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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

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:


	March 31, 2024		December 31, 2023
	(In thousands)
Commercial and industrial	$	3,084,580	$	3,034,068
Commercial real estate	5,519,505		5,457,349
Commercial construction	388,024		386,999
Business banking	1,100,637		1,085,763
Residential real estate	2,544,462		2,565,485
Consumer home equity	1,217,141		1,208,231
Other consumer	234,398		235,533
Gross loans before unamortized premiums, unearned discounts and deferred fees	14,088,747		13,973,428
Allowance for loan losses (1)	(149,190)		(148,993)
Unamortized premiums, net of unearned discounts and deferred fees, net of costs	(32,947)		(25,068)
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs	$	13,906,610	$	13,799,367

(1)The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $54.2 million and $53.9 million as of March 31, 2024 and December 31, 2023, respectively, and is included within other assets on the Consolidated Balance Sheets.

Schedule of Financing Receivable, Allowance for Credit Loss

The following tables summarize the changes in the allowance for loan losses by loan category for the periods indicated:


	For the Three Months Ended March 31, 2024
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Residential Real Estate		Consumer Home Equity		Other Consumer		Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	26,959	$	65,475	$	6,666	$	14,913	$	25,954	$	5,595	$	3,431	$	148,993
Charge-offs	—		(7,250)		—		(102)		(10)		(2)		(651)		(8,015)
Recoveries	25		132		—		410		31		—		163		761
Provision (release)	1,879		6,272		(462)		(590)		(40)		91		301		7,451
Ending balance	$	28,863	$	64,629	$	6,204	$	14,631	$	25,935	$	5,684	$	3,244	$	149,190


	For the Three Months Ended March 31, 2023
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Business Banking		Residential Real Estate		Consumer Home Equity		Other Consumer		Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	26,859	$	54,730	$	7,085	$	16,189	$	28,129	$	6,454	$	2,765	$	142,211
Cumulative effect of change in accounting principle (1)	47		—		—		(140)		(849)		(201)		—		(1,143)
Charge-offs	—		—		—		(343)		—		(7)		(561)		(911)
Recoveries	139		4		—		481		15		1		116		756
Provision (release)	(116)		459		493		(1,102)		(165)		(65)		521		25
Ending balance	$	26,929	$	55,193	$	7,578	$	15,085	$	27,130	$	6,182	$	2,841	$	140,938

(1)Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2022-02 (i.e., cumulative effect adjustment related to the adoption of ASU 2022-02 as of January 1, 2023). The adjustment represents a $1.1 million decrease 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.

Schedule of 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, 2024, and gross charge-offs for the three month period then ended:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
	(In thousands)
Commercial and industrial
Pass	$	143,899	$	421,800	$	406,278	$	316,717	$	332,314	$	754,805	$	499,682	$	502	$	2,875,997
Special Mention	9,486		4,904		27,196		40,184		14,880		5,528		36,145		—		138,323
Substandard	—		18,383		11,587		1,753		387		2,591		21,711		—		56,412
Doubtful	—		—		—		—		—		8		—		—		8
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	153,385		445,087		445,061		358,654		347,581		762,932		557,538		502		3,070,740
Current period gross charge-offs	—		—		—		—		—		—		—		—		—

Commercial real estate
Pass	123,767		477,412		1,424,456		840,761		558,826		1,739,173		37,588		—		5,201,983
Special Mention	—		66,182		7,958		23,728		11,311		24,482		2,432		—		136,093
Substandard	8,376		19,662		12,537		6,737		2,325		83,352		8,003		—		140,992
Doubtful	—		10,506		—		—		—		26,806		—		—		37,312
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	132,143		573,762		1,444,951		871,226		572,462		1,873,813		48,023		—		5,516,380
Current period gross charge-offs	—		—		—		—		—		7,250		—		—		7,250

Commercial construction
Pass	13,845		135,106		182,718		54,108		—		—		—		—		385,777
Special Mention	—		455		—		—		—		—		—		—		455
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	13,845		135,561		182,718		54,108		—		—		—		—		386,232


Current period gross charge-offs	—		—		—		—		—		—		—		—		—

Business banking
Pass	49,239		131,526		161,887		175,923		143,842		321,838		78,227		2,325		1,064,807
Special Mention	1,449		653		2,563		2,795		3,509		16,775		74		—		27,818
Substandard	—		499		580		2,712		2,086		4,633		21		570		11,101
Doubtful	131		—		—		—		—		27		—		—		158
Loss	—		—		—		—		—		—		—		—		—
Total business banking	50,819		132,678		165,030		181,430		149,437		343,273		78,322		2,895		1,103,884
Current period gross charge-offs	—		—		—		2		—		100		—		—		102

