v3.26.1
Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
Loans
The following table provides a summary of the Company’s loan portfolio as of the dates indicated:
March 31, 2026December 31, 2025
(In thousands)
Commercial and industrial$4,373,727 $4,324,615 
Commercial real estate9,475,352 9,529,071 
Commercial construction503,192 567,597 
Business banking1,545,197 1,603,489 
Residential real estate5,466,975 5,516,114 
Consumer home equity1,765,450 1,758,099 
Other consumer258,101 275,511 
Gross loans before unearned discounts and deferred fees, net23,387,994 23,574,496 
Allowance for loan losses (1)
(327,892)(331,841)
Unearned discounts and deferred fees, net(463,950)(489,431)
Loans after the allowance for loan losses and net unearned discounts and deferred fees$22,596,152 $22,753,224 
(1)The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $81.2 million and $81.9 million as of March 31, 2026 and December 31, 2025, respectively, and is included within other assets on the Consolidated Balance Sheets.
There are no other loan categories that exceed 10% of total loans not already reflected in the preceding table.
The Company’s lending activities are conducted principally in the New England area with the exception of its Shared National Credit Program (“SNC Program”) portfolio and certain purchased loans. The Company participates in the SNC Program in an effort to improve its industry and geographical diversification. The SNC Program portfolio is included in the Company’s commercial and industrial, commercial real estate, and commercial construction portfolios. The SNC Program portfolio is defined as loan syndications with exposure over $100 million and with three or more lenders participating.
Most loans originated by the Company are either collateralized by real estate or other assets or guaranteed by federal and local governmental authorities. The ability and willingness of the single-family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the borrowers’ geographic areas and real estate values. The ability and willingness of commercial real estate, commercial and industrial, and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate economy in the borrowers’ geographic areas and the general economy.
Loans Pledged as Collateral
As of both March 31, 2026 and December 31, 2025, the carrying value of loans pledged to secure advances from the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”) was $5.0 billion. The balance of funds borrowed from the FHLBB were $689.2 million and $199.6 million at March 31, 2026 and December 31, 2025, respectively.
The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $5.2 billion and $5.0 billion at March 31, 2026 and December 31, 2025, respectively. There were no funds borrowed from the FRB outstanding at either March 31, 2026 or December 31, 2025.
Serviced Loans
At March 31, 2026 and December 31, 2025, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $3.2 billion and $3.3 billion, respectively.
Allowance for Loan Losses
The allowance for loan losses is established to provide for management’s estimate of expected lifetime credit losses on loans measured at amortized cost at the balance sheet date through a provision for loan losses charged to net income. Charge-offs, net of recoveries, are charged directly to the allowance for loan losses. Commercial and residential loans are charged-off in the period in which they are deemed uncollectible. Delinquent loans in these product types are subject to ongoing review and analysis to determine if a charge-off in the current period is appropriate. For consumer loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type.
The following tables summarize the changes in the allowance for loan losses by loan category for the periods indicated:
For the Three Months Ended March 31, 2026
Commercial
and
Industrial		Commercial
Real Estate		Commercial
Construction		Business
Banking		Residential
Real Estate		Consumer
Home
Equity		Other
Consumer		Total
(In thousands)
Allowance for loan losses:
Beginning balance$65,768 $164,376 $21,058 $22,921 $44,177 $9,171 $4,370 $331,841 
Charge-offs(6,500)(3,588)— (2,214)— (4)(612)(12,918)
Recoveries794 — — 2,130 32 63 194 3,213 
(Release) provision(554)18,038 (9,935)(678)(1,568)397 56 5,756 
Ending balance$59,508 $178,826 $11,123 $22,159 $42,641 $9,627 $4,008 $327,892 
For the Three Months Ended March 31, 2025
Commercial
and
Industrial		Commercial
Real Estate		Commercial
Construction		Business
Banking		Residential
Real Estate		Consumer
Home Equity		Other
Consumer		Total
(In thousands)
Allowance for loan losses:
Beginning balance$41,090 $116,175 $8,462 $19,899 $32,291 $7,472 $3,563 $228,952 
Charge-offs— (11,587)— (342)— — (558)(12,487)
Recoveries11 694 — 322 39 — 179 1,245 
Provision (release)5,389 1,352 52 436 (1,234)(581)1,186 6,600 
Ending balance$46,490 $106,634 $8,514 $20,315 $31,096 $6,891 $4,370 $224,310 
Reserve for Unfunded Commitments
Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. As of March 31, 2026 and December 31, 2025, the Company’s reserve for unfunded lending commitments was $16.2 million and $16.4 million, respectively, which is recorded within other liabilities in the Company's Consolidated Balance Sheets.
