Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At March 31, At December 31, 2020 Commercial non-mortgage $ 6,918,626 $ 7,085,076 Asset-based 907,421 890,598 Commercial real estate 6,338,056 6,322,637 Equipment financing 611,440 602,224 Commercial portfolio 14,775,543 14,900,535 Residential 4,668,945 4,782,016 Home equity 1,724,599 1,802,865 Other consumer 132,296 155,799 Consumer portfolio 6,525,840 6,740,680 Loans and leases (1) (2) (3) $ 21,301,383 $ 21,641,215 (1) Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(20.1) million and $(10.5) million at March 31, 2021 and December 31, 2020, respectively. (2) At March 31, 2021, the Company had pledged $7.6 billion of eligible loans as collateral to support borrowing capacity at the FHLB of Boston and the FRB of Boston. (3) Loan balances exclude accrued interest receivable of $58.5 million and $57.8 million at March 31, 2021 and December 31, 2020, respectively, which is included in accrued interest receivable and other assets on the accompanying Condensed Consolidated Balance Sheets. Equipment financing includes net investment in leases of $223.9 million. Total undiscounted cash flows, primarily due within the next five years, amounting to $243.3 million, at March 31, 2021. This lessor activity resulted in interest income of $1.9 million and $1.5 million for the three months ended March 31, 2021 and 2020, respectively. Loans and Leases Aging The following table summarizes the aging of loans and leases: At March 31, 2021 (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 $ 1,460 $ 135 $ 50 $ 53,871 $ 55,516 $ 6,863,110 $ 6,918,626 Asset-based — — — 2,402 2,402 905,019 907,421 Commercial real estate 508 197 — 13,752 14,457 6,323,599 6,338,056 Equipment financing 5,778 37 — 6,080 11,895 599,545 611,440 Commercial portfolio 7,746 369 50 76,105 84,270 14,691,273 14,775,543 Residential 4,079 1,186 — 42,768 48,033 4,620,912 4,668,945 Home equity 4,514 1,371 — 30,892 36,777 1,687,822 1,724,599 Other consumer 510 657 — 596 1,763 130,533 132,296 Consumer portfolio 9,103 3,214 — 74,256 86,573 6,439,267 6,525,840 Total $ 16,849 $ 3,583 $ 50 $ 150,361 $ 170,843 $ 21,130,540 $ 21,301,383 At December 31, 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 $ 612 $ 903 $ 445 $ 64,073 $ 66,033 $ 7,019,043 $ 7,085,076 Asset-based 1,174 — — 2,594 3,768 886,830 890,598 Commercial real estate 2,400 619 — 21,231 24,250 6,298,387 6,322,637 Equipment financing 5,107 2,308 — 7,299 14,714 587,510 602,224 Commercial portfolio 9,293 3,830 445 95,197 108,765 14,791,770 14,900,535 Residential 4,334 6,330 — 41,081 51,745 4,730,271 4,782,016 Home equity 5,500 1,771 — 31,030 38,301 1,764,564 1,802,865 Other consumer 878 601 — 652 2,131 153,668 155,799 Consumer portfolio 10,712 8,702 — 72,763 92,177 6,648,503 6,740,680 Total $ 20,005 $ 12,532 $ 445 $ 167,960 $ 200,942 $ 21,440,273 $ 21,641,215 The following table provides additional detail related to loans and leases on non-accrual status: At March 31, 2021 At December 31, 2020 (In thousands) Non-accrual Non-accrual With No Allowance Non-accrual Non-accrual With No Allowance Commercial non-mortgage $ 53,871 $ 10,635 $ 64,073 $ 16,985 Asset-based 2,402 2,402 2,594 — Commercial real estate 13,752 554 21,231 15,529 Equipment financing 6,080 2,758 7,299 2,983 Commercial portfolio 76,105 16,349 