
	As of December 31,
	2021		2020
	(In thousands)
Commercial and industrial	$	2,960,527	$	1,995,016
Commercial real estate	4,522,513		3,573,630
Commercial construction	222,328		305,708
Business banking	1,334,694		1,339,164
Residential real estate	1,926,810		1,370,957
Consumer home equity	1,100,153		868,270
Other consumer (1)	214,485		277,780
Gross loans before unamortized premiums, unearned discounts and deferred fees	12,281,510		9,730,525
Allowance for loan losses	(97,787)		(113,031)
Unamortized premiums, net of unearned discounts and deferred fees	(26,442)		(23,536)
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees	$	12,157,281	$	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 portfolio. 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.

At December 31, 2021 and 2020, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $95.8 million and $13.5 million, respectively. The increase in serviced loans at December 31, 2021 compared to December 31, 2020 is primarily attributable to our acquisition of Century. Accordingly, we acquired mortgage servicing rights (“MSRs”) which amounted to $0.6 million at December 31, 2021. MSRs are included in other assets on the consolidated balance sheets.

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 Year Ended December 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	(1,558)		(247)		—		(5,091)		(35)		(24)		(2,047)		—		(9,002)
Recoveries	935		4		—		1,524		122		185		674		—		3,444
(Release of) provision	(7,976)		(1,953)		(1,968)		1,398		34		(183)		1,214		(252)		(9,686)
Ending balance	$	18,018	$	52,373	$	2,585	$	10,983	$	6,556	$	3,722	$	3,308	$	242	$	97,787
Ending balance: individually evaluated for impairment	$	1,540	$	—	$	—	$	450	$	1,549	$	270	$	161	$	—	$	3,970
Ending balance: acquired with deteriorated credit quality	$	5	$	298	$	—	$	—	$	243	$	—	$	—	$	—	$	546
Ending balance: collectively evaluated for impairment	$	16,473	$	52,075	$	2,585	$	10,533	$	4,764	$	3,452	$	3,147	$	242	$	93,271
Loans ending balance:
Individually evaluated for impairment	$	16,145	$	3,520	$	—	$	12,060	$	22,378	$	3,922	$	179	$	—	$	58,204
Acquired with deteriorated credit quality	19,028		47,553		—		—		3,058		—		—		—		69,639
Collectively evaluated for impairment	2,925,354		4,471,440		222,328		1,322,634		1,901,374		1,096,231		214,306		—		12,153,667
Total loans by group	$	2,960,527	$	4,522,513	$	222,328	$	1,334,694	$	1,926,810	$	1,100,153	$	214,485	$	—	$	12,281,510


	For the Year Ended December 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	(1,770)		(24)		—		(5,147)		—		(574)		(2,338)		—		(9,853)
Recoveries	778		230		—		292		125		153		209		—		1,787
Provision (release of)	6,690		19,633		1,129		9,747		(70)		138		1,423		110		38,800
Ending balance	$	26,617	$	54,569	$	4,553	$	13,152	$	6,435	$	3,744	$	3,467	$	494	$	113,031
Ending balance: individually evaluated for impairment	$	4,555	$	210	$	—	$	1,435	$	1,565	$	289	$	—	$	—	$	8,054
Ending balance: acquired with deteriorated credit quality	$	1,283	$	822	$	—	$	—	$	327	$	—	$	—	$	—	$	2,432
Ending balance: collectively evaluated for impairment	$	20,779	$	53,537	$	4,553	$	11,717	$	4,543	$	3,455	$	3,467	$	494	$	102,545
Loans ending balance:
Individually evaluated for impairment	$	17,343	$	4,435	$	—	$	21,901	$	27,056	$	4,845	$	29	$	—	$	75,609
Acquired with deteriorated credit quality	3,432		2,749		—		—		3,116		—		—		—		9,297
Collectively evaluated for impairment	1,974,241		3,566,446		305,708		1,317,263		1,340,785		863,425		277,751		—		9,645,619
Total loans by group	$	1,995,016	$	3,573,630	$	305,708	$	1,339,164	$	1,370,957	$	868,270	$	277,780	$	—	$	9,730,525