Portfolio Segmentation
Management uses a methodology to systematically estimate the amount of expected losses in each segment of loans in the Company’s portfolio. Commercial and industrial business banking, investment commercial real estate, and commercial and industrial loans are evaluated based upon loan-level risk characteristics, historical losses and other factors which form the basis for estimating expected losses. Other portfolios, including owner occupied commercial real estate (which includes business banking owner occupied commercial real estate), commercial construction, residential mortgages, home equity and consumer loans, are analyzed as groups taking into account delinquency ratios, and the Company’s and peer banks’ historical loss experience. For the purposes of estimating the allowance for loan losses, management segregates the loan portfolio into loan categories that share similar risk characteristics such as the purpose of the loan, repayment source, and collateral. These characteristics are considered when determining the appropriate level of the allowance for each category. Some examples of these risk characteristics unique to each loan category include:
Commercial Lending
Commercial and industrial: The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Collateral frequently consists of a first lien position on business assets including, but not limited to, accounts receivable, inventory, aircraft and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from any entity or individual that holds a material ownership in the borrowing entity when the loan-to-value of a commercial and industrial loan is in excess of a specified threshold.
Commercial real estate: Collateral values are established by independent third-party appraisals and evaluations. Primary repayment sources include operating income generated by the real estate, permanent debt refinancing, sale of the real estate and, secondarily, liquidation of the collateral. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity when the loan-to-value of a commercial real estate loan is in excess of a specified threshold.
Commercial construction: These loans are generally considered to present a higher degree of risk than other real estate loans and may be affected by a variety of factors, such as adverse changes in interest rates and the borrower’s ability to control costs and adhere to time schedules. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. Construction loan repayment is substantially dependent on the ability of the borrower to complete the project and obtain permanent financing.
Business banking: These loans are typically secured by all business assets or commercial real estate. Business banking originations include traditionally underwritten loans as well as partially automated scored loans. Business banking scored loans are determined by utilizing the Company’s proprietary decision matrix that has a number of quantitative factors including, but not limited to, a guarantor’s credit score, industry risk, and time in business. The Company also engages in Small Business Association (“SBA”) lending. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure.
Residential Lending
These loans are made to borrowers who demonstrate the ability to repay principal and interest on a monthly basis. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources (including cash reserves) and the value of the collateral. The Company maintains policy standards for minimum credit score and cash reserves and maximum loan-to-value consistent with a “prime” portfolio. Collateral consists of mortgage liens on 1-4 family residential dwellings. The policy standards applied to loans originated by the Company are the same as those applied to purchased loans. The Company does not originate or purchase sub-prime or other high-risk loans. Residential loans are originated either for sale to investors or retained in the Company’s loan portfolio. Decisions about whether to sell or retain residential loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and the Company’s liquidity and capital needs.
Consumer Lending
Consumer home equity: Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. At the end of the ten-year draw period, home equity lines of credit are amortized over the remaining maturity period and monthly payments of principal and interest are required. Home equity loans are term loans that require the monthly payment of principal and interest such that the loan will be fully amortized at maturity. Underwriting considerations are materially consistent with those utilized in residential real estate. Collateral consists of a senior or subordinate lien on owner-occupied residential property.
Other consumer: The Company’s policy and underwriting in this category, which is comprised primarily of home improvement, automobile and aircraft loans, include the following factors, among others: income sources and reliability, credit histories, term of repayment, and collateral value, as applicable. These are typically granted on an unsecured basis, with the exception of aircraft and automobile loans.
