
	As of March 31,		As of December 31,
	2021		2020
	(In thousands)
Commercial and industrial	$	1,986,366	$	1,995,016
Commercial real estate	3,676,941		3,573,630
Commercial construction	249,416		305,708
Business banking	1,513,051		1,339,164
Residential real estate	1,406,510		1,370,957
Consumer home equity	832,466		868,270
Other consumer	251,725		277,780
Gross loans before unamortized premiums, unearned discounts and deferred fees	9,916,475		9,730,525
Allowance for credit losses	(111,080)		(113,031)
Unamortized premiums, net of unearned discounts and deferred fees	(32,673)		(23,536)
Loans after the allowance for credit losses, unamortized premiums, unearned discounts and deferred fees	$	9,772,722	$	9,593,958

The Company’s lending activities are conducted principally in the New England area with the exception of its Shared National Credit Program (“SNC Program”) portfolio. The Company participates in the SNC Program in an effort to improve its industry and geographical diversification. The SNC Program portfolio is included in the Company’s commercial and industrial, commercial real estate and commercial construction portfolios. The SNC Program portfolio is defined as loan syndications with exposure over $100 million and with three or more lenders participating.

Most loans originated by the Company are either collateralized by real estate or other assets or guaranteed by federal and local governmental authorities. The ability and willingness of the single-family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the borrowers’ geographic areas and real estate values. The ability and willingness of commercial real estate, commercial and industrial, and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate economy in the borrowers’ geographic areas and the general economy.

The carrying value of loans pledged to secure advances from the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”) were $2.4 billion at both March 31, 2021 and December 31, 2020. The balance of funds borrowed from the FHLBB were $14.5 million and $14.6 million at March 31, 2021 and December 31, 2020, respectively.

The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $832.4 million and $884.1 million at March 31, 2021 and December 31, 2020, respectively. There were no funds borrowed from the FRB outstanding at March 31, 2021 and December 31, 2020.

The allowance for loan losses is established to provide for probable losses incurred in the Company’s loan portfolio at the balance sheet date and is established through a provision for loan losses charged to net income. Charge-offs, net of recoveries, are charged directly to the allowance. Commercial and residential loans are charged-off in the period in which they are deemed uncollectible. Delinquent loans in these product types are subject to ongoing review and analysis to determine if a charge-off in the current period is appropriate. For consumer loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type.


	For the Three Months Ended March 31, 2021
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Residential Real Estate		Consumer Home Equity		Other Consumer		Other		Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	26,617	$	54,569	$	4,553	$	13,152	$	6,435	$	3,744	$	3,467	$	494	$	113,031
Charge-offs	—		(234)		—		(1,384)		—		—		(364)		—		(1,982)
Recoveries	9		—		—		365		10		71		156		—		611
(Release of) provision	(1,220)		803		(1,203)		1,371		(210)		(239)		239		(121)		(580)
Ending balance	$	25,406	$	55,138	$	3,350	$	13,504	$	6,235	$	3,576	$	3,498	$	373	$	111,080
Ending balance: individually evaluated for impairment	$	4,761	$	210	$	—	$	1,387	$	1,516	$	263	$	—	$	—	$	8,137
Ending balance: acquired with deteriorated credit quality	$	1,283	$	822	$	—	$	—	$	327	$	—	$	—	$	—	$	2,432
Ending balance: collectively evaluated for impairment	$	19,362	$	54,106	$	3,350	$	12,117	$	4,392	$	3,313	$	3,498	$	373	$	100,511
Loans ending balance:
Individually evaluated for impairment	$	17,907	$	4,536	$	—	$	21,001	$	26,459	$	4,461	$	26	$	—	$	74,390
Acquired with deteriorated credit quality	2,944		1,554		—		—		3,119		—		—		—		7,617
Collectively evaluated for impairment	1,965,515		3,670,851		249,416		1,492,050		1,376,932		828,005		251,699		—		9,834,468
Total loans by group	$	1,986,366	$	3,676,941	$	249,416	$	1,513,051	$	1,406,510	$	832,466	$	251,725	$	—	$	9,916,475


