Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At September 30, At December 31, 2019 Commercial non-mortgage $ 7,124,365 $ 5,296,611 Asset-based 889,711 1,046,886 Commercial real estate 6,307,567 5,949,339 Equipment financing 598,473 537,341 Total commercial portfolio 14,920,116 12,830,177 Residential 4,885,821 4,972,685 Home equity 1,867,969 2,014,544 Other consumer 178,117 219,580 Total consumer portfolio 6,931,907 7,206,809 Loans and leases (1) (2) (3) $ 21,852,023 $ 20,036,986 (1) Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(14.1) million and $17.6 million at September 30, 2020 and December 31, 2019, respectively. (2) At September 30, 2020 the Company had pledged $7.9 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 $56.6 million and $59.0 million at September 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 $235.6 million, with total undiscounted cash flows, primarily due within the next five years, amounting to $255.9 million, at September 30, 2020. This lessor activity resulted in interest income of $1.8 million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively, and $5.2 million and $4.0 million for the nine months ended September 30, 2020 and 2019, respectively. Loans and Leases Aging The following tables summarize the aging of loans and leases: At September 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 $ 1,027 $ 67 $ — $ 67,849 $ 68,943 $ 7,055,422 $ 7,124,365 Asset-based — — — 3,760 3,760 885,951 889,711 Commercial real estate 330 — — 8,799 9,129 6,298,438 6,307,567 Equipment financing 183 2,550 — 7,182 9,915 588,558 598,473 Residential 4,478 4,787 — 41,554 50,819 4,835,002 4,885,821 Home equity 5,180 1,572 — 32,853 39,605 1,828,364 1,867,969 Other consumer 1,069 556 — 679 2,304 175,813 178,117 Total $ 12,267 $ 9,532 $ — $ 162,676 $ 184,475 $ 21,667,548 $ 21,852,023 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 September 30, 2020 At December 31, 2019 (In thousands) Nonaccrual Nonaccrual With No Allowance Nonaccrual Nonaccrual With No Allowance Commercial non-mortgage $ 67,849 $ 12,136 $ 59,369 $ 13,584 Asset-based 3,760 — 139 — Commercial real estate 8,799 2,729 11,563 4,717 Equipment financing 7,182 2,659 5,433 2,159 Total commercial portfolio 87,590 17,524 76,504 20,460 Residential 41,554 30,234 43,193 19,271 Home equity 32,853 25,981 30,170 15,195 Other consumer 679 31 1,192 — Total consumer portfolio 75,086 56,246 74,555 34,466 Total $ 162,676 $ 73,770 $ 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 $3.4 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, and $9.0 million and $8.9 million for the nine months ended September 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 September 30, 2020 At or for the three months ended September 30, 2019 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 291,520 $ 67,002 $ 358,522 $ 164,344 $ 47,327 $ 211,671 Adoption of ASU No. 2016-13 (CECL) — — — — — — Provision charged to expense 31,618 (8,865) 22,753 10,603 697 11,300 Charge-offs (13,494) (2,263) (15,757) (11,323) (4,637) (15,960) Recoveries 2,025 2,268 4,293 176 1,965 2,141 Balance, end of period $ 311,669 $ 58,142 $ 369,811 $ 163,800 $ 45,352 $ 209,152 At or for the nine months ended September 30, 2020 At or for the nine months ended September 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 147,466 (8,625) 138,841 26,513 5,287 31,800 Charge-offs (34,362) (9,630) (43,992) (28,263) (15,113) (43,376) Recoveries 2,872 5,426 8,298 1,477 6,898 8,375 Balance, end of period $ 311,669 $ 58,142 $ 369,811 $ 163,800 $ 45,352 $ 209,152 Individually evaluated for impairment 18,303 4,376 22,679 15,467 4,899 20,366 Collectively evaluated for impairment $ 293,366 $ 53,766 $ 347,132 $ 148,333 $ 40,453 $ 188,786 Loan and lease balances: Individually