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Loans and Leases

12 Months Ended

Dec. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

The following table summarizes loans and leases:


	At December 31,
(In thousands)	2020		2019
Commercial non-mortgage	$	7,085,076	$	5,296,611
Asset-based	890,598		1,046,886
Commercial real estate	6,322,637		5,949,339
Equipment financing	602,224		537,341
Commercial portfolio	14,900,535		12,830,177
Residential	4,782,016		4,972,685
Home equity	1,802,865		2,014,544
Other consumer	155,799		219,580
Consumer portfolio	6,740,680		7,206,809
Loans and leases (1) (2) (3)	$	21,641,215	$	20,036,986

(1)Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(10.5) million and $17.6 million at December 31, 2020 and 2019, respectively. The change in net balance is driven by deferred fees on PPP loans.

(2)At December 31, 2020, the Company had pledged $7.7 billion of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston.

(3)Loan balances exclude accrued interest receivable of $57.8 million and $59.0 million at December 31, 2020 and 2019, respectively, which is included in accrued interest receivable and other assets in the accompanying Consolidated Balance Sheets.

Equipment financing includes net investment in leases of $236.1 million and $169.3 million at December 31, 2020 and 2019, respectively. Total undiscounted cash flows, primarily due within the next five years, amounted to $256.3 million at December 31, 2020. This lessor activity resulted in interest income of $7.1 million and $5.5 million for year ended December 31, 2020 and 2019, respectively.

Loans and Leases Aging

The following tables summarize the aging of loans and leases:


	At December 31, 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	$	612	$	903	$	445	$	64,073	$	66,033	$	7,019,043	$	7,085,076
Asset-based	1,174		—		—		2,594		3,768		886,830		890,598
Commercial real estate	2,400		619		—		21,231		24,250		6,298,387		6,322,637
Equipment financing	5,107		2,308		—		7,299		14,714		587,510		602,224
Commercial portfolio	9,293		3,830		445		95,197		108,765		14,791,770		14,900,535
Residential	4,334		6,330		—		41,081		51,745		4,730,271		4,782,016
Home equity	5,500		1,771		—		31,030		38,301		1,764,564		1,802,865
Other consumer	878		601		—		652		2,131		153,668		155,799
Consumer portfolio	10,712		8,702		—		72,763		92,177		6,648,503		6,740,680
Total	$	20,005	$	12,532	$	445	$	167,960	$	200,942	$	21,440,273	$	21,641,215


	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
Commercial portfolio	8,843		1,363		—		76,504		86,710		12,743,467		12,830,177
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
Consumer portfolio	19,702		12,799		—		74,555		107,056		7,099,753		7,206,809
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 December 31,
	2020				2019
(In thousands)	Nonaccrual		Nonaccrual With No Allowance		Nonaccrual		Nonaccrual With No Allowance
Commercial non-mortgage	$	64,073	$	16,985	$	59,369	$	13,584
Asset-based	2,594		—		139		—
Commercial real estate	21,231		15,529		11,563		4,717
Equipment financing	7,299		2,983		5,433		2,159
Commercial portfolio	95,197		35,497		76,504		20,460
Residential	41,081		29,843		43,193		19,271
Home equity	31,030		24,091		30,170		15,195
Other consumer	652		2		1,192		—
Consumer portfolio	72,763		53,936		74,555		34,466
Total	$	167,960	$	89,433	$	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 $9.7 million, $11.3 million, and $9.7 million for the years ended December 31, 2020, 2019, and 2018, respectively.

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 Years ended December 31,
	2020						2019						2018
(In thousands)	Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total
ACL on loans and leases:
Beginning balance	$	161,669	$	47,427	$	209,096	$	164,073	$	48,280	$	212,353	$	144,746	$	55,248	$	199,994
Adoption of ASU No. 2016-13 (CECL)	34,024		23,544		57,568		—		—		—		—		—		—
Provision charged to expense	156,336		(18,488)		137,848		29,174		8,626		37,800		35,356		6,644		42,000
Charge-offs	(42,925)		(12,408)		(55,333)		(33,327)		(19,153)		(52,480)		(20,704)		(22,683)		(43,387)
Recoveries	3,140		7,112		10,252		1,749		9,674		11,423		4,675		9,071		13,746
Ending balance	$	312,244	$	47,187	$	359,431	$	161,669	$	47,427	$	209,096	$	164,073	$	48,280	$	212,353
Individually evaluated for impairment	11,687		4,450		16,137		9,428		4,821		14,249		9,681		5,669		15,350
Collectively evaluated for impairment	$	300,557	$	42,737	$	343,294	$	152,241	$	42,606	$	194,847	$	154,392	$	42,611	$	197,003

Loan and lease balances:
Individually evaluated for impairment	$	163,655	$	145,767	$	309,422	$	131,123	$	125,287	$	256,410	$	116,655	$	142,675	$	259,330
Collectively evaluated for impairment	14,736,880		6,594,913		21,331,793		12,699,054		7,081,522		19,780,576		11,535,493		6,670,666		18,206,159
Loans and leases	$	14,900,535	$	6,740,680	$	21,641,215	$	12,830,177	$	7,206,809	$	20,036,986	$	11,652,148	$	6,813,341	$	18,465,489

The increase in ACL at December 31, 2020 as compared to December 31, 2019, is primarily attributable to the initial adoption of the CECL lifetime loss accounting model and the impact of current and forecasted macroeconomic conditions on credit models, which were negatively affected by the emergence of the COVID-19 pandemic in 2020.