Credit Quality
Commercial Lending Credit Quality
The credit quality of the Company’s commercial loan portfolio is actively monitored and supported by a comprehensive credit approval process and all large dollar transactions are sent for approval to a committee of seasoned business line and credit professionals. The Company maintains an independent credit risk review function that reports directly to the Risk Management Committee of the Board of Directors. Credits that demonstrate significant deterioration in credit quality are transferred to a specialized group of experienced officers for individual attention.
The Company monitors credit quality indicators and utilizes portfolio scorecards to assess the risk of its commercial portfolio. Specifically, the Company utilizes a 15-point credit risk-rating system to manage risk and identify potential problem loans. Under this point system, risk-rating assignments are based upon a number of quantitative and qualitative factors that are under continual review. Factors include cash flow, collateral coverage, liquidity, leverage, position within the industry, internal controls and management, financial reporting, and other considerations. Commercial loan risk ratings are (re)evaluated for each loan at least once-per-year. The risk-rating categories under the credit risk-rating system are defined as follows:
0 Risk Rating - Unrated
Certain segments of the portfolios are not rated. These segments include aircraft loans, business banking scored loan products, and other commercial loans managed by exception. Loans within this unrated loan segment are monitored by delinquency status; and for lines of credit greater than $100,000 in exposure, an annual review is conducted which includes the review of the business score and loan and deposit account performance. The Company supplements performance data with current business credit scores for the business banking portfolio on a quarterly basis. Unrated commercial and business banking loans are generally restricted to commercial exposure of less than $1.5 million. Loans included in this category generally are not required to provide regular financial reporting or regular covenant monitoring.
For purposes of estimating the allowance for loan losses, unrated loans are considered in the same manner as “Pass” rated loans. Unrated loans are included with “Pass” rated loans for disclosure purposes.
1-10 Risk Rating – Pass
Loans with a risk rating of 1-10 are classified as “Pass” and are comprised of loans that range from “substantially risk free” which indicates borrowers of unquestioned credit standing, well-established national companies with a very strong financial condition, and loans fully secured by policy conforming cash levels, through “low pass” which indicates acceptable rated loans that may be experiencing weak cash flow, impending lease rollover or minor liquidity concerns.
11 Risk Rating – Special Mention (Potential Weakness)
Loans to borrowers in this category exhibit potential weaknesses or downward trends deserving management’s close attention. While potentially weak, no loss of principal or interest is envisioned. Included in this category are borrowers who are performing as agreed, are weak when compared to industry standards, may be experiencing an interim loss and may be in declining industries. An element of asset quality, financial flexibility or management is below average. The Company does not consider borrowers within this category as new business prospects. Borrowers rated special mention may find it difficult to obtain alternative financing from traditional bank sources.
12 Risk Rating – Substandard (Well-Defined Weakness)
Loans with a risk-rating of 12 exhibit well-defined weaknesses that, if not corrected, may jeopardize the orderly liquidation of the debt. A loan is classified as substandard if it is inadequately protected by the repayment capacity of the obligor or by the collateral pledged. Specifically, repayment under market rates and terms, or by the requirements under the existing loan documents, is in jeopardy, but no loss of principal or interest is envisioned. There is a possibility that a partial loss of principal and/or interest will occur in the future if the deficiencies are not corrected. Loss potential, while existing in the aggregate portfolio of substandard assets, does not have to exist in individual assets classified as substandard. Non-accrual is possible, but not mandatory, in this class.
13 Risk Rating – Doubtful (Loss Probable)
Loans classified as doubtful have comparable weaknesses as found in the loans classified as substandard, with the added provision that such weaknesses make collection of the debt in full (based on currently existing facts, conditions and values) highly questionable and improbable. Serious problems exist such that a partial loss of principal is likely. The probability of loss exists, but because of reasonably specific pending factors that may work to strengthen the credit, estimated losses are deferred until a more exact status can be determined. Specific reserves will be the amount identified after specific review. Non-accrual is mandatory in this class.
14 Risk Rating – Loss
Loans to borrowers in this category are deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loans have no recovery or salvage value, but rather, it is not practical or desirable to defer writing off these assets even though partial recovery may occur in the future. Loans in this category have a recorded investment of $0 at the time of the downgrade.