evaluated for impairment $ 158,324 $ 149,583 $ 307,907 $ 139,129 $ 131,502 $ 270,631 Collectively evaluated for impairment 14,761,792 6,782,324 21,544,116 12,268,839 7,012,176 19,281,015 Loans and leases $ 14,920,116 $ 6,931,907 $ 21,852,023 $ 12,407,968 $ 7,143,678 $ 19,551,646 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 September 30, 2020: (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 2,519,566 $ 1,156,057 $ 1,013,841 $ 553,942 $ 257,230 $ 297,765 $ 912,007 $ 6,710,408 Special mention 817 73,688 20,314 341 8,422 2,302 21,233 127,117 Substandard 1,369 33,658 68,305 75,071 23,138 33,137 51,996 286,674 Doubtful — — — 166 — — — 166 Total commercial non-mortgage 2,521,752 1,263,403 1,102,460 629,520 288,790 333,204 985,236 7,124,365 Asset-based Pass 14,848 21,854 22,595 11,635 11,039 22,667 714,476 819,114 Special mention — 1,667 800 — — 978 63,392 66,837 Substandard — — — — — — 3,760 3,760 Total asset-based 14,848 23,521 23,395 11,635 11,039 23,645 781,628 889,711 Commercial real estate Pass 646,507 1,473,602 1,296,427 605,375 595,915 1,329,377 28,106 5,975,309 Special mention 22 10,382 48,409 27,364 35,796 76,243 — 198,216 Substandard 821 989 23,095 68,828 2,444 37,865 — 134,042 Total commercial real estate 647,350 1,484,973 1,367,931 701,567 634,155 1,443,485 28,106 6,307,567 Equipment financing Pass 203,498 144,384 75,993 31,921 52,328 26,319 — 534,443 Special mention 12,492 13,014 8,471 1,834 1,932 788 — 38,531 Substandard 2,380 5,498 5,563 2,430 4,802 4,826 — 25,499 Total equipment financing 218,370 162,896 90,027 36,185 59,062 31,933 — 598,473 Total commercial portfolio $ 3,402,320 $ 2,934,793 $ 2,583,813 $ 1,378,907 $ 993,046 $ 1,832,267 $ 1,794,970 $ 14,920,116 The following table summarizes residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings as of September 30, 2020: (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 253,913 $ 314,759 $ 69,592 $ 205,691 $ 316,264 $ 905,892 $ — $ 2,066,111 740-799 458,499 355,548 81,018 164,777 194,784 516,385 — 1,771,011 670-739 161,600 144,798 43,790 77,823 80,481 283,164 — 791,656 580-669 12,316 19,803 7,260 12,010 11,836 102,055 — 165,280 579 and below — 21,363 676 3,771 3,250 62,703 — 91,763 Total residential 886,328 856,271 202,336 464,072 606,615 1,870,199 — 4,885,821 Home equity 800+ 22,727 17,095 27,269 18,031 19,328 66,906 564,318 735,674 740-799 20,580 16,472 23,739 11,659 12,765 49,507 446,759 581,481 670-739 12,122 10,847 10,808 10,506 9,290 45,013 285,776 384,362 580-669 447 2,257 3,346 2,297 1,964 19,707 91,009 121,027 579 and below 100 524 879 1,337 835 7,707 34,043 45,425 Total home equity 55,976 47,195 66,041 43,830 44,182 188,840 1,421,905 1,867,969 Other consumer 800+ 1,345 3,436 1,901 581 115 173 6,851 14,402 740-799 10,419 17,858 9,665 1,491 503 344 6,402 46,682 670-739 21,089 49,734 19,855 4,158 1,616 520 5,676 102,648 580-669 2,440 4,247 1,744 600 253 180 1,623 11,087 579 and below 717 513 250 66 35 225 1,492 3,298 Total other consumer 36,010 75,788 33,415 6,896 2,522 1,442 22,044 178,117 Total consumer portfolio 978,314 979,254 301,792 514,798 653,319 2,060,481 1,443,949 6,931,907 Total commercial portfolio 3,402,320 2,934,793 2,583,813 1,378,907 993,046 1,832,267 1,794,970 14,920,116 Total loans and leases $ 4,380,634 $ 3,914,047 $ 2,885,605 $ 1,893,705 $ 1,646,365 $ 3,892,748 $ 3,238,919 $ 21,852,023 Individually Assessed Loans and Leases The following tables summarize individually assessed loans and leases: At September 30, 2020 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 160,667 $ 125,799 $ 28,937 $ 96,862 $ 15,833 Asset-based 4,114 3,760 — 3,760 459 Commercial real estate 24,865 21,583 12,679 8,904 1,613 Equipment financing 7,661 7,182 2,659 4,523 398 Residential 110,542 100,443 63,457 36,986 3,293 