	For the Three Months Ended March 31, 2020
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Residential Real Estate		Consumer Home Equity		Other Consumer		Other		Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	20,919	$	34,730	$	3,424	$	8,260	$	6,380	$	4,027	$	4,173	$	384	$	82,297
Charge-offs	—		—		—		(1,337)		—		(473)		(533)		—		(2,343)
Recoveries	322		1		—		127		60		14		60		—		584
Provision (release of)	9,290		14,496		1,288		3,131		(212)		345		319		(57)		28,600
Ending balance	$	30,531	$	49,227	$	4,712	$	10,181	$	6,228	$	3,913	$	4,019	$	327	$	109,138
Ending balance: individually evaluated for impairment	$	4,037	$	270	$	—	$	453	$	1,275	$	221	$	—	$	—	$	6,256
Ending balance: acquired with deteriorated credit quality	$	—	$	936	$	—	$	—	$	256	$	—	$	—	$	—	$	1,192
Ending balance: collectively evaluated for impairment	$	26,494	$	48,021	$	4,712	$	9,728	$	4,697	$	3,692	$	4,019	$	327	$	101,690
Loans ending balance:
Individually evaluated for impairment	$	32,423	$	8,054	$	—	$	10,258	$	29,393	$	6,280	$	23	$	—	$	86,431
Acquired with deteriorated credit quality	3,939		5,780		—		—		3,424		—		—		—		13,143
Collectively evaluated for impairment	1,734,760		3,509,887		293,135		769,658		1,387,186		923,274		369,629		—		8,987,529
Total loans by group	$	1,771,122	$	3,523,721	$	293,135	$	779,916	$	1,420,003	$	929,554	$	369,652	$	—	$	9,087,103

Management uses a methodology to systematically estimate the amount of loss incurred in the portfolio. Commercial real estate, commercial and industrial, commercial construction and business banking loans are evaluated using a loan rating system, historical losses and other factors which form the basis for estimating incurred losses. Portfolios of more homogeneous populations of loans, including residential mortgages and consumer loans, are analyzed as groups taking into account delinquency ratios, historical loss experience and charge-offs. For the purpose of estimating the allowance for loan losses, management segregates the loan portfolio into the categories noted in the above tables. Each of these loan categories possesses unique risk characteristics such as the purpose of the loan, repayment source, and collateral. These characteristics are considered when determining the appropriate level of the allowance for each category. Some examples of these risk characteristics unique to each loan category include:

Commercial and industrial: The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Collateral frequently consists of a first lien position on business assets including, but not limited to accounts receivable, inventory, airplanes and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity.

Commercial real estate: Collateral values are established by independent third-party appraisals and evaluations. Primary repayment sources include operating income generated by the real estate, permanent debt refinancing, sale of the real estate and, secondarily, liquidation of the collateral. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity.

Commercial construction: These loans are generally considered to present a higher degree of risk than other real estate loans and may be affected by a variety of factors, such as adverse changes in interest rates and the borrower’s ability to control costs and adhere to time schedules. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. Construction loan repayment is substantially dependent on the ability of the borrower to complete the project and obtain permanent financing.

Business banking: These loans are typically secured by all business assets or commercial real estate. Business banking originations include traditionally underwritten loans as well as partially automated scored loans. Business banking scored loans are determined by utilizing the Company’s proprietary decision matrix that has a number of quantitative factors including, but not limited to, a guarantor’s credit score, industry risk, and time in business. The Company also engages in Small Business Association (“SBA”) lending, both in the business banking and commercial banking divisions. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure.

Residential real estate: These loans are made to borrowers who demonstrate the ability to repay principal and interest on a monthly basis. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources (including cash reserves) and the value of the collateral. The Company maintains policy standards for minimum credit score and cash reserves and maximum loan to value consistent with a “prime” portfolio. Collateral consists of mortgage liens on 1-4 family residential dwellings. The Company does not originate or purchase sub-prime or other high-risk loans. Residential loans are originated either for sale to investors or retained in the Company’s loan portfolio. Decisions about whether to sell or retain residential loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and the Company’s capital needs.

Consumer home equity: Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity loans are term loans that require the monthly payment of principal and interest such that the loan will be fully amortized at maturity. Underwriting considerations are materially consistent with those utilized in residential real estate. Collateral consists of a senior or subordinate lien on owner-occupied residential property.

