Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39610 | |
Entity Registrant Name | Eastern Bankshares, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 84-4199750 | |
Entity Address, Address Line One | 265 Franklin Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 800 | |
Local Phone Number | 327-8376 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | EBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 176,426,993 | |
Amendment Flag | false | |
Entity Central Index Key | 0001810546 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 72,689 | $ 106,040 |
Short-term investments | 536,119 | 63,465 |
Cash and cash equivalents | 608,808 | 169,505 |
Available for sale (amortized cost $5,257,264 and $7,825,435, respectively) | 4,261,518 | 6,690,778 |
Held to maturity (fair value $387,654 and $423,226, respectively) | 455,900 | 476,647 |
Total securities | 4,717,418 | 7,167,425 |
Loans held for sale | 23,892 | 4,543 |
Loans: | ||
Total loans | 13,919,275 | 13,575,531 |
Allowance for loan losses | (155,146) | (142,211) |
Unamortized premiums, net of unearned discounts and deferred fees | (19,307) | (13,003) |
Net loans | 13,744,822 | 13,420,317 |
Federal Home Loan Bank stock, at cost | 37,125 | 41,363 |
Premises and equipment | 59,033 | 62,493 |
Bank-owned life insurance | 163,700 | 160,790 |
Goodwill and other intangibles, net | 566,709 | 568,009 |
Deferred income taxes, net | 416,081 | 331,963 |
Prepaid expenses | 156,113 | 165,368 |
Other assets | 527,873 | 426,863 |
Assets of discontinued operations | 124,718 | 128,219 |
Total assets | 21,146,292 | 22,646,858 |
Deposits: | ||
Demand | 5,177,015 | 6,240,637 |
Interest checking accounts | 3,671,871 | 4,568,122 |
Savings accounts | 1,393,545 | 1,831,123 |
Money market investment | 4,709,149 | 4,710,095 |
Certificates of deposit | 2,472,589 | 1,624,382 |
Total deposits | 17,424,169 | 18,974,359 |
Borrowed funds: | ||
Short-term Federal Home Loan Bank advances | 656,336 | 691,297 |
Escrow deposits of borrowers | 24,947 | 22,314 |
Interest rate swap collateral funds | 16,900 | 14,430 |
Long-term Federal Home Loan Bank advances | 17,189 | 12,787 |
Total borrowed funds | 715,372 | 740,828 |
Other liabilities | 525,378 | 424,951 |
Liabilities of discontinued operations | 34,820 | 34,930 |
Total liabilities | 18,699,739 | 20,175,068 |
Commitments and contingencies (see Note 13) | ||
Shareholders’ equity | ||
Common shares, $0.01 par value, 1,000,000,000 shares authorized, 176,376,675 and 176,172,073 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 1,766 | 1,762 |
Additional paid in capital | 1,661,136 | 1,649,141 |
Unallocated common shares held by the Employee Stock Ownership Plan | (133,992) | (137,696) |
Retained earnings | 1,747,225 | 1,881,775 |
Accumulated other comprehensive income, net of tax | (829,582) | (923,192) |
Total shareholders’ equity | 2,446,553 | 2,471,790 |
Total liabilities and shareholders’ equity | 21,146,292 | 22,646,858 |
Commercial and industrial | Commercial Portfolio Segment | ||
ASSETS | ||
Loans held for sale | 22,213 | 0 |
Loans: | ||
Total loans | 3,087,509 | 3,150,946 |
Allowance for loan losses | (26,518) | (26,859) |
Commercial real estate | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 5,396,912 | 5,155,323 |
Allowance for loan losses | (70,623) | (54,730) |
Commercial construction | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 382,615 | 336,276 |
Allowance for loan losses | (7,799) | (7,085) |
Business banking | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 1,087,799 | 1,090,492 |
Allowance for loan losses | (15,218) | (16,189) |
Residential real estate | Residential Real Estate | ||
ASSETS | ||
Loans held for sale | 1,679 | 4,543 |
Loans: | ||
Total loans | 2,550,861 | 2,460,849 |
Allowance for loan losses | (26,355) | (28,129) |
Consumer home equity | Consumer Portfolio Segment | ||
Loans: | ||
Total loans | 1,193,859 | 1,187,547 |
Allowance for loan losses | (5,482) | (6,454) |
Other consumer | Consumer Portfolio Segment | ||
Loans: | ||
Total loans | $ 219,720 | $ 194,098 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale debt securities, amortized cost | $ 5,257,264 | $ 7,825,435 |
Held-to-maturity debt securities, fair value | $ 387,654 | $ 423,226 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 176,376,675 | 176,172,073 |
Common stock outstanding (in shares) | 176,376,675 | 176,172,073 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 169,274 | $ 124,992 | $ 483,676 | $ 333,595 |
Taxable interest and dividends on securities | 24,191 | 29,280 | 77,451 | 88,277 |
Non-taxable interest and dividends on securities | 1,434 | 1,917 | 4,302 | 5,585 |
Interest on federal funds sold and other short-term investments | 7,269 | 1,638 | 27,384 | 2,726 |
Total interest and dividend income | 202,168 | 157,827 | 592,813 | 430,183 |
Interest expense: | ||||
Interest on deposits | 59,607 | 4,781 | 158,686 | 11,164 |
Interest on borrowings | 5,356 | 867 | 17,025 | 959 |
Total interest expense | 64,963 | 5,648 | 175,711 | 12,123 |
Net interest income | 137,205 | 152,179 | 417,102 | 418,060 |
Provision for allowance for loan losses | 7,328 | 6,480 | 14,854 | 7,045 |
Net interest income after provision for allowance for loan losses | 129,877 | 145,699 | 402,248 | 411,015 |
Noninterest income (loss): | ||||
Service charges on deposit accounts | 7,403 | 6,708 | 21,117 | 23,558 |
Trust and investment advisory fees | 6,235 | 5,832 | 18,136 | 17,967 |
Debit card processing fees | 3,388 | 3,249 | 10,071 | 9,417 |
Interest rate swap income | 1,695 | 1,562 | 2,112 | 6,087 |
(Losses) income from investments held in rabbi trusts | (1,523) | (2,248) | 4,336 | (13,997) |
Realized loss on sales of commercial loans | (2,651) | 0 | (2,651) | 0 |
(Losses) gains on sales of mortgage loans held for sale, net | (164) | 22 | (288) | 240 |
Losses on sales of securities available for sale, net | 0 | (198) | (333,170) | (2,474) |
Other | 4,774 | 4,597 | 15,845 | 13,527 |
Total noninterest income (loss) | 19,157 | 19,524 | (264,492) | 54,325 |
Noninterest expense: | ||||
Salaries and employee benefits | 60,898 | 61,292 | 185,264 | 171,525 |
Office occupancy and equipment | 8,641 | 8,880 | 26,797 | 28,804 |
Data processing | 13,443 | 12,242 | 38,555 | 39,711 |
Professional services | 7,125 | 4,218 | 13,277 | 11,510 |
Marketing expenses | 1,765 | 2,118 | 4,899 | 6,262 |
Loan expenses | 1,082 | 2,211 | 3,292 | 5,757 |
FDIC insurance | 2,808 | 1,578 | 8,388 | 4,710 |
Amortization of intangible assets | 504 | 299 | 1,299 | 899 |
Other | 5,482 | 2,927 | 15,802 | 6,888 |
Total noninterest expense | 101,748 | 95,765 | 297,573 | 276,066 |
Income (loss) from continuing operations before income tax expense (benefit) | 47,286 | 69,458 | (159,817) | 189,274 |
Income tax (benefit) expense | (16,178) | 16,650 | (65,619) | 43,681 |
Net income (loss) from continuing operations | 63,464 | 52,808 | (94,198) | 145,593 |
Net (loss) income from discontinued operations | (4,351) | 1,969 | 7,872 | 11,872 |
Net income (loss) | $ 59,113 | $ 54,777 | $ (86,326) | $ 157,465 |
Basic earnings (loss) per share: | ||||
Basic earnings (loss) per share from continuing operations (in dollars per share) | $ 0.39 | $ 0.32 | $ (0.58) | $ 0.87 |
Basic (loss) earnings per share from discontinued operations (in dollars per share) | (0.03) | 0.01 | 0.05 | 0.07 |
Basic earnings (loss) per share (in dollars per share) | 0.36 | 0.33 | (0.53) | 0.94 |
Diluted earnings (loss) per share: | ||||
Diluted earnings (loss) per share from continuing operations (in dollars per share) | 0.39 | 0.32 | (0.58) | 0.87 |
Diluted (loss) earnings per share from discontinued operations (in dollars per share) | (0.03) | 0.01 | 0.05 | 0.07 |
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.33 | $ (0.53) | $ 0.94 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 59,113 | $ 54,777 | $ (86,326) | $ 157,465 |
Other comprehensive (loss) income, net of tax: | ||||
Net change in fair value of securities available for sale | (117,260) | (261,469) | 116,285 | (860,269) |
Net change in fair value of cash flow hedges | (10,980) | (56,062) | (21,573) | (61,482) |
Net change in other comprehensive income for defined benefit postretirement plans | (360) | (124) | (1,102) | (371) |
Total other comprehensive (loss) income | (128,600) | (317,655) | 93,610 | (922,122) |
Total comprehensive (loss) income | $ (69,487) | $ (262,878) | $ 7,284 | $ (764,657) |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative effect accounting adjustment | Common Stock | Additional Paid in Capital | Retained Earnings | Retained Earnings Cumulative effect accounting adjustment | Accumulated Other Comprehensive Loss | Unallocated Common Stock Held by ESOP | |||
Beginning balance (in shares) at Dec. 31, 2021 | 186,305,332 | ||||||||||
Beginning Balance at Dec. 31, 2021 | $ 3,406,352 | $ (20,098) | [1] | $ 1,863 | $ 1,835,241 | $ 1,768,653 | $ (20,098) | [1] | $ (56,696) | $ (142,709) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends to common shareholders | $ (50,263) | (50,263) | |||||||||
Repurchased common stock (in shares) | (8,564,338) | (8,564,338) | |||||||||
Repurchased common stock | $ (170,771) | $ (86) | (170,685) | ||||||||
Issuance of restricted stock awards (in shares) | 31,559 | ||||||||||
Issuance of restricted stock awards | 0 | $ 1 | (1) | ||||||||
Share-based compensation | 8,092 | 8,092 | |||||||||
Net income (loss) | 157,465 | 157,465 | |||||||||
Other comprehensive income (loss), net of tax | (922,122) | (922,122) | |||||||||
ESOP shares committed to be released | 7,508 | 3,749 | 3,759 | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 177,772,553 | ||||||||||
Ending balance at Sep. 30, 2022 | 2,416,163 | $ 1,778 | 1,676,396 | 1,855,757 | (978,818) | (138,950) | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 186,305,332 | ||||||||||
Beginning Balance at Dec. 31, 2021 | $ 3,406,352 | (20,098) | [1] | $ 1,863 | 1,835,241 | 1,768,653 | (20,098) | [1] | (56,696) | (142,709) | |
Ending balance (in shares) at Dec. 31, 2022 | 176,172,073 | 176,172,073 | |||||||||
Ending balance at Dec. 31, 2022 | $ 2,471,790 | 822 | [2] | $ 1,762 | 1,649,141 | 1,881,775 | 822 | [2] | (923,192) | (137,696) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Accounting Standards Update [Extensible List] | [2] | Accounting Standards Update 2022-02 | |||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 179,253,801 | ||||||||||
Beginning Balance at Jun. 30, 2022 | $ 2,718,396 | $ 1,793 | 1,700,495 | 1,817,474 | (661,163) | (140,203) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends to common shareholders | $ (16,494) | (16,494) | |||||||||
Repurchased common stock (in shares) | (1,481,248) | (1,481,248) | |||||||||
Repurchased common stock | $ (28,950) | $ (15) | (28,935) | ||||||||
Share-based compensation | 3,561 | 3,561 | |||||||||
Net income (loss) | 54,777 | 54,777 | |||||||||
Other comprehensive income (loss), net of tax | (317,655) | (317,655) | |||||||||
ESOP shares committed to be released | 2,528 | 1,275 | 1,253 | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 177,772,553 | ||||||||||
Ending balance at Sep. 30, 2022 | $ 2,416,163 | $ 1,778 | 1,676,396 | 1,855,757 | (978,818) | (138,950) | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 176,172,073 | 176,172,073 | |||||||||
Beginning Balance at Dec. 31, 2022 | $ 2,471,790 | $ 822 | [2] | $ 1,762 | 1,649,141 | 1,881,775 | $ 822 | [2] | (923,192) | (137,696) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends to common shareholders | $ (49,046) | (49,046) | |||||||||
Repurchased common stock (in shares) | 0 | ||||||||||
Issuance of restricted stock awards (in shares) | 47,820 | ||||||||||
Issuance of restricted stock awards | $ 0 | $ 1 | (1) | ||||||||
Issuance of common stock under share-based compensation arrangements (in shares) | [3] | 156,782 | |||||||||
Issuance of common stock under share-based compensation arrangements | [3] | (1,164) | $ 3 | (1,167) | |||||||
Share-based compensation | 11,387 | 11,387 | |||||||||
Net income (loss) | (86,326) | (86,326) | |||||||||
Other comprehensive income (loss), net of tax | 93,610 | 93,610 | |||||||||
ESOP shares committed to be released | $ 5,480 | 1,776 | 3,704 | ||||||||
Ending balance (in shares) at Sep. 30, 2023 | 176,376,675 | 176,376,675 | |||||||||
Ending balance at Sep. 30, 2023 | $ 2,446,553 | $ 1,766 | 1,661,136 | 1,747,225 | (829,582) | (133,992) | |||||
Beginning balance (in shares) at Jun. 30, 2023 | 176,376,675 | ||||||||||
Beginning Balance at Jun. 30, 2023 | 2,526,772 | $ 1,766 | 1,656,750 | 1,704,470 | (700,982) | (135,232) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends to common shareholders | (16,358) | (16,358) | |||||||||
Share-based compensation | 3,675 | 3,675 | |||||||||
Net income (loss) | 59,113 | 59,113 | |||||||||
Other comprehensive income (loss), net of tax | (128,600) | (128,600) | |||||||||
ESOP shares committed to be released | $ 1,951 | 711 | 1,240 | ||||||||
Ending balance (in shares) at Sep. 30, 2023 | 176,376,675 | 176,376,675 | |||||||||
Ending balance at Sep. 30, 2023 | $ 2,446,553 | $ 1,766 | $ 1,661,136 | $ 1,747,225 | $ (829,582) | $ (133,992) | |||||
[1] Represents gross transition adjustment amount of $28.0 million, net of taxes of $7.9 million, to reflect the cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2016-13. Refer to Note 4, “Loans and Allowance for Credit Losses” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion. Represents gross transition adjustment amount of $1.1 million, net of taxes of $0.3 million, to reflect the cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2022-02. Refer to Note 4, “Loans and Allowance for Credit Losses” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion. Represents shares issued, net of employee tax withheld, during the nine months ended September 30, 2023 upon the vesting of restricted stock units. Refer to Note 11, “Share-Based Compensation” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion. |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 01, 2022 |
Cumulative effect accounting adjustment | ||
Retained earnings | $ 1,100 | $ 28,000 |
Deferred income tax (benefit) expense | $ 300 | $ 7,900 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Operating activities | |||
Net (loss) income from continuing operations | $ (94,198) | $ 145,593 | |
Net income from discontinued operations | 7,872 | 11,872 | |
Net income (loss) | (86,326) | 157,465 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for allowance for loan losses | 14,854 | 7,045 | |
Depreciation and amortization | 9,041 | 8,923 | |
Impairment of right-of-use assets | 395 | 604 | |
Amortization (accretion) of deferred loan fees and premiums, net | 4,394 | (3,499) | |
Deferred income tax (benefit) expense | (96,622) | 12,096 | |
Amortization of investment security premiums and discounts, net | 5,123 | 15,251 | |
Right-of-use asset amortization | 8,191 | 8,634 | |
Share-based compensation | 11,387 | 8,092 | |
Increase in cash surrender value of bank-owned life insurance | (2,910) | (2,747) | |
Loss on sale of securities available for sale, net | 333,170 | 2,474 | |
Net gain on bank premises and equipment | 0 | (1,423) | |
Accretion of gains from terminated interest rate swaps | (46) | (9,653) | |
Employee Stock Ownership Plan expense | 5,480 | 7,508 | |
Realized loss on sales of commercial loans | [1] | 2,505 | 0 |
Other | 138 | 662 | |
Change in: | |||
Loans held for sale | 2,881 | 245 | |
Prepaid pension expense | 3,607 | (8,599) | |
Other assets | (2,197) | 73,400 | |
Other liabilities | (8,532) | (60,025) | |
Net cash provided by operating activities - continuing operations | 196,661 | 204,581 | |
Net cash provided by operating activities - discontinued operations | 12,271 | 21,923 | |
Net cash provided by operating activities | 208,932 | 226,504 | |
Investing activities | |||
Proceeds from sales of securities available for sale | 1,899,724 | 400,543 | |
Proceeds from maturities and principal paydowns of securities available for sale | 329,795 | 880,145 | |
Purchases of securities available for sale | 0 | (740,770) | |
Proceeds from maturities and principal paydowns of securities held to maturity | 21,106 | 11,968 | |
Purchases of securities held to maturity | 0 | (493,678) | |
Proceeds from sale of Federal Home Loan Bank stock | 239,565 | 16,214 | |
Purchases of Federal Home Loan Bank stock | (235,327) | (24,024) | |
Contributions to low income housing tax credit investments | (26,916) | (14,967) | |
Contributions to other equity investments | (720) | (450) | |
Distributions from other equity investments | 253 | 762 | |
Net increase in outstanding loans, excluding loan purchases | (524,790) | (546,296) | |
Proceeds from sales of commercial loans | 189,296 | 0 | |
Purchases of loans | (31,980) | (79,880) | |
Proceeds from life insurance policies | 0 | 20,446 | |
Purchased banking premises and equipment | (4,290) | (6,381) | |
Proceeds from sale of premises held for sale | 0 | 17,313 | |
Net cash provided by (used in) investing activities - continuing operations | 1,855,716 | (559,055) | |
Net cash used in investing activities - discontinued operations | (47) | (13,400) | |
Net cash provided by (used in) investing activities | 1,855,669 | (572,455) | |
Financing activities | |||
Net decrease in demand, savings, interest checking, and money market investment deposit accounts | (2,398,397) | (725,125) | |
Net increase (decrease) in time deposits | 848,207 | (169,805) | |
Net (decrease) increase in borrowed funds | (25,456) | 388,440 | |
Payments for repurchases of common stock | 0 | (170,771) | |
Dividends declared and paid to common shareholders | (48,691) | (49,759) | |
Net cash used in financing activities - continuing operations | (1,624,337) | (727,020) | |
Net cash used in financing activities - discontinued operations | (961) | (384) | |
Net cash used in financing activities | (1,625,298) | (727,404) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 439,303 | (1,073,355) | |
Cash, cash equivalents, and restricted cash at beginning of period | 169,505 | 1,231,792 | |
Cash, cash equivalents, and restricted cash at end of period | 608,808 | 158,437 | |
Cash paid during the period for: | |||
Interest paid on deposits and borrowings | 165,700 | 12,036 | |
Income taxes | 23,637 | 24,540 | |
Non-cash activities | |||
Net increase in capital commitments relating to low income housing tax credit projects | 102,001 | 30,378 | |
Net decrease in operating lease right-of-use assets and operating lease liabilities relating to lease remeasurements/modifications | $ 4,890 | $ 14,082 | |
[1]Excludes the mark-to-market adjustment related to one commercial and industrial loan transferred to held for sale during the nine months ended September 30, 2023 which is included in the change in loans held for sale. |
Corporate Structure and Nature
Corporate Structure and Nature of Operations; Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Corporate Structure and Nature of Operations; Basis of Presentation | Corporate Structure and Nature of Operations; Basis of Presentation Corporate Structure and Nature of Operations Eastern Bankshares, Inc., a Massachusetts corporation (the “Company”), is a bank holding company. Through its wholly-owned subsidiaries, Eastern Bank (the “Bank”) and Eastern Insurance Group LLC (“Eastern Insurance Group”), the Company provides a variety of banking services, trust and investment services, and insurance services through its full-service bank branches and insurance offices, located primarily in eastern Massachusetts, southern and coastal New Hampshire and Rhode Island. On September 19, 2023, the Company and the Bank entered into an asset purchase agreement in which Arthur J. Gallagher & Co. (“Gallagher”) agreed to purchase substantially all of Eastern Insurance Group’s assets for cash consideration and to assume certain liabilities. On October 31, 2023, the Company completed its sale of its insurance agency business to Gallagher. Refer to Note 19, “Discontinued Operations” and Note 20, “Subsequent Events” for further discussion regarding the sale of the insurance agency business. The activities of the Company are subject to the regulatory supervision of the Board of Governors of the Federal Reserve System (“Federal Reserve”). The activities of the Bank are subject to the regulatory supervision of the Massachusetts Commissioner of Banks, the Federal Deposit Insurance Corporation (“FDIC”) and the Consumer Financial Protection Bureau. The Company and the activities of the Bank and its subsidiaries are also subject to various Massachusetts, New Hampshire and Rhode Island business and banking regulations and, with regard to Eastern Insurance Group, applicable insurance regulations. Basis of Presentation The Company’s Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) as set forth by the Financial Accounting Standards Board (“FASB”) and its Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) as well as the rules and interpretive releases of the U.S. Securities and Exchange Commission (“SEC”) under the authority of federal securities laws. The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which it holds a controlling financial interest through being the primary beneficiary or through holding a majority of the voting interest. All intercompany accounts and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current period’s presentation which included certain loan servicing-related costs which have been reclassified from professional services to loan expense. In addition, as a result of the decision to sell substantially all of the assets and transfer substantially all of the liabilities of Eastern Insurance Group, the Company reclassified certain amounts previously reported including: • certain assets and liabilities previously reported in the insurance agency business were reclassified to assets and liabilities of discontinued operations, respectively, on the Consolidated Balance Sheets; • certain components of noninterest income and noninterest expense previously reported in the insurance agency business were reclassified to net income from discontinued operations on the Consolidated Statements of Income; and • certain operating, investing, and financing cash flows previously reported on their applicable lines within the Consolidated Statements of Cash Flows were reclassified to cash flows used in/provided by operating activities of, investment activities of and financing activities of discontinued operations, respectively. The accompanying Consolidated Balance Sheet as of September 30, 2023, the Consolidated Statements of Income and Comprehensive Income and of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2023 and 2022 and Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 are unaudited. The Consolidated Balance Sheet as of December 31, 2022 was derived from the Audited Consolidated Financial Statements as of that date. The interim Consolidated Financial Statements and the accompanying notes should be read in conjunction with the annual Consolidated Financial Statements and the accompanying notes contained within the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”), as filed with the SEC. In the opinion of management, the Company’s Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following describes the Company’s use of estimates as well as relevant accounting pronouncements that were recently issued but not yet adopted as of September 30, 2023 and those that were adopted during the nine months ended September 30, 2023. For a full discussion of significant accounting policies, refer to the Notes to the Consolidated Financial Statements included within the Company’s 2022 Form 10-K. Use of Estimates In preparing the Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheets and income and expenses for the periods reported. Actual results could differ from those estimates based on changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses, valuation and fair value measurements, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. Recent Accounting Pronouncements Relevant standards that were recently issued but not yet adopted as of September 30, 2023: In March 2023, the FASB issued ASU 2023-02, Investments–Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). This update permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if the following conditions are met: 1. It is probable that the income tax credits allocable to the tax equity investor will be available. 2. The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project. 3. Substantially all of the projected benefits are from income tax credits and other income tax benefits. Projected benefits include income tax credits, other income tax benefits, and other non-income-tax-related benefits. The projected benefits are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project. 4. The tax equity investor’s projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive. 5. The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor’s liability is limited to its capital investment. Under existing accounting standards, the proportional amortization method is allowable only for equity investments in low-income-housing tax credit structures. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). Updates made by ASU 2023-02 allow a reporting entity to make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis. The Company had previously made an accounting policy election to account for its investments in low-income-housing tax credit investments using the proportional amortization method. This election was made upon the Company’s adoption of ASU 2014-01, Investments–Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects , which introduced the option to apply proportional amortization to low-income-housing tax credit investments . For public business entities, the amendments in ASU 2023-02 are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in an interim period. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”) . The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1. Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and loses are presented in the statement of cash flows; 2. Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3. Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4. Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5. Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements. Relevant standards that were adopted during the nine months ended September 30, 2023: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This update modifies how an acquiring entity measures contract assets and contract liabilities of an acquiree in a business combination in accordance with Topic 606. The amendments in this update require the acquiring entity in a business combination to account for revenue contracts as if they had originated the contract and assess how the acquiree accounted for the contract under Topic 606. ASU 2021-08 improves comparability of recognition and measurement of revenue contracts with customers both before and after a business combination. For public business entities, the amendments in this update were effective for fiscal years beginning after December 15, 2022. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. The adoption of this standard on January 1, 2023 did not have a material impact on the Company’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments–Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendments in this update eliminate the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-40 and amends the guidance on vintage disclosures, referenced in ASC 326-20-50, to require disclosure of current-period gross write-offs by year of origination. This update supersedes the existing accounting guidance for TDRs in ASC 310-40 in its entirety and requires entities to evaluate all receivable modifications under existing accounting guidance in ASC 310-20 to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan. In addition to the elimination of TDR accounting guidance, entities that adopt this update will no longer consider renewals, modifications and extensions that result from reasonably expected TDRs in their calculation of the allowance for credit losses. Further, if an entity employs a discounted cash flow method to calculate the allowance for credit losses, it will be required to use a post-modification-derived effective interest rate as part of its calculation. This update also requires new disclosures for receivables for which there has been a modification in their contractual cash flows resulting from borrowers experiencing financial difficulties. For public business entities, the amendments in this update were effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities may elect to apply the updated guidance on TDR recognition and measurement by using a modified retrospective transition method. The amendments on TDR disclosures and vintage disclosures should be adopted prospectively. On January 1, 2023, the Company adopted this standard by using the modified retrospective transition method, except with regard to amendments on TDR and vintage disclosures which were adopted prospectively. Accordingly, the Company recorded a cumulative-effect adjustment to retained earnings as of January 1, 2023. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. Significant Accounting Policies The adoption of ASU 2022-02 resulted in changes in the Company’s accounting policies and estimates as it relates to loans receivable and the allowance for loan losses. The following describes the changes to the Company’s significant accounting policies from December 31, 2022, that resulted from the adoption of ASU 2022-02: Allowance for Loan Losses - Loans Held for Investment Modifications of Loans to Borrowers Experiencing Financial Difficulty The amendments in ASU 2022-02 eliminated the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Thus, as a result of adoption of this standard on January 1, 2023, rather than applying the recognition and measurement guidance for TDRs, the Company now applies the loan refinancing and restructuring guidance codified in paragraphs 310-20-35-9 through 35-11 of the Accounting Standards Codification to determine whether a modification results in a new loan or a continuation of an existing loan. Modifications to borrowers experiencing financial difficulty include principal forgiveness, interest rate reductions, term extensions, other-than-insignificant payment delays and combinations thereof. Expected losses or recoveries related to loans where modifications have been granted to borrowers experiencing financial difficulty have been included in the Company’s determination of the allowance for loan losses. Upon adoption of ASU 2022-02, the Company is no longer required to use a discounted cash flow method to measure the allowance for loan losses resulting from a modification to a borrower experiencing financial difficulty. Accordingly, the Company now applies the same credit methodology it uses for similar loans that were not modified. As previously indicated, the Company adopted ASU 2022-02 using the modified retrospective transition method. Accordingly, upon adoption, commercial loan TDRs existing at that time which were measured using a discounted cash flow methodology and all residential real estate and consumer home equity loan TDRs were transitioned to the applicable segment of loans collectively evaluated for impairment based upon their risk characteristics. Commercial loan TDRs determined to be collateral dependent continue to be assessed for impairment on an individual basis. Prior to the Company’s adoption of ASU 2022-02, in cases where a borrower was experiencing financial difficulties and the Company made certain concessionary modifications to contractual terms, the loan was classified as a TDR. Modifications included adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations had been effectively discharged through Chapter 7 bankruptcy and the borrower had not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Management identified loans as TDR loans when it had a reasonable expectation that it would execute a TDR modification with a borrower. In addition, management estimated expected credit losses on a collective basis if a group of TDR loans shared similar risk characteristics. If a TDR loan’s risk characteristics were not similar to those of any of the Company’s other TDR loans, expected credit losses on the TDR loan were measured individually. The impairment analysis discounted the present value of the anticipated cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification or the fair value of collateral if the loan was collateral dependent. The amount of credit loss, if any, was recorded as a specific loss allocation to each individual loan or as a loss allocation to the pool of loans, for those loans for which credit loss was measured on a collective basis, in the allowance for credit losses. Any commercial (commercial and industrial, commercial real estate, commercial construction, and business banking loans) or residential loan that had been classified as a TDR and which subsequently defaulted was reviewed to determine if the loan should be deemed collateral-dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan was determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Refer to Note 4, “Loans and Allowance for Credit Losses” for additional information regarding the Company’s measurement of the allowance for loan losses as of September 30, 2023 and information regarding the Company’s TDR loans as of December 31, 2022 and for the three and nine months ended September 30, 2022. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities [Abstract] | |