	For the Year Ended December 31, 2019
	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	$	19,321	$	32,400	$	4,606	$	8,167	$	7,059	$	4,113	$	4,600	$	389	$	80,655
Charge-offs	(1,123)		—		—		(5,974)		(66)		(205)		(2,131)		—		(9,499)
Recoveries	3,748		12		—		604		105		52		320		—		4,841
Provision (release of)	(1,027)		2,318		(1,182)		5,463		(718)		67		1,384		(5)		6,300
Ending balance	$	20,919	$	34,730	$	3,424	$	8,260	$	6,380	$	4,027	$	4,173	$	384	$	82,297
Ending balance: individually evaluated for impairment	$	2,337	$	40	$	—	$	571	$	1,399	$	322	$	—	$	—	$	4,669
Ending balance: acquired with deteriorated credit quality	$	936	$	—	$	—	$	—	$	256	$	—	$	—	$	—	$	1,192
Ending balance: collectively evaluated for impairment	$	17,646	$	34,690	$	3,424	$	7,689	$	4,725	$	3,705	$	4,173	$	384	$	76,436
Loans ending balance:
Individually evaluated for impairment	$	32,370	$	7,641	$	—	$	11,658	$	29,532	$	6,555	$	—	$	—	$	87,756
Acquired with deteriorated credit quality	3,571		6,459		—		—		3,421		—		—		—		13,451
Collectively evaluated for impairment	1,606,243		3,521,341		273,774		759,840		1,395,677		926,533		402,431		—		8,885,839
Total loans by group	$	1,642,184	$	3,535,441	$	273,774	$	771,498	$	1,428,630	$	933,088	$	402,431	$	—	$	8,987,046

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 home improvement 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.

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

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 December 31, 2021
Category	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Total
	(In thousands)
Unrated	$	171,537	$	4,378	$	—	$	696,629	$	872,544
Pass	2,656,873		4,199,803		213,744		569,956		7,640,376
Special mention	70,141		104,517		1,889		50,085		226,632
Substandard	50,339		213,815		6,695		17,814		288,663
Doubtful	11,637		—		—		210		11,847
Loss	—		—		—		—		—
Total	$	2,960,527	$	4,522,513	$	222,328	$	1,334,694	$	9,040,062


	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 table above. Commercial and industrial PPP and business banking PPP loans amounted to $112.8 million and $218.6 million, respectively, at December 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.

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 PCI loan. In addition, 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.


	As of December 31,
	2021		2020
	(In thousands)
Commercial and industrial	$	12,400	$	11,714
Commercial real estate	—		915
Commercial construction	—		—
Business banking	8,230		17,430
Residential real estate	6,681		6,815
Consumer home equity	4,732		3,602
Other consumer	950		529
Total non-accrual loans	$	32,993	$	41,005


	As of December 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	$	45	$	31	$	1,672	$	1,748	$	2,958,779	$	2,960,527	$	—
Commercial real estate	25,931		—		1,196		27,127		4,495,386		4,522,513		1,196
Commercial construction	—		—		—		—		222,328		222,328		—
Business banking	5,043		1,793		4,640		11,476		1,323,218		1,334,694		—
Residential real estate	17,523		3,511		5,543		26,577		1,900,233		1,926,810		769
Consumer home equity	3,774		1,510		4,571		9,855		1,090,298		1,100,153		25
Other consumer	1,194		548		889		2,631		211,854		214,485		—
Total	$	53,510	$	7,393	$	18,511	$	79,414	$	12,202,096	$	12,281,510	$	1,990


	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 (which consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest). Based upon the Company’s past experiences, some of these loans with potential weaknesses will ultimately be restructured or placed in non-accrual status. As of both December 31, 2021 and December 31, 2020, we are unable to reasonably estimate the amount of these loans that will be restructured or placed on 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.

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 had not yet resumed payment as of December 31, 2021 and December 31, 2020 was $106.7 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. 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 December 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 December 31, 2021 and December 31, 2020.

The Consolidated Appropriations Act, which was enacted on December 27, 2020, extended certain provisions related to the COVID-19 pandemic in the United States (which were due to expire) and provided additional emergency relief to individuals and businesses. Included within the provisions of the Consolidated Appropriations Act is the extension to January 1, 2022 of Section 4013 of the CARES Act, which provides relief from a requirement to evaluate loans that had received a COVID-19 modification to determine if the loans required TDR treatment, provided certain criteria were met. As such, the Company applied the TDR relief granted pursuant to such section to any qualifying loan modifications executed during the allowable time period.


	As of December 31, 2021
	TDRs on Accrual Status			TDRs on Non-accrual 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	$	3,745	6	$	9,983	7	$	13,728
Commercial real estate	1	3,520		—	—		1	3,520
Business banking	5	3,830		3	383		8	4,213
Residential real estate	121	19,119		27	3,015		148	22,134
Consumer home equity	67	3,104		16	818		83	3,922
Other consumer	2	18		—	—		2	18
Total	197	$	33,336	52	$	14,199	249	$	47,535


	As of December 31, 2020
	TDRs on Accrual Status			TDRs on Non-accrual 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	$	5,628	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


	For the Year Ended December 31,
	2021					2020					2019
	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)		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Commercial and industrial	—	$	—	$	—	1	$	140	$	140	16	$	18,912	$	19,212
Commercial real estate	—	—		—		1	506		506		2	3,277		3,277
Business banking	—	—		—		6	1,642		1,642		2	3,184		3,184
Residential real estate	2	498		498		6	920		920		11	2,659		2,696
Consumer home equity	3	300		300		22	969		973		9	2,053		2,392
Other consumer	—	—		—		4	58		58		—	—		—
Total	5	$	798	$	798	40	$	4,235	$	4,239	40	$	30,085	$	30,761