Credit Quality Indicators. To measure credit risk for the commercial portfolio, the Company employs a dual grade credit risk grading system for estimating the PD and LGD. This 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) to (6) are considered pass ratings and (7) to (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" rating has a potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the credit. A (8)-"Substandard" rating has a well-defined weakness that jeopardizes the full repayment of the debt. A (9)-"Doubtful" rating 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. Credits when classified as (10)-"Loss," in accordance with regulatory guidelines, are considered uncollectible and charged off.

To measure credit risk for the consumer portfolio, the most relevant credit characteristic is the FICO score, which is a widely used credit scoring system that ranges 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 December 31, 2020:


(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial non-mortgage
Pass	$	2,771,373	$	1,052,080	$	907,110	$	481,321	$	231,280	$	218,001	$	936,592	$	6,597,757
Special mention	32,535		33,969		62,034		435		8,357		13,757		38,496		189,583
Substandard	54,716		51,798		66,324		36,159		15,535		23,957		49,084		297,573
Doubtful	—		—		—		163		—		—		—		163
Commercial non-mortgage	2,858,624		1,137,847		1,035,468		518,078		255,172		255,715		1,024,172		7,085,076
Asset-based
Pass	26,344		15,960		23,123		11,333		10,963		16,484		741,336		845,543
Special mention	—		—		775		—		—		—		41,687		42,462
Substandard	—		2,504		—		—		—		—		89		2,593
Asset-based	26,344		18,464		23,898		11,333		10,963		16,484		783,112		890,598
Commercial real estate
Pass	965,582		1,461,201		1,242,322		527,931		554,630		1,165,331		28,113		5,945,110
Special mention	27		10,385		70,704		37,539		35,617		69,832		—		224,104
Substandard	817		1,132		21,923		73,621		2,962		52,968		—		153,423
Commercial real estate	966,426		1,472,718		1,334,949		639,091		593,209		1,288,131		28,113		6,322,637
Equipment financing
Pass	249,370		135,263		68,092		26,433		43,469		22,879		—		545,506
Special mention	7,934		11,043		6,981		1,220		1,577		788		—		29,543
Substandard	7,483		6,169		5,749		2,460		4,743		571		—		27,175
Equipment financing	264,787		152,475		80,822		30,113		49,789		24,238		—		602,224
Commercial portfolio	$	4,116,181	$	2,781,504	$	2,475,137	$	1,198,615	$	909,133	$	1,584,568	$	1,835,397	$	14,900,535

The following table summarizes residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings as of December 31, 2020:


(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Residential
800+	$	360,336	$	283,755	$	61,048	$	178,849	$	268,044	$	805,537	$	—	$	1,957,569
740-799	654,973		288,173		58,249		133,416		176,286		492,720		—		1,803,817
670-739	199,329		118,620		39,125		75,375		76,666		248,268		—		757,383
580-669	17,151		19,389		8,884		11,843		12,225		96,333		—		165,825
579 and below	—		36,498		673		3,278		3,179		53,794		—		97,422
Residential	1,231,789		746,435		167,979		402,761		536,400		1,696,652		—		4,782,016
Home equity
800+	30,604		16,567		25,205		14,439		17,192		59,956		542,600		706,563
740-799	34,797		13,565		19,715		11,073		12,839		43,802		434,271		570,062
670-739	13,753		8,855		10,761		10,206		7,318		44,025		275,691		370,609
580-669	1,708		2,172		2,660		2,234		2,316		16,680		86,126		113,896
579 and below	129		919		880		1,070		1,073		7,163		30,501		41,735
Home equity	80,991		42,078		59,221		39,022		40,738		171,626		1,369,189		1,802,865
Other consumer
800+	2,827		5,725		2,610		658		115		190		7,171		19,296
740-799	12,317		21,036		8,925		1,493		457		263		5,119		49,610
670-739	14,761		31,952		11,843		2,284		665		228		8,403		70,136
580-669	2,344		5,419		2,360		793		194		124		1,570		12,804
579 and below	608		982		500		183		37		215		1,428		3,953
Other consumer	32,857		65,114		26,238		5,411		1,468		1,020		23,691		155,799
Consumer portfolio	1,345,637		853,627		253,438		447,194		578,606		1,869,298		1,392,880		6,740,680

Commercial portfolio	4,116,181		2,781,504		2,475,137		1,198,615		909,133		1,584,568		1,835,397		14,900,535
Loans and leases	$	5,461,818	$	3,635,131	$	2,728,575	$	1,645,809	$	1,487,739	$	3,453,866	$	3,228,277	$	21,641,215