Residential real estate
Current and accruing	18,971		252,943		723,437		658,347		349,251		534,416		—		—		2,537,365
30-89 days past due and accruing	—		762		2,947		2,965		2,790		6,715		—		—		16,179
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		104		1,548		167		170		4,708		—		—		6,697
Total residential real estate	18,971		253,809		727,932		661,479		352,211		545,839		—		—		2,560,241
Current period gross charge-offs	—		—		—		—		—		10		—		—		10

Consumer home equity
Current and accruing	2,112		28,609		81,312		8,879		4,725		88,814		987,234		3,431		1,205,116
30-89 days past due and accruing	—		—		236		—		—		847		4,418		37		5,538
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		—		118		—		—		1,669		7,411		70		9,268
Total consumer home equity	2,112		28,609		81,666		8,879		4,725		91,330		999,063		3,538		1,219,922
Current period gross charge-offs	—		—		—		—		—		2		—		—		2

Other consumer
Current and accruing	21,400		75,057		33,794		22,081		11,253		22,161		11,824		40		197,610
30-89 days past due and accruing	—		165		162		102		31		80		29		—		569
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		40		113		25		—		16		28		—		222
Total other consumer	21,400		75,262		34,069		22,208		11,284		22,257		11,881		40		198,401
Current period gross charge-offs	280		74		125		105		14		37		16		—		651

Total	$	392,675	$	1,644,768	$	3,081,427	$	2,157,984	$	1,437,700	$	3,639,444	$	1,694,827	$	6,975	$	14,055,800

(1)The amounts presented represent the amortized cost as of March 31, 2024 of revolving loans that were converted to term loans during the three months ended March 31, 2024.

The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of December 31, 2023:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
	(In thousands)
Commercial and industrial
Pass	$	477,138	$	442,896	$	350,782	$	341,243	$	140,641	$	641,342	$	485,448	$	3,255	$	2,882,745
Special Mention	4,229		25,796		14,994		13,563		89		553		51,106		455		110,785
Substandard	1,534		11,995		1,775		405		—		2,581		7,803		—		26,093
Doubtful	—		—		—		—		—		8		—		—		8
Loss	—		—		—		—		—		—		—		—		—


Total commercial and industrial	482,901		480,687		367,551		355,211		140,730		644,484		544,357		3,710		3,019,631

Commercial real estate
Pass	498,590		1,435,893		855,014		573,370		516,689		1,291,189		47,581		2,556		5,220,882
Special Mention	15,200		7,990		—		736		2,281		34,803		—		—		61,010
Substandard	19,738		12,589		15,237		3,938		33,413		48,978		8,006		—		141,899
Doubtful	10,615		—		—		—		—		19,441		—		—		30,056
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	544,143		1,456,472		870,251		578,044		552,383		1,394,411		55,587		2,556		5,453,847

Commercial construction
Pass	133,463		151,957		96,147		—		—		—		2,614		—		384,181
Special Mention	456		—		—		—		—		—		—		—		456
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	133,919		151,957		96,147		—		—		—		2,614		—		384,637

Business banking
Pass	139,237		165,247		182,606		146,180		110,638		229,636		73,054		3,996		1,050,594
Special Mention	1,474		2,553		1,009		4,294		4,692		11,479		23		27		25,551
Substandard	1,310		596		2,684		2,071		1,464		3,423		594		579		12,721
Doubtful	—		—		—		—		507		220		—		—		727
Loss	—		—		—		—		—		—		—		—		—
Total business banking	142,021		168,396		186,299		152,545		117,301		244,758		73,671		4,602		1,089,593

Residential real estate
Current and accruing	257,671		728,997		665,811		354,003		93,817		451,812		—		—		2,552,111
30-89 days past due and accruing	750		6,615		2,437		2,112		1,496		8,219		—		—		21,629
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		1,755		1,433		291		288		4,958		—		—		8,725
Total residential real estate	258,421		737,367		669,681		356,406		95,601		464,989		—		—		2,582,465

Consumer home equity
Current and accruing	30,393		84,065		9,151		4,899		4,166		80,687		970,882		9,472		1,193,715
30-89 days past due and accruing	148		483		—		—		—		558		7,509		223		8,921
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		66		—		—		—		1,466		6,770		230		8,532
Total consumer home equity	30,541		84,614		9,151		4,899		4,166		82,711		985,161		9,925		1,211,168

Other consumer
Current and accruing	93,659		36,601		23,962		12,427		11,367		14,609		13,353		85		206,063
30-89 days past due and accruing	170		271		153		25		12		92		40		—		763
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	50		61		25		2		14		34		7		—		193
Total other consumer	93,879		36,933		24,140		12,454		11,393		14,735		13,400		85		207,019

Total	$	1,685,825	$	3,116,426	$	2,223,220	$	1,459,559	$	921,574	$	2,846,088	$	1,674,790	$	20,878	$	13,948,360

(1)The amounts presented represent the amortized cost as of December 31, 2023 of revolving loans that were converted to term loans during the year ended December 31, 2023.