Residential and Consumer Lending Credit Quality
For the Company’s residential and consumer portfolios, the quality of the loan is best indicated by the repayment performance of an individual borrower. Updated appraisals, broker opinions of value and other collateral valuation methods are employed in the residential and consumer portfolios, typically for credits that are deteriorating. Delinquency status is determined using payment performance, while accrual status may be determined using a combination of payment performance, expected borrower viability and collateral value. Delinquent consumer loans are handled by a team of seasoned collection specialists.
The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of March 31, 2026, and gross charge-offs for the nine-month period then ended:
20262025202420232022PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
(In thousands)
Commercial and industrial
Pass$191,100 $744,921 $295,320 $268,393 $415,726 $1,450,258 $781,734 $— $4,147,452 
Special Mention— 602 2,237 6,425 1,331 3,492 26,925 — 41,012 
Substandard— 4,032 18 39,594 21,019 19,196 70,335 — 154,194 
Doubtful— — — 3,128 818 8 — — 3,954 
Loss— — — — — — — — — 
Total commercial and industrial191,100 749,555 297,575 317,540 438,894 1,472,954 878,994 — 4,346,612 
Current period gross charge-offs— — — 6,500 — — — — 6,500 
Commercial real estate
Pass186,085 919,258 610,246 720,709 2,245,884 4,056,208 87,152 804 8,826,346 
Special Mention— — 822 30,574 38,493 158,299 — 988 229,176 
Substandard— 14,128 — 54,775 77,282 79,633 — — 225,818 
Doubtful— — — 3,170 66,062 22,904 — — 92,136 
Loss— — — — — — — — — 
Total commercial real estate186,085 933,386 611,068 809,228 2,427,721 4,317,044 87,152 1,792 9,373,476 
Current period gross charge-offs— — — — 2,088 1,500 — — 3,588 
Commercial construction
Pass6,947 163,468 212,789 85,518 14,072 — 4,144 — 486,938 
Special Mention— — — — — — — — — 
Substandard— — 6,934 — 8,165 — — — 15,099 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial construction6,947 163,468 219,723 85,518 22,237 — 4,144 — 502,037 
Current period gross charge-offs— — — — — — — — — 
Business banking
Pass29,222 177,798 167,396 131,694 162,443 711,161 115,578 2,287 1,497,579 
Special Mention— — 4,635 675 497 9,066 1,164 — 16,037 
Substandard— 933 5,466 5,197 3,038 7,014 17 — 21,665 
Doubtful— — 103 18 — 1,436 — — 1,557 
Loss— — — — — — — — — 
Total business banking29,222 178,731 177,600 137,584 165,978 728,677 116,759 2,287 1,536,838 
Current period gross charge-offs— 148 246 225 94 1,460 — 41 2,214 
Residential real estate
Current and accruing62,320 424,951 229,518 373,382 1,218,883 2,809,981 — — 5,119,035 
30-89 days past due and accruing— 363 1,379 7,389 13,266 24,673 — — 47,070 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual— 183 244 819 4,919 15,774 — — 21,939 
Total residential real estate62,320 425,497 231,141 381,590 1,237,068 2,850,428 — — 5,188,044 
Current period gross charge-offs— — — — — — — — — 
Consumer home equity
Current and accruing— 7,204 11,265 23,845 60,293 99,974 1,532,713 9,949 1,745,243 
30-89 days past due and accruing— — 105 156 168 987 9,018 60 10,494 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual— — — — — 1,739 4,024 73 5,836 
Total consumer home equity— 7,204 11,370 24,001 60,461 102,700 1,545,755 10,082 1,761,573 
Current period gross charge-offs— — — — — 4 — — 4 
Other consumer
Current and accruing9,673 35,816 43,146 46,150 18,582 23,059 38,240 2 214,668 
30-89 days past due and accruing— 82 106 103 82 28 280 — 681 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual— 20 35 7 10 — 43 — 115 
Total other consumer9,673 35,918 43,287 46,260 18,674 23,087 38,563 2 215,464 
Current period gross charge-offs268 45 77 20 40 76 86 — 612 
Total$485,347 $2,493,759 $1,591,764 $1,801,721 $4,371,033 $9,494,890 $2,671,367 $14,163 $22,924,044 
(1)The amounts presented represent the amortized cost as of March 31, 2026 of revolving loans that were converted to term loans during the three months ended March 31, 2026.
