Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Loans and Allowance for Credit Losses

Loans and Allowance for Credit Losses

Loans

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

	March 31, 2025		December 31, 2024
	(In thousands)
Commercial and industrial	$	3,442,691	$	3,296,068
Commercial real estate	7,176,744		7,119,523
Commercial construction	461,269		494,842
Business banking	1,419,943		1,448,176
Residential real estate	4,038,712		4,063,659
Consumer home equity	1,405,261		1,385,394
Other consumer	259,865		271,422
Gross loans before unearned discounts and deferred fees, net	18,204,485		18,079,084
Allowance for loan losses (1)	(224,310)		(228,952)
Unearned discounts and deferred fees, net	(288,790)		(300,730)
Loans after the allowance for loan losses and net unearned discounts and deferred fees	$	17,691,385	$	17,549,402

(1)The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $64.1 million and $66.7 million as of March 31, 2025 and December 31, 2024, respectively, and is included within other assets on the Consolidated Balance Sheets.

There are no other loan categories that exceed 10% of total loans not already reflected in the preceding table.

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 and certain purchased loans. 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.

Loans Pledged as Collateral

The carrying value of loans pledged to secure advances from the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”) were $2.2 billion and $2.3 billion at March 31, 2025 and December 31, 2024, respectively. The balance of funds borrowed from the FHLBB were $20.1 million and $17.6 million at March 31, 2025 and December 31, 2024, respectively.

The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $3.6 billion and $3.1 billion at March 31, 2025 and December 31, 2024, respectively. There were no funds borrowed from the FRB outstanding at March 31, 2025 or December 31, 2024.

Serviced Loans

At March 31, 2025 and December 31, 2024, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $222.3 million and $228.4 million, respectively.

Allowance for Loan Losses

The allowance for loan losses is established to provide for management’s estimate of expected lifetime credit losses on loans measured at amortized cost at the balance sheet date through a provision for loan losses charged to net income. Charge-offs, net of recoveries, are charged directly to the allowance for loan losses. 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.

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, 2025
	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	$	41,090	$	116,175	$	8,462	$	19,899	$	32,291	$	7,472	$	3,563	$	228,952
Charge-offs	—		(11,587)		—		(342)		—		—		(558)		(12,487)
Recoveries	11		694		—		322		39		—		179		1,245
Provision (release)	5,389		1,352		52		436		(1,234)		(581)		1,186		6,600
Ending balance	$	46,490	$	106,634	$	8,514	$	20,315	$	31,096	$	6,891	$	4,370	$	224,310

	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

The allowance for loan losses decreased $4.6 million, or 2.0%, to $224.3 million as of March 31, 2025 from $229.0 million as of December 31, 2024. The decrease in the allowance for loan losses for the three months ended March 31, 2025 was primarily due to a reduction in specific reserves that was driven by the transfer of a non-performing commercial real estate loan to held-for-sale classification and the sale of a non-performing commercial and industrial loan, both of which had previously been reserved for on a specific reserve basis.

Reserve for Unfunded Commitments

Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. As of March 31, 2025 and December 31, 2024, the Company’s reserve for unfunded lending commitments was $13.0 million and $13.1 million, respectively, which is recorded within other liabilities in the Company's Consolidated Balance Sheets.

Portfolio Segmentation

Management uses a methodology to systematically estimate the amount of expected losses in each segment of loans in the Company’s portfolio. Commercial and industrial business banking, investment commercial real estate, and commercial and industrial loans are evaluated based upon loan-level risk characteristics, historical losses and other factors which form the basis for estimating expected losses. Other portfolios, including owner occupied commercial real estate (which includes business banking owner occupied commercial real estate), commercial construction, residential mortgages, home equity and consumer loans, are analyzed as groups taking into account delinquency ratios, and the Company’s and peer banks’ historical loss experience. For the purposes of estimating the allowance for loan losses, management segregates the loan portfolio into loan categories that share similar 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 Lending

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, aircraft and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from any entity or individual that holds a material ownership in the borrowing entity when the loan-to-value of a commercial and industrial loan is in excess of a specified threshold.

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. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity when the loan-to-value of a commercial real estate loan is in excess of a specified threshold.

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. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure.

Residential Lending

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 policy standards applied to loans originated by the Company are the same as those applied to purchased loans. 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 liquidity and capital needs.

