Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At June 30, At December 31, 2019 Commercial non-mortgage $ 7,014,407 $ 5,296,611 Asset-based 940,524 1,046,886 Commercial real estate 6,207,314 5,949,339 Equipment financing 591,838 537,341 Total commercial portfolio 14,754,083 12,830,177 Residential 4,921,573 4,972,685 Home equity 1,924,013 2,014,544 Other consumer 202,848 219,580 Total consumer portfolio 7,048,434 7,206,809 Loans and leases (1) (2) (3) $ 21,802,517 $ 20,036,986 (1) Loan balances include net deferred fees/costs and net premiums/discounts of $(16.5) million and $17.6 million at June 30, 2020 and December 31, 2019, respectively. (2) At June 30, 2020 the Company had pledged $8.0 billion of eligible loans as collateral to support borrowing capacity at the Federal Home Loan Bank (FHLB) of Boston and the Federal Reserve Bank (FRB) of Boston. (3) Loan balances exclude accrued interest receivable of $55.5 million and $59.0 million at June 30, 2020 and December 31, 2019, respectively, which is included in accrued interest and other assets in the consolidated balance sheet. Equipment financing includes net investment in leases of $226.8 million, with total undiscounted cash flows, primarily due within the next five years, amounting to $246.0 million, at June 30, 2020. This lessor activity resulted in interest income of $1.8 million and $1.5 million for the three months ended June 30, 2020 and 2019, respectively, and $3.4 million and $2.9 million for the six months ended June 30, 2020 and 2019, respectively. Loans and Leases Aging The following tables summarize the aging of loans and leases: At June 30, 2020 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current Total Loans Commercial non-mortgage $ 6,931 $ 579 $ — $ 67,542 $ 75,052 $ 6,939,355 $ 7,014,407 Asset-based — — — 138 138 940,386 940,524 Commercial real estate 1,206 1,165 198 15,902 18,471 6,188,843 6,207,314 Equipment financing 5,590 855 — 7,793 14,238 577,600 591,838 Residential 7,445 8,064 — 46,579 62,088 4,859,485 4,921,573 Home equity 4,603 1,764 — 34,022 40,389 1,883,624 1,924,013 Other consumer 845 670 — 1,217 2,732 200,116 202,848 Total $ 26,620 $ 13,097 $ 198 $ 173,193 $ 213,108 $ 21,589,409 $ 21,802,517 At December 31, 2019 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current Total Loans Commercial non-mortgage $ 2,094 $ 617 $ — $ 59,369 $ 62,080 $ 5,234,531 $ 5,296,611 Asset-based — — — 139 139 1,046,747 1,046,886 Commercial real estate 1,256 454 — 11,563 13,273 5,936,066 5,949,339 Equipment financing 5,493 292 — 5,433 11,218 526,123 537,341 Residential 7,166 6,441 — 43,193 56,800 4,915,885 4,972,685 Home equity 8,267 5,551 — 30,170 43,988 1,970,556 2,014,544 Other consumer 4,269 807 — 1,192 6,268 213,312 219,580 Total $ 28,545 $ 14,162 $ — $ 151,059 $ 193,766 $ 19,843,220 $ 20,036,986 The following table provides additional detail related to loans and leases on non-accrual status: At June 30, 2020 At December 31, 2019 (In thousands) Nonaccrual Nonaccrual With No Allowance Nonaccrual Nonaccrual With No Allowance Commercial non-mortgage $ 67,542 $ 29,385 $ 59,369 $ 13,584 Asset-based 138 — 139 — Commercial real estate 15,902 3,817 11,563 4,717 Equipment financing 7,793 3,881 5,433 2,159 Total commercial portfolio 91,375 37,083 76,504 20,460 Residential 46,579 34,913 43,193 19,271 Home equity 34,022 27,230 30,170 15,195 Other consumer 1,217 66 1,192 — Total consumer portfolio 81,818 62,209 74,555 34,466 Total $ 173,193 $ 99,292 $ 151,059 $ 54,926 Interest on non-accrual residential and home equity loans that would have been recorded as additional interest income had the loans been current in accordance with the original terms totaled $3.8 million and $3.4 million for the three months ended June 30, 2020 and 2019, respectively, and $6.8 million and $6.1 million for the six months ended June 30, 2020 and 2019, respectively. Refer to Note 1 to the Consolidated Financial Statements included in the Company's Form 10-K, for the year ended December 31, 2019, for details of non-accrual policies. Allowance for Credit Losses on Loans and Leases The following tables summarize the activity in, as well as the loan and lease