Subsequent to December 31, 2025 and issuance of the 2025 10-K, the Company refined loan origination date information for certain acquired loans following system conversion. This refinement resulted in reclassification among origination year vintages, but did not affect total loans, credit quality classifications, the allowance for credit losses, or results of operations. The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of December 31, 2025, and reflects such reclassifications:
20252024202320222021PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
(In thousands)
Commercial and industrial
Pass$835,431 $310,569 $296,116 $422,850 $378,622 $1,090,152 $792,359 $165 $4,126,264 
Special Mention948 2,399 6,716 133 1,314 2,795 12,990 — 27,295 
Substandard4,093 10,974 31,539 22,819 2,806 4,893 53,495 — 130,619 
Doubtful— — 9,628 — — 1,049 847 — 11,524 
Loss— — — — — — — — — 
Total commercial and industrial840,472 323,942 343,999 445,802 382,742 1,098,889 859,691 165 4,295,702 
Commercial real estate
Pass903,311 616,073 750,447 2,297,477 1,285,420 2,892,767 102,016 2,747 8,850,258 
Special Mention— 865 30,585 28,104 90,528 73,987 994 — 225,063 
Substandard14,027 — 54,833 85,591 13,408 65,778 — — 233,637 
Doubtful— — 20,852 55,698 2,381 26,472 — — 105,403 
Loss— — — — — — — — — 
Total commercial real estate917,338 616,938 856,717 2,466,870 1,391,737 3,059,004 103,010 2,747 9,414,361 
Commercial construction
Pass134,110 209,193 103,355 65,595 14,263 712 8,117 — 535,345 
Special Mention— 423 — 4,671 — — 1,033 — 6,127 
Substandard— — — 5,646 — — — — 5,646 
Doubtful— — — 14,888 — 1,479 — — 16,367 
Loss— — — — — — — — — 
Total commercial construction134,110 209,616 103,355 90,800 14,263 2,191 9,150 — 563,485 
Business banking
Pass182,967 175,785 139,676 180,091 210,893 549,839 114,235 5,762 1,559,248 
Special Mention— 5,505 1,444 820 4,453 3,298 165 264 15,949 
Substandard1,525 3,412 3,482 2,845 1,765 3,769 197 493 17,488 
Doubtful— — 412 352 28 3 196 18 1,009 
Loss— — — — — — — — — 
Total business banking184,492 184,702 145,014 184,108 217,139 556,909 114,793 6,537 1,593,694 
Residential real estate
Current and accruing433,413 239,268 394,753 1,242,550 1,323,273 1,544,328 — — 5,177,585 
30-89 days past due and accruing1,045 2,625 2,130 6,121 5,801 17,654 — — 35,376 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual184 — 721 5,686 1,948 10,680 — — 19,219 
Total residential real estate434,642 241,893 397,604 1,254,357 1,331,022 1,572,662 — — 5,232,180 
Consumer home equity
Current and accruing32,940 43,175 53,426 104,417 31,698 117,896 1,332,194 20,341 1,736,087 
30-89 days past due and accruing248 58 233 251 — 1,716 8,269 655 11,430 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual— — 95 — — 1,126 4,555 317 6,093 
Total consumer home equity33,188 43,233 53,754 104,668 31,698 120,738 1,345,018 21,313 1,753,610 
Other consumer
Current and accruing44,301 46,109 49,860 20,675 11,399 15,976 42,750 117 231,187 
30-89 days past due and accruing10 98 75 52 31 36 62 30 394 
Loans 90 days or more past due and still accruing— — — — — — — — — 
Non-accrual48 4 13 30 — 12 84 261 452 
Total other consumer44,359 46,211 49,948 20,757 11,430 16,024 42,896 408 232,033 
Total$2,588,601 $1,666,535 $1,950,391 $4,567,362 $3,380,031 $6,426,417 $2,474,558 $31,170 $23,085,065 
(1)The amounts presented represent the amortized cost as of December 31, 2025 of revolving loans that were converted to term loans during the year ended December 31, 2025.