The following table presents the required credit quality disclosures prior to the adoption of CECL:


	At December 31, 2019
(In thousands)	Commercial		Commercial Real Estate		Equipment Financing
(1) - (6) Pass	$	5,985,338	$	5,860,981	$	528,561
(7) Special Mention	94,809		26,978		808
(8) Substandard	259,490		61,380		7,972
(9) Doubtful	3,860		—		—
Total	$	6,343,497	$	5,949,339	$	537,341

Individually Assessed Loans and Leases

The following tables summarize individually assessed loans and leases:


	At December 31, 2020
(In thousands)	Unpaid Principal Balance		Amortized Cost		Amortized Cost No Allowance		Amortized Cost With Allowance		Related Allowance
Commercial non-mortgage	$	172,069	$	119,884	$	55,742	$	64,142	$	9,665
Asset-based	2,989		2,594		—		2,594		50
Commercial real estate	37,177		33,879		25,931		7,948		1,610
Equipment financing	7,770		7,298		2,983		4,315		362
Residential	108,077		98,164		58,915		39,249		3,357
Home equity	109,156		46,950		34,335		12,615		988
Other consumer	2,381		653		2		651		105
Total	$	439,619	$	309,422	$	177,908	$	131,514	$	16,137


	At December 31, 2019
(In thousands)	Unpaid Principal Balance		Amortized Cost		Amortized Cost No Allowance		Amortized Cost With Allowance		Related 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	—		—		—		—		—
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:


	Years ended December 31,
	2020						2019						2018
(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
Commercial non-mortgage	$	111,069	$	3,836	$	—	$	100,771	$	3,241	$	—	$	85,585	$	3,064	$	—
Asset based	1,367		—		—		182		—		—		407		—		—
Commercial real estate	28,588		699		—		17,062		385		—		11,027		198		—
Equipment financing	6,366		—		—		5,874		—		—		4,820		112		—
Residential	94,130		3,484		1,442		96,814		3,502		1,078		108,913		3,781		1,106
Home equity	41,070		1,315		1,826		37,167		1,045		981		42,290		1,158		980
Other consumer	327		32		—		—		—		—		—		—		—
Total	$	282,917	$	9,366	$	3,268	$	257,870	$	8,173	$	2,059	$	253,042	$	8,313	$	2,086

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 $150.3 million at December 31, 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 December 31, 2020						At December 31, 2019
(In thousands)	Collateral Dependent		Not Considered Collateral Dependent		Total		Collateral Dependent		Not Considered Collateral Dependent		Total
Commercial non-mortgage	$	11,074	$	108,810	$	119,884	$	10,682	$	91,572	$	102,254
Asset-based	2,504		90		2,594		—		139		139
Commercial real estate	28,482		5,397		33,879		14,097		9,200		23,297
Equipment financing	—		7,298		7,298		—		5,433		5,433
Residential	33,980		64,184		98,164		17,635		72,461		90,096
Home equity	26,796		20,154		46,950		17,136		18,055		35,191
Other consumer	—		653		653		—		—		—
Total amortized cost of CDA	$	102,836	$	206,586	$	309,422	$	59,550	$	196,860	$	256,410

Troubled Debt Restructurings

The following table summarizes information for TDRs:


	At December 31,
(Dollars in thousands)	2020		2019
Accrual status	$	140,089	$	136,449
Non-accrual status	95,338		100,989
Total TDRs	$	235,427	$	237,438
Specific reserves for TDRs included in the balance of ACL on loans and leases	$	12,728	$	12,956
Additional funds committed to borrowers in TDR status	12,895		4,856

The portion of TDRs deemed to be uncollectible, $18.4 million, $21.8 million, and $14.3 million, for the years ended December 31, 2020, 2019 and 2018, respectively, were charged-off.

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


	Years ended December 31,
	2020			2019			2018
	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 portfolio
Extended Maturity	12	$	1,142	18	$	10,769	18	$	1,656
Adjusted Interest Rate	1	96		2	112		—	—
Maturity/Rate Combined	9	984		11	673		18	10,327
Other (2)	27	40,434		31	70,002		21	46,359
Consumer portfolio
Extended Maturity	6	673		13	1,926		5	489
Maturity/Rate Combined	15	1,467		19	2,381		15	1,565
Other (2)	122	10,895		42	2,908		66	6,385
Total TDRs	192	$	55,691	136	$	88,771	143	$	66,781

(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.

With respect to loans and leases modified as TDRs within the previous 12 months and for which there was a payment default, there were 4 loans and leases in the commercial portfolio with an amortized cost of $12.4 million for the year ended December 31, 2020. There were 7 loans and leases in the commercial portfolio with an amortized cost of $2.6 million for the year ended December 31, 2019. There were no significant amounts for the year ended December 31, 2018.

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


	At December 31,
(In thousands)	2020		2019
Pass	$	12,462	$	3,952
Special Mention	—		63
Substandard	105,070		104,277
Doubtful	163		3,860
Total	$	117,695	$	112,152