| Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans The following table provides a summary of the Company’s loan portfolio as of the dates indicated: At June 30, At December 31, 2021 2020 (In thousands) Commercial and industrial $ 1,740,679 $ 1,995,016 Commercial real estate 3,775,771 3,573,630 Commercial construction 237,927 305,708 Business banking 1,339,852 1,339,164 Residential real estate 1,457,498 1,370,957 Consumer home equity 834,938 868,270 Other consumer (1) 234,410 277,780 Gross loans before unamortized premiums, unearned discounts and deferred fees 9,621,075 9,730,525 Allowance for loan losses (105,637) (113,031) Unamortized premiums, net of unearned discounts and deferred fees (29,739) (23,536) Loans after the allowance for credit losses, unamortized premiums, unearned discounts and deferred fees $ 9,485,699 $ 9,593,958 (1) Automobile loans are included in the other consumer portfolio above and amounted to $83.7 million and $126.7 million at June 30, 2021 and December 31, 2020, respectively. 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. 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 $2.3 billion and $2.4 billion at June 30, 2021 and December 31, 2020, respectively. The balance of funds borrowed from the FHLBB were $14.3 million and $14.6 million at June 30, 2021 and December 31, 2020, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $812.6 million and $884.1 million at June 30, 2021 and December 31, 2020, respectively. There were no funds borrowed from the FRB outstanding at June 30, 2021 and December 31, 2020. Serviced Loans At June 30, 2021 and December 31, 2020, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $12.1 million and $13.5 million, respectively. Allowance for Loan Losses The allowance for loan losses is established to provide for probable losses incurred in the Company’s loan portfolio at the balance sheet date and is established through a provision for loan losses charged to net income. Charge-offs, net of recoveries, are charged directly to the allowance. 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 June 30, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 25,406 $ 55,138 $ 3,350 $ 13,504 $ 6,235 $ 3,576 $ 3,498 $ 373 $ 111,080 Charge-offs (550) — — (1,838) — — (275) — (2,663) Recoveries 13 4 — 291 17 3 192 — 520 (Release of) provision (2,273) (2,383) 96 748 226 9 211 66 (3,300) Ending balance $ 22,596 $ 52,759 $ 3,446 $ 12,705 $ 6,478 $ 3,588 $ 3,626 $ 439 $ 105,637 For the Three Months Ended June 30, 2020 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 30,531 $ 49,227 $ 4,712 $ 10,181 $ 6,228 $ 3,913 $ 4,019 $ 327 $ 109,138 Charge-offs (27) (24) — (1,198) — — (15) — (1,264) Recoveries 58 5 — 27 13 8 51 — 162 Provision (release of) 2,667 5,020 104 795 328 (46) (293) 25 8,600 Ending balance $ 33,229 $ 54,228 $ 4,816 $ 9,805 $ 6,569 $ 3,875 $ 3,762 $ 352 $ 116,636 For the Six Months Ended June 30, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Charge-offs (550) (234) — (3,222) — — (639) — (4,645) Recoveries 22 4 — 656 27 74 348 — 1,131 (Release of) provision (3,493) (1,580) (1,107) 2,119 16 (230) 450 (55) (3,880) Ending balance $ 22,596 $ 52,759 $ 3,446 $ 12,705 $ 6,478 $ 3,588 $ 3,626 $ 439 $ 105,637 For the Six Months Ended June 30, 2020 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 20,919 $ 34,730 $ 3,424 $ 8,260 $ 6,380 $ 4,027 $ 4,173 $ 384 $ 82,297 Charge-offs (27) (24) — (2,535) — (473) (548) — (3,607) Recoveries 380 6 — 154 73 22 111 — 746 Provision (release of) 11,957 19,516 1,392 3,926 116 299 26 (32) 37,200 Ending balance $ 33,229 $ 54,228 $ 4,816 $ 9,805 $ 6,569 $ 3,875 $ 3,762 $ 352 $ 116,636 The following tables bifurcate the amount of loans and the allowance allocated to each loan category based on the type of impairment analysis as of the periods indicated: As of June 30, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses ending balance: Individually evaluated for impairment $ 4,544 $ — $ — $ 937 $ 1,624 $ 263 $ — $ — $ 7,368 Acquired with deteriorated credit quality — 249 — — 293 — — — 542 Collectively evaluated for impairment 18,052 52,510 3,446 11,768 4,561 3,325 3,626 439 97,727 Total allowance for loan losses by group $ 22,596 $ 52,759 $ 3,446 $ 12,705 $ 6,478 $ 3,588 $ 3,626 $ 439 $ 105,637 Loans ending balance: Individually evaluated for impairment $ 20,266 $ 4,051 $ — $ 18,179 $ 25,091 $ 3,954 $ 24 $ — $ 71,565 Acquired with deteriorated credit quality 1,397 249 — — 2,880 — — — 4,526 Collectively evaluated for impairment 1,719,016 3,771,471 237,927 1,321,673 1,429,527 830,984 234,386 — 9,544,984 Total