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Loan Portfolio and Credit Quality
 3 Months Ended
Mar. 31, 2021
Loans and Leases Receivable Disclosure [Abstract]  
Loan Portfolio and Credit Quality Loan Portfolio and Credit Quality
The Bank’s lending activities are conducted principally in the regions of New England, Northern California, and Southern California. The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial loans, commercial tax-exempt loans, construction and land loans, and home equity and other consumer loans. Most loans are secured by borrowers’ personal or business assets. The ability of the Bank’s single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic conditions within the Bank’s lending areas. Commercial, construction, and land borrowers’ ability to repay is generally dependent upon the health of the economy and real estate values, including the performance of the construction sector. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio is susceptible to changing conditions in the New England, Northern California, and Southern California economies and real estate markets.
The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated:
 March 31, 2021December 31, 2020
 (In thousands)
Commercial and industrial$668,217 $558,343 
Paycheck Protection Program351,170 312,356 
Commercial tax-exempt488,507 442,159 
Commercial real estate2,697,677 2,757,375 
Construction and land181,482 159,204 
Residential2,632,554 2,677,464 
Home equity71,752 77,364 
Consumer and other124,966 120,044 
Total$7,216,325 $7,104,309 
The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated:
March 31, 2021December 31, 2020
(In thousands)
Commercial and industrial$4,766 $4,394 
Commercial real estate5,859 5,261 
Residential14,475 13,780 
Home equity651 415 
Consumer and other13 1 
Total$25,764 $23,851 
The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing, as of both March 31, 2021 and December 31, 2020. The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria.
The following tables show the payment status of loans receivable by class of receivable as of the dates indicated:
March 31, 2021
Accruing Past DueNonaccrual Loans
30-59 Days Past Due 60-89 Days Past DueTotal Accruing Past DueCurrent30-89 Days Past Due90 Days or
Greater
Past Due		Total Non-Accrual LoansCurrent Accruing LoansTotal
Loans
Receivable
(In thousands)
Commercial and industrial$2,914 $— $2,914 $1,832 $1,914 $1,020 $4,766 $660,537 $668,217 
Paycheck Protection Program— — — — — — — 351,170 351,170 
Commercial tax-exempt— — — — — — — 488,507 488,507 
Commercial real estate— — — 601 — 5,258 5,859 2,691,818 2,697,677 
Construction and land— — — — — — — 181,482 181,482 
Residential4,044 — 4,044 8,838 1,655 3,982 14,475 2,614,035 2,632,554 
Home equity104 — 104 611 — 40 651 70,997 71,752 
Consumer and other173 14 187 13 — — 13 124,766 124,966 
Total$7,235 $14 $7,249 $11,895 $3,569 $10,300 $25,764 $7,183,312 $7,216,325 
December 31, 2020
Accruing Past DueNonaccrual Loans
30-59 Days Past Due60-89 Days Past DueTotal Accruing Past DueCurrent30-89 Days Past Due90 Days or Greater Past DueTotal Non-Accrual LoansCurrent Accruing LoansTotal Loans Receivable
(In thousands)
Commercial and industrial$1,837 $522 $2,359 $3,934 $87 $373 $4,394 $551,590 $558,343 
Paycheck Protection Program— — — — — — — 312,356 312,356 
Commercial tax-exempt— — — — — — — 442,159 442,159 
Commercial real estate136 491 627 — — 5,261 5,261 2,751,487 2,757,375 
Construction and land— — — — — — — 159,204 159,204 
Residential10,960 4,538 15,498 8,183 1,521 4,076 13,780 2,648,186 2,677,464 
Home equity1,107 256 1,363 228 — 187 415 75,586 77,364 
Consumer and other15 — 15 — 1 — 1 120,028 120,044 
Total$14,055 $5,807 $19,862 $12,345 $1,609 $9,897 $23,851 $7,060,596 $7,104,309 
Nonaccrual and delinquent loans are affected by many factors, such as economic and business conditions, interest rates, unemployment levels, and real estate collateral values, among others. In periods of prolonged economic decline, borrowers may become more severely affected over time as liquidity levels decline and the borrower’s ability to continue to make payments deteriorates.
With respect to real estate collateral values, the declines from the peak, as well as the value of the real estate at the time of origination versus the current value, can impact the level of problem loans. For instance, if the loan to value ratio at the time of renewal has increased due to the decline in the real estate value since origination, the loan may no longer meet the Bank’s underwriting standards and may be considered for classification as a problem loan dependent upon a review of risk factors. There could be an increase in these situations as the economic conditions brought on by the COVID-19 pandemic could lead to a decline in collateral values.
