| Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans The following table provides a summary of the Company’s loan portfolio as of the dates indicated: March 31, 2023 December 31, 2022 (In thousands) Commercial and industrial $ 3,169,438 $ 3,150,946 Commercial real estate 5,201,196 5,155,323 Commercial construction 357,117 336,276 Business banking 1,078,678 1,090,492 Residential real estate 2,497,491 2,460,849 Consumer home equity 1,180,824 1,187,547 Other consumer (2) 190,506 194,098 Gross loans before unamortized premiums, unearned discounts and deferred fees 13,675,250 13,575,531 Allowance for loan losses (1) (140,938) (142,211) Unamortized premiums, net of unearned discounts and deferred fees (13,597) (13,003) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees $ 13,520,715 $ 13,420,317 (1) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $46.2 million and $45.2 million as of March 31, 2023 and December 31, 2022, respectively, and is included within other assets on the Consolidated Balance Sheets. (2) Automobile loans are included in the other consumer portfolio and amounted to $13.3 million and $18.1 million at March 31, 2023 and December 31, 2022, 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 portfolio. 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 $4.1 billion and $3.9 billion at March 31, 2023 and December 31, 2022, respectively. The balance of funds borrowed from the FHLBB were $1.1 billion and $704.1 million at March 31, 2023 and December 31, 2022, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $1.1 billion at both March 31, 2023 and December 31, 2022. There were no funds borrowed from the FRB outstanding at March 31, 2023 and December 31, 2022. Serviced Loans At March 31, 2023 and December 31, 2022, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $82.5 million and $84.0 million, respectively. Purchased Loans The Company began purchasing residential real estate mortgage loans during the third quarter of 2022. Loans purchased were subject to the same underwriting criteria as those loans originated directly by the Company. During the three months ended March 31, 2023, the Company purchased $32.0 million of residential real estate mortgage loans. No residential real estate mortgage loans were purchased during the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, the amortized cost balance of loans purchased was $399.9 million and $376.1 million, respectively. As of March 31, 2023, the Company had ceased purchases of residential real estate mortgage loans. Allowance for Loan Losses The allowance for loan losses is established to provide for management’s estimate of expected lifetime credit losses on loans measured at amortized cost 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 for loan losses. 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 March 31, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 142,211 Cumulative effect of change in accounting principle (1) 47 — — (140) (849) (201) — (1,143) Charge-offs — — — (343) — (7) (561) (911) Recoveries 139 4 — 481 15 1 116 756 Provision (release) (116) 459 493 (1,102) (165) (65) 521 25 Ending balance $ 26,929 $ 55,193 $ 7,578 $ 15,085 $ 27,130 $ 6,182 $ 2,841 $ 140,938 For the Three Months Ended March 31, 2022 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 Cumulative effect of change in accounting principle (2) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) 27,086 Charge-offs (1) — — (945) — — (661) — (1,607) Recoveries 250 14 — 928 10 4 179 — 1,385 Provision (release) (2,959) (1,120) 344 143 2,188 435 484 — (485) Ending balance $ 26,841 $ 44,612 $ 4,414 $ 17,269 $ 22,243 $ 6,018 $ 2,769 $ — $ 124,166 (1) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2022-02 (i.e., cumulative effect adjustment related to the adoption of ASU 2022-02 as of January 1, 2023). The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. (2) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2016-13 (i.e., cumulative effect adjustment related to the adoption of ASU 2016-13 as of January 1, 2022). The adjustment represents a $27.1 million increase to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. The adjustment also includes the adjustment needed to reflect the day one reclassification of the Company’s PCI loan balances to PCD and the associated gross-up of $0.1 million, pursuant to the Company’s adoption of ASU 2016-13. Reserve for Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. The Company’s adoption of ASU 2022-02 on January 1, 2023 did not impact the reserve for unfunded lending commitments. Upon adoption of ASU 2016-13 on January 1, 2022, the Company recorded a transition adjustment related to the reserve for unfunded lending commitments of $1.0 million, resulting in a total reserve for unfunded lending commitments of $11.1 million as of January 1, 2022. As of March 31, 2023 and December 31, 2022, the Company’s reserve for unfunded lending commitments was $13.9 million and $13.2 million, respectively, which is recorded within other liabilities in the Company's Consolidated Balance Sheets. Portfolio Segmentation Management uses a methodology to systematically estimate the amount of expected losses in each segment of loans in the Company’s portfolio. Commercial and industrial business banking, investment commercial real estate, and commercial and industrial loans are evaluated based upon loan-level risk characteristics, historical losses and other factors which form the basis for estimating expected losses. Other portfolios, including owner occupied commercial real estate (which includes business banking owner occupied commercial real estate), commercial construction, residential mortgages, home equity and consumer loans, are analyzed as groups taking into account delinquency ratios, and the Company’s and peer banks’ historical loss experience. For the purposes of estimating the allowance for loan losses, management segregates the loan portfolio into loan categories that share similar 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, aircraft and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity when the loan-to-value of a commercial and industrial loan is in excess of a specified threshold. 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. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity when the loan-to-value of a commercial real estate loan is in excess of a specified threshold. 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. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure. Residential Lending 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 policy standards applied to loans originated by the Company are the same as those applied to purchased loans. 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, automobile and aircraft 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 aircraft and automobile loans. Credit Quality Commercial Lending Credit Quality The credit quality of the Company’s 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. 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 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. Under this point system, 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. Commercial loan risk ratings are (re)evaluated for each loan at least once-per-year. The risk-rating categories under the credit risk-rating system are defined as follows: 0 Risk Rating - Unrated Certain segments of the portfolios are not rated. These segments include aircraft 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 which includes the review of the business score and loan and deposit account performance. 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 $1.5 million. Loans included in this category generally are not required to provide regular financial reporting or regular covenant monitoring. For purposes of estimating the allowance for loan losses, unrated loans are considered in the same manner as “Pass” rated loans. Unrated loans are included with “Pass” rated loans for disclosure purposes. 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, but because of reasonably 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. 