loans by group $ 1,740,679 $ 3,775,771 $ 237,927 $ 1,339,852 $ 1,457,498 $ 834,938 $ 234,410 $ — $ 9,621,075 As of December 31, 2020 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses ending balance: Individually evaluated for impairment $ 4,555 $ 210 $ — $ 1,435 $ 1,565 $ 289 $ — $ — $ 8,054 Acquired with deteriorated credit quality 1,283 822 — — 327 — — — 2,432 Collectively evaluated for impairment 20,779 53,537 4,553 11,717 4,543 3,455 3,467 494 102,545 Total allowance for loan losses by group $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Loans ending balance: Individually evaluated for impairment $ 17,343 $ 4,435 $ — $ 21,901 $ 27,056 $ 4,845 $ 29 $ — $ 75,609 Acquired with deteriorated credit quality 3,432 2,749 — — 3,116 — — — 9,297 Collectively evaluated for impairment 1,974,241 3,566,446 305,708 1,317,263 1,340,785 863,425 277,751 — 9,645,619 Total loans by group $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 1,370,957 $ 868,270 $ 277,780 $ — $ 9,730,525 Management uses a methodology to systematically estimate the amount of loss incurred in the portfolio. Commercial real estate, commercial and industrial, commercial construction and business banking loans are evaluated using a loan rating system, historical losses and other factors which form the basis for estimating incurred losses. Portfolios of more homogeneous populations of loans, including residential mortgages and consumer loans, are analyzed as groups taking into account delinquency ratios, historical loss experience and charge-offs. For the purpose of estimating the allowance for loan losses, management segregates the loan portfolio into the categories noted in the above tables. Each of these loan categories possesses unique 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, airplanes and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity. 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. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity. 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, both in the business banking and commercial banking divisions. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure. Residential Lending Residential real estate : 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 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 capital needs. Consumer Lending Consumer home equity : Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. 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 and automobile 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 airplane and automobile loans. Credit Quality Commercial Lending Credit Quality 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. Prior to December 31, 2020, the Company utilized a 12-point credit risk-rating system to manage risk and identify potential problem loans. In the fourth quarter of 2020, the Company realigned its credit risk-rating system, transitioning to a 15-point credit risk-rating system. The Company believes that the expansion from the prior 12-point scale provides more refinement in the pass grade categories; new pass grades are 0-10. There are no changes to non-pass categories, which continue to align with regulatory guidelines and are found in ratings: special mention (11), substandard (12), doubtful (13) and loss (14). The Company believes that increasing granularity of the risk rating system allows for more robust portfolio management and increased precision and effectiveness of credit risk identification. Under both point systems, 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. The risk-rating categories under the new 15-point credit risk-rating system are defined as follows: 0 Risk Rating - Unrated Certain segments of the portfolios are not rated. These segments include airplane 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. 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 million. Loans included in this category have qualification requirements that include a risk rating of 10 or better at the time of recommendation for unrated status, acceptable management of deposit accounts, and no known negative changes in management, operations or financial performance. For purposes of estimating the allowance for loan losses, unrated loans are considered in the same manner as pass rated loans. 