Loans and Leases | Loans and Leases The following table summarizes loans and leases: (In thousands) At September 30, At December 31, 2020 Commercial non-mortgage $ 6,552,241 $ 7,085,076 Asset-based 986,782 890,598 Commercial real estate 6,522,679 6,322,637 Equipment financing 620,104 602,224 Commercial portfolio 14,681,806 14,900,535 Residential 5,167,527 4,782,016 Home equity 1,633,873 1,802,865 Other consumer 97,129 155,799 Consumer portfolio 6,898,529 6,740,680 Loans and leases (1) (2) (3) $ 21,580,335 $ 21,641,215 (1) Loan balances include net deferred costs/(fees) and net discounts/(premiums) of $5.4 million and $(10.5) million at September 30, 2021 and December 31, 2020, respectively. (2) At September 30, 2021, the Company had pledged $7.5 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 $55.2 million and $57.8 million at September 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 $213.7 million and $236.1 million at September 30, 2021 and December 31, 2020, respectively. Total undiscounted cash flows, primarily due within the next five years, amounted to $231.5 million at September 30, 2021. This lessor activity resulted in interest income of $1.8 million and $1.8 million for the three months ended September 30, 2021 and 2020, respectively, and $5.6 million and $5.2 million for the nine months ended September 30, 2021 and 2020, respectively. Loans and Leases Aging The following table summarizes the aging of loans and leases: At September 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 $ 2,051 $ 2,264 $ 105 $ 36,448 $ 40,868 $ 6,511,373 $ 6,552,241 Asset-based — — — 2,111 2,111 984,671 986,782 Commercial real estate 128 696 — 15,963 16,787 6,505,892 6,522,679 Equipment financing 1,215 9 — 4,222 5,446 614,658 620,104 Commercial portfolio 3,394 2,969 105 58,744 65,212 14,616,594 14,681,806 Residential 2,892 538 — 19,325 22,755 5,144,772 5,167,527 Home equity 4,905 1,437 — 23,322 29,664 1,604,209 1,633,873 Other consumer 564 266 — 263 1,093 96,036 97,129 Consumer portfolio 8,361 2,241 — 42,910 53,512 6,845,017 6,898,529 Total $ 11,755 $ 5,210 $ 105 $ 101,654 $ 118,724 $ 21,461,611 $ 21,580,335 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 September 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 $ 36,448 $ 8,081 $ 64,073 $ 16,985 Asset-based 2,111 2,111 2,594 — Commercial real estate 15,963 4,951 21,231 15,529 Equipment financing 4,222 — 7,299 2,983 Commercial portfolio 58,744 15,143 95,197 35,497 Residential 19,325 11,420 41,081 29,843 Home equity 23,322 18,798 31,030 24,091 Other consumer 263 — 652 2 Consumer portfolio 42,910 30,218 72,763 53,936 Total $ 101,654 $ 45,361 $ 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 $2.4 million and $3.4 million for the three months ended September 30, 2021 and 2020, respectively, and $7.2 million and $9.0 million for the nine months ended September 30, 2021 and 2020, respectively. Refer to Note 1: Summary of Significant Accounting Policies 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 September 30, 2021 2020 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 263,071 $ 44,874 $ 307,945 $ 291,520 $ 67,002 $ 358,522 (Benefit) provision 7,681 217 7,898 31,618 (8,865) 22,753 Charge-offs (1,723) (2,053) (3,776) (13,494) (2,263) (15,757) Recoveries 142 2,713 2,855 2,025 2,268 4,293 Balance, end of period $ 269,171 $ 45,751 $ 314,922 $ 311,669 $ 58,142 $ 369,811 At or for the nine months ended September 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 (37,049) (2,386) (39,435) 147,466 (8,625) 138,841 Charge-offs (8,638) (7,835) (16,473) (34,362) (9,630) (43,992) Recoveries 2,614 8,785 11,399 2,872 5,426 8,298 Balance, end of period $ 269,171 $ 45,751 $ 314,922 $ 311,669 $ 58,142 $ 369,811 Individually evaluated for impairment 7,791 4,308 12,099 18,303 4,376 22,679 Collectively evaluated for impairment $ 261,380 $ 41,443 $ 302,823 $ 293,366 $ 53,766 $ 347,132 Loan and lease balances: Individually evaluated for impairment $ 116,280 $ 104,677 $ 220,957 $ 158,324 $ 149,583 $ 307,907 Collectively evaluated for impairment 14,565,526 6,793,852 21,359,378 14,761,792 6,782,324 21,544,116 Loans and leases $ 14,681,806 $ 6,898,529 $ 21,580,335 $ 14,920,116 $ 6,931,907 $ 21,852,023 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 September 30, 2021 and December 31, 2020: At September 30, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage Pass $ 1,680,524 $ 1,261,582 $ 862,131 $ 673,196 $ 291,995 $ 317,590 $ 1,068,077 $ 6,155,095 Special mention 13,242 45,084 38,253 32,989 9,994 16,578 15,835 171,975 Substandard 3,791 47,048 31,030 85,798 8,646 19,647 29,210 225,170 Doubtful — 1 — — — — — 1 Commercial non-mortgage 1,697,557 1,353,715 931,414 791,983 310,635 353,815 1,113,122 6,552,241 Asset-based Pass 7,612 20,768 13,115 13,998 6,272 26,747 835,405 923,917 Special mention — — — 700 — — 60,054 60,754 Substandard — — 2,111 — — — — 2,111 Asset-based 7,612 20,768 15,226 14,698 6,272 26,747 895,459 986,782 Commercial real estate Pass 847,147 891,343 1,450,959 1,074,542 377,030 1,484,768 34,906 6,160,695 Special mention 350 2,232 — 79,138 54,177 105,173 — 241,070 Substandard — 887 792 21,565 43,194 54,475 — 120,913 Doubtful — — — — — 1 — 1 Commercial real estate 847,497 894,462 1,451,751 1,175,245 474,401 1,644,417 34,906 6,522,679 Equipment financing Pass 174,137 203,641 101,319 49,725 16,835 39,771 — 585,428 Special mention — 120 8,101 3,620 87 1,055 — 12,983 Substandard — 8,989 4,093 3,566 1,512 3,533 — 21,693 Equipment financing 174,137 212,750 113,513 56,911 18,434 44,359 — 620,104 Commercial portfolio $ 2,726,803 $ 2,481,695 $ 2,511,904 $ 2,038,837 $ 809,742 $ 2,069,338 $ 2,043,487 $ 14,681,806 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 September 30, 2021 and December 31, 2020: At September 30, 2021 (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Residential 800+ $ 360,987 $ 450,223 $ 178,412 $ 41,697 $ 128,474 $ 792,003 $ — $ 1,951,796 740-799 857,968 471,194 180,238 38,171 91,741 507,048 — 2,146,360 670-739 300,754 141,427 81,670 25,831 41,147 248,879 — 839,708 580-669 24,569 14,716 9,338 4,394 7,531 76,066 — 136,614 579 and below 10,308 1,451 43,787 868 1,892 34,743 — 93,049 Residential 1,554,586 1,079,011 493,445 110,961 270,785 1,658,739 — 5,167,527 Home equity 800+ 27,832 28,501 10,373 17,474 11,631 60,951 491,283 648,045 740-799 29,181 27,269 9,710 14,530 8,428 39,651 414,321 543,090 670-739 12,260 10,657 7,106 8,338 7,369 35,743 234,066 315,539 580-669 364 1,530 1,750 1,529 1,885 15,669 73,350 96,077 579 and below 255 454 874 1,026 304 6,001 22,208 31,122 Home equity 69,892 68,411 29,813 42,897 29,617 158,015 1,235,228 1,633,873 Other consumer 800+ 377 1,544 3,254 1,141 323 120 10,386 17,145 740-799 2,314 6,694 10,540 4,047 590 379 4,857 29,421 670-739 542 9,433 16,762 5,021 909 234 8,106 41,007 580-669 245 1,232 3,215 972 347 207 1,313 7,531 579 and below 106 176 283 195 63 54 1,148 2,025 Other consumer 3,584 19,079 34,054 11,376 2,232 994 25,810 97,129 Consumer portfolio 1,628,062 1,166,501 557,312 165,234 302,634 1,817,748 