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Loans and Leases
 12 Months Ended
Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Loans and Leases Loans and Leases
The following table summarizes loans and leases:
 
At December 31,
(In thousands)
2017
 
2016
Residential
$
4,490,878

 
$
4,254,682

Consumer
2,590,225

 
2,684,500

Commercial
5,368,694

 
4,940,931

Commercial Real Estate
4,523,828

 
4,510,846

Equipment Financing
550,233

 
635,629

Loans and leases (1) (2)
$
17,523,858

 
$
17,026,588


(1)
Loans and leases include net deferred fees and net premiums and discounts of $20.6 million and $17.3 million at December 31, 2017 and December 31, 2016, respectively.
(2)
At December 31, 2017, the Company had pledged $6.7 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, 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
$
8,643

$
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


 
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


Interest on non-accrual loans and leases that would have been recorded as additional interest income for the years ended December 31, 2017, 2016, and 2015, had the loans and leases been current in accordance with their original terms, totaled $8.4 million, $11.0 million, and $8.2 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, 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


 
At or for the Year ended December 31, 2015
(In thousands)
Residential
Consumer
Commercial
Commercial
Real Estate
Equipment
Financing
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
Balance at January 1, 2015
$
25,452

$
43,518

$
47,068

$
37,148

$
6,078

$
159,264

Provision (benefit) charged to expense
6,057

11,847

21,693

11,381

(1,678
)
49,300

Losses charged off
(6,508
)
(17,679
)
(11,522
)
(7,578
)
(273
)
(43,560
)
Recoveries
875

4,366

2,738

647

1,360

9,986

Balance at December 31, 2015
$
25,876

$
42,052

$
59,977

$
41,598

$
5,487

$
174,990

Individually evaluated for impairment
$
10,364

$
3,477

$
5,197

$
3,163

$
3

$
22,204

Collectively evaluated for impairment
$
15,512

$
38,575

$
54,780

$
38,435

$
5,484

$
152,786

 
 
 
 
 
 
 
Loan and lease balances:
 
 
 
 
 
 
Individually evaluated for impairment
$
134,448

$
48,425

$
56,581

$
39,295

$
422

$
279,171

Collectively evaluated for impairment
3,926,553

2,654,135

4,259,418

3,952,354

600,104

15,392,564

Loans and leases
$
4,061,001

$
2,702,560

$
4,315,999

$
3,991,649

$
600,526

$
15,671,735


Impaired Loans and Leases
The following tables summarize impaired loans and leases:
 
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


 
At December 31, 2016
(In thousands)
Unpaid
Principal
Balance
Total
Recorded
Investment
Recorded
Investment
No Allowance
Recorded
Investment
With Allowance
Related
Valuation
Allowance
Residential:
 
 
 
 
 
1-4 family
$
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:
 
Years ended December 31,
 
2017
 
2016
 
2015
(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
Residential
$
116,859

$
4,138

$
1,264

 
$
126,936

$
4,377

$
1,200

 
$
138,215

$
4,473

$
1,139

Consumer home equity
45,578

1,323

1,046

 
47,072

1,361

985

 
49,337

1,451

1,099

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial non-mortgage
62,459

1,095

—

 
54,708

1,540

—

 
46,379

1,319

—

Asset based
295

—

—

 
—

—

—

 
—

—

—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
17,397

417

—

 
28,451

511

—

 
64,495

1,165

—

Commercial construction
594

12

—

 
3,574

92

—

 
6,062

133

—

Equipment financing
4,872

207

—

 
3,421

184

—

 
527

16

—

Total
$
248,054

$
7,192

$
2,310

 
$
264,162

$
8,065

$
2,185

 
$
305,015

$
8,557

$
2,238


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)
2017
 
2016
 
2017
 
2016
 
2017
 
2016
(1) - (6) Pass
$
5,048,162

 
$
4,655,007

 
$
4,355,916

 
$
4,357,458

 
$
525,105

 
$
618,084

(7) Special Mention
104,594

 
56,240

 
62,065

 
69,023

 
8,022

 
1,324

(8) Substandard
206,883

 
226,603

 
105,847

 
84,365

 
17,106

 
16,221

(9) Doubtful
9,055

 
3,081

 
—

 
—

 
—

 
—

Total
$
5,368,694

 
$
4,940,931

 
$
4,523,828

 
$
4,510,846

 
$
550,233

 
$
635,629


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)
2017
 
2016
Accrual status
$
147,113

 
$
147,809

Non-accrual status
74,291

 
75,719

Total recorded investment of TDR (1)
$
221,404

 
$
223,528

Specific reserves for TDR included in the balance of ALLL
$
12,384

 
$
14,583

Additional funds committed to borrowers in TDR status
2,736

 
459

(1)
Total recorded investment of TDRs exclude $0.1 million and $0.7 million at December 31, 2017 and December 31, 2016, respectively, of accrued interest receivable.
For years ended December 31, 2017, 2016 and 2015, Webster charged off $3.2 million, $18.6 million, and $11.8 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,
 
2017
 
2016
 
2015
 
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
16

$
2,569

 
17

$
2,801

 
27

$
4,909

Adjusted Interest rates
2

335

 
2

528

 
3

573

Combination Rate and Maturity
12

1,733

 
13

1,537

 
26

5,315

Other (2)
39

6,200

 
24

4,090

 
30

4,366

Consumer home equity:
 
 
 
 
 
 
 
 
Extended Maturity
12

976

 
11

484

 
12

1,012

Adjusted Interest rates
1

247

 
—

—

 
—

—

Combination Rate and Maturity
14

3,469

 
15

1,156

 
12

945

Other (2)
73

4,907

 
52

3,131

 
68

3,646

Commercial non mortgage:
 
 
 
 
 
 
 
 
Extended Maturity
12

1,233

 
12

14,883

 
3

254

Adjusted Interest rates
—

—

 
—

—

 
1

24

Combination Rate and Maturity
18

9,592

 
2

648

 
7

5,361

Other (2)
4

6,375

 
13

1,767

 
20

22,048

Commercial real estate:
 
 
 
 
 
 
 
 
Extended Maturity
—

—

 
3

4,921

 
1

315

Adjusted Interest rates
—

—

 
1

237

 
—

—

Combination Rate and Maturity
—

—

 
2

335

 
1

42

Other (2)
—

—

 
1

509

 
1

405

Equipment Financing
 
 
 
 
 
 
 
 
Extended Maturity
—

—

 
7

6,642

 
—

—

Total
203

$
37,636

 
175

$
43,669

 
212

$
49,215


(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, 2017, 2016 and 2015.
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)
2017
 
2016
(1) - (6) Pass
$
8,268

 
$
10,210

(7) Special Mention
355

 
7

(8) Substandard
53,050

 
45,509

(9) Doubtful
—

 
2,738

Total
$
61,673

 
$
58,464