Other consumer: The Company’s policy and underwriting in this category, which is comprised primarily of airplane and automobile loans, include the following factors, among others: income sources and reliability, credit histories, term of repayment, and collateral value, as applicable. These are typically granted on an unsecured basis, with the exception of airplane and automobile loans.

Prior to December 31, 2020, the Company utilized a 12-point credit risk-rating system to manage risk and identify potential problem loans. In the fourth quarter of 2020, the Company realigned its credit risk-rating system, transitioning to a 15-point credit risk-rating system. The Company believes the expansion from the prior 12-point scale provides more refinement in the pass grade categories; new pass grades are 0-10. There are no changes to non-pass categories, which continue to align with regulatory guidelines and are found in ratings: special mention (11), substandard (12), doubtful (13) and loss (14). The Company believes that increasing granularity of the risk rating system allows for more robust portfolio management and increased precision and effectiveness of credit risk identification.

Under both point systems, risk-rating assignments are based upon a number of quantitative and qualitative factors that are under continual review. Factors include cash flow, collateral coverage, liquidity, leverage, position within the industry, internal controls and management, financial reporting, and other considerations. The risk-rating categories under the new 15-point credit risk-rating system are defined as follows:

Certain segments of the portfolios are not rated. These segments include airplane loans, business banking scored loan products, and other commercial loans managed by exception. Loans within this unrated loan segment are monitored by delinquency status; and for lines of credit greater than $100,000 in exposure, an annual review is conducted. The Company supplements performance data with current business credit scores for the business banking portfolio on a quarterly basis. Unrated commercial and business banking loans are generally restricted to commercial exposure less than $1 million. Loans included in this category have qualification requirements that include risk rating of 10 or better at time of recommendation for unrated status, acceptable management of deposit accounts, and no known negative changes in management, operations or financial performance.

Loans with a risk rating of 1-10 are classified as “Pass” and are comprised of loans that range from “substantially risk free” which indicates borrowers of unquestioned credit standing, well-established national companies with a very strong financial condition, and loans fully secured by policy conforming cash levels, through “low pass” which indicates acceptable rated loans that may be experiencing weak cash flow, impending lease rollover or minor liquidity concerns.

Loans to borrowers in this category exhibit potential weaknesses or downward trends deserving management’s close attention. While potentially weak, no loss of principal or interest is envisioned. Included in this category are borrowers who are performing as agreed, are weak when compared to industry standards, may be experiencing an interim loss and may be in declining industries. An element of asset quality, financial flexibility or management is below average. The Company does not consider borrowers within this category as new business prospects. Borrowers rated special mention may find it difficult to obtain alternative financing from traditional bank sources.

Loans with a risk-rating of 12 exhibit well-defined weaknesses that, if not corrected, may jeopardize the orderly liquidation of the debt. A loan is classified as substandard if it is inadequately protected by the repayment capacity of the obligor or by the collateral pledged. Specifically, repayment under market rates and terms, or by the requirements under the existing loan documents, is in jeopardy, but no loss of principal or interest is envisioned. There is a possibility that a partial loss of principal and/or interest will occur in the future if the deficiencies are not corrected. Loss potential, while existing in the aggregate portfolio of substandard assets does not have to exist in individual assets classified as substandard. Non-accrual is possible, but not mandatory, in this class.

Loans classified as doubtful have comparable weaknesses as found in the loans classified as substandard, with the added provision that such weaknesses make collection of the debt in full (based on currently existing facts, conditions and values) highly questionable and improbable. Serious problems exist such that a partial loss of principal is likely. The probability of loss exists, however, because of reasonable specific pending factors that may work to strengthen the credit, estimated losses are deferred until a more exact status can be determined. Specific reserves will be the amount identified after specific review. Non-accrual is mandatory in this class.

Loans to borrowers in this category are deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loans have no recovery or salvage value, but rather, it is not practical or desirable to defer writing off these assets even though partial recovery may occur in the future. Loans in this category have a recorded investment of $0 at the time of the downgrade.

