Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At June 30, At December 31, 2020 Commercial non-mortgage $ 6,843,415 $ 7,085,076 Asset-based 943,961 890,598 Commercial real estate 6,410,672 6,322,637 Equipment financing 630,343 602,224 Commercial portfolio 14,828,391 14,900,535 Residential 4,856,302 4,782,016 Home equity 1,677,136 1,802,865 Other consumer 113,172 155,799 Consumer portfolio 6,646,610 6,740,680 Loans and leases (1) (2) (3) $ 21,475,001 $ 21,641,215 (1) Loan balances include net deferred (fees)/costs and net (premiums)/discounts of $(13.5) million and $(10.5) million at June 30, 2021 and December 31, 2020, respectively. (2) At June 30, 2021, the Company had pledged $7.3 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 $54.6 million and $57.8 million at June 30, 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 $222.3 million and $236.1 million at June 30, 2021 and December 31, 2020, respectively. Total undiscounted cash flows, primarily due within the next five years, amounted to $241.7 million at June 30, 2021. This lessor activity resulted in interest income of $1.9 million and $1.8 million for the three months ended June 30, 2021 and 2020, respectively, and $3.8 million and $3.4 million for the six months ended June 30, 2021 and 2020, respectively. Loans and Leases Aging The following table summarizes the aging of loans and leases: At June 30, 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 $ 1,017 $ 127 $ 25 $ 49,513 $ 50,682 $ 6,792,733 $ 6,843,415 Asset-based — — — 2,375 2,375 941,586 943,961 Commercial real estate 1,324 364 — 12,695 14,383 6,396,289 6,410,672 Equipment financing 1,578 438 — 8,162 10,178 620,165 630,343 Commercial portfolio 3,919 929 25 72,745 77,618 14,750,773 14,828,391 Residential 3,891 805 — 21,472 26,168 4,830,134 4,856,302 Home equity 5,429 2,604 — 25,975 34,008 1,643,128 1,677,136 Other consumer 479 336 — 412 1,227 111,945 113,172 Consumer portfolio 9,799 3,745 — 47,859 61,403 6,585,207 6,646,610 Total $ 13,718 $ 4,674 $ 25 $ 120,604 $ 139,021 $ 21,335,980 $ 21,475,001 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 June 30, 2021 At December 31, 2020 (In thousands) Non-accrual Non-accrual With No Allowance Non-accrual Non-accrual With No Allowance Commercial non-mortgage $ 49,513 $ 8,386 $ 64,073 $ 16,985 Asset-based 2,375 2,375 2,594 — Commercial real estate 12,695 554 21,231 15,529 Equipment financing 8,162 2,538 7,299 2,983 Commercial portfolio 72,745 13,853 95,197 35,497 Residential 21,472 12,680 41,081 29,843 Home equity 25,975 20,620 31,030 24,091 Other consumer 412 6 652 2 Consumer portfolio 47,859 33,306 72,763 53,936 Total $ 120,604 $ 47,159 $ 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 $2.9 million and $3.8 million for the three months ended June 30, 2021 and 2020, respectively, and $6.1 million and $6.8 million for the six months ended June 30, 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 June 30, 2021 2020 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 283,906 $ 44,445 $ 328,351 $ 261,926 $ 73,005 $ 334,931 (Benefit) provision (21,077) (497) (21,574) 44,605 (4,602) 40,003 Charge-offs (594) (2,808) (3,402) (15,294) (2,780) (18,074) Recoveries 836 3,734 4,570 283 1,379 1,662 Balance, end of period $ 263,071 $ 44,874 $ 307,945 $ 291,520 $ 67,002 $ 358,522 At or for the six months ended June 30, 2021 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 (44,730) (2,603) (47,333) 115,848 240 116,088 Charge-offs (6,915) (5,782) (12,697) (20,868) (7,367) (28,235) Recoveries 2,472 6,072 8,544 847 3,158 4,005 Balance, end of period $ 263,071 $ 44,874 $ 307,945 $ 291,520 $ 67,002 $ 358,522 Individually evaluated for impairment 11,537 4,560 16,097 15,271 4,484 19,755 Collectively evaluated for impairment $ 251,534 $ 40,314 $ 291,848 $ 276,249 $ 62,518 $ 338,767 Loan and lease balances: Individually evaluated for impairment $ 128,937 $ 110,521 $ 239,458 $ 165,010 $ 158,146 $ 323,156 Collectively evaluated for impairment 14,699,454 6,536,089 21,235,543 14,589,073 6,890,288 21,479,361 Loans and leases $ 14,828,391 $ 6,646,610 $ 21,475,001 $ 14,754,083 $ 7,048,434 $ 21,802,517 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 at June 30, 2021 and December 31, 2020: At June 30, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 1,380,022 $ 1,635,700 $ 921,484 $ 705,932 $ 363,486 $ 398,483 $ 1,068,452 $ 6,473,559 Special mention — 8,973 48,957 56,527 119 16,621 13,134 144,331 Substandard 106 66,050 20,294 66,010 24,011 23,257 25,797 225,525 Commercial non-mortgage 1,380,128 1,710,723 990,735 828,469 387,616 438,361 1,107,383 6,843,415 Asset-based Pass 3,744 27,329 15,127 19,540 6,431 25,584 779,349 877,104 Special mention — — — 725 — — 63,757 64,482 Substandard — — 2,375 — — — — 2,375 Asset-based 3,744 27,329 17,502 20,265 6,431 25,584 843,106 943,961 Commercial real estate Pass 447,624 925,584 1,451,104 1,130,513 491,810 1,565,554 24,998 6,037,187 Special mention 440 2,221 9,182 79,499 54,481 113,566 — 259,389 Substandard — 808 780 21,567 43,028 47,913 — 114,096 Commercial real estate 448,064 928,613 1,461,066 1,231,579 589,319 1,727,033 24,998 6,410,672 Equipment financing Pass 132,213 219,007 123,041 57,096 19,368 47,107 — 597,832 Special mention — 885 4,362 64 99 1,165 — 6,575 Substandard — 9,630 4,943 6,702 2,180 2,481 — 25,936 Equipment financing 132,213 229,522 132,346 63,862 21,647 50,753 — 630,343 Commercial portfolio $ 1,964,149 $ 2,896,187 $ 2,601,649 $ 2,144,175 $ 1,005,013 $ 2,241,731 $ 1,975,487 $ 14,828,391 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 at June 30, 2021 and December 31, 2020: At June 30, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 216,867 $ 443,796 $ 189,777 $ 41,846 $ 140,310 $ 871,273 $ — $ 1,903,869 740-799 529,874 526,584 210,767 49,417 100,206 550,153 — 1,967,001 670-739 187,435 158,404 85,483 24,678 49,323 265,179 — 770,502 580-669 15,047 11,478 8,213 4,887 11,003 86,098 — 136,726 579 and below 270 411 37,612 1,831 1,216 36,864 — 78,204 Residential 949,493 1,140,673 531,852 122,659 302,058 1,809,567 — 4,856,302 Home equity 800+ 16,759 32,346 12,233 19,613 13,742 66,580 516,121 677,394 740-799 22,141 27,472 10,892 15,092 8,752 43,852 414,822 543,023 670-739 7,528 11,250 7,484 10,464 7,055 42,004 239,265 325,050 580-669 42 1,426 1,923 1,539 2,527 16,935 71,886 96,278 579 and below 110 365 718 984 368 6,214 26,632 35,391 Home equity 46,580 72,859 33,250 47,692 32,444 175,585 1,268,726 1,677,136 Other consumer 800+ 287 1,912 4,131 1,542 436 139 6,735 15,182 740-799 354 8,355 13,497 5,221 766 394 8,145 36,732 670-739 2,094 11,331 21,734 6,653 1,312 362 6,554 50,040 580-669 114 1,604 4,060 1,267 490 259 1,337 9,131 579 and below 93 189 294 241 83 47 1,140 2,087 Other consumer 2,942 23,391 43,716 14,924 3,087 1,201 23,911 113,172 Consumer portfolio 999,015 1,236,923 608,818 185,275 337,589 1,986,353 1,292,637 6,646,610 Commercial portfolio 1,964,149 2,896,187 2,601,649 2,144,175 1,005,013 2,241,731 1,975,487 14,828,391 Loans and