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, however, because of reasonable 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. The credit quality of the 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. Risk ratings are periodically reviewed and 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 following tables detail the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios: As of June 30, 2021 Category Commercial and Commercial Commercial Business Total (In thousands) Unrated $ 434,766 $ 5,105 $ 61 $ 913,151 $ 1,353,083 Pass 1,201,952 3,492,582 218,073 346,198 5,258,805 Special mention 48,853 127,856 13,703 53,920 244,332 Substandard 39,751 150,177 6,090 25,299 221,317 Doubtful 15,357 51 — 1,284 16,692 Loss — — — — — Total $ 1,740,679 $ 3,775,771 $ 237,927 $ 1,339,852 $ 7,094,229 As of December 31, 2020 Category Commercial and Commercial Commercial Business Total (In thousands) Unrated $ 655,346 $ 6,585 $ — $ 918,921 $ 1,580,852 Pass 1,199,522 3,256,697 280,792 336,657 5,073,668 Special mention 78,117 134,562 10,330 57,092 280,101 Substandard 47,525 173,308 14,586 24,788 260,207 Doubtful 14,506 2,478 — 1,706 18,690 Loss — — — — — Total $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 7,213,518 Paycheck Protection Program (“PPP”) loans are included within the unrated category of the commercial and industrial and business banking portfolios in the tables above. Commercial and industrial PPP loans and business banking PPP loans amounted to $366.1 million and $459.7 million, respectively, at June 30, 2021 and $568.8 million and $457.4 million respectively, at December 31, 2020. The Company does not have an allowance for loan losses for PPP loans as they are 100% guaranteed by the SBA. 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. Asset Quality In response to the novel coronavirus (“COVID-19”) pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the COVID-19 pandemic. Modifications granted to customers allowed for full payment deferrals (principal and interest) or deferral of only principal payments. The balance of loans which underwent a modification and have not yet resumed payment as of June 30, 2021 and December 31, 2020 was $149.8 million and $332.7 million, respectively. The Company defines a modified loan to have resumed payment if it is one month past the modification end date and not more than 30 days past due. These modifications with active deferrals met the criteria of either Section 4013 of the CARES Act or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) and therefore are not deemed TDRs (as defined herein). Additionally, loans that are performing in accordance with the contractual terms of the modification are not reflected as being past due and therefore are not impacting non-accrual or delinquency totals as of June 30, 2021 and December 31, 2020. The Company continued to accrue interest on these COVID-19 modified loans and evaluated the deferred interest for collectability as of June 30, 2021 and December 31, 2020. 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, or the loan is accounted for as a purchased credit impaired (“PCI”) loan. Therefore, as permitted by banking regulations, certain consumer loans past due 90 days or more may continue to accrue 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 is a summary pertaining to the breakdown of the Company’s non-accrual loans: As of June 30, As of December 31, 2021 2020 (In thousands) Commercial and industrial $ 14,591 $ 11,714 Commercial real estate 531 915 Business banking 14,234 17,430 Residential real estate 6,445 6,815 Consumer home equity 3,592 3,602 Other consumer 514 529 Total non-accrual loans $ 39,907 $ 41,005 The following tables show the age analysis of past due loans as of the dates indicated: As of June 30, 2021 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ — $ 267 $ 647 $ 914 $ 1,739,765 $ 1,740,679 $ 275 Commercial real estate 1,896 — 1,414 3,310 3,772,461 3,775,771 1,164 Commercial construction — — — — 237,927 237,927 — Business banking 4,004 1,902 6,609 12,515 1,327,337 1,339,852 — Residential real estate 11,706 1,330 4,631 17,667 1,439,831 1,457,498 277 Consumer home equity 610 403 3,408 4,421 830,517 834,938 9 Other consumer 1,074 438 513 2,025 232,385 234,410 — Total $ 19,290 $ 4,340 $ 17,222 $ 40,852 $ 9,580,223 $ 9,621,075 $ 1,725 As of December 31, 2020 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ 4 $ 268 $ 1,924 $ 2,196 $ 1,992,820 $ 1,995,016 $ 848 Commercial real estate — 556 1,545 2,101 3,571,529 3,573,630 1,111 Commercial construction — — — — 305,708 305,708 — Business banking 5,279 3,311 10,196 18,786 1,320,378 1,339,164 — Residential real estate 9,184 2,517 4,904 16,605 1,354,352 1,370,957 279 Consumer home equity 1,806 364 3,035 5,205 863,065 868,270 9 Other consumer 1,978 234 517 2,729 275,051 277,780 — Total $ 18,251 $ 7,250 $ 22,121 $ 