10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One) 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           N/A           to                                 .

Commission file number 0-23695

BROOKLINE BANCORP INC.

(Exact name of registrant as specified in its charter)

Delaware			04-3402944
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
131 Clarendon Street	Boston	MA	02116
(Address of principal executive offices)			(Zip Code)

(617) 425-4600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BRKL	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12-b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller Reporting Company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   ☐  No  ☒   

At July 31, 2021, the number of shares of common stock, par value $0.01 per share, outstanding was 78,192,589.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

FORM 10-Q

Table of Contents

		Page
Part I	Financial Information
Item 1.	Unaudited Consolidated Financial Statements
	Unaudited Consolidated Balance Sheets at June 30, 2021 and December 31, 2020	1
	Unaudited Consolidated Statements of Income for the Three and Six Months Ended June 30, 2021 and 2020	2
	Unaudited Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2021 and 2020	3
	Unaudited Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2021 and 2020	4
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	6
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	82
Item 4.	Controls and Procedures	84
Part II	Other Information
Item 1.	Legal Proceedings	85
Item 1A.	Risk Factors	85
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85
Item 3.	Defaults Upon Senior Securities	85
Item 4.	Mine Safety Disclosures	85
Item 5.	Other Information	85
Item 6.	Exhibits	86
	Signatures	87

PART I — FINANCIAL INFORMATION

Item 1. Unaudited Consolidated Financial Statements

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Unaudited Consolidated Balance Sheets
	At June 30, 2021		At December 31, 2020
	(In Thousands Except Share Data)
ASSETS
Cash and due from banks	$	36,079	$	36,069
Short-term investments	284,370		398,848
Total cash and cash equivalents	320,449		434,917
Investment securities available-for-sale	694,151		745,822
Equity securities held-for-trading	—		526
Total investment securities	694,151		746,348
Loans and leases:
Commercial real estate loans	3,815,581		3,823,826
Commercial loans and leases	2,038,851		2,274,899
Consumer loans	1,165,843		1,170,828
Total loans and leases	7,020,275		7,269,553
Allowance for loan and lease losses	(106,474)		(114,379)
Net loans and leases	6,913,801		7,155,174
Restricted equity securities	31,627		49,786
Premises and equipment, net of accumulated depreciation of $84,191 and $82,233, respectively	71,240		71,568
Right-of-use asset operating leases	22,682		24,143
Deferred tax asset	41,324		40,129
Goodwill	160,427		160,427
Identified intangible assets, net of accumulated amortization of $39,212 and $38,752, respectively	2,692		3,152
Other real estate owned ("OREO") and repossessed assets, net	372		6,515
Other assets	203,199		250,265
Total assets	$	8,461,964	$	8,942,424
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,926,713	$	1,592,205
Interest-bearing deposits	4,967,988		5,318,491
Total deposits	6,894,701		6,910,696
Borrowed funds:
Advances from the Federal Home Loan Bank of Boston ("FHLBB")	204,154		648,849
Subordinated debentures and notes	83,821		83,746
Other borrowed funds	75,039		87,652
Total borrowed funds	363,014		820,247
Operating lease liabilities	22,682		24,143
Mortgagors' escrow accounts	6,231		5,901
Reserve for unfunded credits	13,142		13,071
Accrued expenses and other liabilities	189,942		226,588
Total liabilities	7,489,712		8,000,646
Commitments and contingencies (Note 12)
Stockholders' Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively	852		852
Additional paid-in capital	738,557		737,178
Retained earnings, partially restricted	304,466		264,892
Accumulated other comprehensive income	6,089		16,490
Treasury stock, at cost; 6,536,478 shares and 6,525,783 shares, respectively	(77,493)		(77,343)
Unallocated common stock held by Employee Stock Ownership Plan ("ESOP"); 37,890 shares and 51,114 shares, respectively	(219)		(291)
Total stockholders' equity	972,252		941,778
Total liabilities and stockholders' equity	$	8,461,964	$	8,942,424

See accompanying notes to unaudited consolidated financial statements.

1

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Income

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	75,026	$	77,416	$	150,035	$	156,975
Debt securities	3,121		3,701		6,239		6,677
Marketable and restricted equity securities	233		908		534		1,686
Short-term investments	42		99		81		308
Total interest and dividend income	78,422		82,124		156,889		165,646
Interest expense:
Deposits	5,380		12,778		12,087		29,018
Borrowed funds	1,936		5,058		4,587		10,628
Total interest expense	7,316		17,836		16,674		39,646
Net interest income	71,106		64,288		140,215		126,000
(Credit) provision for credit losses	(3,331)		5,347		(5,478)		59,461
Net interest income after provision for credit losses	74,437		58,941		145,693		66,539
Non-interest income:
Deposit fees	3,015		1,929		5,296		4,387
Loan fees	607		513		1,160		1,063
Loan level derivative income, net	7		1,440		481		3,596
Gain (loss) on investment securities, net	1		586		(6)		1,916
Gain on sales of loans and leases held-for-sale	538		299		1,247		419
Other	1,742		1,468		2,526		4,182
Total non-interest income	5,910		6,235		10,704		15,563
Non-interest expense:
Compensation and employee benefits	25,161		24,619		50,982		49,838
Occupancy	3,832		3,825		7,836		7,778
Equipment and data processing	4,697		4,155		9,190		8,858
Professional services	1,245		1,056		2,471		2,707
FDIC insurance	657		858		1,701		1,236
Advertising and marketing	1,110		1,017		2,210		2,092
Amortization of identified intangible assets	228		311		460		647
Other	1,036		3,268		3,927		6,701
Total non-interest expense	37,966		39,109		78,777		79,857
Income before provision for income taxes	42,381		26,067		77,620		2,245
Provision (benefit) for income taxes	10,779		6,496		19,564		(50)
Net income	$	31,602	$	19,571	$	58,056	$	2,295
Earnings per common share:
Basic	$	0.40	$	0.25	$	0.74	$	0.03
Diluted	0.40		0.25		0.74		0.03
Weighted average common shares outstanding during the year:
Basic	78,150,364		78,849,282		78,147,076		79,165,372
Diluted	78,470,451		79,015,274		78,437,275		79,340,524
Dividends paid per common share	$	0.120	$	0.115	$	0.235	$	0.230

See accompanying notes to unaudited consolidated financial statements.

2

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Net income (loss)	$	31,602	$	19,571	$	58,056	$	2,295
Investment securities available-for-sale:
Unrealized securities holding gains (losses)	5,135		3,952		(13,346)		25,115
Income tax (expense) benefit	(1,132)		(867)		2,941		(5,533)
Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes	4,003		3,085		(10,405)		19,582
Less reclassification adjustments for securities gains (losses) included in net income:
Gain (loss) on sales of securities, net	—		634		—		2,987
Income tax expense (benefit)	—		(140)		—		(660)
Net reclassification adjustments for securities gains (losses) included in net income	—		494		—		2,327
Net unrealized securities holding gains (losses)	4,003		2,591		(10,405)		17,255
Cash flow hedges:
Change in fair value of cash flow hedges	8		—		9		—
Reclassification adjustment for (income) expense recognized in earnings	(4)		—		(5)		—
Net change in fair value of cash flow hedges	4		—		4		—
Other comprehensive income (loss), net of taxes	4,007		2,591		(10,401)		17,255
Comprehensive income (loss)	$	35,609	$	22,162	$	47,655	$	19,550

See accompanying notes to unaudited consolidated financial statements.

3

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Changes in Stockholders' Equity

Three Months Ended June 30, 2021 and 2020

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Unallocated Common Stock Held by ESOP		Total Stockholders' Equity
	(In Thousands)
Balance at March 31, 2021	$	852	$	737,882	$	282,301	$	2,082	$	(77,463)	$	(255)	$	945,399
Net income	—		—		31,602		—		—		—		31,602
Other comprehensive income (loss)	—		—		—		4,007		—		—		4,007
Common stock dividends of $0.120 per share	—		—		(9,383)		—		—		—		(9,383)
Restricted stock awards issued, net of awards surrendered	—		30		—		—		(30)		—		—
Compensation under recognition and retention plans	—		584		(54)		—		—		—		530
Common stock held by ESOP committed to be released (6,612 shares)	—		61		—		—		—		36		97
Balance at June 30, 2021	$	852	$	738,557	$	304,466	$	6,089	$	(77,493)	$	(219)	$	972,252

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Unallocated Common Stock Held by ESOP		Total Stockholders' Equity
	(In Thousands)
Balance at March 31, 2020	$	852	$	737,422	$	227,359	$	16,947	$	(69,617)	$	(395)	$	912,568
Net income	—		—		19,571		—		—		—		19,571
Other comprehensive income (loss)	—		—		—		2,591		—		—		2,591
Common stock dividends of $0.115 per share	—		—		(9,076)		—		—		—		(9,076)
Compensation under recognition and retention plan	—		701		(46)		—		45		—		700
Common stock held by ESOP committed to be released (7,107 shares)	—		32		—		—		—		27		59
Balance at June 30, 2020	$	852	$	738,155	$	237,808	$	19,538	$	(69,572)	$	(368)	$	926,413

See accompanying notes to unaudited consolidated financial statements.

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Changes in Stockholders' Equity

Six Months Ended June 30, 2021 and 2020

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Unallocated Common Stock Held by ESOP		Total Stockholders' Equity
	(In Thousands)
Balance at December 31, 2020	$	852	$	737,178	$	264,892	$	16,490	$	(77,343)	$	(291)	$	941,778
Net income	—		—		58,056		—		—		—		58,056
Other comprehensive income (loss)	—		—		—		(10,401)		—		—		(10,401)
Common stock dividends of $0.235 per share	—		—		(18,375)		—		—		—		(18,375)
Restricted stock awards issued, net of awards surrendered	—		150		—		—		(150)		—		—
Compensation under recognition and retention plans	—		1,121		(107)		—		—		—		1,014
Common stock held by ESOP committed to be released (13,224 shares)	—		108		—		—		—		72		180
Balance at June 30, 2021	$	852	$	738,557	$	304,466	$	6,089	$	(77,493)	$	(219)	$	972,252

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive  Income (Loss)		Treasury Stock		Unallocated Common Stock Held by ESOP		Total Stockholders' Equity
	(In Thousands)
Balance at December 31, 2019	$	852	$	736,601	$	265,376	$	2,283	$	(59,073)	$	(433)	$	945,606
Net Income	—		—		2,295		—		—		—		2,295
Other comprehensive income (loss)	—		—		—		17,255		—		—		17,255
Common stock dividends of $0.230 per share	—		—		(18,249)		—		—		—		(18,249)
Compensation under recognition and retention plans	—		1,459		(91)		—		(90)		—		1,278
Treasury stock, repurchase shares	—		—		—		—		(10,409)		—		(10,409)
Common stock held by ESOP committed to be released (14,214 shares)	—		95		—		—		—		65		160
Adoption of ASU 2016-13 (CECL)	—		—		(11,523)		—		—		—		(11,523)
Balance at June 30, 2020	$	852	$	738,155	$	237,808	$	19,538	$	(69,572)	$	(368)	$	926,413

See accompanying notes to unaudited consolidated financial statements.

5

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

	Six Months Ended June 30,
	2021		2020
	(In Thousands)
Cash flows from operating activities:
Net income	$	58,056	$	2,295
Adjustments to reconcile net income to net cash provided from operating activities:
(Credit) provision for credit losses	(5,478)		59,461
Deferred income tax expense (benefit)	1,746		(22,539)
Depreciation of premises and equipment	2,805		3,025
Amortization of investment securities premiums and discounts, net	1,643		1,048
Amortization of deferred loan and lease origination costs, net	3,057		3,913
Amortization of identified intangible assets	460		647
Amortization of debt issuance costs	50		51
Accretion of acquisition fair value adjustments, net	(48)		(389)
Loss (gain) on investment securities, net	6		(1,916)
Gain on sales of loans and leases held-for-sale	(1,247)		(419)
Gain on sales of OREO and other repossessed assets, net	(2,108)		—
Write-down of OREO and other repossessed assets	165		830
Compensation under recognition and retention plans	1,120		1,370
ESOP shares committed to be released	180		160
Net change in:
Cash surrender value of bank-owned life insurance	(505)		(509)
Equity securities held-for-trading	520		518
Other assets	47,641		(120,680)
Accrued expenses and other liabilities	(36,753)		106,198
Net cash provided from operating activities	71,310		33,064
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	—		131,499
Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale	108,519		56,194
Purchases of investment securities available-for-sale	(71,837)		(438,658)
Proceeds from maturities, calls, and principal repayments of investment securities held to maturity	—		6,302
Proceeds from redemption/sales of restricted equity securities	19,120		3,662
Purchase of restricted equity securities	(961)		(21,482)
Proceeds from sales of loans and leases held-for-investment, net	720		5,901
Net decrease (increase) in loans and leases	243,765		(685,516)
Purchase of premises and equipment, net	(2,638)		(1,906)
Proceeds from sales of OREO and other repossessed assets	8,838		3,148
Net cash provided from (used for) investing activities	305,526		(940,856)
			(Continued)

See accompanying notes to unaudited consolidated financial statements.

6

	Six Months Ended June 30,
	2021		2020
	(In Thousands)
Cash flows from financing activities:
Increase in demand checking, NOW, savings and money market accounts	628,655		679,855
(Decrease) increase in certificates of deposit	(644,606)		(69,356)
Proceeds from FHLBB advances	113,300		2,225,600
Repayment of FHLBB advances	(557,995)		(1,716,499)
(Decrease) in other borrowed funds, net	(12,613)		(5,258)
Increase (decrease) in mortgagors' escrow accounts, net	330		(765)
Repurchases of common stock	—		(10,410)
Payment of dividends on common stock	(18,375)		(18,249)
Net cash (used for) provided from financing activities	(491,304)		1,084,918
Net (decrease) increase in cash and cash equivalents	(114,468)		177,126
Cash and cash equivalents at beginning of period	434,917		77,790
Cash and cash equivalents at end of period	$	320,449	$	254,916
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest on deposits, borrowed funds and subordinated debt	$	17,572	$	40,577
Income taxes	11,720		13,160
Non-cash investing activities:
Transfer from loans to other real estate owned	$	752	$	2,801

See accompanying notes to unaudited consolidated financial statements.

7

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

(1) Basis of Presentation

Overview

Brookline Bancorp, Inc. (the "Company") is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company and Bank Rhode Island ("BankRI"), a Rhode Island-chartered financial institution (collectively referred to as the "Banks"). The Banks are both members of the Federal Reserve System. The Company is also the parent of Brookline Securities Corp. ("BSC"). The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries.

Brookline Bank, which includes its wholly-owned subsidiaries, Longwood Securities Corp. ("LSC"), Eastern Funding LLC ("Eastern Funding") and First Ipswich Insurance Agency, operates 30 full-service banking offices in the greater Boston metropolitan area with two additional lending offices. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., Macrolease Corporation ("Macrolease"), BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 20 full-service banking offices in the greater Providence, Rhode Island area.

The Banks' activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in New England, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and investment advisory services. The Company also provides specialty equipment financing through its subsidiaries Eastern Funding, which is based in New York City, New York, and Macrolease, which is based in Plainview, New York, respectively.

The Company and the Banks are supervised, examined and regulated by the Board of Governors of the Federal Reserve System (the "FRB"). As a Massachusetts-chartered trust company, Brookline Bank is also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks (the "DOB"). As a Rhode Island-chartered financial institution, BankRI is subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation.

The Federal Deposit Insurance Corporation ("FDIC") offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also subject to supervision, examination and regulation by the FDIC. As previously disclosed, on July 31, 2019, Brookline Bank converted its charter from a Massachusetts savings bank to a Massachusetts-chartered trust company and ended its membership in the Depositors Insurance Fund (the “DIF”), a private industry-sponsored fund which insures Massachusetts-chartered bank deposit balances in excess of federal deposit insurance coverage. Brookline Bank’s growth in deposit size necessitated its withdrawal from the DIF and the concurrent charter conversion. Brookline Bank’s deposit accounts are and will continue to be insured by the deposit insurance fund of the FDIC up to applicable limits. Term deposits in excess of the FDIC insurance coverage will continue to be insured by the DIF until they reach maturity.

Basis of Financial Statement Presentation

The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for credit losses, the determination of fair market values of assets and liabilities, including

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

acquired loans, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances.

The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.

Reclassification

Certain previously reported amounts have been reclassified to conform to the current year's presentation.

(2) Recent Accounting Pronouncements

Accounting Standards Adopted in 2021 and 2020

In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaced the previous GAAP method of calculating credit losses. Previously, GAAP required the use of the incurred loss methodology, which used a higher threshold at which probable losses were calculated and recorded. ASU 2016-13 requires the use of an expected loss methodology, referred to as the current expected credit loss (“CECL”) methodology, which requires institutions to account for lifetime expected losses that previously would not have been part of the calculation. The CECL methodology incorporates future forecasting in addition to historical and current measures. The Company adopted all of the above mentioned ASU as of January 1, 2020. The standard had an impact on the Company's consolidated balance sheet. On adoption, the Company recognized an increase in the allowance for loan and lease losses of $6.6 million, and an increase in the reserve for unfunded commitments of $8.9 million. The net, after-tax impact of the increase in the allowance for loan and lease losses and reserve for unfunded commitments was a decrease to retained earnings of $11.5 million shown in the Consolidated Statements of Changes in Stockholders’ Equity. Additional details can be found in Notes 3, 4 and 5.

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

(3) Investment Securities

Adoption of Topic 326

Effective January 1, 2020, the Company adopted the provisions of ASU 2016-13 using the modified retrospective method. There was no allowance for credit loss ("ACL") on available-for-sale debt securities recognized as of June 30, 2021.

The following tables set forth investment securities available-for-sale, held-to-maturity and equity securities held-for-trading at the dates indicated:

	At June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	245,960	$	3,583	$	3,209	$	246,334
GSE CMOs	35,149		803		8		35,944
GSE MBSs	240,300		6,124		370		246,054
Corporate debt obligations	22,239		869		—		23,108
U.S. Treasury bonds	142,080		2,154		2,020		142,214
Foreign government obligations	500		—		3		497
Total investment securities available-for-sale	$	686,228	$	13,533	$	5,610	$	694,151

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	273,820	$	5,455	$	630	$	278,645
GSE CMOs	44,937		1,103		12		46,028
GSE MBSs	312,658		10,956		5		323,609
Corporate debt obligations	22,299		1,168		—		23,467
U.S. Treasury bonds	70,339		3,318		80		73,577
Foreign government obligations	500		—		4		496
Total investment securities available-for-sale	$	724,553	$	22,000	$	731	$	745,822
Equity securities held-for-trading							$	526

As of June 30, 2021, the fair value of all investment securities available-for-sale was $694.2 million, with net unrealized gains of $7.9 million, compared to a fair value of $745.8 million and net unrealized gains of $21.3 million as of December 31, 2020. As of June 30, 2021, $214.2 million, or 30.9% of the portfolio, had gross unrealized losses of $5.6 million, compared to $86.9 million, or 11.7% of the portfolio, with gross unrealized losses of $0.7 million as of December 31, 2020.

As of June 30, 2021, the Company did not hold any equity securities held-for-trading, compared to a fair value of $0.5 million as of December 31, 2020.

Investment Securities as Collateral

As of June 30, 2021 and December 31, 2020, respectively, $402.1 million and $448.7 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and Federal Home Loan Bank of Boston ("FHLBB") borrowings. The Banks had no outstanding FRB borrowings as of June 30, 2021 and December 31, 2020.

10

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Allowance for Credit Losses-Available-for-Sale Securities

For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $2.6 million, as of June 30, 2021 and December 31, 2020.

A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended June 30, 2021 and 2020.

Assessment for Available for Sale Securities for Impairment

Investment securities as of June 30, 2021 and December 31, 2020 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:

	At June 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	91,341	$	3,018	$	7,874	$	191	$	99,215	$	3,209
GSE CMOs	—		—		924		8		924		8
GSE MBSs	49,570		367		374		3		49,944		370
U.S. Treasury bonds	63,658		2,020		—		—		63,658		2,020
Foreign government obligations	—		—		497		3		497		3
Temporarily impaired investment securities available-for-sale	204,569		5,405		9,669		205		214,238		5,610
Total temporarily impaired investment securities	$	204,569	$	5,405	$	9,669	$	205	$	214,238	$	5,610

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	At December 31, 2020
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	72,745	$	630	$	—	$	—	$	72,745	$	630
GSE CMOs	832		7		872		5		1,704		12
GSE MBSs	2,102		5		97		—		2,199		5
U.S. Treasury bonds	9,750		80		—		—		9,750		80
Foreign government obligations	—		—		496		4		496		4
Temporarily impaired investment securities available-for-sale	85,429		722		1,465		9		86,894		731
Total temporarily impaired investment securities	$	85,429	$	722	$	1,465	$	9	$	86,894	$	731

The Company performs regular analyses of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers.

Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income.

Investment Securities Available-For-Sale Impairment Analysis

The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were impaired as of June 30, 2021.The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of June 30, 2021. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods.

U.S. Government-Sponsored Enterprises

The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, mortgage-backed securities ("MBSs"), and collateralized mortgage obligations ("CMOs"). GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLBB and the Federal Farm Credit Bank. As of June 30, 2021, the Company held GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in its available-for-sale portfolio with an estimated fair value of $5.6 million, all of which were backed explicitly by the full faith and credit of the U.S. Government, compared to $7.3 million as of December 31, 2020.

As of June 30, 2021, the Company owned 54 GSE debentures with a total fair value of $246.3 million, and a net unrealized gain of $0.4 million. As of December 31, 2020, the Company held 54 GSE debentures with a total fair value of

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

$278.6 million, with a net unrealized gain of $4.8 million. As of June 30, 2021, 10 of the 54 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 7 of the 54 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase GSE debentures. This compares to the same period in 2020 when the Company purchased $169.0 million GSE debentures. During the six months ended June 30, 2020, the Company transferred 9 held-to-maturity GSE debentures with a total fair value of $25.5 million to the available-for-sale portfolio.

As of June 30, 2021, the Company owned 33 GSE CMOs with a total fair value of $35.9 million and a net unrealized gain of $0.8 million. As of December 31, 2020, the Company held 33 GSE CMOs with a total fair value of $46.0 million with a net unrealized gain of $1.1 million. As of June 30, 2021 and December 30, 2020, 2 of the 33 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021 and 2020, the Company did not purchase any GSE CMOs.

As of June 30, 2021, the Company owned 139 GSE MBSs with a total fair value of $246.1 million and a net unrealized gain of $5.8 million. As of December 31, 2020, the Company held 140 GSE MBSs with a total fair value of $323.6 million with a net unrealized gain of $11.0 million. As of June 30, 2021, 20 of the 139 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 17 of the 140 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase any GSE MBSs. This compares to the same period in 2020 when the Company purchased $248.4 million GSE MBSs. During the six months ended June 30, 2020, the Company transferred 8 held-to-maturity GSE MBSs with a total fair value of $9.0 million to the available-for-sale portfolio.

Corporate Obligations

The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of June 30, 2021, the Company held 6 corporate obligation securities with a total fair value of $23.1 million and a net unrealized gain of $0.9 million. As of December 31, 2020, the Company held 6 corporate obligation securities with a total fair value of $23.5 million and a net unrealized gain of $1.2 million. As of June 30, 2021 and December 31, 2020, none of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. During the six months ended June 30, 2021 and 2020, the Company did not purchase any corporate obligations. During the six months ended June 30, 2020, the Company transferred 1 held-to-maturity corporate obligation security with a total fair value of $0.5 million to the available-for-sale portfolio.

U.S. Treasury Bonds

The Company invests in securities issued by the U.S. government. As of June 30, 2021, the Company owned 19 U.S. Treasury bonds with a total fair value of $142.2 million and an unrealized gain of $0.1 million. This compares to 12 U.S. Treasury bonds with a total fair value of $73.6 million and an unrealized gain of $3.2 million as of December 31, 2020. As of June 30, 2021, 7 of the 19 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 1 of the 12 securities in this portfolio was an unrealized loss position. During the six months ended June 30, 2021 the Company purchased $71.8 million U.S. Treasury bonds, compared to the same period in 2020 when the Company purchased $21.2 million U.S. Treasury bonds.

Municipal Obligations

As of June 30, 2021 and December 31, 2020, the Company did not own any municipal obligation securities. During the six months ended June 30, 2021 and 2020, the Company did not purchase any municipal obligations. During the six months ended June 30, 2020, the Company transferred 93 held-to-maturity municipal obligations securities with a total fair value of $47.7 million to the available-for-sale portfolio.

Foreign Government Obligations

As of June 30, 2021 and December 31, 2020, the Company owned 1 foreign government obligation security with a fair value of $0.5 million, which approximated cost. As of June 30, 2021 and December 31, 2020 respectively, the security was in

13

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

an unrealized loss position. During the six months ended June 30, 2021 and 2020, the Company did not purchase any foreign government obligations.

Equity Securities Held-for-Trading

From time to time, the Company will invest in equity securities held-for-trading. As of June 30, 2021, the Company did not own any equity securities held-for-trading. As of December 31, 2020, the Company owned equity securities held-for-trading with a fair value of $0.5 million.

Portfolio Maturities

The final stated maturities of the debt securities are as follows for the periods indicated:

	At June 30, 2021						At December 31, 2020
	Amortized Cost		Estimated Fair Value		Weighted Average Rate		Amortized Cost		Estimated Fair Value		Weighted Average Rate
	(Dollars in Thousands)
Investment securities available-for-sale:
Within 1 year	$	60,865	$	61,478	1.98	%	$	31,633	$	32,013	2.02	%
After 1 year through 5 years	251,542		256,988		1.95	%	146,274		153,262		2.22	%
After 5 years through 10 years	115,322		120,226		2.26	%	222,271		225,568		1.43	%
Over 10 years	258,499		255,459		1.31	%	324,375		334,979		1.86	%
	$	686,228	$	694,151	1.77	%	$	724,553	$	745,822	1.81	%

Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows.

As of June 30, 2021, issuers of debt securities with an estimated fair value of $67.8 million had the right to call or prepay the obligations. Of the $67.8 million, approximately $12.7 million matures in 1 - 5 years, $45.2 million matures in 6 - 10 years, and $9.9 million matures after ten years. As of December 31, 2020, issuers of debt securities with an estimated fair value of approximately $90.8 million had the right to call or prepay the obligations. Of the $90.8 million, $12.9 million matures in 1-5 years, and $68.1 million matures in 6 - 10 years, and $9.8 million matures after ten years.

Security Sales

The Company sold $0.5 million of investment securities available-for-sale or equity securities held-for-trading during the six months ended June 30, 2021. This compares to $132.0 million securities sold during the six months ended June 30, 2020.

Sales of investment and restricted equity securities are summarized as follows:

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	$	520	$	132,014
Gross gains from securities sales	1		3,152
Gross losses from securities sales	—		(167)
Gain on sales of securities, net	$	1	$	2,985

14

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

(4) Loans and Leases

The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:

	At June 30, 2021				At December 31, 2020
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars In Thousands)
Commercial real estate loans:
Commercial real estate	$	2,646,104	3.45	%	$	2,578,773	3.58	%
Multi-family mortgage	967,891		3.44	%	1,013,432		3.53	%
Construction	201,586		3.65	%	231,621		3.49	%
Total commercial real estate loans	3,815,581		3.46	%	3,823,826		3.56	%
Commercial loans and leases:
Commercial (1)	918,345		2.86	%	1,131,668		2.55	%
Equipment financing	1,074,088		7.07	%	1,092,461		7.26	%
Condominium association	46,418		4.46	%	50,770		4.55	%
Total commercial loans and leases	2,038,851		5.11	%	2,274,899		4.86	%
Consumer loans:
Residential mortgage	799,027		3.61	%	791,317		3.74	%
Home equity	331,038		3.26	%	346,652		3.26	%
Other consumer	35,778		2.93	%	32,859		3.04	%
Total consumer loans	1,165,843		3.49	%	1,170,828		3.58	%
Total loans and leases	$	7,020,275	3.93	%	$	7,269,553	3.97	%

______________________________________________________________________

(1) Including $348,411 and $489,216 of PPP loans as of June 30, 2021 and December 31, 2020, respectively. These loans are fully guaranteed by the SBA and therefore, have not been reserved for in the allowance for credit losses as of June 30, 2021 and December 31, 2020.

Accrued interest on loans and leases, which were excluded from the amortized cost of loans and leases totaled $18.5 million and $20.5 million at June 30, 2021 and December 31, 2020, respectively, and were included in other assets in the accompanying consolidated balance sheets.

The net unamortized deferred loan origination costs included in total loans and leases were $2.6 million and $4.1 million as of June 30, 2021 and December 31, 2020, respectively.

The Banks and their subsidiaries lend primarily in all New England states, with the exception of equipment financing, 27.7% of which is in the greater New York and New Jersey metropolitan area and 72.3% of which is in other areas in the United States of America as of June 30, 2021.

Loans and Leases Pledged as Collateral

As of June 30, 2021 and 2020, there were $3.1 billion and $3.5 billion respectively of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of June 30, 2021 and December 31, 2020.

15

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

(5) Allowance for Loan and Lease Losses

The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:

	Three Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2021	$	79,929	$	25,825	$	4,083	$	109,837
Charge-offs	(28)		(1,184)		(9)		(1,221)
Recoveries	11		489		126		626
(Credit) provision for loan and lease losses excluding unfunded commitments	(5,903)		3,234		(99)		(2,768)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Three Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2020	$	82,179	$	26,774	$	4,228	$	113,181
Charge-offs	—		(1,794)		(9)		(1,803)
Recoveries	94		296		30		420
(Credit) provision for loan and lease losses excluding unfunded commitments	7,738		(338)		355		7,755
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

	Six Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2020	$	80,132	$	29,498	$	4,749	$	114,379
Charge-offs	(28)		(3,323)		(13)		(3,364)
Recoveries	11		819		179		1,009
(Credit) provision for loan and lease losses excluding unfunded commitments	(6,106)		1,370		(814)		(5,550)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Six Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2019	$	30,285	$	24,826	$	5,971	$	61,082
Adoption of ASU 2016-13 (CECL)	11,694		(2,672)		(2,390)		$	6,632
Charge-offs	—		(4,321)		(21)		(4,342)
Recoveries	94		543		88		725
Provision for loan and lease losses	47,938		6,562		956		55,456
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $13.1 million and $13.1 million at June 30, 2021 and December 31, 2020, respectively.

16

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Provision for Credit Losses

The provisions for credit losses are set forth below for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Provision for loan and lease losses:
Commercial real estate	$	(5,903)	$	7,738	$	(6,106)	$	47,938
Commercial	3,234		(338)		1,370		6,562
Consumer	(99)		355		(814)		956
Total (credit) provision for loan and lease losses	(2,768)		7,755		(5,550)		55,456
Unfunded commitments	(563)		(2,408)		72		4,005
Total (credit) provision for credit losses	$	(3,331)	$	5,347	$	(5,478)	$	59,461

Allowance for Loan and Lease Losses Methodology

Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized.

To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The models include: Commercial real estate ("CRE"), Commercial and industrial ("C&I"), and Retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. The expected loss estimates for two small commercial portfolios and a runoff auto portfolio are based on historical loss rates.

Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available.

The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two to three years from the forecast start date and largely completes within the first five years. Because the reasonable and supportable economic forecasts used in the models are mean reverting, the models are therefore considered to be implicitly mean reverting.

Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at June 30, 2021 reflect the immediate and longer-term effects of the COVID-19 pandemic as well as the associated policies and fiscal support provided by local and national authorities.

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a scalar for each model. Each scalar was calculated by examining the loss rates of peer banks that have similar operations and asset bases to the Company and comparing these peer group loss rates to the model results. Peer group loss rates were used in the scalar calculation because management believes the peer group’s historical losses provide a better reflection of the Company’s current portfolio and operating procedures than the Company’s historical losses. Qualitative adjustments are also applied to the results of the three loss rate models.

For June 30, 2021, management applied qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts as compared to previous quarters. Additional qualitative adjustments were applied to the Commercial, Multifamily, and commercial real estate (includes owner occupied, non-owner occupied, and construction) portfolios based on the Company’s historical loss experience and the loss experience of the Company’s peer group. High risk segments of the Eastern Funding and Macrolease portfolios also received additional qualitative adjustments based on recent loss history and expected liquidation values. These qualitative adjustments resulted in additions to reserves for all portfolios, as compared to the model output.

Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary.

Beginning January 1, 2020, the Company implemented the CECL methodology to calculate the allowance for credit losses. Prior to January 1, 2020, the Company calculated the allowance for loan and lease losses using the incurred losses methodology.

The general allowance for loan and lease losses was $105.4 million as of June 30, 2021, compared to $112.1 million as of December 31, 2020. The reduction in the ACL is attributable to continued low level of net charge-offs, an improving macro-economic forecast, and a reduction in qualitative adjustments that consider longer-term risks.

The specific allowance for loan and lease losses was $1.1 million as of June 30, 2021, compared to $2.3 million as of December 31, 2020. The specific allowance decreased by $1.2 million during the six months ended June 30, 2021 primarily due the decrease in specific reserves for the remaining individually evaluated loans due to improving collection prospects.The specific allowance for loan and lease losses was $1.1 million as of June 30, 2021 and March 31, 2021.

As of June 30, 2021, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios.

Credit Quality Assessment

At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a troubled debt restructuring ("TDR") loan.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor

18

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk.

The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows:

1 -4 Rating—Pass

Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral.

5 Rating—Other Assets Especially Mentioned ("OAEM")

Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

6 Rating—Substandard

Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

7 Rating—Doubtful

Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

8 Rating—Definite Loss

Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets.

Credit Quality Information

The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of June 30, 2021.

	June 30, 2021
	2021	2020	2019	2018	2017	Prior	Revolving Loans	Revolving Loans Converted to Term Loans	Total
		(In Thousands)
Commercial Real Estate

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Pass	$	250,161	$	353,110	$	367,648	$	247,536	$	217,389	$	1,054,660	$	50,918	$	14,237	$	2,555,659
OAEM	687		834		27,398		—		4,902		42,220		—		—		76,041
Substandard	—		195		—		—		1,604		8,611		—		3,994		14,404
Total	250,848		354,139		395,046		247,536		223,895		1,105,491		50,918		18,231		2,646,104
Multi-Family Mortgage
Pass	60,027		124,950		144,801		115,350		93,077		394,645		4,784		27,518		965,152
OAEM	—		—		—		—		—		2,739		—		—		2,739
Total	60,027		124,950		144,801		115,350		93,077		397,384		4,784		27,518		967,891
Construction
Pass	4,663		52,601		46,573		87,246		658		6,023		—		—		197,764
Substandard	—		—		3,822		—		—		—		—		—		3,822
Total	4,663		52,601		50,395		87,246		658		6,023		—		—		201,586
Commercial
Pass	312,085		152,581		47,241		38,867		20,149		125,055		192,823		1,359		890,160
OAEM	—		1,592		3,933		—		12,840		7		1,521		—		19,893
Substandard	—		31		—		107		299		2,511		4,485		857		8,290
Doubtful	—		—		—		—		—		1		—		1		2
Total	312,085		154,204		51,174		38,974		33,288		127,574		198,829		2,217		918,345
Equipment Financing
Pass	149,995		304,555		265,845		168,156		89,716		74,929		2,139		618		1,055,953
OAEM	—		196		1,185		480		172		691		—		—		2,724
Substandard	—		1,094		2,939		5,013		3,529		1,873		—		—		14,448
Doubtful	—		1		381		1		6		574		—		—		963
Total	149,995		305,846		270,350		173,650		93,423		78,067		2,139		618		1,074,088
Condominium Association
Pass	717		9,132		8,390		4,531		6,301		15,624		1,586		40		46,321
Substandard	—		—		—		—		—		97		—		—		97
Total	717		9,132		8,390		4,531		6,301		15,721		1,586		40		46,418

20

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Other Consumer
Pass	613		215		504		1,818		30		765		31,817		14		35,776
Substandard	—		—		—		—		—		1		—		1		2
Total	613		215		504		1,818		30		766		31,817		15		35,778
Total
Pass	778,261		997,144		881,002		663,504		427,320		1,671,701		284,067		43,786		5,746,785
OAEM	687		2,622		32,516		480		17,914		45,657		1,521		—		101,397
Substandard	—		1,320		6,761		5,120		5,432		13,093		4,485		4,852		41,063
Doubtful	—		1		381		1		7		575		—		1		966
Total	$	778,948	$	1,001,087	$	920,660	$	669,105	$	450,673	$	1,731,026	$	290,073	$	48,639	$	5,890,211

As of June 30, 2021, there were no loans categorized as definite loss.

For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model.

	At June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Residential
Credit Scores
Over 700	$	95,094	$	111,814	$	75,571	$	49,291	$	44,618	$	152,417	$	3,071	$	—	$	531,876
661 - 700	10,810		21,194		15,573		9,047		13,001		27,049		—		—		96,674
600 and below	2,174		6,034		4,321		3,602		4,205		15,194		—		—		35,530
Data not available*	12,590		11,956		16,217		15,553		13,139		65,134		—		358		134,947
Total	$	120,668	$	150,998	$	111,682	$	77,493	$	74,963	$	259,794	$	3,071	$	358	$	799,027
Home Equity
Credit Scores
Over 700	$	955	$	1,486	$	2,064	$	1,962	$	1,885	$	9,867	$	238,867	$	2,306	$	259,392
661 - 700	75		113		320		464		253		2,112		43,102		396		46,835
600 and below	—		56		104		255		13		514		9,817		923		11,682
Data not available*	—		100		—		—		—		1,295		10,845		889		13,129
Total	$	1,030	$	1,755	$	2,488	$	2,681	$	2,151	$	13,788	$	302,631	$	4,514	$	331,038

_______________________________________________________________________________

* Represents loans and leases for which data are not available.

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BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables present the recorded investment in loans in each class as of December 31, 2020, by credit quality indicator.

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Commercial Real Estate
Pass	$	352,832	$	412,071	$	282,629	$	255,786	$	243,477	$	944,676	$	55,392	$	12,585	$	2,559,448
OAEM	—		477		—		—		3,312		8,991		—		—		12,780
Substandard	—		—		—		1,261		2		5,220		—		62		6,545
Total	352,832		412,548		282,629		257,047		246,791		958,887		55,392		12,647		2,578,773
Multi-Family Mortgage
Pass	125,434		136,620		162,180		103,997		127,873		304,224		15,845		34,871		1,011,044
OAEM	—		—		—		—		—		2,388		—		—		2,388
Total	125,434		136,620		162,180		103,997		127,873		306,612		15,845		34,871		1,013,432
Construction
Pass	46,249		56,074		112,856		1,799		2,788		404		3,834		—		224,004
Substandard	—		4,853		—		—		2,764		—		—		—		7,617
Total	46,249		60,927		112,856		1,799		5,552		404		3,834		—		231,621
Commercial
Pass	574,542		66,278		41,325		62,112		22,085		113,715		226,495		1,687		1,108,239
OAEM	310		4,850		—		—		35		17		5,382		—		10,594
Substandard	80		—		129		389		29		7,612		3,930		664		12,833
Doubtful	—		—		—		—		—		—		—		2		2
Total	574,932		71,128		41,454		62,501		22,149		121,344		235,807		2,353		1,131,668
Equipment Financing
Pass	332,375		306,231		209,219		121,845		56,241		45,451		636		576		1,072,574
OAEM	196		1,066		290		93		609		85		—		—		2,339
Substandard	402		4,385		5,280		3,545		1,891		631		—		—		16,134
Doubtful	1		64		24		27		1,292		6		—		—		1,414
Total	332,974		311,746		214,813		125,510		60,033		46,173		636		576		1,092,461
Condominium Association
Pass	6,455		9,918		5,399		7,928		5,213		12,682		2,684		379		50,658
Substandard	—		—		—		—		112		—		—		—		112
Total	6,455		9,918		5,399		7,928		5,325		12,682		2,684		379		50,770
Other Consumer
Pass	694		549		1,938		32		570		301		28,755		18		32,857
Substandard	—		—		—		—		—		—		—		2		2
Total	694		549		1,938		32		570		301		28,755		20		32,859
Total

22

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Pass	1,438,581		987,741		815,546		553,499		458,247		1,421,453		333,641		50,116		6,058,824
OAEM	506		6,393		290		93		3,956		11,481		5,382		—		28,101
Substandard	482		9,238		5,409		5,195		4,798		13,463		3,930		728		43,243
Doubtful	1		64		24		27		1,292		6		—		2		1,416
Total	$	1,439,570	$	1,003,436	$	821,269	$	558,814	$	468,293	$	1,446,403	$	342,953	$	50,846	$	6,131,584
As of December 31, 2020, there were no loans categorized as definite loss.

	At December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving		Converted		Total
	(In Thousands)
Residential
Credit Scores
Over 700	$	119,566	$	94,300	$	62,452	$	53,662	$	47,327	$	124,999	$	4,442	$	—	$	506,748
661 - 700	21,820		19,426		10,943		15,616		8,132		23,282		—		—		99,219
600 and below	6,901		5,659		4,763		4,318		4,553		13,997		—		—		40,191
Data not available*	19,209		17,082		16,199		14,153		5,729		71,456		—		1,331		145,159
Total	$	167,496	$	136,467	$	94,357	$	87,749	$	65,741	$	233,734	$	4,442	$	1,331	$	791,317
Home Equity
Credit Scores
Over 700	$	1,546	$	2,832	$	2,440	$	2,770	$	910	$	12,804	$	247,538	$	2,397	$	273,237
661 - 700	122		459		499		566		305		2,793		45,356		1,334		51,434
600 and below	59		108		266		13		39		541		10,139		878		12,043
Data not available*	61		—		—		—		—		1,387		7,330		1,160		9,938
Total	$	1,788	$	3,399	$	3,205	$	3,349	$	1,254	$	17,525	$	310,363	$	5,769	$	346,652

Age Analysis of Past Due Loans and Leases

The following table presents an age analysis of the amortized cost basis in loans and leases as of June 30, 2021.

23

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	At June 30, 2021
	Past Due												Past Due Greater Than 90 Days and Accruing
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual		Non-accrual with No Related Allowance
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	1,157	$	1,517	$	11,225	$	13,899	$	2,632,205	$	2,646,104	$	—	$	11,657	$	11,452
Multi-family mortgage	3,035		—		—		3,035		964,856		967,891		—		—		—
Construction	—		—		—		—		201,586		201,586		—		—		—
Total commercial real estate loans	4,192		1,517		11,225		16,934		3,798,647		3,815,581		—		11,657		11,452
Commercial loans and leases:
Commercial	153		761		1,182		2,096		916,249		918,345		—		3,207		1,723
Equipment financing	3,914		2,451		10,866		17,231		1,056,857		1,074,088		2,850		14,872		5,330
Condominium association	453		85		—		538		45,880		46,418		—		97		—
Total commercial loans and leases	4,520		3,297		12,048		19,865		2,018,986		2,038,851		2,850		18,176		7,053
Consumer loans:
Residential mortgage	1,075		1,119		3,104		5,298		793,729		799,027		301		3,638		3,185
Home equity	363		—		530		893		330,145		331,038		3		744		512
Other consumer	2		5		1		8		35,770		35,778		—		1		—
Total consumer loans	1,440		1,124		3,635		6,199		1,159,644		1,165,843		304		4,383		3,697
Total loans and leases	$	10,152	$	5,938	$	26,908	$	42,998	$	6,977,277	$	7,020,275	$	3,154	$	34,216	$	22,202

There is no interest income recognized on non-accrual loans for the three months ended June 30, 2021.

24

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2020.