balances that were evaluated for, ACL on loans and leases: At or for the three months ended June 30, 2020 At or for the three months ended June 30, 2019 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 261,926 $ 73,005 $ 334,931 $ 164,057 $ 47,332 $ 211,389 Adoption of ASU No. 2016-13 (CECL) — — — — — — Provision charged to expense 44,605 (4,602) 40,003 7,920 3,980 11,900 Charge-offs (15,294) (2,780) (18,074) (8,130) (6,252) (14,382) Recoveries 283 1,379 1,662 497 2,267 2,764 Balance, end of period 291,520 67,002 358,522 164,344 $ 47,327 211,671 At or for the six months ended June 30, 2020 At or for the six months ended June 30, 2019 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 161,669 $ 47,427 $ 209,096 $ 164,073 $ 48,280 $ 212,353 Adoption of ASU No. 2016-13 (CECL) 34,024 23,544 57,568 — — — Provision charged to expense 115,848 240 116,088 15,910 4,590 20,500 Charge-offs (20,868) (7,367) (28,235) (16,940) (10,476) (27,416) Recoveries 847 3,158 4,005 1,301 4,933 6,234 Balance, end of period $ 291,520 $ 67,002 $ 358,522 $ 164,344 $ 47,327 $ 211,671 Individually evaluated for impairment $ 15,271 $ 4,484 $ 19,755 $ 9,520 $ 5,261 $ 14,781 Collectively evaluated for impairment $ 276,249 $ 62,518 $ 338,767 $ 154,824 $ 42,066 $ 196,890 Loan and lease balances: Individually evaluated for impairment $ 165,010 $ 158,146 $ 323,156 $ 115,747 $ 137,500 $ 253,247 Collectively evaluated for impairment 14,589,073 6,890,288 21,479,361 12,134,141 6,882,495 19,016,636 Loans and leases $ 14,754,083 $ 7,048,434 $ 21,802,517 $ 12,249,888 $ 7,019,995 $ 19,269,883 Credit Quality Indicators. To measure credit risk for the commercial, commercial real estate, and equipment financing portfolios, the Company employs a dual grade credit risk grading system for estimating the PD and the LGD. The Company's credit risk grading system has not changed with the adoption of CECL. The credit risk grade system assigns a rating to each borrower and to the facility, which together form a Composite Credit Risk Profile. The credit risk grade system categorizes borrowers by common financial characteristics that measure the credit strength of borrowers and facilities by common structural characteristics. The Composite Credit Risk Profile has ten grades, with each grade corresponding to a progressively greater risk of loss. Grades (1)-(6) are considered pass ratings, and (7)-(10) are considered criticized as defined by the regulatory agencies. Risk ratings, assigned to differentiate risk within the portfolio, are reviewed on an ongoing basis and revised to reflect changes in a borrowers’ current financial position and outlook, risk profile, and the related collateral and structural position. Loan officers review updated financial information on at least an annual basis for all pass rated loans to assess the accuracy of the risk grade. Criticized loans undergo more frequent reviews and enhanced monitoring. A (7) "Special Mention" credit has the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the asset. A (8) "Substandard" asset has a well-defined weakness that jeopardizes the full repayment of the debt. An asset rated (9) "Doubtful" has all of the same weaknesses as a substandard credit with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, improbable. Assets classified as (10) "Loss" in accordance with regulatory guidelines are considered uncollectible and charged off. For residential and consumer loans, the most relevant credit characteristic is FICO score. FICO scores are a widely used credit score and range from 300 to 850. A lower FICO score is indicative of higher credit risk. FICO scores are updated at least quarterly. The following table summarizes commercial, commercial real estate, and equipment financing loans and leases segregated by origination year and risk rating exposure under the Composite Credit Risk Profile grades as of June 30, 2020: (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 2,091,770 $ 1,315,532 $ 1,075,646 $ 579,143 $ 290,622 $ 301,222 $ 1,044,939 $ 6,698,874 Special mention — 14,107 7,308 1,967 — 2,287 4,075 29,744 Substandard 1,358 29,551 39,811 78,633 30,377 45,159 57,353 282,242 Doubtful — 