The credit quality of the commercial loan portfolio is actively monitored and supported by a comprehensive credit approval process; and all large dollar transactions are sent for approval to a committee of seasoned business line and credit professionals. Risk ratings are periodically reviewed and the Company maintains an independent credit risk review function that reports directly to the Risk Management Committee of the Board of Directors. Credits that demonstrate significant deterioration in credit quality are transferred to a specialized group of experienced officers for individual attention.


	As of March 31, 2021
Category	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Total
	(In thousands)
Unrated	$	684,938	$	6,318	$	—	$	1,079,605	$	1,770,861
Pass	1,171,994		3,353,758		232,981		347,867		5,106,600
Special mention	68,826		127,751		10,345		57,387		264,309
Substandard	45,573		186,707		6,090		26,492		264,862
Doubtful	15,035		2,407		—		1,700		19,142
Loss	—		—		—		—		—
Total	$	1,986,366	$	3,676,941	$	249,416	$	1,513,051	$	7,425,774


	As of December 31, 2020
Category	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Total
	(In thousands)
Unrated	$	655,346	$	6,585	$	—	$	918,921	$	1,580,852
Pass	1,199,522		3,256,697		280,792		336,657		5,073,668
Special mention	78,117		134,562		10,330		57,092		280,101
Substandard	47,525		173,308		14,586		24,788		260,207
Doubtful	14,506		2,478		—		1,706		18,690
Loss	—		—		—		—		—
Total	$	1,995,016	$	3,573,630	$	305,708	$	1,339,164	$	7,213,518

Paycheck Protection Program (“PPP”) loans are included within the unrated category of the commercial and industrial and business banking portfolios in the tables above. Commercial and industrial PPP and business banking PPP loans amounted to $609.9 million and $628.2 million, respectively, at March 31, 2021, and $568.8 million and $457.4 million, respectively, at December 31, 2020. The Company does not have an allowance for loan losses for PPP loans as they are 100% guaranteed by the SBA.

For the Company’s residential and consumer portfolios, the quality of the loan is best indicated by the repayment performance of an individual borrower. Updated appraisals, broker opinions of value and other collateral valuation methods are employed in the residential and consumer portfolios, typically for credits that are deteriorating. Delinquency status is determined using payment performance, while accrual status may be determined using a combination of payment performance, expected borrower viability and collateral value. Delinquent consumer loans are handled by a team of seasoned collection specialists.

In response to the novel coronavirus (“COVID-19”) pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the COVID-19 pandemic. Modifications granted to customers allowed for full payment deferrals (principal and interest) or deferral of only principal payments. The balance of loans which underwent a modification and have not yet resumed payment as of March 31, 2021 and December 31, 2020 was $178.4 million and $332.7 million, respectively. The Company defines a modified loan to have resumed payment if it is one month past the modification end date and not more than 30 days past due. These modifications with active deferrals met the criteria of either Section 4013 of the CARES Act or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) and therefore are not deemed TDRs (as defined herein). Additionally, loans that are performing in accordance with the contractual terms of the modification are not reflected as being past due and therefore are not impacting non-accrual or delinquency totals as of March 31, 2021 and December 31, 2020. The Company continued to accrue interest on these COVID-19 modified loans and evaluated the deferred interest for collectability as of March 31, 2021 and December 31, 2020.

The Company manages its loan portfolio with careful monitoring. As a general rule, loans more than 90 days past due with respect to principal and interest are classified as non-accrual loans. Exceptions may be made if management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest, or the loan is accounted for as a purchased credit impaired (“PCI”) loan. Therefore, as permitted by banking regulations, certain consumer loans past due 90 days or more may continue to accrue interest. The Company may also use discretion regarding other loans over 90 days delinquent if the loan is well secured and in the process of collection. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered non-performing loans.

Non-accrual loans may be returned to an accrual status when principal and interest payments are no longer delinquent, and the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectability of principal and interest. Loans are considered past due based upon the number of days delinquent according to their contractual terms. Specifically, non-accrual residential loans that have been restructured must perform for a period of six months before being considered for accrual status.