Asset Quality
The Company manages its loan portfolio with careful monitoring. As a general rule, loans more than 90 days past due with respect to principal and interest are classified as non-accrual loans. Exceptions may be made if management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest. The Company may also use discretion regarding other loans over 90 days delinquent if the loan is well secured and in the process of collection. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered non-performing loans.
Non-accrual loans may be returned to an accrual status when principal and interest payments are no longer delinquent, and the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectability of principal and interest. Loans are considered past due based upon the number of days delinquent according to their contractual terms.
A loan is expected to remain on non-accrual status until it becomes current with respect to principal and interest, the loan is liquidated, or the loan is determined to be uncollectible and is charged-off against the allowance for loan losses.
The following tables show the age analysis of past due loans as of the dates indicated:
As of March 31, 2026
30-59
Days Past
Due		60-89
Days Past
Due		90 or More
Days Past
Due		Total Past
Due		CurrentTotal
Loans
(In thousands)
Commercial and industrial$2,357 $60 $4,116 $6,533 $4,340,079 $4,346,612 
Commercial real estate11,613 821 9,390 21,824 9,351,652 9,373,476 
Commercial construction— — — — 502,037 502,037 
Business banking11,154 3,698 10,946 25,798 1,511,040 1,536,838 
Residential real estate38,995 8,506 20,230 67,731 5,120,313 5,188,044 
Consumer home equity6,520 4,438 5,071 16,029 1,745,544 1,761,573 
Other consumer517 164 90 771 214,693 215,464 
Total$71,156 $17,687 $49,843 $138,686 $22,785,358 $22,924,044 
As of December 31, 2025
30-59
Days Past
Due		60-89
Days Past
Due		90 or More
Days Past
Due		Total Past
Due		CurrentTotal
Loans
(In thousands)
Commercial and industrial$5,368 $164 $1,591 $7,123 $4,288,579 $4,295,702 
Commercial real estate5,992 994 14,174 21,160 9,393,201 9,414,361 
Commercial construction— — 1,033 1,033 562,452 563,485 
Business banking16,673 3,530 8,994 29,197 1,564,497 1,593,694 
Residential real estate26,493 10,361 16,543 53,397 5,178,783 5,232,180 
Consumer home equity9,929 2,141 5,321 17,391 1,736,219 1,753,610 
Other consumer284 114 417 815 231,218 232,033 
Total$64,739 $17,304 $48,073 $130,116 $22,954,949 $23,085,065 
The following table presents information regarding non-accrual loans as of the dates indicated:
As of March 31, 2026As of December 31, 2025
Non-Accrual Loans With ACLNon-Accrual Loans Without ACL (1)Total Nonaccrual LoansNon-Accrual Loans With ACL
Non-Accrual Loans Without ACL (1)
Total Nonaccrual Loans
(In thousands)
Commercial and industrial$184 $3,953 $4,137 $8,810 $3,284 $12,094 
Commercial real estate67,944 24,192 92,136 70,010 35,402 105,412 
Commercial construction— — — 17,400 — 17,400 
Business banking12,567 938 13,505 11,319 350 11,669 
Residential real estate21,939 — 21,939 19,219 — 19,219 
Consumer home equity5,836 — 5,836 6,093 — 6,093 
Other consumer115 — 115 452 — 452 
Total non-accrual loans$108,585 $29,083 $137,668 $133,303 $39,036 $172,339 
(1)The loans on non-accrual status and without an ACL, as of both March 31, 2026 and December 31, 2025, were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value.
The amount of interest income recognized on non-accrual loans during the three months ended March 31, 2026 and 2025 was not significant. As of both March 31, 2026 and December 31, 2025, there were no loans greater than 90 days past due and still accruing.