	At December 31, 2020
	Past Due												Loans and Leases Past Due Greater Than 90 Days and Accruing				Non-accrual with No Related Allowance
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	18,294	$	12,402	$	7,272	$	37,968	$	2,540,805	$	2,578,773	$	4,722	$	3,300	$	2,580
Multi-family mortgage	813		—		—		813		1,012,619		1,013,432		—		—		—
Construction	—		—		7,617		7,617		224,004		231,621		3,764		3,853		3,853
Total commercial real estate loans	19,107		12,402		14,889		46,398		3,777,428		3,823,826		8,486		7,153		6,433
Commercial loans and leases:
Commercial	451		304		9,171		9,926		1,121,742		1,131,668		3,486		7,702		6,263
Equipment financing	5,970		2,263		9,391		17,624		1,074,837		1,092,461		—		16,757		4,062
Condominium association	282		297		—		579		50,191		50,770		—		112		112
Total commercial loans and leases	6,703		2,864		18,562		28,129		2,246,770		2,274,899		3,486		24,571		10,437
Consumer loans:
Residential mortgage	2,161		648		3,841		6,650		784,667		791,317		—		5,587		5,117
Home equity	580		215		588		1,383		345,269		346,652		3		1,136		824
Other consumer	13		—		1		14		32,845		32,859		—		1		—
Total consumer loans	2,754		863		4,430		8,047		1,162,781		1,170,828		3		6,724		5,941
Total loans and leases	$	28,564	$	16,129	$	37,881	$	82,574	$	7,186,979	$	7,269,553	$	11,975	$	38,448	$	22,811

Impaired Loans and Leases

A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and TDR loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses.

25

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. Periods prior to January 1, 2020 are presented in accordance with accounting rules effective at that time.

	At June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	93	$	922	$	91	$	1,106
Collectively evaluated	73,916		27,442		4,010		105,368
Total	$	74,009	$	28,364	$	4,101	$	106,474
Loans and Leases:
Individually evaluated	$	18,893	$	20,639	$	7,552	$	47,084
Collectively evaluated	3,796,688		2,018,212		1,158,291		6,973,191
Total	$	3,815,581	$	2,038,851	$	1,165,843	$	7,020,275

	At December 31, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	183	$	2,020	$	108	$	2,311
Collectively evaluated	79,949		27,478		4,641		112,068
Total loans and leases	$	80,132	$	29,498	$	4,749	$	114,379
Loans and Leases:
Individually evaluated	$	14,159	$	24,727	$	8,760	$	47,646
Collectively evaluated	3,809,667		2,250,172		1,162,068		7,221,907
Total loans and leases	$	3,823,826	$	2,274,899	$	1,170,828	$	7,269,553

26

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Troubled Debt Restructuring Loans and Leases

The following table sets forth information regarding TDR loans and leases at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Troubled debt restructurings:
On accrual	$	14,387	$	11,483
On nonaccrual	6,410		7,476
Total troubled debt restructurings	$	20,797	$	18,959

Total TDR loans and leases increased by $1.8 million to $20.8 million at June 30, 2021 from $19.0 million at December 31, 2020, primarily driven by 41 new TDR relationships, consisting of 40 equipment financing relationships totaling of $2.9 million, and one $0.8 million residential relationship, partially offset by the payoff of eight TDR relationships totaling of $1.2 million, as well as the payment on a TDR relationships during the six months ended June 30, 2021.

The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows.

	At and for the Three Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Credit Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Amortized Cost
	(Dollars in Thousands)
Equipment financing	28	1,236		1,222		9		483		5	211
Residential mortgage	1	864		864		—		—		—	—
Home equity	1	312		312		—		—		—	—
Total loans and leases	30	$	2,412	$	2,398	$	9	$	483	5	$	211

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

	At and for the Three Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Commercial real estate	—	$	—	$	—	$	—	$	—	1	$	221
Equipment financing	11	1,174		1,160		—		1,160		—	—
Total loans and leases	11	$	1,174	$	1,160	$	—	$	1,160	1	$	221

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

27

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	At and for the Six Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases		Amortized Cost
	(Dollars in Thousands)
Originated:
Commercial real estate	1	$	497	$	497	$	—	$	—	$	—	$	—
Equipment financing	40	2,954		2,922		9		713		5		211
Residential mortgage	1	864		864		—		—		—		—
Home equity	1	312		312		—		—		—		—
Total loans and leases	43	$	4,627	$	4,595	$	9	$	713	5		$	211

	At and for the Six Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses						Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Additional Commitment		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Originated:
Commercial real estate	—	$	—	$	—	$	—	$	—	—		1	$	221
Commercial	2	297		302		—		—		—		—	—
Equipment financing	11	1,174		1,160		—		1,160		—		—	—
Home equity	1	200		200		—		—		—		—	—
Total loans and leases	14	$	1,671	$	1,662	$	—	$	1,160	$	—	1	$	221

The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Extended maturity	$	1,143	$	334	$	2,667	$	636
Adjusted principal	—		44		—		44
Combination maturity, principal, interest rate	1,255		782		1,928		982
Total loans with modifications	$	2,398	$	1,160	$	4,595	$	1,662

The TDR loans and leases that were modified for the three months ended June 30, 2021 and 2020 were $2.4 million and $1.2 million, respectively. The increases in TDR loans and leases that were modified for the three months ended June 30, 2021 were primarily due to the modification of one home equity relationship of $0.3 million, and one residential relationship of $0.9 million during the three months ended June 30, 2021.

The net charge-offs for performing and nonperforming TDR loans and leases for the six month ended June 30, 2021 and 2020 were $0.5 million and $0.6 million respectively.

The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs as of June 30, 2021 was $2.1 million. As of June 30, 2020, there were $1.8 million commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs.

28

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The Coronavirus Aid, Relief and Economic Security ("CARES") Act and regulatory guidance issued by the Federal banking agencies provides that certain short-term loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic are not required to be treated as TDRs under GAAP. As such, the Company suspended TDR accounting for COVID-19 pandemic related loan modifications meeting the loan modification criteria set forth under the CARES Act or as specified in the regulatory guidance. Further, loans granted payment deferrals related to the COVID-19 pandemic are not required to be reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). As of June 30, 2021, the Company granted 4,401 short-term deferments on loan and lease balances of $991.3 million of which 4,250 loans and leases representing balances $895.3 million returned to payment and 151 loans and leases representing balances of $96.0 million remain in deferment. The outstanding deferred loans and leases represent 1.4% of the Company's total loan and lease balances.

(6) Goodwill and Other Intangible Assets

The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Goodwill	$	160,427	$	160,427
Other intangible assets:
Core deposits	1,603		2,063
Trade name	1,089		1,089
Total other intangible assets	2,692		3,152
Total goodwill and other intangible assets	$	163,119	$	163,579

At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million, has an indefinite life and ceased to amortize.

The weighted-average amortization period for the core deposit intangible is 5.61 years.

The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:

Remainder of 2021	$	416
Year ending:
2022	494
2023	263
2024	151
2025	103
2026	74
Thereafter	102
Total	$	1,603

(7) Accumulated Other Comprehensive Income (Loss)

For the six months ended June 30, 2021 and 2020, the Company’s accumulated other comprehensive income (loss) includes the following three components: (i) unrealized holding gains (losses) on investment securities available-for-sale; (ii) change in the fair value of cash flow hedges; and (iii) adjustment of accumulated obligation for postretirement benefits.

29

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:

	Three Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2021	$	2,174	$	7	$	(99)	$	2,082
Other comprehensive income (loss)	4,003		8		—		4,011
Reclassification adjustment for (income) expense recognized in earnings	—		(4)		—		(4)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Three Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2020	$	16,863	$	—	$	84	$	16,947
Other comprehensive income (loss)	3,085		—		—		3,085
Reclassification adjustment for (income) expense recognized in earnings	494		—		—		494
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

	Six Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2020	$	16,582	$	7	$	(99)	$	16,490
Other comprehensive income (loss)	(10,405)		9		—		(10,396)
Reclassification adjustment for (income) expense recognized in earnings	—		(5)		—		(5)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Six Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2019	$	2,199	$	—	$	84	$	2,283
Other comprehensive income (loss)	19,582		—		—		19,582
Reclassification adjustment for (income) expense recognized in earnings	2,327		—		—		2,327
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

(8) Derivatives and Hedging Activities

The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the

30

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging".

The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

As of June 30, 2021, the Company paid its counterparties a fixed weighted average interest rate of 0.10% over a maximum period of 2 years for derivative instruments that are designated as and qualify as cash flow hedging instruments.

The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank.

The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions.

Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets.

The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	June 30, 2021
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	128	$	8,395	$	2,387	$	4,658	$160,737		$	1,010,330	$	1,186,507	$	83,306
Pay fixed, receive variable	128	8,395		2,387		4,658		160,737		1,010,330		1,186,507		83,306
Risk participation-out agreements	37	—		—		6,939		29,276		226,770		262,985		1,289
Risk participation-in agreements	8	—		—		18,859		—		41,102		59,961		232
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	11	$	1,360	$	—	$	—	$	—	$	—	$	1,360	$	62
Sells foreign currency, buys U.S. currency	16	1,362		—		—		—		—		1,362		59

31

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	136	$	—	$	8,541	$	16,447	$	99,014	$	1,090,144	$	1,214,146	$	129,284
Pay fixed, receive variable	136	—		8,541		16,447		99,014		1,090,144		1,214,146		129,284
Risk participation-out agreements	37	—		—		7,009		22,733		222,913		252,655		1,843
Risk participation-in agreements	8	—		—		19,000		—		41,619		60,619		361
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	18	$	1,266	$	—	$	—	$	—	$	—	$	1,266	$	156
Sells foreign currency, buys U.S. currency	20	1,273		—		—		—		—		1,273		148

32

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $146.6 million and $166.5 million in the normal course of business as of June 30, 2021 and December 31, 2020, respectively.

The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.

	At June 30, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	12	$	—	$	12	$	—	$	—	$	12
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	—	$	—	$	89,726
Risk participation-out agreements	1,289		—		1,289		—		—		1,289
Foreign exchange contracts	62		—		62		—		—		62
Total	$	91,089	$	—	$	91,089	$	—	$	—	$	91,089
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	—	$	—	$	—	$	—	$	—	$	—
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	135,300	$	11,280	$	(56,854)
Risk participation-in agreements	232		—		232		—		—		232
Foreign exchange contracts	59		—		59		—		—		59
Total	$	90,017	$	—	$	90,017	$	135,300	$	11,280	$	(56,563)

33

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	At December 31, 2020
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Interest rate derivatives	$	8	$	—	$	8	$	—	$	—	$	8
Loan level derivatives	131,328		—		131,328		—		—		131,328
Risk participation-out agreements	1,843		—		1,843		—		—		1,843
Foreign exchange contracts	156		—		156		—		—		156
Total	$	133,335	$	—	$	133,335	$	—	$	—	$	133,335
Liability derivatives
Loan level derivatives	$	131,328	$	—	$	131,328	$	155,220	$	11,280	$	(35,172)
Risk participation-in agreements	361		—		361		—		—		361
Foreign exchange contracts	148		—		148		—		—		148
Total	$	131,837	$	—	$	131,837	$	155,220	$	11,280	$	(34,663)

The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.

	Fair Value
	Six Months Ended   June 30, 2021		Six Months Ended   June 30, 2020
	(Dollars in Thousands)
Derivatives designated as hedges	$	12	$	(6)
Gain in OCI on derivatives (effective portion), net of tax	$	11	$	(5)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	5	$	—

The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.

34

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

(9) Stock Based Compensation

As of June 30, 2021, the Company had one active equity plan: the 2021 Brookline Bancorp, Inc. Stock Option and Incentive Plan ("Plan") with 1,750,000 authorized shares. As a result of the Plan having been approved by the Company's stockholders at the 2021 annual meeting of stockholders, the Company discontinued granting awards under the 2014 Equity Incentive Plan (the "2014 Plan"), and no further shares will be granted as awards under the 2014 Plan. The Company's 2011 Restricted Stock Plan (the "2011 Plan") expired in July 2021, and the Company has not issued shares from the 2011 Plan since the adoption of the 2014 Plan. The Plan, the 2014 Plan and the 2011 Plan are together referred to as the "Plans."

Of the awarded shares under the 2014 Plan (and the 2011 Plan), generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. These are referred to as "time-based shares". The remaining 50% of each award has a cliff vesting schedule and will vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group comprised of 14 financial institutions. These are referred to as "performance-based shares". If a participant leaves the Company prior to the third anniversary date of an award, any unvested shares are usually forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the participant only when the shares vest.

Under the Plan, shares of the Company's common stock are reserved for issuance as restricted stock awards to officers, employees, and non-employee directors of the Company. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans.

During the three and six months ended June 30, 2021 and June 30, 2020, no shares were issued upon satisfaction of required conditions of the Plans.

Total expense for the Plan was $0.6 million and $0.7 million for the three months ended June 30, 2021 and 2020, respectively. Total expense for the Plan was $1.1 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively.

(10) Earnings per Share ("EPS")

The following table is a reconciliation of basic EPS and diluted EPS:

	Three Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	31,602	$	31,602	$	19,571	$	19,571
Denominator:
Weighted average shares outstanding	78,150,364		78,150,364		78,849,282		78,849,282
Effect of dilutive securities	—		320,087		—		165,992
Adjusted weighted average shares outstanding	78,150,364		78,470,451		78,849,282		79,015,274
EPS	$	0.40	$	0.40	$	0.25	$	0.25

35

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	Six Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	58,056	$	58,056	$	2,295	$	2,295
Denominator:
Weighted average shares outstanding	78,147,076		78,147,076		79,165,372		79,165,372
Effect of dilutive securities	—		290,199		—		175,152
Adjusted weighted average shares outstanding	78,147,076		78,437,275		79,165,372		79,340,524
EPS	$	0.74	$	0.74	$	0.03	$	0.03

(11) Fair Value of Financial Instruments

A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and six months ended June 30, 2021 and June 30, 2020.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	246,334	$	—	$	246,334
GSE CMOs	—		35,944		—		35,944
GSE MBSs	—		246,054		—		246,054
Corporate debt obligations	—		23,108		—		23,108
U.S. Treasury bonds	—		142,214		—		142,214
Foreign government obligations	—		497		—		497
Total investment securities available-for-sale	$	—	$	694,151	$	—	$	694,151
Interest rate derivatives	—		12		—		12
Loan level derivatives	—		89,726		—		89,726
Risk participation-out agreements	—		1,289		—		1,289
Foreign exchange contracts	—		62		—		62
Liabilities:
Loan level derivatives	—		89,726		—		89,726
Risk participation-in agreements	—		232		—		232
Foreign exchange contracts	—		59		—		59

36

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	278,645	$	—	$	278,645
GSE CMOs	—		46,028		—		46,028
GSE MBSs	—		323,609		—		323,609
Corporate debt obligations	—		23,467		—		23,467
U.S. Treasury bonds	—		73,577		—		73,577
Foreign government obligations	—		496		—		496
Total investment securities available-for-sale	$	—	$	745,822	$	—	$	745,822
Equity securities held-for-trading	$	—	$	526	$	—	$	526
Interest rate derivatives	—		8		—		8
Loan level derivatives	—		131,328		—		131,328
Risk participation-out agreements	—		1,843		—		1,843
Foreign exchange contracts	—		156		—		156
Liabilities:
Loan level derivatives	—		131,328		—		131,328
Risk participation-in agreements	—		361		—		361
Foreign exchange contracts	—		148		—		148

Investment Securities Available-for-Sale

The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds, where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, and trust preferred securities, all of which are included in Level 2. As of June 30, 2021 and December 31, 2020, none of the investment securities was valued using pricing models included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security.

Equity Securities Held-for-Trading

The fair value of equity securities held-for-trading is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services. The Company's equity securities are priced this way and are included in Level 1 and Level 2. These prices are validated by comparing the primary pricing source with an alternative pricing source when available.

Derivatives and Hedging Instruments

The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and

37

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities."

There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during the three and six months ended June 30, 2021 and December 31, 2020, respectively.

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	2,018	$	2,018
Repossessed assets	—		372		—		372
Total assets measured at fair value on a non-recurring basis	$	—	$	372	$	2,018	$	2,390

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	3,445	$	3,445
OREO	—		—		5,415		5,415
Repossessed assets	—		1,100		—		1,100
Total assets measured at fair value on a non-recurring basis	$	—	$	1,100	$	8,860	$	9,960

Collateral-Dependent Impaired Loans and Leases

For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses.

Other Real Estate Owned

The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses.

Repossessed Assets

Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2).

38

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.

	Fair Value				Valuation Technique
	At June 30, 2021		At December 31, 2020
	(Dollars in Thousands)
Collateral-dependent impaired loans and leases	$	2,018	$	3,445	Appraisal of collateral (1)
Other real estate owned	—		5,415		Appraisal of collateral (1)

________________________________________________________________________

(1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

Summary of Estimated Fair Values of Financial Instruments

The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.

					Fair Value Measurements at June 30, 2021
	Carrying Value		Estimated Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	$	6,913,801	$	6,894,100	$	—	$	—	$	6,894,100
Restricted equity securities	31,627		31,627		—		—		31,627
Financial liabilities:
Certificates of deposits	1,439,257		1,445,015		—		1,445,015		—
Borrowed funds	363,014		358,056		—		358,056		—

			Fair Value Measurements at December 31, 2020
	Carrying Value	Estimated Fair Value	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	7,155,174	7,116,854	—	—	7,116,854
Restricted equity securities	49,786	49,786	—	—	49,786
Financial liabilities:
Certificates of deposit	2,083,907	2,092,867	—	2,092,867	—
Borrowed funds	820,247	818,681	—	818,681	—

39

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Loans and Leases

The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments.

Restricted Equity Securities

The fair values of certain restricted equity securities are estimated using observable inputs adjusted for other unobservable information, including but not limited to probability assumptions and similar discounts where applicable. These restricted equity securities are considered to be Level 3.

Deposits

The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles).

Borrowed Funds

The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLBB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.

(12) Commitments and Contingencies

Off-Balance Sheet Financial Instruments

The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.

The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

40

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Financial instruments with off-balance-sheet risk at the dates indicated follow:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to originate loans and leases:
Commercial real estate	$	118,828	$	174,240
Commercial	126,158		80,291
Residential mortgage	39,720		30,418
Unadvanced portion of loans and leases	883,648		759,053
Unused lines of credit:
Home equity	602,307		584,881
Other consumer	39,457		38,954
Other commercial	408		408
Unused letters of credit:
Financial standby letters of credit	15,437		14,746
Performance standby letters of credit	12,261		5,903
Commercial and similar letters of credit	5,369		5,105
Loan level derivatives (Notional principal amounts):
Receive fixed, pay variable	1,186,507		1,214,146
Pay fixed, receive variable	1,186,507		1,214,146
Risk participation-out agreements	262,985		252,655
Risk participation-in agreements	59,961		60,619
Foreign exchange contracts (Notional amounts):
Buys foreign currency, sells U.S. currency	1,360		1,266
Sells foreign currency, buys U.S. currency	1,362		1,273

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower.

Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into a loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions. The fair value of these derivatives are presented in Footnote 8.

41

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Lease Commitments

The Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases.

The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company used the FHLB classic advance rates available as of June 30, 2021 as the discount rate to determine the net present value of the remaining lease payments.

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
The components of lease expense were as follow:
Operating lease cost	$	3,119	$	3,233
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	3,179	$	3,302

	At June 30, 2021			At December 31, 2020
	(In Thousands)
Supplemental balance sheet information related to leases was as follows:
Operating Leases
Operating lease right-of-use assets	$	22,682		$	24,143
Operating lease liabilities	22,682			24,143
Weighted Average Remaining Lease Term
Operating leases	6.66			6.95
Weighted Average Discount Rate
Operating leases	3.1		%	3.2		%

42

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

A summary of future minimum rental payments under such leases at the dates indicated follows:

	Minimum Rental Payments
	June 30, 2021
	(In Thousands)
Remainder of 2021	$	2,950
Year ending:
2022	5,763
2023	4,935
2024	3,581
2025	2,470
2026	1,697
Thereafter	3,656
Total	$	25,052
Less imputed interest	(2,370)
Present value of lease liability	$	22,682

Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. The total real estate taxes were $1.0 million and $0.9 million for the six months ended June 30, 2021 and 2020, respectively. Total other expenditures were $0.2 million for both the six months ended June 30, 2021, and 2020. Total rental expense was $3.0 million and $3.1 million for the six months ended June 30, 2021 and 2020, respectively. Total rental expense was $1.5 million and $1.6 million for the three months ended June 30, 2021 and 2020, respectively.

Legal Proceedings

In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.

(13) Revenue from Contracts with Customers

Overview

Revenue from contracts with customers in the scope of ASC 606 ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations.

The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements.

In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported in gross noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue.

A substantial portion of the Company’s revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition.

43

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements (Continued)

Revenue Recognized at a Point in Time

The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction.

Revenue Recognized Over Time

The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks.

44

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe Brookline Bancorp, Inc.’s (the “Company’s”) future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. These statements include, among others, statements regarding the Company’s intent, belief or expectations with respect to economic conditions, trends affecting the Company’s financial condition or results of operations, and the Company’s exposure to market, liquidity, interest-rate and credit risk.

Forward-looking statements are based on the current assumptions underlying the statements and other information with respect to the beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and the financial condition, results of operations, future performance and business are only expectations of future results. Although the Company believes that the expectations reflected in the Company’s forward-looking statements are reasonable, the Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; turbulence in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; changes in general economic conditions on a national basis or in the local markets in which the Company operates; changes in consumer behavior due to changing political, business and economic conditions, including increased unemployment, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risks relating to the Company’s participation in the Paycheck Protection Program, and other pandemic-related legislative and regulatory initiatives and programs; the possibility that future credit losses may be higher than currently expected; due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and other filings submitted to the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Introduction

Brookline Bancorp, Inc., a Delaware corporation, operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island and its subsidiaries ("BankRI"); and Brookline Securities Corp.

As a commercially-focused financial institution with 50 full-service banking offices throughout greater Boston, the north shore of Massachusetts and Rhode Island, the Company, through Brookline Bank and BankRI, offers a wide range of commercial, business and retail banking services, including a full complement of cash management products, foreign exchange services, on-line and mobile banking services, consumer and residential loans and investment advisory services, designed to meet the financial needs of small- to mid-sized businesses and individuals throughout central New England. Specialty lending activities include equipment financing, 27.7% of which is in the greater New York and New Jersey metropolitan area and 72.3% of which is in other areas in the United States of America as of June 30, 2021.

The Company focuses its business efforts on profitably growing its commercial lending businesses, both organically and through acquisitions. The Company’s customer focus, multi-bank structure, and risk management are integral to its organic growth strategy and serve to differentiate the Company from its competitors. As full-service financial institutions, the Banks and their subsidiaries focus their efforts on developing and deepening long-term banking relationships with qualified customers through a full complement of products, excellent customer service, and strong risk management.

The Company manages the Banks under a uniform strategic objective, with one set of uniform policies consistently applied by one executive management team. Within this environment, the Company believes that the ability to make customer decisions locally enhances management's motivation, service levels and, as a consequence, the Company's financial results. As such, while most back-office functions are consolidated at the holding company level, branding and decision-making, including credit decisions and pricing, remain largely local in order to better meet the needs of bank customers and further motivate the

45

Banks’ commercial, business and retail bankers. These credit decisions, at the local level, are executed through corporate policies overseen by the Company's credit department.

The competition for loans and leases and deposits remains intense. The Company expects the operating environment to remain challenging. The volume of loan and lease originations and loan and lease losses will depend, to a large extent, on how the economy performs. Loan and lease growth and deposit growth are also greatly influenced by the rate-setting actions of the FRB. A sustained, low interest rate environment with a flat interest rate curve may negatively impact the Company's yields and net interest margin. While the Company is slightly asset sensitive and should benefit from rising rates, changes in interest rates could also precipitate a change in the mix and volume of the Company's deposits and loans. The future operating results of the Company will depend on its ability to maintain or increase the current net interest margin, while minimizing exposure to credit risk, along with increasing sources of non-interest income, while controlling the growth of non-interest expenses.

The Company and the Banks are supervised, examined and regulated by the FRB. As a Massachusetts-chartered trust company, Brookline Bank is also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks. As a Rhode Island-chartered financial institution, BankRI is also subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation. The FDIC continues to insure each of the Banks’ deposits up to $250,000 per depositor. As previously disclosed, on July 31, 2019, Brookline Bank converted its charter from a Massachusetts savings bank to a Massachusetts-chartered trust company and ended its membership in the Depositors Insurance Fund (the “DIF”), a private industry-sponsored fund which insures Massachusetts-chartered bank deposit balances in excess of federal deposit insurance coverage. Brookline Bank’s growth in deposit size necessitated Brookline Bank’s withdrawal from the DIF and the concurrent charter conversion of Brookline Bank. Brookline Bank’s deposit accounts will continue to be insured by the deposit insurance fund of the FDIC up to applicable limits. Term deposits in excess of the FDIC insurance coverage will continue to be insured by the DIF until they reach maturity.

On March 27, 2020, Congress passed, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to address the economic effects of the COVID-19 pandemic.

•Paycheck Protection Program. The CARES Act appropriated $349 billion for “paycheck protection loans” through the U.S. Small Business Administration's ("SBA's") Paycheck Protection Program ("PPP"). The amount appropriated was subsequently increased to $659 billion. Loans under the PPP that meet SBA requirements may be forgiven in certain circumstances, and are 100% guaranteed by SBA. Additionally, on December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) was signed into law and provides for a second round of PPP loans (the "PPP-2"). On May 4, 2021, the SBA announced that PPP funding has been exhausted and that it has stopped accepting application from most lenders. PPP loans are fully guaranteed by the U.S. government, have an initial term of up to five years and earn interest at a rate of 1%. The Company currently expect a significant portion of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. Through June 30, 2021, the Banks funded a total of 4,700 PPP loans in the aggregate amount of $872.1 million. As of June 30, 2021, $348.4 million in PPP loans remain outstanding, net of deferred feed and costs of $10.3 million. In conjunction with the PPP, the FRB has created a lending facility for qualified financial institutions. The FRB's Paycheck Protection Program Liquidity Facility ("PPPLF") will extend credit to depository institutions with a term of up to five years at an interest rate of 0.35%. Only loans issued under the PPP can be pledged as collateral to access the facility. The Company is participating in the PPPLF program.

•Troubled Debt Restructuring Relief. From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency, a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of June 30, 2021, the Company granted 4,401 short-term deferments on loan and lease balances of $1.0 billion. Of these modifications, 4,250 loans and leases with total balances of $895.3 million have returned to the payment status and 151 loans and leases with total balances of $96.0 million remain on the deferral status, which represents 1.4% of the Company's total loan and lease balances. These short-term deferments are not classified as troubled debt restructured loans and will not be reported as past due provided that they are performing in accordance with the modified terms.

The Company’s common stock is traded on the Nasdaq Global Select MarketSM under the symbol “BRKL.”

46

Selected Financial Data

    The following is based in part on, and should be read in conjunction with, the consolidated financial statements and accompanying notes, and other information appearing elsewhere in this Quarterly Report on Form 10-Q.

	At and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2021			2021			2020			2020			2020
	(Dollars in Thousands, Except Per Share Data)
PER COMMON SHARE DATA
Earnings per share - Basic	$	0.40		$	0.34		$	0.34		$	0.24		$	0.25
Earnings per share - Diluted	0.40			0.34			0.34			0.24			0.25
Book value per share (end of period)	12.44			12.10			12.05			11.84			11.75
Tangible book value per share (end of period) (1)	10.35			10.01			9.96			9.77			9.67
Dividends paid per common share	0.120			0.115			0.115			0.115			0.115
Stock price (end of period)	14.95			15.00			12.04			8.65			10.08
PERFORMANCE RATIOS (2)
Net interest margin (taxable equivalent basis)	3.52		%	3.39		%	3.23		%	3.08		%	3.09		%
Return on average assets	1.48		%	1.21		%	1.20		%	0.83		%	0.88		%
Return on average tangible assets (1)	1.51		%	1.24		%	1.22		%	0.84		%	0.90		%
Return on average stockholders' equity	13.21		%	11.18		%	11.38		%	7.99		%	8.45		%
Return on average tangible stockholders' equity (1)	15.92		%	13.51		%	13.79		%	9.70		%	10.28		%
Dividend payout ratio (1)	29.69		%	33.99		%	33.96		%	48.67		%	46.37		%
Efficiency ratio (3)	49.30		%	55.22		%	55.27		%	57.83		%	55.46		%
ASSET QUALITY RATIOS
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.03		%	0.10		%	0.24		%	0.27		%	0.08		%
Nonperforming loans and leases as a percentage of total loans and leases	0.49		%	0.43		%	0.53		%	0.51		%	0.56		%
Nonperforming assets as a percentage of total assets	0.41		%	0.44		%	0.50		%	0.44		%	0.47		%
Total allowance for loan and lease losses as a percentage of total loans and leases	1.52		%	1.51		%	1.57		%	1.62		%	1.61		%
CAPITAL RATIOS
Stockholders' equity to total assets	11.49		%	11.04		%	10.53		%	10.39		%	10.21		%
Tangible equity ratio (1)	9.75		%	9.31		%	8.86		%	8.73		%	8.56		%
FINANCIAL CONDITION DATA
Total assets	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667
Total loans and leases	7,020,275			7,267,552			7,269,553			7,396,358			7,407,697
Allowance for loan and lease losses	106,474			109,837			114,379			119,971			119,553
Investment securities available-for-sale	694,151			729,901			745,822			783,867			854,505
Investment securities held-to-maturity	—			—			—			—			—
Equity securities held-for-trading	—			518			526			525			1,992
Goodwill and identified intangible assets	163,119			163,347			163,579			163,891			164,203
Total deposits	6,894,701			6,866,786			6,910,696			6,792,523			6,440,233
Total borrowed funds	363,014			546,003			820,247			1,005,045			1,406,669
Stockholders' equity	972,252			945,399			941,778			935,558			926,413
													(Continued)

47

	At and for the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
	(Dollars in Thousands, Except Per Share Data)
EARNINGS DATA
Net interest income	$	71,106	$	69,109	$	68,225	$	65,938	$	64,288
(Credit) provision for credit losses	(3,331)		(2,147)		(2,103)		4,528		5,347
Non-interest income	5,910		4,794		4,219		4,862		6,235
Non-interest expense	37,966		40,811		40,038		40,947		39,109
Net income	31,602		26,454		26,663		18,679		19,571

_______________________________________________________________________________

(1) Refer to "Non-GAAP Financial Measures and Reconciliations to GAAP".

(2) All performance ratios are annualized and are based on average balance sheet amounts, where applicable.

(3) Efficiency ratio is calculated by dividing non-interest expense by the sum of non-interest income and net interest income.

Executive Overview

Balance Sheet

Total assets of $8.5 billion as of June 30, 2021 decreased $480.5 million, or 10.7% on an annualized basis, from December 31, 2020. The decrease was primarily driven by decreases in loans and leases, and cash and cash equivalents.

Cash and cash equivalents as of June 30, 2021 decreased $114.5 million, or 52.6% on an annualized basis, to $320.4 million from December 31, 2020.

Total loans and leases as of June 30, 2021 decreased $249.3 million, or 6.9% on an annualized basis, to $7.0 billion from December 31, 2020. The Company's commercial loan portfolios, which are comprised of commercial real estate loans and commercial loans and leases, totaled $5.9 billion, or 83.4% of total loans and leases as of June 30, 2021, a decrease of $244.3 million, or 8.0% on an annualized basis, from $6.1 billion, or 83.9% of total loans and leases, as of December 31, 2020.

Total deposits of $6.9 billion as of June 30, 2021 decreased $16.0 million, or 0.5% on an annualized basis, from December 31, 2020. Core deposits, which include demand checking, NOW, money market and savings accounts, totaled $5.5 billion, or 79.1% of total deposits as of June 30, 2021, an increase of $628.7 million, or 26.0% on an annualized basis, from $4.8 billion, or 69.8% of total deposits, as of December 31, 2020. Certificate of deposit balances totaled $1.2 billion, or 17.1% of total deposits as of June 30, 2021, a decrease of $211.9 million, or 30.5% on an annualized basis, from $1.4 billion, or 20.1% of total deposits, as of December 31, 2020. Brokered deposits totaled $261.1 million, or 3.8% of total deposits as of June 30, 2021, a decrease of $432.8 million, or 124.7% on an annualized basis, from $693.9 million, or 10.0% of total deposits, as of December 31, 2020

Total borrowed funds as of June 30, 2021 decreased $457.2 million, or 111.5% on an annualized basis, to $363.0 million from December 31, 2020.

Asset Quality

Nonperforming assets as of June 30, 2021 totaled $34.6 million, or 0.41% of total assets, compared to $45.0 million, or 0.50% of total assets, as of December 31, 2020. Net charge-offs for the three months ended June 30, 2021 were $0.6 million, or 0.03% of average loans and leases on an annualized basis, compared to $1.4 million, or 0.08% of average loans and leases on an annualized basis, for the three months ended June 30, 2020.

The ratio of the allowance for loan and lease losses to total loans and leases was 1.52% as of June 30, 2021, compared to 1.57% as of December 31, 2020. On January 1, 2020, the Company implemented the CECL methodology to calculate the allowance for credit losses. Refer also to Note 5, "Allowance for Loan and Lease Losses."

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Capital Strength

The Company is a "well-capitalized" bank holding company as defined in the FRB's Regulation Y. The Company's common equity Tier 1 capital ratio was 11.98% as of June 30, 2021, compared to 11.04% as of December 31, 2020. The Company's Tier 1 leverage ratio was 9.71% as of June 30, 2021, compared to 8.92% as of December 31, 2020. As of June 30, 2021, the Company's Tier 1 risk-based capital ratio was 12.12%, compared to 11.18% as of December 31, 2020. The Company's Total risk-based capital ratio was 14.48% as of June 30, 2021, compared to 13.51% as of December 31, 2020.

The Company's ratio of stockholders' equity to total assets was 11.49% and 10.53% as of June 30, 2021 and December 31, 2020, respectively. The Company's tangible equity ratio was 9.75% and 8.86% as of June 30, 2021 and December 31, 2020, respectively.

Net Income

For the three months ended June 30, 2021, the Company reported net income of $31.6 million, or $0.40 per basic and diluted share, an increase of $12.0 million from net income of $19.6 million, or $0.25 per basic and diluted share, for the three months ended June 30, 2020. This increase in net income is primarily the result of a decrease in the provision for credit losses of $8.7 million, an increase in net interest income of $6.8 million and a decrease in non-interest expense of $1.1 million, partially offset by an increase in the provision for income taxes of $4.3 million and a decrease in non-interest income of $0.3 million. Refer to “Results of Operations" below for further discussion.

For the six months ended June 30, 2021, the Company reported net income of $58.1 million, or $0.74 per basic and diluted share, an increase of $55.8 million from $2.3 million, or $0.03 per basic and diluted share, for the six months ended June 30, 2020. This increase in net income is primarily the result of a decrease in the provision for credit losses of $64.9 million, an increase in net interest income of $14.2 million and a decrease in non-interest expense of $1.1 million, partially offset by an increase in the provision for income taxes of $19.6 million and a decrease in non-interest income of $4.9 million. Refer to “Results of Operations" below for further discussion.

The annualized return on average assets was 1.48% for the three months ended June 30, 2021, compared to 0.88% for the three months ended June 30, 2020. The annualized return on average stockholders' equity was 13.21% for the three months ended June 30, 2021, compared to 8.45% for the three months ended June 30, 2020.

The net interest margin was 3.52% for the three months ended June 30, 2021, up from 3.09% for the three months ended June 30, 2020. The increase in the net interest margin is a result of a decrease of 54 basis points in the Company's overall cost of funds to 0.40% for the three months ended June 30, 2021 from 0.94% for the three months ended June 30, 2020, partially offset by a decrease in the yield on interest-earning assets of 5 basis points to 3.87% for the three months ended June 30, 2021 from 3.92% for the three months ended June 30, 2020.

The net interest margin was 3.45% for the six months ended June 30, 2021, up from 3.19% for the six months ended June 30, 2020. The increase in the net interest margin is a result of a decrease of 65 basis points in the Company's overall cost of funds to 0.45% for the six months ended June 30, 2021 from 1.10% for the six months ended June 30, 2020, partially offset by a decrease in the yield on interest-earning assets of 34 basis points to 3.83% for the six months ended June 30, 2021 from 4.17% for the six months ended June 30, 2020.

The Company’s net interest margin and net interest income is sensitive to the structure and level of interest rates as well as competitive pricing in all loan and deposit categories.

Critical Accounting Policies

The SEC defines “critical accounting policies” as those involving significant judgments and difficult or complex assumptions by management, often as a result of the need to make estimates about matters that are inherently uncertain or variable, which have, or could have, a material impact on the carrying value of certain assets or net income. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. As discussed in the Company’s 2020 Annual Report on Form 10-K, management has identified the determination of the allowance for credit losses and the review of goodwill for impairment as the Company’s most critical accounting policies.

Recent Accounting Developments

In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are

49

met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients provided that those elections are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. The Company has not yet adopted the amendments in this update and is currently in the process of reviewing its contracts and existing processes in order to assess the risks and potential impact to the Company.

Non-GAAP Financial Measures and Reconciliation to GAAP

In addition to evaluating the Company’s results of operations in accordance with GAAP, management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures, such as operating earnings metrics, the return on average tangible assets, return on average tangible equity, the tangible equity ratio, tangible book value per share, and dividend payout ratio. Management believes that these non-GAAP financial measures provide information useful to investors in understanding the Company’s underlying operating performance and trends, and facilitates comparisons with the performance assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of the Company’s capital position.

The following table reconciles the Company’s operating earnings, operating return on average assets and operating return on average stockholders’ equity for the periods indicated:

	At and for the Three Months Ended   June 30,				At and for the Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars in Thousands)
Net income, as reported	$	31,602	$	19,571	$	58,056	$	2,295
Less:
Security gains (after-tax)	1		440		(4)		1,958
Operating earnings	$	31,601	$	19,131	$	58,060	$	337
Basic earnings per share, as reported	$	0.40	$	0.25	$	0.74	$	0.03
Less:
Security gains (after-tax)	—		0.01		—		0.03
Basic operating earnings per share	$	0.40	$	0.24	$	0.74	$	—

The following tables reconcile the Company’s return on average tangible assets and return on average tangible stockholders’ equity for the periods indicated:

50

	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
Operating earnings	$	31,601		$	26,459		$	26,663		$	18,639		$	19,131
Average total assets	$	8,540,228		$	8,714,158		$	8,874,467		$	9,018,672		$	8,869,540
Less: Average goodwill and average identified intangible assets, net	163,224			163,457			163,758			164,072			164,385
Average tangible assets	$	8,377,004		$	8,550,701		$	8,710,709		$	8,854,600		$	8,705,155
Return on average assets (annualized)	1.48		%	1.21		%	1.20		%	0.83		%	0.88		%
Less:
Security gains	—		%	—		%	—		%	—		%	0.02		%
Operating return on average assets (annualized)	1.48		%	1.21		%	1.20		%	0.83		%	0.86		%
Return on average tangible assets (annualized)	1.51		%	1.24		%	1.22		%	0.84		%	0.90		%
Less:
Security gains	—		%	—		%	—		%	—		%	0.02		%
Operating return on average tangible assets (annualized)	1.51		%	1.24		%	1.22		%	0.84		%	0.88		%
Average total stockholders' equity	$	957,207		$	946,482		$	937,294		$	934,632		$	926,239
Less: Average goodwill and average identified intangible assets, net	163,224			163,457			163,758			164,072			164,385
Average tangible stockholders' equity	$	793,983		$	783,025		$	773,536		$	770,560		$	761,854
Return on average stockholders' equity (annualized)	13.21		%	11.18		%	11.38		%	7.99		%	8.45		%
Less:
Security gains	—		%	—		%	—		%	0.01		%	0.19		%
Operating return on average stockholders' equity (annualized)	13.21		%	11.18		%	11.38		%	7.98		%	8.26		%
Return on average tangible stockholders' equity (annualized)	15.92		%	13.51		%	13.79		%	9.70		%	10.28		%
Less:
Security gains	—		%	—		%	—		%	0.02		%	0.24		%
Operating return on average tangible stockholders' equity (annualized)	15.92		%	13.51		%	13.79		%	9.68		%	10.04		%

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	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
Net income, as reported	$	31,602		$	26,454		$	26,663		$	18,679		$	19,571
Average total assets	$	8,540,228		$	8,714,158		$	8,874,467		$	9,018,672		$	8,869,540
Less: Average goodwill and average identified intangible assets, net	163,224			163,457			163,758			164,072			164,385
Average tangible assets	$	8,377,004		$	8,550,701		$	8,710,709		$	8,854,600		$	8,705,155
Return on average tangible assets (annualized)	1.51		%	1.24		%	1.22		%	0.84		%	0.90		%
Average total stockholders' equity	$	957,207		$	946,482		$	937,294		$	934,632		$	926,239
Less: Average goodwill and average identified intangible assets, net	163,224			163,457			163,758			164,072			164,385
Average tangible stockholders' equity	$	793,983		$	783,025		$	773,536		$	770,560		$	761,854
Return on average tangible stockholders' equity (annualized)	15.92		%	13.51		%	13.79		%	9.70		%	10.28		%

The following table reconciles the Company's tangible equity ratio for the periods indicated:

	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
Total stockholders' equity	$	972,252		$	945,399		$	941,778		$	935,558		$	926,413
Less: Goodwill and identified intangible assets, net	163,119			163,347			163,579			163,891			164,203
Tangible stockholders' equity	$	809,133		$	782,052		$	778,199		$	771,667		$	762,210
Total assets	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667
Less: Goodwill and identified intangible assets, net	163,119			163,347			163,579			163,891			164,203
Tangible assets	$	8,298,845		$	8,396,463		$	8,778,845		$	8,836,301		$	8,905,464
Tangible equity ratio	9.75		%	9.31		%	8.86		%	8.73		%	8.56		%

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The following table reconciles the Company's tangible book value per share for the periods indicated:

	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
	(Dollars in Thousands)
Tangible stockholders' equity	$	809,133	$	782,052	$	778,199	$	771,667	$	762,210
Common shares issued	85,177,172		85,177,172		85,177,172		85,177,172		85,177,172
Less:
Treasury shares	6,536,478		6,534,602		6,525,783		5,629,854		5,859,708
Unallocated ESOP	37,890		44,502		51,114		58,227		65,334
Unvested restricted stock	448,105		449,981		458,800		487,318		398,188
Common shares outstanding	78,154,699		78,148,087		78,141,475		79,001,773		78,853,942
Tangible book value per share	$	10.35	$	10.01	$	9.96	$	9.77	$	9.67

The following table reconciles the Company's dividend payout ratio for the periods indicated:

	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
Dividends paid	$	9,383		$	8,992		$	9,055		$	9,092		$	9,076
Net income, as reported	$	31,602		$	26,454		$	26,663		$	18,679		$	19,571
Dividend payout ratio	29.69		%	33.99		%	33.96		%	48.67		%	46.37		%

	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
Allowance for loan and lease losses	$	106,474		$	109,837		$	114,379		$	119,971		$	119,553
Total loans and leases	$	7,020,275		$	7,267,552		$	7,269,553		$	7,396,358		$	7,407,697
Less: Total PPP loans	348,411			604,790			489,216			568,383			565,768
Total loans and leases excluding PPP loans	$	6,671,864		$	6,662,762		$	6,780,337		$	6,827,975		$	6,841,929
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans	1.60		%	1.65		%	1.69		%	1.76		%	1.75		%

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Financial Condition

Loans and Leases

The following table summarizes the Company's portfolio of loans and leases receivables as of the dates indicated:

	At June 30, 2021				At December 31, 2020
	Balance		Percent of Total		Balance		Percent of Total
	(Dollars in Thousands)
Commercial real estate loans:
Commercial real estate	$	2,646,104	37.7	%	$	2,578,773	35.4	%
Multi-family mortgage	967,891		13.8	%	1,013,432		13.9	%
Construction	201,586		2.9	%	231,621		3.2	%
Total commercial real estate loans	3,815,581		54.4	%	3,823,826		52.5	%
Commercial loans and leases:
Commercial	918,345		13.0	%	1,131,668		15.6	%
Equipment financing	1,074,088		15.3	%	1,092,461		15.0	%
Condominium association	46,418		0.7	%	50,770		0.7	%
Total commercial loans and leases	2,038,851		29.0	%	2,274,899		31.3	%
Consumer loans:
Residential mortgage	799,027		11.4	%	791,317		10.9	%
Home equity	331,038		4.7	%	346,652		4.8	%
Other consumer	35,778		0.5	%	32,859		0.5	%
Total consumer loans	1,165,843		16.6	%	1,170,828		16.2	%
Total loans and leases	7,020,275		100.0	%	7,269,553		100.0	%
Allowance for loan and lease losses	(106,474)				(114,379)
Net loans and leases	$	6,913,801			$	7,155,174

The following table sets forth the growth in the Company’s loan and lease portfolios during the six months ended June 30, 2021:

	At June 30, 2021		At December 31, 2020		Dollar Change		Percent Change (Annualized)
	(Dollars in Thousands)
Commercial real estate	$	3,815,581	$	3,823,826	$	(8,245)	-0.9	%
Commercial	2,038,851		2,274,899		(236,048)		-41.5	%
Consumer	1,165,843		1,170,828		(4,985)		-1.7	%
Total loans and leases	$	7,020,275	$	7,269,553	$	(249,278)	(13.72)	%

The Company's loan portfolio consists primarily of first mortgage loans secured by commercial, multi-family and residential real estate properties located in the Company's primary lending area, loans to business entities, including commercial lines of credit, loans to condominium associations and loans and leases used to finance equipment used by small businesses. The Company also provides financing for construction and development projects, home equity and other consumer loans.