Securities | SecuritiesAvailable for Sale Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses (“ACL”) and fair value of available for sale (“AFS”) securities as of the dates indicated were as follows: As of September 30, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 3,380,463 $ — $ (679,833) $ — $ 2,700,630 Government-sponsored commercial mortgage-backed securities 1,343,187 — (254,067) — 1,089,120 U.S. Agency bonds 236,149 — (28,184) — 207,965 U.S. Treasury securities 99,494 — (6,275) — 93,219 State and municipal bonds and obligations 197,971 — (27,387) — 170,584 $ 5,257,264 $ — $ (995,746) $ — $ 4,261,518 As of December 31, 2022 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 4,855,763 $ — $ (743,855) $ — $ 4,111,908 Government-sponsored commercial mortgage-backed securities 1,570,119 — (221,165) — 1,348,954 U.S. Agency bonds 1,100,891 — (148,409) — 952,482 U.S. Treasury securities 99,324 — (6,267) — 93,057 State and municipal bonds and obligations 198,039 9 (14,956) — 183,092 Other debt securities 1,299 — (14) — 1,285 $ 7,825,435 $ 9 $ (1,134,666) $ — $ 6,690,778 The Company did not record a provision for credit losses on any AFS securities for either the three and nine months ended September 30, 2023 or 2022. Accrued interest receivable on AFS securities totaled $9.7 million and $12.9 million as of September 30, 2023 and December 31, 2022, respectively, and is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest receivable on AFS securities during either the three and nine months ended September 30, 2023 or 2022. No securities held by the Company were delinquent on contractual payments as of September 30, 2023 or December 31, 2022, nor were any securities placed on non-accrual status during the nine and twelve month periods then ended. The following table summarizes gross realized gains and losses from sales of AFS securities for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Gross realized gains from sales of AFS securities $ — $ 725 $ — $ 1,770 Gross realized losses from sales of AFS securities — (923) (333,170) (4,244) Net (losses) gains from sales of AFS securities $ — $ (198) $ (333,170) $ (2,474) Information pertaining to AFS securities with gross unrealized losses as of September 30, 2023 and December 31, 2022, for which the Company did not recognize a provision for credit losses under the current expected credit loss methodology (“CECL”), aggregated by investment category and length of time that individual securities had been in a continuous loss position, is as follows: As of September 30, 2023 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars in thousands) Government-sponsored residential mortgage-backed securities 324 $ — $ — $ 679,833 $ 2,700,630 $ 679,833 $ 2,700,630 Government-sponsored commercial mortgage-backed securities 188 — — 254,067 1,089,120 254,067 1,089,120 U.S. Agency bonds 23 — — 28,184 207,965 28,184 207,965 U.S. Treasury securities 6 104 4,854 6,171 88,365 6,275 93,219 State and municipal bonds and obligations 242 5,216 48,268 22,171 122,316 27,387 170,584 783 $ 5,320 $ 53,122 $ 990,426 $ 4,208,396 $ 995,746 $ 4,261,518 As of December 31, 2022 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars in thousands) Government-sponsored residential mortgage-backed securities 322 $ 42,196 $ 435,690 $ 701,659 $ 3,676,218 $ 743,855 $ 4,111,908 Government-sponsored commercial mortgage-backed securities 199 38,944 300,476 182,221 1,048,478 221,165 1,348,954 U.S. Agency bonds 37 645 4,145 147,764 948,337 148,409 952,482 U.S. Treasury securities 5 1,311 48,451 4,956 44,606 6,267 93,057 State and municipal bonds and obligations 237 14,942 179,614 14 225 14,956 179,839 Other debt securities 2 — — 14 1,285 14 1,285 802 $ 98,038 $ 968,376 $ 1,036,628 $ 5,719,149 $ 1,134,666 $ 6,687,525 The Company does not intend to sell these investments and has determined based upon available evidence that it is more-likely-than-not that the Company will not be required to sell each security before the expected recovery of its amortized cost basis. As a result, the Company did not recognize an ACL on these investments as of either September 30, 2023 or December 31, 2022. The causes of the impairments listed in the tables above by category are as follows as of September 30, 2023 and December 31, 2022: • Government-sponsored mortgage-backed securities, U.S. Agency bonds and U.S. Treasury securities – The securities with unrealized losses in these portfolios have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • State and municipal bonds and obligations – The securities with unrealized losses in this portfolio have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. • Other debt securities – As of December 31, 2022, there were two securities included in this portfolio in an unrealized loss position which consisted of two foreign debt securities. Both securities were performing in accordance with the terms of their respective contractual agreements. The decline in market value of these securities was attributable to changes in interest rates and not credit quality. Held to Maturity Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of held to maturity (“HTM”) securities as of the dates indicated were as follows: As of September 30, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 260,271 $ — $ (40,723) $ — $ 219,548 Government-sponsored commercial mortgage-backed securities 195,629 — (27,523) — 168,106 $ 455,900 $ — $ (68,246) $ — $ 387,654 As of December 31, 2022 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 276,493 $ — $ (30,150) $ — $ 246,343 Government-sponsored commercial mortgage-backed securities 200,154 — (23,271) — 176,883 $ 476,647 $ — $ (53,421) $ — $ 423,226 The Company did not record a provision for estimated credit losses on any HTM securities for either the three and nine months ended September 30, 2023 or 2022. The accrued interest receivable on HTM securities totaled $1.0 million as of both September 30, 2023 and December 31, 2022 and is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest receivable on HTM securities during either the three and nine months ended September 30, 2023 or 2022. No securities held by the Company were delinquent on contractual payments as of either September 30, 2023 or December 31, 2022, nor were any securities placed on non-accrual status during the nine and twelve month periods then ended. Available for Sale and Held to Maturity Securities Contractual Maturity The amortized cost and estimated fair value of AFS and HTM securities by contractual maturities as of September 30, 2023 and December 31, 2022 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The scheduled contractual maturities of AFS and HTM securities as of the dates indicated were as follows: As of September 30, 2023 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) AFS securities Government-sponsored residential mortgage-backed securities $ — $ — $ 27,697 $ 26,351 $ 28,637 $ 26,316 $ 3,324,129 $ 2,647,963 $ 3,380,463 $ 2,700,630 Government-sponsored commercial mortgage-backed securities — — 164,329 145,815 475,624 398,011 703,234 545,294 1,343,187 1,089,120 U.S. Agency bonds — — 226,493 199,833 9,656 8,132 — — 236,149 207,965 U.S. Treasury securities — — 99,494 93,219 — — — — 99,494 93,219 State and municipal bonds and obligations 210 210 29,120 26,998 42,656 38,408 125,985 104,968 197,971 170,584 Total available for sale securities 210 210 547,133 492,216 556,573 470,867 4,153,348 3,298,225 5,257,264 4,261,518 HTM securities Government-sponsored residential mortgage-backed securities — — — — — — 260,271 219,548 260,271 219,548 Government-sponsored commercial mortgage-backed securities — — — — 195,629 168,106 — — 195,629 168,106 Total held to maturity securities — — — — 195,629 168,106 260,271 219,548 455,900 387,654 Total $ 210 $ 210 $ 547,133 $ 492,216 $ 752,202 $ 638,973 $ 4,413,619 $ 3,517,773 $ 5,713,164 $ 4,649,172 As of December 31, 2022 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) AFS securities Government-sponsored residential mortgage-backed securities $ — $ — $ 21,221 $ 20,284 $ 727,908 $ 648,132 $ 4,106,634 $ 3,443,492 $ 4,855,763 $ 4,111,908 Government-sponsored commercial mortgage-backed securities — — 191,762 171,992 649,659 556,641 728,698 620,321 1,570,119 1,348,954 U.S. Agency bonds — — 877,371 767,464 223,520 185,018 — — 1,100,891 952,482 U.S. Treasury securities — — 99,324 93,057 — — — — 99,324 93,057 State and municipal bonds and obligations 213 209 22,100 21,283 42,554 40,970 133,172 120,630 198,039 183,092 Other debt securities 1,299 1,285 — — — — — — 1,299 1,285 Total available for sale securities 1,512 1,494 1,211,778 1,074,080 1,643,641 1,430,761 4,968,504 4,184,443 7,825,435 6,690,778 HTM securities Government-sponsored residential mortgage-backed securities — — — — — — 276,493 246,343 276,493 246,343 Government-sponsored commercial mortgage-backed securities — — — — 200,154 176,883 0 — — 200,154 176,883 Total held to maturity securities — — — — 200,154 176,883 276,493 246,343 476,647 423,226 Total $ 1,512 $ 1,494 $ 1,211,778 $ 1,074,080 $ 1,843,795 $ 1,607,644 $ 5,244,997 $ 4,430,786 $ 8,302,082 $ 7,114,004 Securities Pledged as Collateral As of September 30, 2023 and December 31, 2022, securities with a carrying value of $429.0 million and $437.9 million, respectively, were pledged to secure public deposits and for other purposes required by law. As of September 30, 2023 and December 31, 2022, deposits with associated pledged collateral included cash accounts from the Company’s wealth management division (“Eastern Wealth Management”) and municipal deposit accounts. In March 2023 the Federal Reserve created the Bank Term Funding Program (the “Program”) in order to support American businesses and households. The Program helps make available additional funding to eligible depository institutions in order to help assure banks have the ability to meet the needs of their depositors. The Program offers loans up to one year in length to banks in return for any collateral eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. As of September 30, 2023, securities with a carrying value of $2.5 billion were pledged as collateral through the Program. In addition, the Company pledged securities with a carrying value of $370.3 million to the Federal Reserve Discount Window (the “Discount Window”) as of September 30, 2023. No securities were pledged to the Program or the Discount Window as of December 31, 2022. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 (In thousands) Commercial and industrial $ 3,087,509 $ 3,150,946 Commercial real estate 5,396,912 5,155,323 Commercial construction 382,615 336,276 Business banking 1,087,799 1,090,492 Residential real estate 2,550,861 2,460,849 Consumer home equity 1,193,859 1,187,547 Other consumer (2)(3) 219,720 194,098 Gross loans before unamortized premiums, unearned discounts and deferred fees 13,919,275 13,575,531 Allowance for loan losses (1) (155,146) (142,211) Unamortized premiums, net of unearned discounts and deferred fees (19,307) (13,003) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees $ 13,744,822 $ 13,420,317 (1) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $50.8 million and $45.2 million as of September 30, 2023 and December 31, 2022, respectively, and is included within other assets on the Consolidated Balance Sheets. (2) Automobile loans are included in the other consumer portfolio and amounted to $8.1 million and $18.1 million at September 30, 2023 and December 31, 2022, respectively. (3) Home improvement loans are included in the other consumer portfolio and amounted to $161.2 million and $121.1 million at September 30, 2023 and December 31, 2022, respectively. 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. 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 portfolio. 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 The carrying value of loans pledged to secure advances from the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”) were $4.2 billion and $3.9 billion at September 30, 2023 and December 31, 2022, respectively. The balance of funds borrowed from the FHLBB were $673.5 million and $704.1 million at September 30, 2023 and December 31, 2022, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $1.1 billion at both September 30, 2023 and December 31, 2022, respectively. There were no funds borrowed from the FRB outstanding at September 30, 2023 or December 31, 2022. Serviced Loans At September 30, 2023 and December 31, 2022, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $78.8 million and $84.0 million, respectively. Purchased Loans The Company began purchasing residential real estate mortgage loans during the third quarter of 2022. Loans purchased were subject to the same underwriting criteria as those loans originated directly by the Company. During the nine months ended September 30, 2023, the Company purchased $32.0 million of residential real estate mortgage loans. The Company ceased purchases of residential real estate mortgage loans in the first quarter of 2023. Accordingly, no residential real estate mortgage loans were purchased during the three months ended September 30, 2023. The Company purchased $79.9 million of residential real estate mortgage loans during the three and nine months ended September 30, 2022. As of September 30, 2023 and December 31, 2022, the amortized cost balance of loans purchased was $391.7 million and $376.1 million, respectively. Commercial Loan Sales During the three and nine months ended September 30, 2023, the Company sold $191.8 million of commercial and industrial loans previously included in the SNC program portfolio and recognized a loss on sale of $2.5 million. As of September 30, 2023, one commercial and industrial loan, which was previously included in the SNC program portfolio and which had a balance of $22.4 million as of September 30, 2023, was transferred to held for sale from the commercial and industrial held for investment portfolio. Upon transfer to held for sale, a mark-to-market adjustment was recorded representing a loss of $0.2 million. 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 September 30, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 29,535 $ 59,524 $ 7,663 $ 15,228 $ 27,012 $ 6,044 $ 2,949 $ 147,955 Charge-offs (11) — — (303) — — (731) (1,045) Recoveries 120 2 — 609 30 39 108 908 Provision (release) (3,126) 11,097 136 (316) (687) (601) 825 7,328 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 For the Three Months Ended September 30, 2022 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 25,852 $ 47,555 $ 5,474 $ 16,699 $ 21,663 $ 5,662 $ 2,626 $ 125,531 Charge-offs (11) — — (369) — — (603) (983) Recoveries 126 3 — 286 56 6 158 635 Provision (release) 874 3,545 507 (354) 1,288 174 446 6,480 Ending balance $ 26,841 $ 51,103 $ 5,981 $ 16,262 $ 23,007 $ 5,842 $ 2,627 $ 131,663 For the Nine Months Ended September 30, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 142,211 Cumulative effect of change in accounting principle (1) 47 — — (140) (849) (201) — (1,143) Charge-offs (11) — — (900) — (7) (1,883) (2,801) Recoveries 285 8 — 1,294 63 40 335 2,025 Provision (release) (662) 15,885 714 (1,225) (988) (804) 1,934 14,854 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 For the Nine Months Ended September 30, 2022 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 Cumulative effect of change in accounting principle (2) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) $ 27,086 Charge-offs (13) — — (1,922) — — (1,754) — (3,689) Recoveries 1,074 53 — 1,678 80 16 533 — 3,434 Provision (release) (3,771) 5,332 1,911 (637) 2,882 247 1,081 — 7,045 Ending balance $ 26,841 $ 51,103 $ 5,981 $ 16,262 $ 23,007 $ 5,842 $ 2,627 $ — $ 131,663 (1) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2022-02 (i.e., cumulative effect adjustment related to the adoption of ASU 2022-02 as of January 1, 2023). The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. (2) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2016-13 (i.e., cumulative effect adjustment related to the adoption of ASU 2016-13 as of January 1, 2022). The adjustment represents a $27.1 million increase to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. The adjustment also includes the adjustment needed to reflect the day one reclassification of the Company’s PCI loan balances to PCD and the associated gross-up of $0.1 million, pursuant to the Company’s adoption of ASU 2016-13. Reserve for Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. The Company’s adoption of ASU 2022-02 on January 1, 2023 did not impact the reserve for unfunded lending commitments. Upon adoption of ASU 2016-13 on January 1, 2022, the Company recorded a transition adjustment related to the reserve for unfunded lending commitments of $1.0 million, resulting in a total reserve for unfunded lending commitments of $11.1 million as of January 1, 2022. As of September 30, 2023 and December 31, 2022, the Company’s reserve for unfunded lending commitments was $14.9 million and $13.2 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 individuals that hold 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 capital needs. Consumer Lending Consumer home equity : Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. 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 September 30, 2023, and gross charge-offs for the nine month period then ended: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 421,454 $ 489,139 $ 377,921 $ 351,075 $ 160,669 $ 656,163 $ 497,576 $ 3,555 $ 2,957,552 Special Mention 8,109 30,704 14,345 13,897 186 633 18,711 456 87,041 Substandard — 12 1,808 422 36 2,672 22,799 — 27,749 Doubtful — — — — — 8 — — 8 Loss — — — — — — — — — Total commercial and industrial 429,563 519,855 394,074 365,394 160,891 659,476 539,086 4,011 3,072,350 Current period gross charge-offs — — — — — 11 — — 11 Commercial real estate Pass 372,774 1,467,477 858,225 575,634 524,549 1,342,646 59,152 2,585 5,203,042 Special Mention — — — 744 2,395 28,343 — — 31,482 Substandard — — 15,356 3,990 50,704 54,851 8,005 — 132,906 Doubtful — — — — — 25,797 — — 25,797 Loss — — — — — — — — — Total commercial real estate 372,774 1,467,477 873,581 580,368 577,648 1,451,637 67,157 2,585 5,393,227 Current period gross charge-offs — — — — — — — — — Commercial construction Pass 99,843 140,590 124,288 — — — 10,727 — 375,448 Special Mention 5,182 — — 7 — — — — 5,189 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 105,025 140,590 124,288 7 — — 10,727 — 380,637 Current period gross charge-offs — — — — — — — — — Business banking Pass 107,950 164,497 187,765 152,567 117,485 252,479 71,942 3,433 1,058,118 Special Mention — 572 1,446 3,579 3,778 8,233 1,019 27 18,654 Substandard 1,401 611 3,554 2,127 1,069 3,452 647 584 13,445 Doubtful — — — 20 1,079 500 — — 1,599 Loss — — — — — — — — — Total business banking 109,351 165,680 192,765 158,293 123,411 264,664 73,608 4,044 1,091,816 Current period gross charge-offs — 111 62 56 102 250 23 296 900 Residential real estate Current and accruing 203,704 742,941 672,492 362,610 95,373 464,070 — — 2,541,190 30-89 days past due and accruing 441 4,032 4,343 905 940 8,855 — — 19,516 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 105 726 454 1,000 288 5,502 — — 8,075 Total residential real estate 204,250 747,699 677,289 364,515 96,601 478,427 — — 2,568,781 Current period gross charge-offs — — — — — — — — — Consumer home equity Current and accruing 27,721 86,954 9,557 5,189 4,356 84,939 954,862 7,028 1,180,606 30-89 days past due and accruing — 196 — — — 647 7,675 377 8,895 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 67 — — — 1,788 5,472 179 7,506 Total consumer home equity 27,721 87,217 9,557 5,189 4,356 87,374 968,009 7,584 1,197,007 Current period gross charge-offs — — — — — — 7 — 7 Other consumer Current and accruing 72,222 39,286 26,060 13,635 12,949 18,047 13,030 112 195,341 30-89 days past due and accruing 126 143 61 19 68 183 28 — 628 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 13 62 10 — — 47 — 49 181 Total other consumer 72,361 39,491 26,131 13,654 13,017 18,277 13,058 161 196,150 Current period gross charge-offs 746 307 296 90 84 200 160 — 1,883 Total $ 1,321,045 $ 3,168,009 $ 2,297,685 $ 1,487,420 $ 975,924 $ 2,959,855 $ 1,671,645 $ 18,385 $ 13,899,968 (1) The amounts presented represent the amortized cost as of September 30, 2023 of revolving loans that were converted to term loans during the nine months ended September 30, 2023. 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, 2022 : 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 778,144 $ 479,317 $ 415,990 $ 199,865 $ 100,716 $ 639,825 $ 473,148 $ 50 $ 3,087,055 Special Mention 2,298 1,307 7,267 4,841 147 — 1,196 670 17,726 Substandard 294 4,954 2,644 46 2,598 7,854 485 346 19,221 Doubtful — 5,249 — — — 23 3,254 — 8,526 Loss — — — — — — — — — Total commercial and industrial 780,736 490,827 425,901 204,752 103,461 647,702 478,083 1,066 3,132,528 Commercial real estate Pass 1,510,675 825,620 586,567 581,840 461,296 1,006,160 52,590 4,187 5,028,935 Special Mention — — 771 4,204 15,366 12,255 — — 32,596 Substandard — — 2,621 19,796 24,532 34,883 8,000 — 89,832 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 1,510,675 825,620 589,959 605,840 501,194 1,053,298 60,590 4,187 5,151,363 Commercial construction Pass 91,397 178,648 28,956 20,767 — — 12,130 — 331,898 Special Mention — — 2,361 — — — — — 2,361 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 91,397 178,648 31,317 20,767 — — 12,130 — 334,259 Business banking Pass 178,806 202,230 170,088 128,282 59,452 233,484 78,080 4,770 1,055,192 Special Mention — 991 4,635 4,605 3,740 7,584 145 — 21,700 Substandard — 3,482 1,424 2,663 570 7,505 2,230 221 18,095 Doubtful — — — 181 — 70 — — 251 Loss — — — — — — — — — Total business banking 178,806 206,703 176,147 135,731 63,762 248,643 80,455 4,991 1,095,238 Residential real estate Current and accruing 761,442 696,959 382,262 99,494 66,702 434,720 — — 2,441,579 30-89 days past due and accruing 4,652 5,470 1,245 2,762 2,951 11,646 — — 28,726 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — 144 1,491 1,015 7,100 — — 9,750 Total residential real estate 766,094 702,429 383,651 103,747 70,668 453,466 — — 2,480,055 Consumer home equity Current and accruing 97,395 10,774 5,840 5,015 21,092 73,927 953,829 7,320 1,175,192 30-89 days past due and accruing 559 — — — 72 944 7,239 247 9,061 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — — 61 274 1,303 5,120 296 7,054 Total consumer home equity 97,954 10,774 5,840 5,076 21,438 76,174 966,188 7,863 1,191,307 Other consumer Current and accruing 55,414 32,390 17,641 18,298 18,832 16,603 17,476 — 176,654 30-89 days past due and accruing 143 68 43 61 240 178 58 7 798 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 31 93 39 2 92 44 15 10 326 Total other consumer 55,588 32,551 17,723 18,361 19,164 16,825 17,549 17 177,778 Total $ 3,481,250 $ 2,447,552 $ 1,630,538 $ 1,094,274 $ 779,687 $ 2,496,108 $ 1,614,995 $ 18,124 $ 13,562,528 (1) The amounts presented represent the amortized cost as of December 31, 2022 of revolving loans that were converted to term loans during the year ended December 31, 2022. 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 September 30, 2023 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 1,030 $ — $ 465 $ 1,495 $ 3,070,855 $ 3,072,350 Commercial real estate — — — — 5,393,227 5,393,227 Commercial construction — — — — 380,637 380,637 Business banking 4,536 1,846 1,539 7,921 1,083,895 1,091,816 Residential real estate 17,988 2,846 5,621 26,455 2,542,326 2,568,781 Consumer home equity 6,232 2,661 7,430 16,323 1,180,684 1,197,007 Other consumer 470 158 181 809 195,341 196,150 Total $ 30,256 $ 7,511 $ 15,236 $ 53,003 $ 13,846,965 $ 13,899,968 As of December 31, 2022 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 1,300 $ 385 $ 2,074 $ 3,759 $ 3,128,769 $ 3,132,528 Commercial real estate — — — — 5,151,363 5,151,363 Commercial construction — — — — 334,259 334,259 Business banking 6,642 845 3,517 11,004 1,084,234 1,095,238 Residential real estate 25,877 3,852 6,456 36,185 2,443,870 2,480,055 Consumer home equity 8,262 1,108 6,525 15,895 1,175,412 1,191,307 Other consumer 634 170 320 1,124 176,654 177,778 Total (1) $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 (1) The amounts presented in the table above represent the recorded investment balance of loans as of December 31, 2022. The following table presents information regarding non-accrual loans as of the dates indicated: As of September 30, 2023 As of December 31, 2022 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans (In thousands) Commercial and industrial $ 4 $ 466 $ 470 $ 3,270 $ 10,707 $ 13,977 Commercial real estate 25,797 — 25,797 — — — Commercial construction — — — — — — Business banking 5,422 14 5,436 5,844 1,653 7,497 Residential real estate 8,075 — 8,075 9,750 — 9,750 Consumer home equity 7,506 — 7,506 7,054 — 7,054 Other consumer 181 — 181 326 — 326 Total non-accrual loans $ 46,985 $ 480 $ 47,465 $ 26,244 $ 12,360 $ 38,604 (1) The loans on non-accrual status and without an ACL as of both September 30, 2023 and December 31, 2022 , were primarily comprised of collateral dependent loans for which the fair value of the underlying l |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases. These leases have original terms ranging from 1 year to 25 years. Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based upon the present value of the future minimum lease payments over the lease term. Operating lease liabilities are recorded within other liabilities and ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets. The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. As of the dates indicated, the Company had the following related to operating leases: As of September 30, 2023 As of December 31, 2022 (In thousands) Right-of-use assets $ 52,727 $ 48,817 Lease liabilities 55,852 52,105 Finance leases are not material. Finance lease liabilities are recorded within other liabilities and finance ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets. The following table is a summary of the Company’s components of net lease cost for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Operating lease cost $ 2,974 $ 3,182 $ 8,929 $ 9,670 Finance lease cost 87 77 246 231 Variable lease cost 655 577 1,993 1,914 Total lease cost $ 3,716 $ 3,836 $ 11,168 $ 11,815 During the three and nine months ended September 30, 2023, the Company made $3.2 million and $9.7 million, respectively, in cash payments for operating and finance lease payments. During the three and nine months ended September 30, 2022, the Company made $3.3 million and $11.8 million, respectively, in cash payments for operating and finance lease payments. Supplemental balance sheet information related to operating leases are as follows: As of September 30, 2023 As of December 31, 2022 Weighted-average remaining lease term (in years) 8.51 7.26 Weighted-average discount rate 3.73 % 2.62 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of September 30, 2023 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s Consolidated Balance Sheets: As of September 30, 2023 Year (In thousands) Remainder of 2023 $ 3,167 2024 10,183 2025 7,772 2026 6,682 2027 5,543 Thereafter 33,587 Total minimum lease payments 66,934 Less: amount representing interest 11,082 Present value of future minimum lease payments $ 55,852 |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases. These leases have original terms ranging from 1 year to 25 years. Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based upon the present value of the future minimum lease payments over the lease term. Operating lease liabilities are recorded within other liabilities and ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets. The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. As of the dates indicated, the Company had the following related to operating leases: As of September 30, 2023 As of December 31, 2022 (In thousands) Right-of-use assets $ 52,727 $ 48,817 Lease liabilities 55,852 52,105 Finance leases are not material. Finance lease liabilities are recorded within other liabilities and finance ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets. The following table is a summary of the Company’s components of net lease cost for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Operating lease cost $ 2,974 $ 3,182 $ 8,929 $ 9,670 Finance lease cost 87 77 246 231 Variable lease cost 655 577 1,993 1,914 Total lease cost $ 3,716 $ 3,836 $ 11,168 $ 11,815 During the three and nine months ended September 30, 2023, the Company made $3.2 million and $9.7 million, respectively, in cash payments for operating and finance lease payments. During the three and nine months ended September 30, 2022, the Company made $3.3 million and $11.8 million, respectively, in cash payments for operating and finance lease payments. Supplemental balance sheet information related to operating leases are as follows: As of September 30, 2023 As of December 31, 2022 Weighted-average remaining lease term (in years) 8.51 7.26 Weighted-average discount rate 3.73 % 2.62 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of September 30, 2023 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s Consolidated Balance Sheets: As of September 30, 2023 Year (In thousands) Remainder of 2023 $ 3,167 2024 10,183 2025 7,772 2026 6,682 2027 5,543 Thereafter 33,587 Total minimum lease payments 66,934 Less: amount representing interest 11,082 Present value of future minimum lease payments $ 55,852 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization, for the banking business as of the dates indicated below. The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. As of September 30, 2023 As of December 31, 2022 (In thousands) Balances not subject to amortization Goodwill $ 557,635 $ 557,635 Balances subject to amortization Core deposit intangible (1) 9,074 10,374 Total goodwill and other intangible assets $ 566,709 $ 568,009 (1) Management performs an assessment of the remaining useful lives of the Company’s intangible assets on a quarterly basis to determine if such lives remain appropriate. As a result of the assessment performed during the second quarter of 2023, management reduced the remaining useful life of its core deposit intangible to five years which resulted in an increase in quarterly amortization expense. The effect of the increase on annual amortization expense was not material. The Company quantitatively assesses goodwill for impairment at the reporting unit level on an annual basis or sooner if an event occurs or circumstances change which might indicate that the fair value of a reporting unit is below its carrying amount. The Company has identified and assigned goodwill to two reporting units - the banking business and insurance agency business. As a result of the decision to sell the insurance agency business, the assets and liabilities of the insurance agency segment were classified as held for sale as of September 30, 2023 and, accordingly, are presented as assets and liabilities of discontinued operations on the Consolidated Balance Sheet. As of September 30, 2023, an impairment assessment was performed as it relates to goodwill and other intangible assets of the insurance agency business reporting unit whereby the agreed upon sales price was compared to the net assets included in the disposal group. As the sales price exceeded the net assets of the disposal group, management concluded the goodwill and intangible assets of the insurance agency business were not impaired as of September 30, 2023. In accordance with the accounting guidance codified in ASC 350-20, the Company performs a test of goodwill for impairment at least on an annual basis. An assessment is also required to be performed to the extent relevant events and/or circumstances occur which may indicate it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. The failure of several banks in early 2023 led to economic uncertainty and an increase in volatility in the capital markets, particularly in the banking industry. Accordingly, the Company performed a qualitative assessment as of March 31, 2023 which included an assessment of current industry conditions and the impacts of those conditions on the Company’s financial position and results of operations. As a result of that assessment, the Company determined it was not more-likely-than-not that the carrying value of goodwill was greater than the fair value as of March 31, 2023. Therefore, a quantitative goodwill impairment test was not considered necessary at that time. During the second quarter of 2023, as the economic uncertainty impacting the banking industry persisted, the Company exercised the option afforded by ASC 350-20 and bypassed the qualitative assessment, opting to perform the quantitative impairment assessment irrespective of qualitative factors. The assessment included a comparison of the banking business’ book value to the implied fair value using a pricing multiple of the Company’s tangible book value as well as a comparison of the banking business’ book value to its discounted cash flows. The assessment also included a market capitalization analysis. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of June 30, 2023. The Company performed its annual assessment for the banking business as of September 30, 2023. Similar to the assessment performed as of June 30, 2023, the assessment included a comparison of the banking business’ book value to the implied fair value using a pricing multiple of the Company’s tangible book value as well as a comparison of the banking business’ book value to its discounted cash flows. The assessment also included a market capitalization analysis. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of September 30, 2023. Similarly, other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Management performed a review of the Company’s intangible assets as of March 31, 2023, June 30, 2023 and September 30, 2023 in response to the circumstances indicated above. Based upon those reviews, the Company concluded that it was not more-likely-than-not that the carrying amount of the core deposit intangible may not be recoverable. Management had also previously performed an assessment as of December 31, 2022 and determined there was no indication of impairment related to intangible assets. |
Earnings (Loss) Per Share ("EPS
Earnings (Loss) Per Share ("EPS") | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share ("EPS") | Earnings (Loss) Per Share (“EPS”) Basic EPS represents income/(loss) allocable to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the Company. Diluted EPS is computed by dividing net income/(loss) allocable to common shareholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. Shares held by the Employee Stock Ownership Plan (“ESOP”) that have not been allocated to employees in accordance with the terms of the ESOP, referred to as “unallocated ESOP shares,” are not deemed outstanding for earnings per share calculations. For the Three Months Ended September 30, 2023 For the Nine Months Ended September 30, 2023 (Dollars in thousands, except per share data) Net income (loss) applicable to common shares: Net income (loss) from continuing operations $ 63,464 $ (94,198) Net (loss) income from discontinued operations (4,351) 7,872 Total net income (loss) $ 59,113 $ (86,326) Average number of common shares outstanding 175,832,085 175,783,313 Less: Average unallocated ESOP shares (13,461,616) (13,584,155) Average number of common shares outstanding used to calculate basic earnings (loss) per common share 162,370,469 162,199,158 Common stock equivalents 99,418 61,345 Average number of common shares outstanding used to calculate diluted earnings (loss) per common share 162,469,887 162,260,503 Basic earnings (loss) per common share: Earnings (loss) per share from continuing operations $ 0.39 $ (0.58) (Loss) earnings per share from discontinued operations (0.03) 0.05 Total basic earnings (loss) per share $ 0.36 $ (0.53) Diluted earnings (loss) per common share: Earnings (loss) per share from continuing operations $ 0.39 $ (0.58) (Loss) earnings per share from discontinued operations (0.03) 0.05 Total diluted earnings (loss) per share $ 0.36 $ (0.53) For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (Dollars in thousands, except per share data) Net income applicable to common shares: Net income from continuing operations $ 52,808 $ 145,593 Net income from discontinued operations 1,969 11,872 Total net income $ 54,777 $ 157,465 Average number of common shares outstanding 177,677,074 180,764,479 Less: Average unallocated ESOP shares (13,958,112) (14,082,257) Average number of common shares outstanding used to calculate basic earnings per common share 163,718,962 166,682,222 Common stock equivalents 310,687 185,421 Average number of common shares outstanding used to calculate diluted earnings per common share 164,029,649 166,867,643 Basic earnings per common share: Earnings per share from continuing operations $ 0.32 $ 0.87 Earnings per share from discontinued operations 0.01 0.07 Total basic earnings per share $ 0.33 $ 0.94 Diluted earnings per common share: Earnings per share from continuing operations $ 0.32 $ 0.87 Earnings per share from discontinued operations 0.01 0.07 Total diluted earnings per share $ 0.33 $ 0.94 |
Low Income Housing Tax Credits
Low Income Housing Tax Credits and Other Tax Credit Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Low Income Housing Tax Credits and Other Tax Credit Investments | Low Income Housing Tax Credits and Other Tax Credit Investments The Community Reinvestment Act (“CRA”) encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate income. The Company has primarily invested in separate Low Income Housing Tax Credits (“LIHTC”) projects, also referred to as qualified affordable housing projects, which provide the Company with tax credits and operating loss tax benefits over a period of 15 years. The return on these investments is generally generated through tax credits and tax losses. In addition to LIHTC projects, the Company invests in new market tax credit projects that qualify for CRA credits and eligible projects that qualify for renewable energy and historic tax credits. As of September 30, 2023 and December 31, 2022, the Company had $226.8 million and $131.3 million, respectively, in tax credit investments that were included in other assets in the Company's Consolidated Balance Sheets. When permissible, the Company accounts for its investments in LIHTC projects using the proportional amortization method, under which it amortizes the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognizes that amortization as a component of income tax expense. The net investment in the housing projects is included in other assets in the Company's Consolidated Balance Sheets. The Company will continue to use the proportional amortization method on any new qualifying LIHTC investments. The following table presents the Company’s investments in low income housing projects accounted for using the proportional amortization method for the periods indicated: As of September 30, 2023 As of December 31, 2022 (In thousands) Current recorded investment included in other assets $ 224,445 $ 128,765 Commitments to fund qualified affordable housing projects included in recorded investment noted above 159,230 84,145 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Tax credits and benefits recognized $ 1,602 $ 2,333 $ 8,169 $ 6,988 Amortization expense included in income tax (benefit) expense 745 1,886 6,322 5,616 The Company accounts for certain other investments in renewable energy projects using the equity method of accounting. These investments in renewable energy projects are included in other assets in the Company's Consolidated Balance Sheets and totaled $2.3 million and $2.6 million as of September 30, 2023 and December 31, 2022, respectively. There were no outstanding commitments related to these investments as of either September 30, 2023 or December 31, 2022. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases On November 12, 2021, the Company announced receipt of a notice of non-objection from the Board of Governors of the Federal Reserve System to its previously announced share repurchase program which was approved by the Company’s Board of Directors on October 1, 2021. The program authorized the purchase of up to 9,337,900 shares, or 5% of the Company’s then-outstanding shares of common stock over a 12-month period. The program was limited to $225.0 million through November 30, 2022. The Company completed the repurchase of the total number of shares authorized through this program during the third quarter of 2022. On September 7, 2022, the Company announced receipt of a notice of non-objection from the Board of Governors of the Federal Reserve System for a new share repurchase program. The program authorized the purchase of up to 8,900,000 shares, or 5% of the Company’s then-outstanding shares of common stock over a 12-month period. The program was limited to $200.0 million through August 31, 2023. This program expired during the three months ended September 30, 2023. During the nine months ended September 30, 2023, there were no share repurchases. During the three months ended September 30, 2022, the Company repurchased 1,481,248 shares at a weighted average price per share of $19.53. During the nine months ended September 30, 2022, the Company repurchased 8,564,338 shares at a weighted average price per share of $19.92. Dividends Information regarding dividends declared and paid is presented in the following table for the periods indicated: Dividends Declared per Share Dividends Declared Dividends Paid (In millions, except per share data) Three Months Ended March 31, 2023 $ 0.10 $ 16.3 $ 16.2 Three Months Ended June 30, 2023 0.10 16.4 16.3 Three Months Ended September 30, 2023 0.10 16.4 16.2 Three Months Ended March 31, 2022 $ 0.10 $ 17.1 $ 16.9 Three Months Ended June 30, 2022 0.10 16.7 16.5 Three Months Ended September 30, 2022 0.10 16.5 16.3 |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Pension Plans The Company provides pension benefits for its employees through membership in the Savings Banks Employees’ Retirement Association. The plan through which benefits are provided is a noncontributory, qualified defined benefit plan and is referred to as the Defined Benefit Plan. The Company’s annual contribution to the Defined Benefit Plan is based upon standards established by the Pension Protection Act. The contribution is based on an actuarial method intended to provide not only for benefits attributable to service to date, but also for those expected to be earned in the future. The Defined Benefit Plan has a plan year end of October 31. The Company has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain Company officers upon their retirement with defined pension benefits in excess of qualified plan limits imposed by U.S. federal tax law. The DB SERP has a plan year end of December 31. In addition, the Company has an unfunded Benefit Equalization Plan (“BEP”) to provide retirement benefits to certain employees whose retirement benefits under the qualified pension plan are limited per the Internal Revenue Code. The BEP has a plan year end of October 31. The Company also has an unfunded Outside Directors’ Retainer Continuance Plan (“ODRCP”) that provides pension benefits to outside directors who retire from service. The ODRCP has a plan year end of December 31. Effective December 31, 2020, the Company closed the ODRCP to new participants and froze benefit accruals for active participants. Components of Net Periodic Benefit Cost The components of net pension expense for the plans for the periods indicated are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit cost: Service cost (1) $ 6,339 $ 8,094 $ 19,016 $ 24,278 Interest cost 4,297 2,429 12,893 7,289 Expected return on plan assets (7,532) (9,280) (22,596) (27,842) Prior service credit (2,970) (2,971) (8,910) (8,911) Recognized net actuarial loss 2,468 2,799 7,404 8,395 Net periodic benefit cost $ 2,602 $ 1,071 $ 7,807 $ 3,209 (1) Includes service costs related to employees of our insurance agency business. Such service costs were included in net (loss) income from discontinued operations as such costs will not continue to be incurred by the Company following the sale of the insurance agency business. All other costs included in the determination of the benefit obligation for the Defined Benefit Plan and the BEP were included in net income (loss) from continuing operations as the Bank will assume the related liability upon dissolution of Eastern Insurance Group following the sale of the insurance agency business. Service costs included in net (loss) income from discontinued operations and included in the above table were $1.5 million and $4.5 million for the three and nine months ended September 30, 2023, respectively, and were $1.9 million and $5.8 million for the three and nine months ended September 30, 2022, respectively. Except as described above, service costs for the Defined Benefit Plan and the BEP are recognized within salaries and employee benefits in the Consolidated Statements of Income. There were no service costs associated with the DB SERP or ODRCP during the three and nine months ended September 30, 2023 and September 30, 2022. The remaining components of net periodic benefit cost are recognized in other noninterest expense in the Consolidated Statements of Income. In accordance with the Pension Protection Act, the Company was not required to make any contributions to the Defined Benefit Plan for the plan years beginning November 1, 2022 and 2021. Accordingly, during the three and nine months ended September 30, 2023, there were no contributions made to the Defined Benefit Plan. During the three months ended September 30, 2022 there were no contributions made to the Defined Benefit Plan. The Company made discretionary contributions to the Defined Benefit Plan of $7.2 million during the nine months ended September 30, 2022. Rabbi Trust Variable Interest Entities The Company established rabbi trusts to meet its obligations under certain executive non-qualified retirement benefits and deferred compensation plans and to mitigate the expense volatility of the aforementioned retirement plans. The rabbi trusts are considered variable interest entities (“VIE”) as the equity investment at risk is insufficient to permit the trusts to finance their activities without additional subordinated financial support from the Company. The Company is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities of the rabbi trusts that significantly affect the rabbi trusts’ economic performance and it has the obligation to absorb losses of the rabbi trusts that could potentially be significant to the rabbi trusts by virtue of its contingent call options on the rabbi trusts’ assets in the event of the Company’s bankruptcy. As the primary beneficiary of these VIEs, the Company consolidates the rabbi trust investments. In general, the rabbi trust investments and any earnings received thereon are accumulated, reinvested and used exclusively for trust purposes. These rabbi trust investments consist primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and are recorded at fair value in other assets in the Company’s Consolidated Balance Sheets. Changes in fair value are recorded in noninterest income in the Company’s Consolidated Statements of Income. The following table presents the book value, mark-to-market, and fair value of assets held in rabbi trust accounts by asset type: As of September 30, 2023 As of December 31, 2022 Book Value Mark-to-Market Fair Value Book Value Mark-to-Market Fair Value Asset Type (In thousands) Cash and cash equivalents $ 11,420 $ — $ 11,420 $ 5,575 $ — $ 5,575 Equities (1) 55,838 6,822 62,660 60,056 3,626 63,682 Fixed income 6,863 (705) 6,158 7,799 (770) 7,029 Total assets $ 74,121 $ 6,117 $ 80,238 $ 73,430 $ 2,856 $ 76,286 (1) Equities include mutual funds and other exchange-traded funds. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-Based Compensation Plan On November 29, 2021, the shareholders of the Company approved the Eastern Bankshares, Inc. 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the issuance of up to 26,146,141 shares of common stock pursuant to grants of restricted stock, restricted stock units (“RSUs”), non-qualified stock options and incentive stock options, any or all of which can be granted with performance-based vesting conditions. Under the 2021 Plan, 7,470,326 shares may be issued as restricted stock or RSUs, including those issued as performance shares and performance share units (“PSUs”), and 18,675,815 shares may be issued upon the exercise of stock options. These shares may be awarded from the Company’s authorized but unissued shares. However, the 2021 Plan permits the grant of additional awards of restricted stock or RSUs above the aforementioned limit, provided that, for each additional share of restricted stock or RSU awarded in excess of such limit, the pool of shares available to be issued upon the exercise of stock options will be reduced by three shares. Pursuant to the terms of the 2021 Plan, each of the Company’s non-employee directors were automatically granted awards of restricted stock on November 30, 2021. Such restricted stock awards vest pro-rata on an annual basis over a five-year period. The maximum term for stock options is ten years. In May 2023, the Company granted a total of 47,820 shares of restricted stock to the Company’s non-employee directors which vest after approximately one year from the date of grant. In May 2022, the Company granted a total of 31,559 shares of restricted stock to the Company’s non-employee directors which vest after approximately one year from the date of grant. In March 2023, the Company granted to all of the Company’s executive officers and certain other employees a total of 318,577 RSUs, which vest pro-rata on an annual basis over a period of three years from the date of the grant, and a total of 108,984 PSUs for which vesting is contingent upon the Compensation and Human Capital Management Committee of the Board of Director’s certification, after the conclusion of a three-year period from the date of the grant, that the Company has attained a threshold level of certain performance criteria over such period. In March 2022, the Company granted to all of the Company’s executive officers and certain other employees a total of 978,364 RSUs, which vest pro-rata on an annual basis over a period of three As of September 30, 2023 and December 31, 2022, there were 4,830,074 shares and 5,302,256 shares that remained available for issuance as restricted stock or RSU awards (including those that may be issued as performance shares and PSUs), respectively, and 18,675,815 shares that remained available for issuance upon the exercise of stock options at both dates. As of both September 30, 2023 and December 31, 2022, no stock options had been awarded under the 2021 Plan. The following table summarizes the Company’s restricted stock award activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock as of the beginning of the respective period 525,460 $ 20.08 683,056 $ 20.13 Granted 47,820 11.50 31,559 19.17 Vested (28,690) 19.17 — — Forfeited — — — — Non-vested restricted stock as of the end of the respective period 544,590 $ 19.37 714,615 $ 20.09 The following table summarizes the Company’s restricted stock unit activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock units as of the beginning of the respective period 972,325 $ 21.08 — $ — Granted 318,577 15.63 978,364 21.08 Vested (1) (231,407) 21.08 — — Forfeited (3,199) 16.72 (6,039) 21.08 Non-vested restricted stock units as of the end of the respective period 1,056,296 $ 19.45 972,325 $ 21.08 (1) Includes 74,625 shares withheld upon settlement for employee taxes. The following table summarizes the Company’s performance stock unit activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested performance stock units as of the beginning of the respective period 533,676 $ 21.12 — $ — Granted 108,984 10.16 533,676 21.12 Vested — — — — Forfeited — — — — Non-vested performance stock units as of the end of the respective period 642,660 $ 19.26 533,676 $ 21.12 During the nine months ended September 30, 2023, 28,690 RSA awards vested. Such awards had a grant date fair value of $0.5 million. During the nine months ended September 30, 2022, no awards had vested. During the nine months ended September 30, 2023, 231,407 RSU awards vested. Such awards had a grant date fair value of $4.9 million. As of September 30, 2023, no PSU awards had vested. As of December 31, 2022, no RSU or PSU awards had vested. The following table shows share-based compensation expense under the 2021 Plan and the related tax benefit for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Share-based compensation expense $ 3.7 $ 3.6 $ 11.4 $ 8.1 Related tax benefit 1.0 1.0 3.2 2.3 As of September 30, 2023 and December 31, 2022, there was $32.6 million and $34.6 million, respectively, of total unrecognized compensation expense related to unvested restricted stock awards, restricted stock units and performance stock units granted and issued under the 2021 Plan, as applicable. As of September 30, 2023, this cost is expected to be recognized over a weighted average remaining period of approximately 2.5 years. As of December 31, 2022, this cost was expected to be recognized over a weighted average remaining period of approximately 3.3 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) Combined federal and state income tax (benefit) provision $ (16,178) $ 16,650 $ (65,619) $ 43,681 Effective income tax rate (34.2) % 24.0 % 41.1 % 23.1 % The Company recorded a net income tax benefit of $16.2 million and $65.6 million for the three and nine months ended September 30, 2023, respectively, compared to net income tax expense of $16.7 million and $43.7 million for the three and nine months ended September 30, 2022, respectively. The Company established a $17.4 million valuation allowance in the first quarter of 2023 against the capital loss carryforward deferred tax asset which resulted from the sale of securities for the amount of deferred tax asset management believed was not more-likely-than-not to be realized. The income tax benefit for the three months ended September 30, 2023 was primarily due to the reversal of the remainder of the federal portion of the valuation allowance established in the first quarter of 2023. The amount reversed during the three months ended September 30, 2023 was $14.6 million. As a result of the execution of the agreement to sell the Company’s insurance agency business in September 2023 and the determination of the resulting capital gain, management determined it to be more-likely-than-not that the Company will realize federal capital losses related to the securities sale. Consequently, the Company reversed the associated federal valuation allowance previously established as management had determined it was more-likely-than-not that the entirety of the federal deferred tax asset related to the loss on such securities sales would be realized. In addition, the Company recognized an income tax benefit associated with a change in management’s estimate of annual pre-tax loss for purposes of determining the Company’s income tax provision. The income tax benefit for the nine months ended September 30, 2023 was primarily due to pretax losses which largely resulted from losses on sales of available for sale securities in the first quarter of 2023. In addition, during the first quarter of 2023, the Company liquidated Market Street Securities Corporation (“MSSC”), a wholly owned subsidiary, and transferred all of MSSC’s assets to Eastern Bank. In connection with the liquidation and subsequent transfer of securities previously held by MSSC to Eastern Bank, the Company recognized an additional deferred income tax benefit of $23.7 million during the first quarter of 2023. This deferred income tax benefit resulted from a state tax rate change applied to the deferred tax asset related to the securities transferred to Eastern Bank. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk In order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates, the Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit, standby letters of credit, and forward commitments to sell loans, all of which involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in each particular class of financial instruments. Substantially all of the Company’s commitments to extend credit, which normally have fixed expiration dates or termination clauses, are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. For forward loan sale commitments, the contract or notional amount does not represent exposure to credit loss. The Company does not sell loans with recourse. The following table summarizes the above financial instruments as of the dates indicated: As of September 30, 2023 As of December 31, 2022 (In thousands) Commitments to extend credit $ 5,920,300 $ 5,680,438 Standby letters of credit 54,532 65,154 Forward commitments to sell loans 8,495 10,008 Other Contingencies The Company has been named a defendant in various legal proceedings arising in the normal course of business. In the opinion of management, based on the advice of legal counsel, the ultimate resolution of these proceedings will not have a material effect on the Company’s Consolidated Financial Statements. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage its interest rate risk resulting from the differences in the amount, timing, and duration of known or expected cash receipts and known or expected cash payments. Additionally, the Company enters into interest rate derivatives and foreign exchange contracts to accommodate the business requirements of its customers (“customer-related positions”) and risk participation agreements entered into as financial guarantees of performance on customer-related interest rate swap derivatives. The Company also enters into residential mortgage loan commitments to fund mortgage loans at specified rates and times in the future and enters into forward sale commitments to sell such residential mortgage loans at specified prices and times in the future, both of which are considered derivative instruments. Derivative instruments are carried at fair value in the Company’s Consolidated Financial Statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not the instrument qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty plus any initial margin collateral posted. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote. The Company’s discounting methodology and interest calculation of cash margin uses the Secured Overnight Financing Rate, or SOFR, for U.S. dollar cleared interest rate swaps. Interest Rate Positions An interest rate swap is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged. The Company has entered into interest rate swaps in which it pays floating and receives fixed interest in order to manage its interest rate risk exposure to the variability in interest cash flows on certain floating-rate loans. Such interest rate swaps include those which effectively convert the floating rate one-month SOFR or overnight indexed swap rate, or prime rate interest payments received on the loans to a fixed rate and consequently reduce the Company’s exposure to variability in short-term interest rates. For interest rate swaps that are accounted for as cash flow hedges, changes in fair value are included in other comprehensive income and reclassified into net income in the same period or periods during which the hedged forecasted transaction affects net income. The following tables reflect the Company’s derivative positions for interest rate swaps which qualify as cash flow hedges for accounting purposes as of the dates indicated: As of September 30, 2023 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In thousands) (In Years) (In thousands) Interest rate swaps on loans $ 2,400,000 3.82 5.32 % 3.02 % $ (351) Total $ 2,400,000 $ (351) (1) The fair value included a net accrued interest payable balance of $2.5 million as of September 30, 2023. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the Chicago Mercantile Exchange, or CME, from a gross basis to a net basis in accordance with applicable accounting guidance. As of December 31, 2022 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In thousands) (In Years) (In thousands) Interest rate swaps on loans $ 2,400,000 4.57 4.07 % 3.02 % $ (2,401) Total $ 2,400,000 $ (2,401) (1) The fair value included a net accrued interest payable balance of $1.5 million as of December 31, 2022. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the CME from a gross basis to a net basis in accordance with applicable accounting guidance. The maximum amount of time over which the Company is currently hedging its exposure to the variability in future cash flows of forecasted transactions related to the receipt of variable interest on existing financial instruments is 4 years. The Company expects approximately $54.1 million will be reclassified into interest income, as a reduction of such income, from other comprehensive income related to the Company’s active cash flow hedges in the next 12 months as of September 30, 2023. The reclassification is due to anticipated net payments on the swaps based upon the forward curve as of September 30, 2023. The Company discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in accumulated other comprehensive income (“AOCI”) are reclassified immediately into earnings and any subsequent changes in the fair value of such derivatives are recognized directly in earnings. The following table presents the pre-tax impact of terminated cash flow hedges on AOCI for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Unrealized gains on terminated hedges included in AOCI – beginning of respective period $ — $ 1,850 $ 46 $ 10,239 Unrealized gains on terminated hedges arising during the period — — — — Reclassification adjustments for amortization of unrealized gains into net income — (1,263) (46) (9,652) Unrealized gains on terminated hedges included in AOCI – end of respective period $ — $ 587 $ — $ 587 Customer-Related Positions Interest rate swaps offered to commercial customers do not qualify as hedges for accounting purposes. These swaps allow the Company to retain variable rate commercial loans while allowing the commercial customer to synthetically fix the loan rate by entering into a variable-to-fixed rate interest rate swap. The Company believes that its exposure to commercial customer derivatives is limited to non-performance by either the customer or the dealer because these contracts are simultaneously matched at inception with an offsetting transaction. Risk participation agreements are entered into as financial guarantees of performance on interest rate swap derivatives. The purchased (asset) or sold (liability) guarantee allow the Company to participate-out (fee paid) or participate-in (fee received) the risk associated with certain derivative positions executed with the borrower by the lead bank in a customer-related interest rate swap derivative. Foreign exchange contracts consist of those offered to commercial customers and those entered into to hedge the Company’s foreign currency risk associated with a foreign-currency loan. Neither qualifies as a hedge for accounting purposes. These commercial customer derivatives are offset with matching derivatives with correspondent-bank counterparties in order to minimize foreign exchange rate risk to the Company. Exposure with respect to these derivatives is largely limited to non-performance by either the customer or the other counterparty. Neither the Company nor the correspondent-bank counterparty are required to post collateral but each has established foreign-currency transaction limits to manage the exposure risk. The Company requires its customers to post collateral to minimize risk exposure. The following tables present the Company’s customer-related derivative positions as of the dates indicated below for those derivatives not designated as hedging: September 30, 2023 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 376 $ 2,478,858 Risk participation agreements 73 267,812 Foreign exchange contracts: Matched commercial customer book 92 45,145 Foreign currency loan 6 11,553 December 31, 2022 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 382 $ 2,404,003 Risk participation agreements 63 241,029 Foreign exchange contracts: Matched commercial customer book 32 7,877 Foreign currency loan 5 13,948 The level of interest rate swaps, risk participation agreements and foreign currency exchange contracts at the end of each period noted above was commensurate with the activity throughout those periods. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Consolidated Balance Sheets for the periods indicated: Asset Derivatives Liability Derivatives Balance Fair Value at September 30, Fair Value at December 31, Balance Sheet Fair Value at September 30, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ 15 $ 16 Other liabilities $ 367 $ 2,417 Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 25,236 $ 23,567 Other liabilities $ 92,409 $ 78,577 Risk participation agreements Other assets 47 78 Other liabilities 45 130 Foreign currency exchange contracts - matched customer book Other assets 785 198 Other liabilities 763 205 Foreign currency exchange contracts - foreign currency loan Other assets 261 2 Other liabilities 1 93 $ 26,329 $ 23,845 $ 93,218 $ 79,005 Total $ 26,344 $ 23,861 $ 93,585 $ 81,422 The table below presents the net effect of the Company’s derivative financial instruments on the Consolidated Income Statements as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (In thousands) Derivatives designated as hedges: Loss in OCI on derivatives $ (29,022) $ (72,667) $ (66,168) $ (71,182) (Loss) gain reclassified from OCI into interest income (effective portion) $ (13,723) $ 3,755 $ (34,557) $ 12,797 Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) Interest income — — — — Other income — — — — Total $ — $ — $ — $ — Derivatives not designated as hedges: Customer-related positions: Gain recognized in interest rate swap income $ 910 $ 1,035 $ 770 $ 4,760 Gain recognized in interest rate swap income for risk participation agreements 25 38 54 186 Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book 9 (1) 29 (1) Foreign currency loan 503 (136) 351 9 Total gain for derivatives not designated as hedges $ 1,447 $ 936 $ 1,204 $ 4,954 The Company has agreements with its customer-related interest rate swap derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its customer-related interest rate swap derivative correspondent-bank counterparties that contain a provision whereby if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company’s exposure related to its customer-related interest rate swap derivatives consists of exposure on cleared derivative transactions and exposure on non-cleared derivative transactions. Cleared derivative transactions are with the Chicago Mercantile Exchange, or CME, and exposure is settled to market daily, with additional credit exposure related to initial-margin collateral pledged to CME at trade execution. At September 30, 2023, the Company had exposure to CME for settled variation margin in excess of the customer-related and non-customer-related interest rate swap termination values of $0.1 million. At December 31, 2022, the Company had no exposure to CME for settled variation margin in excess of the customer-related and non-customer-related interest rate swap termination values. In addition, at September 30, 2023 and December 31, 2022, the Company had posted initial-margin collateral in the form of U.S. Treasury notes amounting to $84.2 million and $84.1 million, respectively, to CME for these derivatives. The U.S. Treasury notes were considered restricted assets and were included in available for sale securities within the Company’s Consolidated Balance Sheets. At both September 30, 2023 and December 31, 2022, there were no customer-related interest rate swap derivatives with credit-risk contingent features in a net liability position. The Company has minimum collateral posting thresholds with its customer-related interest rate swap derivative correspondent-bank counterparties to the extent that the Company has a liability position with the correspondent-bank counterparties. At both September 30, 2023 and December 31, 2022, the Company had posted collateral in the form of cash amounting to $1.0 million, which was considered to be a restricted asset and was included in other short-term investments within the Company’s Consolidated Balance Sheets. If the Company had breached any of these provisions at September 30, 2023 or December 31, 2022, it would have been required to settle its obligations under the agreements at the termination value. In addition, the Company had cross-default provisions with its commercial customer loan agreements which provide cross-collateralization with the customer loan collateral. Mortgage Banking Derivatives The Company enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. In addition, the Company enters into forward sale commitments to sell such residential mortgage loans at specified prices and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale and the related forward sale commitments are considered derivative instruments under ASC Topic 815, “Derivatives and Hedging” and are reported at fair value. Changes in fair value are reported in earnings and included in other non-interest income on the Consolidated Statements of Income. As of September 30, 2023 and December 31, 2022, the Company had an outstanding notional balance of residential mortgage loan origination commitments of $12.2 million and $8.3 million, respectively, and forward sale commitments of $8.5 million and $10.0 million, respectively. During both the three months ended September 30, 2023 and September 30, 2022, the Company recorded net losses related to the change in fair value of commitments to originate and sell mortgage loans of less than $0.1 million. During the nine months ended September 30, 2023 and September 30, 2022, the Company recorded net losses related to the change in fair value of commitments to originate and sell mortgage loans of $0.1 million and $0.2 million, respectively. The aggregate fair value of both the Company’s mortgage banking derivative asset and liability as of both September 30, 2023 and December 31, 2022 was $0.1 million. Mortgage banking derivative assets and liabilities are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Residential mortgages sold are generally sold with servicing rights released. Mortgage banking derivatives do not qualify as hedges for accounting purposes. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2023 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet OffsettingCertain financial instruments, including derivatives, may be eligible for offset in the Consolidated Balance Sheets and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts. However, the Company does not offset fair value amounts recognized for derivative instruments. The Company nets the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. As of September 30, 2023 and December 31, 2022, it was determined that no additional collateral would have to be posted to immediately settle these instruments. The following tables present the Company’s asset and liability positions that were eligible for offset and the potential effect of netting arrangements on its Consolidated Balance Sheet, as of the dates indicated: As of September 30, 2023 Gross Gross Net Gross Amounts Not Offset Net Description Financial Collateral (In thousands) Derivative Assets Interest rate swaps $ 15 $ — $ 15 $ — $ — $ 15 Customer-related positions: Interest rate swaps 25,236 — 25,236 321 (16,900) 8,015 Risk participation agreements 47 — 47 — — 47 Foreign currency exchange contracts – matched customer book 785 — 785 — — 785 Foreign currency exchange contracts – foreign currency loan 261 — 261 — — 261 $ 26,344 $ — $ 26,344 $ 321 $ (16,900) $ 9,123 Derivative Liabilities Interest rate swaps $ 367 $ — $ 367 $ — $ 367 $ — Customer-related positions: Interest rate swaps 92,409 — 92,409 321 — 92,088 Risk participation agreements 45 — 45 — — 45 Foreign currency exchange contracts – matched customer book 763 — 763 — — 763 Foreign currency exchange contracts – foreign currency loan 1 — 1 — — 1 $ 93,585 $ — $ 93,585 $ 321 $ 367 $ 92,897 As of December 31, 2022 Gross Gross Net Gross Amounts Not Offset Net Description Financial Collateral (In thousands) Derivative Assets Interest rate swaps $ 16 $ — $ 16 $ — $ — $ 16 Customer-related positions: Interest rate swaps 23,567 — 23,567 381 (14,430) 8,756 Risk participation agreements 78 — 78 — — 78 Foreign currency exchange contracts – matched customer book 198 — 198 — — 198 Foreign currency exchange contracts – foreign currency loan 2 — 2 — — 2 $ 23,861 $ — $ 23,861 $ 381 $ (14,430) $ 9,050 Derivative Liabilities Interest rate swaps $ 2,417 $ — $ 2,417 $ — $ 2,417 $ — Customer-related positions: Interest rate swaps 78,577 — 78,577 381 — 78,196 Risk participation agreements 130 — 130 — — 130 Foreign currency exchange contracts – matched customer book 205 — 205 — — 205 Foreign currency exchange contracts – foreign currency loan 93 — 93 — — 93 $ 81,422 $ — $ 81,422 $ 381 $ 2,417 $ 78,624 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities ASC 820 “ Fair Value Measurements and Disclosures ” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able and willing to transact. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements), and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require unobservable inputs that reflect the Company’s own assumptions that are significant to the fair value measurement. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company uses fair value measurements to record adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that the Company believes market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement, and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash and Cash Equivalents For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value. Securities Securities consisted of U.S. Treasury securities, U.S. Agency bonds, U.S. government-sponsored residential and commercial mortgage-backed securities, state and municipal bonds, and other debt securities. AFS securities are recorded at fair value. The Company’s U.S. Treasury securities are traded on active markets and therefore these securities were classified as Level 1. The fair value of U.S. Agency bonds were evaluated using relevant trade data, benchmark quotes and spreads obtained from publicly available trade data, and generated on a price, yield or spread basis as determined by the observed market data. Therefore, these securities were categorized as Level 2 given the use of observable inputs. The fair value of U.S. government-sponsored residential and commercial mortgage-backed securities were estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Therefore, these securities were categorized as Level 2 given the use of observable inputs. The fair value of state and municipal bonds were estimated using a valuation matrix with inputs including observable bond interest rate tables, recent transactions, and yield relationships. Therefore, these securities were categorized as Level 2 given the use of observable inputs. The fair value of other debt securities, which were held at December 31, 2022 and had matured as of September 30, 2023, were estimated using a valuation matrix with inputs including observable bond interest rate tables, recent transactions, and yield relationships. Therefore, these securities were categorized as Level 2 given the use of observable inputs. Fair value was based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. Loans Held for Sale The fair value of loans held for sale, whose carrying amounts approximate fair value, was estimated using the anticipated market price based upon pricing indications provided by investor banks. These assets were classified as Level 2 given the use of observable inputs. Loans The fair value of commercial construction, commercial and industrial lines of credit, and certain other consumer loans was estimated by discounting the contractual cash flows using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. For commercial, commercial real estate, residential real estate, automobile, and consumer home equity loans, fair value was estimated by discounting contractual cash flows adjusted for prepayment estimates using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loans are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. Loans that are deemed to be collateral-dependent, as described in Note 2, “Summary of Significant Accounting Policies” within the Notes to the Consolidated Financial Statements included within the Company’s 2022 Form 10-K, were recorded at the fair value of the underlying collateral. FHLB Stock The fair value of FHLB stock approximates the carrying amount based on the redemption provisions of the FHLB. These assets were classified as Level 2. Rabbi Trust Investments Rabbi trust investments consisted primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and were recorded at fair value and included in other assets. The purpose of these rabbi trust investments is to fund certain executive non-qualified retirement benefits and deferred compensation. The fair value of other U.S. government agency obligations was estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities were categorized as Level 2 given the use of observable inputs. The equity securities, mutual funds and other exchange-traded funds were valued based on quoted prices from the market. The equities, mutual funds and exchange-traded funds traded in an active market were categorized as Level 1 as they were valued based upon quoted prices from the market. Mutual funds at net asset value amounted to $44.2 million at September 30, 2023 and $38.9 million at December 31, 2022. There were no redemption restrictions on these mutual funds at the end of any period presented. Bank-Owned Life Insurance The fair value of bank-owned life insurance was based upon quotations received from bank-owned life insurance dealers. These assets were classified as Level 2 given the use of observable inputs. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, interest checking accounts, and money market accounts, was equal to their carrying amount. The fair value of time deposits was based on the discounted value of contractual cash flows using current market interest rates. Deposits were classified as Level 2 given the use of observable market inputs. The fair value estimates of deposits do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the wholesale market (core deposit intangibles). FHLB Advances The fair value of FHLB advances was based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar remaining maturities. FHLB advances were classified as Level 2. Escrow Deposits of Borrowers The fair value of escrow deposits of borrowers, which have no stated maturity, approximates the carrying amount. Escrow deposits of borrowers were classified as Level 2. Interest Rate Swap Collateral Funds The fair value of interest rate swap collateral funds approximates the carrying amount. Interest rate swap collateral funds were classified as Level 2. Interest Rate Swaps The fair value of interest rate swaps was determined using discounted cash flow analysis on the expected cash flows of the interest rate swaps. This analysis reflects the contractual terms of the interest rate swaps, including the period of maturity, and uses observable market-based inputs, including interest rate curves and implied volatility. In addition, for customer-related interest rate swaps, the analysis reflects a credit valuation adjustment to reflect the Company’s own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. The majority of inputs used to value the Company’s interest rate swaps fall within Level 2 of the fair value hierarchy, but the credit valuation adjustments associated with the interest rate swaps utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, at September 30, 2023 and December 31, 2022, the impact of the Level 3 inputs on the overall valuation of the interest rate swaps was deemed insignificant to the overall valuation. As a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. Risk Participations The fair value of risk participations was determined based upon the total expected exposure of the derivative which considers the present value of cash flows discounted using market-based inputs and were therefore categorized as Level 2 within the fair value hierarchy. The fair value also included a credit valuation adjustment which evaluates the credit risk of the counterparties by considering factors such as the likelihood of default by the counterparties, its net exposures, the remaining contractual life, as well as the amount of collateral securing the position. The change in value of derivative assets and liabilities attributable to credit risk was not significant during the reported periods. Foreign Currency Forward Contracts The fair values of foreign currency forward contracts were based upon the remaining expiration period of the contracts and bid quotations received from foreign exchange contract dealers and were categorized as Level 2 within the fair value hierarchy. Mortgage Derivatives The fair value of mortgage derivatives is determined based upon current market prices for similar assets in the secondary market and, therefore are classified as Level 2 within the fair value hierarchy. Fair Value of Assets and Liabilities Measured on a Recurring Basis The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using Balance as of September 30, 2023 Quoted Prices in Significant Significant Description (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 2,700,630 $ — $ 2,700,630 $ — Government-sponsored commercial mortgage-backed securities 1,089,120 — 1,089,120 — U.S. Agency bonds 207,965 — 207,965 — U.S. Treasury securities 93,219 93,219 — — State and municipal bonds and obligations 170,584 — 170,584 — Rabbi trust investments 80,238 74,080 6,158 — Loans held for sale 23,892 — 23,892 — Interest rate swap contracts Cash flow hedges - interest rate positions 15 — 15 — Customer-related positions 25,236 — 25,236 — Risk participation agreements 47 — 47 — Foreign currency forward contracts Matched customer book 785 — 785 — Foreign currency loan 261 — 261 — Mortgage derivatives 68 — 68 — Total $ 4,392,060 $ 167,299 $ 4,224,761 $ — Liabilities Interest rate swap contracts Cash flow hedges - interest rate positions $ 367 $ — $ 367 $ — Customer-related positions 92,409 — 92,409 — Risk participation agreements 45 — 45 — Foreign currency forward contracts Matched customer book 763 — 763 — Foreign currency loan 1 — 1 — Mortgage derivatives 118 — 118 — Total $ 93,703 $ — $ 93,703 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices in Significant Significant (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 4,111,908 $ — $ 4,111,908 $ — Government-sponsored commercial mortgage-backed securities 1,348,954 — 1,348,954 — U.S. Agency bonds 952,482 — 952,482 — U.S. Treasury securities 93,057 93,057 — — State and municipal bonds and obligations 183,092 — 183,092 — Other debt securities 1,285 — 1,285 — Rabbi trust investments 76,286 69,257 7,029 — Loans held for sale 4,543 — 4,543 — Interest rate swap contracts Cash flow hedges - interest rate positions 16 — 16 — Customer-related positions 23,567 — 23,567 — Risk participation agreements 78 — 78 — Foreign currency forward contracts Matched customer book 198 — 198 — Foreign currency loan 2 — 2 — Mortgage derivatives 62 — 62 — Total $ 6,795,530 $ 162,314 $ 6,633,216 $ — Liabilities Interest rate swap contracts Cash flow hedges - interest rate positions $ 2,417 $ — $ 2,417 $ — Customer-related positions 78,577 — 78,577 — Risk participation agreements 130 — 130 — Foreign currency forward contracts Matched customer book 205 — 205 — Foreign currency loan 93 — 93 — Mortgage derivatives 58 — 58 — Total $ 81,480 $ — $ 81,480 $ — There were no transfers to or from Level 1, 2 and 3 during the nine months ended September 30, 2023 and twelve months ended December 31, 2022. The Company held no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2023 or December 31, 2022. Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis The Company may also be required, from time to time, to measure certain other assets and liabilities on a nonrecurring basis in accordance with generally accepted accounting principles. The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis, as of September 30, 2023 and December 31, 2022. Fair Value Measurements at Reporting Date Using Description Balance as of September 30, 2023 Quoted Prices Significant Significant (In thousands) Assets Individually assessed collateral-dependent loans whose fair value is based upon appraisals $ 18,105 $ — $ — $ 18,105 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 16,432 $ — $ — $ 16,432 For the valuation of the collateral-dependent loans, the Company relies primarily on 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. Depending on the type of underlying collateral, valuations may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Disclosures about Fair Value of Financial Instruments The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated: Fair Value Measurements at Reporting Date Using Description Carrying Value as of September 30, 2023 Fair Value as of September 30, 2023 Quoted Prices Significant Significant (In thousands) Assets Held to maturity securities: Government-sponsored residential mortgage-backed securities $ 260,271 $ 219,548 $ — $ 219,548 $ — Government-sponsored commercial mortgage-backed securities 195,629 168,106 — 168,106 — Loans, net of allowance for loan losses 13,744,822 13,099,665 — — 13,099,665 FHLB stock 37,125 37,125 — 37,125 — Bank-owned life insurance 163,700 163,700 — 163,700 — Liabilities Deposits $ 17,424,169 $ 17,412,731 $ — $ 17,412,731 $ — FHLB advances 673,525 670,747 — 670,747 — Escrow deposits of borrowers 24,947 24,947 — 24,947 — Interest rate swap collateral funds 16,900 16,900 — 16,900 — Fair Value Measurements at Reporting Date Using Description Carrying Value as of December 31, 2022 Fair Value as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Held to maturity securities: Government-sponsored residential mortgage-backed securities $ 276,493 $ 246,343 $ — $ 246,343 $ — Government-sponsored commercial mortgage-backed securities 200,154 176,883 — 176,883 — Loans, net of allowance for loan losses 13,420,317 13,149,096 — — 13,149,096 FHLB stock 41,363 41,363 — 41,363 — Bank-owned life insurance 160,790 160,790 — 160,790 — Liabilities Deposits $ 18,974,359 $ 18,960,407 $ — $ 18,960,407 $ — FHLB advances 704,084 702,954 — 702,954 — Escrow deposits of borrowers 22,314 22,314 — 22,314 — Interest rate swap collateral funds 14,430 14,430 — 14,430 — This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue from contracts with customers within the scope of ASC 606, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) is recognized when control of goods or services is transferred to the customer, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company measures revenue and timing of recognition by applying the following five steps: 1. Identify the contract(s) with the customers 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognize revenue when (or as) the entity satisfies a performance obligation The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. Performance obligations The Company’s performance obligations are generally satisfied either at a point in time or over time, as services are rendered. Unsatisfied performance obligations at the report date are not material to the Company’s Consolidated Financial Statements. A portion of the Company's noninterest income/(loss) is derived from contracts with customers within the scope of ASC 606. The Company has disaggregated such revenues by type of service, as presented in the table below. These categories reflect how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Service charges on deposit accounts $ 7,403 $ 6,708 $ 21,117 $ 23,558 Trust and investment advisory fees 6,235 5,832 18,136 17,967 Debit card processing fees 3,388 3,249 10,071 9,417 Other noninterest income 2,548 2,728 7,723 8,067 Total noninterest income in-scope of ASC 606 19,574 18,517 57,047 59,009 Total noninterest (loss) income out-of-scope of ASC 606 (417) 1,007 (321,539) (4,684) Total noninterest income (loss) $ 19,157 $ 19,524 $ (264,492) $ 54,325 Additional information related to each of the revenue streams is further noted below. Deposit Service Charges The Company offers various deposit account products to its customers governed by specific deposit agreements applicable to either personal customers or business customers. These agreements identify the general conditions and obligations of both parties and include standard information regarding deposit account-related fees. Deposit account services include providing access to deposit accounts as well as access to the various deposit transactional services of the Company. These transactional services are primarily those that are identified in the standard fee schedule, and include, but are not limited to, services such as overdraft protection, wire transfer, and check collection. The Company may charge monthly fixed service fees associated with the customer having access to the deposit account as well as separate fixed fees associated with and at the time specific transactions are entered into by the customer. As such, the Company considers that its performance obligations are fulfilled when customers are provided deposit account access or when the requested deposit transaction is completed. Cash management services are a subset of the deposit service charges revenue stream. These services include automated clearing house, or ACH, transaction processing, positive pay, lockbox, and remote deposit services. These services are also governed by separate agreements entered into by the customer. The fee arrangement for these services is structured as a fixed fee per transaction which may be offset by earnings credits. An earnings credit is a discount that a customer receives based upon the investable balance in the applicable covered deposit account(s) for a given month. Earnings credits are only good for the given month. That is, if cash management fees for a given month are less than the month’s earnings credit, the remainder of the credit does not carry over to the following month. Cash management fees are recognized as revenue in the month that the services are provided. Cash management fees earned but not yet received amounted to $1.7 million and $2.1 million as of September 30, 2023 and December 31, 2022 and were included in other assets. Trust and Investment Advisory Fees The Company offers investment management and trust services to individuals, institutions, small businesses and charitable institutions. Each investment management product is governed by its own contract along with a separate identifiable fee schedule unique to that product. The Company also offers additional services, such as estate settlement, financial planning, tax services, and other special services quoted at the customer’s request. The asset management and/or custody fees are primarily based upon a percentage of the monthly valuation of the principal assets in the customer’s account. Customers are also charged a base fee which is prorated over a twelve-month period. Fees for additional or special services are generally fixed in nature and are charged as services are rendered. All revenue is recognized in correlation to the monthly management fee determinations or as transactional services are provided. Debit Card Processing Fees The Company provides debit cards to its customers which are authorized and settled through various card payment networks, and in exchange, the Company earns revenue as determined by each payment network’s interchange program. Regardless of the network that is utilized to authorize and settle the payment, the merchant that provides the product or service to the debit card holder is ultimately responsible for the interchange payment to the Company. Debit card processing fees are recognized as card transactions are settled within each network. Debit card processing fees earned but not yet received amounted to $0.3 million as of both September 30, 2023 and December 31, 2022 and were included in other assets. Other Noninterest Income The Company earns various types of other noninterest income that have been aggregated into one general revenue stream in the table noted above. Noninterest income includes, but is not limited to, the following types of revenue with customers: safe deposit rent, ATM surcharge fees and customer checkbook fees. Individually, these sources of noninterest income are not material. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following tables present a reconciliation of the changes in the components of other comprehensive (loss) income for the dates indicated including the amount of income tax (expense) benefit allocated to each component of other comprehensive (loss) income: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Pre Tax Tax After Tax Pre Tax Tax After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (157,750) $ 40,490 $ (117,260) $ (194,259) $ 52,004 $ (142,255) Less: reclassification adjustment for losses included in net income — — — (333,170) 74,630 (258,540) Net change in fair value of securities available for sale (157,750) 40,490 (117,260) 138,911 (22,626) 116,285 Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (29,022) 8,193 (20,829) (66,168) 19,795 (46,373) Less: net cash flow hedge losses reclassified into interest income (1) (13,723) 3,874 (9,849) (34,557) 9,757 (24,800) Net change in fair value of cash flow hedges (15,299) 4,319 (10,980) (31,611) 10,038 (21,573) Defined benefit pension plans: Change in actuarial net loss — — — — — — Less: amortization of actuarial net loss (2,468) 697 (1,771) (7,404) 2,091 (5,313) Less: accretion of prior service credit 2,970 (839) 2,131 8,910 (2,495) 6,415 Net change in other comprehensive income for defined benefit postretirement plans (502) 142 (360) (1,506) 404 (1,102) Total other comprehensive (loss) income $ (173,551) $ 44,951 $ (128,600) $ 105,794 $ (12,184) $ 93,610 (1) Includes amortization of realized gains of less than $0.1 million on terminated cash flow hedges for the nine months ended September 30, 2023. The total original gain of $41.2 million, net of tax, became fully accreted into income during the nine months ended September 30, 2023. Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Pre Tax Tax After Tax Pre Tax Tax After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (337,762) $ 76,107 $ (261,655) $ (1,111,187) $ 249,158 $ (862,029) Less: reclassification adjustment for losses included in net income (198) 12 (186) (2,474) 714 (1,760) Net change in fair value of securities available for sale (337,564) 76,095 (261,469) (1,108,713) 248,444 (860,269) Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (72,667) 19,304 (53,363) (71,182) 18,899 (52,283) Less: net cash flow hedge gains reclassified into interest income (1) 3,755 (1,056) 2,699 12,797 (3,598) 9,199 Net change in fair value of cash flow hedges (76,422) 20,360 (56,062) (83,979) 22,497 (61,482) Defined benefit pension plans: Change in actuarial net loss — — — — — — Less: amortization of actuarial net loss (2,799) 787 (2,012) (8,395) 2,360 (6,035) Less: accretion of prior service credit 2,971 (835) 2,136 8,911 (2,505) 6,406 Net change in other comprehensive income for defined benefit postretirement plans (172) 48 (124) (516) 145 (371) Total other comprehensive loss $ (414,158) $ 96,503 $ (317,655) $ (1,193,208) $ 271,086 $ (922,122) (1) Includes amortization of realized gains on terminated cash flow hedges for the three and nine months ended September 30, 2022. The total realized gain of $41.2 million, net of tax, was fully recognized in earnings in the first quarter of 2023. The balance of this gain had amortized to $0.4 million, net of tax, at September 30, 2022. The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning Balance: January 1, 2023 $ (880,156) $ (50,159) $ 7,123 $ (923,192) Other comprehensive loss before reclassifications (142,255) (46,373) — (188,628) Less: Amounts reclassified from accumulated other comprehensive loss (258,540) (24,800) 1,102 (282,238) Net current-period other comprehensive income (loss) 116,285 (21,573) (1,102) 93,610 Ending Balance: September 30, 2023 $ (763,871) $ (71,732) $ 6,021 $ (829,582) Beginning Balance: January 1, 2022 $ (58,586) $ 7,361 $ (5,471) $ (56,696) Other comprehensive loss before reclassifications (862,029) (52,283) — (914,312) Less: Amounts reclassified from accumulated other comprehensive loss (1,760) 9,199 371 7,810 Net current-period other comprehensive loss (860,269) (61,482) (371) (922,122) Ending Balance: September 30, 2022 $ (918,855) $ (54,121) $ (5,842) $ (978,818) |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On September 19, 2023, the Company announced that it had entered into an asset purchase agreement (“the agreement”) with Arthur J. Gallagher & Co. (“Gallagher”) to sell substantially all of the assets of its insurance agency business for a gross purchase price of $515.0 million. The agreement also provides for the assumption of certain liabilities of the insurance agency business by Gallagher. Management made the decision to sell certain assets and transfer certain liabilities of its insurance agency business to recognize the valuation premium of the business, while allowing the Company to focus on growth and strategic initiatives of its core banking business. The sale closed on October 31, 2023. Refer to Note 20, “Subsequent Events” for additional discussion. In September 2023, following the approval of the sale by the Company’s board of directors, the Company reclassified substantially all of the assets and certain liabilities of its insurance agency business as held for sale in connection with a planned disposition of the business. A business is classified as held for sale when management, having the authority to approve the action, commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value, and certain other criteria are met. In accordance with ASC 205, Presentation of Financial Statements , the Company classifies operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on the Company’s financial condition and results of operations. Accordingly, the Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash flows present discontinued operations for the current period and were adjusted on a retrospective basis for prior periods. In addition, the assets and liabilities were remeasured at the lower of their respective carrying amount or fair value less costs to sell in accordance with ASC 360, Property, Plant, and Equipment . The following is a summary of the assets and liabilities of the discontinued insurance agency business as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In thousands) Assets Premises and equipment $ 50 $ 163 Goodwill and intangibles, net 91,115 93,117 Deferred income taxes, net (187) (315) Prepaid expenses 476 532 Other assets 33,264 34,722 Total assets $ 124,718 $ 128,219 Liabilities Other liabilities $ 34,820 $ 34,930 Total liabilities $ 34,820 $ 34,930 Certain assets and liabilities previously reported as assets and liabilities of the insurance agency business will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the asset sale. The following is a summary of such assets and liabilities as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In thousands) Assets Cash $ 77,852 $ 66,507 Premises and equipment (1) 1,776 1,792 Bank-owned life insurance 2,109 2,066 Deferred income taxes 3,457 3,662 Other assets (2) 11,187 12,944 Total assets $ 96,381 $ 86,971 Liabilities Other liabilities (3) $ 12,166 $ 14,013 Total liabilities $ 12,166 $ 14,013 (1) Includes buildings and related improvements. (2) Primarily includes assets held in rabbi trusts and the ROU asset associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. (3) Primarily includes employee post-retirement liabilities and the lease liability associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. The following presents operating results of the discontinued insurance agency business for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: Insurance commissions $ 25,897 $ 23,926 $ 85,177 $ 77,511 Other noninterest income 13 41 51 137 Total noninterest income 25,910 23,967 85,228 77,648 Noninterest expense: Salaries and employee benefits 24,655 16,768 57,991 49,057 Office occupancy and equipment 2,755 823 4,279 2,401 Data processing 1,013 1,052 3,216 3,248 Professional services 1,291 549 2,615 738 Marketing expenses 53 101 152 182 Amortization of intangible assets 665 734 2,002 1,868 Other 1,514 1,186 3,976 3,613 Total noninterest expense 31,946 21,213 74,231 61,107 (Loss) income from discontinued operations before income tax expense (6,036) 2,754 10,997 16,541 Income tax (benefit) expense (1,685) 785 3,125 4,669 (Loss) income from discontinued operations, net of taxes $ (4,351) $ 1,969 $ 7,872 $ 11,872 Certain income and expense amounts were excluded from discontinued operations as they relate to assets and liabilities which will not be assumed by Gallagher. The following is a summary of such items and the corresponding income tax effect for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (91) $ (266) $ 489 $ (1,634) Other noninterest income (1) 15 14 44 40 Total noninterest (loss) income (76) (252) 533 (1,594) Noninterest expense: Salaries and employee benefits (2) (96) (268) 484 (1,616) Office occupancy and equipment (3) 102 125 343 375 Other (4) 474 129 1,468 320 Total noninterest expense 480 (14) 2,295 (921) Loss before income tax expense (556) (238) (1,762) (673) Income tax benefit (156) (67) (495) (189) Net loss (400) (171) (1,267) (484) (1) Includes income on Company-owned life insurance policies which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (2) Includes expenses, which were a net credit, associated with certain employee post-retirement benefit plan expenses. (3) Includes depreciation expense associated with buildings and related improvements and ROU asset amortization related to one lease which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (4) Includes intercompany expenses and other expenses associated with the Defined Benefit Plan and BEP. Continuing Involvement Pursuant to the agreement, the Company will perform certain transitional services to Gallagher for up to 6 months following the closing of the sale. Such services include certain information and technology support and human resources support. The Company will be compensated for such services on a monthly basis and estimates the total compensation to be $1.0 million over the six month period plus reimbursement of any amounts paid by the Company in connection with its performance of the transitional services. Leases During the three and nine months ended September 30, 2023, upon reclassification of the above assets and liabilities to assets and liabilities of discontinued operations, the Company re-assessed the ROU assets of certain leases which will be assumed by Gallagher at closing and made the decision to abandon certain leases which will not be assumed by Gallagher and for which Eastern Insurance Group is the lessee. The ROU asset and lease liability of leases included in assets and liabilities of discontinued operations and which will either be assumed by Gallagher or terminated by the Company was $1.0 million and $3.5 million, respectively, at September 30, 2023 and $8.7 million and $9.2 million, respectively, at December 31, 2022. The Company will retain one lease for which Eastern Insurance Group is the current lessee. The lease will be partially sublet to Gallagher and transferred to the Bank upon dissolution of Eastern Insurance Group following the sale. The ROU asset and lease liability for such lease was $0.4 million and $0.6 million, respectively, at September 30, 2023 and $1.9 million and $2.2 million, respectively, at December 31, 2022. The Company remeasured the present value of the future lease payments related to each lease for which Eastern Insurance Group is the lessee which resulted in a net reduction of the lease liabilities and a corresponding net reduction of the lease ROU assets of $6.4 million. The Company recorded an impairment charge of $2.0 million related to leases which will be terminated early following the closing of the asset sale. The impairment charge was included in net (loss) income from discontinued operations for the three and nine months ended September 30, 2023. Revenue Recognition - Insurance Commissions The Company currently acts as an agent in offering property, casualty, and life and health insurance to both commercial and consumer customers though Eastern Insurance Group. The Company may also earn additional commissions from the insurers based upon meeting certain criteria, such as premium levels, growth rates, new business volume and loss experience. The Company recognizes commission revenues when earned based upon the effective date of the policy or when services are rendered. Certain revenues are deferred to reflect delivery of services over the contract period. Upon the transfer of Eastern Insurance Group’s assets to Arthur J. Gallagher & Co., which occurred on October 31, 2023, the Company ceased to offer insurance products and services and thus no longer receives insurance-related commissions and revenues. The Company earns a fixed commission rate on the sales of these products and services. Commissions are earned on the contract effective date and generally are based upon a percentage of premiums for insurance coverage. Commission rates depend upon a large number of factors, including the type of risk being placed, the particular underwriting enterprise’s demand, the expected loss experience of the particular risk coverage, and historical benchmarks surrounding the level of effort necessary for the Company to place and service the insurance contract. The vast majority of the Company’s services and revenues are associated with the placement of an insurance contract. Insurance commissions earned but not yet received amounted to $16.1 million and $15.1 million as of September 30, 2023 and December 31, 2022, respectively, and were included in assets of discontinued operations on the Consolidated Balance Sheets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 31, 2023, the Company completed the sale of its insurance agency business for net cash consideration of $498.1 million, subject to customary post-closing working capital adjustments. The net cash proceeds include the gross purchase price pursuant to the agreement of $515.0 million and an estimated working capital adjustment of $4.2 million, which were reduced by transaction expenses of $17.0 million and the settlement of certain obligations of the Company primarily related to employee post-retirement liabilities that originated prior to closing of $4.1 million. In addition, the Company transferred $7.4 million in fiduciary cash to Gallagher upon closing which is not included in the amount of net cash consideration of $498.1 million. In connection with the sale, the Company recognized a gain on sale of approximately $389.3 million, which is subject to certain post-closing adjustments related to working capital and transaction expenses. Refer to Note 19, “Discontinued Operations” for additional information regarding the Company’s sale of its insurance agency business. In addition, the Company recognized indirect noninterest expenses associated with the sale of approximately $24.2 million. In connection with the sale of its insurance agency business, the Company amended its Defined Benefit Plan and BEP (the “Plans”), as well as the ESOP, to allow for accelerated vesting for all employees of the insurance agency business and several employees of the Bank transitioning to Gallagher who are participating in the Plan. In addition, the amendments included an amendment to the vesting criteria for the BEP whereby all participants have been credited with service vesting in the same manner and vest according to the same three year cliff vesting schedule as provided under the Defined Benefit Plan. In addition, in accordance with ASC 715-20, “Compensation-Retirement Benefits - Defined Benefit Plans,” the Company recognized a curtailment gain upon completion of the sale of the insurance agency business associated with the prior service credits attributable to the employees of the insurance agency business, all of which transferred to Gallagher. As of the date of this Quarterly Report on Form 10-Q, management estimates the amount of such non-cash settlement credit to be a gain within the range of $13.0 million and $18.0 million, representing the combined effect of the amendments to the Defined Benefit Plan and BEP. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 59,113 | $ 54,777 | $ (86,326) | $ 157,465 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) as set forth by the Financial Accounting Standards Board (“FASB”) and its Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) as well as the rules and interpretive releases of the U.S. Securities and Exchange Commission (“SEC”) under the authority of federal securities laws. The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which it holds a controlling financial interest through being the primary beneficiary or through holding a majority of the voting interest. All intercompany accounts and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current period’s presentation which included certain loan servicing-related costs which have been reclassified from professional services to loan expense. In addition, as a result of the decision to sell substantially all of the assets and transfer substantially all of the liabilities of Eastern Insurance Group, the Company reclassified certain amounts previously reported including: • certain assets and liabilities previously reported in the insurance agency business were reclassified to assets and liabilities of discontinued operations, respectively, on the Consolidated Balance Sheets; • certain components of noninterest income and noninterest expense previously reported in the insurance agency business were reclassified to net income from discontinued operations on the Consolidated Statements of Income; and • certain operating, investing, and financing cash flows previously reported on their applicable lines within the Consolidated Statements of Cash Flows were reclassified to cash flows used in/provided by operating activities of, investment activities of and financing activities of discontinued operations, respectively. The accompanying Consolidated Balance Sheet as of September 30, 2023, the Consolidated Statements of Income and Comprehensive Income and of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2023 and 2022 and Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 are unaudited. The Consolidated Balance Sheet as of December 31, 2022 was derived from the Audited Consolidated Financial Statements as of that date. The interim Consolidated Financial Statements and the accompanying notes should be read in conjunction with the annual Consolidated Financial Statements and the accompanying notes contained within the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”), as filed with the SEC. In the opinion of management, the Company’s Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period. |
Use of Estimates | Use of Estimates In preparing the Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheets and income and expenses for the periods reported. Actual results could differ from those estimates based on changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses, valuation and fair value measurements, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Relevant standards that were recently issued but not yet adopted as of September 30, 2023: In March 2023, the FASB issued ASU 2023-02, Investments–Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). This update permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if the following conditions are met: 1. It is probable that the income tax credits allocable to the tax equity investor will be available. 2. The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project. 3. Substantially all of the projected benefits are from income tax credits and other income tax benefits. Projected benefits include income tax credits, other income tax benefits, and other non-income-tax-related benefits. The projected benefits are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project. 4. The tax equity investor’s projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive. 5. The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor’s liability is limited to its capital investment. Under existing accounting standards, the proportional amortization method is allowable only for equity investments in low-income-housing tax credit structures. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). Updates made by ASU 2023-02 allow a reporting entity to make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis. The Company had previously made an accounting policy election to account for its investments in low-income-housing tax credit investments using the proportional amortization method. This election was made upon the Company’s adoption of ASU 2014-01, Investments–Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects , which introduced the option to apply proportional amortization to low-income-housing tax credit investments . For public business entities, the amendments in ASU 2023-02 are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in an interim period. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”) . The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1. Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and loses are presented in the statement of cash flows; 2. Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3. Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4. Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5. Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements. Relevant standards that were adopted during the nine months ended September 30, 2023: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This update modifies how an acquiring entity measures contract assets and contract liabilities of an acquiree in a business combination in accordance with Topic 606. The amendments in this update require the acquiring entity in a business combination to account for revenue contracts as if they had originated the contract and assess how the acquiree accounted for the contract under Topic 606. ASU 2021-08 improves comparability of recognition and measurement of revenue contracts with customers both before and after a business combination. For public business entities, the amendments in this update were effective for fiscal years beginning after December 15, 2022. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. The adoption of this standard on January 1, 2023 did not have a material impact on the Company’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments–Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendments in this update eliminate the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-40 and amends the guidance on vintage disclosures, referenced in ASC 326-20-50, to require disclosure of current-period gross write-offs by year of origination. This update supersedes the existing accounting guidance for TDRs in ASC 310-40 in its entirety and requires entities to evaluate all receivable modifications under existing accounting guidance in ASC 310-20 to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan. In addition to the elimination of TDR accounting guidance, entities that adopt this update will no longer consider renewals, modifications and extensions that result from reasonably expected TDRs in their calculation of the allowance for credit losses. Further, if an entity employs a discounted cash flow method to calculate the allowance for credit losses, it will be required to use a post-modification-derived effective interest rate as part of its calculation. This update also requires new disclosures for receivables for which there has been a modification in their contractual cash flows resulting from borrowers experiencing financial difficulties. For public business entities, the amendments in this update were effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities may elect to apply the updated guidance on TDR recognition and measurement by using a modified retrospective transition method. The amendments on TDR disclosures and vintage disclosures should be adopted prospectively. On January 1, 2023, the Company adopted this standard by using the modified retrospective transition method, except with regard to amendments on TDR and vintage disclosures which were adopted prospectively. Accordingly, the Company recorded a cumulative-effect adjustment to retained earnings as of January 1, 2023. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. |
Allowance for Loan Losses - Loans Held for Investment | Allowance for Loan Losses - Loans Held for Investment Modifications of Loans to Borrowers Experiencing Financial Difficulty The amendments in ASU 2022-02 eliminated the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Thus, as a result of adoption of this standard on January 1, 2023, rather than applying the recognition and measurement guidance for TDRs, the Company now applies the loan refinancing and restructuring guidance codified in paragraphs 310-20-35-9 through 35-11 of the Accounting Standards Codification to determine whether a modification results in a new loan or a continuation of an existing loan. Modifications to borrowers experiencing financial difficulty include principal forgiveness, interest rate reductions, term extensions, other-than-insignificant payment delays and combinations thereof. Expected losses or recoveries related to loans where modifications have been granted to borrowers experiencing financial difficulty have been included in the Company’s determination of the allowance for loan losses. Upon adoption of ASU 2022-02, the Company is no longer required to use a discounted cash flow method to measure the allowance for loan losses resulting from a modification to a borrower experiencing financial difficulty. Accordingly, the Company now applies the same credit methodology it uses for similar loans that were not modified. As previously indicated, the Company adopted ASU 2022-02 using the modified retrospective transition method. Accordingly, upon adoption, commercial loan TDRs existing at that time which were measured using a discounted cash flow methodology and all residential real estate and consumer home equity loan TDRs were transitioned to the applicable segment of loans collectively evaluated for impairment based upon their risk characteristics. Commercial loan TDRs determined to be collateral dependent continue to be assessed for impairment on an individual basis. Prior to the Company’s adoption of ASU 2022-02, in cases where a borrower was experiencing financial difficulties and the Company made certain concessionary modifications to contractual terms, the loan was classified as a TDR. Modifications included adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations had been effectively discharged through Chapter 7 bankruptcy and the borrower had not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Management identified loans as TDR loans when it had a reasonable expectation that it would execute a TDR modification with a borrower. In addition, management estimated expected credit losses on a collective basis if a group of TDR loans shared similar risk characteristics. If a TDR loan’s risk characteristics were not similar to those of any of the Company’s other TDR loans, expected credit losses on the TDR loan were measured individually. The impairment analysis discounted the present value of the anticipated cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification or the fair value of collateral if the loan was collateral dependent. The amount of credit loss, if any, was recorded as a specific loss allocation to each individual loan or as a loss allocation to the pool of loans, for those loans for which credit loss was measured on a collective basis, in the allowance for credit losses. Any commercial (commercial and industrial, commercial real estate, commercial construction, and business banking loans) or residential loan that had been classified as a TDR and which subsequently defaulted was reviewed to determine if the loan should be deemed collateral-dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan was determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities [Abstract] | |