Generally, when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals as deemed necessary, especially during periods of declining property values.
The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Loans with modified terms under the CARES Act are not considered past due if they are complying with the modified terms.
Credit quality indicators
The Bank uses a risk rating system to monitor the credit quality of its loan portfolio. Loan classifications are assessments made by the Bank of the status of the loans based on the facts and circumstances known to the Bank, including management’s judgment, at the time of assessment. Some or all of these classifications may change in the future if there are unexpected changes in the financial condition of the borrower, including but not limited to, changes resulting from deterioration in employment levels, general business and economic conditions on a national basis or in the local markets in which the Bank operates adversely affecting, among other things, real estate values. Such conditions, as well as other factors which adversely affect borrowers’ ability to service or repay loans, typically result in changes in loan default and charge-off rates, and increased provisions for loan losses, which would adversely affect the Company’s financial performance and financial condition. These circumstances are not entirely foreseeable and, as a result, it may not be possible to accurately reflect them in the Company’s analysis of credit risk. Generally, only commercial loans, including commercial real estate, other commercial and industrial loans, commercial tax-exempt loans, and construction and land loans, are given a numerical grade.
A summary of the rating system used by the Bank is included here from Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, follows:
Pass - All loans graded as pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. For residential, home equity and consumer loans, the Bank classifies loans as pass unless there is known information such as delinquency or client requests for modifications which, due to financial difficulty, would then generally result in a risk rating such as special mention or more severe depending on the factors.
Special mention - Loans rated in this category are defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the Bank’s credit position. These loans are currently protected but have the potential to deteriorate to a substandard rating. For commercial loans, the borrower’s financial performance may be inconsistent or below forecast, creating the possibility of liquidity problems and shrinking debt service coverage. In loans having this rating, the primary source of repayment is still good, but there is increasing reliance on collateral or guarantor support. Collectability of the loan is not yet in jeopardy. In particular, loans in this category are considered more variable than other categories, since they will typically migrate through categories more quickly.
Substandard - Loans rated in this category are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. A substandard credit has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans may be either still accruing or nonaccruing depending upon the severity of the risk and other factors such as the value of the collateral, if any, and past due status.
Doubtful - Loans rated in this category indicate that collection or liquidation in full on the basis of currently existing facts, conditions, and values, is highly questionable and improbable. Loans in this category are usually on nonaccrual and classified as impaired.
These above credit quality indicators are assigned upon origination with commercial loans reassessed on an annual basis while noncommercial loans are reassessed when the loan becomes past due greater than 90 days or when ad-hoc information becomes available to the loan officer. Further, the commercial loan portfolio is subject for selection of an independent review on an annual basis. In addition, those loans not considered to be "Pass" rated, are subject to a Loan Committee review on a quarterly basis. Lastly, on an ad-hoc basis as new information becomes available to the loan officer on the credit quality of the borrower, the credit quality indicators are reassessed.
The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated:
March 31, 2021
By Loan Grade or Nonaccrual Status
PassSpecial
Mention 		Accruing
Classified (1)		Nonaccrual
Loans		Total
(In thousands)
Commercial and industrial$623,253 $12,795 $27,403 $4,766 $668,217 
Paycheck Protection Program351,170 — — — 351,170 
Commercial tax-exempt485,720 2,787 — — 488,507 
Commercial real estate2,452,482 133,609 105,727 5,859 2,697,677 
Construction and land178,501 2,981 — — 181,482 
Residential2,615,079 — 3,000 14,475 2,632,554 
Home equity71,101 — — 651 71,752 
Consumer and other124,653 300 — 13 124,966 
Total$6,901,959 $152,472 $136,130 $25,764 $7,216,325 
December 31, 2020
By Loan Grade or Nonaccrual Status
PassSpecial
Mention 		Accruing
Classified (1)		Nonaccrual
Loans		Total
(In thousands)
Commercial and industrial$519,680 $11,314 $22,955 $4,394 $558,343 
Paycheck Protection Program312,356 — — — 312,356 
Commercial tax-exempt434,850 2,806 4,503 — 442,159 
Commercial real estate2,505,424 170,521 76,169 5,261 2,757,375 
Construction and land156,908 2,296 — — 159,204 
Residential2,660,684 — 3,000 13,780 2,677,464 
Home equity76,693 — 256 415 77,364 
Consumer and other119,743 300 — 1 120,044 
Total$6,786,338 $187,237 $106,883 $23,851 $7,104,309 
______________________
(1) Accruing Classified may include both Substandard and Doubtful classifications.