Schedule of Financing Receivable, Past Due

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


	As of March 31, 2024
	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	$	300	$	—	$	465	$	765	$	3,069,975	$	3,070,740
Commercial real estate	—		—		—		—		5,516,380		5,516,380
Commercial construction	—		—		—		—		386,232		386,232
Business banking	3,788		1,083		2,296		7,167		1,096,717		1,103,884
Residential real estate	11,964		4,522		5,014		21,500		2,538,741		2,560,241
Consumer home equity	4,411		1,321		8,815		14,547		1,205,375		1,219,922
Other consumer	398		171		222		791		197,610		198,401
Total	$	20,861	$	7,097	$	16,812	$	44,770	$	14,011,030	$	14,055,800


	As of December 31, 2023
	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	$	3,316	$	—	$	465	$	3,781	$	3,015,850	$	3,019,631
Commercial real estate	—		—		—		—		5,453,847		5,453,847
Commercial construction	—		—		—		—		384,637		384,637
Business banking	3,455		1,647		1,202		6,304		1,083,289		1,089,593
Residential real estate	17,116		4,888		6,764		28,768		2,553,697		2,582,465
Consumer home equity	6,517		2,600		8,204		17,321		1,193,847		1,211,168
Other consumer	532		235		189		956		206,063		207,019
Total	$	30,936	$	9,370	$	16,824	$	57,130	$	13,891,230	$	13,948,360

Schedule of Financing Receivable, Nonaccrual

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


	As of March 31, 2024						As of December 31, 2023
	Non-Accrual Loans With ACL		Non-Accrual Loans Without ACL (1)		Total Nonaccrual Loans		Non-Accrual Loans With ACL		Non-Accrual Loans Without ACL (1)		Total Nonaccrual Loans
	(In thousands)
Commercial and industrial	$	4	$	465	$	469	$	4	$	464	$	468
Commercial real estate	21,646		15,667		37,313		13,969		16,087		30,056
Commercial construction	—		—		—		—		—		—
Business banking	3,196		8		3,204		4,572		11		4,583
Residential real estate	6,697		—		6,697		8,725		—		8,725
Consumer home equity	9,268		—		9,268		8,532		—		8,532
Other consumer	222		—		222		193		—		193
Total non-accrual loans	$	41,033	$	16,140	$	57,173	$	35,995	$	16,562	$	52,557

(1)The loans on non-accrual status and without an ACL as of both March 31, 2024 and December 31, 2023, were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value.

Schedule of Summary of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost balance as of March 31, 2024 and 2023 of loans modified during the three month periods then ended to borrowers experiencing financial difficulty by the type of concession granted:


	Three Months Ended March 31,
	2024				2023
	Amortized Cost Balance		% of Total Portfolio		Amortized Cost Balance		% of Total Portfolio
	(Dollars in thousands)
Interest Rate Reduction:
Business banking	$	—	—	%	$	47	0.00	%
Consumer home equity	542		0.04	%	813		0.07	%
Total interest rate reduction	$	542	0.00	%	$	860	0.01	%
Other-than-Insignificant Delay in Repayment:
Residential real estate	—		—	%	327		0.01	%
Consumer home equity	—		—	%	23		0.00	%
Total other-than-insignificant delay in repayment	$	—	0.00	%	$	350	0.00	%
Term Extension:
Business banking	165		0.01	%	—		—	%
Residential real estate	238		0.01	%	—		—	%
Total term extension	$	403	0.00	%	$	—	—	%
Combination—Interest Rate Reduction & Other-than-Insignificant Delay in Repayment:
Business banking	$	—	—	%	$	64	0.01	%
Consumer home equity	129		0.01	%	175		0.01	%
Total combination—interest rate reduction & other-than-insignificant delay in repayment	$	129	0.00	%	$	239	0.00	%
Combination—Interest Rate Reduction & Term Extension:
Business banking	$	—	—	%	$	460	0.04	%
Consumer home equity	—		—	%	220		0.02	%
Total combination—interest rate reduction & term extension	$	—	—	%	$	680	0.00	%
Combination—Term Extension & Other-than-Insignificant Delay in Repayment:
Business banking	$	—	—	%	$	29	0.00	%
Total combination—term extension & other-than-insignificant delay in repayment	$	—	—	%	$	29	0.00	%
Combination—Interest Rate Reduction, Term Extension & Other-than-Insignificant Delay in Repayment
Business banking	$	—	—	%	$	131	0.01	%
Total combination—interest rate reduction, term extension & other-than-insignificant delay in repayment	$	—	—	%	$	131	0.00	%
Total by portfolio segment
Business banking	$	165	0.01	%	$	731	0.07	%
Residential real estate	238		0.01	%	327		0.01	%
Consumer home equity	671		0.06	%	1,231		0.10	%
Total	$	1,074	0.01	%	$	2,289	0.02	%