Consumer Lending

Consumer home equity: Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. At the end of the ten-year draw period, home equity lines of credit are amortized over the remaining maturity period and monthly payments of principal and interest are required. 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, automobile and aircraft 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 aircraft and automobile loans.

Credit Quality

Commercial Lending Credit Quality

The credit quality of the Company’s 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. 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.

The Company monitors credit quality indicators and utilizes portfolio scorecards to assess the risk of its commercial portfolio. Specifically, the Company utilizes a 15-point credit risk-rating system to manage risk and identify potential problem loans. Under this point system, 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. Commercial loan risk ratings are (re)evaluated for each loan at least once-per-year. The risk-rating categories under the credit risk-rating system are defined as follows:

0 Risk Rating - Unrated

Certain segments of the portfolios are not rated. These segments include aircraft 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 which includes the review of the business score and loan and deposit account performance. 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 of less than $1.5 million. Loans included in this category generally are not required to provide regular financial reporting or regular covenant monitoring.

For purposes of estimating the allowance for loan losses, unrated loans are considered in the same manner as “Pass” rated loans. Unrated loans are included with “Pass” rated loans for disclosure purposes.

1-10 Risk Rating – Pass

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.

11 Risk Rating – Special Mention (Potential Weakness)

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.

12 Risk Rating – Substandard (Well-Defined Weakness)

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.

13 Risk Rating – Doubtful (Loss Probable)

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, but because of reasonably 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.

14 Risk Rating – Loss

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.

Residential and Consumer Lending Credit Quality

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 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, 2025, and gross charge-offs for the three month period then ended:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
	(In thousands)
Commercial and industrial
Pass	$	162,327	$	327,147	$	319,330	$	418,022	$	349,770	$	1,091,112	$	560,008	$	342	$	3,228,058
Special Mention	447		21,288		26,397		6,776		22,611		3,616		17,407		—		98,542
Substandard	—		2,125		20,549		34,283		897		4,674		19,762		—		82,290
Doubtful	—		—		—		3,795		—		8		—		—		3,803
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	162,774		350,560		366,276		462,876		373,278		1,099,410		597,177		342		3,412,693
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Commercial real estate
Pass	136,073		489,986		601,770		1,779,400		996,888		2,625,087		92,600		—		6,721,804
Special Mention	—		8,956		67,813		36,046		30,716		73,443		2,531		—		219,505
Substandard	—		—		44,571		12,841		5,473		44,317		1		—		107,203
Doubtful	—		3,380		13,312		—		—		41,405		—		—		58,097
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	136,073		502,322		727,466		1,828,287		1,033,077		2,784,252		95,132		—		7,106,609
Current period gross charge-offs	—		—		3,492		—		—		8,095		—		—		11,587
Commercial construction
Pass	19,571		127,355		216,205		91,534		969		—		1,563		—		457,197
Special Mention	—		1,283		640		—		—		—		—		—		1,923
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	19,571		128,638		216,845		91,534		969		—		1,563		—		459,120
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Business banking
Pass	33,446		168,586		136,110		171,679		202,551		568,677		97,715		3,686		1,382,450
Special Mention	—		1,306		246		1,156		1,994		4,560		—		—		9,262
Substandard	—		305		1,481		2,848		1,898		7,468		207		—		14,207
Doubtful	—		—		398		1,098		14		303		—		—		1,813
Loss	—		—		—		—		—		—		—		—		—
Total business banking	33,446		170,197		138,235		176,781		206,457		581,008		97,922		3,686		1,407,732
Current period gross charge-offs	—		—		114		17		2		187		—		22		342
Residential real estate
Current and accruing	39,513		212,226		316,169		959,703		1,020,729		1,326,354		—		—		3,874,694

