Loans and Leases

6 Months Ended

Jun. 30, 2021

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases

Loans and Leases

The following table summarizes loans and leases:

(In thousands)	At June 30, 2021		At December 31, 2020
Commercial non-mortgage	$	6,843,415	$	7,085,076
Asset-based	943,961		890,598
Commercial real estate	6,410,672		6,322,637
Equipment financing	630,343		602,224
Commercial portfolio	14,828,391		14,900,535
Residential	4,856,302		4,782,016
Home equity	1,677,136		1,802,865
Other consumer	113,172		155,799
Consumer portfolio	6,646,610		6,740,680
Loans and leases (1) (2) (3)	$	21,475,001	$	21,641,215

(1)Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(13.5) million and $(10.5) million at June 30, 2021 and December 31, 2020, respectively.

(2)At June 30, 2021, the Company had pledged $7.3 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 $54.6 million and $57.8 million at June 30, 2021 and December 31, 2020, respectively, which is included in accrued interest receivable and other assets on the accompanying Condensed Consolidated Balance Sheets.

Equipment financing includes net investment in leases of $222.3 million and $236.1 million at June 30, 2021 and December 31, 2020, respectively. Total undiscounted cash flows, primarily due within the next five years, amounted to $241.7 million at June 30, 2021. This lessor activity resulted in interest income of $1.9 million and $1.8 million for the three months ended June 30, 2021 and 2020, respectively, and $3.8 million and $3.4 million for the six months ended June 30, 2021 and 2020, respectively.

Loans and Leases Aging

The following table summarizes the aging of loans and leases:

	At June 30, 2021
(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	$	1,017	$	127	$	25	$	49,513	$	50,682	$	6,792,733	$	6,843,415
Asset-based	—		—		—		2,375		2,375		941,586		943,961
Commercial real estate	1,324		364		—		12,695		14,383		6,396,289		6,410,672
Equipment financing	1,578		438		—		8,162		10,178		620,165		630,343
Commercial portfolio	3,919		929		25		72,745		77,618		14,750,773		14,828,391
Residential	3,891		805		—		21,472		26,168		4,830,134		4,856,302
Home equity	5,429		2,604		—		25,975		34,008		1,643,128		1,677,136
Other consumer	479		336		—		412		1,227		111,945		113,172
Consumer portfolio	9,799		3,745		—		47,859		61,403		6,585,207		6,646,610
Total	$	13,718	$	4,674	$	25	$	120,604	$	139,021	$	21,335,980	$	21,475,001

	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

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

	At June 30, 2021				At December 31, 2020
(In thousands)	Non-accrual		Non-accrual With No Allowance		Non-accrual		Non-accrual With No Allowance
Commercial non-mortgage	$	49,513	$	8,386	$	64,073	$	16,985
Asset-based	2,375		2,375		2,594		—
Commercial real estate	12,695		554		21,231		15,529
Equipment financing	8,162		2,538		7,299		2,983
Commercial portfolio	72,745		13,853		95,197		35,497
Residential	21,472		12,680		41,081		29,843
Home equity	25,975		20,620		31,030		24,091
Other consumer	412		6		652		2
Consumer portfolio	47,859		33,306		72,763		53,936
Total	$	120,604	$	47,159	$	167,960	$	89,433

Interest on non-accrual residential and home equity loans, which would have been recorded as additional interest income had the loans been current in accordance with the original terms, totaled $2.9 million and $3.8 million for the three months ended June 30, 2021 and 2020, respectively, and $6.1 million and $6.8 million for the six months ended June 30, 2021 and 2020, respectively.

Refer to Note 1 to the Consolidated Financial Statements included in the Company's Form 10-K for the year ended December 31, 2020, for details of non-accrual policies.

Allowance for Credit Losses on Loans and Leases

The following table summarizes 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 June 30,
	2021						2020
(In thousands)	Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total
ACL on loans and leases:
Balance, beginning of period	$	283,906	$	44,445	$	328,351	$	261,926	$	73,005	$	334,931
(Benefit) provision	(21,077)		(497)		(21,574)		44,605		(4,602)		40,003
Charge-offs	(594)		(2,808)		(3,402)		(15,294)		(2,780)		(18,074)
Recoveries	836		3,734		4,570		283		1,379		1,662
Balance, end of period	$	263,071	$	44,874	$	307,945	$	291,520	$	67,002	$	358,522

