| 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: September 30, 2024 December 31, 2023 (In thousands) Commercial and industrial $ 3,340,029 $ 3,034,068 Commercial real estate 7,174,861 5,457,349 Commercial construction 513,519 386,999 Business banking 1,321,179 1,085,763 Residential real estate 4,080,736 2,565,485 Consumer home equity 1,361,971 1,208,231 Other consumer 271,831 235,533 Gross loans before unearned discounts and deferred fees, net 18,064,126 13,973,428 Allowance for loan losses (1) (253,821) (148,993) Unearned discounts and deferred fees, net (308,243) (25,068) Loans after the allowance for loan losses and net unearned discounts and deferred fees $ 17,502,062 $ 13,799,367 (1) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $66.4 million and $53.9 million as of September 30, 2024 and December 31, 2023, respectively, and is included within other assets on the Consolidated Balance Sheets. 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 and certain purchased loans. 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 $4.6 billion at September 30, 2024 and December 31, 2023, respectively. The balance of funds borrowed from the FHLBB were $17.3 million and $17.7 million at September 30, 2024 and December 31, 2023, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $3.1 billion and $1.1 billion at September 30, 2024 and December 31, 2023, respectively. There were no funds borrowed from the FRB outstanding at September 30, 2024 or December 31, 2023. Serviced Loans At September 30, 2024 and December 31, 2023, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $235.9 million and $77.2 million, respectively. The increase in loans serviced from December 31, 2023 to September 30, 2024 was primarily due to the merger and the acquisition of the portfolio of mortgage loans partially or wholly-owned by others and previously serviced by Cambridge. Purchased Loans The Company began purchasing residential real estate mortgage loans during the third quarter of 2022 and ceased such purchases in the first quarter of 2023. Loans purchased were subject to the same underwriting criteria as those loans originated directly by the Company. During the nine months ended September 30, 2024, the Company did not purchase any residential real estate mortgage loans. The Company purchased $32.0 million of residential real estate mortgage loans during the nine months ended September 30, 2023. As of September 30, 2024 and December 31, 2023, the amortized cost balance of loans purchased was $373.0 million and $385.5 million, respectively. 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 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 September 30, 2024 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 28,916 $ 69,079 $ 6,388 $ 16,748 $ 25,829 $ 5,781 $ 3,405 $ 156,146 Initial reserve on PCD loans at merger 6,589 45,656 26 581 2,919 40 19 55,830 Charge-offs — (4,520) — (675) (18) — (561) (5,774) Recoveries 7 64 — 319 61 19 166 636 Provision 7,287 28,560 2,022 2,530 4,034 1,763 787 46,983 Ending balance $ 42,799 $ 138,839 $ 8,436 $ 19,503 $ 32,825 $ 7,603 $ 3,816 $ 253,821 For the Three Months Ended September 30, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 29,535 $ 59,524 $ 7,663 $ 15,228 $ 27,012 $ 6,044 $ 2,949 $ 147,955 Charge-offs (11) — — (303) — — (731) (1,045) Recoveries 120 2 — 609 30 39 108 908 Provision (release) (3,126) 11,097 136 (316) (687) (601) 825 7,328 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 For the Nine Months Ended September 30, 2024 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,959 $ 65,475 $ 6,666 $ 14,913 $ 25,954 $ 5,595 $ 3,431 $ 148,993 Initial reserve on PCD loans at merger 6,589 45,656 26 581 2,919 40 19 55,830 Charge-offs — (11,770) — (1,779) (28) (34) (1,870) (15,481) Recoveries 88 2,207 — 928 119 110 467 3,919 Provision 9,163 37,271 1,744 4,860 3,861 1,892 1,769 60,560 Ending balance $ 42,799 $ 138,839 $ 8,436 $ 19,503 $ 32,825 $ 7,603 $ 3,816 $ 253,821 For the Nine Months Ended September 30, 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 (11) — — (900) — (7) (1,883) (2,801) Recoveries 285 8 — 1,294 63 40 335 2,025 Provision (release) (662) 15,885 714 (1,225) (988) (804) 1,934 14,854 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 (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. The Company recorded provisions for allowance for loan losses of $60.6 million and $14.9 million for the nine months ended September 30, 2024 and 2023, respectively. During the three months ended September 30, 2024, the Company recorded a “day-2” provision for allowance for loan losses of $40.9 million related to non-PCD loans acquired in the merger which closed on July 12, 2024. Excluding this amount, the provision for the nine months ended September 30, 2024 amounted to $19.7 million. Management determined a provision to be necessary for the nine months ended September 30, 2024 primarily due to $11.8 million in charge-offs of commercial real estate