3,378 — 169 — — — 3,547 Total commercial non-mortgage 2,093,128 1,362,568 1,122,765 659,912 320,999 348,668 1,106,367 7,014,407 Asset-based Pass 274 22,033 23,192 13,746 11,460 24,119 788,588 883,412 Special mention — 2,000 825 — — 1,069 24,310 28,204 Substandard — — — — — — 28,908 28,908 Total asset-based 274 24,033 24,017 13,746 11,460 25,188 841,806 940,524 Commercial real estate Pass 482,416 1,475,625 1,329,814 668,039 632,735 1,444,747 31,845 6,065,221 Special mention — 754 33,222 17,137 26,514 2,847 — 80,474 Substandard 426 — 1,053 15,336 2,359 42,445 — 61,619 Total commercial real estate 482,842 1,476,379 1,364,089 700,512 661,608 1,490,039 31,845 6,207,314 Equipment financing Pass 177,753 169,602 90,000 38,268 60,434 31,716 — 567,773 Special mention 920 555 1,094 — 772 41 — 3,382 Substandard 279 1,424 5,886 2,672 4,795 5,627 — 20,683 Total equipment financing 178,952 171,581 96,980 40,940 66,001 37,384 — 591,838 Total commercial portfolio $ 2,755,196 $ 3,034,561 $ 2,607,851 $ 1,415,110 $ 1,060,068 $ 1,901,279 $ 1,980,018 $ 14,754,083 The following table summarizes residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings as of June 30, 2020: (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 131,201 $ 346,512 $ 85,148 $ 270,790 $ 359,629 $ 1,032,865 $ — $ 2,226,145 740-799 255,226 391,122 84,278 152,587 193,526 554,884 — 1,631,623 670-739 94,849 166,948 54,617 91,176 81,916 289,242 — 778,748 580-669 6,538 19,604 9,155 11,973 20,381 111,678 — 179,329 579 and below — 23,675 411 4,697 3,328 73,617 — 105,728 Total residential 487,814 947,861 233,609 531,223 658,780 2,062,286 — 4,921,573 Home equity 800+ 13,198 18,228 31,456 19,685 20,041 69,363 579,333 751,304 740-799 16,594 16,778 23,242 12,679 14,740 55,107 435,724 574,864 670-739 7,495 12,065 13,307 11,618 9,624 49,345 307,414 410,868 580-669 568 3,124 3,189 2,217 1,682 22,513 101,626 134,919 579 and below 101 377 903 1,316 868 9,764 38,729 52,058 Total home equity 37,956 50,572 72,097 47,515 46,955 206,092 1,462,826 1,924,013 Other consumer 800+ 1,483 3,886 2,275 690 168 193 7,299 15,994 740-799 10,882 20,328 11,995 1,993 708 431 3,970 50,307 670-739 23,238 56,607 24,674 5,737 2,475 1,198 5,708 119,637 580-669 2,603 4,859 2,254 821 363 318 1,791 13,009 579 and below 1,043 624 315 91 58 227 1,543 3,901 Total other consumer 39,249 86,304 41,513 9,332 3,772 2,367 20,311 202,848 Total consumer portfolio 565,019 1,084,737 347,219 588,070 709,507 2,270,745 1,483,137 7,048,434 Total commercial portfolio 2,755,196 3,034,561 2,607,851 1,415,110 1,060,068 1,901,279 1,980,018 14,754,083 Total loans and leases $ 3,320,215 $ 4,119,298 $ 2,955,070 $ 2,003,180 $ 1,769,575 $ 4,172,024 $ 3,463,155 $ 21,802,517 Individually Assessed Loans and Leases The following tables summarize individually assessed loans and leases: At June 30, 2020 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 174,593 $ 129,552 $ 64,967 $ 64,585 $ 12,080 Asset-based 464 138 — 138 3 Commercial real estate 33,694 27,526 13,838 13,688 3,061 Equipment financing 7,233 7,794 3,881 3,913 127 Residential 120,304 106,772 68,597 38,175 3,304 Home equity 114,326 50,157 38,277 11,880 1,022 Other consumer 2,870 1,217 66 1,151 158 Total $ 453,484 $ 323,156 $ 189,626 $ 133,530 $ 19,755 At December 31, 2019 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 140,096 $ 102,254 $ 29,739 $ 72,515 $ 7,862 Asset-based 465 139 — 139 5 Commercial real estate 29,292 23,297 14,818 8,479 1,143 Equipment financing 5,591 5,433 2,159 3,274 418 Residential 98,790 90,096 56,231 33,865 3,618 Home equity 38,503 35,191 27,672 7,519 1,203 Other consumer (1) — — — — — Total $ 312,737 $ 256,410 $ 130,619 $ 125,791 $ 14,249 (1) Partially charged-off other consumer loans were included in collectively evaluated for impairment at December 31, 2019. The following table summarizes average amortized cost and interest income recognized for individually assessed loans and leases: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Commercial non-mortgage $ 136,483 $ 875 $ — $ 106,753 $ 844 $ — $ 115,903 $ 1,928 $ — $ 98,511 $ 1,764 $ — Asset-based 138 — — 201 — — 139 — — 204 — — Commercial real estate 26,017 169 — 13,070 61 — 25,411 315 — 12,354 134 — Equipment financing 8,373 — — 4,451 — — 6,613 — — 5,132 — — Residential 121,488 781 230 101,245 912 282 113,806 1,611 860 101,850 1,820 546 Home equity 50,573 309 413 38,092 287 241 43,863 700 1,243 38,238 556 521 Other consumer 1,121 — — — — — 609 17 — — — — Total $ 344,193 $ 2,134 $ 643 $ 263,812 $ 2,104 $ 523 $ 306,344 $ 4,571 $ 2,103 $ 256,289 $ 4,274 $ 1,067 Collateral Dependent Loans and Leases. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and it is expected to be repaid substantially through the sale or operation of the collateral. A collateral dependent loan is individually assessed based on the fair value of the collateral, less costs to sell, as of the reporting date. Commercial non-mortgage, asset based, and equipment financing are collateralized by equipment, inventory, receivables, or other non-real estate assets. Commercial real estate, residential, and home equity are collateralized by real estate. Collateral value on collateral dependent loans and leases was $143.6 million at June 30, 2020 and $109.8 million at December 31, 2019. The following table summarizes whether, or not, individually assessed loans and leases are collateral dependent: June 30, 2020 December 31, 2019 (In thousands) Collateral Dependent Not Considered Collateral Dependent Total Collateral Dependent Not Considered Collateral Dependent Total Commercial non-mortgage $ 16,028 $ 113,524 $ 129,552 $ 10,682 $ 91,572 $ 102,254 Asset-based — 138 138 — 139 139 Commercial real estate 19,146 8,380 27,526 14,097 9,200 23,297 Equipment financing — 7,794 7,794 — 5,433 5,433 Residential 37,708 69,064 106,772 17,635 72,461 90,096 Home equity 30,493 19,664 50,157 17,136 18,055 35,191 Other consumer — 1,217 1,217 — — — Total amortized cost of CDA $ 103,375 $ 219,781 $ 323,156 $ 59,550 $ 196,860 $ 256,410 Troubled Debt Restructurings The following table summarizes information for TDRs: (In thousands) At June 30, At December 31, 2019 Accrual status $ 147,950 $ 136,449 Non-accrual status 113,496 100,989 Total TDRs $ 261,446 $ 237,438 Specific reserves for TDRs included in the balance of ACL on loans and leases $ 15,027 $ 12,956 Additional funds committed to borrowers in TDR status 15,547 4,856 The portion of TDRs deemed to be uncollectible, $1.9 million and $4.2 million for the three months ended June 30, 2020 and 2019, respectively, and $3.1 million and $5.6 million for the six months ended June 30, 2020 and 2019, respectively, were charged off. The following table provides information on the type of concession for loans and leases modified as TDRs: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Number of Post- Modification Recorded Investment (1) Number of Post- Modification Recorded Investment (1) Number of Post- Modification Recorded Investment (1) Number of Post- Modification Recorded Investment (1) (Dollars in thousands) Commercial non-mortgage Extended Maturity 4 $ 403 4 $ 69 6 $ 507 6 $ 193 Adjusted Interest Rate — — 1 100 — — 1 100 Maturity/Rate Combined — — 2 46 5 274 3 71 Other (2) 13 12,985 4 12,029 23 40,122 19 34,056 Commercial real estate Extended Maturity 1 72 — — 1 72 — — Maturity/Rate Combined — — — — 1 278 — — Other (2) — — — — — — 2 2,636 Residential Extended Maturity 1 87 3 421 2 351 4 940 Maturity/Rate Combined 2 255 8 1,397 5 698 13 1,848 Other (2) 17 3,062 2 281 20 3,675 4 542 Consumer Extended Maturity 2 157 2 225 2 157 4 370 Maturity/Rate Combined — — 2 110 1 13 2 110 Other (2) 63 4,399 6 466 74 5,512 19 1,220 Total TDRs 103 $ 21,420 34 $ 15,144 140 $ 51,659 77 $ 42,086 (1) Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of the restructurings was not significant. (2) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions. There were no significant amounts of loans and leases modified as TDRs within the previous 12 months and for which there was a payment default for the three and six months ended June 30, 2020 and 2019. TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: (In thousands) At June 30, 2020 At December 31, 2019 (1) - (6) Pass $ 3,362 $ 3,952 (7) Special Mention — 63 (8) Substandard 131,498 104,277 (9) Doubtful 3,547 3,860 Total $ 138,407 $ 112,152 |