	At or for the six months ended June 30,
	2021						2020
(In thousands)	Commercial Portfolio		Consumer Portfolio		Total		Commercial Portfolio		Consumer Portfolio		Total
ACL on loans and leases:
Balance, beginning of period	$	312,244	$	47,187	$	359,431	$	161,669	$	47,427	$	209,096
Adoption of ASU No. 2016-13 (CECL)	—		—		—		34,024		23,544		57,568
(Benefit) provision	(44,730)		(2,603)		(47,333)		115,848		240		116,088
Charge-offs	(6,915)		(5,782)		(12,697)		(20,868)		(7,367)		(28,235)
Recoveries	2,472		6,072		8,544		847		3,158		4,005
Balance, end of period	$	263,071	$	44,874	$	307,945	$	291,520	$	67,002	$	358,522
Individually evaluated for impairment	11,537		4,560		16,097		15,271		4,484		19,755
Collectively evaluated for impairment	$	251,534	$	40,314	$	291,848	$	276,249	$	62,518	$	338,767
Loan and lease balances:
Individually evaluated for impairment	$	128,937	$	110,521	$	239,458	$	165,010	$	158,146	$	323,156
Collectively evaluated for impairment	14,699,454		6,536,089		21,235,543		14,589,073		6,890,288		21,479,361
Loans and leases	$	14,828,391	$	6,646,610	$	21,475,001	$	14,754,083	$	7,048,434	$	21,802,517

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. 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 grades (7) to (10) are considered criticized, as defined by the regulatory agencies. Risk ratings assigned in order 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 the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the credit. An (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 improbably, given current facts, conditions, and values. Credits when classified as (10) - "Loss", in accordance with regulatory guidelines, are considered uncollectible and charged off.

The following tables summarize 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 at June 30, 2021 and December 31, 2020:

	At June 30, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial non-mortgage
Pass	$	1,380,022	$	1,635,700	$	921,484	$	705,932	$	363,486	$	398,483	$	1,068,452	$	6,473,559
Special mention	—		8,973		48,957		56,527		119		16,621		13,134		144,331
Substandard	106		66,050		20,294		66,010		24,011		23,257		25,797		225,525
Commercial non-mortgage	1,380,128		1,710,723		990,735		828,469		387,616		438,361		1,107,383		6,843,415
Asset-based
Pass	3,744		27,329		15,127		19,540		6,431		25,584		779,349		877,104
Special mention	—		—		—		725		—		—		63,757		64,482
Substandard	—		—		2,375		—		—		—		—		2,375
Asset-based	3,744		27,329		17,502		20,265		6,431		25,584		843,106		943,961
Commercial real estate
Pass	447,624		925,584		1,451,104		1,130,513		491,810		1,565,554		24,998		6,037,187
Special mention	440		2,221		9,182		79,499		54,481		113,566		—		259,389
Substandard	—		808		780		21,567		43,028		47,913		—		114,096
Commercial real estate	448,064		928,613		1,461,066		1,231,579		589,319		1,727,033		24,998		6,410,672
Equipment financing
Pass	132,213		219,007		123,041		57,096		19,368		47,107		—		597,832
Special mention	—		885		4,362		64		99		1,165		—		6,575
Substandard	—		9,630		4,943		6,702		2,180		2,481		—		25,936
Equipment financing	132,213		229,522		132,346		63,862		21,647		50,753		—		630,343
Commercial portfolio	$	1,964,149	$	2,896,187	$	2,601,649	$	2,144,175	$	1,005,013	$	2,241,731	$	1,975,487	$	14,828,391

	At 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

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 tables summarize residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings at June 30, 2021 and December 31, 2020:

	At June 30, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Residential
800+	$	216,867	$	443,796	$	189,777	$	41,846	$	140,310	$	871,273	$	—	$	1,903,869
740-799	529,874		526,584		210,767		49,417		100,206		550,153		—		1,967,001
670-739	187,435		158,404		85,483		24,678		49,323		265,179		—		770,502
580-669	15,047		11,478		8,213		4,887		11,003		86,098		—		136,726
579 and below	270		411		37,612		1,831		1,216		36,864		—		78,204
Residential	949,493		1,140,673		531,852		122,659		302,058		1,809,567		—		4,856,302
Home equity
800+	16,759		32,346		12,233		19,613		13,742		66,580		516,121		677,394
740-799	22,141		27,472		10,892		15,092		8,752		43,852		414,822		543,023
670-739	7,528		11,250		7,484		10,464		7,055		42,004		239,265		325,050
580-669	42		1,426		1,923		1,539		2,527		16,935		71,886		96,278
579 and below	110		365		718		984		368		6,214		26,632		35,391
Home equity	46,580		72,859		33,250		47,692		32,444		175,585		1,268,726		1,677,136
Other consumer
800+	287		1,912		4,131		1,542		436		139		6,735		15,182
740-799	354		8,355		13,497		5,221		766		394		8,145		36,732
670-739	2,094		11,331		21,734		6,653		1,312		362		6,554		50,040
580-669	114		1,604		4,060		1,267		490		259		1,337		9,131
579 and below	93		189		294		241		83		47		1,140		2,087
Other consumer	2,942		23,391		43,716		14,924		3,087		1,201		23,911		113,172
Consumer portfolio	999,015		1,236,923		608,818		185,275		337,589		1,986,353		1,292,637		6,646,610
Commercial portfolio	1,964,149		2,896,187		2,601,649		2,144,175		1,005,013		2,241,731		1,975,487		14,828,391
Loans and leases	$	2,963,164	$	4,133,110	$	3,210,467	$	2,329,450	$	1,342,602	$	4,228,084	$	3,268,124	$	21,475,001

