Loans and Leases

9 Months Ended

Sep. 30, 2020

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases

Loans and Leases

The following table summarizes loans and leases:

(In thousands)	At September 30, 2020		At December 31, 2019
Commercial non-mortgage	$	7,124,365	$	5,296,611
Asset-based	889,711		1,046,886
Commercial real estate	6,307,567		5,949,339
Equipment financing	598,473		537,341
Total commercial portfolio	14,920,116		12,830,177
Residential	4,885,821		4,972,685
Home equity	1,867,969		2,014,544
Other consumer	178,117		219,580
Total consumer portfolio	6,931,907		7,206,809
Loans and leases (1) (2) (3)	$	21,852,023	$	20,036,986

(1)Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(14.1) million and $17.6 million at September 30, 2020 and December 31, 2019, respectively.

(2)At September 30, 2020 the Company had pledged $7.9 billion of eligible loans as collateral to support borrowing capacity at the Federal Home Loan Bank (FHLB) of Boston and the Federal Reserve Bank (FRB) of Boston.

(3)Loan balances exclude accrued interest receivable of $56.6 million and $59.0 million at September 30, 2020 and December 31, 2019, respectively, which is included in accrued interest and other assets in the consolidated balance sheet.

Equipment financing includes net investment in leases of $235.6 million, with total undiscounted cash flows, primarily due within the next five years, amounting to $255.9 million, at September 30, 2020. This lessor activity resulted in interest income of $1.8 million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively, and $5.2 million and $4.0 million for the nine months ended September 30, 2020 and 2019, respectively.

Loans and Leases Aging

The following tables summarize the aging of loans and leases:

	At September 30, 2020
(In thousands)	30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or More Days Past Due and Accruing		Non-accrual		Total Past Due and Non-accrual		Current		Total Loans and Leases
Commercial non-mortgage	$	1,027	$	67	$	—	$	67,849	$	68,943	$	7,055,422	$	7,124,365
Asset-based	—		—		—		3,760		3,760		885,951		889,711
Commercial real estate	330		—		—		8,799		9,129		6,298,438		6,307,567
Equipment financing	183		2,550		—		7,182		9,915		588,558		598,473
Residential	4,478		4,787		—		41,554		50,819		4,835,002		4,885,821
Home equity	5,180		1,572		—		32,853		39,605		1,828,364		1,867,969
Other consumer	1,069		556		—		679		2,304		175,813		178,117
Total	$	12,267	$	9,532	$	—	$	162,676	$	184,475	$	21,667,548	$	21,852,023

	At December 31, 2019
(In thousands)	30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or More Days Past Due and Accruing		Non-accrual		Total Past Due and Non-accrual		Current		Total Loans and Leases
Commercial non-mortgage	$	2,094	$	617	$	—	$	59,369	$	62,080	$	5,234,531	$	5,296,611
Asset-based	—		—		—		139		139		1,046,747		1,046,886
Commercial real estate	1,256		454		—		11,563		13,273		5,936,066		5,949,339
Equipment financing	5,493		292		—		5,433		11,218		526,123		537,341
Residential	7,166		6,441		—		43,193		56,800		4,915,885		4,972,685
Home equity	8,267		5,551		—		30,170		43,988		1,970,556		2,014,544
Other consumer	4,269		807		—		1,192		6,268		213,312		219,580
Total	$	28,545	$	14,162	$	—	$	151,059	$	193,766	$	19,843,220	$	20,036,986

The following table provides additional detail related to loans and leases on non-accrual status:

	At September 30, 2020				At December 31, 2019
(In thousands)	Nonaccrual		Nonaccrual With No Allowance		Nonaccrual		Nonaccrual With No Allowance
Commercial non-mortgage	$	67,849	$	12,136	$	59,369	$	13,584
Asset-based	3,760		—		139		—
Commercial real estate	8,799		2,729		11,563		4,717
Equipment financing	7,182		2,659		5,433		2,159
Total commercial portfolio	87,590		17,524		76,504		20,460
Residential	41,554		30,234		43,193		19,271
Home equity	32,853		25,981		30,170		15,195
Other consumer	679		31		1,192		—
Total consumer portfolio	75,086		56,246		74,555		34,466
Total	$	162,676	$	73,770	$	151,059	$	54,926

Interest on non-accrual residential and home equity loans that would have been recorded as additional interest income had the loans been current in accordance with the original terms totaled $3.4 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, and $9.0 million and $8.9 million for the nine months ended September 30, 2020 and 2019, respectively.