	As of March 31,		As of December 31,
	2021		2020
	(In Thousands)
Commercial and industrial	$	12,266	$	11,714
Commercial real estate	1,016		915
Business banking	16,993		17,430
Residential real estate	8,127		6,815
Consumer home equity	3,524		3,602
Other consumer	349		529
Total non-accrual loans	$	42,275	$	41,005


	As of March 31, 2021
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
	(In thousands)
Commercial and industrial	$	9,460	$	3	$	1,174	$	10,637	$	1,975,729	$	1,986,366	$	252
Commercial real estate	3,225		—		1,403		4,628		3,672,313		3,676,941		1,138
Commercial construction	—		—		—		—		249,416		249,416		—
Business banking	13,299		1,404		8,513		23,216		1,489,835		1,513,051		—
Residential real estate	5,738		857		6,271		12,866		1,393,644		1,406,510		280
Consumer home equity	1,416		496		3,006		4,918		827,548		832,466		9
Other consumer	975		419		349		1,743		249,982		251,725		—
Total	$	34,113	$	3,179	$	20,716	$	58,008	$	9,858,467	$	9,916,475	$	1,679


	As of December 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment >90 Days and Accruing
	(In thousands)
Commercial and industrial	$	4	$	268	$	1,924	$	2,196	$	1,992,820	$	1,995,016	$	848
Commercial real estate	—		556		1,545		2,101		3,571,529		3,573,630		1,111
Commercial Construction	—		—		—		—		305,708		305,708		—
Business banking	5,279		3,311		10,196		18,786		1,320,378		1,339,164		—
Residential real estate	9,184		2,517		4,904		16,605		1,354,352		1,370,957		279
Consumer home equity	1,806		364		3,035		5,205		863,065		868,270		9
Other consumer	1,978		234		517		2,729		275,051		277,780		—
Total	$	18,251	$	7,250	$	22,121	$	47,622	$	9,682,903	$	9,730,525	$	2,247

In the normal course of business, the Company may become aware of possible credit problems in which borrowers exhibit potential for the inability to comply with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as non-performing loans. However, based upon the Company’s past experiences, some of these loans with potential weaknesses will ultimately be restructured or placed in non-accrual status.

In cases where a borrower experiences financial difficulty and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructured loan. The objective is to aid in the resolution of non-performing loans by modifying the contractual obligation to avoid the possibility of foreclosure.

All TDR loans are considered impaired and therefore are subject to a specific review for impairment loss. The amount of impairment loss, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans and residential loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell.

The Company’s policy is to have any TDR loans which are on non-accrual status prior to being modified remain on non-accrual status for approximately six months subsequent to being modified before management considers its return to accrual status. If the TDR loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status.


	As of March 31, 2021
	TDRs on Accrual Status			TDRs on Nonaccrual Status			Total TDRs
	Number of Loans	Balance of Loans		Number of Loans	Balance of Loans		Number of Loans	Balance of Loans
	(Dollars in thousands)
Commercial and industrial	1	$	5,641	6	$	7,583	7	$	13,224
Commercial real estate	1	3,520		1	468		2	3,988
Business banking	5	4,008		6	1,075		11	5,083
Residential real estate	140	22,565		30	3,557		170	26,122
Consumer home equity	79	3,607		14	854		93	4,461
Other consumer	3	26		—	—		3	26
Total	229	$	39,367	57	$	13,537	286	$	52,904


	As of December 31, 2020
	TDRs on Accrual Status			TDRs on Nonaccrual Status			Total TDRs
	Number of Loans	Balance of Loans		Number of Loans	Balance of Loans		Loans	Balance of Loans
	(Dollars in thousands)
Commercial and industrial	1	$	5,628	7	$	6,819	8	$	12,447
Commercial real estate	1	3,521		1	480		2	4,001

Business banking	6	4,471		6	722		12	5,193
Residential real estate	146	23,416		27	3,273		173	26,689
Consumer home equity	91	4,030		12	815		103	4,845
Other consumer	3	29		—	—		3	29
Total	248	$	41,095	53	$	12,109	301	$	53,204

The amount of specific reserves associated with the TDRs was $4.1 million and $3.5 million at March 31, 2021 and December 31, 2020, respectively. There were no additional commitments to lend to borrowers who have been a party to a TDR as of both March 31, 2021 and December 31, 2020.


