Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table provides a summary of the Company’s loan portfolio as of the dates indicated:

	At March 31,		At December 31,
	2022		2021
	(In thousands)
Commercial and industrial	$	2,886,560	$	2,960,527
Commercial real estate	4,609,824		4,522,513
Commercial construction	246,093		222,328
Business banking	1,201,007		1,334,694
Residential real estate	1,936,182		1,926,810
Consumer home equity	1,099,211		1,100,153
Other consumer	203,326		214,485
Gross loans before unamortized premiums, unearned discounts and deferred fees	12,182,203		12,281,510
Allowance for loan losses (1)	(124,166)		(97,787)
Unamortized premiums, net of unearned discounts and deferred fees	(24,434)		(26,442)
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees	$	12,033,603	$	12,157,281

(1)The Company adopted ASU 2016-13 on January 1, 2022 with a modified retrospective approach. Accordingly, at March 31, 2022 the allowance for loan losses at was determined in accordance with ASC 326, “Financial Instruments-Credit Losses” and ASC 310, “Receivables,” as amended. At December 31, 2021 the allowance for loan losses was determined in accordance with ASC 450, “Contingencies” and ASC 310, “Receivables.”

Financing Receivable, Allowance for Credit Loss

The following table summarizes the change in the allowance for loan losses by loan category for the three months ended March 31, 2022:

	Three Months Ended March 31, 2022
	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, prior to adoption of ASU 2016-13	$	18,018	$	52,373	$	2,585	$	10,983	$	6,556	$	3,722	$	3,308	$	242	$	97,787
Cumulative effect of change in accounting principle (1)	11,533		(6,655)		1,485		6,160		13,489		1,857		(541)		(242)		27,086
Charge-offs	(1)		—		—		(945)		—		—		(661)		—		(1,607)
Recoveries	250		14		—		928		10		4		179		—		1,385
(Release of) provision	(2,959)		(1,120)		344		143		2,188		435		484		—		(485)
Ending balance (2)	$	26,841	$	44,612	$	4,414	$	17,269	$	22,243	$	6,018	$	2,769	$	—	$	124,166

(1)Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2016-13 (i.e., cumulative effect adjustment related the adoption of ASU 2016-13 as of January 1, 2022). The adjustment represents a $27.1 million increase to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. The adjustment also includes the adjustment needed to reflect the day one reclassification of the Company’s PCI loan balances to PCD and the associated gross-up of $0.1 million, pursuant to the Company’s adoption of ASU 2016-13.

(2)The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $31.4 million at March 31, 2022.

The following tables summarize the changes in the allowance for loan losses by loan category for the three months ended March 31, 2021:

	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

The following tables bifurcate the amount of loans and the allowance for loan losses allocated to each loan category based on the type of impairment analysis as of December 31, 2021:

	As of 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 ending balance:
Individually evaluated for impairment	$	1,540	$	—	$	—	$	450	$	1,549	$	270	$	161	$	—	$	3,970
Acquired with deteriorated credit quality	5		298		—		—		243		—		—		—		546
Collectively evaluated for impairment	16,473		52,075		2,585		10,533		4,764		3,452		3,147		242		93,271
Total allowance for loan losses by group	$	18,018	$	52,373	$	2,585	$	10,983	$	6,556	$	3,722	$	3,308	$	242	$	97,787
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

Financing Receivable Credit Quality Indicators

The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of March 31, 2022:

	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
	(In thousands)
Commercial and industrial
Pass	$	117,534	$	566,764	$	498,791	$	231,968	$	142,428	$	689,728	$	504,127	$	686	$	2,752,026
Special Mention	—		886		—		514		278		4,459		51,581		—		57,718
Substandard	—		11,302		3,756		340		23,031		8,275		790		346		47,840
Doubtful	—		4,996		—		—		—		114		3,384		—		8,494
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	117,534		583,948		502,547		232,822		165,737		702,576		559,882		1,032		2,866,078
Commercial real estate
Pass	378,744		845,405		641,300		676,903		495,084		1,304,769		43,970		3,478		4,389,653
Special Mention	26,613		—		16,142		3,796		19,562		19,776		—		—		85,889
Substandard	29,903		58		4,663		1,654		38,038		49,327		8,000		—		131,643
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	435,260		845,463		662,105		682,353		552,684		1,373,872		51,970		3,478		4,607,185
Commercial construction
Pass	3,623		124,777		59,181		32,857		—		—		15,760		—		236,198
Special Mention	—		—		2,097		—		—		—		—		—		2,097
Substandard	—		—		—		6,743		—		—		—		—		6,743
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	3,623		124,777		61,278		39,600		—		—		15,760		—		245,038
Business banking
Pass	54,881		309,961		200,726		141,974		69,341		285,849		77,782		3,436		1,143,950
Special Mention	2,174		2,176		3,219		9,152		7,181		14,498		1,908		—		40,308
Substandard	—		464		1,617		4,993		564		9,542		1,244		680		19,104
Doubtful	—		—		—		203		—		103		—		—		306
Loss	—		—		—		—		—		—		—		—		—
Total business banking	57,055		312,601		205,562		156,322		77,086		309,992		80,934		4,116		1,203,668
Residential real estate
Current and accruing	81,889		740,106		406,401		112,976		78,320		505,432		—		—		1,925,124
30-89 days past due and accruing	—		2,553		1,387		201		1,513		6,808		—		—		12,462
Accruing loans past 90 days due	—		—		—		—		—		—		—		—		—

Non-accrual	—		—		129		582		784		6,761		—		—		8,256
Total residential real estate	81,889		742,659		407,917		113,759		80,617		519,001		—		—		1,945,842
Consumer home equity
Current and accruing	15,321		12,792		6,903		6,448		26,582		91,599		929,383		1,788		1,090,816
30-89 days past due and accruing	—		33		31		—		170		1,490		2,004		67		3,795
Accruing loans past 90 days due	—		—		—		—		—		—		—		—		—
Non-accrual	—		—		74		679		1,293		1,948		3,147		—		7,141
Total consumer home equity	15,321		12,825		7,008		7,127		28,045		95,037		934,534		1,855		1,101,752
Other consumer
Current and accruing	15,652		39,868		22,534		25,531		33,967		33,664		15,295		—		186,511
30-89 days past due and accruing	12		107		76		117		449		429		—		—		1,190
Accruing loans past 90 days due	—		—		—		—		—		—		—		—		—
Non-accrual	—		95		27		37		174		172		—		—		505
Total other consumer	15,664		40,070		22,637		25,685		34,590		34,265		15,295		—		188,206
Total	$	726,346	$	2,662,343	$	1,869,054	$	1,257,668	$	938,759	$	3,034,743	$	1,658,375	$	10,481	$	12,157,769

(1)The amounts presented represent the amortized cost as of March 31, 2022 of revolving loans that were converted to term loans during the three months ended March 31, 2022.

The following tables detail the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios:

	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

Financing Receivable, Past Due

The following tables show the age analysis of past due loans as of the dates indicated:

	As of March 31, 2022
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Commercial and industrial	$	146	$	—	$	1,994	$	2,140	$	2,863,938	$	2,866,078
Commercial real estate	600		—		501		1,101		4,606,084		4,607,185
Commercial construction	6,743		—		—		6,743		238,295		245,038
Business banking	4,599		875		3,294		8,768		1,194,900		1,203,668
Residential real estate	10,384		2,162		6,379		18,925		1,926,917		1,945,842
Consumer home equity	2,517		1,348		6,726		10,591		1,091,161		1,101,752
Other consumer	971		219		505		1,695		186,511		188,206
Total	$	25,960	$	4,604	$	19,399	$	49,963	$	12,107,806	$	12,157,769

	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
	(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
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
Consumer home equity	3,774		1,510		4,571		9,855		1,090,298		1,100,153
Other consumer	1,194		548		889		2,631		211,854		214,485
Total (1)	$	53,510	$	7,393	$	18,511	$	79,414	$	12,202,096	$	12,281,510

(1)The amounts presented in the table above represent the recorded investment balance of loans as of December 31, 2021.