Refer to Note 1 to the Consolidated Financial Statements included in the Company's Form 10-K, for the year ended December 31, 2019, for details of non-accrual policies.

Allowance for Credit Losses on Loans and Leases

The following tables summarize the activity in, as well as the loan and lease balances that were evaluated for, ACL on loans and leases:

	At or for the three months ended September 30, 2020						At or for the three months ended September 30, 2019
(In thousands)	Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total
ACL on loans and leases:
Balance, beginning of period	$	291,520	$	67,002	$	358,522	$	164,344	$	47,327	$	211,671
Adoption of ASU No. 2016-13 (CECL)	—		—		—		—		—		—
Provision charged to expense	31,618		(8,865)		22,753		10,603		697		11,300
Charge-offs	(13,494)		(2,263)		(15,757)		(11,323)		(4,637)		(15,960)
Recoveries	2,025		2,268		4,293		176		1,965		2,141
Balance, end of period	$	311,669	$	58,142	$	369,811	$	163,800	$	45,352	$	209,152

	At or for the nine months ended September 30, 2020						At or for the nine months ended September 30, 2019
(In thousands)	Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total
ACL on loans and leases:
Balance, beginning of period	$	161,669	$	47,427	$	209,096	$	164,073	$	48,280	$	212,353
Adoption of ASU No. 2016-13 (CECL)	34,024		23,544		57,568		—		—		—
Provision charged to expense	147,466		(8,625)		138,841		26,513		5,287		31,800
Charge-offs	(34,362)		(9,630)		(43,992)		(28,263)		(15,113)		(43,376)
Recoveries	2,872		5,426		8,298		1,477		6,898		8,375
Balance, end of period	$	311,669	$	58,142	$	369,811	$	163,800	$	45,352	$	209,152
Individually evaluated for impairment	18,303		4,376		22,679		15,467		4,899		20,366
Collectively evaluated for impairment	$	293,366	$	53,766	$	347,132	$	148,333	$	40,453	$	188,786
Loan and lease balances:
Individually evaluated for impairment	$	158,324	$	149,583	$	307,907	$	139,129	$	131,502	$	270,631
Collectively evaluated for impairment	14,761,792		6,782,324		21,544,116		12,268,839		7,012,176		19,281,015
Loans and leases	$	14,920,116	$	6,931,907	$	21,852,023	$	12,407,968	$	7,143,678	$	19,551,646

Credit Quality Indicators. To measure credit risk for the commercial, commercial real estate, and equipment financing portfolios, the Company employs a dual grade credit risk grading system for estimating the PD and the LGD. The Company's credit risk grading system has not changed with the adoption of CECL. The credit risk grade system assigns a rating to each borrower and to the facility, which together form a Composite Credit Risk Profile. The credit risk grade system categorizes borrowers by common financial characteristics that measure the credit strength of borrowers and facilities by common structural characteristics. The Composite Credit Risk Profile has ten grades, with each grade corresponding to a progressively greater risk of loss. Grades (1)-(6) are considered pass ratings, and (7)-(10) are considered criticized as defined by the regulatory agencies. Risk ratings, assigned to differentiate risk within the portfolio, are reviewed on an ongoing basis and revised to reflect changes in a borrowers’ current financial position and outlook, risk profile, and the related collateral and structural position. Loan officers review updated financial information on at least an annual basis for all pass rated loans to assess the accuracy of the risk grade. Criticized loans undergo more frequent reviews and enhanced monitoring.