Debt Securities, Available-for-Sale | The amortized cost, gross unrealized gains and losses, allowance for credit losses (“ACL”) and fair value of available for sale (“AFS”) securities as of the dates indicated were as follows: As of September 30, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 3,380,463 $ — $ (679,833) $ — $ 2,700,630 Government-sponsored commercial mortgage-backed securities 1,343,187 — (254,067) — 1,089,120 U.S. Agency bonds 236,149 — (28,184) — 207,965 U.S. Treasury securities 99,494 — (6,275) — 93,219 State and municipal bonds and obligations 197,971 — (27,387) — 170,584 $ 5,257,264 $ — $ (995,746) $ — $ 4,261,518 As of December 31, 2022 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 4,855,763 $ — $ (743,855) $ — $ 4,111,908 Government-sponsored commercial mortgage-backed securities 1,570,119 — (221,165) — 1,348,954 U.S. Agency bonds 1,100,891 — (148,409) — 952,482 U.S. Treasury securities 99,324 — (6,267) — 93,057 State and municipal bonds and obligations 198,039 9 (14,956) — 183,092 Other debt securities 1,299 — (14) — 1,285 $ 7,825,435 $ 9 $ (1,134,666) $ — $ 6,690,778 |
Schedule of Realized Gain (Loss) | The following table summarizes gross realized gains and losses from sales of AFS securities for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Gross realized gains from sales of AFS securities $ — $ 725 $ — $ 1,770 Gross realized losses from sales of AFS securities — (923) (333,170) (4,244) Net (losses) gains from sales of AFS securities $ — $ (198) $ (333,170) $ (2,474) |
Summary of Government-Sponsored Residential Mortgage-Backed Securities with Gross Unrealized Losses | Information pertaining to AFS securities with gross unrealized losses as of September 30, 2023 and December 31, 2022, for which the Company did not recognize a provision for credit losses under the current expected credit loss methodology (“CECL”), aggregated by investment category and length of time that individual securities had been in a continuous loss position, is as follows: As of September 30, 2023 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars in thousands) Government-sponsored residential mortgage-backed securities 324 $ — $ — $ 679,833 $ 2,700,630 $ 679,833 $ 2,700,630 Government-sponsored commercial mortgage-backed securities 188 — — 254,067 1,089,120 254,067 1,089,120 U.S. Agency bonds 23 — — 28,184 207,965 28,184 207,965 U.S. Treasury securities 6 104 4,854 6,171 88,365 6,275 93,219 State and municipal bonds and obligations 242 5,216 48,268 22,171 122,316 27,387 170,584 783 $ 5,320 $ 53,122 $ 990,426 $ 4,208,396 $ 995,746 $ 4,261,518 As of December 31, 2022 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars in thousands) Government-sponsored residential mortgage-backed securities 322 $ 42,196 $ 435,690 $ 701,659 $ 3,676,218 $ 743,855 $ 4,111,908 Government-sponsored commercial mortgage-backed securities 199 38,944 300,476 182,221 1,048,478 221,165 1,348,954 U.S. Agency bonds 37 645 4,145 147,764 948,337 148,409 952,482 U.S. Treasury securities 5 1,311 48,451 4,956 44,606 6,267 93,057 State and municipal bonds and obligations 237 14,942 179,614 14 225 14,956 179,839 Other debt securities 2 — — 14 1,285 14 1,285 802 $ 98,038 $ 968,376 $ 1,036,628 $ 5,719,149 $ 1,134,666 $ 6,687,525 |
Debt Securities, Held-to-Maturity | The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of held to maturity (“HTM”) securities as of the dates indicated were as follows: As of September 30, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 260,271 $ — $ (40,723) $ — $ 219,548 Government-sponsored commercial mortgage-backed securities 195,629 — (27,523) — 168,106 $ 455,900 $ — $ (68,246) $ — $ 387,654 As of December 31, 2022 Amortized Unrealized Unrealized Allowance for Credit Losses Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 276,493 $ — $ (30,150) $ — $ 246,343 Government-sponsored commercial mortgage-backed securities 200,154 — (23,271) — 176,883 $ 476,647 $ — $ (53,421) $ — $ 423,226 |
Summary of Fair Value of Available for Sale Securities by Contractual Maturities | The scheduled contractual maturities of AFS and HTM securities as of the dates indicated were as follows: As of September 30, 2023 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) AFS securities Government-sponsored residential mortgage-backed securities $ — $ — $ 27,697 $ 26,351 $ 28,637 $ 26,316 $ 3,324,129 $ 2,647,963 $ 3,380,463 $ 2,700,630 Government-sponsored commercial mortgage-backed securities — — 164,329 145,815 475,624 398,011 703,234 545,294 1,343,187 1,089,120 U.S. Agency bonds — — 226,493 199,833 9,656 8,132 — — 236,149 207,965 U.S. Treasury securities — — 99,494 93,219 — — — — 99,494 93,219 State and municipal bonds and obligations 210 210 29,120 26,998 42,656 38,408 125,985 104,968 197,971 170,584 Total available for sale securities 210 210 547,133 492,216 556,573 470,867 4,153,348 3,298,225 5,257,264 4,261,518 HTM securities Government-sponsored residential mortgage-backed securities — — — — — — 260,271 219,548 260,271 219,548 Government-sponsored commercial mortgage-backed securities — — — — 195,629 168,106 — — 195,629 168,106 Total held to maturity securities — — — — 195,629 168,106 260,271 219,548 455,900 387,654 Total $ 210 $ 210 $ 547,133 $ 492,216 $ 752,202 $ 638,973 $ 4,413,619 $ 3,517,773 $ 5,713,164 $ 4,649,172 As of December 31, 2022 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) AFS securities Government-sponsored residential mortgage-backed securities $ — $ — $ 21,221 $ 20,284 $ 727,908 $ 648,132 $ 4,106,634 $ 3,443,492 $ 4,855,763 $ 4,111,908 Government-sponsored commercial mortgage-backed securities — — 191,762 171,992 649,659 556,641 728,698 620,321 1,570,119 1,348,954 U.S. Agency bonds — — 877,371 767,464 223,520 185,018 — — 1,100,891 952,482 U.S. Treasury securities — — 99,324 93,057 — — — — 99,324 93,057 State and municipal bonds and obligations 213 209 22,100 21,283 42,554 40,970 133,172 120,630 198,039 183,092 Other debt securities 1,299 1,285 — — — — — — 1,299 1,285 Total available for sale securities 1,512 1,494 1,211,778 1,074,080 1,643,641 1,430,761 4,968,504 4,184,443 7,825,435 6,690,778 HTM securities Government-sponsored residential mortgage-backed securities — — — — — — 276,493 246,343 276,493 246,343 Government-sponsored commercial mortgage-backed securities — — — — 200,154 176,883 0 — — 200,154 176,883 Total held to maturity securities — — — — 200,154 176,883 276,493 246,343 476,647 423,226 Total $ 1,512 $ 1,494 $ 1,211,778 $ 1,074,080 $ 1,843,795 $ 1,607,644 $ 5,244,997 $ 4,430,786 $ 8,302,082 $ 7,114,004 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table provides a summary of the Company’s loan portfolio as of the dates indicated: September 30, 2023 December 31, 2022 (In thousands) Commercial and industrial $ 3,087,509 $ 3,150,946 Commercial real estate 5,396,912 5,155,323 Commercial construction 382,615 336,276 Business banking 1,087,799 1,090,492 Residential real estate 2,550,861 2,460,849 Consumer home equity 1,193,859 1,187,547 Other consumer (2)(3) 219,720 194,098 Gross loans before unamortized premiums, unearned discounts and deferred fees 13,919,275 13,575,531 Allowance for loan losses (1) (155,146) (142,211) Unamortized premiums, net of unearned discounts and deferred fees (19,307) (13,003) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees $ 13,744,822 $ 13,420,317 (1) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $50.8 million and $45.2 million as of September 30, 2023 and December 31, 2022, respectively, and is included within other assets on the Consolidated Balance Sheets. (2) Automobile loans are included in the other consumer portfolio and amounted to $8.1 million and $18.1 million at September 30, 2023 and December 31, 2022, respectively. (3) Home improvement loans are included in the other consumer portfolio and amounted to $161.2 million and $121.1 million at September 30, 2023 and December 31, 2022, respectively. |
Financing Receivable, Allowance for Credit Loss | The following tables summarize the changes in the allowance for loan losses by loan category for the periods indicated: For the Three Months Ended September 30, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 29,535 $ 59,524 $ 7,663 $ 15,228 $ 27,012 $ 6,044 $ 2,949 $ 147,955 Charge-offs (11) — — (303) — — (731) (1,045) Recoveries 120 2 — 609 30 39 108 908 Provision (release) (3,126) 11,097 136 (316) (687) (601) 825 7,328 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 For the Three Months Ended September 30, 2022 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 25,852 $ 47,555 $ 5,474 $ 16,699 $ 21,663 $ 5,662 $ 2,626 $ 125,531 Charge-offs (11) — — (369) — — (603) (983) Recoveries 126 3 — 286 56 6 158 635 Provision (release) 874 3,545 507 (354) 1,288 174 446 6,480 Ending balance $ 26,841 $ 51,103 $ 5,981 $ 16,262 $ 23,007 $ 5,842 $ 2,627 $ 131,663 For the Nine Months Ended September 30, 2023 Commercial Commercial Commercial Business Residential Consumer Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 142,211 Cumulative effect of change in accounting principle (1) 47 — — (140) (849) (201) — (1,143) Charge-offs (11) — — (900) — (7) (1,883) (2,801) Recoveries 285 8 — 1,294 63 40 335 2,025 Provision (release) (662) 15,885 714 (1,225) (988) (804) 1,934 14,854 Ending balance $ 26,518 $ 70,623 $ 7,799 $ 15,218 $ 26,355 $ 5,482 $ 3,151 $ 155,146 For the Nine Months Ended September 30, 2022 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 Cumulative effect of change in accounting principle (2) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) $ 27,086 Charge-offs (13) — — (1,922) — — (1,754) — (3,689) Recoveries 1,074 53 — 1,678 80 16 533 — 3,434 Provision (release) (3,771) 5,332 1,911 (637) 2,882 247 1,081 — 7,045 Ending balance $ 26,841 $ 51,103 $ 5,981 $ 16,262 $ 23,007 $ 5,842 $ 2,627 $ — $ 131,663 (1) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2022-02 (i.e., cumulative effect adjustment related to the adoption of ASU 2022-02 as of January 1, 2023). The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. (2) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2016-13 (i.e., cumulative effect adjustment related to the adoption of ASU 2016-13 as of January 1, 2022). The adjustment represents a $27.1 million increase to the allowance attributable to the change in accounting methodology for estimating the allowance for loan losses resulting from the Company’s adoption of the standard. The adjustment also includes the adjustment needed to reflect the day one reclassification of the Company’s PCI loan balances to PCD and the associated gross-up of $0.1 million, pursuant to the Company’s adoption of ASU 2016-13. |
Summary of details the internal risk-rating categories for the Company's commercial and industrial, commercial real estate, commercial construction and business banking portfolios | The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of September 30, 2023, and gross charge-offs for the nine month period then ended: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 421,454 $ 489,139 $ 377,921 $ 351,075 $ 160,669 $ 656,163 $ 497,576 $ 3,555 $ 2,957,552 Special Mention 8,109 30,704 14,345 13,897 186 633 18,711 456 87,041 Substandard — 12 1,808 422 36 2,672 22,799 — 27,749 Doubtful — — — — — 8 — — 8 Loss — — — — — — — — — Total commercial and industrial 429,563 519,855 394,074 365,394 160,891 659,476 539,086 4,011 3,072,350 Current period gross charge-offs — — — — — 11 — — 11 Commercial real estate Pass 372,774 1,467,477 858,225 575,634 524,549 1,342,646 59,152 2,585 5,203,042 Special Mention — — — 744 2,395 28,343 — — 31,482 Substandard — — 15,356 3,990 50,704 54,851 8,005 — 132,906 Doubtful — — — — — 25,797 — — 25,797 Loss — — — — — — — — — Total commercial real estate 372,774 1,467,477 873,581 580,368 577,648 1,451,637 67,157 2,585 5,393,227 Current period gross charge-offs — — — — — — — — — Commercial construction Pass 99,843 140,590 124,288 — — — 10,727 — 375,448 Special Mention 5,182 — — 7 — — — — 5,189 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 105,025 140,590 124,288 7 — — 10,727 — 380,637 Current period gross charge-offs — — — — — — — — — Business banking Pass 107,950 164,497 187,765 152,567 117,485 252,479 71,942 3,433 1,058,118 Special Mention — 572 1,446 3,579 3,778 8,233 1,019 27 18,654 Substandard 1,401 611 3,554 2,127 1,069 3,452 647 584 13,445 Doubtful — — — 20 1,079 500 — — 1,599 Loss — — — — — — — — — Total business banking 109,351 165,680 192,765 158,293 123,411 264,664 73,608 4,044 1,091,816 Current period gross charge-offs — 111 62 56 102 250 23 296 900 Residential real estate Current and accruing 203,704 742,941 672,492 362,610 95,373 464,070 — — 2,541,190 30-89 days past due and accruing 441 4,032 4,343 905 940 8,855 — — 19,516 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 105 726 454 1,000 288 5,502 — — 8,075 Total residential real estate 204,250 747,699 677,289 364,515 96,601 478,427 — — 2,568,781 Current period gross charge-offs — — — — — — — — — Consumer home equity Current and accruing 27,721 86,954 9,557 5,189 4,356 84,939 954,862 7,028 1,180,606 30-89 days past due and accruing — 196 — — — 647 7,675 377 8,895 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — 67 — — — 1,788 5,472 179 7,506 Total consumer home equity 27,721 87,217 9,557 5,189 4,356 87,374 968,009 7,584 1,197,007 Current period gross charge-offs — — — — — — 7 — 7 Other consumer Current and accruing 72,222 39,286 26,060 13,635 12,949 18,047 13,030 112 195,341 30-89 days past due and accruing 126 143 61 19 68 183 28 — 628 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 13 62 10 — — 47 — 49 181 Total other consumer 72,361 39,491 26,131 13,654 13,017 18,277 13,058 161 196,150 Current period gross charge-offs 746 307 296 90 84 200 160 — 1,883 Total $ 1,321,045 $ 3,168,009 $ 2,297,685 $ 1,487,420 $ 975,924 $ 2,959,855 $ 1,671,645 $ 18,385 $ 13,899,968 (1) The amounts presented represent the amortized cost as of September 30, 2023 of revolving loans that were converted to term loans during the nine months ended September 30, 2023. 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, 2022 : 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total (In thousands) Commercial and industrial Pass $ 778,144 $ 479,317 $ 415,990 $ 199,865 $ 100,716 $ 639,825 $ 473,148 $ 50 $ 3,087,055 Special Mention 2,298 1,307 7,267 4,841 147 — 1,196 670 17,726 Substandard 294 4,954 2,644 46 2,598 7,854 485 346 19,221 Doubtful — 5,249 — — — 23 3,254 — 8,526 Loss — — — — — — — — — Total commercial and industrial 780,736 490,827 425,901 204,752 103,461 647,702 478,083 1,066 3,132,528 Commercial real estate Pass 1,510,675 825,620 586,567 581,840 461,296 1,006,160 52,590 4,187 5,028,935 Special Mention — — 771 4,204 15,366 12,255 — — 32,596 Substandard — — 2,621 19,796 24,532 34,883 8,000 — 89,832 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 1,510,675 825,620 589,959 605,840 501,194 1,053,298 60,590 4,187 5,151,363 Commercial construction Pass 91,397 178,648 28,956 20,767 — — 12,130 — 331,898 Special Mention — — 2,361 — — — — — 2,361 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction 91,397 178,648 31,317 20,767 — — 12,130 — 334,259 Business banking Pass 178,806 202,230 170,088 128,282 59,452 233,484 78,080 4,770 1,055,192 Special Mention — 991 4,635 4,605 3,740 7,584 145 — 21,700 Substandard — 3,482 1,424 2,663 570 7,505 2,230 221 18,095 Doubtful — — — 181 — 70 — — 251 Loss — — — — — — — — — Total business banking 178,806 206,703 176,147 135,731 63,762 248,643 80,455 4,991 1,095,238 Residential real estate Current and accruing 761,442 696,959 382,262 99,494 66,702 434,720 — — 2,441,579 30-89 days past due and accruing 4,652 5,470 1,245 2,762 2,951 11,646 — — 28,726 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — 144 1,491 1,015 7,100 — — 9,750 Total residential real estate 766,094 702,429 383,651 103,747 70,668 453,466 — — 2,480,055 Consumer home equity Current and accruing 97,395 10,774 5,840 5,015 21,092 73,927 953,829 7,320 1,175,192 30-89 days past due and accruing 559 — — — 72 944 7,239 247 9,061 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual — — — 61 274 1,303 5,120 296 7,054 Total consumer home equity 97,954 10,774 5,840 5,076 21,438 76,174 966,188 7,863 1,191,307 Other consumer Current and accruing 55,414 32,390 17,641 18,298 18,832 16,603 17,476 — 176,654 30-89 days past due and accruing 143 68 43 61 240 178 58 7 798 Loans 90 days or more past due and still accruing — — — — — — — — — Non-accrual 31 93 39 2 92 44 15 10 326 Total other consumer 55,588 32,551 17,723 18,361 19,164 16,825 17,549 17 177,778 Total $ 3,481,250 $ 2,447,552 $ 1,630,538 $ 1,094,274 $ 779,687 $ 2,496,108 $ 1,614,995 $ 18,124 $ 13,562,528 (1) The amounts presented represent the amortized cost as of December 31, 2022 of revolving loans that were converted to term loans during the year ended December 31, 2022. |
Summary of age analysis of past due loans | The following tables show the age analysis of past due loans as of the dates indicated: As of September 30, 2023 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 1,030 $ — $ 465 $ 1,495 $ 3,070,855 $ 3,072,350 Commercial real estate — — — — 5,393,227 5,393,227 Commercial construction — — — — 380,637 380,637 Business banking 4,536 1,846 1,539 7,921 1,083,895 1,091,816 Residential real estate 17,988 2,846 5,621 26,455 2,542,326 2,568,781 Consumer home equity 6,232 2,661 7,430 16,323 1,180,684 1,197,007 Other consumer 470 158 181 809 195,341 196,150 Total $ 30,256 $ 7,511 $ 15,236 $ 53,003 $ 13,846,965 $ 13,899,968 As of December 31, 2022 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 1,300 $ 385 $ 2,074 $ 3,759 $ 3,128,769 $ 3,132,528 Commercial real estate — — — — 5,151,363 5,151,363 Commercial construction — — — — 334,259 334,259 Business banking 6,642 845 3,517 11,004 1,084,234 1,095,238 Residential real estate 25,877 3,852 6,456 36,185 2,443,870 2,480,055 Consumer home equity 8,262 1,108 6,525 15,895 1,175,412 1,191,307 Other consumer 634 170 320 1,124 176,654 177,778 Total (1) $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 (1) The amounts presented in the table above represent the recorded investment balance of loans as of December 31, 2022. |
Summary pertaining to the breakdown of the Company's nonaccrual loans | The following table presents information regarding non-accrual loans as of the dates indicated: As of September 30, 2023 As of December 31, 2022 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (1) Total Nonaccrual Loans (In thousands) Commercial and industrial $ 4 $ 466 $ 470 $ 3,270 $ 10,707 $ 13,977 Commercial real estate 25,797 — 25,797 — — — Commercial construction — — — — — — Business banking 5,422 14 5,436 5,844 1,653 7,497 Residential real estate 8,075 — 8,075 9,750 — 9,750 Consumer home equity 7,506 — 7,506 7,054 — 7,054 Other consumer 181 — 181 326 — 326 Total non-accrual loans $ 46,985 $ 480 $ 47,465 $ 26,244 $ 12,360 $ 38,604 (1) The loans on non-accrual status and without an ACL as of both September 30, 2023 and December 31, 2022 , were primarily comprised of collateral dependent loans for which the fair value of the underlying loan collateral exceeded the loan carrying value. |
Summary of the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring | The following table shows the amortized cost balance as of September 30, 2023 of loans modified during the periods noted below to borrowers experiencing financial difficulty by the type of concession granted: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Amortized Cost Balance % of Total Portfolio Amortized Cost Balance % of Total Portfolio (Dollars in thousands) Interest Rate Reduction: Business banking $ — — % $ 46 0.00 % Residential real estate — — % 305 0.01 % Consumer home equity 203 0.02 % 1,441 0.12 % Total interest rate reduction $ 203 0.00 % $ 1,792 0.01 % Other-than-Insignificant Delay in Repayment: Business banking $ 21 0.00 % $ 21 0.00 % Residential real estate 2,084 0.08 % 2,517 0.10 % Consumer home equity 84 0.01 % 684 0.06 % Total other-than-insignificant delay in repayment $ 2,189 0.02 % $ 3,222 0.02 % Term Extension: Business banking — — % 259 0.02 % Total term extension $ — — % $ 259 0.00 % Combination—Interest Rate Reduction & Other-than-Insignificant Delay in Repayment: Business banking $ — — % $ 90 0.01 % Consumer home equity 428 0.04 % 603 0.05 % Total combination—interest rate reduction & other-than-insignificant delay in repayment $ 428 0.00 % $ 693 0.00 % Combination—Interest Rate Reduction & Term Extension: Business banking $ 41 0.00 % $ 551 0.05 % Consumer home equity — — % 216 0.02 % Total combination—interest rate reduction & term extension $ 41 0.00 % $ 767 0.01 % Combination—Term Extension & Other-than-Insignificant Delay in Repayment: Business banking $ — — % $ 26 0.00 % Residential real estate — — % 141 0.01 % Total combination—term extension & other-than-insignificant delay in repayment $ — — % $ 167 0.00 % Combination—Interest Rate Reduction, Term Extension & Other-than-Insignificant Delay in Repayment Business banking $ — — % $ 23 0.00 % Residential real estate — — % 83 0.00 % Total combination—interest rate reduction, term extension & other-than-insignificant delay in repayment $ — — % $ 106 0.00 % Total by portfolio segment Business banking $ 62 0.01 % $ 1,016 0.09 % Residential real estate 2,084 0.08 % 3,046 0.12 % Consumer home equity 715 0.06 % 2,944 0.25 % Total $ 2,861 0.02 % $ 7,006 0.05 % The following table describes the financial effect of the modifications made during the three months ended September 30, 2023 to borrowers experiencing financial difficulty: Loan Type Financial Effect (1) Interest Rate Reduction Business banking Reduced weighted-average contractual interest rate from 12.7% to 8.5%. Consumer home equity Reduced weighted-average contractual interest rate from 8.0% to 4.8%. Other-than-Insignificant Delay in Repayment Business banking Deferred a weighted average of 6 payments. For the principal and interest deferral, the loan was re-amortized over an extended payment period resulting in reduced monthly payment amounts for the borrower. Residential real estate Deferred a weighted average of 8 principal and interest payments which were added to the end of the loan life. Consumer home equity Deferred a weighted average of 3 principal and interest payments which were added to the end of the loan life. Term Extension Business banking Added a weighted-average 4.8 years to the life of 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. The following table describes the financial effect of the modifications made during the nine months ended September 30, 2023 to borrowers experiencing financial difficulty: Loan Type Financial Effect (1) Interest Rate Reduction Business banking Reduced weighted-average contractual interest rate from 9.8% to 7.4%. Residential real estate Reduced weighted-average contractual interest rate from 5.4% to 3.6%. Consumer home equity Reduced weighted-average contractual interest rate from 7.4% to 4.4%. Other-than-Insignificant Delay in Repayment Business banking Deferred a weighted average of 2 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. Residential real estate Deferred a weighted average of 8 principal and interest payments which were added to the end of the loan life. Consumer home equity Deferred a weighted average of 7 principal and interest payments which were added to the end of the loan life. Term Extension Business banking Added a weighted-average 5.1 years to the life of loans, which reduced monthly payment amounts for the borrowers. Residential real estate Added a weighted-average 23.7 years to the life of loans, which reduced monthly payment amounts for the borrowers. Consumer home equity Added a weighted-average 17.2 years to the life of 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. The following table shows the TDR loans on accrual and non-accrual status as of December 31, 2022: TDRs on Accrual Status TDRs on Non-Accrual Status Total TDRs Number of Loans Balance of Number of Loans Balance of Number of Loans Balance of (Dollars in thousands) Commercial and industrial 2 $ 4,449 9 $ 11,317 11 $ 15,766 Business banking 11 4,124 22 2,101 33 6,225 Residential real estate 114 17,618 28 4,016 142 21,634 Consumer home equity 51 2,632 19 1,917 70 4,549 Other consumer 1 11 — — 1 11 Total 179 $ 28,834 78 $ 19,351 257 $ 48,185 The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring: For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 Number Pre- Post- Number Pre-Modification Post- (Dollars in thousands) Commercial and industrial 3 $ 2,997 $ 2,997 4 $ 5,415 $ 5,415 Business banking 9 284 284 20 854 862 Residential real estate 5 1,170 1,170 8 1,899 1,899 Consumer home equity 4 1,236 1,236 6 1,468 1,468 Total 21 $ 5,687 $ 5,687 38 $ 9,636 $ 9,644 (1) The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest. The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the periods indicated: For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (In thousands) Extended maturity — 997 Adjusted interest rate and extended maturity 123 535 Interest only/principal deferred — 130 Covenant modification — 2,418 Principal and interest deferred 2,343 2,343 Extended maturity and interest only/principal deferred 2,997 2,997 Other 224 224 Total $ 5,687 $ 9,644 |
Summary of the age analysis of past due loans to borrowers experiencing financial difficulty | The following table shows the age analysis of past due loans to borrowers experiencing financial difficulty as of September 30, 2023 that were modified during the nine months ended September 30, 2023: As of September 30, 2023 30-59 60-89 90 or More Total Past Current Total (In thousands) Business banking $ 20 $ — $ — $ 20 $ 997 $ 1,017 Residential real estate 113 — — 113 2,933 3,046 Consumer home equity — 400 — 400 2,543 2,943 Total $ 133 $ 400 $ — $ 533 $ 6,473 $ 7,006 |
Summary of the Company's loan participations | The following table summarizes the Company’s loan participations: As of and for the Nine Months Ended September 30, 2023 As of and for the Year Ended December 31, 2022 Balance Non-performing Gross Balance Non-performing Gross (Dollars in thousands) Commercial and industrial $ 1,097,747 — % $ — $ 1,024,131 0.83 % $ — Commercial real estate 439,872 — % — 422,042 0.00 % — Commercial construction 135,612 — % — 96,134 0.00 % — Business banking 108 — % — 51 0.00 % 3 Total loan participations $ 1,673,339 — % $ — $ 1,542,358 0.55 % $ 3 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of Lease Cost | As of the dates indicated, the Company had the following related to operating leases: As of September 30, 2023 As of December 31, 2022 (In thousands) Right-of-use assets $ 52,727 $ 48,817 Lease liabilities 55,852 52,105 The following table is a summary of the Company’s components of net lease cost for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Operating lease cost $ 2,974 $ 3,182 $ 8,929 $ 9,670 Finance lease cost 87 77 246 231 Variable lease cost 655 577 1,993 1,914 Total lease cost $ 3,716 $ 3,836 $ 11,168 $ 11,815 |
Summary of Other Information Related to Leases | Supplemental balance sheet information related to operating leases are as follows: As of September 30, 2023 As of December 31, 2022 Weighted-average remaining lease term (in years) 8.51 7.26 Weighted-average discount rate 3.73 % 2.62 % |
Summary of Future Minimum Lease Payments | The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of September 30, 2023 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s Consolidated Balance Sheets: As of September 30, 2023 Year (In thousands) Remainder of 2023 $ 3,167 2024 10,183 2025 7,772 2026 6,682 2027 5,543 Thereafter 33,587 Total minimum lease payments 66,934 Less: amount representing interest 11,082 Present value of future minimum lease payments $ 55,852 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization, for the banking business as of the dates indicated below. The information presented within this Note excludes discontinued operations. Refer to Note 19, “Discontinued Operations” for further discussion regarding discontinued operations. As of September 30, 2023 As of December 31, 2022 (In thousands) Balances not subject to amortization Goodwill $ 557,635 $ 557,635 Balances subject to amortization Core deposit intangible (1) 9,074 10,374 Total goodwill and other intangible assets $ 566,709 $ 568,009 (1) Management performs an assessment of the remaining useful lives of the Company’s intangible assets on a quarterly basis to determine if such lives remain appropriate. As a result of the assessment performed during the second quarter of 2023, management reduced the remaining useful life of its core deposit intangible to five years which resulted in an increase in quarterly amortization expense. The effect of the increase on annual amortization expense was not material. |
Earnings (Loss) Per Share ("E_2
Earnings (Loss) Per Share ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share, Basic and Diluted | For the Three Months Ended September 30, 2023 For the Nine Months Ended September 30, 2023 (Dollars in thousands, except per share data) Net income (loss) applicable to common shares: Net income (loss) from continuing operations $ 63,464 $ (94,198) Net (loss) income from discontinued operations (4,351) 7,872 Total net income (loss) $ 59,113 $ (86,326) Average number of common shares outstanding 175,832,085 175,783,313 Less: Average unallocated ESOP shares (13,461,616) (13,584,155) Average number of common shares outstanding used to calculate basic earnings (loss) per common share 162,370,469 162,199,158 Common stock equivalents 99,418 61,345 Average number of common shares outstanding used to calculate diluted earnings (loss) per common share 162,469,887 162,260,503 Basic earnings (loss) per common share: Earnings (loss) per share from continuing operations $ 0.39 $ (0.58) (Loss) earnings per share from discontinued operations (0.03) 0.05 Total basic earnings (loss) per share $ 0.36 $ (0.53) Diluted earnings (loss) per common share: Earnings (loss) per share from continuing operations $ 0.39 $ (0.58) (Loss) earnings per share from discontinued operations (0.03) 0.05 Total diluted earnings (loss) per share $ 0.36 $ (0.53) For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (Dollars in thousands, except per share data) Net income applicable to common shares: Net income from continuing operations $ 52,808 $ 145,593 Net income from discontinued operations 1,969 11,872 Total net income $ 54,777 $ 157,465 Average number of common shares outstanding 177,677,074 180,764,479 Less: Average unallocated ESOP shares (13,958,112) (14,082,257) Average number of common shares outstanding used to calculate basic earnings per common share 163,718,962 166,682,222 Common stock equivalents 310,687 185,421 Average number of common shares outstanding used to calculate diluted earnings per common share 164,029,649 166,867,643 Basic earnings per common share: Earnings per share from continuing operations $ 0.32 $ 0.87 Earnings per share from discontinued operations 0.01 0.07 Total basic earnings per share $ 0.33 $ 0.94 Diluted earnings per common share: Earnings per share from continuing operations $ 0.32 $ 0.87 Earnings per share from discontinued operations 0.01 0.07 Total diluted earnings per share $ 0.33 $ 0.94 |