	For the Year Ended December 31,
	2021		2020		2019
	(In thousands)
Adjusted interest rate and extended maturity	$	—	$	—	$	1,513
Adjusted interest rate and principal deferred	—		—		39
Adjusted interest rate	—		—		3,352
Interest only/principal deferred	—		1,305		2,769
Extended maturity	200		35		—
Extended maturity and interest only/principal deferred	—		427		47
Additional underwriting- increased exposure	—		—		10,822
Principal and interest deferred	—		422		—
Court-ordered concession	396		1,995		355
Subordination	—		—		11,032
Other	202		55		832
Total	$	798	$	4,239	$	30,761

The following table shows the number of loans and the recorded investment amount of those loans, as of the respective date, that have been modified during the prior 12 months which have subsequently defaulted during the periods indicated. There were no TDRs that were modified during the prior 12 months which had subsequently defaulted during the year ended December 31, 2021. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual:


	For the Year Ended December 31,
	2020			2019
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted (1):
Commercial and industrial	—	$	—	10	$	18,808
Commercial real estate	—	—		2	3,125

Residential real estate	—	—		—	—
Consumer home equity	1	40		—	—
Total	1	$	40	12	$	21,933

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.


	As of December 31,
	2021						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	$	12,309	$	13,212	$	—	$	9,182	$	11,212	$	—
Commercial real estate	3,520		3,520		—		3,955		3,974		—
Business banking	4,199		5,069		—		5,250		7,659		—
Residential real estate	11,217		12,587		—		14,730		17,010		—
Consumer home equity	1,924		1,924		—		2,571		2,571		—
Other consumer	18		18		—		29		29		—
Sub-total	33,187		36,330		—		35,717		42,455		—
With an allowance recorded:
Commercial and industrial	3,836		4,226		1,540		8,161		8,432		4,555
Commercial real estate	—		—		—		480		497		210
Business banking	7,861		11,240		450		16,651		21,146		1,435
Residential real estate	11,161		11,161		1,549		12,326		12,326		1,565
Consumer home equity	1,998		1,998		270		2,274		2,274		289
Other consumer	161		161		161		—		—		—
Sub-total	25,017		28,786		3,970		39,892		44,675		8,054
Total	$	58,204	$	65,116	$	3,970	$	75,609	$	87,130	$	8,054


	For the Year Ended December 31,
	2021				2020				2019
	Average Recorded Investment		Total Interest Recognized		Average Recorded Investment		Total Interest Recognized		Average Recorded Investment		Total Interest Recognized
	(In thousands)
With no allowance recorded:
Commercial and industrial	$	11,813	$	161	$	12,941	$	206	$	17,695	$	615
Commercial real estate	3,916		178		5,124		179		9,987		179
Business banking	4,352		99		3,008		92		2,072		70
Residential real estate	12,506		456		14,654		589		15,501		671
Consumer home equity	2,027		62		3,299		87		2,869		124
Other consumer	23		—		36		1		—		—
Sub-total	34,637		956		39,062		1,154		48,124		1,659
With an allowance recorded:
Commercial and industrial	7,229		—		7,947		—		6,141		—
Commercial real estate	926		—		644		—		391		—
Business banking	13,027		57		13,663		62		7,730		86
Residential real estate	12,322		474		12,194		521		12,215		528
Consumer home equity	2,106		65		2,334		77		2,261		99
Other consumer	63		—		—		—		—		—
Sub-total	35,673		596		36,782		660		28,738		713
Total	$	70,310	$	1,552	$	75,844	$	1,814	$	76,862	$	2,372

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:


	For the Year Ended December 31,
	2021		2020		2019
	(In thousands)
Balance at beginning of period	$	2,495	$	3,923	$	6,161
Acquisition	8,896		—		—
Accretion	(1,194)		(1,374)		(2,132)
Other change in expected cash flows	(1,475)		(185)		(898)
Reclassification from non-accretable difference for loans with improved cash flows	1,649		131		792
Balance at end of period	$	10,371	$	2,495	$	3,923

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 and for the Year Ended December 31,
	2021								2020
	Balance		Non-performing Loan Rate (%)		Impaired (%)		Gross Charge-offs		Balance		Non-performing Loan Rate (%)		Impaired (%)		Gross Charge-offs
	(Dollars in thousands)
Commercial and industrial	$	732,425	1.36	%	1.36	%	$	—	$	598,873	1.11	%	1.11	%	$	—
Commercial real estate	362,898		0.00	%	0.00	%	—		306,202		0.00	%	0.00	%	—
Commercial construction	37,081		0.00	%	0.00	%	—		119,600		0.00	%	0.00	%	—
Business banking	98		0.00	%	0.00	%	—		34		0.00	%	0.00	%	15
Total loan participations	$	1,132,502	0.88	%	0.88	%	$	—	$	1,024,709	0.65	%	0.65	%	15