The Company employs seasoned commercial lenders and retail bankers who rely on community and business contacts as well as referrals from customers, attorneys and other professionals to generate loans and deposits. Existing borrowers are also an important source of business since many of them have more than one loan outstanding with the Company. The Company's ability to originate loans depends on the strength of the economy, trends in interest rates, and levels of customer demand and market competition.

The Company's current policy is that a total credit exposure to one obligor relationship may not exceed $50.0 million unless approved by the Company's Credit Committee. As of June 30, 2021, there was one borrower with loans and commitments over $50.0 million. The total of those loans and commitments was $57.3 million, or 0.3% of total loans and commitments, as of June 30, 2021. As of December 31, 2020, there were two borrowers with loans and commitments over

54

$50.0 million. The total of those loans and commitments was $114.4 million, or 1.3% of total loans and commitments, as of December 31, 2020.

The Company has written underwriting policies to control the inherent risks in loan origination. The policies address approval limits, loan-to-value ratios, appraisal requirements, debt service coverage ratios, loan concentration limits and other matters relevant to loan underwriting.

Commercial Real Estate Loans

The commercial real estate portfolio is comprised of commercial real estate loans, multi-family mortgage loans, and construction loans and is the largest component of the Company's overall loan portfolio, representing 54.4% of total loans and leases outstanding as of June 30, 2021.

Typically, commercial real estate loans are larger in size and involve a greater degree of risk than owner-occupied residential mortgage loans. Loan repayment is usually dependent on the successful operation and management of the properties and the value of the properties securing the loans. Economic conditions can greatly affect cash flows and property values.

A number of factors are considered in originating commercial real estate and multi-family mortgage loans. The qualifications and financial condition of the borrower (including credit history), as well as the potential income generation and the value and condition of the underlying property, are evaluated. When evaluating the qualifications of the borrower, the Company considers the financial resources of the borrower, the borrower's experience in owning or managing similar property and the borrower's payment history with the Company and other financial institutions. Factors considered in evaluating the underlying property include the net operating income of the mortgaged premises before debt service and depreciation, the debt service coverage ratio (the ratio of cash flow before debt service to debt service), the use of conservative capitalization rates, and the ratio of the loan amount to the appraised value. Generally, personal guarantees are obtained from commercial real estate loan borrowers.

Commercial real estate and multi-family mortgage loans are typically originated for terms of five to fifteen years with amortization periods of 20 to 30 years. Many of the loans are priced at inception on a fixed-rate basis generally for periods ranging from two to five years with repricing periods for longer-term loans. When possible, prepayment penalties are included in loan covenants on these loans. For commercial customers who are interested in loans with terms longer than five years, the Company offers loan level derivatives to accommodate customer need.

The Company's urban and suburban market area is characterized by a large number of apartment buildings, condominiums and office buildings. As a result, commercial real estate and multi-family mortgage lending has been a significant part of the Company's activities for many years. These types of loans typically generate higher yields, but also involve greater credit risk. Many of the Company's borrowers have more than one multi-family or commercial real estate loan outstanding with the Company.

The Company's commercial real estate portfolio is composed primarily of loans secured by apartment buildings ($922.4 million), office buildings ($642.5 million), retail stores ($592.2 million), industrial properties ($534.5 million), mixed-use properties ($282.6 million), lodging services ($152.5 million) and food services ($55.2 million) as of June 30, 2021. At that date, approximately 96.2% of the commercial real estate loans outstanding were secured by properties located in New England.

Construction and development financing is generally considered to involve a higher degree of risk than long-term financing on improved, occupied real estate and thus has lower concentration limits than do other commercial credit classes. Risk of loss on a construction loan is largely dependent upon the accuracy of the initial estimate of construction costs, the estimated time to sell or rent the completed property at an adequate price or rate of occupancy, and market conditions. If the estimates and projections prove to be inaccurate, the Company may be confronted with a project which, upon completion, has a value that is insufficient to assure full loan repayment.

Criteria applied in underwriting construction loans for which the primary source of repayment is the sale of the property are different from the criteria applied in underwriting construction loans for which the primary source of repayment is the stabilized cash flow from the completed project. For those loans where the primary source of repayment is from resale of the property, in addition to the normal credit analysis performed for other loans, the Company also analyzes project costs, the attractiveness of the property in relation to the market in which it is located and demand within the market area. For those construction loans where the source of repayment is the stabilized cash flow from the completed project, the Company analyzes not only project costs but also how long it might take to achieve satisfactory occupancy and the reasonableness of projected rental rates in relation to market rental rates.

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Commercial Loans

The Company's commercial loan and lease portfolio is comprised of commercial loans, equipment financing loans and leases and condominium association loans and represented 29.0% of total loans outstanding as of June 30, 2021.

The Company's commercial loan and lease portfolio is composed primarily of loans and leases to small to medium sized businesses ($663.3 million), transportation services ($364.4 million), food services ($203.9 million), manufacturing ($109.4 million), recreation services ($105.9 million), rental and leasing services ($94.9 million), and retail ($94.0 million) as of June 30, 2021.

The Company provides commercial banking services to companies in its market area. Approximately 50.2% of the commercial loans outstanding as of June 30, 2021 were made to borrowers located in New England. The remaining 49.8% of the commercial loans outstanding were made to borrowers in other areas in the United States of America, primarily by the Company's equipment financing divisions. Product offerings include lines of credit, term loans, letters of credit, deposit services and cash management. These types of credit facilities have as their primary source of repayment cash flows from the operations of a business. Interest rates offered are available on a floating basis tied to the prime rate or a similar index or on a fixed-rate basis referenced on the Federal Home Loan Bank of Boston ("FHLBB") index.

Credit extensions are made to established businesses on the basis of loan purpose and assessment of capacity to repay as determined by an analysis of their financial statements, the nature of collateral to secure the credit extension and, in most instances, the personal guarantee of the owner of the business as well as industry and general economic conditions. The Company also participates in U.S. Government programs such as the SBA 7A program and as an SBA preferred lender. Included in the commercial loans balances are the PPP loans totaling $348.4 million as of June 30, 2021.

The Company’s equipment financing divisions focus on market niches in which its lenders have deep experience and industry contacts, and on making loans to customers with business experience. An important part of the Company’s equipment financing loan origination volume comes from equipment manufacturers and existing customers as they expand their operations. The equipment financing portfolio is composed primarily of loans to finance laundry, tow trucks, fitness, dry cleaning and convenience store equipment. Approximately 14.6% of the commercial loans outstanding in the equipment financing divisions were made to borrowers located primarily in the greater New York and New Jersey metropolitan area. Typically, the loans are priced at a fixed rate of interest and require monthly payments over their 3- to 7-year life. The yields earned on equipment financing loans are higher than those earned on the commercial loans made by the Banks because they involve a higher degree of credit risk. Equipment financing customers are typically small-business owners who operate with limited financial resources and who face greater risks when the economy weakens or unforeseen adverse events arise. Because of these characteristics, personal guarantees of borrowers are usually obtained along with liens on available assets. The size of loan is determined by an analysis of cash flow and other characteristics pertaining to the business and the equipment to be financed, based on detailed revenue and profitability data of similar operations.

Loans to condominium associations are for the purpose of funding capital improvements, are made for five- to ten-year terms and are secured by a general assignment of condominium association revenues. Among the factors considered in the underwriting of such loans are the level of owner occupancy, the financial condition and history of the condominium association, the attractiveness of the property in relation to the market in which it is located and the reasonableness of estimates of the cost of capital improvements to be made. Depending on loan size, funds are advanced as capital improvements are made and, in more complex situations, after completion of engineering inspections.

Consumer Loans

The consumer loan portfolio, which is comprised of residential mortgage loans, home equity loans and lines of credit, and other consumer loans, represented 16.6% of total loans outstanding as of June 30, 2021. The Company focuses its mortgage and home equity lending on existing and new customers within its branch networks in its urban and suburban marketplaces in the greater Boston and Providence metropolitan areas.

The Company originates adjustable- and fixed-rate residential mortgage loans secured by one- to four-family residences. Each residential mortgage loan granted is subject to a satisfactorily completed application, employment verification, credit history and a demonstrated ability to repay the debt. Generally, loans are not made when the loan-to-value ratio exceeds 80% unless private mortgage insurance is obtained and/or there is a financially strong guarantor. Appraisals are performed by outside independent fee appraisers.

Underwriting guidelines for home equity loans and lines of credit are similar to those for residential mortgage loans. Home equity loans and lines of credit are limited to no more than 80% of the appraised value of the property securing the loan including the amount of any existing first mortgage liens.

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Other consumer loans have historically been a modest part of the Company's loan originations. As of June 30, 2021, other consumer loans equaled $35.8 million, or 0.5% of total loans outstanding.

Asset Quality

Criticized and Classified Assets

The Company's management rates certain loans and leases as "other assets especially mentioned" ("OAEM"), "substandard" or "doubtful" based on criteria established under banking regulations. These loans and leases are collectively referred to as "criticized" assets. Loans and leases rated OAEM have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects of the loan or lease at some future date. Loans and leases rated as substandard are inadequately protected by the payment capacity of the obligor or of the collateral pledged, if any. Substandard loans and leases have a well-defined weakness or weaknesses that jeopardize the liquidation of debt and are characterized by the distinct possibility that the Company will sustain some loss if existing deficiencies are not corrected. Loans and leases rated as doubtful have well-defined weaknesses that jeopardize the orderly liquidation of debt and partial loss of principal is likely. As of June 30, 2021, the Company had $143.4 million of total assets that were designated as criticized. This compares to $72.8 million of assets designated as criticized as of December 31, 2020. The increase of $70.6 million in criticized assets was primarily driven by nine commercial real estate relationships totaling $76.1 million, two commercial relationships totaling $4.4 million which became criticized, partially offset by the pay off of one construction relationship of $3.7 million, as well as the relationships which were upgraded to pass risk rating during the six month ended June 30, 2021.

Nonperforming Assets

"Nonperforming assets" consist of non-accrual loans and leases, other real estate owned ("OREO") and other repossessed assets. Under certain circumstances, the Company may restructure the terms of a loan or lease as a concession to a borrower, except for acquired loans and leases which are individually evaluated against expected performance on the date of acquisition. These restructured loans and leases are generally considered "nonperforming loans and leases" until a history of collection of at least six months on the restructured terms of the loan or lease has been established. OREO consists of real estate acquired through foreclosure proceedings and real estate acquired through acceptance of a deed in lieu of foreclosure. Other repossessed assets consist of assets that have been acquired through foreclosure that are not real estate and are included in other assets on the Company's unaudited consolidated balance sheets.

Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Prior to the adoption of ASC 326, loans categorized as ASC 310-30 (purchased loans with deteriorating credit quality) accrued regardless of past due status. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on non-accrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on non-accrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six months of performance has been achieved.

In cases where a borrower experiences financial difficulties and the Company makes or reasonably expects to make certain concessionary modifications to contractual terms, the loan is classified as a TDR. In determining whether a debtor is experiencing financial difficulties, the Company considers, among other factors, if the debtor is in payment default or is likely to be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor's entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at market terms for debt with similar risk characteristics.

As of June 30, 2021, the Company had nonperforming assets of $34.6 million, representing 0.41% of total assets, compared to nonperforming assets of $45.0 million, or 0.50% of total assets as of December 31, 2020. The decrease of $10.4 million in nonperforming assets was primarily driven by the payoffs of one commercial relationship of $4.3 million, three residential relationships totaling $0.8 million, and several equipment finance relationships totaling $1.9 million. Additionally,there was one commercial relationship classified as OREO which was sold in the second quarter in the amount of $5.4 million as well as one construction relationship of $3.8 million, and three residential relationships totaling $1.1 million that were removed from non-accrual status. There were partially offset by the relationships that were placed on non-accrual status during the six month ended June 30, 2021.

The Company evaluates the underlying collateral of each non-accrual loan and lease and continues to pursue the collection of interest and principal. Management believes that the current level of nonperforming assets remains manageable

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relative to the size of the Company's loan and lease portfolio. If economic conditions were to worsen or if the marketplace were to experience prolonged economic stress, it is likely that the level of nonperforming assets would increase, as would the level of charged-off loans.        

Past Due and Accruing

As of June 30, 2021, the Company had loans and leases greater than 90 days past due and accruing of $3.2 million, or 0.04% of total loans and leases, compared to $12.0 million, or 0.16% of total loans and leases, as of December 31, 2020, representing a decrease of $8.8 million. The decrease in past due and accruing loans was primarily due to one commercial real estate relationship becoming current for $4.7 million, and the payoffs of one construction relationship for $3.8 million, and one commercial relationship of $3.4 million. Partially offset by several equipment financing relationships totaling $2.8 million, and one residential relationship of $0.3 million becoming past due greater than 90 days and accruing for the six month ended June 30, 2021.

The following table sets forth information regarding nonperforming assets for the periods indicated:

	At June 30, 2021			At December 31, 2020
	(Dollars in Thousands)
Nonperforming loans and leases:
Nonaccrual loans and leases:
Commercial real estate	$	11,657		$	3,300
Multi-family mortgage	—			—
Construction	—			3,853
Total commercial real estate loans	11,657			7,153
Commercial	3,207			7,702
Equipment financing	14,872			16,757
Condominium association	97			112
Total commercial loans and leases	18,176			24,571
Residential mortgage	3,638			5,587
Home equity	744			1,136
Other consumer	1			1
Total consumer loans	4,383			6,724
Total nonaccrual loans and leases	34,216			38,448
Other real estate owned	—			5,415
Other repossessed assets	372			1,100
Total nonperforming assets	$	34,588		$	44,963
Loans and leases past due greater than 90 days and accruing	$	3,154		$	11,975
Total delinquent loans and leases 61-90 days past due	5,938			16,129
Restructured loans and leases not included in nonperforming assets	14,387			11,483
Total nonperforming loans and leases as a percentage of total loans and leases	0.49		%	0.53		%
Total nonperforming assets as a percentage of total assets	0.41		%	0.50		%
Total delinquent loans and leases 61-90 days past due as a percentage of total loans and leases	0.08		%	0.22		%

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Troubled Debt Restructuring Loans and Leases

Total TDR loans and leases increased by $1.8 million to $20.8 million at June 30, 2021 from $19.0 million at December 31, 2020, the increase was primarily driven by 41 new TDR relationships, consisting of 40 equipment financing relationships totaling of $2.9 million, and one $0.8 million residential relationship, partially offset by the payoff of eight TDR relationships totaling of $1.2 million, as well as the payment on a TDR relationships during the six months ended June 30, 2021.

As of June 30, 2021, total TDR loans included $6.1 million of commercial loans, $7.9 million of equipment financing loans and leases, $2.7 million of residential mortgage loans, $2.2 million of home equity loans, and $2.0 million of commercial real estate loans. As of December 31, 2020, total TDR loans included $6.5 million of commercial loans, $6.7 million of equipment financing loans and leases, $2.1 million of residential mortgage loans, $2.1 million of home equity loans, and $1.6 million of commercial real estate loans.

The following table sets forth information regarding TDR loans and leases at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(Dollars in Thousands)
Troubled debt restructurings:
On accrual	$	14,387	$	11,483
On nonaccrual	6,410		7,476
Total troubled debt restructurings	$	20,797	$	18,959

Changes in TDR loans and leases were as follows for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars in Thousands)
Balance at beginning of period	$	18,959	$	22,299	$	18,959	$	23,180
Additions	2,412		1,174		4,627		1,671
Net charge-offs	(490)		(473)		(830)		(607)
Repayments	(84)		(6,856)		(1,959)		(8,100)
Balance at end of period	$	20,797	$	16,144	$	20,797	$	16,144

From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 pandemic (the “national emergency”), a financial institution may elect to suspend the requirements under GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR, including impairment accounting. This TDR relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. Through June 30, 2021, the Company granted 4,401 short-term deferments on loan and lease balances of $991.3 million of which 4,250 loans and leases representing balances $895.3 million have returned to payment and 151 loans and leases representing balances of $96.0 million remain in deferment. The outstanding deferred loans and leases represent 1.4% of the Company's total loan and lease balances

Allowance for Credit Losses

The allowance for credit losses consists of general and specific allowances and reflects management's estimate of expected loan and lease losses over the life of the loan or lease. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for credit losses on a quarterly basis. Management continuously evaluates and challenges inputs and assumptions in the allowance for credit losses.

While management evaluates currently available information in establishing the allowance for credit losses, future adjustments to the allowance for loan and lease losses may be necessary if conditions differ substantially from the assumptions used in making the evaluations. Management performs a comprehensive review of the allowance for credit losses on a quarterly basis. In addition, various regulatory agencies, as an integral part of their examination process, periodically review a financial

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institution's allowance for credit losses and carrying amounts of other real estate owned. Such agencies may require the financial institution to recognize additions or reductions to the allowance based on their judgments about information available to them at the time of their examination.

The Company’s allowance methodology provides a quantification of probable losses in the portfolio. Under the current methodology, management estimates losses over the life of the loan using reasonable and supportable forecasts. Forecasts, loan data, and model documentation are extensively analyzed and reviewed throughout the quarter to ensure estimated losses are accurate at quarter end. Qualitative adjustments are applied when model output does not align with management expectations. These adjustments are thoroughly reviewed and documented to provide clarity and a reasonable basis for any deviations from the model. For June 30, 2021, qualitative adjustments were applied to the CRE, C&I, and Retail portfolios resulting in a net addition in total reserves compared to modeled calculations.

The following tables present the changes in the allowance for loan and lease losses by portfolio category for the three and six months ended June 30, 2021 and 2020.

	At and for the Three Months Ended June 30, 2021
	Commercial Real Estate			Commercial			Consumer			Total
	(In Thousands)
Balance at March 31, 2021	$	79,929		$	25,825		$	4,083		$	109,837
Charge-offs	(28)			(1,184)			(9)			(1,221)
Recoveries	11			489			126			626
Provision (credit) for loan and lease losses	(5,903)			3,234			(99)			(2,768)
Balance at June 30, 2021	$	74,009		$	28,364		$	4,101		$	106,474
Total loans and leases	$	3,815,581		$	2,038,851		$	1,165,843		$	7,020,275
Total allowance for loan and lease losses as a percentage of total loans and leases	1.94		%	1.39		%	0.35		%	1.52		%

	At and for the Three Months Ended June 30, 2020
	Commercial Real Estate			Commercial			Consumer			Total
	(In Thousands)
Balance at March 31, 2020	$	82,179		$	26,774		$	4,228		$	113,181
Charge-offs	—			(1,794)			(9)			(1,803)
Recoveries	94			296			30			420
Provision (credit) for loan and lease losses	7,738			(338)			355			7,755
Balance at June 30, 2020	$	90,011		$	24,938		$	4,604		$	119,553
Total loans and leases	$	3,837,703		$	2,361,463		$	1,208,531		$	7,407,697
Total allowance for loan and lease losses as a percentage of total loans and leases	2.35		%	1.06		%	0.38		%	1.61		%

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	At and for the Six Months Ended June 30, 2021
	Commercial Real Estate			Commercial			Consumer			Total
	(In Thousands)
Balance at December 31, 2020	$	80,132		$	29,498		$	4,749		$	114,379
Charge-offs	(28)			(3,323)			(13)			(3,364)
Recoveries	11			819			179			1,009
Provision (credit) for loan and lease losses	(6,106)			1,370			(814)			(5,550)
Balance at June 30, 2021	$	74,009		$	28,364		$	4,101		$	106,474
Total loans and leases	$	3,815,581		$	2,038,851		$	1,165,843		$	7,020,275
Total allowance for loan and lease losses as a percentage of total loans and leases	1.94		%	1.39		%	0.35		%	1.52		%

	At and for the Six Months Ended June 30, 2020
	Commercial Real Estate			Commercial			Consumer			Total
	(In Thousands)
Balance at December 31, 2019	$	30,285		$	24,826		$	5,971		$	61,082
Adoption of ASU 2016-13 (CECL)	11,694			(2,672)			(2,390)			$	6,632
Balance at beginning of period, adjusted	41,979			22,154			3,581			67,714
Charge-offs	—			(4,321)			(21)			(4,342)
Recoveries	94			543			88			725
Provision for loan and lease losses	47,938			6,562			956			55,456
Balance at June 30, 2020	$	90,011		$	24,938		$	4,604		$	119,553
Total loans and leases	$	3,837,703		$	2,361,463		$	1,208,531		$	7,407,697
Total allowance for loan and lease losses as a percentage of total loans and leases	2.35		%	1.06		%	0.37		%	1.61		%

Beginning January 1, 2020, the Company implemented the CECL methodology to calculate the allowance for credit losses. As of January 1, 2020, the Company increased the allowance for loan and lease losses by $6.6 million due to CECL which requires the inclusion of the credit losses over the expected life of the loans, as well as consideration of the risks based on the current conditions and reasonable and supportable forecasts about the future.

At June 30, 2021, the allowance for loan and lease losses decreased to $106.5 million, or 1.52% of total loans and leases outstanding. This compared to an allowance for loan and lease losses of $114.4 million, or 1.57% of total loans and leases outstanding, as of December 31, 2020. Both figures exclude PPP loans which are not subject to an allowance reserve since they are guaranteed by the SBA.

Net charge-offs in the loans and leases for the three months ended June 30, 2021 and 2020 were $0.6 million and $1.4 million, respectively. As a percentage of average loans and leases, annualized net charge-offs for the three months ended June 30, 2021 and 2020 were 0.03% and 0.08%, respectively. The decrease in the net charge-off for the three months ended June 30, 2021 was primarily due to the decrease in the net charge-off by $0.5 million on equipment financing loans, and the decrease on commercial loans by $0.3 million.

The following table sets forth the Company's percent of allowance for loan and lease losses to the total allowance for loan and lease losses and the percent of loans to total loans for each of the categories listed at the dates indicated.

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	At June 30, 2021						At December 31, 2020
	Amount		Percent of Allowance in Each Category to Total Allowance		Percent of Loans in Each Category to Total Loans		Amount		Percent of Allowance in Each Category to Total Allowance		Percent of Loans in Each Category to Total Loans
	(Dollars in Thousands)
Commercial real estate	$	44,296	41.6	%	37.7	%	$	46,357	40.6	%	35.4	%
Multi-family mortgage	20,642		19.4	%	13.8	%	22,559		19.7	%	13.9	%
Construction	9,071		8.5	%	2.9	%	11,216		9.8	%	3.2	%
Total commercial real estate loans	74,009		69.5	%	54.4	%	80,132		70.1	%	52.5	%
Commercial	8,946		8.4	%	13.0	%	8,089		7.1	%	15.6	%
Equipment financing	19,302		18.1	%	15.3	%	21,292		18.6	%	15.0	%
Condominium association	116		0.1	%	0.7	%	117		0.1	%	0.7	%
Total commercial loans	28,364		26.6	%	29.0	%	29,498		25.8	%	31.3	%
Residential mortgage	1,953		1.8	%	11.4	%	1,967		1.7	%	10.9	%
Home equity	1,875		1.8	%	4.7	%	2,504		2.2	%	4.8	%
Other consumer	273		0.3	%	0.5	%	278		0.2	%	0.5	%
Total consumer loans	4,101		3.9	%	16.6	%	4,749		4.1	%	16.2	%
Total	$	106,474	100.0	%	100.0	%	$	114,379	100.0	%	100.0	%

Management believes that the allowance for loan and lease losses as of June 30, 2021 is appropriate.

Investment Securities

The investment portfolio exists primarily for liquidity purposes, and secondarily as a source of interest and dividend income, interest-rate risk management and tax planning as a counterbalance to loan and deposit flows. Investment securities are utilized as part of the Company's asset/liability management and may be sold in response to, or in anticipation of, factors such as changes in market conditions and interest rates, security prepayment rates, deposit outflows, liquidity concentrations and regulatory capital requirements.

The investment policy of the Company, which is reviewed and approved by the Board of Directors on an annual basis, specifies the types of investments that are acceptable, required investment ratings by at least one nationally recognized rating agency, concentration limits and duration guidelines. Compliance with the investment policy is monitored on a regular basis. In general, the Company seeks to maintain a high degree of liquidity and targets cash, cash equivalents and investment securities available-for-sale balances between 10% and 30% of total assets.

Cash, cash equivalents, and investment securities decreased $166.7 million, or 28.2% on an annualized basis, to $1.0 billion as of June 30, 2021 from $1.2 billion as of December 31, 2020. The decrease was driven by a decreases in short-term investments and investment securities available-for-sale. Cash, cash equivalents, and investment securities were 12.0% of total assets as of June 30, 2021, compared to 13.2% of total assets at December 31, 2020.

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The following table sets forth certain information regarding the amortized cost and market value of the Company's investment securities at the dates indicated:

	At June 30, 2021				At December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	245,960	$	246,334	$	273,820	$	278,645
GSE CMOs	35,149		35,944		44,937		46,028
GSE MBSs	240,300		246,054		312,658		323,609
Corporate debt obligations	22,239		23,108		22,299		23,467
U.S. Treasury bonds	142,080		142,214		70,339		73,577
Foreign government obligations	$	500	$	497	500		496
Total investment securities available-for-sale	$	686,228	$	694,151	$	724,553	$	745,822
Equity securities held-for-trading			$	—			$	526

The fair value of investment securities is based principally on market prices and dealer quotes received from third-party, nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. The Company's marketable equity securities are priced this way and are included in Level 1 of the fair value hierarchy in accordance with ASC 820. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include certain U.S. and government agency debt securities, municipal and corporate debt securities, GSE residential MBSs and CMOs, all of which are included in Level 2 and equity securities held-for-trading, which are included in Level 1 and Level 2. Certain fair values are estimated using pricing models and are included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with their expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for the particular security.

Maturities, calls and principal repayments for investment securities available-for-sale totaled $108.5 million for the six months ended June 30, 2021 compared to $56.2 million for the same period in 2020. For the six months ended June 30, 2021, the Company did not sell any investment securities available for sale, compared to $131.5 million for the same period in 2020. For the six months ended June 30, 2021, the Company purchased $71.8 million of investment securities available-for-sale, compared to $438.7 million for the same period in 2020.

For the six months ended June 30, 2021 the Company did not own held-to-maturity securities, for the six months ended June 31, 2020 the Company had maturities, calls and principal repayments of $6.3 million. The Company did not make any sales or purchases of held-to-maturity securities for the six months ended June 30, 2020. During the six months ended June 30, 2020, all held-to-maturity securities were transferred to the available-for-sale portfolio.

As of June 30, 2021, the fair value of all investment securities available-for-sale was $694.2 million and carried a total of $7.9 million of net unrealized gains, compared to a fair value of $745.8 million and net unrealized gains of $21.3 million as of December 31, 2020. As of June 30, 2021, $214.2 million, or 30.9%, of the portfolio, had gross unrealized losses of $5.6 million. This compares to $86.9 million, or 11.7%, of the portfolio with gross unrealized losses of $0.7 million as of December 31, 2020. The Company's unrealized gain position has decreased in 2021 driven by higher long-term interest rates.

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Restricted Equity Securities

FHLBB Stock—The Company invests in the stock of the FHLBB as one of the requirements to borrow from the FHLBB. The Company maintains an excess balance of capital stock, which allows for additional borrowing capacity at each of the Banks. As of June 30, 2021, the excess balance of capital stock was $0.1 million, as compared to a $1.0 million excess balance as of December 31, 2020.

As of June 30, 2021, the Company owned stock in the FHLBB with a carrying value of $13.1 million, a decrease of $18.2 million from $31.3 million as of December 31, 2020. As of June 30, 2021, the FHLBB had total assets of $35.7 billion and total capital of $2.6 billion, of which $1.5 billion was retained earnings. The FHLBB stated that it remained in compliance with all regulatory capital ratios as of June 30, 2021 and was classified as "adequately capitalized" by its regulator, based on the FHLBB's financial information as of March 31, 2021.

Federal Reserve Bank Stock—The Company invests in the stock of the Federal Reserve Bank of Boston, as a condition to the Banks' membership in the Federal Reserve System. As of June 30, 2021 and December 31, 2020, the Company owned stock in the Federal Reserve Bank of Boston with a carrying value of $18.2 million.

Other Stock—The Company invests in a small number of other restricted equity securities which includes Infinex Financial Group and American Financial Exchange. As of June 30, 2021, the Company owned stock in other restricted equity securities with a carrying value of $0.3 million, unchanged from December 31, 2020.

Deposits

The following table presents the Company's deposit mix at the dates indicated.

	At June 30, 2021						At December 31, 2020
	Amount		Percent of Total		Weighted Average Rate		Amount		Percent of Total		Weighted Average Rate
	(Dollars in Thousands)
Non-interest-bearing deposits:
Demand checking accounts	$	1,926,713	27.9	%	—	%	$	1,592,205	23.0	%	—	%
Interest-bearing deposits:
NOW accounts	495,598		7.2	%	0.09	%	513,948		7.4	%	0.09	%
Savings accounts	782,482		11.4	%	0.13	%	701,659		10.2	%	0.13	%
Money market accounts	2,250,651		32.6	%	0.26	%	2,018,977		29.2	%	0.31	%
Certificate of deposit accounts	1,178,131		17.1	%	0.95	%	1,389,998		20.2	%	1.44	%
Brokered deposit accounts	261,126		3.8	%	0.17	%	693,909		10.0	%	0.39	%
Total interest-bearing deposits	4,967,988		72.1	%	0.38	%	5,318,491		77.0	%	0.57	%
Total deposits	$	6,894,701	100.0	%	0.28	%	$	6,910,696	100.0	%	0.44	%

Total deposits decreased $16.0 million to $6.89 billion as of June 30, 2021, compared to $6.91 billion as of December 31, 2020. Deposits as a percentage of total assets increased to 81.5% as of June 30, 2021, compared to 77.3% as of December 31, 2020.

During the six months ended June 30, 2021, core deposits increased $628.7 million. The ratio of core deposits to total deposits increased from 69.8% as of December 31, 2020 to 79.1% as of June 30, 2021, primarily due to an increase in demand checking and money market accounts.

Certificate of deposit accounts decreased $211.9 million to $1.2 billion as of June 30, 2021, compared to $1.4 billion as of December 31, 2020. Certificate of deposit accounts decreased as a percentage of total deposits to 17.1% as of June 30, 2021 from 20.2% as of December 31, 2020.

Brokered deposits decreased $432.8 million to $261.1 million as of June 30, 2021, compared to $693.9 million as of December 31, 2020. Brokered deposits decreased as a percentage of total deposits to 3.8% as of June 30, 2021 from 10.0% as of December 31, 2020. The decrease in brokered deposits was driven by market rates. Brokered deposits allow the Company to seek additional funding by attracting deposits from outside the Company's core market. The Company's investment policy limits the total amount of brokered deposits the Company may hold to 15% of total assets.

64

The following table sets forth the distribution of the average balances of the Company's deposit accounts for the periods indicated and the weighted average interest rates on each category of deposits presented. Averages for the periods presented are based on daily balances.

	Three Months Ended June 30,
	2021						2020
	Average Balance		Percent of Total Average Deposits		Weighted Average Rate		Average Balance		Percent of Total Average Deposits		Weighted Average Rate
	(Dollars in Thousands)
Core deposits:
Non-interest-bearing demand checking accounts	$	1,785,023	25.6	%	—	%	$	1,512,089	23.7	%	—	%
NOW accounts	499,883		7.2	%	0.12	%	395,158		6.2	%	0.12	%
Savings accounts	774,406		11.1	%	0.13	%	663,782		10.4	%	0.22	%
Money market accounts	2,247,997		32.4	%	0.27	%	1,784,343		28.0	%	0.47	%
Total core deposits	5,307,309		76.3	%	0.14	%	4,355,372		68.3	%	0.23	%
Certificate of deposit accounts	1,226,668		17.7	%	1.01	%	1,637,486		25.7	%	2.05	%
Brokered deposit accounts	418,166		6.0	%	0.37	%	381,709		6.0	%	1.97	%
Total deposits	$	6,952,143	100.0	%	0.31	%	$	6,374,567	100.0	%	0.80	%

	Six Months Ended June 30,
	2021						2020
	Average Balance		Percent of Total Average Deposits		Weighted Average Rate		Average Balance		Percent of Total Average Deposits		Weighted Average Rate
	(Dollars in Thousands)
Core deposits:
Non-interest-bearing demand checking accounts	$	1,714,589	24.8	%	—	%	$	1,323,202	21.7	%	—	%
NOW accounts	488,949		7.1	%	0.11	%	377,399		6.2	%	0.12	%
Savings accounts	743,738		10.8	%	0.13	%	645,363		10.6	%	0.31	%
Money market accounts	2,166,702		31.4	%	0.28	%	1,731,496		28.3	%	0.73	%
Total core deposits	5,113,978		74.1	%	0.15	%	4,077,460		66.8	%	0.37	%
Certificate of deposit accounts	1,277,110		18.5	%	1.15	%	1,660,193		27.2	%	2.13	%
Brokered deposit accounts	513,963		7.4	%	0.43	%	369,856		6.0	%	2.10	%
Total deposits	$	6,905,051	100.0	%	0.35	%	$	6,107,509	100.0	%	0.95	%

As of June 30, 2021 and December 31, 2020, the Company had outstanding certificates of deposit of $100,000 or more, maturing as follows:

	At June 30, 2021				At December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
	(Dollars in Thousands)
Maturity period:
Six months or less	$	366,656	1.00	%	$	459,828	1.63	%
Over six months through 12 months	225,672		0.60	%	302,576		1.15	%
Over 12 months	160,196		1.61	%	154,343		1.83	%
Total certificate of deposit of $100,000 or more	$	752,524	1.01	%	$	916,747	1.51	%

65

Borrowed Funds

The following table sets forth certain information regarding advances from the FHLBB, subordinated debentures and notes and other borrowed funds for the periods indicated:

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2021			2020			2021			2020
	(Dollars in Thousands)
Borrowed funds:
Average balance outstanding	$	408,189		$	1,256,521		$	535,732		$	1,101,823
Maximum amount outstanding at any month-end during the period	448,025			1,406,669			686,346			1,406,669
Balance outstanding at end of period	363,015			1,406,669			363,015			1,406,669
Weighted average interest rate for the period	1.88		%	1.59		%	1.70		%	1.91		%
Weighted average interest rate at end of period	3.15		%	1.35		%	3.15		%	1.35		%

Advances from the FHLBB

On a long-term basis, the Company intends to continue to increase its core deposits. The Company also uses FHLBB borrowings and other wholesale borrowing as part of the Company's overall strategy to fund loan growth and manage interest-rate risk and liquidity. The advances are secured by a blanket security agreement which requires the Banks to maintain certain qualifying assets as collateral, principally mortgage loans and securities in an aggregate amount at least equal to outstanding advances. The maximum amount that the FHLBB will advance to member institutions, including the Company, fluctuates from time to time in accordance with the policies of the FHLBB.

FHLBB borrowings decreased by $444.7 million to $204.2 million as of June 30, 2021 from the December 31, 2020 balance of $648.8 million.

Subordinated Debentures and Notes

As part of the acquisition of BankRI, the Company acquired two $5.0 million subordinated debentures due on June 26, 2033 and March 17, 2034, respectively. The Company is obligated to pay 3-month LIBOR plus 3.10% and 3-month LIBOR plus 2.79%, respectively, on a quarterly basis until the debentures mature.

The Company sold $75.0 million of 6.0% fixed-to-floating rate subordinated notes due September 15, 2029. The Company is obligated to pay 6.0% interest semiannually between September 2014 and September 2024. Subsequently, the Company is obligated to pay 3-month LIBOR plus 3.315% quarterly until the notes mature in September 2029.

The following table summarizes the Company's subordinated debentures and notes at the dates indicated.

				Carrying Amount
Issue Date	Rate	Maturity Date	Next Call Date	June 30, 2021		December 31, 2020
	(Dollars in Thousands)
June 26, 2003	Variable; 3-month LIBOR + 3.10%	June 26, 2033	September 25, 2021	$	4,858	$	4,848
March 17, 2004	Variable; 3-month LIBOR + 2.79%	March 17, 2034	September 16, 2021	4,787		4,772
September 15, 2014	6.0% Fixed-to-Variable; 3-month LIBOR + 3.315%	September 15, 2029	September 15, 2024	74,176		74,126
			Total	$	83,821	$	83,746

66

The above carrying amounts of the subordinated debentures included $0.4 million of accretion adjustments and $0.8 million of capitalized debt issuance costs as of June 30, 2021. This compares to $0.4 million of accretion adjustments and $0.9 million of capitalized debt issuance costs as of December 31, 2020.

Other Borrowed Funds

In addition to advances from the FHLBB and subordinated debentures and notes, the Company utilizes other funding sources as part of the overall liquidity strategy. Those funding sources include repurchase agreements, and committed and uncommitted lines of credit with several financial institutions.

The Company periodically enters into repurchase agreements with its larger deposit and commercial customers as part of its cash management services which are typically overnight borrowings. Repurchase agreements with customers decreased $12.6 million to $45.0 million as of June 30, 2021 from $57.7 million as of December 31, 2020.

The Company has access to a $12.0 million committed line of credit as of June 30, 2021. As of June 30, 2021 and December 31, 2020, the Company did not have any borrowings on this committed line of credit.

The Banks also have access to funding through several uncommitted lines of credit of $746.0 million. As of June 30, 2021 and December 31, 2020, the Company had $30.0 million borrowings on outstanding uncommitted lines of credit.

Derivative Financial Instruments

The Company has entered into loan level derivatives, risk participation agreements, and foreign exchange contracts with certain of its commercial customers and concurrently enters into offsetting swaps with third-party financial institutions. The Company may also, from time to time, enter into risk participation agreements. The Company uses interest rate futures that are designated and qualify as cash flow hedging instruments.

The following table summarizes certain information concerning the Company's loan level derivatives, risk participation agreements, and foreign exchange contracts at June 30, 2021 and December 31, 2020:

	At June 30, 2021			At December 31, 2020
	(Dollars in Thousands)
Loan level derivatives (Notional principal amounts):
Receive fixed, pay variable	$	1,186,507		$	1,214,146
Pay fixed, receive variable	1,186,507			1,214,146
Risk participation-out agreements	262,985			252,655
Risk participation-in agreements	59,961			60,619
Foreign exchange contracts (Notional amounts):
Buys foreign currency, sells U.S. currency	$	1,360		$	1,266
Sells foreign currency, buys U.S. currency	1,362			1,273
Fixed weighted average interest rate from the Company to counterparty	3.02		%	3.07		%
Floating weighted average interest rate from counterparty to the Company	0.88		%	0.99		%
Weighted average remaining term to maturity (in months)	81			85
Fair value:
Recognized as an asset:
Interest rate derivatives	$	12		$	8
Loan level derivatives	89,726			131,328
Risk participation-out agreements	1,289			1,843
Foreign exchange contracts	62			156
Recognized as a liability:
Loan level derivatives	89,726			131,328
Risk participation-in agreements	232			361
Foreign exchange contracts	59			148

67

Stockholders' Equity and Dividends

The Company's total stockholders' equity was $972.3 million as of June 30, 2021, representing a $30.5 million increase compared to $941.8 million at December 31, 2020. The increase primarily reflects net income attributable to the Company of $58.1 million for the six months ended June 30, 2021, offset by the unrealized loss on securities available-for-sale of $10.4 million and dividends paid by the Company of $18.4 million for the six months ended June 30, 2021.

Stockholders' equity represented 11.49% of total assets as of June 30, 2021 and 10.53% of total assets as of December 31, 2020. Tangible stockholders' equity (total stockholders' equity less goodwill and identified intangible assets, net) represented 9.75% of tangible assets (total assets less goodwill and identified intangible assets, net) as of June 30, 2021 and 8.86% as of December 31, 2020.

On December 4, 2019, the Board of Directors (the "Board") approved a stock repurchase program (the "Program") authorizing management to repurchase up to $10.0 million of the Company’s common stock over a period of twelve months commencing on January 1, 2020. On March 9, 2020, the Board approved an increase in the repurchase amount of $10.0 million bringing the total authorized amount to $20.0 million. Effective March 24, 2020, the Company suspended the Program. On October 28, 2020, the Board authorized the resumption of the Program. In 2020, 1,715,730 shares of the Company's common stock were repurchased by the Company at a weighted average price of $11.66.

On January 27, 2021, the Board approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company's common stock commencing on February 1, 2021 and ending on December 31, 2021.

The dividend payout ratio was 29.69% for the three months ended June 30, 2021, compared to 46.37% for the same period in 2020.

Results of Operations

The primary drivers of the Company's net income are net interest income, which is strongly affected by the net yield on and growth of interest-earning assets and liabilities, the quality of the Company's assets, its levels of non-interest income and non-interest expense, and its tax provision.

The Company's net interest income represents the difference between interest income earned on its investments, loans and leases, and its cost of funds. Interest income is dependent on the amount of interest-earning assets outstanding during the period and the yield earned thereon. Cost of funds is a function of the average amount of deposits and borrowed money outstanding during the year and the interest rates paid thereon. The net interest margin is calculated by dividing net interest income by average interest-earning assets. Net interest spread is the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. The increases or decreases, as applicable, in the components of interest income and interest expense, expressed in terms of fluctuation in average volume and rate, are summarized under "Rate/Volume Analysis" below. Information as to the components of interest income, interest expense and average rates is provided under "Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin" below.