95,197 35,497 Residential 42,768 31,274 41,081 29,843 Home equity 30,892 23,370 31,030 24,091 Other consumer 596 38 652 2 Consumer portfolio 74,256 54,682 72,763 53,936 Total $ 150,361 $ 71,031 $ 167,960 $ 89,433 Interest on non-accrual residential and home equity loans, which would have been recorded as additional interest income had the loans been current in accordance with the original terms, totaled $4.0 million and $3.3 million for the three months ended March 31, 2021 and 2020, respectively. Refer to Note 1 to the Consolidated Financial Statements included in the Company's Form 10-K for the year ended December 31, 2020, for details of non-accrual policies. Allowance for Credit Losses on Loans and Leases The following table summarizes 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 March 31, 2021 At or for the three months ended March 31, 2020 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 312,244 $ 47,187 $ 359,431 $ 161,669 $ 47,427 $ 209,096 Adoption of ASU No. 2016-13 (CECL) — — — 34,024 23,544 57,568 (Benefit) provision (23,653) (2,106) (25,759) 71,243 4,842 76,085 Charge-offs (6,321) (2,974) (9,295) (5,574) (4,587) (10,161) Recoveries 1,636 2,338 3,974 564 1,779 2,343 Balance, end of period $ 283,906 $ 44,445 $ 328,351 $ 261,926 $ 73,005 $ 334,931 Individually evaluated for impairment 14,809 4,913 19,722 8,235 4,777 13,012 Collectively evaluated for impairment $ 269,097 $ 39,532 $ 308,629 $ 253,691 $ 68,228 $ 321,919 Loan and lease balances: Individually evaluated for impairment $ 149,145 $ 140,066 $ 289,211 $ 177,012 $ 155,105 $ 332,117 Collectively evaluated for impairment 14,626,398 6,385,774 21,012,172 13,511,409 7,047,998 20,559,407 Loans and leases $ 14,775,543 $ 6,525,840 $ 21,301,383 $ 13,688,421 $ 7,203,103 $ 20,891,524 Credit Quality Indicators. To measure credit risk for the commercial portfolio, the Company employs a dual grade credit risk grading system for estimating the PD and LGD. 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) to (6) are considered pass ratings, and grades (7) to (10) are considered criticized, as defined by the regulatory agencies. Risk ratings assigned in order 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" rating has the potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the credit. An (8) - "Substandard" rating has a well-defined weakness that jeopardizes the full repayment of the debt. A (9) - "Doubtful" rating has all of the same weaknesses as a substandard credit with the added characteristic that the weakness makes collection or liquidation in full improbably, given current facts, conditions, and values. Credits when classified as (10) - "Loss", in accordance with regulatory guidelines, are considered uncollectible and charged off. The following tables summarize 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 March 31, 2021 and December 31, 2020: At March 31, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 832,940 $ 2,168,628 $ 957,425 $ 794,005 $ 443,935 $ 416,891 $ 846,850 $ 6,460,674 Special mention — 7,430 33,416 63,403 128 19,991 31,380 155,748 Substandard — 71,611 50,013 82,673 27,423 36,782 33,702 302,204 Commercial non-mortgage 832,940 2,247,669 1,040,854 940,081 471,486 473,664 911,932 6,918,626 Asset-based Pass — 25,881 15,711 22,572 10,890 26,675 762,386 864,115 