
 
 
 
 
Extended Maturity
—

—

 
6

6,638

 
—
—

 
7
6,642

Total TDRs
35

$
3,869

 
38

$
10,987

 
151
$
26,596

 
133
$
34,367


(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.
Loans and leases modified as TDRs within the previous 12 months and for which there was a payment default, consisted of one residential loan with a recorded investment of $248 thousand for both the three and nine months ended September 30, 2017. There were no such loans and leases for both the three and nine months ended September 30, 2016.
 

The recorded investment of TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows:
(In thousands)
At September 30, 2017
 
At December 31, 2016
(1) - (6) Pass
$
8,902

 
$
10,210

(7) Special Mention
360

 
7

(8) Substandard
46,157

 
45,509

(9) Doubtful
—

 
2,738

Total
$
55,419

 
$
58,464