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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2019

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table summarizes loans and leases:



(In thousands)	At June 30, 2019		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.

Past Due Financing Receivables

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 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	$	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 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	$	8,513	$	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

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 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

The following tables summarize impaired loans and leases:



	At June 30, 2019
(In thousands)	Unpaid Principal Balance		Total Recorded Investment		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		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 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	$	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

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 June 30, 2019		At December 31, 2018		At June 30, 2019		At December 31, 2018		At June 30, 2019		At December 31, 2018
(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

Troubled Debt Restructurings on Financing Receivables

Troubled Debt Restructurings

The following table summarizes information for troubled debt restructurings (TDRs):



(Dollars in thousands)	At June 30, 2019		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 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)	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⁾
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