47,622 $ 9,682,903 $ 9,730,525 $ 2,247 In the normal course of business, the Company may become aware of possible credit problems in which borrowers exhibit potential for the inability to comply with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as non-performing loans. However, based upon the Company’s past experiences, some of these loans with potential weaknesses will ultimately be restructured or placed in non-accrual status. Troubled Debt Restructurings (“TDR”) In cases where a borrower experiences financial difficulty and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructured loan. The objective is to aid in the resolution of non-performing loans by modifying the contractual obligation to avoid the possibility of foreclosure. All TDR loans are considered impaired and therefore are subject to a specific review for impairment loss. The amount of impairment loss, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans and residential loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company’s policy is to have any TDR loans which are on non-accrual status prior to being modified remain on non-accrual status for approximately six months subsequent to being modified before management considers its return to accrual status. If the TDR loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. The following tables show the TDR loans on accrual and non-accrual status as of the dates indicated: As of June 30, 2021 TDRs on Accrual Status TDRs on Non-Accrual Status Total TDRs Number of Loans Balance of Number of Balance of Number of Balance of (Dollars in thousands) Commercial and industrial 1 $ 5,675 6 $ 9,607 7 $ 15,282 Commercial real estate 1 3,520 — — 1 3,520 Business banking 5 3,945 7 1,507 12 5,452 Residential real estate 135 21,677 26 3,129 161 24,806 Consumer home equity 77 3,494 12 460 89 3,954 Other consumer 2 5 1 19 3 24 Total 221 $ 38,316 52 $ 14,722 273 $ 53,038 As of December 31, 2020 TDRs on Accrual Status TDRs on Non-Accrual Status Total TDRs Number of Loans Balance of Number of Loans Balance of Number of Loans Balance of (Dollars in thousands) Commercial and industrial 1 $ 5,628 7 $ 6,819 8 $ 12,447 Commercial real estate 1 3,521 1 480 2 4,001 Business banking 6 4,471 6 722 12 5,193 Residential real estate 146 23,416 27 3,273 173 26,689 Consumer home equity 91 4,030 12 815 103 4,845 Other consumer 3 29 — — 3 29 Total 248 $ 41,095 53 $ 12,109 301 $ 53,204 The amount of specific reserve associated with the TDRs was $4.0 million and $3.5 million at June 30, 2021 and December 31, 2020, respectively. There were no additional commitments to lend to borrowers who have been a party to a TDR as of both June 30, 2021 and December 31, 2020. The following tables show the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring: For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 Number Pre- Post- Number Pre-Modification Post- (Dollars in thousands) Business banking 1 $ 462 $ 462 1 $ 462 $ 462 Residential real estate — — — 1 295 295 Total 1 $ 462 $ 462 2 $ 757 $ 757 (1) The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest. For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Number Pre- Post- Number Pre-Modification Post- (Dollars in thousands) Commercial and industrial 1 $ 141 $ 141 1 $ 141 $ 141 Commercial real estate 1 506 506 1 506 506 Business banking 4 1,165 1,165 4 1,165 1,165 Residential real estate 2 155 155 3 399 399 Consumer home equity 4 113 113 12 527 531 Other consumer — — — 1 24 24 Total 12 $ 2,080 $ 2,080 22 $ 2,762 $ 2,766 (1) The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest. At June 30, 2021 and December 31, 2020, the outstanding recorded investment of loans that were new TDR loans during the six months ended June 30, 2021 and the year ended December 31, 2020 was $0.8 million and $3.9 million, respectively. The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Interest only/principal deferred $ — $ 1,305 $ — $ 1,305 Extended maturity — 35 — 35 Extended maturity and interest only/principal deferred — 381 — 427 Court-ordered concession — 359 295 999 Principal and interest deferred 462 — 462 — Total $ 462 $ 2,080 $ 757 $ 2,766 The following table shows the number of loans and the recorded investment amount of those loans, as of the respective date, that have been modified during the prior 12 months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual: For the Six Months Ended June 30, 2021 2020 Number of Recorded Number of Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted (1): Business banking 1 $ 411 — $ — Consumer home equity 1 57 1 1,317 Total 2 |