	At 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

Individually Assessed Loans and Leases

The following table summarizes individually assessed loans and leases:

	At June 30, 2021
(In thousands)	Unpaid Principal Balance		Amortized Cost		Amortized Cost No Allowance		Amortized Cost With Allowance		Related Allowance
Commercial non-mortgage	$	122,891	$	97,270	$	43,936	$	53,334	$	8,488
Asset-based	2,499		2,375		2,375		—		—
Commercial real estate	24,581		21,130		7,329		13,801		1,808
Equipment financing	8,621		8,162		2,538		5,624		1,241
Residential	72,749		68,823		36,092		32,731		2,770
Home equity	46,364		41,286		30,162		11,124		1,668
Other consumer	412		412		6		406		122
Total	$	278,117	$	239,458	$	122,438	$	117,020	$	16,097

	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

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

	Three months ended June 30,												Six months ended June 30,
	2021						2020						2021						2020
(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	$	105,811	$	682	$	—	$	136,483	$	875	$	—	$	108,577	$	1,541	$	—	$	115,903	$	1,928	$	—
Asset-based	2,389		—		—		138		—		—		2,485		—		—		139		—		—
Commercial real estate	23,721		126		—		26,017		169		—		27,505		308		—		25,411		315		—
Equipment financing	7,121		—		—		8,373		—		—		7,730		—		—		6,613		—		—
Residential	80,670		577		168		121,488		781		230		83,494		1,216		441		113,806		1,611		860
Home equity	44,120		287		302		50,573		309		413		44,118		509		516		43,863		700		1,243
Other consumer	504		—		—		1,121		—		—		533		—		—		609		17		—
Total	$	264,336	$	1,672	$	470	$	344,193	$	2,134	$	643	$	274,442	$	3,574	$	957	$	306,344	$	4,571	$	2,103

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 loans are collateralized by equipment, inventory, receivables, or other non-real estate assets. Commercial real estate, residential, and home equity loans are collateralized by real estate. Collateral value on collateral dependent loans and leases was $107.0 million at June 30, 2021 and $150.3 million at December 31, 2020.

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

	At June 30, 2021						At December 31, 2020
(In thousands)	Collateral Dependent		Not Considered Collateral Dependent		Total		Collateral Dependent		Not Considered Collateral Dependent		Total
Commercial non-mortgage	$	18,496	$	78,774	$	97,270	$	11,074	$	108,810	$	119,884
Asset-based	2,375		—		2,375		2,504		90		2,594
Commercial real estate	17,598		3,532		21,130		28,482		5,397		33,879
Equipment financing	—		8,162		8,162		—		7,298		7,298
Residential	17,649		51,174		68,823		33,980		64,184		98,164
Home equity	22,494		18,792		41,286		26,796		20,154		46,950
Other consumer	—		412		412		—		653		653
Total amortized cost	$	78,612	$	160,846	$	239,458	$	102,836	$	206,586	$	309,422

Troubled Debt Restructurings

The following table summarizes information for TDRs:

(In thousands)	At June 30, 2021		At December 31, 2020
Accrual status	$	119,707	$	140,089
Non-accrual status	64,636		95,338
Total TDRs	$	184,343	$	235,427
Specific reserves for TDRs included in the balance of ACL on loans and leases	$	11,726	$	12,728
Additional funds committed to borrowers in TDR status	13,512		12,895

The portion of TDRs deemed to be uncollectible, $0.3 million and $1.9 million for the three months ended June 30, 2021 and 2020, respectively, and $2.2 million and $3.1 million for the six months ended June 30, 2021 and 2020, respectively, were charged off.

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

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
	Number of Loans	Post- Modification Recorded Investment (1)		Number of Loans	Post- Modification Recorded Investment (1)		Number of Loans	Post- Modification Recorded Investment (1)		Number of Loans	Post- Modification Recorded Investment (1)
(Dollars in thousands)
Commercial portfolio
Extended Maturity	1	$	50	5	$	475	8	$	740	7	$	579
Maturity/Rate Combined	5	173		—	—		6	210		6	552
Other (2)	1	1		13	12,985		3	114		23	40,122
Consumer portfolio
Extended Maturity	—	—		3	244		2	127		4	508
Maturity/Rate Combined	3	415		2	255		8	1,426		6	711
Other (2)	7	535		80	7,461		16	1,201		94	9,187
Total TDRs	17	$	1,174	103	$	21,420	43	$	3,818	140	$	51,659

(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 modified as TDRs within the previous 12 months and for which there was a payment default for the three and six months ended June 30, 2021 and 2020.

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

(In thousands)	At June 30, 2021		At December 31, 2020
Pass	$	8,740	$	12,462
Special Mention	8,670		—
Substandard	72,996		105,070
Doubtful	—		163
Total	$	90,406	$	117,695