The following tables present the loan portfolio’s credit risk profile by loan origination year and class of receivable as of the dates indicated:
March 31, 2021
Loan Origination Year By Loan Grade or Nonaccrual Status
20212020201920182017PriorRevolvingRevolving Converted to Term (2)Total
(In thousands)
Commercial and industrial
Pass$22,837 $92,124 $71,592 $57,958 $12,334 $56,994 $301,010 $8,404 $623,253 
Special Mention— 321 4,919 952 — 2,588 3,764 251 12,795 
Accruing Classified (1)4,600 1,992 195 6,241 659 63 7,709 5,944 27,403 
Nonaccrual— — 375 346 16 903 884 2,242 4,766 
Total$27,437 $94,437 $77,081 $65,497 $13,009 $60,548 $313,367 $16,841 $668,217 
Paycheck Protection Program
Pass$113,041 $238,129 $— $— $— $— $— $— $351,170 
Total$113,041 $238,129 $— $— $— $— $— $— $351,170 
Commercial tax-exempt
Pass$— $89,135 $38,215 $40,285 $24,410 $290,684 $— $2,991 $485,720 
Special Mention— — — — — 2,787 — — 2,787 
Total$— $89,135 $38,215 $40,285 $24,410 $293,471 $— $2,991 $488,507 
Commercial real estate
Pass$65,639 $264,428 $444,717 $248,987 $301,316 $1,022,447 $90,477 $14,471 $2,452,482 
Special Mention— 18,253 15,913 2,317 17,744 79,382 — — 133,609 
Accruing Classified (1)— 5,586 49,581 23,964 12,787 13,809 — — 105,727 
Nonaccrual— — 5,212 — 598 — 49 — 5,859 
Total$65,639 $288,267 $515,423 $275,268 $332,445 $1,115,638 $90,526 $14,471 $2,697,677 
Construction and land
Pass$6,774 $57,925 $73,762 $21,550 $16,262 $2,228 $— $— $178,501 
Special Mention— — — 2,981 — — — — 2,981 
Total$6,774 $57,925 $73,762 $24,531 $16,262 $2,228 $— $— $181,482 
Residential
Pass$138,273 $599,553 $436,633 $338,505 $348,499 $753,601 $— $15 $2,615,079 
Accruing Classified (1)— — — — — 3,000 — — 3,000 
Nonaccrual— — 603 473 2,373 11,026 — — 14,475 
Total$138,273 $599,553 $437,236 $338,978 $350,872 $767,627 $— $15 $2,632,554 
Home equity
Pass$— $— $— $— $— $1,367 $59,919 $9,815 $71,101 
Nonaccrual— — — — — 256 139 256 651 
Total$— $— $— $— $— $1,623 $60,058 $10,071 $71,752 
Consumer and other
Pass$964 $653 $147 $19 $— $593 $122,277 $— $124,653 
Special Mention— — — — — — 300 — 300 
Nonaccrual— — — — — — 13 — 13 
Total$964 $653 $147 $19 $— $593 $122,590 $— $124,966 
Total
Pass$347,528 $1,341,947 $1,065,066 $707,304 $702,821 $2,127,914 $573,683 $35,696 $6,901,959 
Special Mention— 18,574 20,832 6,250 17,744 84,757 4,064 251 152,472 
Accruing Classified (1)4,600 7,578 49,776 30,205 13,446 16,872 7,709 5,944 136,130 
Nonaccrual— — 6,190 819 2,987 12,185 1,085 2,498 25,764 
Total$352,128 $1,368,099 $1,141,864 $744,578 $736,998 $2,241,728 $586,541 $44,389 $7,216,325 
______________________
(1) Accruing Classified may include both Substandard and Doubtful classifications.
(2) Amounts for revolving loans converted to term loans represent only those loans that have been converted to term loans after December 31, 2016. Due to data limitations, information prior to December 31, 2016 is unavailable.