Because the Company's assets and liabilities are not identical in duration and in repricing dates, the differential between the two is vulnerable to changes in market interest rates as well as the overall shape of the yield curve. These vulnerabilities are inherent to the business of banking and are commonly referred to as "interest-rate risk." How interest-rate risk is measured and, once measured, how much interest-rate risk is taken on, are based on numerous assumptions and other subjective judgments. See the discussion in “Item 3. Quantitative and Qualitative Disclosures about Market Risk” below.

The quality of the Company's assets also influences its earnings. Loans and leases that are not paid on a timely basis and exhibit other weaknesses can result in the loss of principal and/or interest income. Additionally, the Company must make timely provisions to the allowance for loan and lease losses based on estimates of probable losses inherent in the loan and lease portfolio. These additions, which are charged against earnings, are necessarily greater when greater probable losses are expected. Further, the Company incurs expenses as a result of resolving troubled assets. These variables reflect the "credit risk" that the Company takes on in the ordinary course of business and are further discussed under "Financial Condition—Asset Quality" above.

Net Interest Income

Net interest income increased $6.8 million to $71.1 million for the three months ended June 30, 2021 from $64.3 million for the three months ended June 30, 2020. This increase reflects a $10.5 million decrease in interest expense on deposit and borrowings, which is reflective of the sustained, low interest rate environment, offset by a $2.4 million decrease in interest income on loans and leases and a $1.3 million decrease in interest income on investment securities. Refer to “Results of Operations - Comparison of the Three-Month Period Ended June 30, 2021 and June 30, 2020 — Interest Income” and “Results

68

of Operations - Comparison of the Three-Month Period Ended June 30, 2021 and June 30, 2020 — Interest Expense -Deposit and Borrowed Funds” below for more details.

Net interest income increased $14.2 million to $140.2 million for the six months ended June 30, 2021 from $126.0 million for the six months ended June 30, 2020. This overall increase reflects a $23.0 million decrease in interest expense on deposit and borrowings, which is reflective of the various portfolios repricing and replacing balances into the current interest rate environment, offset by a $6.9 million decrease in interest income on loans and leases and a $1.8 million decrease in interest income on investment securities. Refer to “Results of Operations - Comparison of the Six-Month Period Ended June 30, 2021 and June 30, 2020 — Interest Income” and “Results of Operations - Comparison of the Six-Month Period Ended June 30, 2021 and June 30, 2020 — Interest Expense Deposit and Borrowed Funds” below for more details.

Net interest margin increased by 43 basis points to 3.52% for the three months ended June 30, 2021 from 3.09% for the three months ended June 30, 2020, of which 15 basis points is attributed to additional fee income received from the PPP. The Company's weighted average interest rate on loans (prior to purchase accounting adjustments) decreased to 4.21% for the three months ended June 30, 2021 from 4.25% for the three months ended June 30, 2020.

Net interest margin increased by 26 basis points to 3.45% for the six months ended June 30, 2021 from 3.19% for the six months ended June 30, 2020, of which 13 basis points is attributed to additional fee income received from the PPP. The Company's weighted average interest rate on loans (prior to purchase accounting adjustments) decreased to 4.17% for the six months ended June 30, 2021 from 4.47% for the six months ended June 30, 2020.

The yield on interest-earning assets decreased to 3.87% for the three months ended June 30, 2021 from 3.92% for the three months ended June 30, 2020. This decrease is the result of lower yields on loans and leases and lower yields on investments. During the three months ended June 30, 2021, the Company recorded $1.5 million in prepayment penalties and late charges, which contributed 7 basis points to yields on interest-earning assets in the three months ended June 30, 2021, compared to $1.2 million, or 5 basis points, for the three months ended June 30, 2020.

The yield on interest-earning assets decreased to 3.83% for the six months ended June 30, 2021 from 4.17% for the six months ended June 30, 2020. This decrease is the result of lower yields on loans and leases and investments. During the six months ended June 30, 2021, the Company recorded $2.7 million in prepayment penalties and late charges, which contributed 7 basis points to yields on interest-earning assets in the six months ended June 30, 2021. The company recorded $1.9 million in prepayment penalties and late charges, which contributed 5 basis points to yields on interest-earning assets in the six months ended June 30, 2020.

The overall cost of funds (including non-interest-bearing demand checking accounts) decreased 54 basis points to 0.40% for the three months ended June 30, 2021 from 0.94% for the three months ended June 30, 2020. Refer to "Financial Condition - Borrowed Funds" above for more details.

Management seeks to position the balance sheet to be neutral to asset sensitive changes in interest rates. From 2017 through 2019, short term interest rates rose while at the same time net interest income, net interest spread, and net interest margin also increased. During the first three quarters of 2020, interest rates declined sharply in response to the economic impact of the COVID-19 pandemic. In general, the Company's balance sheet position should respond positively in a rising interest rate environment and when the rate curves are steepening, which should result in a positive impact to net interest income, net interest spread, and the net interest margin. A declining interest rate or flattening yield curve environment is expected to have a negative impact on the Company's yields and net interest margin. Due to, among other factors, ongoing pricing pressures in the loan and deposit portfolios, net interest income may also be negatively affected by changes in the amount of accretion on acquired loans and leases, deposits and borrowed funds, which is included in interest income and interest expense, respectively.

Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin

The following table sets forth information about the Company's average balances, interest income and interest rates earned on average interest-earning assets, interest expense and interest rates paid on average interest-bearing liabilities, interest-rate spread and net interest margin for the three and six months ended June 30, 2021 and June 30, 2020. Average balances are derived from daily average balances and yields include fees, costs and purchase-accounting-related premiums and discounts which are considered adjustments to coupon yields in accordance with GAAP. Certain amounts previously reported have been reclassified to conform to the current presentation.

69

	Three Months Ended
	June 30, 2021						June 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Debt securities	$	721,029	$	3,121	1.73	%	$	773,523	$	3,719	1.92	%
Marketable and restricted equity securities	34,989		233		2.67	%	71,058		915		5.15	%
Short-term investments	234,317		42		0.07	%	245,577		99		0.16	%
Total investments	990,335		3,396		1.37	%	1,090,158		4,733		1.74	%
Commercial real estate loans (2)	3,780,920		34,320		3.59	%	3,761,667		36,829		3.87	%
Commercial loans (2)	1,115,910		13,040		4.62	%	1,234,537		10,450		3.35	%
Equipment financing (2)	1,074,469		17,963		6.69	%	1,069,192		18,973		7.10	%
Residential mortgage loans (2)	788,296		6,927		3.51	%	814,431		8,068		3.96	%
Other consumer loans (2)	368,845		2,833		3.08	%	411,326		3,153		3.07	%
Total loans and leases	7,128,440		75,083		4.21	%	7,291,153		77,473		4.25	%
Total interest-earning assets	8,118,775		78,479		3.87	%	8,381,311		82,206		3.92	%
Allowance for loan and lease losses	(111,705)						(114,188)
Non-interest-earning assets	533,158						602,417
Total assets	$	8,540,228					$	8,869,540
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts	$	499,883	146		0.12	%	$	395,158	114		0.12	%
Savings accounts	774,406		248		0.13	%	663,782		357		0.22	%
Money market accounts	2,247,997		1,497		0.27	%	1,784,343		2,074		0.47	%
Certificate of deposit accounts	1,226,668		3,102		1.01	%	1,637,486		8,364		2.05	%
Brokered deposit accounts	418,166		387		0.37	%	381,709		1,869		1.97	%
Total interest-bearing deposits (3)	5,167,120		5,380		0.42	%	4,862,478		12,778		1.06	%
Advances from the FHLBB	250,102		663		1.05	%	1,102,079		3,751		1.35	%
Subordinated debentures and notes	83,802		1,242		5.93	%	83,647		1,263		6.04	%
Other borrowed funds	74,285		31		0.17	%	70,795		44		0.25	%
Total borrowed funds	408,189		1,936		1.88	%	1,256,521		5,058		1.59	%
Total interest-bearing liabilities	5,575,309		7,316		0.53	%	6,118,999		17,836		1.17	%
Non-interest-bearing liabilities:
Non-interest-bearing demand checking accounts (3)	1,785,023						1,512,089
Other non-interest-bearing liabilities	222,689						312,213
Total liabilities	7,583,021						7,943,301
Total stockholders' equity	957,207						926,239
Total liabilities and stockholders' equity	$	8,540,228					$	8,869,540
Net interest income (tax-equivalent basis) / Interest-rate spread (4)			71,163		3.34	%			64,370		2.75	%
Less adjustment of tax-exempt income			57						82
Net interest income			$	71,106					$	64,288
Net interest margin (5)					3.52	%					3.09	%

_________________________________________________________________________

(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial real estate loans on a tax-equivalent basis.

(2) Loans on nonaccrual status are included in the average balances.

(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.31% and 0.81% in the three months ended June 30, 2021 and June 30, 2020, respectively.

(4) Interest-rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

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	Six Months Ended
	June 30, 2021						June 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Debt securities	$	737,771	$	6,239	1.69	%	$	689,704	$	6,743	1.96	%
Marketable and restricted equity securities	40,302		534		2.65	%	64,968		1,701		5.24	%
Short-term investments	213,152		81		0.08	%	164,943		308		0.37	%
Total investments	991,225		6,854		1.38	%	919,615		8,752		1.90	%
Commercial real estate loans (2)	3,783,394		68,565		3.60	%	3,729,339		77,297		4.10	%
Commercial loans (2)	1,182,498		25,786		4.34	%	1,008,923		18,778		3.68	%
Equipment financing (2)	1,076,741		36,006		6.69	%	1,061,019		37,919		7.15	%
Residential mortgage loans (2)	784,562		14,159		3.61	%	812,507		16,002		3.94	%
Other consumer loans (2)	372,198		5,628		3.05	%	414,570		7,108		3.43	%
Total loans and leases	7,199,393		150,144		4.17	%	7,026,358		157,104		4.47	%
Total interest-earning assets	8,190,618		156,998		3.83	%	7,945,973		165,856		4.17	%
Allowance for loan and lease losses	(113,571)						(91,384)
Non-interest-earning assets	549,692						563,094
Total assets	$	8,626,739					$	8,417,683
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts	$	488,949	276		0.11	%	$	377,399	230		0.12	%
Savings accounts	743,738		483		0.13	%	645,363		1,000		0.31	%
Money market accounts	2,166,702		2,983		0.28	%	1,731,496		6,315		0.73	%
Certificate of deposit	1,277,110		7,256		1.15	%	1,660,193		17,615		2.13	%
Brokered deposit accounts	513,963		1,089		0.43	%	369,856		3,858		2.10	%
Total interest-bearing deposits (3)	5,190,462		12,087		0.47	%	4,784,307		29,018		1.22	%
Advances from the FHLBB	368,661		2,033		1.10	%	937,271		7,848		1.66	%
Subordinated debentures and notes	83,783		2,484		5.93	%	83,628		2,547		6.09	%
Other borrowed funds	83,288		70		0.17	%	80,924		233		0.58	%
Total borrowed funds	535,732		4,587		1.70	%	1,101,823		10,628		1.91	%
Total interest-bearing liabilities	5,726,194		16,674		0.59	%	5,886,130		39,646		1.35	%
Non-interest-bearing liabilities:
Non-interest-bearing demand checking accounts	1,714,589						1,323,202
Other non-interest-bearing liabilities	234,082						272,162
Total liabilities	7,674,865						7,481,494
Total stockholders' equity	951,874						936,189
Total liabilities and stockholders' equity	$	8,626,739					$	8,417,683
Net interest income (tax-equivalent basis) / Interest-rate spread (4)			140,324		3.24	%			126,210		2.82	%
Less adjustment of tax-exempt income			109						210
Net interest income			$	140,215					$	126,000
Net interest margin (5)					3.45	%					3.19	%

_________________________________________________________________________

(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial real estate loans on a tax-equivalent basis.

(2) Loans on nonaccrual status are included in the average balances.

(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.35% and 0.96% in the six months ended June 30, 2021 and June 30, 2020, respectively.

(4) Interest-rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

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Rate/Volume Analysis

The following table presents, on a tax-equivalent basis, the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities have affected the Company's interest income and interest expense during the periods indicated. Information is provided in each category with respect to: (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.

	Three Months Ended June 30, 2021 as Compared to the Three Months Ended June 30, 2020						Six Months Ended June 30, 2021 as Compared to the Six Months Ended June 30, 2020
	Increase (Decrease) Due To						Increase (Decrease) Due To
	Volume		Rate		Net Change		Volume		Rate		Net Change
	(In Thousands)
Interest and dividend income:
Investments:
Debt securities	$	(243)	$	(355)	$	(598)	$	451	$	(955)	$	(504)
Marketable and restricted equity securities	(350)		(332)		(682)		(507)		(660)		(1,167)
Short-term investments	(4)		(53)		(57)		67		(294)		(227)
Total investments	(597)		(740)		(1,337)		11		(1,909)		(1,898)
Loans and leases:
Commercial real estate loans	181		(2,690)		(2,509)		1,037		(9,769)		(8,732)
Commercial loans and leases	(1,057)		3,647		2,590		3,431		3,577		7,008
Equipment financing	93		(1,103)		(1,010)		548		(2,461)		(1,913)
Residential mortgage loans	(251)		(890)		(1,141)		(536)		(1,307)		(1,843)
Other consumer loans	(330)		10		(320)		(710)		(770)		(1,480)
Total loans	(1,364)		(1,026)		(2,390)		3,770		(10,730)		(6,960)
Total change in interest and dividend income	(1,961)		(1,766)		(3,727)		3,781		(12,639)		(8,858)
Interest expense:
Deposits:
NOW accounts	32		—		32		65		(19)		46
Savings accounts	55		(164)		(109)		132		(649)		(517)
Money market accounts	456		(1,033)		(577)		1,273		(4,605)		(3,332)
Certificate of deposit accounts	(1,741)		(3,521)		(5,262)		(3,460)		(6,899)		(10,359)
Brokered deposit accounts	164		(1,646)		(1,482)		1,104		(3,873)		(2,769)
Total deposits	(1,034)		(6,364)		(7,398)		(886)		(16,045)		(16,931)
Borrowed funds:
Advances from the FHLBB	(2,399)		(689)		(3,088)		(3,737)		(2,078)		(5,815)
Subordinated debentures and notes	2		(23)		(21)		5		(68)		(63)
Other borrowed funds	2		(15)		(13)		7		(170)		(163)
Total borrowed funds	(2,395)		(727)		(3,122)		(3,725)		(2,316)		(6,041)
Total change in interest expense	(3,429)		(7,091)		(10,520)		(4,611)		(18,361)		(22,972)
Change in tax-exempt income	(25)		—		(25)		(101)		—		(101)
Change in net interest income	$	1,493	$	5,325	$	6,818	$	8,493	$	5,722	$	14,215

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Interest Income

Loans and Leases

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Interest income—loans and leases:
Commercial real estate loans	$	34,320	$	36,830	$	(2,510)	(6.8)	%	$	68,565	$	77,297	$	(8,732)	(11.3)	%
Commercial loans	12,984		10,393		2,591		24.9	%	25,677		18,649		7,028		37.7	%
Equipment financing	17,963		18,973		(1,010)		(5.3)	%	36,006		37,919		(1,913)		(5.0)	%
Residential mortgage loans	6,927		8,067		(1,140)		(14.1)	%	14,159		16,002		(1,843)		(11.5)	%
Other consumer loans	2,832		3,153		(321)		(10.2)	%	5,628		7,108		(1,480)		(20.8)	%
Total interest income—loans and leases	$	75,026	$	77,416	$	(2,390)	(3.1)	%	$	150,035	$	156,975	$	(6,941)	(4.4)	%

Total interest from loans and leases was $75.0 million for the three months ended June 30, 2021, and represented a yield on total loans of 4.21%. This compares to $77.4 million of interest on loans and a yield of 4.25% for the three months ended June 30, 2020. The $2.4 million decrease in interest income from loans and leases was primarily attributable to a decrease of $1.0 million due to changes in interest rates, and a decrease of $1.4 million due to a decrease in origination volume.

Interest income from loans and leases was $150.0 million for the six months ended June 30, 2021, and represented a yield on total loans of 4.17%. This compares to $157.0 million of interest on loans and a yield of 4.47% for the six months ended June 30, 2020. The $7 million decrease in interest income from loans and leases was primarily attributable to an increase of $3.8 million due to an increase in origination volume and an decrease of $10.7 million due to the changes in interest rates.

Investments

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Interest income—investments:
Debt securities	$	3,121	$	3,701	$	(580)	(15.7)	%	$	6,239	$	6,677	$	(438)	(6.6)	%
Marketable and restricted equity securities	233		908		(675)		(74.3)	%	534		1,686		(1,152)		(68.3)	%
Short-term investments	42		99		(57)		(57.6)	%	81		308		(227)		(73.7)	%
Total interest income—investments	$	3,396	$	4,708	$	(1,312)	(27.9)	%	$	6,854	$	8,671	$	(1,817)	(21.0)	%

Total interest income from investments was $3.4 million for the three months ended June 30, 2021, compared to $4.7 million for the three months ended June 30, 2020. For the three months ended June 30, 2021 and 2020, the yield on total investments was 1.4% and 1.7%, respectively. The year-over-year decrease in interest income on investments of $1.3 million, or 27.9%, was primarily driven by a $0.6 million decrease due to volume and a $0.7 million decrease due to rates.

Total investment income was $6.9 million and $8.7 million for the six months ended June 30, 2021 and June 30, 2020, respectively. For the six months ended June 30, 2021 and 2020, the yield on total investments was 1.4% and 1.9%, respectively. The year-over-year decrease in interest income on investments of $1.8 million, or 21.0%, was primarily driven by a $1.8 million decrease due to rates, while volume remained unchanged.

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Interest Expense—Deposits and Borrowed Funds

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Interest expense:
Deposits:
NOW accounts	$	146	$	114	$	32	28.1	%	$	276	$	230	$	46	20.0	%
Savings accounts	248		357		(109)		(30.5)	%	483		1,000		(517)		(51.7)	%
Money market accounts	1,497		2,074		(577)		(27.8)	%	2,983		6,315		(3,332)		(52.8)	%
Certificate of deposit accounts	3,102		8,364		(5,262)		(62.9)	%	7,256		17,615		(10,359)		(58.8)	%
Brokered deposit accounts	387		1,869		(1,482)		(79.3)	%	1,089		3,858		(2,769)		(71.8)	%
Total interest expense - deposits	5,380		12,778		(7,398)		(57.9)	%	12,087		29,018		(16,931)		(58.3)	%
Borrowed funds:
Advances from the FHLBB	663		3,751		(3,088)		(82.3)	%	2,033		7,848		(5,815)		(74.1)	%
Subordinated debentures and notes	1,242		1,263		(21)		(1.7)	%	2,484		2,547		(63)		(2.5)	%
Other borrowed funds	31		44		(13)		(29.5)	%	70		233		(163)		(70.0)	%
Total interest expense - borrowed funds	1,936		5,058		(3,122)		(61.7)	%	4,587		10,628		(6,041)		(56.8)	%
Total interest expense	$	7,316	$	17,836	$	(10,520)	(59.0)	%	$	16,674	$	39,646	$	(22,972)	(57.9)	%

Deposits

For the three months ended June 30, 2021, interest expense on deposits decreased $7.4 million, or 57.9%, as compared to the same period in 2020. The decrease in interest expense on deposits was driven by a decrease of $6.4 million due to lower interest rates and a decrease of $1.0 million mainly due to lower certificate of deposit balances.

Interest expense on deposits decreased $16.9 million, or 58.3%, to $12.1 million for the six months ended June 30, 2021 from $29.0 million for the six months ended June 30, 2020. The decrease in interest expense on deposits was driven by a decrease of $16.0 million due to lower interest rates and a decrease of $0.9 million due to volume.

Borrowed Funds

During the three months ended June 30, 2021, interest paid on borrowed funds decreased $3.1 million, or 61.7% year over year. The cost of borrowed funds increased to 1.88% for the three months ended June 30, 2021 from 1.59% for the three months ended June 30, 2020. The decrease in interest expense was driven by a decrease of $2.4 million due to volume and a decrease of $0.7 million due to borrowing rates. For the three months ended June 30, 2021, the purchase accounting accretion on acquired borrowed funds was $13.0 thousand compared to accretion of $14.0 thousand for the three months ended June 30, 2020. Purchase accounting accretion had no impact on the Company's net interest margin.

Interest expense on borrowed funds decreased $6.0 million, or 56.8%, to $4.6 million for the six months ended June 30, 2021 from $10.6 million for the six months ended June 30, 2020. The cost of borrowed funds decreased to 1.7% for the six months ended June 30, 2021 from 1.91% for the six months ended June 30, 2020. The decrease in interest expense was driven by a decrease of $3.7 million due to volume and a decrease of $2.3 million due to borrowing rates. For the six months ended June 30, 2021, there was purchase accounting accretion of $25.0 thousand on acquired borrowed funds compared to accretion of $27.0 thousand for the six months ended June 30, 2020. Purchase accounting accretion had no impact on the Company's net interest margin.

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Provision for Credit Losses

The provisions for credit losses are set forth below:

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Provision (credit) for loan and lease losses:
Commercial real estate	$	(5,903)	$	7,738	$	(13,641)	(176.3)	%	$	(6,106)	$	47,938	$	(54,044)	112.7	%
Commercial	3,234		(338)		3,572		(1,056.8)	%	1,370		6,562		(5,192)		(79.1)	%
Consumer	(99)		355		(454)		(127.9)	%	(814)		956		(1,770)		(185.1)	%
Total provision (credit) for loan and lease losses	(2,768)		7,755		(10,523)		(135.7)	%	(5,550)		55,456		(61,006)		(110.0)	%
Unfunded credit commitments	(563)		(2,408)		1,845		76.6	%	72		4,005		(3,933)		(98.2)	%
Total provision (credit) for credit losses	$	(3,331)	$	5,347	$	(8,678)	(162.3)	%	$	(5,478)	$	59,461	$	(64,939)	(109.2)	%

For the three months ended June 30, 2021, the Allowance for Credit Losses ("ACL") decreased $3.9 million resulting in a provision for credit losses of $(3.3) million.

For the six months ended June 30, 2021, the ACL decreased $7.9 million resulting in a provision for credit losses of $(5.5) million. The reduction in the ACL for both periods is attributable to portfolio contraction, continued low level of net charge-offs, an improving macro-economic forecast, and qualitative adjustments that consider longer-term risks.

See management’s discussion of “Financial Condition — Allowance for Loan and Lease Losses” and Note 5, “Allowance for Loan and Lease Losses,” to the unaudited consolidated financial statements for a description of how management determined the allowance for loan and lease losses for each portfolio and class of loans.

Non-Interest Income

The following table sets forth the components of non-interest income:

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Deposit fees	$	3,015	$	1,929	$	1,086	56.3	%	$	5,296	$	4,387	$	909	20.7	%
Loan fees	607		513		94		18.3	%	1,160		1,063		97		9.1	%
Loan level derivative income, net	7		1,440		(1,433)		(99.5)	%	481		3,596		(3,115)		(86.6)	%
(Loss) gain on investment securities	1		586		(585)		(99.8)	%	(6)		1,916		(1,922)		(100.3)	%
Gain on sales of loans and leases held-for-sale	538		299		239		79.9	%	1,247		419		828		197.6	%
Other	1,742		1,468		274		18.7	%	2,526		4,182		(1,656)		(39.6)	%
Total non-interest income	$	5,910	$	6,235	$	(325)	(5.2)	%	$	10,704	$	15,563	$	(4,859)	(31.2)	%

For the three months ended June 30, 2021, non-interest income decreased $0.3 million, or 5.2%, to $5.9 million as compared to $6.2 million for the same period of 2020. The decrease was primarily driven by a decrease of $1.4 million in loan level derivative income and a decrease of $0.6 million in gain on investment securities, partially offset by increases of $1.1 million in deposit fees, $0.3 million in other non-interest income and $0.2 million in gain on sales of loans and leases.

For the six months ended June 30, 2021, non-interest income decreased $4.9 million, or 31.2%, to $10.7 million as compared to $15.6 million for the same period in 2020. The decrease was primarily driven by decreases of $3.1 million in loan level derivative income, $1.9 million in gain on investment securities and $1.7 million in other non-interest income, partially offset by an increase of $0.9 million in deposit fees and an increase of $0.8 million in gain on sales of loans and leases.

Deposit fees increased $1.1 million, or 56.3%, to $3.0 million for the three months ended June 30, 2021 from $1.9 million for the same period in 2020, primarily driven by higher foreign exchange incoming wire income, debit card income, ATM fees

75

and insufficient funds fees ("NSF"). Deposit fees increased $0.9 million, or 20.7% to $5.3 million for the six months ended June 30, 2021 from $4.4 million for the same period in 2020, primarily driven by higher foreign exchange incoming wire income, debit card income and ATM fees, partially offset by lower NSF.

Loan level derivative income decreased $1.4 million, or 99.5%, to $7.0 thousand for the three months ended June 30, 2021 from $1.4 million for the same period in 2020, and decreased $3.1 million, or 86.6%, to $0.5 million for the six months ended June 30, 2021 from $3.6 million for the same period in 2020, primarily driven by lower volume in loan level derivatives transactions completed for the six months ended June 30, 2021.

(Loss) gain on investment securities decreased $0.6 million, or 99.8%, to a gain of $1.0 thousand for the three months ended June 30, 2021 from a gain of $0.6 million for the same period in 2020, and decreased $1.9 million, or 100.3%, to a loss of $6.0 thousand for the six months ended June 30, 2021 from a gain of $1.9 million for the same period in 2020, primarily driven by a $3.0 million gain on sales of investment securities, partially offset by a $1.1 million loss on equity securities held-for-trading in the first six months of 2020 as compared to no sales of investment securities and a small change in market value on equity securities held-for-trading due to the majority of equity securities sold in December 2020 for the same period in 2021.

Gain on sales of loans and leases held-for-sales increased $0.2 million, or 79.9%, to $0.5 million for the three months ended June 30, 2021 from $0.3 million for the same period in 2020, and increased $0.8 million, or 197.6% to $1.2 million for the six months ended June 30, 2021 from $0.4 million for the same period in 2020, primarily driven by higher gain on sale to participant and higher loan sale volume with servicing released, partially offset by lower loan sale volume with servicing retained.

Other income increased $0.3 million, or 18.7%, to $1.7 million for the three months ended June 30, 2021 from $1.5 million for the same period in 2020, primarily driven by higher investment sales and insurance sales volume, and higher gain on interest rate derivatives, partially offset by lower rental income. Other income decreased $1.7 million, or 39.6%, to $2.5 million for the six months ended June 30, 2021 from $4.2 million for the same period in 2020, primarily driven by higher loss on interest rate derivatives due to volatility in rates and lower rental income, partially offset by higher insurance sales volume.

Non-Interest Expense

The following table sets forth the components of non-interest expense:

	Three Months Ended June 30,				Dollar Change		Percent Change		Six Months Ended June 30,				Dollar Change		Percent Change
	2021		2020						2021		2020
	(Dollars in Thousands)
Compensation and employee benefits	$	25,161	$	24,619	$	542	2.2	%	$	50,982	$	49,838	$	1,144	2.3	%
Occupancy	3,832		3,825		7		0.2	%	7,836		7,778		58		0.7	%
Equipment and data processing	4,697		4,155		542		13.0	%	9,190		8,858		332		3.7	%
Professional services	1,245		1,056		189		17.9	%	2,471		2,707		(236)		(8.7)	%
FDIC insurance	657		858		(201)		(23.4)	%	1,701		1,236		465		37.6	%
Advertising and marketing	1,110		1,017		93		9.1	%	2,210		2,092		118		5.6	%
Amortization of identified intangible assets	228		311		(83)		(26.7)	%	460		647		(187)		(28.9)	%
Other	1,036		3,268		(2,232)		(68.3)	%	3,927		6,701		(2,774)		(41.4)	%
Total non-interest expense	$	37,966	$	39,109	$	(1,143)	(2.9)	%	$	78,777	$	79,857	$	(1,080)	(1.4)	%

For the three months ended June 30, 2021, non-interest expense decreased $1.1 million, or 2.9%, to $38.0 million as compared to $39.1 million for the same period in 2020. The decrease was primarily driven by decreases of $2.2 million in other non-interest expense and $0.2 million in FDIC insurance expense, partially offset by increases of $0.5 million in compensation and employee benefits expense, $0.5 million in equipment and data processing expense, and $0.2 million in professional services.

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For the six months ended June 30, 2021, non-interest expense decreased $1.1 million, or 1.4%, to $78.8 million as compared to $79.9 million for the same period in 2020. The decrease was primarily driven by decreases of $2.8 million in other non-interest expense and $0.2 million in professional services, partially offset by increases of $1.1 million in compensation and employee benefits expense, $0.5 million in FDIC insurance expense, and $0.3 million in equipment and data processing expense.

Compensation and employee benefits expense increased $0.5 million, or 2.2%, to $25.2 million for the three months ended June 30, 2021 from $24.6 million for the same period in 2020, and increased $1.1 million, or 2.3%, to $51.0 million for the six months ended June 30, 2021 from $49.8 million for the same period in 2020, primarily driven by increases in employee headcount and salaries, partially offset by decreases in retirement plan benefits, commissions and bonuses.

Equipment and data processing expense increased $0.5 million, or 13.0%, to $4.7 million for the three months ended June 30, 2021 from $4.2 million for the same period in 2020, and increased $0.3 million, or 3.7%, to $9.2 million for the six months ended June 30, 2021 from $8.9 million for the same period in 2020, primarily driven by higher software licenses and subscriptions, commercial loan processing expenses, and computer equipment depreciation, partially offset by lower core processing expenses and lower purchased software depreciation.

FDIC insurance expense decreased $0.2 million, or 23.4%, to $0.7 million for the three months ended June 30, 2021 from $0.9 million for the same period in 2020, and increased $0.5 million, or 37.6%, to $1.7 million for the six months ended June 30, 2021 from $1.2 million for the same period in 2020, primarily driven by bank assessment fees from the FDIC.

Other expense decreased $2.2 million, or 68.3%, to $1.0 million for the three months ended June 30, 2021 from $3.3 million for the same period in 2020, and decreased $2.8 million, or 41.4% to $3.9 million for the six months ended June 30, 2021 from $6.7 million for the same period in 2020, primarily driven by a gain of $2.1 million on the sale of OREO property and a decrease in write-down on other repossessed assets.

Provision for Income Taxes

	Three Months Ended June 30,						Dollar Change		Percent Change		Six Months Ended June 30,						Dollar Change		Percent Change
	2021			2020							2021			2020
	(Dollars in Thousands)
Income before provision for income taxes	$	42,381		$	26,067		$	16,314	62.6	%	$	77,620		$	2,245		$	75,375	3,357.5	%
Provision (benefit) for income taxes	10,779			6,496			4,283		65.9	%	19,564			(50)			19,614		(39,228.0)	%
Net income (loss)	$	31,602		$	19,571		$	12,031	61.5	%	$	58,056		$	2,295		$	55,761	2,429.7	%
Effective tax rate	25.4		%	24.9		%	N/A		2.0	%	25.2		%	(2.2)		%	N/A		(1,245.5)	%

The Company recorded an income tax expense of $10.8 million for the three months ended June 30, 2021, compared to an income tax expense of $6.5 million for the three months ended June 30, 2020, representing effective tax rates of 25.4% and 24.9%, respectively.

The Company recorded an income tax expense of $19.6 million for the six months ended June 30, 2021, compared to an income tax benefit of $(50) thousand for the six months ended June 30, 2020, representing effective tax rates of 25.2% and (2.2)%, respectively.

Liquidity and Capital Resources

Liquidity

Liquidity is defined as the ability to meet current and future financial obligations of a short-term nature. The Company further defines liquidity as the ability to respond to the needs of depositors and borrowers, as well as to earnings enhancement opportunities, in a changing marketplace. Liquidity management is monitored by an Asset/Liability Committee ("ALCO"), consisting of members of management, which is responsible for establishing and monitoring liquidity targets as well as strategies and tactics to meet these targets. The primary source of funds for the payment of dividends and expenses by the Company is dividends paid to it by the Banks and Brookline Securities Corp. The primary sources of liquidity for the Banks consist of deposit inflows, loan repayments, borrowed funds, and maturing investment securities.

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In the second quarter, the Company continued to operate with increased liquidity as a precautionary measure due to economic uncertainty associated with the COVID-19 pandemic. In particular, the Company has shifted its balance sheet asset mix to include additional cash and available for sale securities. Management will continue to monitor the economic markets and evaluate changes to the Company’s liquidity as economic conditions improve.

Management continued holding higher levels of on balance sheet liquidity in the form of cash and available for sale securities in the second quarter. Cash and equivalents at the end of the quarter were $320.4 million, or 3.8% of the balance sheet, compared to $434.9 million, or 4.9% of the balance sheet, as of December 31, 2020. In general, in a normal operating environment, the Company seeks to maintain liquidity levels of cash, cash equivalents and investment securities available-for-sale of between 5% and 10% of total assets. Due to the current environment, management increased this target operating range to between 5% and 15% of total assets. As of June 30, 2021, cash, cash equivalents and investment securities available-for-sale totaled $1.0 billion, or 12.0% of total assets. This compares to $1.2 billion, or 13.2% of total assets, as of December 31, 2020.

Deposits, which are considered the most stable source of liquidity, totaled $6.9 billion as of June 30, 2021 and represented 95.0% of total funding (the sum of total deposits and total borrowings), compared to deposits of $6.9 billion, or 89.4% of total funding, as of December 31, 2020. Core deposits, which consist of demand checking, NOW, savings and money market accounts, totaled $5.5 billion as of June 30, 2021 and represented 79.1% of total deposits, compared to core deposits of $4.8 billion, or 69.8% of total deposits, as of December 31, 2020. Additionally, the Company had $261.1 million of brokered deposits as of June 30, 2021, which represented 3.8% of total deposits, compared to $693.9 million or 10.0% of total deposits, as of December 31, 2020. The Company offers attractive interest rates based on market conditions to increase deposits balances, while managing cost of funds.

Borrowings are used to diversify the Company's funding mix and to support asset growth. When profitable lending and investment opportunities exist, access to borrowings provides a means to grow the balance sheet. Borrowings totaled $363.0 million as of June 30, 2021, representing 5.0% of total funding, compared to $820.2 million, or 10.6% of total funding, as of December 31, 2020. The growth in the balance sheet is directly tied to the current operating environment, management will continue to monitor economic conditions and make adjustments to the balance sheet mix as appropriate.

As members of the FHLBB, the Banks have access to both short- and long-term borrowings. As of June 30, 2021, the Company's total borrowing limit from the FHLBB for advances and repurchase agreements was $1.5 billion, compared to $1.9 billion as of December 31, 2020, based on the level of qualifying collateral available for these borrowings.

As of June 30, 2021, the Banks also have access to funding through certain uncommitted lines of credit of $746.0 million.

The Company had a $12.0 million committed line of credit for contingent liquidity as of June 30, 2021. As of June 30, 2021, the Company did not have any outstanding borrowings on this line.

The Company has access to the Federal Reserve Bank's "discount window" to supplement its liquidity. The Company has $427.1 million of borrowing capacity at the Federal Reserve Bank as of June 30, 2021. As of June 30, 2021, the Company did not have any outstanding borrowings with the Federal Reserve Bank.

Additionally, the Banks have access to liquidity through repurchase agreements and additional untapped brokered deposits.

While management believes that the Company has adequate liquidity to meet its commitments and to fund the Banks' lending and investment activities, the availabilities of these funding sources are subject to broad economic conditions and could be restricted in the future. Such restrictions would impact the Company's immediate liquidity and/or additional liquidity needs.

Off-Balance-Sheet Financial Instruments

The Company is party to off-balance-sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit and interest-rate swaps. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.

The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of non-performance by the counterparty is represented by the contractual amount of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

78

Financial instruments with off-balance-sheet risk at the dates indicated follow:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to originate loans and leases:
Commercial real estate	$	118,828	$	174,240
Commercial	126,158		80,291
Residential mortgage	39,720		30,418
Unadvanced portion of loans and leases	883,648		759,053
Unused lines of credit:
Home equity	602,307		584,881
Other consumer	39,457		38,954
Other commercial	408		408
Unused letters of credit:
Financial standby letters of credit	15,437		14,746
Performance standby letters of credit	12,261		5,903
Commercial and similar letters of credit	5,369		5,105
Loan level derivatives:
Receive fixed, pay variable	1,186,507		1,214,146
Pay fixed, receive variable	1,186,507		1,214,146
Risk participation-out agreements	262,985		252,655
Risk participation-in agreements	59,961		60,619
Foreign exchange contracts:
Buys foreign currency, sells U.S. currency	1,360		1,266
Sells foreign currency, buys U.S. currency	1,362		1,273

79

Capital Resources

As of June 30, 2021, the Company and the Banks are each under the primary regulation of, and must comply with, the capital requirements of the FRB. Under these rules, the Company and the Banks are each required to maintain a minimum common equity Tier 1 capital ratio of 4.5%, a minimum Tier 1 capital leverage ratio of 6.0%, a minimum total risk based capital ratio of 8% and a minimum Tier 1 leverage ratio of 4%. Additionally, the Company and the Banks are required to establish a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases. As of June 30, 2021, the Company and the Banks exceeded all regulatory capital requirements, and the Banks were each considered “well-capitalized” under prompt corrective action regulations.

The following table presents actual and required capital amounts and capital ratios as of June 30, 2021 for the Company and the Banks.

	Actual				Minimum Required for Capital Adequacy Purposes				Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer				Minimum Required  to be Considered “Well-Capitalized” Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in Thousands)
At June 30, 2021:
Brookline Bancorp, Inc.
Common equity Tier 1 capital ratio (1)	$	805,395	11.98	%	$	302,527	4.50	%	$	470,598	7.00	%	N/A		N/A
Tier 1 leverage capital ratio (2)	815,040		9.71	%	335,753		4.00	%	335,753		4.00	%	N/A		N/A
Tier 1 risk-based capital ratio (3)	815,040		12.12	%	403,485		6.00	%	571,604		8.50	%	N/A		N/A
Total risk-based capital ratio (4)	973,701		14.48	%	537,956		8.00	%	706,068		10.50	%	N/A		N/A
Brookline Bank
Common equity Tier 1 capital ratio (1)	$	567,162	12.29	%	$	207,667	4.50	%	$	323,038	7.00	%	$	299,964	6.50	%
Tier 1 leverage capital ratio (2)	567,162		10.37	%	218,770		4.00	%	218,770		4.00	%	273,463		5.00	%
Tier 1 risk-based capital ratio (3)	567,162		12.29	%	276,890		6.00	%	392,260		8.50	%	369,186		8.00	%
Total risk-based capital ratio (4)	625,148		13.55	%	369,091		8.00	%	484,432		10.50	%	461,364		10.00	%
BankRI
Common equity Tier 1 capital ratio (1)	$	251,561	11.82	%	$	95,772	4.50	%	$	148,979	7.00	%	$	138,337	6.50	%
Tier 1 leverage capital ratio (2)	251,561		8.29	%	121,380		4.00	%	121,380		4.00	%	151,726		5.00	%
Tier 1 risk-based capital ratio (3)	251,561		11.82	%	127,696		6.00	%	180,903		8.50	%	170,261		8.00	%
Total risk-based capital ratio (4)	278,291		13.08	%	170,209		8.00	%	223,399		10.50	%	212,761		10.00	%

_______________________________________________________________________________

(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.

80

The following table presents actual and required capital amounts and capital ratios as of December 31, 2020 for the Company and the Banks.

	Actual				Minimum Required for Capital Adequacy Purposes				Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer				Minimum Required To Be Considered  “Well-Capitalized” Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in Thousands)
At December 31, 2020:
Brookline Bancorp, Inc.
Common equity Tier 1 capital ratio (1)	$	764,157	11.04	%	$	311,477	4.50	%	$	484,520	7.00	%	N/A		N/A
Tier 1 leverage capital ratio (2)	773,777		8.92	%	346,985		4.00	%	346,985		4.00	%	N/A		N/A
Tier 1 risk-based capital ratio (3)	773,777		11.18	%	415,265		6.00	%	588,292		8.50	%	N/A		N/A
Total risk-based capital ratio (4)	934,933		13.51	%	553,624		8.00	%	726,632		10.50	%	N/A		N/A
Brookline Bank
Common equity Tier 1 capital ratio (1)	$	557,310	11.72	%	$	213,984	4.50	%	$	332,864	7.00	%	$	309,088	6.50	%
Tier 1 leverage capital ratio (2)	557,310		9.82	%	227,010		4.00	%	227,010		4.00	%	283,763		5.00	%
Tier 1 risk-based capital ratio (3)	557,310		11.72	%	285,312		6.00	%	404,192		8.50	%	380,416		8.00	%
Total risk-based capital ratio (4)	617,101		12.97	%	380,633		8.00	%	499,581		10.50	%	475,791		10.00	%
BankRI
Common equity Tier 1 capital ratio (1)	$	239,337	11.03	%	$	97,644	4.50	%	$	151,891	7.00	%	$	141,042	6.50	%
Tier 1 leverage capital ratio (2)	239,337		7.78	%	123,052		4.00	%	123,052		4.00	%	153,816		5.00	%
Tier 1 risk-based capital ratio (3)	239,337		11.03	%	130,192		6.00	%	184,439		8.50	%	173,590		8.00	%
Total risk-based capital ratio (4)	266,633		12.29	%	173,561		8.00	%	227,799		10.50	%	216,951		10.00	%

_______________________________________________________________________________

(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.

81

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk

Market risk is the risk that the market value or estimated fair value of the Company's assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that the Company's net income will be significantly reduced by interest-rate changes.

Interest-Rate Risk

The principal market risk facing the Company is interest-rate risk, which can occur in a variety of forms, including repricing risk, yield-curve risk, basis risk, and prepayment risk. Repricing risk occurs when the change in the average yield of either interest-earning assets or interest-bearing liabilities is more sensitive than the other to changes in market interest rates. Such a change in sensitivity could reflect a number of possible mismatches in the repricing opportunities of the Company's assets and liabilities. Yield-curve risk reflects the possibility that changes in the shape of the yield curve could have different effects on the Company's assets and liabilities. Basis risk occurs when different parts of the balance sheet are subject to varying base rates reflecting the possibility that the spread from those base rates will deviate. Prepayment risk is associated with financial instruments with an option to prepay before the stated maturity, often a disadvantage to person selling the option; this risk is most often associated with the prepayment of loans, callable investments, and callable borrowings.

Asset/Liability Management

Market risk and interest-rate risk management is governed by the Company's ALCO. The ALCO establishes exposure limits that define the Company's tolerance for interest-rate risk. The ALCO and the Company's Treasury Group measure and manage the composition of the balance sheet over a range of possible changes in interest rates while remaining responsive to market demand for loan and deposit products. The ALCO monitors current exposures versus limits and reports those results to the Board of Directors. The policy limits and guidelines serve as benchmarks for measuring interest-rate risk and for providing a framework for evaluation and interest-rate risk-management decision-making. The Company measures its interest-rate risk by using an asset/liability simulation model. The model considers several factors to determine the Company's potential exposure to interest-rate risk, including measurement of repricing gaps, duration, convexity, value-at-risk, market value of portfolio equity under assumed changes in the level of interest rates, the shape of yield curves, and general market volatility.

Management controls the Company's interest-rate exposure using several strategies, which include adjusting the maturities of securities in the Company's investment portfolio, limiting or expanding the terms of loans originated, limiting fixed-rate deposits with terms of more than five years, and adjusting maturities of FHLBB advances. The Company limits this risk by restricting the types of MBSs it invests into those with limited average life changes under certain interest-rate-shock scenarios, or securities with embedded prepayment penalties. The Company also places limits on holdings of fixed-rate mortgage loans with maturities greater than five years. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments.