Special mention — — — 750 — — 40,154 40,904 Substandard — — 2,402 — — — — 2,402 Asset-based — 25,881 18,113 23,322 10,890 26,675 802,540 907,421 Commercial real estate Pass 172,136 921,002 1,473,799 1,227,983 519,241 1,655,611 25,038 5,994,810 Special mention — 27 19,569 40,601 37,690 107,235 — 205,122 Substandard — 813 789 21,884 60,794 53,844 — 138,124 Commercial real estate 172,136 921,842 1,494,157 1,290,468 617,725 1,816,690 25,038 6,338,056 Equipment financing Pass 66,283 232,733 127,083 59,846 22,961 54,613 — 563,519 Special mention — 3,435 11,316 5,185 868 1,376 — 22,180 Substandard 921 10,292 4,484 6,148 1,480 2,416 — 25,741 Equipment financing 67,204 246,460 142,883 71,179 25,309 58,405 — 611,440 Commercial portfolio $ 1,072,280 $ 3,441,852 $ 2,696,007 $ 2,325,050 $ 1,125,410 $ 2,375,434 $ 1,739,510 $ 14,775,543 At December 31, 2020 (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 2,771,373 $ 1,052,080 $ 907,110 $ 481,321 $ 231,280 $ 218,001 $ 936,592 $ 6,597,757 Special mention 32,535 33,969 62,034 435 8,357 13,757 38,496 189,583 Substandard 54,716 51,798 66,324 36,159 15,535 23,957 49,084 297,573 Doubtful — — — 163 — — — 163 Commercial non-mortgage 2,858,624 1,137,847 1,035,468 518,078 255,172 255,715 1,024,172 7,085,076 Asset-based Pass 26,344 15,960 23,123 11,333 10,963 16,484 741,336 845,543 Special mention — — 775 — — — 41,687 42,462 Substandard — 2,504 — — — — 89 2,593 Asset-based 26,344 18,464 23,898 11,333 10,963 16,484 783,112 890,598 Commercial real estate Pass 965,582 1,461,201 1,242,322 527,931 554,630 1,165,331 28,113 5,945,110 Special mention 27 10,385 70,704 37,539 35,617 69,832 — 224,104 Substandard 817 1,132 21,923 73,621 2,962 52,968 — 153,423 Commercial real estate 966,426 1,472,718 1,334,949 639,091 593,209 1,288,131 28,113 6,322,637 Equipment financing Pass 249,370 135,263 68,092 26,433 43,469 22,879 — 545,506 Special mention 7,934 11,043 6,981 1,220 1,577 788 — 29,543 Substandard 7,483 6,169 5,749 2,460 4,743 571 — 27,175 Equipment financing 264,787 152,475 80,822 30,113 49,789 24,238 — 602,224 Commercial portfolio $ 4,116,181 $ 2,781,504 $ 2,475,137 $ 1,198,615 $ 909,133 $ 1,584,568 $ 1,835,397 $ 14,900,535 To measure credit risk for the consumer portfolio, the most relevant credit characteristic is the FICO score, which is a widely used credit scoring system that ranges from 300 to 850. A lower FICO score is indicative of higher credit risk. FICO scores are updated at least quarterly. The following tables summarize residential and consumer loans segregated by origination year and risk rating exposure under FICO score groupings as of March 31, 2021 and December 31, 2020: At March 31, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 78,004 $ 453,272 $ 226,982 $ 51,458 $ 155,714 $ 962,687 $ — $ 1,928,117 740-799 205,938 558,551 221,807 54,091 113,276 591,184 — 1,744,847 670-739 77,109 170,166 102,503 33,129 68,460 303,718 — 755,085 580-669 5,117 16,295 16,945 5,500 11,770 96,122 — 151,749 579 and below — — 31,835 1,363 1,966 53,983 — 89,147 Residential 366,168 1,198,284 600,072 145,541 351,186 2,007,694 — 4,668,945 Home equity 800+ 8,442 32,410 14,380 21,538 14,293 73,450 521,206 685,719 740-799 9,444 31,016 12,578 16,077 9,282 48,763 418,897 546,057 670-739 3,885 12,664 8,083 11,652 8,804 47,326 255,186 347,600 580-669 — 1,299 