It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status and, generally, to record any payments received from a borrower related to a loan on non-accrual status as a reduction of the amortized cost basis of the loan. Accrued interest reversed against interest income for the three months ended March 31, 2026 and 2025 was not significant.
For collateral values for residential mortgage and home equity loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, or estimated auction or liquidation values less estimated costs to sell. As of March 31, 2026 and December 31, 2025, the Company had collateral-dependent residential mortgage and home equity loans totaling $5.0 million and $4.4 million, respectively.
For collateral-dependent commercial loans, the amount of the allowance for loan losses is individually assessed based upon the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of March 31, 2026 and December 31, 2025, the Company had collateral-dependent commercial loans totaling $97.4 million and $133.5 million, respectively.
Appraisals for all loan types are obtained at the time of loan origination as part of the loan approval process and are updated at the time of a loan modification and/or refinance and as considered necessary by management for impairment review purposes. In addition, appraisals are updated as required by regulatory pronouncements.
As of both March 31, 2026 and December 31, 2025, the Company had no residential real estate held in other real estate owned (“OREO”). As of March 31, 2026, there were twelve residential real estate loans, which had an aggregate balance of $3.3 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process. As of December 31, 2025, there were twelve residential real estate loans, which had an aggregate balance of $3.0 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process.
As of March 31, 2026 there were four consumer home equity loans, which had an aggregate balance of $0.3 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process. As of December 31, 2025, there were four consumer home equity loans, which had an aggregate balance of $0.3 million, collateralized by residential real estate property for which formal foreclosure proceedings were in-process.
Loan Modifications to Borrowers Experiencing Financial Difficulty
The following table shows the amortized cost balance as of March 31, 2026 of loans modified during the three month periods then ended to borrowers experiencing financial difficulty by the type of concession granted:
During the Three Months Ended March 31,
20262025
Amortized Cost Balance% of Total PortfolioAmortized Cost Balance% of Total Portfolio
(Dollars in thousands)
Interest Rate Reduction:
Business banking$82 0.01 %$39 0.00 %
Consumer home equity— — %80 0.01 %
Total interest rate reduction$82 0.00 %$119 0.00 %
Other-than-Insignificant Delay in Repayment:
Business banking$4,055 0.26 %$125 0.01 %
Consumer home equity150 0.01 %— — %
Total other-than-insignificant delay in repayment$4,205 0.02 %$125 0.00 %
Term Extension:
Commercial real estate$26,830 0.29 %$3,795 0.11 %
Business banking533 0.03 %— — %
Residential real estate137 0.00 %— — %
Total term extension$27,500 0.12 %$3,795 0.02 %
Combination—Interest Rate Reduction & Other-than-Insignificant-Delay in Repayment:
Business banking$2,199 0.14 %$— — %
Total combination—interest rate reduction & other-than-insignificant delay in repayment$2,199 0.01 %$— — %
Combination—Term Extension & Other-than-Insignificant Delay in Repayment:
Business banking$— — %$316 0.02 %
Total combination—term extension & other-than-insignificant delay in repayment$— — %$316 0.00 %
Total by portfolio segment
Commercial real estate$26,830 0.29 %$3,795 0.11 %
Business banking6,869 0.45 %480 0.03 %
Residential real estate1370.00 %—— %
Consumer home equity150 0.01 %80 0.01 %
Total$33,986 0.15 %$4,355 0.02 %
The following tables describe the financial effect of the modifications made during the periods indicated to borrowers experiencing financial difficulty. Loans that were modified in more than one manner are included in each modification type corresponding to the types of modifications performed.
Three Months Ended March 31, 2026
Loan TypeFinancial Effect
Interest Rate Reduction
Business banking
Reduced weighted-average contractual interest rate from 10.5% to 7.5%.
Other-than-Insignificant Delay in Repayment
Business banking
Deferred a weighted-average of 8 payments. For principal and interest deferrals, the loans were re-amortized over an extended payment period resulting in reduced monthly payment amounts for the borrowers. For interest-only deferrals, interest accrued at the time of the modification was added to the end of the loan life.
Consumer home equity
Deferred 9 principal and interest payments which were added to the end of the loan life.