December 31, 2020
Loan Origination Year By Loan Grade or Nonaccrual Status
20202019201820172016PriorRevolvingRevolving Converted to Term (2)Total
(In thousands)
Commercial and industrial
Pass$96,230 $80,949 $65,506 $13,378 $17,972 $43,592 $191,252 $10,801 $519,680 
Special Mention358 2,413 1,008 674 — 2,688 3,911 262 11,314 
Accruing Classified (1)1,184 223 6,247 — — 110 8,683 6,508 22,955 
Nonaccrual— 141 350 — 813 14 1,012 2,064 4,394 
Total$97,772 $83,726 $73,111 $14,052 $18,785 $46,404 $204,858 $19,635 $558,343 
Paycheck Protection Program
Pass$312,356 $— $— $— $— $— $— $— $312,356 
Total$312,356 $— $— $— $— $— $— $— $312,356 
Commercial tax-exempt
Pass$53,225 $20,586 $40,451 $24,624 $102,133 $190,798 $— $3,033 $434,850 
Special Mention— — — — — 2,806 — — 2,806 
Accruing Classified (1)— — — — — 4,503 — — 4,503 
Total$53,225 $20,586 $40,451 $24,624 $102,133 $198,107 $— $3,033 $442,159 
Commercial real estate
Pass$311,605 $462,144 $247,228 $308,437 $375,713 $657,563 $126,544 $16,190 $2,505,424 
Special Mention21,661 13,851 12,382 29,461 37,123 56,043 — — 170,521 
Accruing Classified (1)3,161 49,637 14,000 — — 9,371 — — 76,169 
Nonaccrual— 5,212 — — — — 49 — 5,261 
Total$336,427 $530,844 $273,610 $337,898 $412,836 $722,977 $126,593 $16,190 $2,757,375 
Construction and land
Pass$43,042 $63,914 $31,434 $16,288 $2,230 $— $— $— $156,908 
Special Mention— — 2,296 — — — — — 2,296 
Total$43,042 $63,914 $33,730 $16,288 $2,230 $— $— $— $159,204 
Residential
Pass$603,414 $471,237 $366,390 $388,845 $352,330 $478,468 $— $— $2,660,684 
Accruing Classified (1)— — — — — 3,000 — — 3,000 
Nonaccrual— 604 272 2,373 62 10,469 — — 13,780 
Total$603,414 $471,841 $366,662 $391,218 $352,392 $491,937 $— $— $2,677,464 
Home equity
Pass$— $— $252 $— $686 $553 $64,985 $10,217 $76,693 
Accruing Classified (1)— — — — — — — 256 256 
Nonaccrual— — — — — 276 139 — 415 
Total$— $— $252 $— $686 $829 $65,124 $10,473 $77,364 
Consumer and other
Pass$728 $158 $25 $— $81 $574 $118,177 $— $119,743 
Special Mention— — — — — — 300 — 300 
Nonaccrual— — — — — — 1 — 1 
Total$728 $158 $25 $— $81 $574 $118,478 $— $120,044 
Total
Pass$1,420,600 $1,098,988 $751,286 $751,572 $851,145 $1,371,548 $500,958 $40,241 $6,786,338 
Special Mention22,019 16,264 15,686 30,135 37,123 61,537 4,211 262 187,237 
Accruing Classified (1)4,345 49,860 20,247 — — 16,984 8,683 6,764 106,883 
Nonaccrual— 5,957 622 2,373 875 10,759 1,201 2,064 23,851 
Total$1,446,964 $1,171,069 $787,841 $784,080 $889,143 $1,460,828 $515,053 $49,331 $7,104,309 
______________________
(1) Accruing Classified may include both Substandard and Doubtful classifications.
(2) Amounts for revolving loans converted to term loans represent only those loans that have been converted to term loans after December 31, 2016. Due to data limitations, information prior to December 31, 2016 is unavailable.
