Loans and Leases

12 Months Ended

Dec. 31, 2019

The following tables present loan and lease balances and weighted average coupon rates for the originated and acquired loan and lease portfolios at the dates indicated:



	At December 31, 2019
	Originated				Acquired				Total
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars In Thousands)
Commercial real estate loans:
Commercial real estate	$	2,400,037	4.32	%	$	90,974	4.63	%	$	2,491,011	4.33	%
Multi-family mortgage	896,482		4.18	%	35,681		4.59	%	932,163		4.20	%
Construction	239,015		5.04	%	7,033		6.73	%	246,048		5.09	%
Total commercial real estate loans	3,535,534		4.33	%	133,688		4.73	%	3,669,222		4.34	%
Commercial loans and leases:
Commercial	713,875		4.65	%	15,627		5.14	%	729,502		4.66	%
Equipment financing	1,049,997		7.71	%	2,411		5.98	%	1,052,408		7.71	%
Condominium association	56,838		4.84	%	—		—	%	56,838		4.84	%
Total commercial loans and leases	1,820,710		6.42	%	18,038		5.25	%	1,838,748		6.41	%
Consumer loans:
Residential mortgage	711,522		4.06	%	102,723		4.40	%	814,245		4.10	%
Home equity	343,247		4.41	%	33,572		4.93	%	376,819		4.46	%
Other consumer	38,674		4.44	%	108		17.91	%	38,782		4.48	%
Total consumer loans	1,093,443		4.18	%	136,403		4.54	%	1,229,846		4.22	%
Total loans and leases	$	6,449,687	4.89	%	$	288,129	4.67	%	$	6,737,816	4.88	%



	At December 31, 2018
	Originated				Acquired				Total
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars In Thousands)
Commercial real estate loans:
Commercial real estate	$	2,208,904	4.61	%	$	121,821	4.62	%	$	2,330,725	4.61	%
Multi-family mortgage	799,813		4.51	%	47,898		4.58	%	847,711		4.51	%
Construction	151,138		5.62	%	22,162		6.74	%	173,300		5.76	%
Total commercial real estate loans	3,159,855		4.63	%	191,881		4.85	%	3,351,736		4.64	%
Commercial loans and leases:
Commercial	712,630		4.96	%	23,788		5.39	%	736,418		4.97	%
Equipment financing	978,840		7.61	%	3,249		5.97	%	982,089		7.60	%
Condominium association	50,451		4.70	%	—		—	%	50,451		4.70	%
Total commercial loans and leases	1,741,921		6.44	%	27,037		5.46	%	1,768,958		6.43	%
Consumer loans:
Residential mortgage	653,059		4.09	%	129,909		4.45	%	782,968		4.15	%
Home equity	331,014		5.05	%	45,470		5.39	%	376,484		5.09	%
Other consumer	23,260		5.55	%	110		17.81	%	23,370		5.61	%
Total consumer loans	1,007,333		4.44	%	175,489		4.70	%	1,182,822		4.48	%
Total loans and leases	$	5,909,109	5.13	%	$	394,407	4.83	%	$	6,303,516	5.11	%

The net unamortized deferred loan origination fees and costs included in total loans and leases were $15.7 million and $15.6 million as of December 31, 2019 and 2018, respectively.

The Company's Banks and subsidiaries lend primarily in eastern Massachusetts, southern New Hampshire and Rhode Island, with the exception of equipment financing, 28.1% of which is in the greater New York and New Jersey metropolitan area and 71.9% of which is in other areas in the United States of America as of December 31, 2019, as compared to 26.8% of which is in the greater New York and New Jersey metropolitan area and 73.2% of which is in other areas in the United States of America as of December 31, 2018.

Accretable Yield for the Acquired Loan Portfolio

The following table summarizes activity in the accretable yield for the acquired loan portfolio for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Balance at beginning of year	$	7,905		$	10,522		$	14,353
Accretion	(3,769		)	(4,117		)	(7,801		)
Reclassification from nonaccretable difference as a result from changes in expected cash flows	1,086			1,500			3,970
Balance at end of year	$	5,222		$	7,905		$	10,522

On a quarterly basis, subsequent to acquisition, management reforecasts the expected cash flows for acquired ASC 310-30 loans, taking into account prepayment speeds, probability of default and loss given defaults. Management compares cash flow projections per the reforecast to the original cash flow projections and determines whether any reduction in cash flow expectations are due to deterioration, or if the change in cash flow expectation is related to noncredit events. This cash flow analysis is used to evaluate the need for a provision for loan and lease losses and/or prospective yield adjustments. These

accretable yield adjustments, which are subject to continued re-assessment, will be recognized over the remaining lives of those pools.

Related Party Loans

The Banks' authority to extend credit to their respective directors and executive officers, as well as to entities controlled by such persons, is currently governed by the requirements of the Sarbanes-Oxley Act and Regulation O of the FRB. Among other things, these provisions require that extensions of credit to insiders (1) be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and (2) not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the Banks' capital. In addition, the extensions of credit to insiders must be approved by the applicable Bank's Board of Directors.

The following table summarizes the change in the total amounts of loans and advances, to directors, executive officers and their affiliates for the periods indicated. All loans were performing as of December 31, 2019.



	Year Ended December 31,
	2019			2018
	(In Thousands)
Balance at beginning of year	$	46,771		$	47,941
New loans granted during the year	34			2,842
Loans reclassified as insider loans	16,800			—
Advances on lines of credit	8,652			193
Repayments	(1,857		)	(4,205		)
Balance at end of year	$	70,400		$	46,771

Unfunded commitments on extensions of credit to related parties totaled $12.8 million and $5.9 million as of December 31, 2019 and 2018, respectively.

Loans and Leases Pledged as Collateral

As of December 31, 2019 and 2018, there were $3.0 billion and $3.0 billion, respectively, of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of December 31, 2019 and 2018.