Measuring Interest-Rate Risk

As noted above, interest-rate risk can be measured by analyzing the extent to which the repricing of assets and liabilities are mismatched to create an interest-rate sensitivity gap. An asset or liability is said to be interest-rate sensitive within a specific period if it will mature or reprice within that period. The interest-rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest-rate-sensitive assets exceeds the amount of interest-rate-sensitive liabilities. A gap is considered negative when the amount of interest-rate-sensitive liabilities exceeds the amount of interest-rate-sensitive assets. During a period of falling interest rates, therefore, a positive gap would tend to adversely affect net interest income. Conversely, during a period of rising interest rates, a positive gap position would tend to result in an increase in net interest income.

The Company's interest-rate risk position is measured using both income simulation and interest-rate sensitivity "gap" analysis. Income simulation is the primary tool for measuring the interest-rate risk inherent in the Company's balance sheet at a given point in time by showing the effect on net interest income, over a twelve-month period, of a variety of interest-rate shocks. These simulations take into account repricing, maturity, and prepayment characteristics of individual products. The ALCO reviews simulation results to determine whether exposure resulting from changes in market interest rates remains within established tolerance levels over a twelve-month horizon, and develops appropriate strategies to manage this exposure. The Company's interest-rate risk analysis remains modestly asset-sensitive as of June 30, 2021.

82

The assumptions used in the Company’s interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates.

As of June 30, 2021, net interest income simulation indicated that the Company's exposure to changing interest rates was within tolerance. The ALCO reviews the methodology utilized for calculating interest-rate risk exposure and may periodically adopt modifications to this methodology. The following table presents the estimated impact of interest-rate changes on the Company's estimated net interest income over the twelve-month periods indicated:

	Estimated Exposure to Net Interest Income over Twelve-Month Horizon Beginning
	June 30, 2021				December 31, 2020
Change in Interest Rate Levels	Dollar Change		Percent Change		Dollar Change		Percent Change
	(Dollars in Thousands)
Up 300 basis points shock	$	23,540	8.9	%	$	19,249	7.1	%
Up 200 basis points ramp	10,587		4.0	%	10,698		3.9	%
Up 100 basis points ramp	5,064		1.9	%	5,193		1.9	%
Down 100 basis points ramp	(4,221)		(1.6)	%	(5,999)		(2.2)	%

The estimated impact of a 300 basis point increase in market interest rates on the Company's estimated net interest income over a twelve-month horizon was a positive 8.9% as of June 30, 2021, compared to a positive 7.1% as of December 31, 2020. The increase in asset sensitivity was due to a shift of funding sources from shorter-term FHLB borrowings and Brokered CDs to non-maturity deposits.

The Company also uses interest-rate sensitivity “gap” analysis to provide a more general overview of its interest-rate risk profile. The interest-rate sensitivity gap is defined as the difference between interest-earning assets and interest-bearing liabilities maturing or repricing within a given time period. At June 30, 2021, the Company’s one-year cumulative gap was a positive $469.3 million, or 5.85% of total interest-earning assets, compared with a negative $330.0 million, or 3.92% of total interest-earning assets, at December 31, 2020.

The assumptions used in the Company's interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates. For additional discussion on interest-rate risk see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of the Company’s 2020 Annual Report on Form 10-K.

Economic Value of Equity ("EVE") at Risk Simulation is conducted in tandem with net interest income simulations to ascertain a longer term view of the Company’s interest-rate risk position by capturing longer-term repricing risk and options risk embedded in the balance sheet. It measures the sensitivity of the economic value of equity to changes in interest rates. The EVE at Risk Simulation values only the current balance sheet and does not incorporate growth assumptions. As with the net interest income simulation, this simulation captures product characteristics such as loan resets, repricing terms, maturity dates, and rate caps and floors. Key assumptions include loan prepayment speeds, deposit pricing elasticity, and non-maturity deposit attrition rates. These assumptions can have significant impacts on valuation results as the assumptions remain in effect for the entire life of each asset and liability. The Company conducts non-maturity deposit behavior studies on a periodic basis to support deposit assumptions used in the valuation process. All key assumptions are subject to a periodic review.

EVE at Risk is calculated by estimating the net present value of all future cash flows from existing assets and liabilities using current interest rates as well as parallel shocks to the current interest-rate environment. The following table sets forth the estimated percentage change in the Company’s EVE at Risk, assuming various shifts in interest rates. Given the interest rate environment as of June 30, 2021, simulations for interest rate declines of more than 100 basis points were not deemed to be meaningful.

83

	Estimated Percent Change in Economic Value of Equity
Parallel Shock in Interest Rate Levels	At June 30, 2021		At December 31, 2020
Up 300 basis points	12.2	%	11.2	%
Up 200 basis points	8.6	%	8.3	%
Up 100 basis points	5.2	%	5.4	%
Down 100 basis points	(11.8)	%	(13.6)	%

The Company's EVE sensitivity remained similar from December 31, 2020 to June 30, 2021.

Item 4. Controls and Procedures

Controls and Procedures

Under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), the Company has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer considered that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including its Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a -15(f). The Company’s internal control system was designed to provide reasonable assurance to its management and the Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. The Company’s management assessed the effectiveness of its internal control over financial reporting as of the end of the period covered by this report.

Management’s Report on Internal Control Over Financial Reporting as of December 31, 2020 and the related Report of Independent Registered Public Accounting Firm thereon appear on pages F-1 and F-2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

84

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

There are no material pending legal proceedings other than those that arise in the normal course of business. In the opinion of Management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings. 

Item 1A.    Risk Factors

There have been no material changes to the risk factors disclosed in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a)        Not applicable.

b)        Not applicable.

c)         None.

Item 3. Defaults Upon Senior Securities

a)        None.

b)        None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

None.

85

Item 6. Exhibits

Exhibits

Exhibit 10.1	Brookline Bancorp, Inc. 2021 Stock Option and Incentive Plan (incorporated by reference to the Company's Current Report on Form 8-K filed on May 13, 2021
Exhibit 10.2	Form of Restricted Stock Award Agreement under the Brookline Bancorp, Inc. 2021 Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company's Registration Statement on Form S-8).
Exhibit 31.1*	Certification of Chief Executive Officer
Exhibit 31.2*	Certification of Chief Financial Officer
Exhibit 32.1**	Section 1350 Certification of Chief Executive Officer
Exhibit 32.2**	Section 1350 Certification of Chief Financial Officer
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted in Inline XBRL and included in Exhibit 101)

_______________________________________________________________________________

* Filed herewith

** Furnished herewith

86

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BROOKLINE BANCORP, INC.
Date: August 6, 2021	By:	/s/ Paul A. Perrault
		Paul A. Perrault
		Chief Executive Officer
		(Principal Executive Officer)
Date: August 6, 2021	By:	/s/ Carl M. Carlson
		Carl M. Carlson
		Co-President and Chief Financial Officer
		(Principal Financial Officer)

87

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Paul A. Perrault, Chief Executive Officer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Brookline Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021

/s/ PAUL A. PERRAULT

Paul A. Perrault

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2 

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Carl M. Carlson, Chief Financial Officer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Brookline Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021

/s/ CARL M. CARLSON

Carl M. Carlson

Co-President and Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1 

STATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT

OF 2002, 18 U.S.C. SECTION 1350 

The undersigned, Paul A. Perrault, is the Chief Executive Officer of Brookline Bancorp, Inc. (the “Company”).

This statement is being furnished in connection with the filing by the Company of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the “Report”).

By execution of this statement, I certify that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

Date: August 6, 2021

/s/ PAUL A. PERRAULT

Paul A. Perrault

Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2 

SSTATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT

OF 2002, 18 U.S.C. SECTION 1350

The undersigned, Carl M. Carlson, is the Chief Accounting Officer of Brookline Bancorp, Inc. (the “Company”).

This statement is being furnished in connection with the filing by the Company of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the “Report”).

By execution of this statement, I certify that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

Date: August 6, 2021

/s/ CARL M. CARLSON

Carl M. Carlson

Co-President and Chief Financial Officer

(Principal Financial Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 31, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	0-23695
Entity Registrant Name	BROOKLINE BANCORP INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3402944
Entity Address, Address Line One	131 Clarendon Street
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02116
City Area Code	617
Local Phone Number	425-4600
Title of 12(b) Security	Common Stock
Trading Symbol	BRKL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		78,192,589
Entity Central Index Key	0001049782
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 36,079	$ 36,069
Short-term investments	284,370	398,848
Total cash and cash equivalents	320,449	434,917
Investment securities available-for-sale	694,151	745,822
Equity securities held-for-trading	0	526
Total investment securities	694,151	746,348
Total loans and leases	7,020,275	7,269,553
Allowance for loan and lease losses	(106,474)	(114,379)
Net loans and leases	6,913,801	7,155,174
Restricted equity securities	31,627	49,786
Premises and equipment, net of accumulated depreciation of $84,191 and $82,233, respectively	71,240	71,568
Right-of-use asset operating leases	22,682	24,143
Deferred tax asset	41,324	40,129
Goodwill	160,427	160,427
Identified intangible assets, net of accumulated amortization of $39,212 and $38,752, respectively	2,692	3,152
Other real estate owned ("OREO") and repossessed assets, net	372	6,515
Other assets	203,199	250,265
Total assets	8,461,964	8,942,424
Deposits:
Demand checking accounts	1,926,713	1,592,205
Interest-bearing deposits	4,967,988	5,318,491
Total deposits	6,894,701	6,910,696
Borrowed funds:
Advances from the Federal Home Loan Bank of Boston ("FHLBB")	204,154	648,849
Subordinated debentures and notes	83,821	83,746
Other borrowed funds	75,039	87,652
Total borrowed funds	363,014	820,247
Operating lease liabilities	22,682	24,143
Mortgagors' escrow accounts	6,231	5,901
Reserve for unfunded credits	13,142	13,071
Accrued expenses and other liabilities	189,942	226,588
Total liabilities	7,489,712	8,000,646
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively	852	852
Additional paid-in capital	738,557	737,178
Retained earnings, partially restricted	304,466	264,892
Accumulated other comprehensive income	6,089	16,490
Treasury stock, at cost; 6,536,478 shares and 6,525,783 shares, respectively	(77,493)	(77,343)
Unallocated common stock held by Employee Stock Ownership Plan ("ESOP"); 37,890 shares and 51,114 shares, respectively	(219)	(291)
Total stockholders' equity	972,252	941,778
Total liabilities and stockholders' equity	8,461,964	8,942,424
Commercial real estate loans
ASSETS
Total loans and leases	3,815,581	3,823,826
Commercial loans and leases
ASSETS
Total loans and leases	2,038,851	2,274,899
Consumer loans
ASSETS
Total loans and leases	$ 1,165,843	$ 1,170,828

XML

Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Premises and equipment, accumulated depreciation and amortization	$ 84,191	$ 82,233
Identified intangible assets, accumulated amortization	$ 39,212	$ 38,752
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	85,177,172	85,177,172
Treasury stock, shares (in shares)	6,536,478	6,525,783
Unallocated common stock held by ESOP, (in shares)	37,890	51,114

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Unaudited Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest and dividend income:
Loans and leases	$ 75,026	$ 77,416	$ 150,035	$ 156,975
Debt securities	3,121	3,701	6,239	6,677
Marketable and restricted equity securities	233	908	534	1,686
Short-term investments	42	99	81	308
Total interest and dividend income	78,422	82,124	156,889	165,646
Interest expense:
Deposits	5,380	12,778	12,087	29,018
Borrowed funds	1,936	5,058	4,587	10,628
Total interest expense	7,316	17,836	16,674	39,646
Net interest income	71,106	64,288	140,215	126,000
(Credit) provision for credit losses	(3,331)	5,347	(5,478)	59,461
Net interest income after provision for credit losses	74,437	58,941	145,693	66,539
Non-interest income:
Loan level derivative income, net	7	1,440	481	3,596
Gain (loss) on investment securities, net	1	586	(6)	1,916
Gain on sales of loans and leases held-for-sale	538	299	1,247	419
Other	1,742	1,468	2,526	4,182
Total non-interest income	5,910	6,235	10,704	15,563
Non-interest expense:
Compensation and employee benefits	25,161	24,619	50,982	49,838
Occupancy	3,832	3,825	7,836	7,778
Equipment and data processing	4,697	4,155	9,190	8,858
Professional services	1,245	1,056	2,471	2,707
FDIC insurance	657	858	1,701	1,236
Advertising and marketing	1,110	1,017	2,210	2,092
Amortization of identified intangible assets	228	311	460	647
Other	1,036	3,268	3,927	6,701
Total non-interest expense	37,966	39,109	78,777	79,857
Income before provision for income taxes	42,381	26,067	77,620	2,245
Provision (benefit) for income taxes	10,779	6,496	19,564	(50)
Net income	$ 31,602	$ 19,571	$ 58,056	$ 2,295
Earnings per common share:
Basic (in dollars per share)	$ 0.40	$ 0.25	$ 0.74	$ 0.03
Diluted (in dollars per share)	$ 0.40	$ 0.25	$ 0.74	$ 0.03
Weighted average common shares outstanding during the year:
Basic (in shares)	78,150,364	78,849,282	78,147,076	79,165,372
Diluted (in shares)	78,470,451	79,015,274	78,437,275	79,340,524
Dividends paid per common share (in dollars per share)	$ 0.120	$ 0.115	$ 0.235	$ 0.230
Deposit fees
Non-interest income:
Non-interest income, fees	$ 3,015	$ 1,929	$ 5,296	$ 4,387
Loan fees
Non-interest income:
Non-interest income, fees	$ 607	$ 513	$ 1,160	$ 1,063

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Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 31,602	$ 19,571	$ 58,056	$ 2,295
Investment securities available-for-sale:
Unrealized securities holding gains (losses)	5,135	3,952	(13,346)	25,115
Income tax (expense) benefit	(1,132)	(867)	2,941	(5,533)
Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes	4,003	3,085	(10,405)	19,582
Less reclassification adjustments for securities gains (losses) included in net income:
Gain (loss) on sales of securities, net	0	634	0	2,987
Income tax expense (benefit)	0	(140)	0	(660)
Net reclassification adjustments for securities gains (losses) included in net income	0	494	0	2,327
Net unrealized securities holding gains (losses)	4,003	2,591	(10,405)	17,255
Cash flow hedges:
Change in fair value of cash flow hedges	8	0	9	0
Reclassification adjustment for (income) expense recognized in earnings	(4)	0	(5)	0
Net change in fair value of cash flow hedges	4	0	4	0
Other comprehensive income (loss), net of taxes	4,007	2,591	(10,401)	17,255
Comprehensive income (loss)	$ 35,609	$ 22,162	$ 47,655	$ 19,550

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Unaudited Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Unallocated Common Stock Held by ESOP
Balance beginning at Dec. 31, 2019	$ 945,606	$ (11,523)	$ 852	$ 736,601	$ 265,376	$ (11,523)	$ 2,283	$ (59,073)	$ (433)
Increase (Decrease) in Stockholders' Equity
Net income	2,295				2,295
Other comprehensive income (loss)	17,255						17,255
Common stock dividends	(18,249)				(18,249)
Compensation under recognition and retention plans	1,278			1,459	(91)			(90)
Treasury stock, repurchase shares	(10,409)							(10,409)
Common stock held by ESOP committed to be released	160			95					65
Balance ending at Jun. 30, 2020	926,413		852	738,155	237,808		19,538	(69,572)	(368)
Balance beginning at Mar. 31, 2020	912,568		852	737,422	227,359		16,947	(69,617)	(395)
Increase (Decrease) in Stockholders' Equity
Net income	19,571				19,571
Other comprehensive income (loss)	2,591						2,591
Common stock dividends	(9,076)				(9,076)
Compensation under recognition and retention plans	700			701	(46)			45
Common stock held by ESOP committed to be released	59			32					27
Balance ending at Jun. 30, 2020	926,413		852	738,155	237,808		19,538	(69,572)	(368)
Balance beginning at Dec. 31, 2020	941,778		852	737,178	264,892		16,490	(77,343)	(291)
Increase (Decrease) in Stockholders' Equity
Net income	58,056				58,056
Other comprehensive income (loss)	(10,401)						(10,401)
Common stock dividends	(18,375)				(18,375)
Restricted stock awards issued, net of awards surrendered	0			150				(150)
Compensation under recognition and retention plans	1,014			1,121	(107)
Common stock held by ESOP committed to be released	180			108					72
Balance ending at Jun. 30, 2021	972,252		852	738,557	304,466		6,089	(77,493)	(219)
Balance beginning at Mar. 31, 2021	945,399		852	737,882	282,301		2,082	(77,463)	(255)
Increase (Decrease) in Stockholders' Equity
Net income	31,602				31,602
Other comprehensive income (loss)	4,007						4,007
Common stock dividends	(9,383)				(9,383)
Restricted stock awards issued, net of awards surrendered	0			30				(30)
Compensation under recognition and retention plans	530			584	(54)
Common stock held by ESOP committed to be released	97			61					36
Balance ending at Jun. 30, 2021	$ 972,252		$ 852	$ 738,557	$ 304,466		$ 6,089	$ (77,493)	$ (219)

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Unaudited Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (in dollars per share)	$ 0.120	$ 0.115	$ 0.235	$ 0.230
Common stock held by ESOP committed to be released, shares (in shares)	6,612	7,107	13,224	14,214

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Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 58,056	$ 2,295
Adjustments to reconcile net income to net cash provided from operating activities:
(Credit) provision for credit losses	(5,478)	59,461
Deferred income tax expense (benefit)	1,746	(22,539)
Depreciation of premises and equipment	2,805	3,025
Amortization of investment securities premiums and discounts, net	1,643	1,048
Amortization of deferred loan and lease origination costs, net	3,057	3,913
Amortization of identified intangible assets	460	647
Amortization of debt issuance costs	50	51
Accretion of acquisition fair value adjustments, net	(48)	(389)
Loss (gain) on investment securities, net	6	(1,916)
Gain on sales of loans and leases held-for-sale	(1,247)	(419)
Gain on sales of OREO and other repossessed assets, net	(2,108)	0
Write-down of OREO and other repossessed assets	165	830
Compensation under recognition and retention plans	1,120	1,370
ESOP shares committed to be released	180	160
Net change in:
Cash surrender value of bank-owned life insurance	(505)	(509)
Equity securities held-for-trading	520	518
Other assets	47,641	(120,680)
Accrued expenses and other liabilities	(36,753)	106,198
Net cash provided from operating activities	71,310	33,064
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	0	131,499
Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale	108,519	56,194
Purchases of investment securities available-for-sale	(71,837)	(438,658)
Proceeds from maturities, calls, and principal repayments of investment securities held to maturity	0	6,302
Proceeds from redemption/sales of restricted equity securities	19,120	3,662
Purchase of restricted equity securities	(961)	(21,482)
Proceeds from sales of loans and leases held-for-investment, net	720	5,901
Net decrease (increase) in loans and leases	243,765	(685,516)
Purchase of premises and equipment, net	(2,638)	(1,906)
Proceeds from sales of OREO and other repossessed assets	8,838	3,148
Net cash provided from (used for) investing activities	305,526	(940,856)
Cash flows from financing activities:
Increase in demand checking, NOW, savings and money market accounts	628,655	679,855
(Decrease) increase in certificates of deposit	(644,606)	(69,356)
Proceeds from FHLBB advances	113,300	2,225,600
Repayment of FHLBB advances	(557,995)	(1,716,499)
(Decrease) in other borrowed funds, net	(12,613)	(5,258)
Increase (decrease) in mortgagors' escrow accounts, net	330	(765)
Repurchases of common stock	0	(10,410)
Payment of dividends on common stock	(18,375)	(18,249)
Net cash (used for) provided from financing activities	(491,304)	1,084,918
Net (decrease) increase in cash and cash equivalents	(114,468)	177,126
Cash and cash equivalents at beginning of period	434,917	77,790
Cash and cash equivalents at end of period	320,449	254,916
Cash paid during the period for:
Interest on deposits, borrowed funds and subordinated debt	17,572	40,577
Income taxes	11,720	13,160
Non-cash investing activities:
Transfer from loans to other real estate owned	$ 752	$ 2,801

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Basis of Presentation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Overview

Brookline Bancorp, Inc. (the "Company") is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company and Bank Rhode Island ("BankRI"), a Rhode Island-chartered financial institution (collectively referred to as the "Banks"). The Banks are both members of the Federal Reserve System. The Company is also the parent of Brookline Securities Corp. ("BSC"). The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries.

Brookline Bank, which includes its wholly-owned subsidiaries, Longwood Securities Corp. ("LSC"), Eastern Funding LLC ("Eastern Funding") and First Ipswich Insurance Agency, operates 30 full-service banking offices in the greater Boston metropolitan area with two additional lending offices. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., Macrolease Corporation ("Macrolease"), BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 20 full-service banking offices in the greater Providence, Rhode Island area.

The Banks' activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in New England, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and investment advisory services. The Company also provides specialty equipment financing through its subsidiaries Eastern Funding, which is based in New York City, New York, and Macrolease, which is based in Plainview, New York, respectively.

The Company and the Banks are supervised, examined and regulated by the Board of Governors of the Federal Reserve System (the "FRB"). As a Massachusetts-chartered trust company, Brookline Bank is also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks (the "DOB"). As a Rhode Island-chartered financial institution, BankRI is subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation.

The Federal Deposit Insurance Corporation ("FDIC") offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also subject to supervision, examination and regulation by the FDIC. As previously disclosed, on July 31, 2019, Brookline Bank converted its charter from a Massachusetts savings bank to a Massachusetts-chartered trust company and ended its membership in the Depositors Insurance Fund (the “DIF”), a private industry-sponsored fund which insures Massachusetts-chartered bank deposit balances in excess of federal deposit insurance coverage. Brookline Bank’s growth in deposit size necessitated its withdrawal from the DIF and the concurrent charter conversion. Brookline Bank’s deposit accounts are and will continue to be insured by the deposit insurance fund of the FDIC up to applicable limits. Term deposits in excess of the FDIC insurance coverage will continue to be insured by the DIF until they reach maturity.

Basis of Financial Statement Presentation

The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for credit losses, the determination of fair market values of assets and liabilities, including

acquired loans, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances.

The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.

Reclassification

Certain previously reported amounts have been reclassified to conform to the current year's presentation.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2021 and 2020

In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaced the previous GAAP method of calculating credit losses. Previously, GAAP required the use of the incurred loss methodology, which used a higher threshold at which probable losses were calculated and recorded. ASU 2016-13 requires the use of an expected loss methodology, referred to as the current expected credit loss (“CECL”) methodology, which requires institutions to account for lifetime expected losses that previously would not have been part of the calculation. The CECL methodology incorporates future forecasting in addition to historical and current measures. The Company adopted all of the above mentioned ASU as of January 1, 2020. The standard had an impact on the Company's consolidated balance sheet. On adoption, the Company recognized an increase in the allowance for loan and lease losses of $6.6 million, and an increase in the reserve for unfunded commitments of $8.9 million. The net, after-tax impact of the increase in the allowance for loan and lease losses and reserve for unfunded commitments was a decrease to retained earnings of $11.5 million shown in the Consolidated Statements of Changes in Stockholders’ Equity. Additional details can be found in Notes 3, 4 and 5.

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Investment Securities

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Adoption of Topic 326

Effective January 1, 2020, the Company adopted the provisions of ASU 2016-13 using the modified retrospective method. There was no allowance for credit loss ("ACL") on available-for-sale debt securities recognized as of June 30, 2021.

The following tables set forth investment securities available-for-sale, held-to-maturity and equity securities held-for-trading at the dates indicated:

	At June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	245,960	$	3,583	$	3,209	$	246,334
GSE CMOs	35,149		803		8		35,944
GSE MBSs	240,300		6,124		370		246,054
Corporate debt obligations	22,239		869		—		23,108
U.S. Treasury bonds	142,080		2,154		2,020		142,214
Foreign government obligations	500		—		3		497
Total investment securities available-for-sale	$	686,228	$	13,533	$	5,610	$	694,151

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	273,820	$	5,455	$	630	$	278,645
GSE CMOs	44,937		1,103		12		46,028
GSE MBSs	312,658		10,956		5		323,609
Corporate debt obligations	22,299		1,168		—		23,467
U.S. Treasury bonds	70,339		3,318		80		73,577
Foreign government obligations	500		—		4		496
Total investment securities available-for-sale	$	724,553	$	22,000	$	731	$	745,822
Equity securities held-for-trading							$	526

As of June 30, 2021, the fair value of all investment securities available-for-sale was $694.2 million, with net unrealized gains of $7.9 million, compared to a fair value of $745.8 million and net unrealized gains of $21.3 million as of December 31, 2020. As of June 30, 2021, $214.2 million, or 30.9% of the portfolio, had gross unrealized losses of $5.6 million, compared to $86.9 million, or 11.7% of the portfolio, with gross unrealized losses of $0.7 million as of December 31, 2020.

As of June 30, 2021, the Company did not hold any equity securities held-for-trading, compared to a fair value of $0.5 million as of December 31, 2020.

Investment Securities as Collateral

As of June 30, 2021 and December 31, 2020, respectively, $402.1 million and $448.7 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and Federal Home Loan Bank of Boston ("FHLBB") borrowings. The Banks had no outstanding FRB borrowings as of June 30, 2021 and December 31, 2020.

Allowance for Credit Losses-Available-for-Sale Securities

For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $2.6 million, as of June 30, 2021 and December 31, 2020.

A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended June 30, 2021 and 2020.

Assessment for Available for Sale Securities for Impairment

Investment securities as of June 30, 2021 and December 31, 2020 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:

	At June 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	91,341	$	3,018	$	7,874	$	191	$	99,215	$	3,209
GSE CMOs	—		—		924		8		924		8
GSE MBSs	49,570		367		374		3		49,944		370
U.S. Treasury bonds	63,658		2,020		—		—		63,658		2,020
Foreign government obligations	—		—		497		3		497		3
Temporarily impaired investment securities available-for-sale	204,569		5,405		9,669		205		214,238		5,610
Total temporarily impaired investment securities	$	204,569	$	5,405	$	9,669	$	205	$	214,238	$	5,610

	At December 31, 2020
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	72,745	$	630	$	—	$	—	$	72,745	$	630
GSE CMOs	832		7		872		5		1,704		12
GSE MBSs	2,102		5		97		—		2,199		5
U.S. Treasury bonds	9,750		80		—		—		9,750		80
Foreign government obligations	—		—		496		4		496		4
Temporarily impaired investment securities available-for-sale	85,429		722		1,465		9		86,894		731
Total temporarily impaired investment securities	$	85,429	$	722	$	1,465	$	9	$	86,894	$	731

The Company performs regular analyses of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers.

Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income.

Investment Securities Available-For-Sale Impairment Analysis

The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were impaired as of June 30, 2021.The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of June 30, 2021. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods.

U.S. Government-Sponsored Enterprises

The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, mortgage-backed securities ("MBSs"), and collateralized mortgage obligations ("CMOs"). GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLBB and the Federal Farm Credit Bank. As of June 30, 2021, the Company held GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in its available-for-sale portfolio with an estimated fair value of $5.6 million, all of which were backed explicitly by the full faith and credit of the U.S. Government, compared to $7.3 million as of December 31, 2020.

As of June 30, 2021, the Company owned 54 GSE debentures with a total fair value of $246.3 million, and a net unrealized gain of $0.4 million. As of December 31, 2020, the Company held 54 GSE debentures with a total fair value of

$278.6 million, with a net unrealized gain of $4.8 million. As of June 30, 2021, 10 of the 54 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 7 of the 54 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase GSE debentures. This compares to the same period in 2020 when the Company purchased $169.0 million GSE debentures. During the six months ended June 30, 2020, the Company transferred 9 held-to-maturity GSE debentures with a total fair value of $25.5 million to the available-for-sale portfolio.

As of June 30, 2021, the Company owned 33 GSE CMOs with a total fair value of $35.9 million and a net unrealized gain of $0.8 million. As of December 31, 2020, the Company held 33 GSE CMOs with a total fair value of $46.0 million with a net unrealized gain of $1.1 million. As of June 30, 2021 and December 30, 2020, 2 of the 33 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021 and 2020, the Company did not purchase any GSE CMOs.

As of June 30, 2021, the Company owned 139 GSE MBSs with a total fair value of $246.1 million and a net unrealized gain of $5.8 million. As of December 31, 2020, the Company held 140 GSE MBSs with a total fair value of $323.6 million with a net unrealized gain of $11.0 million. As of June 30, 2021, 20 of the 139 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 17 of the 140 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase any GSE MBSs. This compares to the same period in 2020 when the Company purchased $248.4 million GSE MBSs. During the six months ended June 30, 2020, the Company transferred 8 held-to-maturity GSE MBSs with a total fair value of $9.0 million to the available-for-sale portfolio.

Corporate Obligations

The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of June 30, 2021, the Company held 6 corporate obligation securities with a total fair value of $23.1 million and a net unrealized gain of $0.9 million. As of December 31, 2020, the Company held 6 corporate obligation securities with a total fair value of $23.5 million and a net unrealized gain of $1.2 million. As of June 30, 2021 and December 31, 2020, none of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. During the six months ended June 30, 2021 and 2020, the Company did not purchase any corporate obligations. During the six months ended June 30, 2020, the Company transferred 1 held-to-maturity corporate obligation security with a total fair value of $0.5 million to the available-for-sale portfolio.

U.S. Treasury Bonds

The Company invests in securities issued by the U.S. government. As of June 30, 2021, the Company owned 19 U.S. Treasury bonds with a total fair value of $142.2 million and an unrealized gain of $0.1 million. This compares to 12 U.S. Treasury bonds with a total fair value of $73.6 million and an unrealized gain of $3.2 million as of December 31, 2020. As of June 30, 2021, 7 of the 19 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 1 of the 12 securities in this portfolio was an unrealized loss position. During the six months ended June 30, 2021 the Company purchased $71.8 million U.S. Treasury bonds, compared to the same period in 2020 when the Company purchased $21.2 million U.S. Treasury bonds.

Municipal Obligations

As of June 30, 2021 and December 31, 2020, the Company did not own any municipal obligation securities. During the six months ended June 30, 2021 and 2020, the Company did not purchase any municipal obligations. During the six months ended June 30, 2020, the Company transferred 93 held-to-maturity municipal obligations securities with a total fair value of $47.7 million to the available-for-sale portfolio.

Foreign Government Obligations

As of June 30, 2021 and December 31, 2020, the Company owned 1 foreign government obligation security with a fair value of $0.5 million, which approximated cost. As of June 30, 2021 and December 31, 2020 respectively, the security was in

an unrealized loss position. During the six months ended June 30, 2021 and 2020, the Company did not purchase any foreign government obligations.

Equity Securities Held-for-Trading

From time to time, the Company will invest in equity securities held-for-trading. As of June 30, 2021, the Company did not own any equity securities held-for-trading. As of December 31, 2020, the Company owned equity securities held-for-trading with a fair value of $0.5 million.

Portfolio Maturities

The final stated maturities of the debt securities are as follows for the periods indicated:

	At June 30, 2021						At December 31, 2020
	Amortized Cost		Estimated Fair Value		Weighted Average Rate		Amortized Cost		Estimated Fair Value		Weighted Average Rate
	(Dollars in Thousands)
Investment securities available-for-sale:
Within 1 year	$	60,865	$	61,478	1.98	%	$	31,633	$	32,013	2.02	%
After 1 year through 5 years	251,542		256,988		1.95	%	146,274		153,262		2.22	%
After 5 years through 10 years	115,322		120,226		2.26	%	222,271		225,568		1.43	%
Over 10 years	258,499		255,459		1.31	%	324,375		334,979		1.86	%
	$	686,228	$	694,151	1.77	%	$	724,553	$	745,822	1.81	%

Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows.

As of June 30, 2021, issuers of debt securities with an estimated fair value of $67.8 million had the right to call or prepay the obligations. Of the $67.8 million, approximately $12.7 million matures in 1 - 5 years, $45.2 million matures in 6 - 10 years, and $9.9 million matures after ten years. As of December 31, 2020, issuers of debt securities with an estimated fair value of approximately $90.8 million had the right to call or prepay the obligations. Of the $90.8 million, $12.9 million matures in 1-5 years, and $68.1 million matures in 6 - 10 years, and $9.8 million matures after ten years.

Security Sales

The Company sold $0.5 million of investment securities available-for-sale or equity securities held-for-trading during the six months ended June 30, 2021. This compares to $132.0 million securities sold during the six months ended June 30, 2020.

Sales of investment and restricted equity securities are summarized as follows:

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	$	520	$	132,014
Gross gains from securities sales	1		3,152
Gross losses from securities sales	—		(167)
Gain on sales of securities, net	$	1	$	2,985

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Loans and Leases

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans and Leases

Loans and Leases

The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:

	At June 30, 2021				At December 31, 2020
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars In Thousands)
Commercial real estate loans:
Commercial real estate	$	2,646,104	3.45	%	$	2,578,773	3.58	%
Multi-family mortgage	967,891		3.44	%	1,013,432		3.53	%
Construction	201,586		3.65	%	231,621		3.49	%
Total commercial real estate loans	3,815,581		3.46	%	3,823,826		3.56	%
Commercial loans and leases:
Commercial (1)	918,345		2.86	%	1,131,668		2.55	%
Equipment financing	1,074,088		7.07	%	1,092,461		7.26	%
Condominium association	46,418		4.46	%	50,770		4.55	%
Total commercial loans and leases	2,038,851		5.11	%	2,274,899		4.86	%
Consumer loans:
Residential mortgage	799,027		3.61	%	791,317		3.74	%
Home equity	331,038		3.26	%	346,652		3.26	%
Other consumer	35,778		2.93	%	32,859		3.04	%
Total consumer loans	1,165,843		3.49	%	1,170,828		3.58	%
Total loans and leases	$	7,020,275	3.93	%	$	7,269,553	3.97	%

______________________________________________________________________

(1) Including $348,411 and $489,216 of PPP loans as of June 30, 2021 and December 31, 2020, respectively. These loans are fully guaranteed by the SBA and therefore, have not been reserved for in the allowance for credit losses as of June 30, 2021 and December 31, 2020.

Accrued interest on loans and leases, which were excluded from the amortized cost of loans and leases totaled $18.5 million and $20.5 million at June 30, 2021 and December 31, 2020, respectively, and were included in other assets in the accompanying consolidated balance sheets.

The net unamortized deferred loan origination costs included in total loans and leases were $2.6 million and $4.1 million as of June 30, 2021 and December 31, 2020, respectively.

The Banks and their subsidiaries lend primarily in all New England states, with the exception of equipment financing, 27.7% of which is in the greater New York and New Jersey metropolitan area and 72.3% of which is in other areas in the United States of America as of June 30, 2021.

Loans and Leases Pledged as Collateral

As of June 30, 2021 and 2020, there were $3.1 billion and $3.5 billion respectively of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of June 30, 2021 and December 31, 2020.

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Allowance for Loan and Lease Losses

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses

The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:

	Three Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2021	$	79,929	$	25,825	$	4,083	$	109,837
Charge-offs	(28)		(1,184)		(9)		(1,221)
Recoveries	11		489		126		626
(Credit) provision for loan and lease losses excluding unfunded commitments	(5,903)		3,234		(99)		(2,768)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Three Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2020	$	82,179	$	26,774	$	4,228	$	113,181
Charge-offs	—		(1,794)		(9)		(1,803)
Recoveries	94		296		30		420
(Credit) provision for loan and lease losses excluding unfunded commitments	7,738		(338)		355		7,755
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

	Six Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2020	$	80,132	$	29,498	$	4,749	$	114,379
Charge-offs	(28)		(3,323)		(13)		(3,364)
Recoveries	11		819		179		1,009
(Credit) provision for loan and lease losses excluding unfunded commitments	(6,106)		1,370		(814)		(5,550)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Six Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2019	$	30,285	$	24,826	$	5,971	$	61,082
Adoption of ASU 2016-13 (CECL)	11,694		(2,672)		(2,390)		$	6,632
Charge-offs	—		(4,321)		(21)		(4,342)
Recoveries	94		543		88		725
Provision for loan and lease losses	47,938		6,562		956		55,456
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $13.1 million and $13.1 million at June 30, 2021 and December 31, 2020, respectively.

Provision for Credit Losses

The provisions for credit losses are set forth below for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Provision for loan and lease losses:
Commercial real estate	$	(5,903)	$	7,738	$	(6,106)	$	47,938
Commercial	3,234		(338)		1,370		6,562
Consumer	(99)		355		(814)		956
Total (credit) provision for loan and lease losses	(2,768)		7,755		(5,550)		55,456
Unfunded commitments	(563)		(2,408)		72		4,005
Total (credit) provision for credit losses	$	(3,331)	$	5,347	$	(5,478)	$	59,461

Allowance for Loan and Lease Losses Methodology

Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized.

To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The models include: Commercial real estate ("CRE"), Commercial and industrial ("C&I"), and Retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. The expected loss estimates for two small commercial portfolios and a runoff auto portfolio are based on historical loss rates.

Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available.

The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two to three years from the forecast start date and largely completes within the first five years. Because the reasonable and supportable economic forecasts used in the models are mean reverting, the models are therefore considered to be implicitly mean reverting.

Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at June 30, 2021 reflect the immediate and longer-term effects of the COVID-19 pandemic as well as the associated policies and fiscal support provided by local and national authorities.

The CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a scalar for each model. Each scalar was calculated by examining the loss rates of peer banks that have similar operations and asset bases to the Company and comparing these peer group loss rates to the model results. Peer group loss rates were used in the scalar calculation because management believes the peer group’s historical losses provide a better reflection of the Company’s current portfolio and operating procedures than the Company’s historical losses. Qualitative adjustments are also applied to the results of the three loss rate models.

For June 30, 2021, management applied qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts as compared to previous quarters. Additional qualitative adjustments were applied to the Commercial, Multifamily, and commercial real estate (includes owner occupied, non-owner occupied, and construction) portfolios based on the Company’s historical loss experience and the loss experience of the Company’s peer group. High risk segments of the Eastern Funding and Macrolease portfolios also received additional qualitative adjustments based on recent loss history and expected liquidation values. These qualitative adjustments resulted in additions to reserves for all portfolios, as compared to the model output.

Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary.

Beginning January 1, 2020, the Company implemented the CECL methodology to calculate the allowance for credit losses. Prior to January 1, 2020, the Company calculated the allowance for loan and lease losses using the incurred losses methodology.

The general allowance for loan and lease losses was $105.4 million as of June 30, 2021, compared to $112.1 million as of December 31, 2020. The reduction in the ACL is attributable to continued low level of net charge-offs, an improving macro-economic forecast, and a reduction in qualitative adjustments that consider longer-term risks.

The specific allowance for loan and lease losses was $1.1 million as of June 30, 2021, compared to $2.3 million as of December 31, 2020. The specific allowance decreased by $1.2 million during the six months ended June 30, 2021 primarily due the decrease in specific reserves for the remaining individually evaluated loans due to improving collection prospects.The specific allowance for loan and lease losses was $1.1 million as of June 30, 2021 and March 31, 2021.

As of June 30, 2021, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios.

Credit Quality Assessment

At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a troubled debt restructuring ("TDR") loan.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor

strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk.

The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows:

1 -4 Rating—Pass

Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral.

5 Rating—Other Assets Especially Mentioned ("OAEM")

Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

6 Rating—Substandard

Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

7 Rating—Doubtful

Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

8 Rating—Definite Loss

Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets.

Credit Quality Information

The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of June 30, 2021.

	June 30, 2021
	2021	2020	2019	2018	2017	Prior	Revolving Loans	Revolving Loans Converted to Term Loans	Total
		(In Thousands)
Commercial Real Estate

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Pass	$	250,161	$	353,110	$	367,648	$	247,536	$	217,389	$	1,054,660	$	50,918	$	14,237	$	2,555,659
OAEM	687		834		27,398		—		4,902		42,220		—		—		76,041
Substandard	—		195		—		—		1,604		8,611		—		3,994		14,404
Total	250,848		354,139		395,046		247,536		223,895		1,105,491		50,918		18,231		2,646,104
Multi-Family Mortgage
Pass	60,027		124,950		144,801		115,350		93,077		394,645		4,784		27,518		965,152
OAEM	—		—		—		—		—		2,739		—		—		2,739
Total	60,027		124,950		144,801		115,350		93,077		397,384		4,784		27,518		967,891
Construction
Pass	4,663		52,601		46,573		87,246		658		6,023		—		—		197,764
Substandard	—		—		3,822		—		—		—		—		—		3,822
Total	4,663		52,601		50,395		87,246		658		6,023		—		—		201,586
Commercial
Pass	312,085		152,581		47,241		38,867		20,149		125,055		192,823		1,359		890,160
OAEM	—		1,592		3,933		—		12,840		7		1,521		—		19,893
Substandard	—		31		—		107		299		2,511		4,485		857		8,290
Doubtful	—		—		—		—		—		1		—		1		2
Total	312,085		154,204		51,174		38,974		33,288		127,574		198,829		2,217		918,345
Equipment Financing
Pass	149,995		304,555		265,845		168,156		89,716		74,929		2,139		618		1,055,953
OAEM	—		196		1,185		480		172		691		—		—		2,724
Substandard	—		1,094		2,939		5,013		3,529		1,873		—		—		14,448
Doubtful	—		1		381		1		6		574		—		—		963
Total	149,995		305,846		270,350		173,650		93,423		78,067		2,139		618		1,074,088
Condominium Association
Pass	717		9,132		8,390		4,531		6,301		15,624		1,586		40		46,321
Substandard	—		—		—		—		—		97		—		—		97
Total	717		9,132		8,390		4,531		6,301		15,721		1,586		40		46,418

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Other Consumer
Pass	613		215		504		1,818		30		765		31,817		14		35,776
Substandard	—		—		—		—		—		1		—		1		2
Total	613		215		504		1,818		30		766		31,817		15		35,778
Total
Pass	778,261		997,144		881,002		663,504		427,320		1,671,701		284,067		43,786		5,746,785
OAEM	687		2,622		32,516		480		17,914		45,657		1,521		—		101,397
Substandard	—		1,320		6,761		5,120		5,432		13,093		4,485		4,852		41,063
Doubtful	—		1		381		1		7		575		—		1		966
Total	$	778,948	$	1,001,087	$	920,660	$	669,105	$	450,673	$	1,731,026	$	290,073	$	48,639	$	5,890,211

As of June 30, 2021, there were no loans categorized as definite loss.

For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model.

	At June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Residential
Credit Scores
Over 700	$	95,094	$	111,814	$	75,571	$	49,291	$	44,618	$	152,417	$	3,071	$	—	$	531,876
661 - 700	10,810		21,194		15,573		9,047		13,001		27,049		—		—		96,674
600 and below	2,174		6,034		4,321		3,602		4,205		15,194		—		—		35,530
Data not available*	12,590		11,956		16,217		15,553		13,139		65,134		—		358		134,947
Total	$	120,668	$	150,998	$	111,682	$	77,493	$	74,963	$	259,794	$	3,071	$	358	$	799,027
Home Equity
Credit Scores
Over 700	$	955	$	1,486	$	2,064	$	1,962	$	1,885	$	9,867	$	238,867	$	2,306	$	259,392
661 - 700	75		113		320		464		253		2,112		43,102		396		46,835
600 and below	—		56		104		255		13		514		9,817		923		11,682
Data not available*	—		100		—		—		—		1,295		10,845		889		13,129
Total	$	1,030	$	1,755	$	2,488	$	2,681	$	2,151	$	13,788	$	302,631	$	4,514	$	331,038

_______________________________________________________________________________

* Represents loans and leases for which data are not available.