30-89 days past due and accruing	—		882		1,578		4,356		4,866		7,392		—		—		19,074
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		—		—		4,320		334		7,750		—		—		12,404
Total residential real estate	39,513		213,108		317,747		968,379		1,025,929		1,341,496		—		—		3,906,172
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Consumer home equity
Current and accruing	496		10,177		31,243		71,259		7,753		89,717		1,169,012		5,797		1,385,454
30-89 days past due and accruing	—		—		133		451		—		924		9,604		249		11,361
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		—		—		—		—		2,218		5,980		231		8,429
Total consumer home equity	496		10,177		31,376		71,710		7,753		92,859		1,184,596		6,277		1,405,244
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Other consumer
Current and accruing	14,452		54,181		58,361		24,907		15,400		22,112		27,518		34		216,965
30-89 days past due and accruing	15		44		130		55		84		631		54		—		1,013
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		31		1		37		24		14		40		—		147
Total other consumer	14,467		54,256		58,492		24,999		15,508		22,757		27,612		34		218,125
Current period gross charge-offs	266		68		50		68		25		38		43		—		558
Total	$	406,340	$	1,429,258	$	1,856,437	$	3,624,566	$	2,662,971	$	5,921,782	$	2,004,002	$	10,339	$	17,915,695

(1)The amounts presented represent the amortized cost as of March 31, 2025 of revolving loans that were converted to term loans during the three months ended March 31, 2025.

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, 2024:

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
	(In thousands)
Commercial and industrial
Pass	$	358,054	$	365,372	$	407,129	$	310,250	$	341,049	$	745,815	$	522,236	$	22,800	$	3,072,705
Special Mention	19,721		25,719		5,963		24,199		43		4,563		26,522		508		107,238
Substandard	996		21,858		30,731		1,019		2,124		1,366		22,525		710		81,329
Doubtful	—		—		5,295		—		—		8		—		—		5,303
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	378,771		412,949		449,118		335,468		343,216		751,752		571,283		24,018		3,266,575
Commercial real estate
Pass	531,193		575,929		1,740,688		1,020,015		722,669		1,988,069		82,661		10,595		6,671,819
Special Mention	9,457		45,188		26,551		14,613		8,855		35,952		2,976		—		143,592
Substandard	—		45,762		17,404		18,051		293		44,713		1		—		126,224
Doubtful	3,450		17,081		—		—		4,237		77,675		—		—		102,443
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	544,100		683,960		1,784,643		1,052,679		736,054		2,146,409		85,638		10,595		7,044,078
Commercial construction
Pass	96,423		228,979		132,389		16,836		—		—		15,616		—		490,243
Special Mention	—		621		—		—		—		—		—		—		621
Substandard	785		—		—		—		—		—		—		—		785

Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	97,208		229,600		132,389		16,836		—		—		15,616		—		491,649
Business banking
Pass	173,110		141,000		178,696		208,835		156,366		441,532		103,222		5,040		1,407,801
Special Mention	533		60		1,409		1,929		—		6,203		20		262		10,416
Substandard	314		1,102		1,000		911		1,516		9,402		197		297		14,739
Doubtful	—		49		1,098		16		—		366		—		718		2,247
Loss	—		—		—		—		—		—		—		—		—
Total business banking	173,957		142,211		182,203		211,691		157,882		457,503		103,439		6,317		1,435,203
Residential real estate
Current and accruing	213,244		321,097		970,831		1,032,297		548,987		800,995		—		—		3,887,451
30-89 days past due and accruing	944		2,300		6,480		5,437		3,209		9,606		—		—		27,976
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	884		103		3,721		1,092		575		6,580		—		—		12,955
Total residential real estate	215,072		323,500		981,032		1,038,826		552,771		817,181		—		—		3,928,382
Consumer home equity
Current and accruing	10,425		32,573		74,385		7,954		4,293		76,953		1,143,767		15,629		1,365,979
30-89 days past due and accruing	—		275		103		—		—		1,179		6,965		574		9,096
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		63		61		—		—		1,223		8,151		715		10,213
Total consumer home equity	10,425		32,911		74,549		7,954		4,293		79,355		1,158,883		16,918		1,385,288
Other consumer
Current and accruing	61,430		62,170		26,869		16,970		8,453		16,914		32,914		19		225,739
30-89 days past due and accruing	116		146		143		75		25		646		135		15		1,301
Loans 90 days or more past due and still accruing	—		—		—		—		—		—		—		—		—
Non-accrual	—		11		31		17		7		4		44		25		139
Total other consumer	61,546		62,327		27,043		17,062		8,485		17,564		33,093		59		227,179
Total	$	1,481,079	$	1,887,458	$	3,630,977	$	2,680,516	$	1,802,701	$	4,269,764	$	1,967,952	$	57,907	$	17,778,354

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

Asset Quality

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. 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.