Home equity 111,715 48,461 36,477 11,984 1,012 Other consumer 2,321 679 30 649 71 Total $ 421,885 $ 307,907 $ 144,239 $ 163,668 $ 22,679 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 September 30, Nine months ended September 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 $ 127,676 $ 954 $ — $ 102,996 $ 751 $ — $ 114,027 $ 2,882 $ — $ 103,772 $ 2,515 $ — Asset-based 1,949 — — 4,673 — — 1,950 — — 4,694 — — Commercial real estate 24,555 192 — 15,051 60 — 22,440 507 — 13,526 194 — Equipment financing 7,488 — — 4,718 — — 6,308 — — 5,901 — — Residential 103,608 741 289 97,917 862 271 95,270 2,352 1,149 99,599 2,682 817 Home equity 49,309 302 297 36,584 247 246 41,826 1,002 1,540 37,490 803 767 Other consumer 948 13 — — — — 340 30 — — — — Total $ 315,533 $ 2,202 $ 586 $ 261,939 $ 1,920 $ 517 $ 282,161 $ 6,773 $ 2,689 $ 264,982 $ 6,194 $ 1,584 Collateral Dependent Loans and Leases. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is substantially expected through the operation or sale of 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 $135.3 million at September 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: At September 30, 2020 At December 31, 2019 (In thousands) Collateral Dependent Not Considered Collateral Dependent Total Collateral Dependent Not Considered Collateral Dependent Total Commercial non-mortgage $ 11,337 $ 114,462 $ 125,799 $ 10,682 $ 91,572 $ 102,254 Asset-based — 3,760 3,760 — 139 139 Commercial real estate 15,708 5,875 21,583 14,097 9,200 23,297 Equipment financing — 7,182 7,182 — 5,433 5,433 Residential 35,379 65,064 100,443 17,635 72,461 90,096 Home equity 28,857 19,604 48,461 17,136 18,055 35,191 Other consumer — 679 679 — — — Total amortized cost of CDA $ 91,281 $ 216,626 $ 307,907 $ 59,550 $ 196,860 $ 256,410 Troubled Debt Restructurings The following table summarizes information for TDRs: (In thousands) At September 30, At December 31, 2019 Accrual status $ 143,544 $ 136,449 Non-accrual status 101,750 100,989 Total TDRs $ 245,294 $ 237,438 Specific reserves for TDRs included in the balance of ACL on loans and leases $ 17,092 $ 12,956 Additional funds committed to borrowers in TDR status 15,345 4,856 The portion of TDRs deemed to be uncollectible, $7.8 million and $11.0 million for the three months ended September 30, 2020 and 2019, respectively, and $10.8 million and $16.7 million for the nine months ended September 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 September 30, Nine months ended September 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 — $ — 2 $ 29 6 $ 507 8 $ 222 Adjusted Interest Rate — — 1 12 — — 2 112 Maturity/Rate Combined 2 333 3 225 7 607 6 296 Other (2) 1 6 6 30,586 24 40,128 25 64,642 Commercial real estate Extended Maturity — — — — 1 72 — — Maturity/Rate Combined — — — — 1 278 — — Other (2) 3 306 1 2,180 3 306 3 4,816 Residential Extended Maturity 1 134 1 67 3 485 5 1,007 Maturity/Rate Combined 4 425 1 368 9 1,123 14 2,216 Other (2) 2 202 2 243 22 3,877 6 785 Home equity Extended Maturity 1 31 1 134 3 188 5 504 Maturity/Rate Combined 1 15 2 30 2 28 4 140 Other (2) 15 506 8 375 89 6,018 27 1,595 Total TDRs 30 $ 1,958 28 $ 34,249 170 $ 53,617 105 $ 76,335 (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 nine months ended September 30, 2020, while there were 4 loans and leases in the commercial portfolio with an amortized cost of $3.9 million and one loan in the consumer portfolio with an amortized cost of $0.1 million for the three and nine months ended September 30, 2019. TDRs in commercial, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: (In thousands) At September 30, 2020 At December 31, 2019 Pass $ 12,591 $ 3,952 Special Mention — 63 Substandard 111,613 104,277 Doubtful 166 3,860 Total $ 124,370 $ 112,152 |