Low Income Housing Tax Credit_2
Low Income Housing Tax Credits and Other Tax Credit Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Summary of the Company's Investments in Low Income Housing Projects Accounted for Using the Proportional Amortization Method | The following table presents the Company’s investments in low income housing projects accounted for using the proportional amortization method for the periods indicated: As of September 30, 2023 As of December 31, 2022 (In thousands) Current recorded investment included in other assets $ 224,445 $ 128,765 Commitments to fund qualified affordable housing projects included in recorded investment noted above 159,230 84,145 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Tax credits and benefits recognized $ 1,602 $ 2,333 $ 8,169 $ 6,988 Amortization expense included in income tax (benefit) expense 745 1,886 6,322 5,616 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Dividends Declared | Information regarding dividends declared and paid is presented in the following table for the periods indicated: Dividends Declared per Share Dividends Declared Dividends Paid (In millions, except per share data) Three Months Ended March 31, 2023 $ 0.10 $ 16.3 $ 16.2 Three Months Ended June 30, 2023 0.10 16.4 16.3 Three Months Ended September 30, 2023 0.10 16.4 16.2 Three Months Ended March 31, 2022 $ 0.10 $ 17.1 $ 16.9 Three Months Ended June 30, 2022 0.10 16.7 16.5 Three Months Ended September 30, 2022 0.10 16.5 16.3 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Pension Expense | The components of net pension expense for the plans for the periods indicated are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Components of net periodic benefit cost: Service cost (1) $ 6,339 $ 8,094 $ 19,016 $ 24,278 Interest cost 4,297 2,429 12,893 7,289 Expected return on plan assets (7,532) (9,280) (22,596) (27,842) Prior service credit (2,970) (2,971) (8,910) (8,911) Recognized net actuarial loss 2,468 2,799 7,404 8,395 Net periodic benefit cost $ 2,602 $ 1,071 $ 7,807 $ 3,209 (1) Includes service costs related to employees of our insurance agency business. Such service costs were included in net (loss) income from discontinued operations as such costs will not continue to be incurred by the Company following the sale of the insurance agency business. All other costs included in the determination of the benefit obligation for the Defined Benefit Plan and the BEP were included in net income (loss) from continuing operations as the Bank will assume the related liability upon dissolution of Eastern Insurance Group following the sale of the insurance agency business. Service costs included in net (loss) income from discontinued operations and included in the above table were $1.5 million and $4.5 million for the three and nine months ended September 30, 2023, respectively, and were $1.9 million and $5.8 million for the three and nine months ended September 30, 2022, respectively. |
Schedule of Assets Held in Rabbi Trust | The following table presents the book value, mark-to-market, and fair value of assets held in rabbi trust accounts by asset type: As of September 30, 2023 As of December 31, 2022 Book Value Mark-to-Market Fair Value Book Value Mark-to-Market Fair Value Asset Type (In thousands) Cash and cash equivalents $ 11,420 $ — $ 11,420 $ 5,575 $ — $ 5,575 Equities (1) 55,838 6,822 62,660 60,056 3,626 63,682 Fixed income 6,863 (705) 6,158 7,799 (770) 7,029 Total assets $ 74,121 $ 6,117 $ 80,238 $ 73,430 $ 2,856 $ 76,286 (1) Equities include mutual funds and other exchange-traded funds. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table summarizes the Company’s restricted stock award activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock as of the beginning of the respective period 525,460 $ 20.08 683,056 $ 20.13 Granted 47,820 11.50 31,559 19.17 Vested (28,690) 19.17 — — Forfeited — — — — Non-vested restricted stock as of the end of the respective period 544,590 $ 19.37 714,615 $ 20.09 The following table summarizes the Company’s restricted stock unit activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock units as of the beginning of the respective period 972,325 $ 21.08 — $ — Granted 318,577 15.63 978,364 21.08 Vested (1) (231,407) 21.08 — — Forfeited (3,199) 16.72 (6,039) 21.08 Non-vested restricted stock units as of the end of the respective period 1,056,296 $ 19.45 972,325 $ 21.08 (1) Includes 74,625 shares withheld upon settlement for employee taxes. The following table summarizes the Company’s performance stock unit activity for the periods indicated: For the Nine Months Ended September 30, 2023 2022 Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested performance stock units as of the beginning of the respective period 533,676 $ 21.12 — $ — Granted 108,984 10.16 533,676 21.12 Vested — — — — Forfeited — — — — Non-vested performance stock units as of the end of the respective period 642,660 $ 19.26 533,676 $ 21.12 |
Share-based Compensation Expense Under the 2021 Plan and the Related Tax Benefit | The following table shows share-based compensation expense under the 2021 Plan and the related tax benefit for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Share-based compensation expense $ 3.7 $ 3.6 $ 11.4 $ 8.1 Related tax benefit 1.0 1.0 3.2 2.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Company's Tax Provision and Applicable Tax Rates | The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) Combined federal and state income tax (benefit) provision $ (16,178) $ 16,650 $ (65,619) $ 43,681 Effective income tax rate (34.2) % 24.0 % 41.1 % 23.1 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments as of the Dates Indicated | The following table summarizes the above financial instruments as of the dates indicated: As of September 30, 2023 As of December 31, 2022 (In thousands) Commitments to extend credit $ 5,920,300 $ 5,680,438 Standby letters of credit 54,532 65,154 Forward commitments to sell loans 8,495 10,008 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Derivative Instruments [Abstract] | |
Schedule of Interest Rate Derivatives | The following tables reflect the Company’s derivative positions for interest rate swaps which qualify as cash flow hedges for accounting purposes as of the dates indicated: As of September 30, 2023 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In thousands) (In Years) (In thousands) Interest rate swaps on loans $ 2,400,000 3.82 5.32 % 3.02 % $ (351) Total $ 2,400,000 $ (351) (1) The fair value included a net accrued interest payable balance of $2.5 million as of September 30, 2023. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the Chicago Mercantile Exchange, or CME, from a gross basis to a net basis in accordance with applicable accounting guidance. As of December 31, 2022 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In thousands) (In Years) (In thousands) Interest rate swaps on loans $ 2,400,000 4.57 4.07 % 3.02 % $ (2,401) Total $ 2,400,000 $ (2,401) (1) The fair value included a net accrued interest payable balance of $1.5 million as of December 31, 2022. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the CME from a gross basis to a net basis in accordance with applicable accounting guidance. |
Schedule of Pre-tax Impact of Terminated Cash Flow Hedges on AOCI | The following table presents the pre-tax impact of terminated cash flow hedges on AOCI for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Unrealized gains on terminated hedges included in AOCI – beginning of respective period $ — $ 1,850 $ 46 $ 10,239 Unrealized gains on terminated hedges arising during the period — — — — Reclassification adjustments for amortization of unrealized gains into net income — (1,263) (46) (9,652) Unrealized gains on terminated hedges included in AOCI – end of respective period $ — $ 587 $ — $ 587 |
Derivatives Not Designated as Hedging Instruments | The following tables present the Company’s customer-related derivative positions as of the dates indicated below for those derivatives not designated as hedging: September 30, 2023 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 376 $ 2,478,858 Risk participation agreements 73 267,812 Foreign exchange contracts: Matched commercial customer book 92 45,145 Foreign currency loan 6 11,553 December 31, 2022 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 382 $ 2,404,003 Risk participation agreements 63 241,029 Foreign exchange contracts: Matched commercial customer book 32 7,877 Foreign currency loan 5 13,948 |
Schedule of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Consolidated Balance Sheets for the periods indicated: Asset Derivatives Liability Derivatives Balance Fair Value at September 30, Fair Value at December 31, Balance Sheet Fair Value at September 30, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ 15 $ 16 Other liabilities $ 367 $ 2,417 Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 25,236 $ 23,567 Other liabilities $ 92,409 $ 78,577 Risk participation agreements Other assets 47 78 Other liabilities 45 130 Foreign currency exchange contracts - matched customer book Other assets 785 198 Other liabilities 763 205 Foreign currency exchange contracts - foreign currency loan Other assets 261 2 Other liabilities 1 93 $ 26,329 $ 23,845 $ 93,218 $ 79,005 Total $ 26,344 $ 23,861 $ 93,585 $ 81,422 |
Schedule of Derivative Financial Instruments On The Consolidated Income Statements | The table below presents the net effect of the Company’s derivative financial instruments on the Consolidated Income Statements as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (In thousands) Derivatives designated as hedges: Loss in OCI on derivatives $ (29,022) $ (72,667) $ (66,168) $ (71,182) (Loss) gain reclassified from OCI into interest income (effective portion) $ (13,723) $ 3,755 $ (34,557) $ 12,797 Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) Interest income — — — — Other income — — — — Total $ — $ — $ — $ — Derivatives not designated as hedges: Customer-related positions: Gain recognized in interest rate swap income $ 910 $ 1,035 $ 770 $ 4,760 Gain recognized in interest rate swap income for risk participation agreements 25 38 54 186 Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book 9 (1) 29 (1) Foreign currency loan 503 (136) 351 9 Total gain for derivatives not designated as hedges $ 1,447 $ 936 $ 1,204 $ 4,954 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Offsetting [Abstract] | |
Disclosure Detail Of Balance Sheet Offsetting Of Financial Assets And Liabilities | The following tables present the Company’s asset and liability positions that were eligible for offset and the potential effect of netting arrangements on its Consolidated Balance Sheet, as of the dates indicated: As of September 30, 2023 Gross Gross Net Gross Amounts Not Offset Net Description Financial Collateral (In thousands) Derivative Assets Interest rate swaps $ 15 $ — $ 15 $ — $ — $ 15 Customer-related positions: Interest rate swaps 25,236 — 25,236 321 (16,900) 8,015 Risk participation agreements 47 — 47 — — 47 Foreign currency exchange contracts – matched customer book 785 — 785 — — 785 Foreign currency exchange contracts – foreign currency loan 261 — 261 — — 261 $ 26,344 $ — $ 26,344 $ 321 $ (16,900) $ 9,123 Derivative Liabilities Interest rate swaps $ 367 $ — $ 367 $ — $ 367 $ — Customer-related positions: Interest rate swaps 92,409 — 92,409 321 — 92,088 Risk participation agreements 45 — 45 — — 45 Foreign currency exchange contracts – matched customer book 763 — 763 — — 763 Foreign currency exchange contracts – foreign currency loan 1 — 1 — — 1 $ 93,585 $ — $ 93,585 $ 321 $ 367 $ 92,897 As of December 31, 2022 Gross Gross Net Gross Amounts Not Offset Net Description Financial Collateral (In thousands) Derivative Assets Interest rate swaps $ 16 $ — $ 16 $ — $ — $ 16 Customer-related positions: Interest rate swaps 23,567 — 23,567 381 (14,430) 8,756 Risk participation agreements 78 — 78 — — 78 Foreign currency exchange contracts – matched customer book 198 — 198 — — 198 Foreign currency exchange contracts – foreign currency loan 2 — 2 — — 2 $ 23,861 $ — $ 23,861 $ 381 $ (14,430) $ 9,050 Derivative Liabilities Interest rate swaps $ 2,417 $ — $ 2,417 $ — $ 2,417 $ — Customer-related positions: Interest rate swaps 78,577 — 78,577 381 — 78,196 Risk participation agreements 130 — 130 — — 130 Foreign currency exchange contracts – matched customer book 205 — 205 — — 205 Foreign currency exchange contracts – foreign currency loan 93 — 93 — — 93 $ 81,422 $ — $ 81,422 $ 381 $ 2,417 $ 78,624 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary Of The Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using Balance as of September 30, 2023 Quoted Prices in Significant Significant Description (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 2,700,630 $ — $ 2,700,630 $ — Government-sponsored commercial mortgage-backed securities 1,089,120 — 1,089,120 — U.S. Agency bonds 207,965 — 207,965 — U.S. Treasury securities 93,219 93,219 — — State and municipal bonds and obligations 170,584 — 170,584 — Rabbi trust investments 80,238 74,080 6,158 — Loans held for sale 23,892 — 23,892 — Interest rate swap contracts Cash flow hedges - interest rate positions 15 — 15 — Customer-related positions 25,236 — 25,236 — Risk participation agreements 47 — 47 — Foreign currency forward contracts Matched customer book 785 — 785 — Foreign currency loan 261 — 261 — Mortgage derivatives 68 — 68 — Total $ 4,392,060 $ 167,299 $ 4,224,761 $ — Liabilities Interest rate swap contracts Cash flow hedges - interest rate positions $ 367 $ — $ 367 $ — Customer-related positions 92,409 — 92,409 — Risk participation agreements 45 — 45 — Foreign currency forward contracts Matched customer book 763 — 763 — Foreign currency loan 1 — 1 — Mortgage derivatives 118 — 118 — Total $ 93,703 $ — $ 93,703 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices in Significant Significant (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 4,111,908 $ — $ 4,111,908 $ — Government-sponsored commercial mortgage-backed securities 1,348,954 — 1,348,954 — U.S. Agency bonds 952,482 — 952,482 — U.S. Treasury securities 93,057 93,057 — — State and municipal bonds and obligations 183,092 — 183,092 — Other debt securities 1,285 — 1,285 — Rabbi trust investments 76,286 69,257 7,029 — Loans held for sale 4,543 — 4,543 — Interest rate swap contracts Cash flow hedges - interest rate positions 16 — 16 — Customer-related positions 23,567 — 23,567 — Risk participation agreements 78 — 78 — Foreign currency forward contracts Matched customer book 198 — 198 — Foreign currency loan 2 — 2 — Mortgage derivatives 62 — 62 — Total $ 6,795,530 $ 162,314 $ 6,633,216 $ — Liabilities Interest rate swap contracts Cash flow hedges - interest rate positions $ 2,417 $ — $ 2,417 $ — Customer-related positions 78,577 — 78,577 — Risk participation agreements 130 — 130 — Foreign currency forward contracts Matched customer book 205 — 205 — Foreign currency loan 93 — 93 — Mortgage derivatives 58 — 58 — Total $ 81,480 $ — $ 81,480 $ — |
Summary Of The Fair Value Of Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis | The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis, as of September 30, 2023 and December 31, 2022. Fair Value Measurements at Reporting Date Using Description Balance as of September 30, 2023 Quoted Prices Significant Significant (In thousands) Assets Individually assessed collateral-dependent loans whose fair value is based upon appraisals $ 18,105 $ — $ — $ 18,105 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 16,432 $ — $ — $ 16,432 |
Fair Value, by Balance Sheet Grouping | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated: Fair Value Measurements at Reporting Date Using Description Carrying Value as of September 30, 2023 Fair Value as of September 30, 2023 Quoted Prices Significant Significant (In thousands) Assets Held to maturity securities: Government-sponsored residential mortgage-backed securities $ 260,271 $ 219,548 $ — $ 219,548 $ — Government-sponsored commercial mortgage-backed securities 195,629 168,106 — 168,106 — Loans, net of allowance for loan losses 13,744,822 13,099,665 — — 13,099,665 FHLB stock 37,125 37,125 — 37,125 — Bank-owned life insurance 163,700 163,700 — 163,700 — Liabilities Deposits $ 17,424,169 $ 17,412,731 $ — $ 17,412,731 $ — FHLB advances 673,525 670,747 — 670,747 — Escrow deposits of borrowers 24,947 24,947 — 24,947 — Interest rate swap collateral funds 16,900 16,900 — 16,900 — Fair Value Measurements at Reporting Date Using Description Carrying Value as of December 31, 2022 Fair Value as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Held to maturity securities: Government-sponsored residential mortgage-backed securities $ 276,493 $ 246,343 $ — $ 246,343 $ — Government-sponsored commercial mortgage-backed securities 200,154 176,883 — 176,883 — Loans, net of allowance for loan losses 13,420,317 13,149,096 — — 13,149,096 FHLB stock 41,363 41,363 — 41,363 — Bank-owned life insurance 160,790 160,790 — 160,790 — Liabilities Deposits $ 18,974,359 $ 18,960,407 $ — $ 18,960,407 $ — FHLB advances 704,084 702,954 — 702,954 — Escrow deposits of borrowers 22,314 22,314 — 22,314 — Interest rate swap collateral funds 14,430 14,430 — 14,430 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | A portion of the Company's noninterest income/(loss) is derived from contracts with customers within the scope of ASC 606. The Company has disaggregated such revenues by type of service, as presented in the table below. These categories reflect how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Service charges on deposit accounts $ 7,403 $ 6,708 $ 21,117 $ 23,558 Trust and investment advisory fees 6,235 5,832 18,136 17,967 Debit card processing fees 3,388 3,249 10,071 9,417 Other noninterest income 2,548 2,728 7,723 8,067 Total noninterest income in-scope of ASC 606 19,574 18,517 57,047 59,009 Total noninterest (loss) income out-of-scope of ASC 606 (417) 1,007 (321,539) (4,684) Total noninterest income (loss) $ 19,157 $ 19,524 $ (264,492) $ 54,325 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following tables present a reconciliation of the changes in the components of other comprehensive (loss) income for the dates indicated including the amount of income tax (expense) benefit allocated to each component of other comprehensive (loss) income: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Pre Tax Tax After Tax Pre Tax Tax After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (157,750) $ 40,490 $ (117,260) $ (194,259) $ 52,004 $ (142,255) Less: reclassification adjustment for losses included in net income — — — (333,170) 74,630 (258,540) Net change in fair value of securities available for sale (157,750) 40,490 (117,260) 138,911 (22,626) 116,285 Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (29,022) 8,193 (20,829) (66,168) 19,795 (46,373) Less: net cash flow hedge losses reclassified into interest income (1) (13,723) 3,874 (9,849) (34,557) 9,757 (24,800) Net change in fair value of cash flow hedges (15,299) 4,319 (10,980) (31,611) 10,038 (21,573) Defined benefit pension plans: Change in actuarial net loss — — — — — — Less: amortization of actuarial net loss (2,468) 697 (1,771) (7,404) 2,091 (5,313) Less: accretion of prior service credit 2,970 (839) 2,131 8,910 (2,495) 6,415 Net change in other comprehensive income for defined benefit postretirement plans (502) 142 (360) (1,506) 404 (1,102) Total other comprehensive (loss) income $ (173,551) $ 44,951 $ (128,600) $ 105,794 $ (12,184) $ 93,610 (1) Includes amortization of realized gains of less than $0.1 million on terminated cash flow hedges for the nine months ended September 30, 2023. The total original gain of $41.2 million, net of tax, became fully accreted into income during the nine months ended September 30, 2023. Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Pre Tax Tax After Tax Pre Tax Tax After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (337,762) $ 76,107 $ (261,655) $ (1,111,187) $ 249,158 $ (862,029) Less: reclassification adjustment for losses included in net income (198) 12 (186) (2,474) 714 (1,760) Net change in fair value of securities available for sale (337,564) 76,095 (261,469) (1,108,713) 248,444 (860,269) Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (72,667) 19,304 (53,363) (71,182) 18,899 (52,283) Less: net cash flow hedge gains reclassified into interest income (1) 3,755 (1,056) 2,699 12,797 (3,598) 9,199 Net change in fair value of cash flow hedges (76,422) 20,360 (56,062) (83,979) 22,497 (61,482) Defined benefit pension plans: Change in actuarial net loss — — — — — — Less: amortization of actuarial net loss (2,799) 787 (2,012) (8,395) 2,360 (6,035) Less: accretion of prior service credit 2,971 (835) 2,136 8,911 (2,505) 6,406 Net change in other comprehensive income for defined benefit postretirement plans (172) 48 (124) (516) 145 (371) Total other comprehensive loss $ (414,158) $ 96,503 $ (317,655) $ (1,193,208) $ 271,086 $ (922,122) (1) Includes amortization of realized gains on terminated cash flow hedges for the three and nine months ended September 30, 2022. The total realized gain of $41.2 million, net of tax, was fully recognized in earnings in the first quarter of 2023. The balance of this gain had amortized to $0.4 million, net of tax, at September 30, 2022. |
Schedule of Accumulated Other Comprehensive Loss | The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning Balance: January 1, 2023 $ (880,156) $ (50,159) $ 7,123 $ (923,192) Other comprehensive loss before reclassifications (142,255) (46,373) — (188,628) Less: Amounts reclassified from accumulated other comprehensive loss (258,540) (24,800) 1,102 (282,238) Net current-period other comprehensive income (loss) 116,285 (21,573) (1,102) 93,610 Ending Balance: September 30, 2023 $ (763,871) $ (71,732) $ 6,021 $ (829,582) Beginning Balance: January 1, 2022 $ (58,586) $ 7,361 $ (5,471) $ (56,696) Other comprehensive loss before reclassifications (862,029) (52,283) — (914,312) Less: Amounts reclassified from accumulated other comprehensive loss (1,760) 9,199 371 7,810 Net current-period other comprehensive loss (860,269) (61,482) (371) (922,122) Ending Balance: September 30, 2022 $ (918,855) $ (54,121) $ (5,842) $ (978,818) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of the Asset and Liabilities of the Discontinued Insurance Agency Business | The following is a summary of the assets and liabilities of the discontinued insurance agency business as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In thousands) Assets Premises and equipment $ 50 $ 163 Goodwill and intangibles, net 91,115 93,117 Deferred income taxes, net (187) (315) Prepaid expenses 476 532 Other assets 33,264 34,722 Total assets $ 124,718 $ 128,219 Liabilities Other liabilities $ 34,820 $ 34,930 Total liabilities $ 34,820 $ 34,930 September 30, 2023 December 31, 2022 (In thousands) Assets Cash $ 77,852 $ 66,507 Premises and equipment (1) 1,776 1,792 Bank-owned life insurance 2,109 2,066 Deferred income taxes 3,457 3,662 Other assets (2) 11,187 12,944 Total assets $ 96,381 $ 86,971 Liabilities Other liabilities (3) $ 12,166 $ 14,013 Total liabilities $ 12,166 $ 14,013 (1) Includes buildings and related improvements. (2) Primarily includes assets held in rabbi trusts and the ROU asset associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. (3) Primarily includes employee post-retirement liabilities and the lease liability associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. The following presents operating results of the discontinued insurance agency business for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: Insurance commissions $ 25,897 $ 23,926 $ 85,177 $ 77,511 Other noninterest income 13 41 51 137 Total noninterest income 25,910 23,967 85,228 77,648 Noninterest expense: Salaries and employee benefits 24,655 16,768 57,991 49,057 Office occupancy and equipment 2,755 823 4,279 2,401 Data processing 1,013 1,052 3,216 3,248 Professional services 1,291 549 2,615 738 Marketing expenses 53 101 152 182 Amortization of intangible assets 665 734 2,002 1,868 Other 1,514 1,186 3,976 3,613 Total noninterest expense 31,946 21,213 74,231 61,107 (Loss) income from discontinued operations before income tax expense (6,036) 2,754 10,997 16,541 Income tax (benefit) expense (1,685) 785 3,125 4,669 (Loss) income from discontinued operations, net of taxes $ (4,351) $ 1,969 $ 7,872 $ 11,872 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (91) $ (266) $ 489 $ (1,634) Other noninterest income (1) 15 14 44 40 Total noninterest (loss) income (76) (252) 533 (1,594) Noninterest expense: Salaries and employee benefits (2) (96) (268) 484 (1,616) Office occupancy and equipment (3) 102 125 343 375 Other (4) 474 129 1,468 320 Total noninterest expense 480 (14) 2,295 (921) Loss before income tax expense (556) (238) (1,762) (673) Income tax benefit (156) (67) (495) (189) Net loss (400) (171) (1,267) (484) (1) Includes income on Company-owned life insurance policies which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (2) Includes expenses, which were a net credit, associated with certain employee post-retirement benefit plan expenses. (3) Includes depreciation expense associated with buildings and related improvements and ROU asset amortization related to one lease which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (4) Includes intercompany expenses and other expenses associated with the Defined Benefit Plan and BEP. |
Summary of the Operating Results of the Discontinued Insurance Agency Business | The following is a summary of the assets and liabilities of the discontinued insurance agency business as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In thousands) Assets Premises and equipment $ 50 $ 163 Goodwill and intangibles, net 91,115 93,117 Deferred income taxes, net (187) (315) Prepaid expenses 476 532 Other assets 33,264 34,722 Total assets $ 124,718 $ 128,219 Liabilities Other liabilities $ 34,820 $ 34,930 Total liabilities $ 34,820 $ 34,930 September 30, 2023 December 31, 2022 (In thousands) Assets Cash $ 77,852 $ 66,507 Premises and equipment (1) 1,776 1,792 Bank-owned life insurance 2,109 2,066 Deferred income taxes 3,457 3,662 Other assets (2) 11,187 12,944 Total assets $ 96,381 $ 86,971 Liabilities Other liabilities (3) $ 12,166 $ 14,013 Total liabilities $ 12,166 $ 14,013 (1) Includes buildings and related improvements. (2) Primarily includes assets held in rabbi trusts and the ROU asset associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. (3) Primarily includes employee post-retirement liabilities and the lease liability associated with one lease which will be assumed by the Bank upon dissolution of Eastern Insurance Group following the sale. The following presents operating results of the discontinued insurance agency business for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: Insurance commissions $ 25,897 $ 23,926 $ 85,177 $ 77,511 Other noninterest income 13 41 51 137 Total noninterest income 25,910 23,967 85,228 77,648 Noninterest expense: Salaries and employee benefits 24,655 16,768 57,991 49,057 Office occupancy and equipment 2,755 823 4,279 2,401 Data processing 1,013 1,052 3,216 3,248 Professional services 1,291 549 2,615 738 Marketing expenses 53 101 152 182 Amortization of intangible assets 665 734 2,002 1,868 Other 1,514 1,186 3,976 3,613 Total noninterest expense 31,946 21,213 74,231 61,107 (Loss) income from discontinued operations before income tax expense (6,036) 2,754 10,997 16,541 Income tax (benefit) expense (1,685) 785 3,125 4,669 (Loss) income from discontinued operations, net of taxes $ (4,351) $ 1,969 $ 7,872 $ 11,872 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (91) $ (266) $ 489 $ (1,634) Other noninterest income (1) 15 14 44 40 Total noninterest (loss) income (76) (252) 533 (1,594) Noninterest expense: Salaries and employee benefits (2) (96) (268) 484 (1,616) Office occupancy and equipment (3) 102 125 343 375 Other (4) 474 129 1,468 320 Total noninterest expense 480 (14) 2,295 (921) Loss before income tax expense (556) (238) (1,762) (673) Income tax benefit (156) (67) (495) (189) Net loss (400) (171) (1,267) (484) (1) Includes income on Company-owned life insurance policies which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (2) Includes expenses, which were a net credit, associated with certain employee post-retirement benefit plan expenses. (3) Includes depreciation expense associated with buildings and related improvements and ROU asset amortization related to one lease which will not be disposed of and will be transferred into the Bank upon dissolution of Eastern Insurance Group following the sale. (4) Includes intercompany expenses and other expenses associated with the Defined Benefit Plan and BEP. |
Securities - Summary Of Debt Se
Securities - Summary Of Debt Securities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 5,257,264,000 | $ 7,825,435,000 | |
Unrealized Gains | 0 | 9,000 | |
Unrealized Losses | (995,746,000) | (1,134,666,000) | |
Allowance for Credit Losses | 0 | 0 | $ 0 |
Fair Value | 4,261,518,000 | 6,690,778,000 | |
Government-sponsored residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,380,463,000 | 4,855,763,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (679,833,000) | (743,855,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | 2,700,630,000 | 4,111,908,000 | |
Government-sponsored commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,343,187,000 | 1,570,119,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (254,067,000) | (221,165,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | 1,089,120,000 | 1,348,954,000 | |
U.S. Agency bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 236,149,000 | 1,100,891,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (28,184,000) | (148,409,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | 207,965,000 | 952,482,000 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 99,494,000 | 99,324,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (6,275,000) | (6,267,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | 93,219,000 | 93,057,000 | |
State and municipal bonds and obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 197,971,000 | 198,039,000 | |
Unrealized Gains | 0 | 9,000 | |
Unrealized Losses | (27,387,000) | (14,956,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | $ 170,584,000 | 183,092,000 | |
Other debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,299,000 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | (14,000) | ||
Allowance for Credit Losses | 0 | ||
Fair Value | $ 1,285,000 |
Securities - Additional Informa
Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) holding | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) holding | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) holding | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, available-for-sale, allowance for credit loss, excluding accrued interest | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | 9,700,000 | 9,700,000 | $ 12,900,000 | ||