Financing Receivable, Nonaccrual

The following table presents information regarding non-accrual loans as of the dates indicated:

	As of and for the Three Months Ended March 31, 2022								As of December 31, 2021
	Non-Accrual Loans With ACL		Non-Accrual Loans Without ACL (4)		Total Non-Accrual Loans		Amortized Cost of Loans >90 DPD and Still Accruing (2)		Total Non-Accrual Loans (1)		Recorded Investment >90 DPD and Still Accruing
	(In thousands)
Commercial and industrial	$	3,496	$	6,990	$	10,486	$	—	$	12,400	$	—
Commercial real estate	—		501		501		—		—		1,196
Commercial construction	—		—		—		—		—		—
Business banking	6,410		522		6,932		—		8,230		—
Residential real estate	8,256		—		8,256		—		6,681		769
Consumer home equity	7,141		—		7,141		—		4,732		25
Other consumer	505		—		505		—		950		—
Total non-accrual loans	$	25,808	$	8,013	$	33,821	$	—	$	32,993	$	1,990

(1)The amounts presented represent the recorded investment balance of loans as of December 31, 2021.

(2)“DPD” indicated in the table above refers to “days past due.”

(3)The amount of interest income recognized on non-accrual loans during the three months ended March 31, 2022 was not significant.

(4)The loans on non-accrual status and without an ACL as of March 31, 2022, were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value.

Financing Receivable, Troubled Debt Restructuring

The following tables show the TDR loans on accrual and non-accrual status as of the dates indicated:

	As of March 31, 2022
	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	$	3,894	7	$	8,381	8	$	12,275
Commercial real estate	1	3,520		—	—		1	3,520
Business banking	5	3,771		8	814		13	4,585
Residential real estate	116	17,786		29	3,583		145	21,369
Consumer home equity	66	3,028		15	859		81	3,887
Other consumer	2	17		—	—		2	17
Total	191	$	32,016	59	$	13,637	250	$	45,653

	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 (1)	197	$	33,336	52	$	14,199	249	$	47,535

(1)The amounts presented in the table above represent the recorded investment balance of loans as of December 31, 2021.

The following tables show the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring:

	For the Three Months Ended March 31, 2022					For the Three Months Ended March 31, 2021
	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	5	$	440	$	448	—	$	—	$	—
Residential real estate	1	134		134		1	295		295
Consumer home equity	1	210		210		—	—		—
Total	7	$	784	$	792	1	$	295	$	295

(1)The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest.

The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the periods indicated:

	For the Three Months Ended March 31,
	2022		2021
	(In thousands)
Extended maturity	$	402	$	—
Adjusted interest rate and extended maturity	390		—
Court-ordered concession	—		295
Total	$	792	$	295

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. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual:

	For the Three Months Ended March 31,
	2022			2021
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted (1):
Business banking	—	$	—	1	$	419
Consumer home equity	—	—		1	59
Total	—	$	—	2	$	478

(1)This table does not reflect any TDR loans which were fully charged off, paid off, or otherwise settled during the period.

Schedule of Participating Mortgage Loans

The following table summarizes the Company’s loan participations:

	As of and for the Three Months Ended March 31, 2022						As of and for the Year Ended December 31, 2021
	Balance (1)		Non-performing Loan Rate (%)		Gross Charge-offs		Balance (1)		Non-performing Loan Rate (%)		Gross Charge-offs
	(Dollars in thousands)
Commercial and industrial	$	744,231	1.13	%	$	—	$	732,425	1.36	%	$	—
Commercial real estate	390,540		0.00	%	—		362,898		0.00	%	—
Commercial construction	42,661		0.00	%	—		37,081		0.00	%	—
Business banking	143		0.00	%	—		98		0.00	%	—
Total loan participations	$	1,177,575	0.71	%	$	—	$	1,132,502	0.88	%	$	—

(1)The balance of loan participations as of March 31, 2022 represents the amortized cost basis and the balance as of December 31, 2021 represents the recorded investment balance. The difference between amortized cost basis and recorded investment basis as of March 31, 2022 is not material.