loans including one commercial real estate loan, of which $7.3 million was partially charged-off, collateralized by a property in the office risk segment which transitioned to non-accrual status during the three months ended March 31, 2024 and had not been previously reserved for on a specific reserve basis, and due to an increase in specific reserves for commercial real estate loans collateralized by a property in the office risk segment. In addition, the Company recorded an allowance for loan losses of $55.8 million related to PCD loans acquired in the merger with Cambridge. This amount represented the initial allowance on such loans and was recorded with a corresponding gross-up of the loan amortized cost balance in connection with purchase accounting therefore not increasing the provision for allowance for loan losses. Refer to Note 3, “Mergers and Acquisitions” for additional discussion. Change in Accounting Estimate In connection with its quarterly computation of the allowance for loan losses, management performs back-testing of the model results compared to actual balances and losses as a part of generating the accounting estimate. In the third quarter of 2024, in response to back-testing results, management updated its prepayment estimate, resulting in an increase to the loan portfolio’s weighted average life, and qualitative reserve framework which reflects management’s best estimate of expected credit losses. The net effect of the such changes to the allowance for loan losses estimation process was an increase of approximately $5.6 million. Reserve for Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. As of September 30, 2024 and December 31, 2023, the Company’s reserve for unfunded lending commitments was $14.0 million and $14.1 million, respectively, which is recorded within other liabilities in the Company's Consolidated Balance Sheets. The Company’s adoption of ASU 2022-02 on January 1, 2023 did not impact the reserve for unfunded lending commitments. 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 any entity or individual that holds a 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 liquidity and capital needs. Consumer Lending Consumer home equity : Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. At the end of the ten-year draw period, home equity lines of credit are amortized over the remaining maturity period and monthly payments of principal and interest are required. 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 September 30, 2024, and gross charge-offs for the nine month period then ended: 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 245,037 $ 404,364 $ 404,632 $ 307,768 $ 337,095 $ 762,266 $ 576,188 $ 501 $ 3,037,851 Special Mention 9,392 26,196 36,670 46,693 13,970 4,834 32,572 291 170,618 Substandard 996 22,413 39,545 1,139 5 1,419 28,419 — 93,936 Doubtful — — — — — 8 6,617 — 6,625 Loss — — — — — — — — — Total commercial and industrial 255,425 452,973 480,847 355,600 351,070 768,527 643,796 792 3,309,030 Current period gross charge-offs — — — — — — — — — Commercial real estate Pass 338,303 521,300 1,801,119 1,041,626 740,812 2,061,550 87,261 — 6,591,971 Special Mention 1,247 45,213 28,524 44,228 — 77,294 3,313 — 199,819 Substandard 8,262 40,479 12,434 18,134 9,207 106,949 2 7,736 203,203 Doubtful — — — — 9,408 83,988 — — 93,396 Loss — — — — — — — — — Total commercial real estate 347,812 606,992 1,842,077 1,103,988 759,427 2,329,781 90,576 7,736 7,088,389 Current period gross charge-offs — — — — — 11,770 — — 11,770 Commercial construction Pass 61,701 218,595 173,616 30,595 — — — — 484,507 Special Mention — 545 — — — — — — 545 Substandard — 24,828 — — — — — — 24,828 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 61,701 243,968 173,616 30,595 — — — — 509,880 Current period gross charge-offs — — — — — — — — — Business banking Pass 127,327 139,974 175,131 191,232 151,202 391,770 95,621 3,898 1,276,155 Special Mention 902 219 1,507 2,457 — 8,924 81 — 14,090 Substandard 333 1,126 3,291 1,338 3,739 10,674 199 101 20,801 Doubtful — — — — — 394 — 367 761 Loss — — — — — — — — — Total business banking 128,562 141,319 179,929 195,027 154,941 411,762 95,901 4,366 1,311,807 Current period gross charge-offs — 493 — 671 297 227 — 91 1,779 Residential real estate Current and accruing 153,323 332,406 984,069 1,047,187 556,666 826,598 — — 3,900,249 30-89 days past due and accruing 799 773 8,412 6,595 2,755 12,510 — — 31,844 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — 2,691 473 576 6,710 — — 10,450 Total residential real estate 154,122 333,179 995,172 1,054,255 559,997 845,818 — — 3,942,543 Current period gross charge-offs — — — — — 28 — — 28 Consumer home equity Current and accruing 9,359 34,457 77,295 8,442 4,471 81,511 1,114,492 13,515 1,343,542 30-89 days past due and accruing — — 160 — — 946 8,108 270 9,484 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 4 — — — — 1,682 6,295 758 8,739 Total consumer home equity 9,363 34,457 77,455 8,442 4,471 