A loan is expected to remain on non-accrual status until it becomes current with respect to principal and interest, the loan is liquidated, or the loan is determined to be uncollectible and is charged-off against the allowance for loan losses.

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

	As of March 31, 2025
	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	$	5,984	$	—	$	90	$	6,074	$	3,406,619	$	3,412,693
Commercial real estate	12,400		—		22,378		34,778		7,071,831		7,106,609
Commercial construction	—		—		—		—		459,120		459,120
Business banking	8,605		3,506		6,729		18,840		1,388,892		1,407,732
Residential real estate	13,074		6,340		11,920		31,334		3,874,838		3,906,172
Consumer home equity	8,865		2,784		7,190		18,839		1,386,405		1,405,244
Other consumer	870		146		116		1,132		216,993		218,125
Total	$	49,798	$	12,776	$	48,423	$	110,997	$	17,804,698	$	17,915,695

	As of December 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	$	28	$	—	$	90	$	118	$	3,266,457	$	3,266,575
Commercial real estate	17,081		6,432		9,180		32,693		7,011,385		7,044,078
Commercial construction	—		—		—		—		491,649		491,649
Business banking	13,680		1,605		1,826		17,111		1,418,092		1,435,203
Residential real estate	21,037		6,947		12,786		40,770		3,887,612		3,928,382
Consumer home equity	7,254		2,195		8,449		17,898		1,367,390		1,385,288
Other consumer	1,130		171		109		1,410		225,769		227,179
Total	$	60,210	$	17,350	$	32,440	$	110,000	$	17,668,354	$	17,778,354

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

	As of March 31, 2025						As of December 31, 2024
	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	$	3,887	$	8	$	3,895	$	5,395	$	8	$	5,403
Commercial real estate	56,930		1,169		58,099		90,003		12,555		102,558
Commercial construction	—		—		—		—		—		—
Business banking	8,062		590		8,652		4,551		1		4,552
Residential real estate	12,404		—		12,404		12,955		—		12,955
Consumer home equity	8,429		—		8,429		10,213		—		10,213
Other consumer	147		—		147		139		—		139
Total non-accrual loans	$	89,859	$	1,767	$	91,626	$	123,256	$	12,564	$	135,820

(1)The loans on non-accrual status and without an ACL as of both March 31, 2025 and December 31, 2024, were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value.

The amount of interest income recognized on non-accrual loans during the three months ended March 31, 2025 and 2024 was not significant. As of both March 31, 2025 and December 31, 2024, there were no loans greater than 90 days past due and still accruing.

It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status and, generally, to record any payments received from a borrower related to a loan on non-accrual status as a reduction of the amortized cost basis of the loan. Accrued interest reversed against interest income for the three months ended March 31, 2025 and 2024 was not significant.

For collateral values for residential mortgage and home equity loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, or estimated auction or liquidation values less estimated costs to sell. As of March 31, 2025 and December 31, 2024, the Company had collateral-dependent residential mortgage and home equity loans totaling $1.6 million and $1.1 million, respectively.

For collateral-dependent commercial loans, the amount of the allowance for loan losses is individually assessed based upon the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of March 31, 2025 and December 31, 2024, the Company had collateral-dependent commercial loans totaling $63.0 million and $107.7 million, respectively.

Appraisals for all loan types are obtained at the time of loan origination as part of the loan approval process and are updated at the time of a loan modification and/or refinance and as considered necessary by management for impairment review purposes. In addition, appraisals are updated as required by regulatory pronouncements.

As of both March 31, 2025 and December 31, 2024, the Company had no residential real estate held in other real estate owned (“OREO”). As of March 31, 2025, there were seven residential real estate loans, which had an aggregate balance of $0.8 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process. As of December 31, 2024, there were four residential real estate loans, which had an aggregate balance of $0.4 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process. As of March 31, 2025, there were five consumer home equity loans, which had an aggregate balance of $0.6 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process. As of December 31, 2024, there were six consumer home equity loans, which had an aggregate balance of $0.5 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost balance as of March 31, 2025 and 2024 of loans modified during the three month periods then ended to borrowers experiencing financial difficulty by the type of concession granted:

	During the Three Months Ended March 31,
	2025				2024
	Amortized Cost Balance		% of Total Portfolio		Amortized Cost Balance		% of Total Portfolio
	(Dollars in thousands)
Interest Rate Reduction:
Business banking	$	39	0.00	%	$	—	—	%
Consumer home equity	80		0.01	%	542		0.04	%
Total interest rate reduction	$	119	0.00	%	$	542	0.00	%
Other-than-Insignificant Delay in Repayment:
Business banking	$	125	0.01	%	$	—	—	%
Total other-than-insignificant delay in repayment	$	125	0.00	%	$	—	—	%
Term Extension:
Commercial and industrial	$	3,795	0.11	%	$	—	—	%
Business banking	—		—	%	165		0.01	%
Residential real estate	—		—	%	238		0.01	%
Total term extension	$	3,795	0.02	%	$	403	0.00	%
Combination—Interest Rate Reduction & Other-than-Insignificant Delay in Repayment:
Consumer home equity	$	—	—	%	$	129	0.01	%
Total combination—interest rate reduction & other-than-insignificant delay in repayment	$	—	—	%	$	129	0.00	%
Combination—Term Extension & Other-than-Insignificant Delay in Repayment:
Business banking	$	316	0.02	%	$	—	—	%
Total combination—term extension & other-than-insignificant delay in repayment	$	316	0.00	%	$	—	—	%
Total by portfolio segment
Commercial and industrial	$	3,795	0.11	%	$	—	—	%
Business banking	480		0.03	%	165		0.01	%
Residential real estate	—		—	%	238		0.01	%
Consumer home equity	80		0.01	%	671		0.06	%
Total	$	4,355	0.02	%	$	1,074	0.01	%

The following tables describe the financial effect of the modifications made during the periods indicated to borrowers experiencing financial difficulty. Loans that were modified in more than one manner are included in each modification type corresponding to the types of modifications performed.

Three Months Ended March 31, 2025
Loan Type	Financial Effect (1)
Interest Rate Reduction
Business banking	Reduced contractual interest rate of one loan from 7.8% to 6.0%.
Consumer home equity	Reduced contractual interest rate of one loan from 7.0% to 5.0%.
Other-than-Insignificant Delay in Repayment
Business banking	Deferred a weighted average of 7 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. For interest-only deferrals, interest accrued at the time of the modification was added to the end of the loan life.
Term Extension
Commercial and industrial	Added 1.1 years to the life of one loan, which reduced the monthly payment amount for the borrower.
Business banking	Added a weighted-average 8 months 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.

Three Months Ended March 31, 2024
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.

As of March 31, 2025, no loans to borrowers experiencing financial difficulty modified during the prior twelve months had a payment default during the three months ended March 31, 2025. As of March 31, 2024, no loans to borrowers experiencing financial difficulty modified during the prior twelve months had a payment default during the three months ended March 31, 2024.

Management closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. 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, 2025:

	As of March 31, 2025
	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial and industrial	$	—	$	—	$	—	$	—	$	3,795	$	3,795
Commercial real estate	—		—		—		—		9,981		9,981
Business banking	53		—		—		53		1,209		1,262
Residential real estate	450		115		—		565		745		1,310
Consumer home equity	1		—		—		1		1,663		1,664
Total	$	504	$	115	$	—	$	619	$	17,393	$	18,012

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

As of March 31, 2025, there were no additional commitment to lend to borrowers experiencing financial difficulty and which was modified during the three months ended March 31, 2025 in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant delay in repayment, or a term extension. As of December 31, 2024, there was one additional commitment to lend amounting to $0.3 million to borrowers experiencing financial difficulty and which were

modified during year ended December 31, 2024 in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant delay in repayment, or a term extension.

Loan Participations

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.

The following table summarizes the Company’s loan participations:

	As of and for the Three Months Ended March 31, 2025						As of and for the Year Ended December 31, 2024
	Balance		Non-performing Loan Rate (%)		Gross Charge-offs		Balance		Non-performing Loan Rate (%)		Gross Charge-offs
	(Dollars in thousands)
Commercial and industrial	$	1,090,187	—	%	$	—	$	1,031,237	0.00	%	$	—
Commercial real estate	946,567		3.46	%	3,492		944,371		3.87	%	10,290
Commercial construction	145,851		—	%	—		159,237		0.00	%	—
Business banking	1,069		—	%	15		1,612		0.00	%	—
Total loan participations	$	2,183,674	1.50	%	$	3,507	$	2,136,457	1.71	%	$	10,290