A (7) "Special Mention" credit has the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the asset. A (8) "Substandard" asset has a well-defined weakness that jeopardizes the full repayment of the debt. An asset rated (9) "Doubtful" has all of the same weaknesses as a substandard credit with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, improbable. Assets classified as (10) "Loss" in accordance with regulatory guidelines are considered uncollectible and charged off.

For residential and consumer loans, the most relevant credit characteristic is FICO score. FICO scores are a widely used credit score and range from 300 to 850. A lower FICO score is indicative of higher credit risk. FICO scores are updated at least quarterly.

The following table summarizes commercial, commercial real estate, and equipment financing loans and leases segregated by origination year and risk rating exposure under the Composite Credit Risk Profile grades as of September 30, 2020:

(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial non-mortgage
Pass	$	2,519,566	$	1,156,057	$	1,013,841	$	553,942	$	257,230	$	297,765	$	912,007	$	6,710,408
Special mention	817		73,688		20,314		341		8,422		2,302		21,233		127,117
Substandard	1,369		33,658		68,305		75,071		23,138		33,137		51,996		286,674
Doubtful	—		—		—		166		—		—		—		166
Total commercial non-mortgage	2,521,752		1,263,403		1,102,460		629,520		288,790		333,204		985,236		7,124,365
Asset-based
Pass	14,848		21,854		22,595		11,635		11,039		22,667		714,476		819,114
Special mention	—		1,667		800		—		—		978		63,392		66,837
Substandard	—		—		—		—		—		—		3,760		3,760
Total asset-based	14,848		23,521		23,395		11,635		11,039		23,645		781,628		889,711
Commercial real estate
Pass	646,507		1,473,602		1,296,427		605,375		595,915		1,329,377		28,106		5,975,309
Special mention	22		10,382		48,409		27,364		35,796		76,243		—		198,216
Substandard	821		989		23,095		68,828		2,444		37,865		—		134,042
Total commercial real estate	647,350		1,484,973		1,367,931		701,567		634,155		1,443,485		28,106		6,307,567
Equipment financing
Pass	203,498		144,384		75,993		31,921		52,328		26,319		—		534,443
Special mention	12,492		13,014		8,471		1,834		1,932		788		—		38,531
Substandard	2,380		5,498		5,563		2,430		4,802		4,826		—		25,499
Total equipment financing	218,370		162,896		90,027		36,185		59,062		31,933		—		598,473
Total commercial portfolio	$	3,402,320	$	2,934,793	$	2,583,813	$	1,378,907	$	993,046	$	1,832,267	$	1,794,970	$	14,920,116

The following table summarizes residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings as of September 30, 2020:

(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Residential
800+	$	253,913	$	314,759	$	69,592	$	205,691	$	316,264	$	905,892	$	—	$	2,066,111
740-799	458,499		355,548		81,018		164,777		194,784		516,385		—		1,771,011
670-739	161,600		144,798		43,790		77,823		80,481		283,164		—		791,656
580-669	12,316		19,803		7,260		12,010		11,836		102,055		—		165,280
579 and below	—		21,363		676		3,771		3,250		62,703		—		91,763
Total residential	886,328		856,271		202,336		464,072		606,615		1,870,199		—		4,885,821
Home equity
800+	22,727		17,095		27,269		18,031		19,328		66,906		564,318		735,674
740-799	20,580		16,472		23,739		11,659		12,765		49,507		446,759		581,481
670-739	12,122		10,847		10,808		10,506		9,290		45,013		285,776		384,362
580-669	447		2,257		3,346		2,297		1,964		19,707		91,009		121,027
579 and below	100		524		879		1,337		835		7,707		34,043		45,425
Total home equity	55,976		47,195		66,041		43,830		44,182		188,840		1,421,905		1,867,969
Other consumer
800+	1,345		3,436		1,901		581		115		173		6,851		14,402
740-799	10,419		17,858		9,665		1,491		503		344		6,402		46,682
670-739	21,089		49,734		19,855		4,158		1,616		520		5,676		102,648
580-669	2,440		4,247		1,744		600		253		180		1,623		11,087
579 and below	717		513		250		66		35		225		1,492		3,298
Total other consumer	36,010		75,788		33,415		6,896		2,522		1,442		22,044		178,117
Total consumer portfolio	978,314		979,254		301,792		514,798		653,319		2,060,481		1,443,949		6,931,907
Total commercial portfolio	3,402,320		2,934,793		2,583,813		1,378,907		993,046		1,832,267		1,794,970		14,920,116
Total loans and leases	$	4,380,634	$	3,914,047	$	2,885,605	$	1,893,705	$	1,646,365	$	3,892,748	$	3,238,919	$	21,852,023