1,622 2,123 2,360 18,061 78,951 104,416 579 and below 22 326 737 967 802 7,671 30,282 40,807 Home equity 21,793 77,715 37,400 52,357 35,541 195,271 1,304,522 1,724,599 Other consumer 800+ 51 703 1,458 649 250 213 7,717 11,041 740-799 327 2,645 5,498 2,328 775 505 7,955 20,033 670-739 1,948 13,017 26,345 9,072 1,761 444 3,681 56,268 580-669 56 9,495 16,063 6,258 963 232 1,419 34,486 579 and below 53 2,269 4,430 1,804 428 232 1,252 10,468 Other consumer 2,435 28,129 53,794 20,111 4,177 1,626 22,024 132,296 Consumer portfolio 390,396 1,304,128 691,266 218,009 390,904 2,204,591 1,326,546 6,525,840 Commercial portfolio 1,072,280 3,441,852 2,696,007 2,325,050 1,125,410 2,375,434 1,739,510 14,775,543 Loans and leases $ 1,462,676 $ 4,745,980 $ 3,387,273 $ 2,543,059 $ 1,516,314 $ 4,580,025 $ 3,066,056 $ 21,301,383 At December 31, 2020 (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 360,336 $ 283,755 $ 61,048 $ 178,849 $ 268,044 $ 805,537 $ — $ 1,957,569 740-799 654,973 288,173 58,249 133,416 176,286 492,720 — 1,803,817 670-739 199,329 118,620 39,125 75,375 76,666 248,268 — 757,383 580-669 17,151 19,389 8,884 11,843 12,225 96,333 — 165,825 579 and below — 36,498 673 3,278 3,179 53,794 — 97,422 Residential 1,231,789 746,435 167,979 402,761 536,400 1,696,652 — 4,782,016 Home equity 800+ 30,604 16,567 25,205 14,439 17,192 59,956 542,600 706,563 740-799 34,797 13,565 19,715 11,073 12,839 43,802 434,271 570,062 670-739 13,753 8,855 10,761 10,206 7,318 44,025 275,691 370,609 580-669 1,708 2,172 2,660 2,234 2,316 16,680 86,126 113,896 579 and below 129 919 880 1,070 1,073 7,163 30,501 41,735 Home equity 80,991 42,078 59,221 39,022 40,738 171,626 1,369,189 1,802,865 Other consumer 800+ 2,827 5,725 2,610 658 115 190 7,171 19,296 740-799 12,317 21,036 8,925 1,493 457 263 5,119 49,610 670-739 14,761 31,952 11,843 2,284 665 228 8,403 70,136 580-669 2,344 5,419 2,360 793 194 124 1,570 12,804 579 and below 608 982 500 183 37 215 1,428 3,953 Other consumer 32,857 65,114 26,238 5,411 1,468 1,020 23,691 155,799 Consumer portfolio 1,345,637 853,627 253,438 447,194 578,606 1,869,298 1,392,880 6,740,680 Commercial portfolio 4,116,181 2,781,504 2,475,137 1,198,615 909,133 1,584,568 1,835,397 14,900,535 Loans and leases $ 5,461,818 $ 3,635,131 $ 2,728,575 $ 1,645,809 $ 1,487,739 $ 3,453,866 $ 3,228,277 $ 21,641,215 Individually Assessed Loans and Leases The following table summarizes individually assessed loans and leases: At March 31, 2021 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 149,125 $ 114,352 $ 55,091 $ 59,261 $ 11,345 Asset-based 2,499 2,402 2,402 — — Commercial real estate 30,005 26,311 10,466 15,845 2,548 Equipment financing 6,566 6,080 2,758 3,322 916 Residential 98,331 92,517 56,710 35,807 2,940 Home equity 53,155 46,953 33,299 13,654 1,764 Other consumer 604 596 38 558 209 Total $ 340,285 $ 289,211 $ 160,764 $ 128,447 $ 19,722 At December 31, 2020 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 172,069 $ 119,884 $ 55,742 $ 64,142 $ 9,665 Asset-based 2,989 2,594 — 2,594 50 Commercial real estate 37,177 33,879 25,931 7,948 1,610 Equipment financing 7,770 7,298 2,983 4,315 362 Residential 108,077 98,164 58,915 39,249 3,357 Home equity 109,156 46,950 34,335 12,615 988 Other consumer 2,381 653 2 651 105 Total $ 439,619 $ 309,422 $ 177,908 $ 131,514 $ 16,137 The