leases $ 2,963,164 $ 4,133,110 $ 3,210,467 $ 2,329,450 $ 1,342,602 $ 4,228,084 $ 3,268,124 $ 21,475,001 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 June 30, 2021 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 122,891 $ 97,270 $ 43,936 $ 53,334 $ 8,488 Asset-based 2,499 2,375 2,375 — — Commercial real estate 24,581 21,130 7,329 13,801 1,808 Equipment financing 8,621 8,162 2,538 5,624 1,241 Residential 72,749 68,823 36,092 32,731 2,770 Home equity 46,364 41,286 30,162 11,124 1,668 Other consumer 412 412 6 406 122 Total $ 278,117 $ 239,458 $ 122,438 $ 117,020 $ 16,097 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 June 30, Six months ended June 30, 2021 2020 2021 2020 (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 $ 105,811 $ 682 $ — $ 136,483 $ 875 $ — $ 108,577 $ 1,541 $ — $ 115,903 $ 1,928 $ — Asset-based 2,389 — — 138 — — 2,485 — — 139 — — Commercial real estate 23,721 126 — 26,017 169 — 27,505 308 — 25,411 315 — Equipment financing 7,121 — — 8,373 — — 7,730 — — 6,613 — — Residential 80,670 577 168 121,488 781 230 83,494 1,216 441 113,806 1,611 860 Home equity 44,120 287 302 50,573 309 413 44,118 509 516 43,863 700 1,243 Other consumer 504 — — 1,121 — — 533 — — 609 17 — Total $ 264,336 $ 1,672 $ 470 $ 344,193 $ 2,134 $ 643 $ 274,442 $ 3,574 $ 957 $ 306,344 $ 4,571 $ 2,103 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 $107.0 million at June 30, 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 June 30, 2021 At December 31, 2020 (In thousands) Collateral Dependent Not Considered Collateral Dependent Total Collateral Dependent Not Considered Collateral Dependent Total Commercial non-mortgage $ 18,496 $ 78,774 $ 97,270 $ 11,074 $ 108,810 $ 119,884 Asset-based 2,375 — 2,375 2,504 90 2,594 Commercial real estate 17,598 3,532 21,130 28,482 5,397 33,879 Equipment financing — 8,162 8,162 — 7,298 7,298 Residential 17,649 51,174 68,823 33,980 64,184 98,164 Home equity 22,494 18,792 41,286 26,796 20,154 46,950 Other consumer — 412 412 — 653 653 Total amortized cost $ 78,612 $ 160,846 $ 239,458 $ 102,836 $ 206,586 $ 309,422 Troubled Debt Restructurings The following table summarizes information for TDRs: (In thousands) At June 30, 2021 At December 31, 2020 Accrual status $ 119,707 $ 140,089 Non-accrual status 64,636 95,338 Total TDRs $ 184,343 $ 235,427 Specific reserves for TDRs included in the balance of ACL on loans and leases $ 11,726 $ 12,728 Additional funds committed to borrowers in TDR status 13,512 12,895 The portion of TDRs deemed to be uncollectible, $0.3 million and $1.9 million for the three months ended June 30, 2021 and 2020, respectively, and $2.2 million and $3.1 million for the six months ended June 30, 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 June 30, Six months ended June 30, 2021 2020 2021 2020 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 portfolio Extended Maturity 1 $ 50 5 $ 475 8 $ 740 7 $ 579 Maturity/Rate Combined 5 173 — — 6 210 6 552 Other (2) 1 1 13 12,985 3 114 23 40,122 Consumer portfolio Extended Maturity — — 3 244 2 127 4 508 Maturity/Rate Combined 3 415 2 255 8 1,426 6 711 Other (2) 7 535 80 7,461 16 1,201 94 9,187 Total TDRs 17 $ 1,174 103 $ 21,420 43 $ 3,818 140 $ 51,659 (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 and six months ended June 30, 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 June 30, 2021 At December 31, 2020 Pass $ 8,740 $ 12,462 Special Mention 8,670 — Substandard 72,996 105,070 Doubtful — 163 Total $ 90,406 $ 117,695 |