The following tables present the recorded investment in loans in each class as of December 31, 2020, by credit quality indicator.

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Commercial Real Estate
Pass	$	352,832	$	412,071	$	282,629	$	255,786	$	243,477	$	944,676	$	55,392	$	12,585	$	2,559,448
OAEM	—		477		—		—		3,312		8,991		—		—		12,780
Substandard	—		—		—		1,261		2		5,220		—		62		6,545
Total	352,832		412,548		282,629		257,047		246,791		958,887		55,392		12,647		2,578,773
Multi-Family Mortgage
Pass	125,434		136,620		162,180		103,997		127,873		304,224		15,845		34,871		1,011,044
OAEM	—		—		—		—		—		2,388		—		—		2,388
Total	125,434		136,620		162,180		103,997		127,873		306,612		15,845		34,871		1,013,432
Construction
Pass	46,249		56,074		112,856		1,799		2,788		404		3,834		—		224,004
Substandard	—		4,853		—		—		2,764		—		—		—		7,617
Total	46,249		60,927		112,856		1,799		5,552		404		3,834		—		231,621
Commercial
Pass	574,542		66,278		41,325		62,112		22,085		113,715		226,495		1,687		1,108,239
OAEM	310		4,850		—		—		35		17		5,382		—		10,594
Substandard	80		—		129		389		29		7,612		3,930		664		12,833
Doubtful	—		—		—		—		—		—		—		2		2
Total	574,932		71,128		41,454		62,501		22,149		121,344		235,807		2,353		1,131,668
Equipment Financing
Pass	332,375		306,231		209,219		121,845		56,241		45,451		636		576		1,072,574
OAEM	196		1,066		290		93		609		85		—		—		2,339
Substandard	402		4,385		5,280		3,545		1,891		631		—		—		16,134
Doubtful	1		64		24		27		1,292		6		—		—		1,414
Total	332,974		311,746		214,813		125,510		60,033		46,173		636		576		1,092,461
Condominium Association
Pass	6,455		9,918		5,399		7,928		5,213		12,682		2,684		379		50,658
Substandard	—		—		—		—		112		—		—		—		112
Total	6,455		9,918		5,399		7,928		5,325		12,682		2,684		379		50,770
Other Consumer
Pass	694		549		1,938		32		570		301		28,755		18		32,857
Substandard	—		—		—		—		—		—		—		2		2
Total	694		549		1,938		32		570		301		28,755		20		32,859
Total

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Pass	1,438,581		987,741		815,546		553,499		458,247		1,421,453		333,641		50,116		6,058,824
OAEM	506		6,393		290		93		3,956		11,481		5,382		—		28,101
Substandard	482		9,238		5,409		5,195		4,798		13,463		3,930		728		43,243
Doubtful	1		64		24		27		1,292		6		—		2		1,416
Total	$	1,439,570	$	1,003,436	$	821,269	$	558,814	$	468,293	$	1,446,403	$	342,953	$	50,846	$	6,131,584
As of December 31, 2020, there were no loans categorized as definite loss.

	At December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving		Converted		Total
	(In Thousands)
Residential
Credit Scores
Over 700	$	119,566	$	94,300	$	62,452	$	53,662	$	47,327	$	124,999	$	4,442	$	—	$	506,748
661 - 700	21,820		19,426		10,943		15,616		8,132		23,282		—		—		99,219
600 and below	6,901		5,659		4,763		4,318		4,553		13,997		—		—		40,191
Data not available*	19,209		17,082		16,199		14,153		5,729		71,456		—		1,331		145,159
Total	$	167,496	$	136,467	$	94,357	$	87,749	$	65,741	$	233,734	$	4,442	$	1,331	$	791,317
Home Equity
Credit Scores
Over 700	$	1,546	$	2,832	$	2,440	$	2,770	$	910	$	12,804	$	247,538	$	2,397	$	273,237
661 - 700	122		459		499		566		305		2,793		45,356		1,334		51,434
600 and below	59		108		266		13		39		541		10,139		878		12,043
Data not available*	61		—		—		—		—		1,387		7,330		1,160		9,938
Total	$	1,788	$	3,399	$	3,205	$	3,349	$	1,254	$	17,525	$	310,363	$	5,769	$	346,652

Age Analysis of Past Due Loans and Leases

The following table presents an age analysis of the amortized cost basis in loans and leases as of June 30, 2021.

	At June 30, 2021
	Past Due												Past Due Greater Than 90 Days and Accruing
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual		Non-accrual with No Related Allowance
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	1,157	$	1,517	$	11,225	$	13,899	$	2,632,205	$	2,646,104	$	—	$	11,657	$	11,452
Multi-family mortgage	3,035		—		—		3,035		964,856		967,891		—		—		—
Construction	—		—		—		—		201,586		201,586		—		—		—
Total commercial real estate loans	4,192		1,517		11,225		16,934		3,798,647		3,815,581		—		11,657		11,452
Commercial loans and leases:
Commercial	153		761		1,182		2,096		916,249		918,345		—		3,207		1,723
Equipment financing	3,914		2,451		10,866		17,231		1,056,857		1,074,088		2,850		14,872		5,330
Condominium association	453		85		—		538		45,880		46,418		—		97		—
Total commercial loans and leases	4,520		3,297		12,048		19,865		2,018,986		2,038,851		2,850		18,176		7,053
Consumer loans:
Residential mortgage	1,075		1,119		3,104		5,298		793,729		799,027		301		3,638		3,185
Home equity	363		—		530		893		330,145		331,038		3		744		512
Other consumer	2		5		1		8		35,770		35,778		—		1		—
Total consumer loans	1,440		1,124		3,635		6,199		1,159,644		1,165,843		304		4,383		3,697
Total loans and leases	$	10,152	$	5,938	$	26,908	$	42,998	$	6,977,277	$	7,020,275	$	3,154	$	34,216	$	22,202

There is no interest income recognized on non-accrual loans for the three months ended June 30, 2021.

The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2020.

	At December 31, 2020
	Past Due												Loans and Leases Past Due Greater Than 90 Days and Accruing				Non-accrual with No Related Allowance
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	18,294	$	12,402	$	7,272	$	37,968	$	2,540,805	$	2,578,773	$	4,722	$	3,300	$	2,580
Multi-family mortgage	813		—		—		813		1,012,619		1,013,432		—		—		—
Construction	—		—		7,617		7,617		224,004		231,621		3,764		3,853		3,853
Total commercial real estate loans	19,107		12,402		14,889		46,398		3,777,428		3,823,826		8,486		7,153		6,433
Commercial loans and leases:
Commercial	451		304		9,171		9,926		1,121,742		1,131,668		3,486		7,702		6,263
Equipment financing	5,970		2,263		9,391		17,624		1,074,837		1,092,461		—		16,757		4,062
Condominium association	282		297		—		579		50,191		50,770		—		112		112
Total commercial loans and leases	6,703		2,864		18,562		28,129		2,246,770		2,274,899		3,486		24,571		10,437
Consumer loans:
Residential mortgage	2,161		648		3,841		6,650		784,667		791,317		—		5,587		5,117
Home equity	580		215		588		1,383		345,269		346,652		3		1,136		824
Other consumer	13		—		1		14		32,845		32,859		—		1		—
Total consumer loans	2,754		863		4,430		8,047		1,162,781		1,170,828		3		6,724		5,941
Total loans and leases	$	28,564	$	16,129	$	37,881	$	82,574	$	7,186,979	$	7,269,553	$	11,975	$	38,448	$	22,811

Impaired Loans and Leases

A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and TDR loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses.

The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. Periods prior to January 1, 2020 are presented in accordance with accounting rules effective at that time.

	At June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	93	$	922	$	91	$	1,106
Collectively evaluated	73,916		27,442		4,010		105,368
Total	$	74,009	$	28,364	$	4,101	$	106,474
Loans and Leases:
Individually evaluated	$	18,893	$	20,639	$	7,552	$	47,084
Collectively evaluated	3,796,688		2,018,212		1,158,291		6,973,191
Total	$	3,815,581	$	2,038,851	$	1,165,843	$	7,020,275

	At December 31, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	183	$	2,020	$	108	$	2,311
Collectively evaluated	79,949		27,478		4,641		112,068
Total loans and leases	$	80,132	$	29,498	$	4,749	$	114,379
Loans and Leases:
Individually evaluated	$	14,159	$	24,727	$	8,760	$	47,646
Collectively evaluated	3,809,667		2,250,172		1,162,068		7,221,907
Total loans and leases	$	3,823,826	$	2,274,899	$	1,170,828	$	7,269,553

Troubled Debt Restructuring Loans and Leases

The following table sets forth information regarding TDR loans and leases at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Troubled debt restructurings:
On accrual	$	14,387	$	11,483
On nonaccrual	6,410		7,476
Total troubled debt restructurings	$	20,797	$	18,959

Total TDR loans and leases increased by $1.8 million to $20.8 million at June 30, 2021 from $19.0 million at December 31, 2020, primarily driven by 41 new TDR relationships, consisting of 40 equipment financing relationships totaling of $2.9 million, and one $0.8 million residential relationship, partially offset by the payoff of eight TDR relationships totaling of $1.2 million, as well as the payment on a TDR relationships during the six months ended June 30, 2021.

The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows.

	At and for the Three Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Credit Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Amortized Cost
	(Dollars in Thousands)
Equipment financing	28	1,236		1,222		9		483		5	211
Residential mortgage	1	864		864		—		—		—	—
Home equity	1	312		312		—		—		—	—
Total loans and leases	30	$	2,412	$	2,398	$	9	$	483	5	$	211

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

	At and for the Three Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Commercial real estate	—	$	—	$	—	$	—	$	—	1	$	221
Equipment financing	11	1,174		1,160		—		1,160		—	—
Total loans and leases	11	$	1,174	$	1,160	$	—	$	1,160	1	$	221

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

	At and for the Six Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases		Amortized Cost
	(Dollars in Thousands)
Originated:
Commercial real estate	1	$	497	$	497	$	—	$	—	$	—	$	—
Equipment financing	40	2,954		2,922		9		713		5		211
Residential mortgage	1	864		864		—		—		—		—
Home equity	1	312		312		—		—		—		—
Total loans and leases	43	$	4,627	$	4,595	$	9	$	713	5		$	211

	At and for the Six Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses						Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Additional Commitment		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Originated:
Commercial real estate	—	$	—	$	—	$	—	$	—	—		1	$	221
Commercial	2	297		302		—		—		—		—	—
Equipment financing	11	1,174		1,160		—		1,160		—		—	—
Home equity	1	200		200		—		—		—		—	—
Total loans and leases	14	$	1,671	$	1,662	$	—	$	1,160	$	—	1	$	221

The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Extended maturity	$	1,143	$	334	$	2,667	$	636
Adjusted principal	—		44		—		44
Combination maturity, principal, interest rate	1,255		782		1,928		982
Total loans with modifications	$	2,398	$	1,160	$	4,595	$	1,662

The TDR loans and leases that were modified for the three months ended June 30, 2021 and 2020 were $2.4 million and $1.2 million, respectively. The increases in TDR loans and leases that were modified for the three months ended June 30, 2021 were primarily due to the modification of one home equity relationship of $0.3 million, and one residential relationship of $0.9 million during the three months ended June 30, 2021.

The net charge-offs for performing and nonperforming TDR loans and leases for the six month ended June 30, 2021 and 2020 were $0.5 million and $0.6 million respectively.

The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs as of June 30, 2021 was $2.1 million. As of June 30, 2020, there were $1.8 million commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs.

The Coronavirus Aid, Relief and Economic Security ("CARES") Act and regulatory guidance issued by the Federal banking agencies provides that certain short-term loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic are not required to be treated as TDRs under GAAP. As such, the Company suspended TDR accounting for COVID-19 pandemic related loan modifications meeting the loan modification criteria set forth under the CARES Act or as specified in the regulatory guidance. Further, loans granted payment deferrals related to the COVID-19 pandemic are not required to be reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). As of June 30, 2021, the Company granted 4,401 short-term deferments on loan and lease balances of $991.3 million of which 4,250 loans and leases representing balances $895.3 million returned to payment and 151 loans and leases representing balances of $96.0 million remain in deferment. The outstanding deferred loans and leases represent 1.4% of the Company's total loan and lease balances.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Goodwill	$	160,427	$	160,427
Other intangible assets:
Core deposits	1,603		2,063
Trade name	1,089		1,089
Total other intangible assets	2,692		3,152
Total goodwill and other intangible assets	$	163,119	$	163,579

At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million, has an indefinite life and ceased to amortize.

The weighted-average amortization period for the core deposit intangible is 5.61 years.

The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:

Remainder of 2021	$	416
Year ending:
2022	494
2023	263
2024	151
2025	103
2026	74
Thereafter	102
Total	$	1,603

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

For the six months ended June 30, 2021 and 2020, the Company’s accumulated other comprehensive income (loss) includes the following three components: (i) unrealized holding gains (losses) on investment securities available-for-sale; (ii) change in the fair value of cash flow hedges; and (iii) adjustment of accumulated obligation for postretirement benefits.

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:

	Three Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2021	$	2,174	$	7	$	(99)	$	2,082
Other comprehensive income (loss)	4,003		8		—		4,011
Reclassification adjustment for (income) expense recognized in earnings	—		(4)		—		(4)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Three Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2020	$	16,863	$	—	$	84	$	16,947
Other comprehensive income (loss)	3,085		—		—		3,085
Reclassification adjustment for (income) expense recognized in earnings	494		—		—		494
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

	Six Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2020	$	16,582	$	7	$	(99)	$	16,490
Other comprehensive income (loss)	(10,405)		9		—		(10,396)
Reclassification adjustment for (income) expense recognized in earnings	—		(5)		—		(5)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Six Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2019	$	2,199	$	—	$	84	$	2,283
Other comprehensive income (loss)	19,582		—		—		19,582
Reclassification adjustment for (income) expense recognized in earnings	2,327		—		—		2,327
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the

Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging".

The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

As of June 30, 2021, the Company paid its counterparties a fixed weighted average interest rate of 0.10% over a maximum period of 2 years for derivative instruments that are designated as and qualify as cash flow hedging instruments.

The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank.

The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions.

Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets.

The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	June 30, 2021
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	128	$	8,395	$	2,387	$	4,658	$160,737		$	1,010,330	$	1,186,507	$	83,306
Pay fixed, receive variable	128	8,395		2,387		4,658		160,737		1,010,330		1,186,507		83,306
Risk participation-out agreements	37	—		—		6,939		29,276		226,770		262,985		1,289
Risk participation-in agreements	8	—		—		18,859		—		41,102		59,961		232
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	11	$	1,360	$	—	$	—	$	—	$	—	$	1,360	$	62
Sells foreign currency, buys U.S. currency	16	1,362		—		—		—		—		1,362		59

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	136	$	—	$	8,541	$	16,447	$	99,014	$	1,090,144	$	1,214,146	$	129,284
Pay fixed, receive variable	136	—		8,541		16,447		99,014		1,090,144		1,214,146		129,284
Risk participation-out agreements	37	—		—		7,009		22,733		222,913		252,655		1,843
Risk participation-in agreements	8	—		—		19,000		—		41,619		60,619		361
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	18	$	1,266	$	—	$	—	$	—	$	—	$	1,266	$	156
Sells foreign currency, buys U.S. currency	20	1,273		—		—		—		—		1,273		148

Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $146.6 million and $166.5 million in the normal course of business as of June 30, 2021 and December 31, 2020, respectively.

The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.

	At June 30, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	12	$	—	$	12	$	—	$	—	$	12
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	—	$	—	$	89,726
Risk participation-out agreements	1,289		—		1,289		—		—		1,289
Foreign exchange contracts	62		—		62		—		—		62
Total	$	91,089	$	—	$	91,089	$	—	$	—	$	91,089
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	—	$	—	$	—	$	—	$	—	$	—
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	135,300	$	11,280	$	(56,854)
Risk participation-in agreements	232		—		232		—		—		232
Foreign exchange contracts	59		—		59		—		—		59
Total	$	90,017	$	—	$	90,017	$	135,300	$	11,280	$	(56,563)

	At December 31, 2020
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Interest rate derivatives	$	8	$	—	$	8	$	—	$	—	$	8
Loan level derivatives	131,328		—		131,328		—		—		131,328
Risk participation-out agreements	1,843		—		1,843		—		—		1,843
Foreign exchange contracts	156		—		156		—		—		156
Total	$	133,335	$	—	$	133,335	$	—	$	—	$	133,335
Liability derivatives
Loan level derivatives	$	131,328	$	—	$	131,328	$	155,220	$	11,280	$	(35,172)
Risk participation-in agreements	361		—		361		—		—		361
Foreign exchange contracts	148		—		148		—		—		148
Total	$	131,837	$	—	$	131,837	$	155,220	$	11,280	$	(34,663)

The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.

	Fair Value
	Six Months Ended   June 30, 2021		Six Months Ended   June 30, 2020
	(Dollars in Thousands)
Derivatives designated as hedges	$	12	$	(6)
Gain in OCI on derivatives (effective portion), net of tax	$	11	$	(5)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	5	$	—

The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.

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Stock Based Compensation

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Stock Based Compensation

Stock Based Compensation

As of June 30, 2021, the Company had one active equity plan: the 2021 Brookline Bancorp, Inc. Stock Option and Incentive Plan ("Plan") with 1,750,000 authorized shares. As a result of the Plan having been approved by the Company's stockholders at the 2021 annual meeting of stockholders, the Company discontinued granting awards under the 2014 Equity Incentive Plan (the "2014 Plan"), and no further shares will be granted as awards under the 2014 Plan. The Company's 2011 Restricted Stock Plan (the "2011 Plan") expired in July 2021, and the Company has not issued shares from the 2011 Plan since the adoption of the 2014 Plan. The Plan, the 2014 Plan and the 2011 Plan are together referred to as the "Plans."

Of the awarded shares under the 2014 Plan (and the 2011 Plan), generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. These are referred to as "time-based shares". The remaining 50% of each award has a cliff vesting schedule and will vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group comprised of 14 financial institutions. These are referred to as "performance-based shares". If a participant leaves the Company prior to the third anniversary date of an award, any unvested shares are usually forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the participant only when the shares vest.

Under the Plan, shares of the Company's common stock are reserved for issuance as restricted stock awards to officers, employees, and non-employee directors of the Company. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans.

During the three and six months ended June 30, 2021 and June 30, 2020, no shares were issued upon satisfaction of required conditions of the Plans.

Total expense for the Plan was $0.6 million and $0.7 million for the three months ended June 30, 2021 and 2020, respectively. Total expense for the Plan was $1.1 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively.

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Earnings per Share ("EPS")

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings per Share ("EPS")

Earnings per Share ("EPS")

The following table is a reconciliation of basic EPS and diluted EPS:

	Three Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	31,602	$	31,602	$	19,571	$	19,571
Denominator:
Weighted average shares outstanding	78,150,364		78,150,364		78,849,282		78,849,282
Effect of dilutive securities	—		320,087		—		165,992
Adjusted weighted average shares outstanding	78,150,364		78,470,451		78,849,282		79,015,274
EPS	$	0.40	$	0.40	$	0.25	$	0.25

	Six Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	58,056	$	58,056	$	2,295	$	2,295
Denominator:
Weighted average shares outstanding	78,147,076		78,147,076		79,165,372		79,165,372
Effect of dilutive securities	—		290,199		—		175,152
Adjusted weighted average shares outstanding	78,147,076		78,437,275		79,165,372		79,340,524
EPS	$	0.74	$	0.74	$	0.03	$	0.03

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and six months ended June 30, 2021 and June 30, 2020.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	246,334	$	—	$	246,334
GSE CMOs	—		35,944		—		35,944
GSE MBSs	—		246,054		—		246,054
Corporate debt obligations	—		23,108		—		23,108
U.S. Treasury bonds	—		142,214		—		142,214
Foreign government obligations	—		497		—		497
Total investment securities available-for-sale	$	—	$	694,151	$	—	$	694,151
Interest rate derivatives	—		12		—		12
Loan level derivatives	—		89,726		—		89,726
Risk participation-out agreements	—		1,289		—		1,289
Foreign exchange contracts	—		62		—		62
Liabilities:
Loan level derivatives	—		89,726		—		89,726
Risk participation-in agreements	—		232		—		232
Foreign exchange contracts	—		59		—		59

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	278,645	$	—	$	278,645
GSE CMOs	—		46,028		—		46,028
GSE MBSs	—		323,609		—		323,609
Corporate debt obligations	—		23,467		—		23,467
U.S. Treasury bonds	—		73,577		—		73,577
Foreign government obligations	—		496		—		496
Total investment securities available-for-sale	$	—	$	745,822	$	—	$	745,822
Equity securities held-for-trading	$	—	$	526	$	—	$	526
Interest rate derivatives	—		8		—		8
Loan level derivatives	—		131,328		—		131,328
Risk participation-out agreements	—		1,843		—		1,843
Foreign exchange contracts	—		156		—		156
Liabilities:
Loan level derivatives	—		131,328		—		131,328
Risk participation-in agreements	—		361		—		361
Foreign exchange contracts	—		148		—		148

Investment Securities Available-for-Sale

The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds, where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, and trust preferred securities, all of which are included in Level 2. As of June 30, 2021 and December 31, 2020, none of the investment securities was valued using pricing models included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security.

Equity Securities Held-for-Trading

The fair value of equity securities held-for-trading is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services. The Company's equity securities are priced this way and are included in Level 1 and Level 2. These prices are validated by comparing the primary pricing source with an alternative pricing source when available.

Derivatives and Hedging Instruments

The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and

foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities."

There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during the three and six months ended June 30, 2021 and December 31, 2020, respectively.

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	2,018	$	2,018
Repossessed assets	—		372		—		372
Total assets measured at fair value on a non-recurring basis	$	—	$	372	$	2,018	$	2,390

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	3,445	$	3,445
OREO	—		—		5,415		5,415
Repossessed assets	—		1,100		—		1,100
Total assets measured at fair value on a non-recurring basis	$	—	$	1,100	$	8,860	$	9,960

Collateral-Dependent Impaired Loans and Leases

For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses.

Other Real Estate Owned

The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses.

Repossessed Assets

Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2).

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.

	Fair Value				Valuation Technique
	At June 30, 2021		At December 31, 2020
	(Dollars in Thousands)
Collateral-dependent impaired loans and leases	$	2,018	$	3,445	Appraisal of collateral (1)
Other real estate owned	—		5,415		Appraisal of collateral (1)

________________________________________________________________________

(1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

Summary of Estimated Fair Values of Financial Instruments

The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.

					Fair Value Measurements at June 30, 2021
	Carrying Value		Estimated Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	$	6,913,801	$	6,894,100	$	—	$	—	$	6,894,100
Restricted equity securities	31,627		31,627		—		—		31,627
Financial liabilities:
Certificates of deposits	1,439,257		1,445,015		—		1,445,015		—
Borrowed funds	363,014		358,056		—		358,056		—

			Fair Value Measurements at December 31, 2020
	Carrying Value	Estimated Fair Value	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	7,155,174	7,116,854	—	—	7,116,854
Restricted equity securities	49,786	49,786	—	—	49,786
Financial liabilities:
Certificates of deposit	2,083,907	2,092,867	—	2,092,867	—
Borrowed funds	820,247	818,681	—	818,681	—

Loans and Leases

The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments.

Restricted Equity Securities

The fair values of certain restricted equity securities are estimated using observable inputs adjusted for other unobservable information, including but not limited to probability assumptions and similar discounts where applicable. These restricted equity securities are considered to be Level 3.

Deposits

The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles).

Borrowed Funds

The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLBB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Off-Balance Sheet Financial Instruments

The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.

The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Financial instruments with off-balance-sheet risk at the dates indicated follow:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to originate loans and leases:
Commercial real estate	$	118,828	$	174,240
Commercial	126,158		80,291
Residential mortgage	39,720		30,418
Unadvanced portion of loans and leases	883,648		759,053
Unused lines of credit:
Home equity	602,307		584,881
Other consumer	39,457		38,954
Other commercial	408		408
Unused letters of credit:
Financial standby letters of credit	15,437		14,746
Performance standby letters of credit	12,261		5,903
Commercial and similar letters of credit	5,369		5,105
Loan level derivatives (Notional principal amounts):
Receive fixed, pay variable	1,186,507		1,214,146
Pay fixed, receive variable	1,186,507		1,214,146
Risk participation-out agreements	262,985		252,655
Risk participation-in agreements	59,961		60,619
Foreign exchange contracts (Notional amounts):
Buys foreign currency, sells U.S. currency	1,360		1,266
Sells foreign currency, buys U.S. currency	1,362		1,273

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower.

Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into a loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions. The fair value of these derivatives are presented in Footnote 8.

Lease Commitments

The Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases.

The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company used the FHLB classic advance rates available as of June 30, 2021 as the discount rate to determine the net present value of the remaining lease payments.

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
The components of lease expense were as follow:
Operating lease cost	$	3,119	$	3,233
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	3,179	$	3,302

	At June 30, 2021			At December 31, 2020
	(In Thousands)
Supplemental balance sheet information related to leases was as follows:
Operating Leases
Operating lease right-of-use assets	$	22,682		$	24,143
Operating lease liabilities	22,682			24,143
Weighted Average Remaining Lease Term
Operating leases	6.66			6.95
Weighted Average Discount Rate
Operating leases	3.1		%	3.2		%

A summary of future minimum rental payments under such leases at the dates indicated follows:

	Minimum Rental Payments
	June 30, 2021
	(In Thousands)
Remainder of 2021	$	2,950
Year ending:
2022	5,763
2023	4,935
2024	3,581
2025	2,470
2026	1,697
Thereafter	3,656
Total	$	25,052
Less imputed interest	(2,370)
Present value of lease liability	$	22,682

Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. The total real estate taxes were $1.0 million and $0.9 million for the six months ended June 30, 2021 and 2020, respectively. Total other expenditures were $0.2 million for both the six months ended June 30, 2021, and 2020. Total rental expense was $3.0 million and $3.1 million for the six months ended June 30, 2021 and 2020, respectively. Total rental expense was $1.5 million and $1.6 million for the three months ended June 30, 2021 and 2020, respectively.

Legal Proceedings

In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Overview

Revenue from contracts with customers in the scope of ASC 606 ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations.

The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements.

In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported in gross noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue.

A substantial portion of the Company’s revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition.

Revenue Recognized at a Point in Time

The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction.

Revenue Recognized Over Time

The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies

Basis of Financial Statement Presentation

Basis of Financial Statement PresentationThe unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Consolidation

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

Use of Estimates

In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for credit losses, the determination of fair market values of assets and liabilities, including

acquired loans, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances.

The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.

Reclassification

Reclassification

Certain previously reported amounts have been reclassified to conform to the current year's presentation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2021 and 2020

In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaced the previous GAAP method of calculating credit losses. Previously, GAAP required the use of the incurred loss methodology, which used a higher threshold at which probable losses were calculated and recorded. ASU 2016-13 requires the use of an expected loss methodology, referred to as the current expected credit loss (“CECL”) methodology, which requires institutions to account for lifetime expected losses that previously would not have been part of the calculation. The CECL methodology incorporates future forecasting in addition to historical and current measures. The Company adopted all of the above mentioned ASU as of January 1, 2020. The standard had an impact on the Company's consolidated balance sheet. On adoption, the Company recognized an increase in the allowance for loan and lease losses of $6.6 million, and an increase in the reserve for unfunded commitments of $8.9 million. The net, after-tax impact of the increase in the allowance for loan and lease losses and reserve for unfunded commitments was a decrease to retained earnings of $11.5 million shown in the Consolidated Statements of Changes in Stockholders’ Equity. Additional details can be found in Notes 3, 4 and 5.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of securities available-for-sale securities

The following tables set forth investment securities available-for-sale, held-to-maturity and equity securities held-for-trading at the dates indicated:

	At June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	245,960	$	3,583	$	3,209	$	246,334
GSE CMOs	35,149		803		8		35,944
GSE MBSs	240,300		6,124		370		246,054
Corporate debt obligations	22,239		869		—		23,108
U.S. Treasury bonds	142,080		2,154		2,020		142,214
Foreign government obligations	500		—		3		497
Total investment securities available-for-sale	$	686,228	$	13,533	$	5,610	$	694,151

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	273,820	$	5,455	$	630	$	278,645
GSE CMOs	44,937		1,103		12		46,028
GSE MBSs	312,658		10,956		5		323,609
Corporate debt obligations	22,299		1,168		—		23,467
U.S. Treasury bonds	70,339		3,318		80		73,577
Foreign government obligations	500		—		4		496
Total investment securities available-for-sale	$	724,553	$	22,000	$	731	$	745,822
Equity securities held-for-trading							$	526

Schedule of investment securities in a continuous unrealized loss position

Investment securities as of June 30, 2021 and December 31, 2020 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:

	At June 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	91,341	$	3,018	$	7,874	$	191	$	99,215	$	3,209
GSE CMOs	—		—		924		8		924		8
GSE MBSs	49,570		367		374		3		49,944		370
U.S. Treasury bonds	63,658		2,020		—		—		63,658		2,020
Foreign government obligations	—		—		497		3		497		3
Temporarily impaired investment securities available-for-sale	204,569		5,405		9,669		205		214,238		5,610
Total temporarily impaired investment securities	$	204,569	$	5,405	$	9,669	$	205	$	214,238	$	5,610

	At December 31, 2020
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	72,745	$	630	$	—	$	—	$	72,745	$	630
GSE CMOs	832		7		872		5		1,704		12
GSE MBSs	2,102		5		97		—		2,199		5
U.S. Treasury bonds	9,750		80		—		—		9,750		80
Foreign government obligations	—		—		496		4		496		4
Temporarily impaired investment securities available-for-sale	85,429		722		1,465		9		86,894		731
Total temporarily impaired investment securities	$	85,429	$	722	$	1,465	$	9	$	86,894	$	731

Schedule of maturities of the investments in debt securities

The final stated maturities of the debt securities are as follows for the periods indicated:

	At June 30, 2021						At December 31, 2020
	Amortized Cost		Estimated Fair Value		Weighted Average Rate		Amortized Cost		Estimated Fair Value		Weighted Average Rate
	(Dollars in Thousands)
Investment securities available-for-sale:
Within 1 year	$	60,865	$	61,478	1.98	%	$	31,633	$	32,013	2.02	%
After 1 year through 5 years	251,542		256,988		1.95	%	146,274		153,262		2.22	%
After 5 years through 10 years	115,322		120,226		2.26	%	222,271		225,568		1.43	%
Over 10 years	258,499		255,459		1.31	%	324,375		334,979		1.86	%
	$	686,228	$	694,151	1.77	%	$	724,553	$	745,822	1.81	%

Summary of gains and losses from sale of securities

Sales of investment and restricted equity securities are summarized as follows:

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	$	520	$	132,014
Gross gains from securities sales	1		3,152
Gross losses from securities sales	—		(167)
Gain on sales of securities, net	$	1	$	2,985

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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Summary of loan and lease balances for the originated and acquired portfolios

The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:

	At June 30, 2021				At December 31, 2020
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars In Thousands)
Commercial real estate loans:
Commercial real estate	$	2,646,104	3.45	%	$	2,578,773	3.58	%
Multi-family mortgage	967,891		3.44	%	1,013,432		3.53	%
Construction	201,586		3.65	%	231,621		3.49	%
Total commercial real estate loans	3,815,581		3.46	%	3,823,826		3.56	%
Commercial loans and leases:
Commercial (1)	918,345		2.86	%	1,131,668		2.55	%
Equipment financing	1,074,088		7.07	%	1,092,461		7.26	%
Condominium association	46,418		4.46	%	50,770		4.55	%
Total commercial loans and leases	2,038,851		5.11	%	2,274,899		4.86	%
Consumer loans:
Residential mortgage	799,027		3.61	%	791,317		3.74	%
Home equity	331,038		3.26	%	346,652		3.26	%
Other consumer	35,778		2.93	%	32,859		3.04	%
Total consumer loans	1,165,843		3.49	%	1,170,828		3.58	%
Total loans and leases	$	7,020,275	3.93	%	$	7,269,553	3.97	%

______________________________________________________________________

(1) Including $348,411 and $489,216 of PPP loans as of June 30, 2021 and December 31, 2020, respectively. These loans are fully guaranteed by the SBA and therefore, have not been reserved for in the allowance for credit losses as of June 30, 2021 and December 31, 2020.

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Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of changes in the allowance for loan and lease losses

The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:

	Three Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2021	$	79,929	$	25,825	$	4,083	$	109,837
Charge-offs	(28)		(1,184)		(9)		(1,221)
Recoveries	11		489		126		626
(Credit) provision for loan and lease losses excluding unfunded commitments	(5,903)		3,234		(99)		(2,768)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Three Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at March 31, 2020	$	82,179	$	26,774	$	4,228	$	113,181
Charge-offs	—		(1,794)		(9)		(1,803)
Recoveries	94		296		30		420
(Credit) provision for loan and lease losses excluding unfunded commitments	7,738		(338)		355		7,755
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

	Six Months Ended June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2020	$	80,132	$	29,498	$	4,749	$	114,379
Charge-offs	(28)		(3,323)		(13)		(3,364)
Recoveries	11		819		179		1,009
(Credit) provision for loan and lease losses excluding unfunded commitments	(6,106)		1,370		(814)		(5,550)
Balance at June 30, 2021	$	74,009	$	28,364	$	4,101	$	106,474

	Six Months Ended June 30, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2019	$	30,285	$	24,826	$	5,971	$	61,082
Adoption of ASU 2016-13 (CECL)	11,694		(2,672)		(2,390)		$	6,632
Charge-offs	—		(4,321)		(21)		(4,342)
Recoveries	94		543		88		725
Provision for loan and lease losses	47,938		6,562		956		55,456
Balance at June 30, 2020	$	90,011	$	24,938	$	4,604	$	119,553

Schedule of provisions for credit losses

The provisions for credit losses are set forth below for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Provision for loan and lease losses:
Commercial real estate	$	(5,903)	$	7,738	$	(6,106)	$	47,938
Commercial	3,234		(338)		1,370		6,562
Consumer	(99)		355		(814)		956
Total (credit) provision for loan and lease losses	(2,768)		7,755		(5,550)		55,456
Unfunded commitments	(563)		(2,408)		72		4,005
Total (credit) provision for credit losses	$	(3,331)	$	5,347	$	(5,478)	$	59,461

Summary of the recorded investments by credit quality indicator, by loan class

The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of June 30, 2021.

	June 30, 2021
	2021	2020	2019	2018	2017	Prior	Revolving Loans	Revolving Loans Converted to Term Loans	Total
		(In Thousands)
Commercial Real Estate

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Pass	$	250,161	$	353,110	$	367,648	$	247,536	$	217,389	$	1,054,660	$	50,918	$	14,237	$	2,555,659
OAEM	687		834		27,398		—		4,902		42,220		—		—		76,041
Substandard	—		195		—		—		1,604		8,611		—		3,994		14,404
Total	250,848		354,139		395,046		247,536		223,895		1,105,491		50,918		18,231		2,646,104
Multi-Family Mortgage
Pass	60,027		124,950		144,801		115,350		93,077		394,645		4,784		27,518		965,152
OAEM	—		—		—		—		—		2,739		—		—		2,739
Total	60,027		124,950		144,801		115,350		93,077		397,384		4,784		27,518		967,891
Construction
Pass	4,663		52,601		46,573		87,246		658		6,023		—		—		197,764
Substandard	—		—		3,822		—		—		—		—		—		3,822
Total	4,663		52,601		50,395		87,246		658		6,023		—		—		201,586
Commercial
Pass	312,085		152,581		47,241		38,867		20,149		125,055		192,823		1,359		890,160
OAEM	—		1,592		3,933		—		12,840		7		1,521		—		19,893
Substandard	—		31		—		107		299		2,511		4,485		857		8,290
Doubtful	—		—		—		—		—		1		—		1		2
Total	312,085		154,204		51,174		38,974		33,288		127,574		198,829		2,217		918,345
Equipment Financing
Pass	149,995		304,555		265,845		168,156		89,716		74,929		2,139		618		1,055,953
OAEM	—		196		1,185		480		172		691		—		—		2,724
Substandard	—		1,094		2,939		5,013		3,529		1,873		—		—		14,448
Doubtful	—		1		381		1		6		574		—		—		963
Total	149,995		305,846		270,350		173,650		93,423		78,067		2,139		618		1,074,088
Condominium Association
Pass	717		9,132		8,390		4,531		6,301		15,624		1,586		40		46,321
Substandard	—		—		—		—		—		97		—		—		97
Total	717		9,132		8,390		4,531		6,301		15,721		1,586		40		46,418

	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Other Consumer
Pass	613		215		504		1,818		30		765		31,817		14		35,776
Substandard	—		—		—		—		—		1		—		1		2
Total	613		215		504		1,818		30		766		31,817		15		35,778
Total
Pass	778,261		997,144		881,002		663,504		427,320		1,671,701		284,067		43,786		5,746,785
OAEM	687		2,622		32,516		480		17,914		45,657		1,521		—		101,397
Substandard	—		1,320		6,761		5,120		5,432		13,093		4,485		4,852		41,063
Doubtful	—		1		381		1		7		575		—		1		966
Total	$	778,948	$	1,001,087	$	920,660	$	669,105	$	450,673	$	1,731,026	$	290,073	$	48,639	$	5,890,211

As of June 30, 2021, there were no loans categorized as definite loss.

For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model.

	At June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Residential
Credit Scores
Over 700	$	95,094	$	111,814	$	75,571	$	49,291	$	44,618	$	152,417	$	3,071	$	—	$	531,876
661 - 700	10,810		21,194		15,573		9,047		13,001		27,049		—		—		96,674
600 and below	2,174		6,034		4,321		3,602		4,205		15,194		—		—		35,530
Data not available*	12,590		11,956		16,217		15,553		13,139		65,134		—		358		134,947
Total	$	120,668	$	150,998	$	111,682	$	77,493	$	74,963	$	259,794	$	3,071	$	358	$	799,027
Home Equity
Credit Scores
Over 700	$	955	$	1,486	$	2,064	$	1,962	$	1,885	$	9,867	$	238,867	$	2,306	$	259,392
661 - 700	75		113		320		464		253		2,112		43,102		396		46,835
600 and below	—		56		104		255		13		514		9,817		923		11,682
Data not available*	—		100		—		—		—		1,295		10,845		889		13,129
Total	$	1,030	$	1,755	$	2,488	$	2,681	$	2,151	$	13,788	$	302,631	$	4,514	$	331,038

_______________________________________________________________________________

* Represents loans and leases for which data are not available.

The following tables present the recorded investment in loans in each class as of December 31, 2020, by credit quality indicator.

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Commercial Real Estate
Pass	$	352,832	$	412,071	$	282,629	$	255,786	$	243,477	$	944,676	$	55,392	$	12,585	$	2,559,448
OAEM	—		477		—		—		3,312		8,991		—		—		12,780
Substandard	—		—		—		1,261		2		5,220		—		62		6,545
Total	352,832		412,548		282,629		257,047		246,791		958,887		55,392		12,647		2,578,773
Multi-Family Mortgage
Pass	125,434		136,620		162,180		103,997		127,873		304,224		15,845		34,871		1,011,044
OAEM	—		—		—		—		—		2,388		—		—		2,388
Total	125,434		136,620		162,180		103,997		127,873		306,612		15,845		34,871		1,013,432
Construction
Pass	46,249		56,074		112,856		1,799		2,788		404		3,834		—		224,004
Substandard	—		4,853		—		—		2,764		—		—		—		7,617
Total	46,249		60,927		112,856		1,799		5,552		404		3,834		—		231,621
Commercial
Pass	574,542		66,278		41,325		62,112		22,085		113,715		226,495		1,687		1,108,239
OAEM	310		4,850		—		—		35		17		5,382		—		10,594
Substandard	80		—		129		389		29		7,612		3,930		664		12,833
Doubtful	—		—		—		—		—		—		—		2		2
Total	574,932		71,128		41,454		62,501		22,149		121,344		235,807		2,353		1,131,668
Equipment Financing
Pass	332,375		306,231		209,219		121,845		56,241		45,451		636		576		1,072,574
OAEM	196		1,066		290		93		609		85		—		—		2,339
Substandard	402		4,385		5,280		3,545		1,891		631		—		—		16,134
Doubtful	1		64		24		27		1,292		6		—		—		1,414
Total	332,974		311,746		214,813		125,510		60,033		46,173		636		576		1,092,461
Condominium Association
Pass	6,455		9,918		5,399		7,928		5,213		12,682		2,684		379		50,658
Substandard	—		—		—		—		112		—		—		—		112
Total	6,455		9,918		5,399		7,928		5,325		12,682		2,684		379		50,770
Other Consumer
Pass	694		549		1,938		32		570		301		28,755		18		32,857
Substandard	—		—		—		—		—		—		—		2		2
Total	694		549		1,938		32		570		301		28,755		20		32,859
Total

	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Pass	1,438,581		987,741		815,546		553,499		458,247		1,421,453		333,641		50,116		6,058,824
OAEM	506		6,393		290		93		3,956		11,481		5,382		—		28,101
Substandard	482		9,238		5,409		5,195		4,798		13,463		3,930		728		43,243
Doubtful	1		64		24		27		1,292		6		—		2		1,416
Total	$	1,439,570	$	1,003,436	$	821,269	$	558,814	$	468,293	$	1,446,403	$	342,953	$	50,846	$	6,131,584
As of December 31, 2020, there were no loans categorized as definite loss.

	At December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving		Converted		Total
	(In Thousands)
Residential
Credit Scores
Over 700	$	119,566	$	94,300	$	62,452	$	53,662	$	47,327	$	124,999	$	4,442	$	—	$	506,748
661 - 700	21,820		19,426		10,943		15,616		8,132		23,282		—		—		99,219
600 and below	6,901		5,659		4,763		4,318		4,553		13,997		—		—		40,191
Data not available*	19,209		17,082		16,199		14,153		5,729		71,456		—		1,331		145,159
Total	$	167,496	$	136,467	$	94,357	$	87,749	$	65,741	$	233,734	$	4,442	$	1,331	$	791,317
Home Equity
Credit Scores
Over 700	$	1,546	$	2,832	$	2,440	$	2,770	$	910	$	12,804	$	247,538	$	2,397	$	273,237
661 - 700	122		459		499		566		305		2,793		45,356		1,334		51,434
600 and below	59		108		266		13		39		541		10,139		878		12,043
Data not available*	61		—		—		—		—		1,387		7,330		1,160		9,938
Total	$	1,788	$	3,399	$	3,205	$	3,349	$	1,254	$	17,525	$	310,363	$	5,769	$	346,652

Schedule of information regarding the aging of past due loans, by loan class

The following table presents an age analysis of the amortized cost basis in loans and leases as of June 30, 2021.