The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans:
As of and for the three months ended March 31, 2021
Recorded Investment (1)Unpaid Principal BalanceRelated AllowanceYTD Average Recorded InvestmentYTD Interest Income Recognized while Impaired
(In thousands)
With no related allowance recorded:
Commercial and industrial$3,806 $3,880 n/a$3,594 $— 
Paycheck Protection Program— — n/a— — 
Commercial tax-exempt— — n/a— — 
Commercial real estate— — n/a1,303 — 
Construction and land— — n/a— — 
Residential14,710 14,974 n/a14,564 90 
Home equity (2)355 355 n/a362 8 
Consumer and other— — n/a— — 
Subtotal$18,871 $19,209 n/a$19,823 $98 
With an allowance recorded:
Commercial and industrial $610 $629 $541 $789 $— 
Paycheck Protection Program— — — — — 
Commercial tax-exempt— — — — — 
Commercial real estate5,261 5,434 125 3,958 — 
Construction and land— — — — — 
Residential341 341 51 384 2 
Home equity256 256 17 256 — 
Consumer and other— — — — — 
Subtotal$6,468 $6,660 $734 $5,387 $2 
Total:
Commercial and industrial$4,416 $4,509 $541 $4,383 $— 
Paycheck Protection Program— — — — — 
Commercial tax-exempt— — — — — 
Commercial real estate5,261 5,434 125 5,261 — 
Construction and land— — — — — 
Residential15,051 15,315 51 14,948 92 
Home equity (2)611 611 17 618 8 
Consumer and other— — — — — 
Total$25,339 $25,869 $734 $25,210 $100 
_____________________
(1)Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.
(2)Negative quarterly income is due to reversal of income recognized in prior quarter.
As of and for the three months ended March 31, 2020
Recorded Investment (1)Unpaid Principal BalanceRelated AllowanceYTD Average Recorded InvestmentYTD Interest Income Recognized while Impaired
(In thousands)
With no related allowance recorded:
Commercial and industrial$555 $632 n/a$667 $6 
Commercial tax-exempt— — n/a— — 
Commercial real estate6,119 6,151 n/a2,403 9 
Construction and land— — n/a— — 
Residential16,352 16,612 n/a15,587 117 
Home equity1,548 2,109 n/a1,550 3 
Consumer and other— — n/a— — 
Subtotal$24,574 $25,504 n/a$20,207 $135 
With an allowance recorded:
Commercial and industrial$273 $280 $175 $281 $— 
Commercial tax-exempt— — — — — 
Commercial real estate— — — — — 
Construction and land— — — — — 
Residential532 532 64 535 4 
Home equity270 270 20 271 2 
Consumer and other— — — — — 
Subtotal$1,075 $1,082 $259 $1,087 $6 
Total:
Commercial and industrial$828 $912 $175 $948 $6 
Commercial tax-exempt— — — — — 
Commercial real estate6,119 6,151 — 2,403 9 
Construction and land— — — — — 
Residential16,884 17,144 64 16,122 121 
Home equity1,818 2,379 20 1,821 5 
Consumer and other— — — — — 
Total$25,649 $26,586 $259 $21,294 $141 
_____________________
(1)Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.
As of and for the year ended December 31, 2020
Recorded Investment (1)Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized while Impaired
(In thousands)
With no related allowance recorded:
Commercial and industrial$2,262 $2,307 n/a$2,512 $141 
Paycheck Protection Program— — n/a— — 
Commercial tax-exempt— — n/a302 20 
Commercial real estate5,212 5,384 n/a4,818 33 
Construction and land— — n/a— — 
Residential14,523 14,783 n/a15,509 534 
Home equity367 367 n/a922 16 
Consumer and other— — n/a— — 
Subtotal$22,364 $22,841 n/a$24,063 $744 
With an allowance recorded:
Commercial and industrial$2,053 $2,090 $279 $378 $1 
Paycheck Protection Program— — — — — 
Commercial tax-exempt— — — — — 
Commercial real estate50 50 50 23 — 
Construction and land— — — — — 
Residential419 419 54 498 13 
Home equity256 256 17 264 7 
Consumer and other— — — — — 
Subtotal$2,778 $2,815 $400 $1,163 $21 
Total:
Commercial and industrial$4,315 $4,397 $279 $2,890 $142 
Paycheck Protection Program— — — — — 
Commercial tax-exempt— — — 302 20 
Commercial real estate5,262 5,434 50 4,841 33 
Construction and land— — — — — 
Residential14,942 15,202 54 16,007 547 
Home equity623 623 17 1,186 23 
Consumer and other— — — — — 
Total$25,142 $25,656 $400 $25,226 $765 
_____________________
(1)Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.
When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired.
On March 22, 2020, regulators issued an interagency statement encouraging financial institutions to work with borrowers affected by the COVID-19 pandemic. The interagency statement also provided additional information regarding loan modifications. The regulators indicated they will not criticize institutions for working with borrowers in a safe and sound manner and have indicated that related modifications will not automatically result in a TDR. The regulators also provided supervisory views that loans modified under this program would not be considered past due or nonaccrual.