Individually Assessed Loans and Leases

The following tables summarize individually assessed loans and leases:

	At September 30, 2020
(In thousands)	Unpaid Principal Balance		Amortized Cost		Amortized Cost No Allowance		Amortized Cost With Allowance		Related Valuation Allowance
Commercial non-mortgage	$	160,667	$	125,799	$	28,937	$	96,862	$	15,833
Asset-based	4,114		3,760		—		3,760		459
Commercial real estate	24,865		21,583		12,679		8,904		1,613
Equipment financing	7,661		7,182		2,659		4,523		398
Residential	110,542		100,443		63,457		36,986		3,293
Home equity	111,715		48,461		36,477		11,984		1,012
Other consumer	2,321		679		30		649		71
Total	$	421,885	$	307,907	$	144,239	$	163,668	$	22,679

	At December 31, 2019
(In thousands)	Unpaid Principal Balance		Amortized Cost		Amortized Cost No Allowance		Amortized Cost With Allowance		Related Valuation Allowance
Commercial non-mortgage	$	140,096	$	102,254	$	29,739	$	72,515	$	7,862
Asset-based	465		139		—		139		5
Commercial real estate	29,292		23,297		14,818		8,479		1,143
Equipment financing	5,591		5,433		2,159		3,274		418
Residential	98,790		90,096		56,231		33,865		3,618
Home equity	38,503		35,191		27,672		7,519		1,203
Other consumer (1)	—		—		—		—		—
Total	$	312,737	$	256,410	$	130,619	$	125,791	$	14,249

(1)Partially charged-off other consumer loans were included in collectively evaluated for impairment at December 31, 2019.

The following table summarizes average amortized cost and interest income recognized for individually assessed loans and leases:

	Three months ended September 30,												Nine months ended September 30,
	2020						2019						2020						2019
(In thousands)	Average Amortized Cost		Accrued Interest Income		Cash Basis Interest Income		Average Amortized Cost		Accrued Interest Income		Cash Basis Interest Income		Average Amortized Cost		Accrued Interest Income		Cash Basis Interest Income		Average Amortized Cost		Accrued Interest Income		Cash Basis Interest Income
Commercial non-mortgage	$	127,676	$	954	$	—	$	102,996	$	751	$	—	$	114,027	$	2,882	$	—	$	103,772	$	2,515	$	—
Asset-based	1,949		—		—		4,673		—		—		1,950		—		—		4,694		—		—
Commercial real estate	24,555		192		—		15,051		60		—		22,440		507		—		13,526		194		—
Equipment financing	7,488		—		—		4,718		—		—		6,308		—		—		5,901		—		—
Residential	103,608		741		289		97,917		862		271		95,270		2,352		1,149		99,599		2,682		817
Home equity	49,309		302		297		36,584		247		246		41,826		1,002		1,540		37,490		803		767
Other consumer	948		13		—		—		—		—		340		30		—		—		—		—
Total	$	315,533	$	2,202	$	586	$	261,939	$	1,920	$	517	$	282,161	$	6,773	$	2,689	$	264,982	$	6,194	$	1,584

Collateral Dependent Loans and Leases. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is substantially expected through the operation or sale of collateral. A collateral dependent loan is individually assessed based on the fair value of the collateral, less costs to sell, as of the reporting date. Commercial non-mortgage, asset based, and equipment financing are collateralized by equipment, inventory, receivables, or other non-real estate assets. Commercial real estate, residential, and home equity are collateralized by real estate. Collateral value on collateral dependent loans and leases was $135.3 million at September 30, 2020 and $109.8 million at December 31, 2019.