	At June 30, 2021
	Past Due												Past Due Greater Than 90 Days and Accruing
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual		Non-accrual with No Related Allowance
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	1,157	$	1,517	$	11,225	$	13,899	$	2,632,205	$	2,646,104	$	—	$	11,657	$	11,452
Multi-family mortgage	3,035		—		—		3,035		964,856		967,891		—		—		—
Construction	—		—		—		—		201,586		201,586		—		—		—
Total commercial real estate loans	4,192		1,517		11,225		16,934		3,798,647		3,815,581		—		11,657		11,452
Commercial loans and leases:
Commercial	153		761		1,182		2,096		916,249		918,345		—		3,207		1,723
Equipment financing	3,914		2,451		10,866		17,231		1,056,857		1,074,088		2,850		14,872		5,330
Condominium association	453		85		—		538		45,880		46,418		—		97		—
Total commercial loans and leases	4,520		3,297		12,048		19,865		2,018,986		2,038,851		2,850		18,176		7,053
Consumer loans:
Residential mortgage	1,075		1,119		3,104		5,298		793,729		799,027		301		3,638		3,185
Home equity	363		—		530		893		330,145		331,038		3		744		512
Other consumer	2		5		1		8		35,770		35,778		—		1		—
Total consumer loans	1,440		1,124		3,635		6,199		1,159,644		1,165,843		304		4,383		3,697
Total loans and leases	$	10,152	$	5,938	$	26,908	$	42,998	$	6,977,277	$	7,020,275	$	3,154	$	34,216	$	22,202

There is no interest income recognized on non-accrual loans for the three months ended June 30, 2021.

The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2020.

	At December 31, 2020
	Past Due												Loans and Leases Past Due Greater Than 90 Days and Accruing				Non-accrual with No Related Allowance
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current		Total Loans and Leases				Non-accrual
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	18,294	$	12,402	$	7,272	$	37,968	$	2,540,805	$	2,578,773	$	4,722	$	3,300	$	2,580
Multi-family mortgage	813		—		—		813		1,012,619		1,013,432		—		—		—
Construction	—		—		7,617		7,617		224,004		231,621		3,764		3,853		3,853
Total commercial real estate loans	19,107		12,402		14,889		46,398		3,777,428		3,823,826		8,486		7,153		6,433
Commercial loans and leases:
Commercial	451		304		9,171		9,926		1,121,742		1,131,668		3,486		7,702		6,263
Equipment financing	5,970		2,263		9,391		17,624		1,074,837		1,092,461		—		16,757		4,062
Condominium association	282		297		—		579		50,191		50,770		—		112		112
Total commercial loans and leases	6,703		2,864		18,562		28,129		2,246,770		2,274,899		3,486		24,571		10,437
Consumer loans:
Residential mortgage	2,161		648		3,841		6,650		784,667		791,317		—		5,587		5,117
Home equity	580		215		588		1,383		345,269		346,652		3		1,136		824
Other consumer	13		—		1		14		32,845		32,859		—		1		—
Total consumer loans	2,754		863		4,430		8,047		1,162,781		1,170,828		3		6,724		5,941
Total loans and leases	$	28,564	$	16,129	$	37,881	$	82,574	$	7,186,979	$	7,269,553	$	11,975	$	38,448	$	22,811

Schedule of the impaired and non-impaired loans and leases, by loan and leases class

The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. Periods prior to January 1, 2020 are presented in accordance with accounting rules effective at that time.

	At June 30, 2021
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	93	$	922	$	91	$	1,106
Collectively evaluated	73,916		27,442		4,010		105,368
Total	$	74,009	$	28,364	$	4,101	$	106,474
Loans and Leases:
Individually evaluated	$	18,893	$	20,639	$	7,552	$	47,084
Collectively evaluated	3,796,688		2,018,212		1,158,291		6,973,191
Total	$	3,815,581	$	2,038,851	$	1,165,843	$	7,020,275

	At December 31, 2020
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:
Individually evaluated	$	183	$	2,020	$	108	$	2,311
Collectively evaluated	79,949		27,478		4,641		112,068
Total loans and leases	$	80,132	$	29,498	$	4,749	$	114,379
Loans and Leases:
Individually evaluated	$	14,159	$	24,727	$	8,760	$	47,646
Collectively evaluated	3,809,667		2,250,172		1,162,068		7,221,907
Total loans and leases	$	3,823,826	$	2,274,899	$	1,170,828	$	7,269,553

Schedule of information regarding troubled debt restructuring loans

The following table sets forth information regarding TDR loans and leases at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Troubled debt restructurings:
On accrual	$	14,387	$	11,483
On nonaccrual	6,410		7,476
Total troubled debt restructurings	$	20,797	$	18,959

Summary of loans restructured or defaulted

The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows.

	At and for the Three Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Credit Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Amortized Cost
	(Dollars in Thousands)
Equipment financing	28	1,236		1,222		9		483		5	211
Residential mortgage	1	864		864		—		—		—	—
Home equity	1	312		312		—		—		—	—
Total loans and leases	30	$	2,412	$	2,398	$	9	$	483	5	$	211

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

	At and for the Three Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Commercial real estate	—	$	—	$	—	$	—	$	—	1	$	221
Equipment financing	11	1,174		1,160		—		1,160		—	—
Total loans and leases	11	$	1,174	$	1,160	$	—	$	1,160	1	$	221

______________________________________________________________________

(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

	At and for the Six Months Ended June 30, 2021
		Amortized Cost				Specific Allowance for Loan and Lease Losses				Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Number of Loans/ Leases		Amortized Cost
	(Dollars in Thousands)
Originated:
Commercial real estate	1	$	497	$	497	$	—	$	—	$	—	$	—
Equipment financing	40	2,954		2,922		9		713		5		211
Residential mortgage	1	864		864		—		—		—		—
Home equity	1	312		312		—		—		—		—
Total loans and leases	43	$	4,627	$	4,595	$	9	$	713	5		$	211

	At and for the Six Months Ended June 30, 2020
		Recorded Investment				Specific Allowance for Loan and Lease Losses						Defaulted (1)
	Number of Loans/ Leases	At Modification		At End of Period				Nonaccrual Loans and Leases		Additional Commitment		Number of Loans/ Leases	Recorded Investment
	(Dollars in Thousands)
Originated:
Commercial real estate	—	$	—	$	—	$	—	$	—	—		1	$	221
Commercial	2	297		302		—		—		—		—	—
Equipment financing	11	1,174		1,160		—		1,160		—		—	—
Home equity	1	200		200		—		—		—		—	—
Total loans and leases	14	$	1,671	$	1,662	$	—	$	1,160	$	—	1	$	221

Schedule of troubled debt restructurings by type of modification

The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In Thousands)
Extended maturity	$	1,143	$	334	$	2,667	$	636
Adjusted principal	—		44		—		44
Combination maturity, principal, interest rate	1,255		782		1,928		982
Total loans with modifications	$	2,398	$	1,160	$	4,595	$	1,662

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and other intangible assets

The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Goodwill	$	160,427	$	160,427
Other intangible assets:
Core deposits	1,603		2,063
Trade name	1,089		1,089
Total other intangible assets	2,692		3,152
Total goodwill and other intangible assets	$	163,119	$	163,579

Schedule of estimated aggregate future amortization expense for intangible assets

The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:

Remainder of 2021	$	416
Year ending:
2022	494
2023	263
2024	151
2025	103
2026	74
Thereafter	102
Total	$	1,603

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:

	Three Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2021	$	2,174	$	7	$	(99)	$	2,082
Other comprehensive income (loss)	4,003		8		—		4,011
Reclassification adjustment for (income) expense recognized in earnings	—		(4)		—		(4)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Three Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at March 31, 2020	$	16,863	$	—	$	84	$	16,947
Other comprehensive income (loss)	3,085		—		—		3,085
Reclassification adjustment for (income) expense recognized in earnings	494		—		—		494
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

	Six Months Ended June 30, 2021
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2020	$	16,582	$	7	$	(99)	$	16,490
Other comprehensive income (loss)	(10,405)		9		—		(10,396)
Reclassification adjustment for (income) expense recognized in earnings	—		(5)		—		(5)
Balance at June 30, 2021	$	6,177	$	11	$	(99)	$	6,089

	Six Months Ended June 30, 2020
	Investment Securities  Available-for-Sale		Net Change in Fair Value of Cash Flow Hedges		Postretirement Benefits		Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance at December 31, 2019	$	2,199	$	—	$	84	$	2,283
Other comprehensive income (loss)	19,582		—		—		19,582
Reclassification adjustment for (income) expense recognized in earnings	2,327		—		—		2,327
Balance at June 30, 2020	$	19,454	$	—	$	84	$	19,538

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value and classification of derivative financial instruments on the consolidated balance sheets and the effect of the derivative financial instruments on the consolidated income statements

The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	June 30, 2021
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	128	$	8,395	$	2,387	$	4,658	$160,737		$	1,010,330	$	1,186,507	$	83,306
Pay fixed, receive variable	128	8,395		2,387		4,658		160,737		1,010,330		1,186,507		83,306
Risk participation-out agreements	37	—		—		6,939		29,276		226,770		262,985		1,289
Risk participation-in agreements	8	—		—		18,859		—		41,102		59,961		232
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	11	$	1,360	$	—	$	—	$	—	$	—	$	1,360	$	62
Sells foreign currency, buys U.S. currency	16	1,362		—		—		—		—		1,362		59

	Notional Amount Maturing
	Number of Positions	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable	136	$	—	$	8,541	$	16,447	$	99,014	$	1,090,144	$	1,214,146	$	129,284
Pay fixed, receive variable	136	—		8,541		16,447		99,014		1,090,144		1,214,146		129,284
Risk participation-out agreements	37	—		—		7,009		22,733		222,913		252,655		1,843
Risk participation-in agreements	8	—		—		19,000		—		41,619		60,619		361
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	18	$	1,266	$	—	$	—	$	—	$	—	$	1,266	$	156
Sells foreign currency, buys U.S. currency	20	1,273		—		—		—		—		1,273		148

Schedule of offsetting derivatives and amounts subject to master netting agreements not offset in the audited consolidated balance sheet

The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.

	At June 30, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	12	$	—	$	12	$	—	$	—	$	12
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	—	$	—	$	89,726
Risk participation-out agreements	1,289		—		1,289		—		—		1,289
Foreign exchange contracts	62		—		62		—		—		62
Total	$	91,089	$	—	$	91,089	$	—	$	—	$	91,089
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives	$	—	$	—	$	—	$	—	$	—	$	—
Derivatives not designated as hedging instruments:
Loan level derivatives	$	89,726	$	—	$	89,726	$	135,300	$	11,280	$	(56,854)
Risk participation-in agreements	232		—		232		—		—		232
Foreign exchange contracts	59		—		59		—		—		59
Total	$	90,017	$	—	$	90,017	$	135,300	$	11,280	$	(56,563)

	At December 31, 2020
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts  Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
							Financial Instruments Pledged		Cash Collateral Pledged
	(In Thousands)
Asset derivatives
Interest rate derivatives	$	8	$	—	$	8	$	—	$	—	$	8
Loan level derivatives	131,328		—		131,328		—		—		131,328
Risk participation-out agreements	1,843		—		1,843		—		—		1,843
Foreign exchange contracts	156		—		156		—		—		156
Total	$	133,335	$	—	$	133,335	$	—	$	—	$	133,335
Liability derivatives
Loan level derivatives	$	131,328	$	—	$	131,328	$	155,220	$	11,280	$	(35,172)
Risk participation-in agreements	361		—		361		—		—		361
Foreign exchange contracts	148		—		148		—		—		148
Total	$	131,837	$	—	$	131,837	$	155,220	$	11,280	$	(34,663)

Schedule of derivatives designated as hedges and impact on OCI

These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.

	Fair Value
	Six Months Ended   June 30, 2021		Six Months Ended   June 30, 2020
	(Dollars in Thousands)
Derivatives designated as hedges	$	12	$	(6)
Gain in OCI on derivatives (effective portion), net of tax	$	11	$	(5)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	5	$	—

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Earnings per Share ("EPS") (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of reconciliation of basic EPS and diluted EPS

The following table is a reconciliation of basic EPS and diluted EPS:

	Three Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	31,602	$	31,602	$	19,571	$	19,571
Denominator:
Weighted average shares outstanding	78,150,364		78,150,364		78,849,282		78,849,282
Effect of dilutive securities	—		320,087		—		165,992
Adjusted weighted average shares outstanding	78,150,364		78,470,451		78,849,282		79,015,274
EPS	$	0.40	$	0.40	$	0.25	$	0.25

	Six Months Ended
	June 30, 2021				June 30, 2020
	Basic		Fully Diluted		Basic		Fully Diluted
	(Dollars in Thousands, Except Per Share Amounts)
Numerator:
Net income	$	58,056	$	58,056	$	2,295	$	2,295
Denominator:
Weighted average shares outstanding	78,147,076		78,147,076		79,165,372		79,165,372
Effect of dilutive securities	—		290,199		—		175,152
Adjusted weighted average shares outstanding	78,147,076		78,437,275		79,165,372		79,340,524
EPS	$	0.74	$	0.74	$	0.03	$	0.03

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring and non-recurring basis

The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	246,334	$	—	$	246,334
GSE CMOs	—		35,944		—		35,944
GSE MBSs	—		246,054		—		246,054
Corporate debt obligations	—		23,108		—		23,108
U.S. Treasury bonds	—		142,214		—		142,214
Foreign government obligations	—		497		—		497
Total investment securities available-for-sale	$	—	$	694,151	$	—	$	694,151
Interest rate derivatives	—		12		—		12
Loan level derivatives	—		89,726		—		89,726
Risk participation-out agreements	—		1,289		—		1,289
Foreign exchange contracts	—		62		—		62
Liabilities:
Loan level derivatives	—		89,726		—		89,726
Risk participation-in agreements	—		232		—		232
Foreign exchange contracts	—		59		—		59

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
GSE debentures	$	—	$	278,645	$	—	$	278,645
GSE CMOs	—		46,028		—		46,028
GSE MBSs	—		323,609		—		323,609
Corporate debt obligations	—		23,467		—		23,467
U.S. Treasury bonds	—		73,577		—		73,577
Foreign government obligations	—		496		—		496
Total investment securities available-for-sale	$	—	$	745,822	$	—	$	745,822
Equity securities held-for-trading	$	—	$	526	$	—	$	526
Interest rate derivatives	—		8		—		8
Loan level derivatives	—		131,328		—		131,328
Risk participation-out agreements	—		1,843		—		1,843
Foreign exchange contracts	—		156		—		156
Liabilities:
Loan level derivatives	—		131,328		—		131,328
Risk participation-in agreements	—		361		—		361
Foreign exchange contracts	—		148		—		148

Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:

	Carrying Value as of June 30, 2021
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	2,018	$	2,018
Repossessed assets	—		372		—		372
Total assets measured at fair value on a non-recurring basis	$	—	$	372	$	2,018	$	2,390

	Carrying Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	3,445	$	3,445
OREO	—		—		5,415		5,415
Repossessed assets	—		1,100		—		1,100
Total assets measured at fair value on a non-recurring basis	$	—	$	1,100	$	8,860	$	9,960

Schedule of quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.

	Fair Value				Valuation Technique
	At June 30, 2021		At December 31, 2020
	(Dollars in Thousands)
Collateral-dependent impaired loans and leases	$	2,018	$	3,445	Appraisal of collateral (1)
Other real estate owned	—		5,415		Appraisal of collateral (1)

________________________________________________________________________

(1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

Summary of the carrying values and estimated fair values

The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.

					Fair Value Measurements at June 30, 2021
	Carrying Value		Estimated Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	$	6,913,801	$	6,894,100	$	—	$	—	$	6,894,100
Restricted equity securities	31,627		31,627		—		—		31,627
Financial liabilities:
Certificates of deposits	1,439,257		1,445,015		—		1,445,015		—
Borrowed funds	363,014		358,056		—		358,056		—

			Fair Value Measurements at December 31, 2020
	Carrying Value	Estimated Fair Value	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
	(In Thousands)
Financial assets:
Loans and leases, net	7,155,174	7,116,854	—	—	7,116,854
Restricted equity securities	49,786	49,786	—	—	49,786
Financial liabilities:
Certificates of deposit	2,083,907	2,092,867	—	2,092,867	—
Borrowed funds	820,247	818,681	—	818,681	—

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of financial instruments with off-balance sheet risk

Financial instruments with off-balance-sheet risk at the dates indicated follow:

	At June 30, 2021		At December 31, 2020
	(In Thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to originate loans and leases:
Commercial real estate	$	118,828	$	174,240
Commercial	126,158		80,291
Residential mortgage	39,720		30,418
Unadvanced portion of loans and leases	883,648		759,053
Unused lines of credit:
Home equity	602,307		584,881
Other consumer	39,457		38,954
Other commercial	408		408
Unused letters of credit:
Financial standby letters of credit	15,437		14,746
Performance standby letters of credit	12,261		5,903
Commercial and similar letters of credit	5,369		5,105
Loan level derivatives (Notional principal amounts):
Receive fixed, pay variable	1,186,507		1,214,146
Pay fixed, receive variable	1,186,507		1,214,146
Risk participation-out agreements	262,985		252,655
Risk participation-in agreements	59,961		60,619
Foreign exchange contracts (Notional amounts):
Buys foreign currency, sells U.S. currency	1,360		1,266
Sells foreign currency, buys U.S. currency	1,362		1,273

Schedule of lease cost, supplemental cash flow and supplemental balance sheet information

	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)
The components of lease expense were as follow:
Operating lease cost	$	3,119	$	3,233
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	3,179	$	3,302

	At June 30, 2021			At December 31, 2020
	(In Thousands)
Supplemental balance sheet information related to leases was as follows:
Operating Leases
Operating lease right-of-use assets	$	22,682		$	24,143
Operating lease liabilities	22,682			24,143
Weighted Average Remaining Lease Term
Operating leases	6.66			6.95
Weighted Average Discount Rate
Operating leases	3.1		%	3.2		%

Schedule of maturities of operating leases

A summary of future minimum rental payments under such leases at the dates indicated follows:

	Minimum Rental Payments
	June 30, 2021
	(In Thousands)
Remainder of 2021	$	2,950
Year ending:
2022	5,763
2023	4,935
2024	3,581
2025	2,470
2026	1,697
Thereafter	3,656
Total	$	25,052
Less imputed interest	(2,370)
Present value of lease liability	$	22,682

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Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2021 bank office
Basis of Presentation
Number of full-service banking offices	30
Number of lending offices | office	2
BankRI
Basis of Presentation
Number of full-service banking offices	20

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Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jan. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for unfunded commitments	$ 13,142	$ 13,071
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan and lease losses			$ 6,600
Reserve for unfunded commitments			8,900
Retained earnings			$ 11,500

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Investment Securities - Narrative (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2021 USD ($) security	Jun. 30, 2020 USD ($) security	Dec. 31, 2020 USD ($) security
Investment Securities
Investment securities available-for-sale, allowance	$ 0
Investment securities available-for-sale	694,151,000		$ 745,822,000
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	7,900,000		21,300,000
Debt securities, available-for-sale, unrealized loss position	$ 214,238,000		$ 86,894,000
Percentage of securities in unrealized loss positions, available-for-sale securities	30.90%		11.70%
Debt securities, available-for-sale, unrealized loss position, accumulated loss	$ 5,610,000		$ 731,000
Equity securities held-for-trading	0	$ 0	526,000
Accrued interest receivable	$ 2,600,000		2,600,000
Number of days past due to be placed in nonaccrual status	90 days
Purchases of securities available-for-sale	$ 71,837,000	438,658,000
Estimated fair value of debt securities have right to call or prepay the obligations	67,800,000		90,800,000
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities of after one year through five years	12,700,000		12,900,000
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities after six years through ten years	45,200,000		68,100,000
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities of which is after 10 years	9,900,000		9,800,000
Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	520,000	132,014,000
US Government Sponsored Enterprises Debt Securities Excluding Specified Securities
Investment Securities
Investment securities available-for-sale	5,600,000		7,300,000
GSE debentures
Investment Securities
Investment securities available-for-sale	246,334,000		278,645,000
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	$ 400,000		$ 4,800,000
AFS number of positions | security	54		54
Number of securities in unrealized loss positions | security	10		7
Purchases of securities available-for-sale		$ 169,000,000.0
Number of securities transferred | security		9
Amount of transfer		$ 25,500,000
GSE CMOs
Investment Securities
Investment securities available-for-sale	$ 35,900,000		$ 46,000,000.0
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	$ 800,000		$ 1,100,000
AFS number of positions | security	33		33
Number of securities in unrealized loss positions | security	2
Purchases of securities available-for-sale	$ 0	0
GSE MBSs
Investment Securities
Investment securities available-for-sale	246,100,000		$ 323,600,000
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	$ 5,800,000		$ 11,000,000.0
AFS number of positions | security	139		140
Number of securities in unrealized loss positions | security	20		17
Purchases of securities available-for-sale		$ 248,400,000
Number of securities transferred | security		8
Amount of transfer		$ 9,000,000.0
Corporate debt obligations
Investment Securities
Investment securities available-for-sale	$ 23,108,000		$ 23,467,000
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	$ 900,000		$ 1,200,000
AFS number of positions | security	6		6
Number of securities in unrealized loss positions | security	0		0
Purchases of securities available-for-sale	$ 0	$ 0
Number of securities transferred | security		1
Amount of transfer		$ 500,000
U.S. Treasury bonds
Investment Securities
Investment securities available-for-sale	142,200,000		$ 73,600,000
Debt securities, available-for-sale, accumulated gross unrealized gain (loss)	$ 100,000		$ 3,200,000
AFS number of positions | security	19		12
Number of securities in unrealized loss positions | security	7		1
Purchases of securities available-for-sale	$ 71,800,000	21,200,000
Municipal obligations
Investment Securities
Purchases of securities available-for-sale	$ 0	$ 0
Number of securities transferred | security	0	93	0
Amount of transfer		$ 47,700,000
Foreign government obligations
Investment Securities
Investment securities available-for-sale	$ 497,000		$ 496,000
AFS number of positions | security	1		1
Purchases of securities available-for-sale	$ 0	$ 0
Collateral Pledged
Investment Securities
Investment securities pledged as collateral	402,100,000		$ 448,700,000
Outstanding borrowings	$ 0		$ 0

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Investment Securities - Summary of Available-for-sale and Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 686,228	$ 724,553
Gross Unrealized Gains	13,533	22,000
Gross Unrealized Losses	5,610	731
Estimated Fair Value	694,151	745,822
Equity securities held-for-trading
Equity securities held-for-trading	0	526	$ 0
GSE debentures
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	245,960	273,820
Gross Unrealized Gains	3,583	5,455
Gross Unrealized Losses	3,209	630
Estimated Fair Value	246,334	278,645
GSE CMOs
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	35,149	44,937
Gross Unrealized Gains	803	1,103
Gross Unrealized Losses	8	12
Estimated Fair Value	35,944	46,028
GSE MBSs
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	240,300	312,658
Gross Unrealized Gains	6,124	10,956
Gross Unrealized Losses	370	5
Estimated Fair Value	246,054	323,609
Corporate debt obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,239	22,299
Gross Unrealized Gains	869	1,168
Gross Unrealized Losses	0	0
Estimated Fair Value	23,108	23,467
U.S. Treasury bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	142,080	70,339
Gross Unrealized Gains	2,154	3,318
Gross Unrealized Losses	2,020	80
Estimated Fair Value	142,214	73,577
Foreign government obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	500	500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	3	4
Estimated Fair Value	$ 497	$ 496

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Investment Securities - Other-Than-Temporary Impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Investment securities available-for-sale:
Less than twelve months, estimated fair value	$ 204,569	$ 85,429
Less than twelve months, unrealized losses	5,405	722
Twelve months or longer, estimated fair value	9,669	1,465
Twelve months or longer, unrealized losses	205	9
Debt securities, available-for-sale, unrealized loss position	214,238	86,894
Total, unrealized losses	5,610	731
Total temporarily impaired investment securities
Less than twelve months, estimated fair value	204,569	85,429
Less than twelve months, unrealized losses	5,405	722
Twelve months or longer, estimated fair value	9,669	1,465
Twelve months or longer, unrealized losses	205	9
Total, estimated fair value	214,238	86,894
Total, unrealized losses	5,610	731
GSE debentures
Investment securities available-for-sale:
Less than twelve months, estimated fair value	91,341	72,745
Less than twelve months, unrealized losses	3,018	630
Twelve months or longer, estimated fair value	7,874	0
Twelve months or longer, unrealized losses	191	0
Debt securities, available-for-sale, unrealized loss position	99,215	72,745
Total, unrealized losses	3,209	630
GSE CMOs
Investment securities available-for-sale:
Less than twelve months, estimated fair value	0	832
Less than twelve months, unrealized losses	0	7
Twelve months or longer, estimated fair value	924	872
Twelve months or longer, unrealized losses	8	5
Debt securities, available-for-sale, unrealized loss position	924	1,704
Total, unrealized losses	8	12
GSE MBSs
Investment securities available-for-sale:
Less than twelve months, estimated fair value	49,570	2,102
Less than twelve months, unrealized losses	367	5
Twelve months or longer, estimated fair value	374	97
Twelve months or longer, unrealized losses	3	0
Debt securities, available-for-sale, unrealized loss position	49,944	2,199
Total, unrealized losses	370	5
U.S. Treasury bonds
Investment securities available-for-sale:
Less than twelve months, estimated fair value	63,658	9,750
Less than twelve months, unrealized losses	2,020	80
Twelve months or longer, estimated fair value	0	0
Twelve months or longer, unrealized losses	0	0
Debt securities, available-for-sale, unrealized loss position	63,658	9,750
Total, unrealized losses	2,020	80
Foreign government obligations
Investment securities available-for-sale:
Less than twelve months, estimated fair value	0	0
Less than twelve months, unrealized losses	0	0
Twelve months or longer, estimated fair value	497	496
Twelve months or longer, unrealized losses	3	4
Debt securities, available-for-sale, unrealized loss position	497	496
Total, unrealized losses	$ 3	$ 4

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Investment Securities - Portfolio Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Available for Sale, Amortized Cost
Within 1 year	$ 60,865	$ 31,633
After 1 year through 5 years	251,542	146,274
After 5 years through 10 years	115,322	222,271
Over 10 years	258,499	324,375
Amortized Cost	686,228	724,553
Available for Sale, Estimated Fair Value
Within 1 year	61,478	32,013
After 1 year through 5 years	256,988	153,262
After 5 years through 10 years	120,226	225,568
Over 10 years	255,459	334,979
Total	$ 694,151	$ 745,822
Available for Sale, Weighted Average Rate
Within 1 year	1.98%	2.02%
After 1 year through 5 years	1.95%	2.22%
After 5 years through 10 years	2.26%	1.43%
Over 10 years	1.31%	1.86%
Total	1.77%	1.81%

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Investment Securities - Security Sales (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	$ 520	$ 132,014
Gross gains from securities sales	1	3,152
Gross losses from securities sales	0	(167)
Gain on sales of securities, net	$ 1	$ 2,985

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Loans and Leases - Summary of Loan and Lease Balances and Weighted Average Coupon Rates (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 7,020,275	$ 7,269,553
Total weighted average coupon	3.93%	3.97%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 2,646,104	$ 2,578,773
Multi-family mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	967,891	1,013,432
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	201,586	231,621
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	918,345	1,131,668
Equipment financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	1,074,088	1,092,461
Condominium association
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	46,418	50,770
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	799,027	791,317
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	331,038	346,652
Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	35,778	32,859
Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 3,815,581	$ 3,823,826
Total weighted average coupon	3.46%	3.56%
Commercial real estate loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 2,646,104	$ 2,578,773
Total weighted average coupon	3.45%	3.58%
Commercial real estate loans | Multi-family mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 967,891	$ 1,013,432
Total weighted average coupon	3.44%	3.53%
Commercial real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 201,586	$ 231,621
Total weighted average coupon	3.65%	3.49%
Commercial loans and leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 2,038,851	$ 2,274,899
Total weighted average coupon	5.11%	4.86%
Commercial loans and leases | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 918,345	$ 1,131,668
Total weighted average coupon	2.86%	2.55%
Commercial loans and leases | Equipment financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 1,074,088	$ 1,092,461
Total weighted average coupon	7.07%	7.26%
Commercial loans and leases | Condominium association
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 46,418	$ 50,770
Total weighted average coupon	4.46%	4.55%
Commercial loans and leases | SBA PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 348,411	$ 489,216
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 1,165,843	$ 1,170,828
Total weighted average coupon	3.49%	3.58%
Consumer loans | Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 799,027	$ 791,317
Total weighted average coupon	3.61%	3.74%
Consumer loans | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 331,038	$ 346,652
Total weighted average coupon	3.26%	3.26%
Consumer loans | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 35,778	$ 32,859
Total weighted average coupon	2.93%	3.04%

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Loans and Leases - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized deferred loan origination costs	$ 2,600,000	$ 4,100,000
Percentage of loans to aggregate outstanding amount in the greater New York/New Jersey Metropolitan area and northeastern states	27.70%
Percentage of loans to aggregate outstanding amount in other areas of the United States	72.30%
Loans and leases pledged as collateral	$ 3,100,000,000		$ 3,500,000,000
Total loans and leases	7,020,275,000	7,269,553,000
FRB Borrowings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Loans and Leases Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans and leases	$ 18,500,000	$ 20,500,000

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Allowance for Loan and Lease Losses - Summary of Changes in the Allowance for Loan and Lease Losses and Recorded Investments by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Changes in allowance for loan losses
Balance at the beginning of the period	$ 109,837	$ 113,181	$ 114,379	$ 61,082
Charge-offs	(1,221)	(1,803)	(3,364)	(4,342)
Recoveries	626	420	1,009	725
(Credit) provision for loan and lease losses excluding unfunded commitments	(2,768)	7,755	(5,550)	55,456
Balance at the end of the period	106,474	119,553	106,474	119,553
Provisions for credit losses
Provision for loan and lease losses	(2,768)	7,755	(5,550)	55,456
Unfunded commitments	(563)	(2,408)	72	4,005
Total (credit) provision for credit losses	(3,331)	5,347	(5,478)	59,461
Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for loan losses
Balance at the beginning of the period				6,632
Commercial Real Estate
Changes in allowance for loan losses
Balance at the beginning of the period	79,929	82,179	80,132	30,285
Charge-offs	(28)	0	(28)	0
Recoveries	11	94	11	94
(Credit) provision for loan and lease losses excluding unfunded commitments	(5,903)	7,738	(6,106)	47,938
Balance at the end of the period	74,009	90,011	74,009	90,011
Provisions for credit losses
Provision for loan and lease losses	(5,903)	7,738	(6,106)	47,938
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for loan losses
Balance at the beginning of the period				11,694
Commercial
Changes in allowance for loan losses
Balance at the beginning of the period	25,825	26,774	29,498	24,826
Charge-offs	(1,184)	(1,794)	(3,323)	(4,321)
Recoveries	489	296	819	543
(Credit) provision for loan and lease losses excluding unfunded commitments	3,234	(338)	1,370	6,562
Balance at the end of the period	28,364	24,938	28,364	24,938
Provisions for credit losses
Provision for loan and lease losses	3,234	(338)	1,370	6,562
Commercial | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for loan losses
Balance at the beginning of the period				(2,672)
Consumer
Changes in allowance for loan losses
Balance at the beginning of the period	4,083	4,228	4,749	5,971
Charge-offs	(9)	(9)	(13)	(21)
Recoveries	126	30	179	88
(Credit) provision for loan and lease losses excluding unfunded commitments	(99)	355	(814)	956
Balance at the end of the period	4,101	4,604	4,101	4,604
Provisions for credit losses
Provision for loan and lease losses	$ (99)	$ 355	$ (814)	956
Consumer | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for loan losses
Balance at the beginning of the period				$ (2,390)

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Allowance for Loan and Lease Losses - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($) loan	Jun. 30, 2021 USD ($) bank loan	Jun. 30, 2020 USD ($) loan	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded credit commitments liability included in other liabilities	$ 13,100,000		$ 13,100,000			$ 13,100,000
General allowance for loan and lease losses	105,400,000		105,400,000			112,100,000
Specific allowance for loan and lease losses	1,100,000		1,100,000		$ 1,100,000	2,300,000
Increase (decrease) in specific portion of the allowance for loan and lease losses			(1,200,000)
Total loans and leases	$ 7,020,275,000		7,020,275,000			7,269,553,000
Number of loans | loan	30	11		14
Interest income on nonaccrual loans	$ 0
Increase in total debt restructured loans and leases			1,800,000
Total troubled debt restructurings	20,797,000		$ 20,797,000			18,959,000
New number of loans | loan			41
Recorded investment, at end of period	2,398,000	$ 1,160,000		$ 1,662,000
Financial impact of modification of performing and nonperforming loans			$ 500,000	600,000
Commitments to lend funds to debtors owing receivables whose terms had been modified in troubled debt restructurings			2,100,000	$ 1,800,000
Definite Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases						0
Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	5,890,211,000		5,890,211,000			6,131,584,000
Total | Definite Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0		0
Equipment financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	1,074,088,000		1,074,088,000			1,092,461,000
Total troubled debt restructurings	2,900,000		$ 2,900,000
New number of loans | loan			40
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 799,027,000		$ 799,027,000			791,317,000
Number of loans | loan	1
Total troubled debt restructurings	$ 800,000		$ 800,000
New number of loans | loan			1
Increase in TDR loans and leases that were modified	900,000
TDR Payoff
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total troubled debt restructurings	1,200,000		$ 1,200,000
Payoff number of loans | bank			8
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 331,038,000		$ 331,038,000			$ 346,652,000
Number of loans | loan	1
Increase in TDR loans and leases that were modified	$ 300,000
Loans Granted Short-Term Deferment Status
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 991,300,000		$ 991,300,000
Number of loans | loan	4,401		4,401
Short-Term Deferment Loans Returned To Payment Status
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 895,300,000		$ 895,300,000
Number of loans | loan	4,250		4,250
Loans With Short-Term Deferments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 96,000,000.0		$ 96,000,000.0
Number of loans | loan	151		151
Percent of total loan balance	1.40%		1.40%

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Allowance for Loan and Lease Losses - Credit Quality Information (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Credit Quality Information
Total loans and leases	$ 7,020,275,000	$ 7,269,553,000
Definite Loss
Credit Quality Information
Total loans and leases		0
Commercial real estate
Credit Quality Information
Current fiscal year	250,848,000	352,832,000
Fiscal year before current fiscal year	354,139,000	412,548,000
Two years before current fiscal year	395,046,000	282,629,000
Three years before current fiscal year	247,536,000	257,047,000
Four years before current fiscal year	223,895,000	246,791,000
Prior	1,105,491,000	958,887,000
Revolving Loans	50,918,000	55,392,000
Revolving Loans Converted to Term Loans	18,231,000	12,647,000
Total loans and leases	2,646,104,000	2,578,773,000
Commercial real estate | Pass
Credit Quality Information
Current fiscal year	250,161,000	352,832,000
Fiscal year before current fiscal year	353,110,000	412,071,000
Two years before current fiscal year	367,648,000	282,629,000
Three years before current fiscal year	247,536,000	255,786,000
Four years before current fiscal year	217,389,000	243,477,000
Prior	1,054,660,000	944,676,000
Revolving Loans	50,918,000	55,392,000
Revolving Loans Converted to Term Loans	14,237,000	12,585,000
Total loans and leases	2,555,659,000	2,559,448,000
Commercial real estate | OAEM
Credit Quality Information
Current fiscal year	687,000	0
Fiscal year before current fiscal year	834,000	477,000
Two years before current fiscal year	27,398,000	0
Three years before current fiscal year	0	0
Four years before current fiscal year	4,902,000	3,312,000
Prior	42,220,000	8,991,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	76,041,000	12,780,000
Commercial real estate | Substandard
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	195,000	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	1,261,000
Four years before current fiscal year	1,604,000	2,000
Prior	8,611,000	5,220,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	3,994,000	62,000
Total loans and leases	14,404,000	6,545,000
Multi-family mortgage
Credit Quality Information
Current fiscal year	60,027,000	125,434,000
Fiscal year before current fiscal year	124,950,000	136,620,000
Two years before current fiscal year	144,801,000	162,180,000
Three years before current fiscal year	115,350,000	103,997,000
Four years before current fiscal year	93,077,000	127,873,000
Prior	397,384,000	306,612,000
Revolving Loans	4,784,000	15,845,000
Revolving Loans Converted to Term Loans	27,518,000	34,871,000
Total loans and leases	967,891,000	1,013,432,000
Multi-family mortgage | Pass
Credit Quality Information
Current fiscal year	60,027,000	125,434,000
Fiscal year before current fiscal year	124,950,000	136,620,000
Two years before current fiscal year	144,801,000	162,180,000
Three years before current fiscal year	115,350,000	103,997,000
Four years before current fiscal year	93,077,000	127,873,000
Prior	394,645,000	304,224,000
Revolving Loans	4,784,000	15,845,000
Revolving Loans Converted to Term Loans	27,518,000	34,871,000
Total loans and leases	965,152,000	1,011,044,000
Multi-family mortgage | OAEM
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	2,739,000	2,388,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	2,739,000	2,388,000
Construction
Credit Quality Information
Current fiscal year	4,663,000	46,249,000
Fiscal year before current fiscal year	52,601,000	60,927,000
Two years before current fiscal year	50,395,000	112,856,000
Three years before current fiscal year	87,246,000	1,799,000
Four years before current fiscal year	658,000	5,552,000
Prior	6,023,000	404,000
Revolving Loans	0	3,834,000
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	201,586,000	231,621,000
Construction | Pass
Credit Quality Information
Current fiscal year	4,663,000	46,249,000
Fiscal year before current fiscal year	52,601,000	56,074,000
Two years before current fiscal year	46,573,000	112,856,000
Three years before current fiscal year	87,246,000	1,799,000
Four years before current fiscal year	658,000	2,788,000
Prior	6,023,000	404,000
Revolving Loans	0	3,834,000
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	197,764,000	224,004,000
Construction | Substandard
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	0	4,853,000
Two years before current fiscal year	3,822,000	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	2,764,000
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	3,822,000	7,617,000
Commercial
Credit Quality Information
Current fiscal year	312,085,000	574,932,000
Fiscal year before current fiscal year	154,204,000	71,128,000
Two years before current fiscal year	51,174,000	41,454,000
Three years before current fiscal year	38,974,000	62,501,000
Four years before current fiscal year	33,288,000	22,149,000
Prior	127,574,000	121,344,000
Revolving Loans	198,829,000	235,807,000
Revolving Loans Converted to Term Loans	2,217,000	2,353,000
Total loans and leases	918,345,000	1,131,668,000
Commercial | Pass
Credit Quality Information
Current fiscal year	312,085,000	574,542,000
Fiscal year before current fiscal year	152,581,000	66,278,000
Two years before current fiscal year	47,241,000	41,325,000
Three years before current fiscal year	38,867,000	62,112,000
Four years before current fiscal year	20,149,000	22,085,000
Prior	125,055,000	113,715,000
Revolving Loans	192,823,000	226,495,000
Revolving Loans Converted to Term Loans	1,359,000	1,687,000
Total loans and leases	890,160,000	1,108,239,000
Commercial | OAEM
Credit Quality Information
Current fiscal year	0	310,000
Fiscal year before current fiscal year	1,592,000	4,850,000
Two years before current fiscal year	3,933,000	0
Three years before current fiscal year	0	0
Four years before current fiscal year	12,840,000	35,000
Prior	7,000	17,000
Revolving Loans	1,521,000	5,382,000
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	19,893,000	10,594,000
Commercial | Substandard
Credit Quality Information
Current fiscal year	0	80,000
Fiscal year before current fiscal year	31,000	0
Two years before current fiscal year	0	129,000
Three years before current fiscal year	107,000	389,000
Four years before current fiscal year	299,000	29,000
Prior	2,511,000	7,612,000
Revolving Loans	4,485,000	3,930,000
Revolving Loans Converted to Term Loans	857,000	664,000
Total loans and leases	8,290,000	12,833,000
Commercial | Doubtful
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	1,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	1,000	2,000
Total loans and leases	2,000	2,000
Equipment financing
Credit Quality Information
Current fiscal year	149,995,000	332,974,000
Fiscal year before current fiscal year	305,846,000	311,746,000
Two years before current fiscal year	270,350,000	214,813,000
Three years before current fiscal year	173,650,000	125,510,000
Four years before current fiscal year	93,423,000	60,033,000
Prior	78,067,000	46,173,000
Revolving Loans	2,139,000	636,000
Revolving Loans Converted to Term Loans	618,000	576,000
Total loans and leases	1,074,088,000	1,092,461,000
Equipment financing | Pass
Credit Quality Information
Current fiscal year	149,995,000	332,375,000
Fiscal year before current fiscal year	304,555,000	306,231,000
Two years before current fiscal year	265,845,000	209,219,000
Three years before current fiscal year	168,156,000	121,845,000
Four years before current fiscal year	89,716,000	56,241,000
Prior	74,929,000	45,451,000
Revolving Loans	2,139,000	636,000
Revolving Loans Converted to Term Loans	618,000	576,000
Total loans and leases	1,055,953,000	1,072,574,000
Equipment financing | OAEM
Credit Quality Information
Current fiscal year	0	196,000
Fiscal year before current fiscal year	196,000	1,066,000
Two years before current fiscal year	1,185,000	290,000
Three years before current fiscal year	480,000	93,000
Four years before current fiscal year	172,000	609,000
Prior	691,000	85,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	2,724,000	2,339,000
Equipment financing | Substandard
Credit Quality Information
Current fiscal year	0	402,000
Fiscal year before current fiscal year	1,094,000	4,385,000
Two years before current fiscal year	2,939,000	5,280,000
Three years before current fiscal year	5,013,000	3,545,000
Four years before current fiscal year	3,529,000	1,891,000
Prior	1,873,000	631,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	14,448,000	16,134,000
Equipment financing | Doubtful
Credit Quality Information
Current fiscal year	0	1,000
Fiscal year before current fiscal year	1,000	64,000
Two years before current fiscal year	381,000	24,000
Three years before current fiscal year	1,000	27,000
Four years before current fiscal year	6,000	1,292,000
Prior	574,000	6,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	963,000	1,414,000
Condominium association
Credit Quality Information
Current fiscal year	717,000	6,455,000
Fiscal year before current fiscal year	9,132,000	9,918,000
Two years before current fiscal year	8,390,000	5,399,000
Three years before current fiscal year	4,531,000	7,928,000
Four years before current fiscal year	6,301,000	5,325,000
Prior	15,721,000	12,682,000
Revolving Loans	1,586,000	2,684,000
Revolving Loans Converted to Term Loans	40,000	379,000
Total loans and leases	46,418,000	50,770,000
Condominium association | Pass
Credit Quality Information
Current fiscal year	717,000	6,455,000
Fiscal year before current fiscal year	9,132,000	9,918,000
Two years before current fiscal year	8,390,000	5,399,000
Three years before current fiscal year	4,531,000	7,928,000
Four years before current fiscal year	6,301,000	5,213,000
Prior	15,624,000	12,682,000
Revolving Loans	1,586,000	2,684,000
Revolving Loans Converted to Term Loans	40,000	379,000
Total loans and leases	46,321,000	50,658,000
Condominium association | Substandard
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	112,000
Prior	97,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	97,000	112,000
Other consumer
Credit Quality Information
Current fiscal year	613,000	694,000
Fiscal year before current fiscal year	215,000	549,000
Two years before current fiscal year	504,000	1,938,000
Three years before current fiscal year	1,818,000	32,000
Four years before current fiscal year	30,000	570,000
Prior	766,000	301,000
Revolving Loans	31,817,000	28,755,000
Revolving Loans Converted to Term Loans	15,000	20,000
Total loans and leases	35,778,000	32,859,000
Other consumer | Pass
Credit Quality Information
Current fiscal year	613,000	694,000
Fiscal year before current fiscal year	215,000	549,000
Two years before current fiscal year	504,000	1,938,000
Three years before current fiscal year	1,818,000	32,000
Four years before current fiscal year	30,000	570,000
Prior	765,000	301,000
Revolving Loans	31,817,000	28,755,000
Revolving Loans Converted to Term Loans	14,000	18,000
Total loans and leases	35,776,000	32,857,000
Other consumer | Substandard
Credit Quality Information
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	1,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	1,000	2,000
Total loans and leases	2,000	2,000
Total
Credit Quality Information
Current fiscal year	778,948,000	1,439,570,000
Fiscal year before current fiscal year	1,001,087,000	1,003,436,000
Two years before current fiscal year	920,660,000	821,269,000
Three years before current fiscal year	669,105,000	558,814,000
Four years before current fiscal year	450,673,000	468,293,000
Prior	1,731,026,000	1,446,403,000
Revolving Loans	290,073,000	342,953,000
Revolving Loans Converted to Term Loans	48,639,000	50,846,000
Total loans and leases	5,890,211,000	6,131,584,000
Total | Pass
Credit Quality Information
Current fiscal year	778,261,000	1,438,581,000
Fiscal year before current fiscal year	997,144,000	987,741,000
Two years before current fiscal year	881,002,000	815,546,000
Three years before current fiscal year	663,504,000	553,499,000
Four years before current fiscal year	427,320,000	458,247,000
Prior	1,671,701,000	1,421,453,000
Revolving Loans	284,067,000	333,641,000
Revolving Loans Converted to Term Loans	43,786,000	50,116,000
Total loans and leases	5,746,785,000	6,058,824,000
Total | OAEM
Credit Quality Information
Current fiscal year	687,000	506,000
Fiscal year before current fiscal year	2,622,000	6,393,000
Two years before current fiscal year	32,516,000	290,000
Three years before current fiscal year	480,000	93,000
Four years before current fiscal year	17,914,000	3,956,000
Prior	45,657,000	11,481,000
Revolving Loans	1,521,000	5,382,000
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	101,397,000	28,101,000
Total | Substandard
Credit Quality Information
Current fiscal year	0	482,000
Fiscal year before current fiscal year	1,320,000	9,238,000
Two years before current fiscal year	6,761,000	5,409,000
Three years before current fiscal year	5,120,000	5,195,000
Four years before current fiscal year	5,432,000	4,798,000
Prior	13,093,000	13,463,000
Revolving Loans	4,485,000	3,930,000
Revolving Loans Converted to Term Loans	4,852,000	728,000
Total loans and leases	41,063,000	43,243,000
Total | Doubtful
Credit Quality Information
Current fiscal year	0	1,000
Fiscal year before current fiscal year	1,000	64,000
Two years before current fiscal year	381,000	24,000
Three years before current fiscal year	1,000	27,000
Four years before current fiscal year	7,000	1,292,000
Prior	575,000	6,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	1,000	2,000
Total loans and leases	966,000	1,416,000
Total | Definite Loss
Credit Quality Information
Total loans and leases	0
Residential
Credit Quality Information
Current fiscal year	120,668,000	167,496,000
Fiscal year before current fiscal year	150,998,000	136,467,000
Two years before current fiscal year	111,682,000	94,357,000
Three years before current fiscal year	77,493,000	87,749,000
Four years before current fiscal year	74,963,000	65,741,000
Prior	259,794,000	233,734,000
Revolving Loans	3,071,000	4,442,000
Revolving Loans Converted to Term Loans	358,000	1,331,000
Total loans and leases	799,027,000	791,317,000
Residential | Over 700
Credit Quality Information
Current fiscal year	95,094,000	119,566,000
Fiscal year before current fiscal year	111,814,000	94,300,000
Two years before current fiscal year	75,571,000	62,452,000
Three years before current fiscal year	49,291,000	53,662,000
Four years before current fiscal year	44,618,000	47,327,000
Prior	152,417,000	124,999,000
Revolving Loans	3,071,000	4,442,000
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	531,876,000	506,748,000
Residential | 661 - 700
Credit Quality Information
Current fiscal year	10,810,000	21,820,000
Fiscal year before current fiscal year	21,194,000	19,426,000
Two years before current fiscal year	15,573,000	10,943,000
Three years before current fiscal year	9,047,000	15,616,000
Four years before current fiscal year	13,001,000	8,132,000
Prior	27,049,000	23,282,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	96,674,000	99,219,000
Residential | 600 and below
Credit Quality Information
Current fiscal year	2,174,000	6,901,000
Fiscal year before current fiscal year	6,034,000	5,659,000
Two years before current fiscal year	4,321,000	4,763,000
Three years before current fiscal year	3,602,000	4,318,000
Four years before current fiscal year	4,205,000	4,553,000
Prior	15,194,000	13,997,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total loans and leases	35,530,000	40,191,000
Residential | Data not available
Credit Quality Information
Current fiscal year	12,590,000	19,209,000
Fiscal year before current fiscal year	11,956,000	17,082,000
Two years before current fiscal year	16,217,000	16,199,000
Three years before current fiscal year	15,553,000	14,153,000
Four years before current fiscal year	13,139,000	5,729,000
Prior	65,134,000	71,456,000
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	358,000	1,331,000
Total loans and leases	134,947,000	145,159,000
Home equity
Credit Quality Information
Current fiscal year	1,030,000	1,788,000
Fiscal year before current fiscal year	1,755,000	3,399,000
Two years before current fiscal year	2,488,000	3,205,000
Three years before current fiscal year	2,681,000	3,349,000
Four years before current fiscal year	2,151,000	1,254,000
Prior	13,788,000	17,525,000
Revolving Loans	302,631,000	310,363,000
Revolving Loans Converted to Term Loans	4,514,000	5,769,000
Total loans and leases	331,038,000	346,652,000
Home equity | Over 700
Credit Quality Information
Current fiscal year	955,000	1,546,000
Fiscal year before current fiscal year	1,486,000	2,832,000
Two years before current fiscal year	2,064,000	2,440,000
Three years before current fiscal year	1,962,000	2,770,000
Four years before current fiscal year	1,885,000	910,000
Prior	9,867,000	12,804,000
Revolving Loans	238,867,000	247,538,000
Revolving Loans Converted to Term Loans	2,306,000	2,397,000
Total loans and leases	259,392,000	273,237,000
Home equity | 661 - 700
Credit Quality Information
Current fiscal year	75,000	122,000
Fiscal year before current fiscal year	113,000	459,000
Two years before current fiscal year	320,000	499,000
Three years before current fiscal year	464,000	566,000
Four years before current fiscal year	253,000	305,000
Prior	2,112,000	2,793,000
Revolving Loans	43,102,000	45,356,000
Revolving Loans Converted to Term Loans	396,000	1,334,000
Total loans and leases	46,835,000	51,434,000
Home equity | 600 and below
Credit Quality Information
Current fiscal year	0	59,000
Fiscal year before current fiscal year	56,000	108,000
Two years before current fiscal year	104,000	266,000
Three years before current fiscal year	255,000	13,000
Four years before current fiscal year	13,000	39,000
Prior	514,000	541,000
Revolving Loans	9,817,000	10,139,000
Revolving Loans Converted to Term Loans	923,000	878,000
Total loans and leases	11,682,000	12,043,000
Home equity | Data not available
Credit Quality Information
Current fiscal year	0	61,000
Fiscal year before current fiscal year	100,000	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	1,295,000	1,387,000
Revolving Loans	10,845,000	7,330,000
Revolving Loans Converted to Term Loans	889,000	1,160,000
Total loans and leases	$ 13,129,000	$ 9,938,000