following table summarizes average amortized cost and interest income recognized for individually assessed loans and leases: Three months ended March 31, 2021 2020 (In thousands) Average Accrued Cash Basis Interest Income Average Accrued Cash Basis Interest Income Commercial non-mortgage $ 117,118 $ 859 $ — $ 122,835 $ 1,053 $ — Asset-based 2,498 — — 138 — — Commercial real estate 30,095 182 — 23,903 146 — Equipment financing 6,689 — — 7,192 — — Residential 95,339 639 273 97,778 830 630 Home equity 46,951 222 214 41,902 391 830 Other consumer 625 — — 512 17 — Total $ 299,315 $ 1,902 $ 487 $ 294,260 $ 2,437 $ 1,460 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 loans are collateralized by equipment, inventory, receivables, or other non-real estate assets. Commercial real estate, residential, and home equity loans are collateralized by real estate. Collateral value on collateral dependent loans and leases was $147.7 million at March 31, 2021 and $150.3 million at December 31, 2020. The following table summarizes whether, or not, individually assessed loans and leases are collateral dependent: At March 31, 2021 At December 31, 2020 (In thousands) Collateral Dependent Not Considered Collateral Dependent Total Collateral Dependent Not Considered Collateral Dependent Total Commercial non-mortgage $ 20,717 $ 93,635 $ 114,352 $ 11,074 $ 108,810 $ 119,884 Asset-based 2,402 — 2,402 2,504 90 2,594 Commercial real estate 21,671 4,640 26,311 28,482 5,397 33,879 Equipment financing — 6,080 6,080 — 7,298 7,298 Residential 36,096 56,421 92,517 33,980 64,184 98,164 Home equity 26,759 20,194 46,953 26,796 20,154 46,950 Other consumer — 596 596 — 653 653 Total amortized cost of CDA $ 107,645 $ 181,566 $ 289,211 $ 102,836 $ 206,586 $ 309,422 Troubled Debt Restructurings The following table summarizes information for TDRs: (In thousands) At March 31, At December 31, 2020 Accrual status $ 138,379 $ 140,089 Non-accrual status 83,723 95,338 Total TDRs $ 222,102 $ 235,427 Specific reserves for TDRs included in the balance of ACL on loans and leases $ 14,293 $ 12,728 Additional funds committed to borrowers in TDR status 14,606 12,895 The portion of TDRs deemed to be uncollectible, $1.9 million and $1.2 million for the three months ended March 31, 2021 and 2020, respectively, were charged off. The following table provides information on the type of concession for loans modified as TDRs: Three months ended March 31, 2021 2020 Number of Post- Modification Recorded Investment (1) Number of Post- Modification Recorded Investment (1) (Dollars in thousands) Commercial portfolio Extended Maturity 7 $ 690 2 $ 104 Maturity/Rate Combined 1 37 6 552 Other (2) 2 113 10 27,137 Consumer portfolio Extended Maturity 2 127 1 264 Maturity/Rate Combined 5 1,011 4 456 Other (2) 9 666 14 1,726 Total TDRs 26 $ 2,644 37 $ 30,239 (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 modified as TDRs within the previous 12 months and for which there was a payment default for the three months ended March 31, 2021 and 2020. TDRs in commercial non-mortgage, commercial real estate, and equipment financing segregated by risk rating exposure is as follows: (In thousands) At March 31, 2021 At December 31, 2020 Pass $ 12,724 $ 12,462 Special Mention — — Substandard 98,175 105,070 Doubtful — 163 Total $ 110,899 $ 117,695 |