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. The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of March 31, 2023, and gross charge-offs for the three month period then ended: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 189,328 $ 692,186 $ 448,560 $ 361,146 $ 196,510 $ 682,862 $ 481,097 $ 86 $ 3,051,775 Special Mention — 27,526 17,902 15,934 4,749 812 9,127 448 76,498 Substandard — 202 8,973 2,311 42 8,751 3,787 — 24,066 Doubtful — — — — — 8 — — 8 Loss — — — — — — — — — Total commercial and industrial 189,328 719,914 475,435 379,391 201,301 692,433 494,011 534 3,152,347 Current period gross charge-offs — — — — — — — — — Commercial real estate Pass 153,788 1,473,014 832,060 567,662 542,707 1,420,263 48,963 2,604 5,041,061 Special Mention — — 8,598 760 12,683 23,470 — — 45,511 Substandard — — 3,896 4,988 19,716 74,041 8,012 — 110,653 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 153,788 1,473,014 844,554 573,410 575,106 1,517,774 56,975 2,604 5,197,225 Current period gross charge-offs — — — — — — — — — Commercial construction Pass 15,881 108,260 176,497 29,946 20,643 — 979 — 352,206 Special Mention 3,118 — — — — — — — 3,118 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 18,999 108,260 176,497 29,946 20,643 — 979 — 355,324 Current period gross charge-offs — — — — — — — — — Business banking Pass 31,314 171,278 195,911 162,752 126,140 281,499 75,251 1,989 1,046,134 Special Mention — 375 984 3,888 3,781 10,787 139 — 19,954 Substandard 261 1,354 3,804 1,158 992 7,481 927 — 15,977 Doubtful — — — 22 1,132 59 — — 1,213 Loss — — — — — — — — — Total business banking 31,575 173,007 200,699 167,820 132,045 299,826 76,317 1,989 1,083,278 Current period gross charge-offs — 13 23 7 36 169 — 95 343 Residential real estate Current and accruing 62,874 761,978 693,767 375,434 100,129 495,727 — — 2,489,909 30-89 days past due and accruing 2,529 1,662 1,771 2,288 1,064 7,919 — — 17,233 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 470 — 279 860 7,994 — — 9,603 Total residential real estate 65,403 764,110 695,538 378,001 102,053 511,640 — — 2,516,745 Current period gross charge-offs — — — — — — — — — Consumer home equity Current and accruing 10,241 94,319 10,484 5,570 4,874 96,340 943,832 2,786 1,168,446 30-89 days past due and accruing — 142 — — — 458 7,837 — 8,437 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 50 — — — 2,185 5,192 — 7,427 Total consumer home equity 10,241 94,511 10,484 5,570 4,874 98,983 956,861 2,786 1,184,310 Current period gross charge-offs — — — — — — 7 — 7 Other consumer Current and accruing 21,022 45,668 30,172 16,159 16,360 27,606 14,593 — 171,580 30-89 days past due and accruing — 97 85 42 76 239 33 — 572 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 57 71 18 40 31 55 — 272 Total other consumer 21,022 45,822 30,328 16,219 16,476 27,876 14,681 — 172,424 Current period gross charge-offs 238 83 63 39 6 104 28 — 561 Total $ 490,356 $ 3,378,638 $ 2,433,535 $ 1,550,357 $ 1,052,498 $ 3,148,532 $ 1,599,824 $ 7,913 $ 13,661,653 (1) The amounts presented represent the amortized cost as of March 31, 2023 of revolving loans that were converted to term loans during the three months ended March 31, 2023. The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of December 31, 2022: 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 778,144 $ 479,317 $ 415,990 $ 199,865 $ 100,716 $ 639,825 $ 473,148 $ 50 $ 3,087,055 Special Mention 2,298 1,307 7,267 4,841 147 — 1,196 670 17,726 Substandard 294 4,954 2,644 46 2,598 7,854 485 346 19,221 Doubtful — 5,249 — — — 23 3,254 — 8,526 Loss — — — — — — — — — Total commercial and industrial 780,736 490,827 425,901 204,752 103,461 647,702 478,083 1,066 3,132,528 Commercial real estate Pass 1,510,675 825,620 586,567 581,840 461,296 1,006,160 52,590 4,187 5,028,935 Special Mention — — 771 4,204 15,366 12,255 — — 32,596 Substandard — — 2,621 19,796 24,532 34,883 8,000 — 89,832 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 1,510,675 825,620 589,959 605,840 501,194 1,053,298 60,590 4,187 5,151,363 Commercial construction Pass 91,397 178,648 28,956 20,767 — — 12,130 — 331,898 Special Mention — — 2,361 — — — — — 2,361 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 91,397 178,648 31,317 20,767 — — 12,130 — 334,259 Business banking Pass 178,806 202,230 170,088 128,282 59,452 233,484 78,080 4,770 1,055,192 Special Mention — 991 4,635 4,605 3,740 7,584 145 — 21,700 Substandard — 3,482 1,424 2,663 570 7,505 2,230 221 18,095 Doubtful — — — 181 — 70 — — 251 Loss — — — — — — — — — Total business banking 178,806 206,703 176,147 135,731 63,762 248,643 80,455 4,991 1,095,238 Residential real estate Current and accruing 761,442 696,959 382,262 99,494 66,702 434,720 — — 2,441,579 30-89 days past due and accruing 4,652 5,470 1,245 2,762 2,951 11,646 — — 28,726 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — 144 1,491 1,015 7,100 — — 9,750 Total residential real estate 766,094 702,429 383,651 103,747 70,668 453,466 — — 2,480,055 Consumer home equity Current and accruing 97,395 10,774 