The following table summarizes whether, or not, individually assessed loans and leases are collateral dependent:

	At September 30, 2020						At December 31, 2019
(In thousands)	Collateral Dependent		Not Considered Collateral Dependent		Total		Collateral Dependent		Not Considered Collateral Dependent		Total
Commercial non-mortgage	$	11,337	$	114,462	$	125,799	$	10,682	$	91,572	$	102,254
Asset-based	—		3,760		3,760		—		139		139
Commercial real estate	15,708		5,875		21,583		14,097		9,200		23,297
Equipment financing	—		7,182		7,182		—		5,433		5,433
Residential	35,379		65,064		100,443		17,635		72,461		90,096
Home equity	28,857		19,604		48,461		17,136		18,055		35,191
Other consumer	—		679		679		—		—		—
Total amortized cost of CDA	$	91,281	$	216,626	$	307,907	$	59,550	$	196,860	$	256,410

Troubled Debt Restructurings

The following table summarizes information for TDRs:

(In thousands)	At September 30, 2020		At December 31, 2019
Accrual status	$	143,544	$	136,449
Non-accrual status	101,750		100,989
Total TDRs	$	245,294	$	237,438
Specific reserves for TDRs included in the balance of ACL on loans and leases	$	17,092	$	12,956
Additional funds committed to borrowers in TDR status	15,345		4,856

The portion of TDRs deemed to be uncollectible, $7.8 million and $11.0 million for the three months ended September 30, 2020 and 2019, respectively, and $10.8 million and $16.7 million for the nine months ended September 30, 2020 and 2019, respectively, were charged off.

The following table provides information on the type of concession for loans and leases modified as TDRs:

	Three months ended September 30,						Nine months ended September 30,
	2020			2019			2020			2019
	Number of Loans and Leases	Post- Modification Recorded Investment (1)		Number of Loans and Leases	Post- Modification Recorded Investment (1)		Number of Loans and Leases	Post- Modification Recorded Investment (1)		Number of Loans and Leases	Post- Modification Recorded Investment (1)
(Dollars in thousands)
Commercial non-mortgage
Extended Maturity	—	$	—	2	$	29	6	$	507	8	$	222
Adjusted Interest Rate	—	—		1	12		—	—		2	112
Maturity/Rate Combined	2	333		3	225		7	607		6	296
Other (2)	1	6		6	30,586		24	40,128		25	64,642
Commercial real estate
Extended Maturity	—	—		—	—		1	72		—	—
Maturity/Rate Combined	—	—		—	—		1	278		—	—
Other (2)	3	306		1	2,180		3	306		3	4,816
Residential
Extended Maturity	1	134		1	67		3	485		5	1,007
Maturity/Rate Combined	4	425		1	368		9	1,123		14	2,216
Other (2)	2	202		2	243		22	3,877		6	785
Home equity
Extended Maturity	1	31		1	134		3	188		5	504
Maturity/Rate Combined	1	15		2	30		2	28		4	140
Other (2)	15	506		8	375		89	6,018		27	1,595
Total TDRs	30	$	1,958	28	$	34,249	170	$	53,617	105	$	76,335

(1)Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of the restructurings was not significant.

(2)Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.

There were no significant amounts of loans and leases modified as TDRs within the previous 12 months and for which there was a payment default for the three and nine months ended September 30, 2020, while there were 4 loans and leases in the commercial portfolio with an amortized cost of $3.9 million and one loan in the consumer portfolio with an amortized cost of $0.1 million for the three and nine months ended September 30, 2019.

TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows:

(In thousands)	At September 30, 2020		At December 31, 2019
Pass	$	12,591	$	3,952
Special Mention	—		63
Substandard	111,613		104,277
Doubtful	166		3,860
Total	$	124,370	$	112,152