The following table describes the financial effect of the modifications made during the three months ended March 31, 2024 to borrowers experiencing financial difficulty:

Loan Type

Financial Effect (1)

Interest Rate Reduction

Consumer home equity

Reduced weighted-average contractual interest rate from 8.0% to 4.4%.

Other-than-Insignificant Delay in Repayment

Consumer home equity

Deferred a weighted average of 7 principal and interest payments which were added to the end of the loan life.

Term Extension

Business banking

Added a weighted-average 1.6 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Residential real estate

Added a weighted-average 2.0 years to the life of loans, which reduced monthly payment amounts for the borrowers.

(1)Loans that were modified in more than one manner are included in each modification type corresponding to the type of modifications performed.

The following table describes the financial effect of the modifications made during the three months ended March 31, 2023 to borrowers experiencing financial difficulty:

Loan Type

Financial Effect (1)

Interest Rate Reduction

Business banking

Reduced weighted-average contractual interest rate from 9.5% to 6.9%.

Consumer home equity

Reduced weighted-average contractual interest rate from 7.0% to 4.4%.

Other-than-Insignificant Delay in Repayment

Business banking

Deferred a weighted average of 3 payments. For principal and interest deferrals, the loans were re-amortized over an extended payment period resulting in reduced monthly payment amounts for the borrowers.

Residential real estate

Deferred a weighted average of 9 principal and interest payments which were added to the end of the loan life.

Consumer home equity

Deferred a weighted average of 6 principal and interest payments which were added to the end of the loan life.

Term Extension

Business banking

Added a weighted-average 4.2 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Consumer home equity

Added a weighted-average 0.6 years to the life of loans, which reduced monthly payment amounts for the borrowers.

(1)Loans that were modified in more than one manner are included in each modification type corresponding to the type of modifications performed.

Schedule of Financing Receivable, Modified, Past Due

The following table shows the age analysis of past due loans to borrowers experiencing financial difficulty that were modified during the prior twelve months as of March 31, 2024:


	As of March 31, 2024
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	10,506	$	10,506
Business banking	34		—		—		34		700		734
Residential real estate	774		—		36		810		2,778		3,588
Consumer home equity	—		—		400		400		2,527		2,927
Total	$	808	$	—	$	436	$	1,244	$	16,511	$	17,755

The following table shows the age analysis of past due loans to borrowers experiencing financial difficulty as of March 31, 2023 that were modified during the three months ended March 31, 2023:


	As of March 31, 2023
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
	(In thousands)
Business banking	$	28	$	—	$	—	$	28	$	703	$	731
Residential real estate	—		—		—		—		327		327
Consumer home equity	—		—		—		—		1,231		1,231
Total	$	28	$	—	$	—	$	28	$	2,261	$	2,289

Schedule of the Company's Loan Participations

The following table summarizes the Company’s loan participations:


	As of and for the Three Months Ended March 31, 2024						As of and for the Year Ended December 31, 2023
	Balance		Non-performing Loan Rate (%)		Gross Charge-offs		Balance		Non-performing Loan Rate (%)		Gross Charge-offs
	(Dollars in thousands)
Commercial and industrial	$	980,353	0.00	%	$	—	$	985,394	0.00	%	$	—
Commercial real estate	501,033		0.00	%	—		447,550		0.00	%	—
Commercial construction	126,822		0.00	%	—		146,043		0.00	%	—
Business banking	60		0.00	%	22		72		0.00	%	22
Total loan participations	$	1,608,268	0.00	%	$	22	$	1,579,059	0.00	%	$	22