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Allowance for Loan and Lease Losses - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Age analysis of past due loans
Total loans and leases	$ 7,020,275	$ 7,269,553
Past Due Greater Than 90 Days and Accruing	3,154	11,975
Non-accrual	34,216	38,448
Non-accrual with No Related Allowance	22,202	22,811
Commercial real estate
Age analysis of past due loans
Total loans and leases	2,646,104	2,578,773
Multi-family mortgage
Age analysis of past due loans
Total loans and leases	967,891	1,013,432
Construction
Age analysis of past due loans
Total loans and leases	201,586	231,621
Commercial
Age analysis of past due loans
Total loans and leases	918,345	1,131,668
Equipment financing
Age analysis of past due loans
Total loans and leases	1,074,088	1,092,461
Condominium association
Age analysis of past due loans
Total loans and leases	46,418	50,770
Residential mortgage
Age analysis of past due loans
Total loans and leases	799,027	791,317
Home equity
Age analysis of past due loans
Total loans and leases	331,038	346,652
Other consumer
Age analysis of past due loans
Total loans and leases	35,778	32,859
Commercial real estate loans
Age analysis of past due loans
Total loans and leases	3,815,581	3,823,826
Past Due Greater Than 90 Days and Accruing	0	8,486
Non-accrual	11,657	7,153
Non-accrual with No Related Allowance	11,452	6,433
Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	2,646,104	2,578,773
Past Due Greater Than 90 Days and Accruing	0	4,722
Non-accrual	11,657	3,300
Non-accrual with No Related Allowance	11,452	2,580
Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	967,891	1,013,432
Past Due Greater Than 90 Days and Accruing	0	0
Non-accrual	0	0
Non-accrual with No Related Allowance	0	0
Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	201,586	231,621
Past Due Greater Than 90 Days and Accruing	0	3,764
Non-accrual	0	3,853
Non-accrual with No Related Allowance	0	3,853
Commercial loans and leases
Age analysis of past due loans
Total loans and leases	2,038,851	2,274,899
Past Due Greater Than 90 Days and Accruing	2,850	3,486
Non-accrual	18,176	24,571
Non-accrual with No Related Allowance	7,053	10,437
Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	918,345	1,131,668
Past Due Greater Than 90 Days and Accruing	0	3,486
Non-accrual	3,207	7,702
Non-accrual with No Related Allowance	1,723	6,263
Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	1,074,088	1,092,461
Past Due Greater Than 90 Days and Accruing	2,850	0
Non-accrual	14,872	16,757
Non-accrual with No Related Allowance	5,330	4,062
Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	46,418	50,770
Past Due Greater Than 90 Days and Accruing	0	0
Non-accrual	97	112
Non-accrual with No Related Allowance	0	112
Consumer loans
Age analysis of past due loans
Total loans and leases	1,165,843	1,170,828
Past Due Greater Than 90 Days and Accruing	304	3
Non-accrual	4,383	6,724
Non-accrual with No Related Allowance	3,697	5,941
Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	799,027	791,317
Past Due Greater Than 90 Days and Accruing	301	0
Non-accrual	3,638	5,587
Non-accrual with No Related Allowance	3,185	5,117
Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	331,038	346,652
Past Due Greater Than 90 Days and Accruing	3	3
Non-accrual	744	1,136
Non-accrual with No Related Allowance	512	824
Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	35,778	32,859
Past Due Greater Than 90 Days and Accruing	0	0
Non-accrual	1	1
Non-accrual with No Related Allowance	0	0
Past Due
Age analysis of past due loans
Total loans and leases	42,998	82,574
Past Due | Commercial real estate loans
Age analysis of past due loans
Total loans and leases	16,934	46,398
Past Due | Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	13,899	37,968
Past Due | Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	3,035	813
Past Due | Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	0	7,617
Past Due | Commercial loans and leases
Age analysis of past due loans
Total loans and leases	19,865	28,129
Past Due | Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	2,096	9,926
Past Due | Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	17,231	17,624
Past Due | Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	538	579
Past Due | Consumer loans
Age analysis of past due loans
Total loans and leases	6,199	8,047
Past Due | Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	5,298	6,650
Past Due | Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	893	1,383
Past Due | Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	8	14
31-60 days past due
Age analysis of past due loans
Total loans and leases	10,152	28,564
31-60 days past due | Commercial real estate loans
Age analysis of past due loans
Total loans and leases	4,192	19,107
31-60 days past due | Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	1,157	18,294
31-60 days past due | Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	3,035	813
31-60 days past due | Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	0	0
31-60 days past due | Commercial loans and leases
Age analysis of past due loans
Total loans and leases	4,520	6,703
31-60 days past due | Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	153	451
31-60 days past due | Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	3,914	5,970
31-60 days past due | Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	453	282
31-60 days past due | Consumer loans
Age analysis of past due loans
Total loans and leases	1,440	2,754
31-60 days past due | Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	1,075	2,161
31-60 days past due | Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	363	580
31-60 days past due | Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	2	13
61-90 days past due
Age analysis of past due loans
Total loans and leases	5,938	16,129
61-90 days past due | Commercial real estate loans
Age analysis of past due loans
Total loans and leases	1,517	12,402
61-90 days past due | Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	1,517	12,402
61-90 days past due | Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	0	0
61-90 days past due | Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	0	0
61-90 days past due | Commercial loans and leases
Age analysis of past due loans
Total loans and leases	3,297	2,864
61-90 days past due | Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	761	304
61-90 days past due | Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	2,451	2,263
61-90 days past due | Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	85	297
61-90 days past due | Consumer loans
Age analysis of past due loans
Total loans and leases	1,124	863
61-90 days past due | Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	1,119	648
61-90 days past due | Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	0	215
61-90 days past due | Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	5	0
Greater than 90 days past due
Age analysis of past due loans
Total loans and leases	26,908	37,881
Greater than 90 days past due | Commercial real estate loans
Age analysis of past due loans
Total loans and leases	11,225	14,889
Greater than 90 days past due | Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	11,225	7,272
Greater than 90 days past due | Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	0	0
Greater than 90 days past due | Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	0	7,617
Greater than 90 days past due | Commercial loans and leases
Age analysis of past due loans
Total loans and leases	12,048	18,562
Greater than 90 days past due | Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	1,182	9,171
Greater than 90 days past due | Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	10,866	9,391
Greater than 90 days past due | Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	0	0
Greater than 90 days past due | Consumer loans
Age analysis of past due loans
Total loans and leases	3,635	4,430
Greater than 90 days past due | Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	3,104	3,841
Greater than 90 days past due | Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	530	588
Greater than 90 days past due | Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	1	1
Current
Age analysis of past due loans
Total loans and leases	6,977,277	7,186,979
Current | Commercial real estate loans
Age analysis of past due loans
Total loans and leases	3,798,647	3,777,428
Current | Commercial real estate loans | Commercial real estate
Age analysis of past due loans
Total loans and leases	2,632,205	2,540,805
Current | Commercial real estate loans | Multi-family mortgage
Age analysis of past due loans
Total loans and leases	964,856	1,012,619
Current | Commercial real estate loans | Construction
Age analysis of past due loans
Total loans and leases	201,586	224,004
Current | Commercial loans and leases
Age analysis of past due loans
Total loans and leases	2,018,986	2,246,770
Current | Commercial loans and leases | Commercial
Age analysis of past due loans
Total loans and leases	916,249	1,121,742
Current | Commercial loans and leases | Equipment financing
Age analysis of past due loans
Total loans and leases	1,056,857	1,074,837
Current | Commercial loans and leases | Condominium association
Age analysis of past due loans
Total loans and leases	45,880	50,191
Current | Consumer loans
Age analysis of past due loans
Total loans and leases	1,159,644	1,162,781
Current | Consumer loans | Residential mortgage
Age analysis of past due loans
Total loans and leases	793,729	784,667
Current | Consumer loans | Home equity
Age analysis of past due loans
Total loans and leases	330,145	345,269
Current | Consumer loans | Other consumer
Age analysis of past due loans
Total loans and leases	$ 35,770	$ 32,845

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Allowance for Loan and Lease Losses - Recorded Investment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Recorded investment in loans and leases by portfolio segment
Individually evaluated for impairment, allowance	$ 1,106		$ 2,311
Collectively evaluated for impairment, allowance	105,368		112,068
Total allowance for loan and lease losses	106,474	$ 109,837	114,379	$ 119,553	$ 113,181	$ 61,082
Individually evaluated, loans and leases	47,084		47,646
Collectively evaluated, loans and leases	6,973,191		7,221,907
Total loans and leases	7,020,275		7,269,553
Commercial real estate loans
Recorded investment in loans and leases by portfolio segment
Individually evaluated for impairment, allowance	93		183
Collectively evaluated for impairment, allowance	73,916		79,949
Total allowance for loan and lease losses	74,009	79,929	80,132	90,011	82,179	30,285
Individually evaluated, loans and leases	18,893		14,159
Collectively evaluated, loans and leases	3,796,688		3,809,667
Total loans and leases	3,815,581		3,823,826
Commercial
Recorded investment in loans and leases by portfolio segment
Individually evaluated for impairment, allowance	922		2,020
Collectively evaluated for impairment, allowance	27,442		27,478
Total allowance for loan and lease losses	28,364	25,825	29,498	24,938	26,774	24,826
Individually evaluated, loans and leases	20,639		24,727
Collectively evaluated, loans and leases	2,018,212		2,250,172
Total loans and leases	2,038,851		2,274,899
Consumer
Recorded investment in loans and leases by portfolio segment
Individually evaluated for impairment, allowance	91		108
Collectively evaluated for impairment, allowance	4,010		4,641
Total allowance for loan and lease losses	4,101	$ 4,083	4,749	$ 4,604	$ 4,228	$ 5,971
Individually evaluated, loans and leases	7,552		8,760
Collectively evaluated, loans and leases	1,158,291		1,162,068
Total loans and leases	$ 1,165,843		$ 1,170,828

XML

Allowance for Loan and Lease Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($) loan	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($) loan	Dec. 31, 2020 USD ($)
Receivables [Abstract]
On accrual	$ 14,387		$ 14,387		$ 11,483
On nonaccrual	6,410		6,410		7,476
Total troubled debt restructurings	$ 20,797		20,797		$ 18,959
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	30	11		14
Recorded investment, at modification	$ 2,412	$ 1,174		$ 1,671
Recorded investment, at end of period	2,398	1,160		1,662
Specific Allowance for Credit Losses	9	0		0
Nonaccrual Loans and Leases	$ 483	$ 1,160		1,160
Additional Commitment				$ 0
Defaulted, number of loans/leases | loan	5	1		1
Defaulted, recorded investment	$ 211	$ 221		$ 221
Types of modification	2,398	1,160	4,595	1,662
Extended maturity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Types of modification	1,143	334	2,667	636
Adjusted principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Types of modification	0	44	0	44
Combination maturity, principal, interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Types of modification	1,255	$ 782	1,928	$ 982
Equipment financing
Receivables [Abstract]
Total troubled debt restructurings	2,900		2,900
Residential
Receivables [Abstract]
Total troubled debt restructurings	$ 800		$ 800
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	1
Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	1
Originated
Financing Receivable, Troubled Debt Restructuring [Line Items]
Defaulted, number of loans/leases | loan			5
Defaulted, recorded investment			$ 211
Originated | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan		0	1	0
Recorded investment, at modification		$ 0	$ 497	$ 0
Recorded investment, at end of period		0	497	0
Specific Allowance for Credit Losses		0	0	0
Nonaccrual Loans and Leases		$ 0	$ 0	0
Additional Commitment				$ 0
Defaulted, number of loans/leases | loan		1	0	1
Defaulted, recorded investment		$ 221	$ 0	$ 221
Originated | Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan				2
Recorded investment, at modification				$ 297
Recorded investment, at end of period				302
Specific Allowance for Credit Losses				0
Nonaccrual Loans and Leases				0
Additional Commitment				$ 0
Defaulted, number of loans/leases | loan				0
Defaulted, recorded investment				$ 0
Originated | Equipment financing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	28	11	40	11
Recorded investment, at modification	$ 1,236	$ 1,174	$ 2,954	$ 1,174
Recorded investment, at end of period	1,222	1,160	2,922	1,160
Specific Allowance for Credit Losses	9	0	9	0
Nonaccrual Loans and Leases	$ 483	$ 1,160	$ 713	1,160
Additional Commitment				$ 0
Defaulted, number of loans/leases | loan	5	0	5	0
Defaulted, recorded investment	$ 211	$ 0	$ 211	$ 0
Originated | Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	1		1
Recorded investment, at modification	$ 864		$ 864
Recorded investment, at end of period	864		864
Specific Allowance for Credit Losses	0		0
Nonaccrual Loans and Leases	$ 0		$ 0
Defaulted, number of loans/leases | loan	0		0
Defaulted, recorded investment	$ 0		$ 0
Originated | Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan	1		1	1
Recorded investment, at modification	$ 312		$ 312	$ 200
Recorded investment, at end of period	312		312	200
Specific Allowance for Credit Losses	0		0	0
Nonaccrual Loans and Leases	$ 0		$ 0	0
Additional Commitment				$ 0
Defaulted, number of loans/leases | loan	0		0	0
Defaulted, recorded investment	$ 0		$ 0	$ 0
Acquired
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans/ Leases | loan			43
Recorded investment, at modification			$ 4,627
Recorded investment, at end of period			4,595
Specific Allowance for Credit Losses			9
Nonaccrual Loans and Leases			$ 713

XML

Goodwill and Other Intangible Assets - Carrying Value of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 160,427	$ 160,427
Total other intangible assets	2,692	3,152
Total goodwill and other intangible assets	163,119	163,579
Core deposits
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets	1,603	2,063
Trade name
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets	$ 1,089	$ 1,089

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2013
Core deposits
Indefinite-lived Intangible Assets [Line Items]
Weighted-average amortization period	5 years 7 months 9 days
Trade name
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		$ 1.1

XML

Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 416
Year ending:
2022	494
2023	263
2024	151
2025	103
2026	74
Thereafter	102
Total	$ 1,603

XML

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Changes in accumulated other comprehensive (loss) income by component, net of tax
Balance beginning	$ 945,399	$ 912,568	$ 941,778	$ 945,606
Other comprehensive income (loss)	4,011	3,085	(10,396)	19,582
Reclassification adjustment for (income) expense recognized in earnings	(4)	494	(5)	2,327
Balance ending	972,252	926,413	972,252	926,413
Investment Securities Available-for-Sale
Changes in accumulated other comprehensive (loss) income by component, net of tax
Balance beginning	2,174	16,863	16,582	2,199
Other comprehensive income (loss)	4,003	3,085	(10,405)	19,582
Reclassification adjustment for (income) expense recognized in earnings	0	494	0	2,327
Balance ending	6,177	19,454	6,177	19,454
Net Change in Fair Value of Cash Flow Hedges
Changes in accumulated other comprehensive (loss) income by component, net of tax
Balance beginning	7	0	7	0
Other comprehensive income (loss)	8	0	9	0
Reclassification adjustment for (income) expense recognized in earnings	(4)	0	(5)	0
Balance ending	11	0	11	0
Postretirement Benefits
Changes in accumulated other comprehensive (loss) income by component, net of tax
Balance beginning	(99)	84	(99)	84
Other comprehensive income (loss)	0	0	0	0
Reclassification adjustment for (income) expense recognized in earnings	0	0	0	0
Balance ending	(99)	84	(99)	84
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive (loss) income by component, net of tax
Balance beginning	2,082	16,947	16,490	2,283
Balance ending	$ 6,089	$ 19,538	$ 6,089	$ 19,538

XML

Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Weighted average interest rate	0.10%
Derivative term of contract	2 years
Collateral posted	$ 146.6	$ 166.5

XML

Derivatives and Hedging Activities - Customer Related Derivative Positions (Details) $ in Thousands	Jun. 30, 2021 USD ($) derivative	Dec. 31, 2020 USD ($) derivative
Receive fixed, pay variable
Derivatives and Hedging Activities
Total	$ 1,186,507	$ 1,214,146
Receive fixed, pay variable | Derivatives not designed as hedging instruments
Derivatives and Hedging Activities
Number of Positions | derivative	128	136
Notional Amount Maturing, Less than 1 year	$ 8,395	$ 0
Notional Amount Maturing, Less than 2 years	2,387	8,541
Notional Amount Maturing, Less than 3 years	4,658	16,447
Notional Amount Maturing, Less than 4 years	160,737	99,014
Notional Amount Maturing, Thereafter	1,010,330	1,090,144
Total	1,186,507	1,214,146
Fair Value	83,306	129,284
Pay fixed, receive variable
Derivatives and Hedging Activities
Total	$ 1,186,507	$ 1,214,146
Pay fixed, receive variable | Derivatives not designed as hedging instruments
Derivatives and Hedging Activities
Number of Positions | derivative	128	136
Notional Amount Maturing, Less than 1 year	$ 8,395	$ 0
Notional Amount Maturing, Less than 2 years	2,387	8,541
Notional Amount Maturing, Less than 3 years	4,658	16,447
Notional Amount Maturing, Less than 4 years	160,737	99,014
Notional Amount Maturing, Thereafter	1,010,330	1,090,144
Total	1,186,507	1,214,146
Fair Value	83,306	129,284
Risk participation-out agreements
Derivatives and Hedging Activities
Total	$ 262,985	$ 252,655
Risk participation-out agreements | Derivatives not designed as hedging instruments
Derivatives and Hedging Activities
Number of Positions | derivative	37	37
Notional Amount Maturing, Less than 1 year	$ 0	$ 0
Notional Amount Maturing, Less than 2 years	0	0
Notional Amount Maturing, Less than 3 years	6,939	7,009
Notional Amount Maturing, Less than 4 years	29,276	22,733
Notional Amount Maturing, Thereafter	226,770	222,913
Total	262,985	252,655
Fair Value	1,289	1,843
Risk participation-in agreements
Derivatives and Hedging Activities
Total	$ 59,961	$ 60,619
Risk participation-in agreements | Derivatives not designed as hedging instruments
Derivatives and Hedging Activities
Number of Positions | derivative	8	8
Notional Amount Maturing, Less than 1 year	$ 0	$ 0
Notional Amount Maturing, Less than 2 years	0	0
Notional Amount Maturing, Less than 3 years	18,859	19,000
Notional Amount Maturing, Less than 4 years	0	0
Notional Amount Maturing, Thereafter	41,102	41,619
Total	59,961	60,619
Fair Value	232	361
Foreign exchange contracts | Buys foreign currency, sells U.S. currency
Derivatives and Hedging Activities
Total	1,360	1,266
Foreign exchange contracts | Sells foreign currency, buys U.S. currency
Derivatives and Hedging Activities
Total	$ 1,362	$ 1,273
Foreign exchange contracts | Derivatives not designed as hedging instruments | Buys foreign currency, sells U.S. currency
Derivatives and Hedging Activities
Number of Positions | derivative	11	18
Notional Amount Maturing, Less than 1 year	$ 1,360	$ 1,266
Notional Amount Maturing, Less than 2 years	0	0
Notional Amount Maturing, Less than 3 years	0	0
Notional Amount Maturing, Less than 4 years	0	0
Notional Amount Maturing, Thereafter	0	0
Total	1,360	1,266
Fair Value	$ 62	$ 156
Foreign exchange contracts | Derivatives not designed as hedging instruments | Sells foreign currency, buys U.S. currency
Derivatives and Hedging Activities
Number of Positions | derivative	16	20
Notional Amount Maturing, Less than 1 year	$ 1,362	$ 1,273
Notional Amount Maturing, Less than 2 years	0	0
Notional Amount Maturing, Less than 3 years	0	0
Notional Amount Maturing, Less than 4 years	0	0
Notional Amount Maturing, Thereafter	0	0
Total	1,362	1,273
Fair Value	$ 59	$ 148

XML

Derivatives and Hedging Activities - Offsetting of Derivatives and Amounts Subject to Master Netting Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Asset derivatives
Assets, Gross Amounts Recognized	$ 91,089	$ 133,335
Assets, Gross Amounts Offset in the Statement of Financial Position	0	0
Assets, Net Amounts Presented in the Statement of Financial Position	91,089	133,335
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0	0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0	0
Assets, Net Amount	91,089	133,335
Liability derivatives
Liabilities, Gross Amounts Recognized	90,017	131,837
Liabilities, Gross Amounts Offset in the Statement of Financial Position	0	0
Liabilities, Net Amounts Presented in the Statement of Financial Position	90,017	131,837
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	135,300	155,220
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	11,280	11,280
Liabilities, Net Amount	(56,563)	(34,663)
Interest rate derivatives
Asset derivatives
Assets, Gross Amounts Recognized		8
Assets, Gross Amounts Offset in the Statement of Financial Position		0
Assets, Net Amounts Presented in the Statement of Financial Position		8
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Assets, Net Amount		8
Loan level derivatives
Asset derivatives
Assets, Gross Amounts Recognized		131,328
Assets, Gross Amounts Offset in the Statement of Financial Position		0
Assets, Net Amounts Presented in the Statement of Financial Position		131,328
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Assets, Net Amount		131,328
Liability derivatives
Liabilities, Gross Amounts Recognized		131,328
Liabilities, Gross Amounts Offset in the Statement of Financial Position		0
Liabilities, Net Amounts Presented in the Statement of Financial Position		131,328
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		155,220
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		11,280
Liabilities, Net Amount		(35,172)
Risk participation-out agreements
Asset derivatives
Assets, Gross Amounts Recognized		1,843
Assets, Gross Amounts Offset in the Statement of Financial Position		0
Assets, Net Amounts Presented in the Statement of Financial Position		1,843
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Assets, Net Amount		1,843
Risk participation-in agreements
Liability derivatives
Liabilities, Gross Amounts Recognized		361
Liabilities, Gross Amounts Offset in the Statement of Financial Position		0
Liabilities, Net Amounts Presented in the Statement of Financial Position		361
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Liabilities, Net Amount		361
Foreign exchange contracts
Asset derivatives
Assets, Gross Amounts Recognized		156
Assets, Gross Amounts Offset in the Statement of Financial Position		0
Assets, Net Amounts Presented in the Statement of Financial Position		156
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Assets, Net Amount		156
Liability derivatives
Liabilities, Gross Amounts Recognized		148
Liabilities, Gross Amounts Offset in the Statement of Financial Position		0
Liabilities, Net Amounts Presented in the Statement of Financial Position		148
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged		0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged		0
Liabilities, Net Amount		$ 148
Designated as hedging instrument | Interest rate derivatives
Asset derivatives
Assets, Gross Amounts Recognized	12
Assets, Gross Amounts Offset in the Statement of Financial Position	0
Assets, Net Amounts Presented in the Statement of Financial Position	12
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Assets, Net Amount	12
Liability derivatives
Liabilities, Gross Amounts Recognized	0
Liabilities, Gross Amounts Offset in the Statement of Financial Position	0
Liabilities, Net Amounts Presented in the Statement of Financial Position	0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Liabilities, Net Amount	0
Derivatives not designed as hedging instruments | Loan level derivatives
Asset derivatives
Assets, Gross Amounts Recognized	89,726
Assets, Gross Amounts Offset in the Statement of Financial Position	0
Assets, Net Amounts Presented in the Statement of Financial Position	89,726
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Assets, Net Amount	89,726
Liability derivatives
Liabilities, Gross Amounts Recognized	89,726
Liabilities, Gross Amounts Offset in the Statement of Financial Position	0
Liabilities, Net Amounts Presented in the Statement of Financial Position	89,726
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	135,300
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	11,280
Liabilities, Net Amount	(56,854)
Derivatives not designed as hedging instruments | Risk participation-out agreements
Asset derivatives
Assets, Gross Amounts Recognized	1,289
Assets, Gross Amounts Offset in the Statement of Financial Position	0
Assets, Net Amounts Presented in the Statement of Financial Position	1,289
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Assets, Net Amount	1,289
Derivatives not designed as hedging instruments | Risk participation-in agreements
Liability derivatives
Liabilities, Gross Amounts Recognized	232
Liabilities, Gross Amounts Offset in the Statement of Financial Position	0
Liabilities, Net Amounts Presented in the Statement of Financial Position	232
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Liabilities, Net Amount	232
Derivatives not designed as hedging instruments | Foreign exchange contracts
Asset derivatives
Assets, Gross Amounts Recognized	62
Assets, Gross Amounts Offset in the Statement of Financial Position	0
Assets, Net Amounts Presented in the Statement of Financial Position	62
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Assets, Net Amount	62
Liability derivatives
Liabilities, Gross Amounts Recognized	59
Liabilities, Gross Amounts Offset in the Statement of Financial Position	0
Liabilities, Net Amounts Presented in the Statement of Financial Position	59
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged	0
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged	0
Liabilities, Net Amount	$ 59

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Derivative and Hedging Activities - Schedule of Gain (Loss) of Derivatives (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives designated as hedges	$ 12
Derivatives designated as hedges		$ (6)
Gain in OCI on derivatives (effective portion), net of tax	11	(5)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$ 5	$ 0

XML

Stock Based Compensation (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) plan financial_institution shares	Jun. 30, 2020 USD ($) shares	Jun. 30, 2021 USD ($) plan financial_institution shares	Jun. 30, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans | plan	1		1
Shares issued upon satisfaction of required conditions of the Plans (in shares)	0	0	0	0
Share-based compensation expense | $	$ 0.6	$ 0.7	$ 1.1	$ 1.4
Performance-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of financial institutions comprising peer group | financial_institution	14		14
Vesting equally over three years | Time-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares in tranche			50.00%
Award vesting period			3 years
Vesting, first anniversary | Time-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			33.33%
Vesting, second anniversary | Time-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			33.33%
Vesting, third anniversary | Time-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			33.33%
Vesting after achievement of performance targets | Performance-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares in tranche			50.00%
Award vesting period			3 years
Stock Option And Incentive Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of authorized shares (in shares)	1,750,000		1,750,000

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Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income	$ 31,602	$ 19,571	$ 58,056	$ 2,295
Denominator:
Weighted average shares outstanding (in shares)	78,150,364	78,849,282	78,147,076	79,165,372
Effect of dilutive securities (in shares)	320,087	165,992	290,199	175,152
Adjusted weighted average shares outstanding (in shares)	78,470,451	79,015,274	78,437,275	79,340,524
Basic EPS (in dollars per share)	$ 0.40	$ 0.25	$ 0.74	$ 0.03
Diluted EPS (in dollars per share)	$ 0.40	$ 0.25	$ 0.74	$ 0.03

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Fair Value of Financial Instruments - Carrying and Fair Value of Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Assets:
Investment securities available-for-sale	$ 694,151	$ 745,822
Equity securities held-for-trading	0	526	$ 0
Derivatives	91,089	133,335
Liabilities:
Derivatives	$ 90,017	131,837
Changes in generic pricing of securities period one, considered for analyzing changes in prices obtained from pricing service	15 years
Changes in generic pricing of securities period two, considered for analyzing changes in prices obtained from pricing service	30 years
Recurring basis
Assets:
Equity securities held-for-trading		526
Recurring basis | Level 1
Assets:
Equity securities held-for-trading		0
Recurring basis | Level 2
Assets:
Equity securities held-for-trading		526
Recurring basis | Level 3
Assets:
Equity securities held-for-trading		0
Investment securities available for sale | Recurring basis
Assets:
Investment securities available-for-sale	$ 694,151	745,822
Investment securities available for sale | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
Investment securities available for sale | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	694,151	745,822
Investment securities available for sale | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
GSE debentures
Assets:
Investment securities available-for-sale	246,334	278,645
GSE debentures | Recurring basis
Assets:
Investment securities available-for-sale	246,334	278,645
GSE debentures | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
GSE debentures | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	246,334	278,645
GSE debentures | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
GSE CMOs
Assets:
Investment securities available-for-sale	35,944	46,028
GSE CMOs | Recurring basis
Assets:
Investment securities available-for-sale	35,944	46,028
GSE CMOs | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
GSE CMOs | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	35,944	46,028
GSE CMOs | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
GSE MBSs
Assets:
Investment securities available-for-sale	246,054	323,609
GSE MBSs | Recurring basis
Assets:
Investment securities available-for-sale	246,054	323,609
GSE MBSs | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
GSE MBSs | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	246,054	323,609
GSE MBSs | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
Corporate debt obligations
Assets:
Investment securities available-for-sale	23,108	23,467
Corporate debt obligations | Recurring basis
Assets:
Investment securities available-for-sale	23,108	23,467
Corporate debt obligations | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
Corporate debt obligations | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	23,108	23,467
Corporate debt obligations | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
U.S. Treasury bonds
Assets:
Investment securities available-for-sale	142,200	73,600
U.S. Treasury bonds | Recurring basis
Assets:
Investment securities available-for-sale	142,214	73,577
U.S. Treasury bonds | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
U.S. Treasury bonds | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	142,214	73,577
U.S. Treasury bonds | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
Foreign government obligations
Assets:
Investment securities available-for-sale	497	496
Foreign government obligations | Recurring basis
Assets:
Investment securities available-for-sale	497	496
Foreign government obligations | Recurring basis | Level 1
Assets:
Investment securities available-for-sale	0	0
Foreign government obligations | Recurring basis | Level 2
Assets:
Investment securities available-for-sale	497	496
Foreign government obligations | Recurring basis | Level 3
Assets:
Investment securities available-for-sale	0	0
Interest rate derivatives | Recurring basis
Assets:
Derivatives	12	8
Interest rate derivatives | Recurring basis | Level 1
Assets:
Derivatives	0	0
Interest rate derivatives | Recurring basis | Level 2
Assets:
Derivatives	12	8
Interest rate derivatives | Recurring basis | Level 3
Assets:
Derivatives	0	0
Loan level derivatives | Recurring basis
Assets:
Derivatives	89,726	131,328
Liabilities:
Derivatives	89,726	131,328
Loan level derivatives | Recurring basis | Level 1
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Loan level derivatives | Recurring basis | Level 2
Assets:
Derivatives	89,726	131,328
Liabilities:
Derivatives	89,726	131,328
Loan level derivatives | Recurring basis | Level 3
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Risk participation-out agreements | Recurring basis
Assets:
Derivatives	1,289	1,843
Risk participation-out agreements | Recurring basis | Level 1
Assets:
Derivatives	0	0
Risk participation-out agreements | Recurring basis | Level 2
Assets:
Derivatives	1,289	1,843
Risk participation-out agreements | Recurring basis | Level 3
Assets:
Derivatives	0	0
Risk participation-in agreements | Recurring basis
Liabilities:
Derivatives	232	361
Risk participation-in agreements | Recurring basis | Level 1
Liabilities:
Derivatives	0	0
Risk participation-in agreements | Recurring basis | Level 2
Liabilities:
Derivatives	232	361
Risk participation-in agreements | Recurring basis | Level 3
Liabilities:
Derivatives	0	0
Foreign exchange contracts | Recurring basis
Assets:
Derivatives	62	156
Liabilities:
Derivatives	59	148
Foreign exchange contracts | Recurring basis | Level 1
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Foreign exchange contracts | Recurring basis | Level 2
Assets:
Derivatives	62	156
Liabilities:
Derivatives	59	148
Foreign exchange contracts | Recurring basis | Level 3
Assets:
Derivatives	0	0
Liabilities:
Derivatives	$ 0	$ 0

XML

Fair Value of Financial Instruments - Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis (Details) - Nonrecurring basis - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	$ 2,390	$ 9,960
Level 1
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	0	0
Level 2
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	372	1,100
Level 3
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	2,018	8,860
Collateral-dependent impaired loans and leases
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	2,018	3,445
Collateral-dependent impaired loans and leases | Level 1
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	0	0
Collateral-dependent impaired loans and leases | Level 2
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	0	0
Collateral-dependent impaired loans and leases | Level 3
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	2,018	3,445
OREO
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis		5,415
OREO | Level 1
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis		0
OREO | Level 2
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis		0
OREO | Level 3
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis		5,415
Repossessed assets
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	372	1,100
Repossessed assets | Level 1
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	0	0
Repossessed assets | Level 2
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	372	1,100
Repossessed assets | Level 3
Fair value of assets and liabilities
Total assets measured at fair value on a non-recurring basis	$ 0	$ 0

XML

Fair Value of Financial Instruments - Quantitative Information for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Nonrecurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets	$ 2,390	$ 9,960
Level 3 | Discount for costs to sell | Minimum
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value inputs, basis spread	0.00%
Level 3 | Discount for costs to sell | Maximum
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value inputs, basis spread	10.00%
Level 3 | Appraisal Adjustments | Minimum
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value inputs, basis spread	0.00%
Level 3 | Appraisal Adjustments | Maximum
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value inputs, basis spread	15.00%
Level 3 | Nonrecurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets	$ 2,018	8,860
Collateral-dependent impaired loans and leases | Level 3 | Nonrecurring basis | Appraisal of collateral
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets	2,018	3,445
Other real estate owned | Nonrecurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets		5,415
Other real estate owned | Level 3 | Nonrecurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets		5,415
Other real estate owned | Level 3 | Recurring basis | Appraisal of collateral
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value of assets	$ 0	$ 5,415

XML

Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financial assets:
Restricted equity securities	$ 31,627	$ 49,786
Financial liabilities:
Borrowed funds	75,039	87,652
Level 1
Financial assets:
Loans and leases, net	0	0
Restricted equity securities	0	0
Financial liabilities:
Certificates of deposits	0	0
Borrowed funds	0	0
Level 2
Financial assets:
Loans and leases, net	0	0
Restricted equity securities	0	0
Financial liabilities:
Certificates of deposits	1,445,015	2,092,867
Borrowed funds	358,056	818,681
Level 3
Financial assets:
Loans and leases, net	6,894,100	7,116,854
Restricted equity securities	31,627	49,786
Financial liabilities:
Certificates of deposits	0	0
Borrowed funds	0	0
Carrying Value
Financial assets:
Loans and leases, net	6,913,801	7,155,174
Restricted equity securities	31,627	49,786
Financial liabilities:
Certificates of deposits	1,439,257	2,083,907
Borrowed funds	363,014	820,247
Estimated Fair Value
Financial assets:
Loans and leases, net	6,894,100	7,116,854
Restricted equity securities	31,627	49,786
Financial liabilities:
Certificates of deposits	1,445,015	2,092,867
Borrowed funds	$ 358,056	$ 818,681

XML

Commitments and Contingencies - Financial Instrument with Off-balance-sheet Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loan commitments
Unadvanced portion of loans and leases	$ 883,648	$ 759,053
Unused lines of credit:
Home equity	602,307	584,881
Other consumer	39,457	38,954
Other commercial	408	408
Unused letters of credit:
Financial standby letters of credit	15,437	14,746
Performance standby letters of credit	12,261	5,903
Commercial and similar letters of credit	5,369	5,105
Receive fixed, pay variable
Unused letters of credit:
Derivatives	1,186,507	1,214,146
Pay fixed, receive variable
Unused letters of credit:
Derivatives	1,186,507	1,214,146
Risk participation-out agreements
Unused letters of credit:
Derivatives	262,985	252,655
Risk participation-in agreements
Unused letters of credit:
Derivatives	59,961	60,619
Foreign exchange contracts | Buys foreign currency, sells U.S. currency
Unused letters of credit:
Derivatives	1,360	1,266
Foreign exchange contracts | Sells foreign currency, buys U.S. currency
Unused letters of credit:
Derivatives	1,362	1,273
Commercial real estate
Loan commitments
Commitments to originate loans and leases	118,828	174,240
Commercial
Loan commitments
Commitments to originate loans and leases	126,158	80,291
Residential mortgage
Loan commitments
Commitments to originate loans and leases	$ 39,720	$ 30,418

XML

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lessee, Lease, Description [Line Items]
Real estate taxes			$ 1.0	$ 0.9
Other expenditures			0.2	0.2
Total operating rental expense	$ 1.5	$ 1.6	$ 3.0	$ 3.1
Minimum
Lessee, Lease, Description [Line Items]
Lease term	3 years		3 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term	25 years		25 years

XML

Commitments and Contingencies - Lease Costs, Cash Flows and Balance Sheet Supplemental Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 3,119	$ 3,233
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	3,179	$ 3,302
Supplemental balance sheet information related to leases was as follows:
Operating lease right-of-use assets	22,682		$ 24,143
Operating lease liabilities	$ 22,682		$ 24,143
Weighted Average Remaining Lease Term
Operating leases	6 years 7 months 28 days		6 years 11 months 12 days
Weighted Average Discount Rate
Operating leases	3.10%		3.20%

XML

Commitments and Contingencies - Maturities of Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Operating Leases, After Adoption of 842
Remainder of 2021	$ 2,950
2022	5,763
2023	4,935
2024	3,581
2025	2,470
2026	1,697
Thereafter	3,656
Total	25,052
Less imputed interest	(2,370)
Present value of lease liability	$ 22,682	$ 24,143

XML

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]