The regulators view prudent loan modification programs offered to financial institution customers affected by the COVID-19 pandemic as positive and proactive actions that can manage adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk. The statement indicated that short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not TDRs.
Loans that are designated as impaired require an analysis to determine the amount of impairment, if any. Impairment would be indicated as a result of the carrying value of the loan exceeding either the estimated collateral value, less costs to sell, for collateral dependent loans or the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate, for loans not considered to be collateral dependent. Generally, shortfalls in the analysis on collateral dependent loans would result in the impairment amount being charged-off to the Allowance for loan losses. Shortfalls on cash flow
dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case, such known loss is charged-off.
Loans in the held for sale category are carried at the lower of amortized cost or estimated fair value in the aggregate and are excluded from the Allowance for loan losses analysis.
As of March 31, 2021, the Bank has pledged $2.2 billion of loans in a blanket lien agreement with the FHLB. The Bank also has $320.7 million of loans pledged as collateral at the FRB for access to their discount window. As of December 31, 2020, the Bank had pledged $2.2 billion of loans to the FHLB and $332.8 million of loans to the FRB.
The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. These loans are outside of the guidelines to not be considered a TDR by recent regulatory guidance. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal forgiveness. As of March 31, 2021 and December 31, 2020, TDRs totaled $14.0 million and $13.9 million, respectively. As of March 31, 2021, $7.1 million of the $14.0 million in TDRs were on accrual status. As of December 31, 2020, $7.2 million of the $13.9 million in TDRs were on accrual status.
Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the Allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general reserve on the particular loan. Prior to the adoption of ASU 2016-13 on January 1, 2020, a general or allocated reserve would have been applied. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the Allowance for loan losses when a nonaccruing loan is categorized as a TDR.
The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated:
As of and for the three months ended March 31, 2021
Restructured Year to DateTDRs that defaulted in the Year to Date that were restructured
in prior twelve months
# of
Loans		Pre-
modification
recorded
investment		Post-
modification
recorded
investment		# of
Loans		Post-
modification
recorded
investment
(In thousands, except number of loans)
Residential and home equity (1)1 $220 $220 — $— 
Total1 $220 $220 — $— 
_____________________
(1)Represents the following type of concession: extension of maturity
                    
As of and for the three months ended March 31, 2020
Restructured Year to DateTDRs that defaulted in the Year to Date that were restructured
in prior twelve months
# of
Loans		Pre-
modification
recorded
investment		Post-
modification
recorded
investment		# of
Loans		Post-
modification
recorded
investment
(In thousands, except number of loans)
Commercial and industrial (1)1 $50 $50 — $— 
Residential and home equity (2)1 2,373 2,373 — — 
Total2 $2,423 $2,423 — $— 
_____________________
(1)Represents the following type of concession: extension of maturity and reduction in interest rate.
(2)Represents the following type of concession: payment deferral.
In response to the COVID-19 pandemic, the Bank initiated a mortgage deferment program under which principal and interest payments on qualifying loans are generally deferred for initially three months and the loan term is extended three months; if requested, the loan may be deferred for a subsequent three months. Loans that are deferred under the program are not considered TDRs or past due based on current regulatory guidance. In total, approximately 365 Residential and home equity loans totaling approximately $220.0 million have been processed under the program. As of March 31, 2021, approximately 47 loans totaling approximately $20.0 million remain in deferral under the program.
Additionally, in response to the COVID-19 pandemic, the Bank initiated a program where it offered qualified Commercial and industrial borrowers principal payment deferrals for six months, with the deferred principal added to the last payment. In total, approximately 85 Commercial and industrial loans totaling approximately $125.0 million have been processed under the program. As of March 31, 2021, approximately four loans totaling approximately $5.7 million remain in deferral under the program.
Loan participations serviced for others and loans serviced for others are not included in the Company’s total loans. The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated:
 March 31, 2021December 31, 2020
 (In thousands)
Commercial and industrial$110,284 $110,589 
Commercial tax-exempt22,845 17,604 
Commercial real estate136,019 130,551 
Construction and land102,422 93,874 
Total loan participations serviced for others $371,570 $352,618 
Residential$146,080 $168,110 
Total loans serviced for others$146,080 $168,110 
Total loans include deferred loan origination (fees)/costs, net, of $(2.1) million and $0.3 million as of March 31, 2021 and December 31, 2020, respectively