1,261,038 6,898,529 Commercial portfolio 2,726,803 2,481,695 2,511,904 2,038,837 809,742 2,069,338 2,043,487 14,681,806 Loans and leases $ 4,354,865 $ 3,648,196 $ 3,069,216 $ 2,204,071 $ 1,112,376 $ 3,887,086 $ 3,304,525 $ 21,580,335 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 September 30, 2021 (In thousands) Unpaid Amortized Cost Amortized Cost No Allowance Amortized Cost With Allowance Related Commercial non-mortgage $ 107,251 $ 84,054 $ 34,246 $ 49,808 $ 5,470 Asset-based 2,253 2,111 2,111 — — Commercial real estate 29,357 25,893 11,203 14,690 1,449 Equipment financing 4,732 4,222 — 4,222 872 Residential 68,514 65,018 35,337 29,681 2,503 Home equity 43,764 39,396 28,078 11,318 1,689 Other consumer 282 263 — 263 116 Total $ 256,153 $ 220,957 $ 110,975 $ 109,982 $ 12,099 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 September 30, Nine months ended September 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 $ 90,662 $ 729 $ — $ 127,676 $ 954 $ — $ 101,969 $ 2,270 $ — $ 114,027 $ 2,882 $ — Asset-based 2,243 — — 1,949 — — 2,353 — — 1,950 — — Commercial real estate 23,512 132 — 24,555 192 — 29,886 440 — 22,440 507 — Equipment financing 6,192 — — 7,488 — — 5,760 — — 6,308 — — Residential 66,920 590 46 103,608 741 289 81,591 1,806 487 95,270 2,352 1,149 Home equity 40,341 218 63 49,309 302 297 43,173 727 579 41,826 1,002 1,540 Other consumer 338 — — 948 13 — 458 — — 340 30 — Total $ 230,208 $ 1,669 $ 109 $ 315,533 $ 2,202 $ 586 $ 265,190 $ 5,243 $ 1,066 $ 282,161 $ 6,773 $ 2,689 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 $104.4 million at September 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 September 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 $ 8,062 $ 75,992 $ 84,054 $ 11,074 $ 108,810 $ 119,884 Asset-based 2,111 — 2,111 2,504 90 2,594 Commercial real estate 21,229 4,664 25,893 28,482 5,397 33,879 Equipment financing — 4,222 4,222 — 7,298 7,298 Residential 16,029 48,989 65,018 33,980 64,184 98,164 Home equity 21,014 18,382 39,396 26,796 20,154 46,950 Other consumer — 263 263 — 653 653 Total amortized cost $ 68,445 $ 152,512 $ 220,957 $ 102,836 $ 206,586 $ 309,422 Troubled Debt Restructurings The following table summarizes information for TDRs: (In thousands) At September 30, 2021 At December 31, 2020 Accrual status $ 116,777 $ 140,089 Non-accrual status 47,257 95,338 Total TDRs $ 164,034 $ 235,427 Specific reserves for TDRs included in the balance of ACL on loans and leases $ 8,980 $ 12,728 Additional funds committed to borrowers in TDR status 6,504 12,895 The portion of TDRs deemed to be uncollectible, $1.1 million and $7.8 million for the three months ended September 30, 2021 and 2020, respectively, and $3.3 million and $10.8 million for the nine months ended September 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 September 30, Nine months ended September 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 $ 48 — $ — 9 $ 788 7 $ 579 Maturity/Rate Combined 2 94 2 333 8 304 8 885 Other (2) — — 4 312 3 114 27 40,434 Consumer portfolio Extended Maturity — — 2 165 2 127 6 673 Maturity/Rate Combined — — 5 440 8 1,426 11 1,151 Other (2) 3 153 17 708 19 1,354 111 9,895 Total TDRs 6 $ 295 30 $ 1,958 49 $ 4,113 170 $ 53,617 (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 nine months ended September 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 September 30, 2021 At December 31, 2020 Pass $ 7,327 $ 12,462 Special Mention 8,670 — Substandard 58,797 105,070 Doubtful — 163 Total $ 74,794 $ 117,695 |