84,139 1,128,895 14,543 1,361,765 Current period gross charge-offs — — — — — 2 32 — 34 Other consumer Current and accruing 58,126 66,270 29,088 18,631 9,673 19,979 29,874 40 231,681 30-89 days past due and accruing 20 122 131 74 28 27 147 24 573 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 12 54 23 4 17 15 42 48 215 Total other consumer 58,158 66,446 29,242 18,709 9,718 20,021 30,063 112 232,469 Current period gross charge-offs 803 289 345 205 40 115 73 — 1,870 Total $ 1,015,143 $ 1,879,334 $ 3,778,338 $ 2,766,616 $ 1,839,624 $ 4,460,048 $ 1,989,231 $ 27,549 $ 17,755,883 (1) The amounts presented represent the amortized cost as of September 30, 2024 of revolving loans that were converted to term loans during the nine months ended September 30, 2024. 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, 2023 : 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 477,138 $ 442,896 $ 350,782 $ 341,243 $ 140,641 $ 641,342 $ 485,448 $ 3,255 $ 2,882,745 Special Mention 4,229 25,796 14,994 13,563 89 553 51,106 455 110,785 Substandard 1,534 11,995 1,775 405 — 2,581 7,803 — 26,093 Doubtful — — — — — 8 — — 8 Loss — — — — — — — — — Total commercial and industrial 482,901 480,687 367,551 355,211 140,730 644,484 544,357 3,710 3,019,631 Commercial real estate Pass 498,590 1,435,893 855,014 573,370 516,689 1,291,189 47,581 2,556 5,220,882 Special Mention 15,200 7,990 — 736 2,281 34,803 — — 61,010 Substandard 19,738 12,589 15,237 3,938 33,413 48,978 8,006 — 141,899 Doubtful 10,615 — — — — 19,441 — — 30,056 Loss — — — — — — — — — Total commercial real estate 544,143 1,456,472 870,251 578,044 552,383 1,394,411 55,587 2,556 5,453,847 Commercial construction Pass 133,463 151,957 96,147 — — — 2,614 — 384,181 Special Mention 456 — — — — — — — 456 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 133,919 151,957 96,147 — — — 2,614 — 384,637 Business banking Pass 139,237 165,247 182,606 146,180 110,638 229,636 73,054 3,996 1,050,594 Special Mention 1,474 2,553 1,009 4,294 4,692 11,479 23 27 25,551 Substandard 1,310 596 2,684 2,071 1,464 3,423 594 579 12,721 Doubtful — — — — 507 220 — — 727 Loss — — — — — — — — — Total business banking 142,021 168,396 186,299 152,545 117,301 244,758 73,671 4,602 1,089,593 Residential real estate Current and accruing 257,671 728,997 665,811 354,003 93,817 451,812 — — 2,552,111 30-89 days past due and accruing 750 6,615 2,437 2,112 1,496 8,219 — — 21,629 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 1,755 1,433 291 288 4,958 — — 8,725 Total residential real estate 258,421 737,367 669,681 356,406 95,601 464,989 — — 2,582,465 Consumer home equity Current and accruing 30,393 84,065 9,151 4,899 4,166 80,687 970,882 9,472 1,193,715 30-89 days past due and accruing 148 483 — — — 558 7,509 223 8,921 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 66 — — — 1,466 6,770 230 8,532 Total consumer home equity 30,541 84,614 9,151 4,899 4,166 82,711 985,161 9,925 1,211,168 Other consumer Current and accruing 93,659 36,601 23,962 12,427 11,367 14,609 13,353 85 206,063 30-89 days past due and accruing 170 271 153 25 12 92 40 — 763 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 50 61 25 2 14 34 7 — 193 Total other consumer 93,879 36,933 24,140 12,454 11,393 14,735 13,400 85 207,019 Total $ 1,685,825 $ 3,116,426 $ 2,223,220 $ 1,459,559 $ 921,574 $ 2,846,088 $ 1,674,790 $ 20,878 $ 13,948,360 (1) The amounts presented represent the amortized cost as of December 31, 2023 of revolving loans that were converted to term loans during the year ended December 31, 2023. 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 September 30, 2024 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ — $ 82 $ 9 $ 91 $ 3,308,939 $ 3,309,030 Commercial real estate 13,787 — 10,366 24,153 7,064,236 7,088,389 Commercial construction 1,496 — — 1,496 508,384 509,880 Business banking 7,954 936 2,201 11,091 1,300,716 1,311,807 Residential real estate 27,348 4,861 9,069 41,278 3,901,265 3,942,543 Consumer home equity 7,443 2,233 7,288 16,964 1,344,801 1,361,765 Other consumer 345 228 185 758 231,711 232,469 Total $ 58,373 $ 8,340 $ 29,118 $ 95,831 $ 17,660,052 $ 17,755,883 As of December 31, 2023 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 3,316 $ — $ 465 $ 3,781 $ 3,015,850 $ 3,019,631 Commercial real estate — — — — 5,453,847 5,453,847 Commercial construction — — — — 384,637 384,637 Business banking 3,455 1,647 1,202 6,304 1,083,289 1,089,593 Residential real estate 17,116 4,888 6,764 28,768 2,553,697 2,582,465 Consumer home equity 6,517 2,600 8,204 17,321 1,193,847 1,211,168 Other consumer 532 235 189 956 206,063 207,019 Total $ 30,936 $ 9,370 $ 16,824 $ 57,130 $ 13,891,230 $ 13,948,360 The following table presents information regarding non-accrual loans as of the dates indicated: As of September 30, 2024 As of December 31, 2023 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans (In thousands) Commercial and industrial $ 11 $ 6,625 $ 6,636 $ 4 $ 464 $ 468 Commercial real estate 91,958 1,438 9 |