Term Extension
Commercial real estate
Added a weighted-average of 3 months to the lives of the loans, which reduced monthly payment amounts for the borrowers.
Business banking
Added 4 months to the life of the loan, which reduced monthly payment amounts for the borrower.
Residential real estate
Added 6 months to the life of the loan, which reduced monthly payment amounts for the borrower.
Three Months Ended March 31, 2025
Loan TypeFinancial Effect (1)
Interest Rate Reduction
Business banking
Reduced contractual interest rate of one loan from 7.8% to 6.0%.
Consumer home equity
Reduced contractual interest rate of one loan from 7.0% to 5.0%.
Other-than-Insignificant Delay in Repayment
Business banking
Deferred a weighted average of 7 payments. For principal and interest deferrals, the loans were re-amortized over an extended payment period resulting in reduced monthly payment amounts for the borrowers. For interest-only deferrals, interest accrued at the time of the modification was added to the end of the loan life.
Term Extension
Commercial and industrial
Added 1.1 years to the life of one loan, which reduced the monthly payment amount for the borrower.
Business banking
Added a weighted-average of 8 months to the lives of the loans, which reduced monthly payment amounts for the borrowers.
(1)Loans that were modified in more than one manner are included in each modification type corresponding to the type of modifications performed.
As of both March 31, 2026 and March 31, 2025, there were no loans to borrowers experiencing financial difficulty that were modified during the prior twelve months and which had a payment default during the three months ended March 31, 2026 and 2025, respectively.
Management closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the age analysis of past due loans to borrowers experiencing financial difficulty that were modified during the prior twelve months as of March 31, 2026:
As of March 31, 2026
30-59
Days Past
Due		60-89
Days Past
Due		90 or More
Days Past
Due		Total Past
Due		CurrentTotal
(In thousands)
Commercial and industrial$— $— $— $— $980 $980 
Commercial real estate— — — — 67,720 67,720 
Business banking— — 546 546 8,341 8,887 
Residential real estate— 357 — 357 845 1,202 
Consumer home equity— 144 148 292 489 781 
Total$— $501 $694 $1,195 $78,375 $79,570 
The following table shows the age analysis of past due loans to borrowers experiencing financial difficulty that were modified during the prior twelve months as of March 31, 2025:
As of March 31, 2025
30-59
Days Past
Due		60-89
Days Past
Due		90 or More
Days Past
Due		Total Past
Due		CurrentTotal
(In thousands)
Commercial and industrial$— $— $— $— $3,795 $3,795 
Commercial real estate— — — — 9,981 9,981 
Business banking53 — — 53 1,209 1,262 
Residential real estate450 115 — 565 745 1,310 
Consumer home equity1 — — 1 1,663 1,664 
Total$504 $115 $— $619 $17,393 $18,012 
As of March 31, 2026, there were no additional commitments to lend to borrowers experiencing financial difficulty and which were modified during the three months ended March 31, 2026 in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant delay in repayment, or a term extension. As of December 31, 2025, there were no additional commitments to lend to borrowers experiencing financial difficulty and which were modified during year ended December 31, 2025 in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant delay in repayment, or a term extension.
Loan Participations
The Company occasionally purchases commercial loan participations or participates in syndications through the SNC Program. These participations meet the same underwriting, credit and portfolio management standards as the Company’s other loans and are applied against the same criteria to determine the allowance for loan losses as other loans.
The following table summarizes the Company’s loan participations:
As of and for the Three Months Ended March 31, 2026As of and for the Year Ended December 31, 2025
BalanceNon-performing
Loan Rate
(%)		Gross
Charge-offs		BalanceNon-performing
Loan Rate
(%)		Gross
Charge-offs
(Dollars in thousands)
Commercial and industrial$1,454,063 0.22 %$6,500 $1,504,012 0.64 %$5,004 
Commercial real estate1,174,332 1.45 %1,500 1,611,130 1.84 %5,282 
Commercial construction82,214 0.00 %— 190,156 8.61 %— 
Business banking280 0.00 %— 1,072 0.00 %15 
Total loan participations$2,710,889 0.74 %$8,000 $3,306,370 1.68 %$10,301