5,840 5,015 21,092 73,927 953,829 7,320 1,175,192 30-89 days past due and accruing 559 — — — 72 944 7,239 247 9,061 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — — 61 274 1,303 5,120 296 7,054 Total consumer home equity 97,954 10,774 5,840 5,076 21,438 76,174 966,188 7,863 1,191,307 Other consumer Current and accruing 55,414 32,390 17,641 18,298 18,832 16,603 17,476 — 176,654 30-89 days past due and accruing 143 68 43 61 240 178 58 7 798 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 31 93 39 2 92 44 15 10 326 Total other consumer 55,588 32,551 17,723 18,361 19,164 16,825 17,549 17 177,778 Total $ 3,481,250 $ 2,447,552 $ 1,630,538 $ 1,094,274 $ 779,687 $ 2,496,108 $ 1,614,995 $ 18,124 $ 13,562,528 (1) The amounts presented represent the amortized cost as of December 31, 2022 of revolving loans that were converted to term loans during the year ended December 31, 2022. Asset Quality 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. 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 tables show the age analysis of past due loans as of the dates indicated: As of March 31, 2023 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 300 $ — $ 468 $ 768 $ 3,151,579 $ 3,152,347 Commercial real estate — — — — 5,197,225 5,197,225 Commercial construction — — — — 355,324 355,324 Business banking 5,771 755 2,544 9,070 1,074,208 1,083,278 Residential real estate 12,885 4,755 7,180 24,820 2,491,925 2,516,745 Consumer home equity 7,377 1,061 7,241 15,679 1,168,631 1,184,310 Other consumer 403 184 257 844 171,580 172,424 Total $ 26,736 $ 6,755 $ 17,690 $ 51,181 $ 13,610,472 $ 13,661,653 As of December 31, 2022 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 1,300 $ 385 $ 2,074 $ 3,759 $ 3,128,769 $ 3,132,528 Commercial real estate — — — — 5,151,363 5,151,363 Commercial construction — — — — 334,259 334,259 Business banking 6,642 845 3,517 11,004 1,084,234 1,095,238 Residential real estate 25,877 3,852 6,456 36,185 2,443,870 2,480,055 Consumer home equity 8,262 1,108 6,525 15,895 1,175,412 1,191,307 Other consumer 634 170 320 1,124 176,654 177,778 Total $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 The following table presents information regarding non-accrual loans as of the dates indicated: As of March 31, 2023 As of December 31, 2022 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Non-Accrual Loans Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Non-Accrual Loans (In thousands) Commercial and industrial $ 10 $ 10,741 $ 10,751 $ 3,270 $ 10,707 $ 13,977 Commercial real estate — — — — — — Commercial construction — — — — — — Business banking 5,350 1,170 6,520 5,844 1,653 7,497 Residential real estate 9,603 — 9,603 9,750 — 9,750 Consumer home equity 7,427 — 7,427 7,054 — 7,054 Other consumer 272 — 272 326 — 326 Total non-accrual loans $ 22,662 $ 11,911 $ 34,573 $ 26,244 $ 12,360 $ 38,604 (1) The loans on non-accrual status and without an ACL as of both March 31, 2023 and December 31, 2022, were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value. The amount of interest income recognized on non-accrual loans during the three months ended March 31, 2023 and 2022 was not significant. As of both March 31, 2023 and December 31, 2022, there were no loans greater than 90 days past due and still accruing. It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status and, generally, to record any payments received from a borrower related to a loan on non-accrual status as a reduction of the amortized cost basis of the loan. Accrued interest reversed against interest income for the three months ended March 31, 2023 and 2022 was insignificant. For collateral values for residential mortgage and home equity loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, or estimated auction or liquidation values less estimated costs to sell. As of March 31, 2023 and December 31, 2022, the Company had collateral-dependent residential mortgage and home equity loans totaling $0.5 million and $0.6 million, respectively. For collateral-dependent commercial loans, the amount of the allowance for loan losses is individually assessed based upon the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of March 31, 2023 and December 31, 2022, the Company had collateral-dependent commercial loans totaling $12.3 million and $16.2 million, respectively. Appraisals for all loan types are obtained at the time of loan origination as part of |