	For the Three Months Ended March 31, 2021					For the Three Months Ended March 31, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)



Business banking	—	$	—	$	—	1	$	244	$	244
Residential real estate	1	295		295		8	414		419
Consumer home equity	—	—		—		1	24		24

Total	1	$	295	$	295	10	$	682	$	687


	For the Three Months Ended March 31,
	2021			2020
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted (1):
Commercial and industrial	—	$	—	2	$	4,613

Business banking	1	419		—	—

Consumer home equity	1	59		1	1,335
Total	2	$	478	3	$	5,948

Impaired loans consist of all loans for which management has determined it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreements. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.

The Company measures impairment of loans using a discounted cash flow method, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. The Company has defined the population of impaired loans to include certain non-accrual loans, TDR loans, and residential and home equity loans that have been partially charged off.


	As of March 31, 2021						As of December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	10,071	$	11,312	$	—	$	9,182	$	11,212	$	—
Commercial real estate	4,068		4,113		—		3,955		3,974		—

Business banking	4,961		7,260		—		5,250		7,659		—
Residential real estate	14,408		16,714		—		14,730		17,010		—
Consumer home equity	2,370		2,370		—		2,571		2,571		—
Other consumer	26		26		—		29		29		—
Sub-total	35,904		41,795		—		35,717		42,455		—
With an allowance recorded:
Commercial and industrial	7,836		8,147		4,761		8,161		8,432		4,555
Commercial real estate	468		489		210		480		497		210

Business banking	16,040		20,925		1,387		16,651		21,146		1,435
Residential real estate	12,051		12,051		1,516		12,326		12,326		1,565
Consumer home equity	2,091		2,091		263		2,274		2,274		289
Sub-total	38,486		43,703		8,137		39,892		44,675		8,054
Total	$	74,390	$	85,498	$	8,137	$	75,609	$	87,130	$	8,054


	For the Three Months Ended March 31,
	2021				2020
	Average Recorded Investment		Total Interest Recognized		Average Recorded Investment		Total Interest Recognized
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	9,899	$	46	$	20,880	$	70
Commercial real estate	4,176		44		7,491		44
Business banking	5,024		26		2,286		17
Residential real estate	14,648		144		14,801		173
Consumer home equity	2,438		20		3,606		40
Other consumer	27		—		23		—
Sub-total	36,212		280		49,087		344
With an allowance recorded:
Commercial and industrial	7,965		—		11,730		—
Commercial real estate	657		—		348		—
Business banking	16,325		14		8,782		15
Residential real estate	12,248		127		11,727		137
Consumer home equity	2,150		18		2,857		31
Sub-total	39,345		159		35,444		183
Total	$	75,557	$	439	$	84,531	$	527

The excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans using the effective yield method. The following table summarizes activity in the accretable yield for the PCI loan portfolio:

The estimate of cash flows expected to be collected is regularly re-assessed subsequent to acquisition. A decrease in expected cash flows in subsequent periods may indicate that the loan is impaired which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the non-accretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans.

The Company occasionally purchases commercial loan participations, or participates in syndications through the SNC Program. These participations meet the same underwriting, credit and portfolio management standards as the Company’s other loans and are applied against the same criteria to determine the allowance for loan losses as other loans. As of March 31, 2021 and December 31, 2020, the Company held commercial loan participation interests totaling $1.0 billion and $1.0 billion, respectively.


	As of and for the three months ended March 31, 2021								As of and for the year ended December 31, 2020
	Balance		Nonperforming Loan Rate (%)		Impaired (%)		Gross Charge-offs		Balance		Nonperforming Loan Rate (%)		Impaired (%)		Gross Charge-offs
	(Dollars in thousands)
Commercial and industrial	$	579,812	1.31	%	1.31	%	$	—	$	598,873	1.11	%	1.11	%	$	—
Commercial real estate	345,261		0.00	%	0.00	%	—		306,202		0.00	%	0.00	%	—
Commercial construction	86,447		0.00	%	0.00	%	—		119,600		0.00	%	0.00	%	—
Business banking	31		0.00	%	0.00	%	—		34		0.00	%	0.00	%	—
Total loan participations	$	1,011,551	0.75	%	0.75	%	$	—	$	1,024,709	0.65	%	0.65	%	$	—