Debt securities, available-for-sale, accrued interest writeoff | $ 0 | 0 | $ 0 | 0 | |
Number of securities in an unrealized loss position | holding | 783 | 783 | 802 | ||
Debt securities, held-to-maturity, allowance for credit loss, excluding accrued interest | $ 0 | 0 | $ 0 | 0 | $ 0 |
Debt securities, held-to-maturity, accrued interest, after allowance for credit loss | 1,000,000 | 1,000,000 | 1,000,000 | ||
Debt securities, held-to-maturity, accrued interest, writeoff | 0 | $ 0 | 0 | $ 0 | |
Deposit liabilities, collateral issued, financial instruments | 429,000,000 | 429,000,000 | 437,900,000 | ||
Other debt securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, available-for-sale, allowance for credit loss, excluding accrued interest | $ 0 | ||||
Number of securities in an unrealized loss position | holding | 2 | ||||
Foreign Debt Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of securities in an unrealized loss position | holding | 2 | ||||
Bank Term Funding Program | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Deposit liabilities, collateral issued, financial instruments | 2,500,000,000 | 2,500,000,000 | $ 0 | ||
Federal Reserve Discount Window | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Deposit liabilities, collateral issued, financial instruments | $ 370,300,000 | $ 370,300,000 | $ 0 |
Securities - Schedule of Realiz
Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities [Abstract] | ||||
Gross realized gains from sales of AFS securities | $ 0 | $ 725 | $ 0 | $ 1,770 |
Gross realized losses from sales of AFS securities | 0 | (923) | (333,170) | (4,244) |
Net (losses) gains from sales of AFS securities | $ 0 | $ (198) | $ (333,170) | $ (2,474) |
Securities - Summary Of Governm
Securities - Summary Of Government-Sponsored Residential Mortgage-Backed Securities With Gross Unrealized Losses (Details) $ in Thousands | Sep. 30, 2023 USD ($) holding | Dec. 31, 2022 USD ($) holding |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 783 | 802 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 5,320 | $ 98,038 |
12 Months or Longer | 990,426 | 1,036,628 |
Total | 995,746 | 1,134,666 |
Fair Value | ||
Less than 12 Months | 53,122 | 968,376 |
12 Months or Longer | 4,208,396 | 5,719,149 |
Total | $ 4,261,518 | $ 6,687,525 |
Government-sponsored residential mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 324 | 322 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 0 | $ 42,196 |
12 Months or Longer | 679,833 | 701,659 |
Total | 679,833 | 743,855 |
Fair Value | ||
Less than 12 Months | 0 | 435,690 |
12 Months or Longer | 2,700,630 | 3,676,218 |
Total | $ 2,700,630 | $ 4,111,908 |
Government-sponsored commercial mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 188 | 199 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 0 | $ 38,944 |
12 Months or Longer | 254,067 | 182,221 |
Total | 254,067 | 221,165 |
Fair Value | ||
Less than 12 Months | 0 | 300,476 |
12 Months or Longer | 1,089,120 | 1,048,478 |
Total | $ 1,089,120 | $ 1,348,954 |
U.S. Agency bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 23 | 37 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 0 | $ 645 |
12 Months or Longer | 28,184 | 147,764 |
Total | 28,184 | 148,409 |
Fair Value | ||
Less than 12 Months | 0 | 4,145 |
12 Months or Longer | 207,965 | 948,337 |
Total | $ 207,965 | $ 952,482 |
U.S. Treasury securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 6 | 5 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 104 | $ 1,311 |
12 Months or Longer | 6,171 | 4,956 |
Total | 6,275 | 6,267 |
Fair Value | ||
Less than 12 Months | 4,854 | 48,451 |
12 Months or Longer | 88,365 | 44,606 |
Total | $ 93,219 | $ 93,057 |
State and municipal bonds and obligations | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 242 | 237 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 5,216 | $ 14,942 |
12 Months or Longer | 22,171 | 14 |
Total | 27,387 | 14,956 |
Fair Value | ||
Less than 12 Months | 48,268 | 179,614 |
12 Months or Longer | 122,316 | 225 |
Total | $ 170,584 | $ 179,839 |
Other debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | holding | 2 | |
Gross Unrealized Losses | ||
Less than 12 Months | $ 0 | |
12 Months or Longer | 14 | |
Total | 14 | |
Fair Value | ||
Less than 12 Months | 0 | |
12 Months or Longer | 1,285 | |
Total | $ 1,285 |
Securities - Debt Securities, H
Securities - Debt Securities, Held-to-maturity (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | |||
Amortized Cost | $ 455,900,000 | $ 476,647,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (68,246,000) | (53,421,000) | |
Allowance for Credit Losses | 0 | 0 | $ 0 |
Fair Value | 387,654,000 | 423,226,000 | |
Government-sponsored residential mortgage-backed securities | |||
Schedule of Held-to-Maturity Securities [Line Items] | |||
Amortized Cost | 260,271,000 | 276,493,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (40,723,000) | (30,150,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | 219,548,000 | 246,343,000 | |
Government-sponsored commercial mortgage-backed securities | |||
Schedule of Held-to-Maturity Securities [Line Items] | |||
Amortized Cost | 195,629,000 | 200,154,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (27,523,000) | (23,271,000) | |
Allowance for Credit Losses | 0 | 0 | |
Fair Value | $ 168,106,000 | $ 176,883,000 |
Securities - Summary Of Fair Va
Securities - Summary Of Fair Value Of Available For Sale Securities By Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
AFS securities | ||
Due in one year or less, Amortized Cost | $ 210 | $ 1,512 |
Due in one year or less, Fair value | 210 | 1,494 |
Due after one year to five years, Amortized Cost | 547,133 | 1,211,778 |
Due after one year to five years, Fair value | 492,216 | 1,074,080 |
Due after five to ten years, Amortized Cost | 556,573 | 1,643,641 |
Due after five to ten years, Fair value | 470,867 | 1,430,761 |
Due after ten years, Amortized Cost | 4,153,348 | 4,968,504 |
Due after ten years, Fair value | 3,298,225 | 4,184,443 |
Amortized Cost | 5,257,264 | 7,825,435 |
Fair Value | 4,261,518 | 6,690,778 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 0 | 0 |
Due after one year to five years, Fair value | 0 | 0 |
Due after five to ten years, Amortized Cost | 195,629 | 200,154 |
Due after five to ten years, Fair value | 168,106 | 176,883 |
Due after ten years, Amortized Cost | 260,271 | 276,493 |
Due after ten years, Fair value | 219,548 | 246,343 |
Amortized Cost | 455,900 | 476,647 |
Fair Value | 387,654 | 423,226 |
Total | ||
Due in one year or less, Amortized Cost | 210 | 1,512 |
Due in one year or less, Fair value | 210 | 1,494 |
Due after one year to five years, Amortized Cost | 547,133 | 1,211,778 |
Due after one year to five years, Fair value | 492,216 | 1,074,080 |
Due after five to ten years, Amortized Cost | 752,202 | 1,843,795 |
Due after five to ten years, Fair value | 638,973 | 1,607,644 |
Due after ten years, Amortized Cost | 4,413,619 | 5,244,997 |
Due after ten years, Fair value | 3,517,773 | 4,430,786 |
Amortized Cost | 5,713,164 | 8,302,082 |
Fair Value | 4,649,172 | 7,114,004 |
Government-sponsored residential mortgage-backed securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 27,697 | 21,221 |
Due after one year to five years, Fair value | 26,351 | 20,284 |
Due after five to ten years, Amortized Cost | 28,637 | 727,908 |
Due after five to ten years, Fair value | 26,316 | 648,132 |
Due after ten years, Amortized Cost | 3,324,129 | 4,106,634 |
Due after ten years, Fair value | 2,647,963 | 3,443,492 |
Amortized Cost | 3,380,463 | 4,855,763 |
Fair Value | 2,700,630 | 4,111,908 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 0 | 0 |
Due after one year to five years, Fair value | 0 | 0 |
Due after five to ten years, Amortized Cost | 0 | 0 |
Due after five to ten years, Fair value | 0 | 0 |
Due after ten years, Amortized Cost | 260,271 | 276,493 |
Due after ten years, Fair value | 219,548 | 246,343 |
Amortized Cost | 260,271 | 276,493 |
Fair Value | 219,548 | 246,343 |
Government-sponsored commercial mortgage-backed securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 164,329 | 191,762 |
Due after one year to five years, Fair value | 145,815 | 171,992 |
Due after five to ten years, Amortized Cost | 475,624 | 649,659 |
Due after five to ten years, Fair value | 398,011 | 556,641 |
Due after ten years, Amortized Cost | 703,234 | 728,698 |
Due after ten years, Fair value | 545,294 | 620,321 |
Amortized Cost | 1,343,187 | 1,570,119 |
Fair Value | 1,089,120 | 1,348,954 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 0 | 0 |
Due after one year to five years, Fair value | 0 | 0 |
Due after five to ten years, Amortized Cost | 195,629 | 200,154 |
Due after five to ten years, Fair value | 168,106 | 176,883 |
Due after ten years, Amortized Cost | 0 | 0 |
Due after ten years, Fair value | 0 | 0 |
Amortized Cost | 195,629 | 200,154 |
Fair Value | 168,106 | 176,883 |
U.S. Agency bonds | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 226,493 | 877,371 |
Due after one year to five years, Fair value | 199,833 | 767,464 |
Due after five to ten years, Amortized Cost | 9,656 | 223,520 |
Due after five to ten years, Fair value | 8,132 | 185,018 |
Due after ten years, Amortized Cost | 0 | 0 |
Due after ten years, Fair value | 0 | 0 |
Amortized Cost | 236,149 | 1,100,891 |
Fair Value | 207,965 | 952,482 |
U.S. Treasury securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 99,494 | 99,324 |
Due after one year to five years, Fair value | 93,219 | 93,057 |
Due after five to ten years, Amortized Cost | 0 | 0 |
Due after five to ten years, Fair value | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Due after ten years, Fair value | 0 | 0 |
Amortized Cost | 99,494 | 99,324 |
Fair Value | 93,219 | 93,057 |
State and municipal bonds and obligations | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 210 | 213 |
Due in one year or less, Fair value | 210 | 209 |
Due after one year to five years, Amortized Cost | 29,120 | 22,100 |
Due after one year to five years, Fair value | 26,998 | 21,283 |
Due after five to ten years, Amortized Cost | 42,656 | 42,554 |
Due after five to ten years, Fair value | 38,408 | 40,970 |
Due after ten years, Amortized Cost | 125,985 | 133,172 |
Due after ten years, Fair value | 104,968 | 120,630 |
Amortized Cost | 197,971 | 198,039 |
Fair Value | $ 170,584 | 183,092 |
Other debt securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 1,299 | |
Due in one year or less, Fair value | 1,285 | |
Due after one year to five years, Amortized Cost | 0 | |
Due after one year to five years, Fair value | 0 | |
Due after five to ten years, Amortized Cost | 0 | |
Due after five to ten years, Fair value | 0 | |
Due after ten years, Amortized Cost | 0 | |
Due after ten years, Fair value | 0 | |
Amortized Cost | 1,299 | |
Fair Value | $ 1,285 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Summary of Company's Loan Portfolio as of the Dates Indicated (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | $ 13,919,275 | $ 13,575,531 | ||||
Allowance for loan losses | (155,146) | $ (147,955) | (142,211) | $ (131,663) | $ (125,531) | $ (97,787) |
Unamortized premiums, net of unearned discounts and deferred fees | (19,307) | (13,003) | ||||
Net loans | 13,744,822 | 13,420,317 | ||||
Financing receivable, accrued interest, before allowance for credit loss | 50,800 | 45,200 | ||||
Commercial and industrial | Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 3,087,509 | 3,150,946 | ||||
Allowance for loan losses | (26,518) | (29,535) | (26,859) | (26,841) | (25,852) | (18,018) |
Commercial real estate | Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 5,396,912 | 5,155,323 | ||||
Allowance for loan losses | (70,623) | (59,524) | (54,730) | (51,103) | (47,555) | (52,373) |
Commercial construction | Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 382,615 | 336,276 | ||||
Allowance for loan losses | (7,799) | (7,663) | (7,085) | (5,981) | (5,474) | (2,585) |
Business banking | Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,087,799 | 1,090,492 | ||||
Allowance for loan losses | (15,218) | (15,228) | (16,189) | (16,262) | (16,699) | (10,983) |
Residential real estate | Residential Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 2,550,861 | 2,460,849 | ||||
Allowance for loan losses | (26,355) | (27,012) | (28,129) | (23,007) | (21,663) | (6,556) |
Consumer home equity | Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,193,859 | 1,187,547 | ||||
Allowance for loan losses | (5,482) | (6,044) | (6,454) | (5,842) | (5,662) | (3,722) |
Other Consumer | Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 219,720 | 194,098 | ||||
Allowance for loan losses | (3,151) | $ (2,949) | (2,765) | $ (2,627) | $ (2,626) | $ (3,308) |
Automobile Loan | Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 8,100 | 18,100 | ||||
Home Improvement Loans | Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | $ 161,200 | $ 121,100 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) loan | Jun. 30, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Loan syndications, amount | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||||
Financing receivable, excluding accrued interest, after allowance for credit loss | 13,744,822,000 | 13,744,822,000 | 13,744,822,000 | $ 13,420,317,000 | |||||||
Debt, long-term and short-term, combined amount | 715,372,000 | 715,372,000 | 715,372,000 | 740,828,000 | |||||||
Mortgage loans partially or wholly-owned by others and serviced by the Company | 78,800,000 | 78,800,000 | 78,800,000 | 84,000,000 | |||||||
Loan purchases | 0 | $ 79,900,000 | 32,000,000 | $ 79,900,000 | |||||||
Proceeds from sales of commercial loans | 189,296,000 | 0 | |||||||||
Realized loss on sales of commercial loans | [1] | (2,505,000) | 0 | ||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | 155,146,000 | 155,146,000 | 131,663,000 | $ 155,146,000 | 131,663,000 | $ 147,955,000 | 142,211,000 | $ 125,531,000 | $ 97,787,000 | ||
Maximum number of days required for special mention | 90 days | ||||||||||
Outstanding recorded investment of loans that were new to troubled debt restructuring | 11,000,000 | ||||||||||
Amount of specific reserve associated with the TDR | 1,800,000 | ||||||||||
Amounts charged-off on TDRs | 0 | ||||||||||
Federal Home Loan Bank Advances | Asset Pledged as Collateral | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, excluding accrued interest, after allowance for credit loss | 4,200,000,000 | 4,200,000,000 | $ 4,200,000,000 | 3,900,000,000 | |||||||
Federal Reserve Bank Advances | Asset Pledged as Collateral | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, excluding accrued interest, after allowance for credit loss | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | |||||||
Residential Real Estate | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, collateral dependent loans | 900,000 | 900,000 | 900,000 | 600,000 | |||||||
Commercial Portfolio Segment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, collateral dependent loans | 27,800,000 | 27,800,000 | 27,800,000 | 16,200,000 | |||||||
Cumulative effect accounting adjustment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | (1,143,000) | 27,086,000 | |||||||||
Unfunded Loan Commitment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | 14,900,000 | 14,900,000 | 14,900,000 | 13,200,000 | $ 11,100,000 | ||||||
Unfunded Loan Commitment | Cumulative effect accounting adjustment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ 1,000,000 | ||||||||||
Residential real estate | Residential Real Estate | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Amortized cost of loans purchased | 391,700,000 | 391,700,000 | 391,700,000 | 376,100,000 | |||||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ 26,355,000 | $ 26,355,000 | 23,007,000 | $ 26,355,000 | 23,007,000 | 27,012,000 | $ 28,129,000 | 21,663,000 | 6,556,000 | ||
Number of loans in process of foreclosure | loan | 1 | 1 | 1 | 0 | |||||||
Mortgage loans in process of foreclosure, amount | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||
Residential real estate | Cumulative effect accounting adjustment | Residential Real Estate | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ (849,000) | 13,489,000 | |||||||||
Consumer home equity | Consumer Portfolio Segment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ 5,482,000 | $ 5,482,000 | 5,842,000 | $ 5,482,000 | 5,842,000 | 6,044,000 | $ 6,454,000 | 5,662,000 | 3,722,000 | ||
Number of loans in process of foreclosure | loan | 3 | 3 | 3 | 0 | |||||||
Mortgage loans in process of foreclosure, amount | $ 400,000 | $ 400,000 | $ 400,000 | ||||||||
Consumer home equity | Cumulative effect accounting adjustment | Consumer Portfolio Segment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ (201,000) | 1,857,000 | |||||||||
Commercial and industrial | Commercial Portfolio Segment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Proceeds from sales of commercial loans | 191,800,000 | 191,800,000 | |||||||||
Realized loss on sales of commercial loans | $ 2,500,000 | $ 2,500,000 | |||||||||
Number of loans transferred to held-for-sale | loan | 1 | 1 | 1 | ||||||||
Financing receivable, transfer to held-for-sale | $ 22,400,000 | ||||||||||
Transfer to held-for-sale, loss | 200,000 | ||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | 26,518,000 | $ 26,518,000 | $ 26,841,000 | $ 26,518,000 | $ 26,841,000 | $ 29,535,000 | 26,859,000 | $ 25,852,000 | 18,018,000 | ||
Commercial and industrial | Cumulative effect accounting adjustment | Commercial Portfolio Segment | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Financing receivable, allowance for credit loss, excluding accrued interest | 47,000 | $ 11,533,000 | |||||||||
Federal Home Loan Bank Advances | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Advance from Federal Home Loan Bank | 673,500,000 | 673,500,000 | 673,500,000 | 704,100,000 | |||||||
Federal Reserve Bank Advances | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Debt, long-term and short-term, combined amount | 0 | 0 | 0 | $ 0 | |||||||
Unrated | Minimum | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Lines of credit, exposure | 100,000 | 100,000 | 100,000 | ||||||||
Unrated | Line of Credit | Commercial Portfolio Segment | Maximum | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Lines of credit, exposure | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||
Unrated | Line of Credit | Business Banking | Commercial Portfolio Segment | Maximum | |||||||||||
Changes in lines of credit,resrticted to commercial exposure | |||||||||||
Lines of credit, exposure | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||||||
[1]Excludes the mark-to-market adjustment related to one commercial and industrial loan transferred to held for sale during the nine months ended September 30, 2023 which is included in the change in loans held for sale. |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Summary of Changes in Allowance for Loan Losses by Loan Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 97,787 | $ 147,955 | $ 125,531 | $ 142,211 | $ 97,787 |
Charge-offs | (1,045) | (983) | (2,801) | (3,689) | |
Recoveries | 908 | 635 | 2,025 | 3,434 | |
Provision (release) | 7,328 | 6,480 | 14,854 | 7,045 | |
Ending balance | 155,146 | 131,663 | 155,146 | 131,663 | |
Allowance for loan losses | 155,146 | 131,663 | 155,146 | 131,663 | |
Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 27,086 | (1,143) | 27,086 | ||
Allowance for loan losses | |||||
Cumulative effect accounting adjustment | Accounting Standards Update 2022-02 | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | (1,100) | ||||
Allowance for loan losses | |||||
Cumulative effect accounting adjustment | Accounting Standards Update 2016-13 | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 27,100 | 27,100 | |||
Allowance for loan losses | |||||
PCI loan balances to PCD and the associated gross-up | 100 | ||||
Commercial and industrial | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 18,018 | 29,535 | 25,852 | 26,859 | 18,018 |
Charge-offs | (11) | (11) | (11) | (13) | |
Recoveries | 120 | 126 | 285 | 1,074 | |
Provision (release) | (3,126) | 874 | (662) | (3,771) | |
Ending balance | 26,518 | 26,841 | 26,518 | 26,841 | |
Allowance for loan losses | 26,518 | 26,841 | 26,518 | 26,841 | |
Commercial and industrial | Commercial Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 11,533 | 47 | 11,533 | ||
Allowance for loan losses | |||||
Commercial real estate | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 52,373 | 59,524 | 47,555 | 54,730 | 52,373 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 3 | 8 | 53 | |
Provision (release) | 11,097 | 3,545 | 15,885 | 5,332 | |
Ending balance | 70,623 | 51,103 | 70,623 | 51,103 | |
Allowance for loan losses | 70,623 | 51,103 | 70,623 | 51,103 | |
Commercial real estate | Commercial Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | (6,655) | 0 | (6,655) | ||
Allowance for loan losses | |||||
Commercial construction | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 2,585 | 7,663 | 5,474 | 7,085 | 2,585 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision (release) | 136 | 507 | 714 | 1,911 | |
Ending balance | 7,799 | 5,981 | 7,799 | 5,981 | |
Allowance for loan losses | 7,799 | 5,981 | 7,799 | 5,981 | |
Commercial construction | Commercial Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,485 | 0 | 1,485 | ||
Allowance for loan losses | |||||
Business banking | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 10,983 | 15,228 | 16,699 | 16,189 | 10,983 |
Charge-offs | (303) | (369) | (900) | (1,922) | |
Recoveries | 609 | 286 | 1,294 | 1,678 | |
Provision (release) | (316) | (354) | (1,225) | (637) | |
Ending balance | 15,218 | 16,262 | 15,218 | 16,262 | |
Allowance for loan losses | 15,218 | 16,262 | 15,218 | 16,262 | |
Business banking | Commercial Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 6,160 | (140) | 6,160 | ||
Allowance for loan losses | |||||
Residential real estate | Residential Real Estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 6,556 | 27,012 | 21,663 | 28,129 | 6,556 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 30 | 56 | 63 | 80 | |
Provision (release) | (687) | 1,288 | (988) | 2,882 | |
Ending balance | 26,355 | 23,007 | 26,355 | 23,007 | |
Allowance for loan losses | 26,355 | 23,007 | 26,355 | 23,007 | |
Residential real estate | Residential Real Estate | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 13,489 | (849) | 13,489 | ||
Allowance for loan losses | |||||
Consumer home equity | Consumer Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,722 | 6,044 | 5,662 | 6,454 | 3,722 |
Charge-offs | 0 | 0 | (7) | 0 | |
Recoveries | 39 | 6 | 40 | 16 | |
Provision (release) | (601) | 174 | (804) | 247 | |
Ending balance | 5,482 | 5,842 | 5,482 | 5,842 | |
Allowance for loan losses | 5,482 | 5,842 | 5,482 | 5,842 | |
Consumer home equity | Consumer Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,857 | (201) | 1,857 | ||
Allowance for loan losses | |||||
Other Consumer | Consumer Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,308 | 2,949 | 2,626 | 2,765 | 3,308 |
Charge-offs | (731) | (603) | (1,883) | (1,754) | |
Recoveries | 108 | 158 | 335 | 533 | |
Provision (release) | 825 | 446 | 1,934 | 1,081 | |
Ending balance | 3,151 | 2,627 | 3,151 | 2,627 | |
Allowance for loan losses | $ 3,151 | 2,627 | 3,151 | 2,627 | |
Other Consumer | Consumer Portfolio Segment | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | (541) | $ 0 | (541) | ||
Allowance for loan losses | |||||
Other | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 242 | 242 | |||
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Provision (release) | 0 | ||||
Ending balance | 0 | 0 | |||
Allowance for loan losses | $ 0 | 0 | |||
Other | Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ (242) | $ (242) | |||
Allowance for loan losses |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Internal Risk-rating Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | $ 1,321,045 | $ 1,321,045 | $ 3,481,250 | ||
2022 | 3,168,009 | 3,168,009 | 2,447,552 | ||
2021 | 2,297,685 | 2,297,685 | 1,630,538 | ||
2020 | 1,487,420 | 1,487,420 | 1,094,274 | ||
2019 | 975,924 | 975,924 | 779,687 | ||
Prior | 2,959,855 | 2,959,855 | 2,496,108 | ||
Revolving Loans | 1,671,645 | 1,671,645 | 1,614,995 | ||
Revolving Loans Converted to Term Loans | 18,385 | 18,385 | 18,124 | ||
Total | 13,899,968 | 13,899,968 | 13,562,528 | ||
Current period gross charge-offs | |||||
Total | 1,045 | $ 983 | 2,801 | $ 3,689 | |
Commercial and industrial | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 429,563 | 429,563 | 780,736 | ||
2022 | 519,855 | 519,855 | 490,827 | ||
2021 | 394,074 | 394,074 | 425,901 | ||
2020 | 365,394 | 365,394 | 204,752 | ||
2019 | 160,891 | 160,891 | 103,461 | ||
Prior | 659,476 | 659,476 | 647,702 | ||
Revolving Loans | 539,086 | 539,086 | 478,083 | ||
Revolving Loans Converted to Term Loans | 4,011 | 4,011 | 1,066 | ||
Total | 3,072,350 | 3,072,350 | 3,132,528 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 11 | ||||
Revolving Loans | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 11 | 11 | 11 | 13 | |
Commercial and industrial | Pass | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 421,454 | 421,454 | 778,144 | ||
2022 | 489,139 | 489,139 | 479,317 | ||
2021 | 377,921 | 377,921 | 415,990 | ||
2020 | 351,075 | 351,075 | 199,865 | ||
2019 | 160,669 | 160,669 | 100,716 | ||
Prior | 656,163 | 656,163 | 639,825 | ||
Revolving Loans | 497,576 | 497,576 | 473,148 | ||
Revolving Loans Converted to Term Loans | 3,555 | 3,555 | 50 | ||
Total | 2,957,552 | 2,957,552 | 3,087,055 | ||
Commercial and industrial | Special Mention | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 8,109 | 8,109 | 2,298 | ||
2022 | 30,704 | 30,704 | 1,307 | ||
2021 | 14,345 | 14,345 | 7,267 | ||
2020 | 13,897 | 13,897 | 4,841 | ||
2019 | 186 | 186 | 147 | ||
Prior | 633 | 633 | 0 | ||
Revolving Loans | 18,711 | 18,711 | 1,196 | ||
Revolving Loans Converted to Term Loans | 456 | 456 | 670 | ||
Total | 87,041 | 87,041 | 17,726 | ||
Commercial and industrial | Substandard | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 294 | ||
2022 | 12 | 12 | 4,954 | ||
2021 | 1,808 | 1,808 | 2,644 | ||
2020 | 422 | 422 | 46 | ||
2019 | 36 | 36 | 2,598 | ||
Prior | 2,672 | 2,672 | 7,854 | ||
Revolving Loans | 22,799 | 22,799 | 485 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 346 | ||
Total | 27,749 | 27,749 | 19,221 | ||
Commercial and industrial | Doubtful | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 5,249 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 8 | 8 | 23 | ||
Revolving Loans | 0 | 0 | 3,254 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 8 | 8 | 8,526 | ||
Commercial and industrial | Loss | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Commercial real estate | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 372,774 | 372,774 | 1,510,675 | ||
2022 | 1,467,477 | 1,467,477 | 825,620 | ||
2021 | 873,581 | 873,581 | 589,959 | ||
2020 | 580,368 | 580,368 | 605,840 | ||
2019 | 577,648 | 577,648 | 501,194 | ||
Prior | 1,451,637 | 1,451,637 | 1,053,298 | ||
Revolving Loans | 67,157 | 67,157 | 60,590 | ||
Revolving Loans Converted to Term Loans | 2,585 | 2,585 | 4,187 | ||
Total | 5,393,227 | 5,393,227 | 5,151,363 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Commercial real estate | Pass | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 372,774 | 372,774 | 1,510,675 | ||
2022 | 1,467,477 | 1,467,477 | 825,620 | ||
2021 | 858,225 | 858,225 | 586,567 | ||
2020 | 575,634 | 575,634 | 581,840 | ||
2019 | 524,549 | 524,549 | 461,296 | ||
Prior | 1,342,646 | 1,342,646 | 1,006,160 | ||
Revolving Loans | 59,152 | 59,152 | 52,590 | ||
Revolving Loans Converted to Term Loans | 2,585 | 2,585 | 4,187 | ||
Total | 5,203,042 | 5,203,042 | 5,028,935 | ||
Commercial real estate | Special Mention | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 771 | ||
2020 | 744 | 744 | 4,204 | ||
2019 | 2,395 | 2,395 | 15,366 | ||
Prior | 28,343 | 28,343 | 12,255 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 31,482 | 31,482 | 32,596 | ||
Commercial real estate | Substandard | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 15,356 | 15,356 | 2,621 | ||
2020 | 3,990 | 3,990 | 19,796 | ||
2019 | 50,704 | 50,704 | 24,532 | ||
Prior | 54,851 | 54,851 | 34,883 | ||
Revolving Loans | 8,005 | 8,005 | 8,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 132,906 | 132,906 | 89,832 | ||
Commercial real estate | Doubtful | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 25,797 | 25,797 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 25,797 | 25,797 | 0 | ||
Commercial real estate | Loss | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Commercial construction | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 105,025 | 105,025 | 91,397 | ||
2022 | 140,590 | 140,590 | 178,648 | ||
2021 | 124,288 | 124,288 | 31,317 | ||
2020 | 7 | 7 | 20,767 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 10,727 | 10,727 | 12,130 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 380,637 | 380,637 | 334,259 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Commercial construction | Pass | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 99,843 | 99,843 | 91,397 | ||
2022 | 140,590 | 140,590 | 178,648 | ||
2021 | 124,288 | 124,288 | 28,956 | ||
2020 | 0 | 0 | 20,767 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 10,727 | 10,727 | 12,130 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 375,448 | 375,448 | 331,898 | ||
Commercial construction | Special Mention | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 5,182 | 5,182 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 2,361 | ||
2020 | 7 | 7 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 5,189 | 5,189 | 2,361 | ||
Commercial construction | Substandard | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Commercial construction | Doubtful | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Commercial construction | Loss | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Business banking | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 109,351 | 109,351 | 178,806 | ||
2022 | 165,680 | 165,680 | 206,703 | ||
2021 | 192,765 | 192,765 | 176,147 | ||
2020 | 158,293 | 158,293 | 135,731 | ||
2019 | 123,411 | 123,411 | 63,762 | ||
Prior | 264,664 | 264,664 | 248,643 | ||
Revolving Loans | 73,608 | 73,608 | 80,455 | ||
Revolving Loans Converted to Term Loans | 4,044 | 4,044 | 4,991 | ||
Total | 1,091,816 | 1,091,816 | 1,095,238 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 111 | ||||
2021 | 62 | ||||
2020 | 56 | ||||
2019 | 102 | ||||
Prior | 250 | ||||
Revolving Loans | 23 | ||||
Revolving Loans Converted to Term Loans | 296 | ||||
Total | 303 | 369 | 900 | 1,922 | |
Business banking | Pass | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 107,950 | 107,950 | 178,806 | ||
2022 | 164,497 | 164,497 | 202,230 | ||
2021 | 187,765 | 187,765 | 170,088 | ||
2020 | 152,567 | 152,567 | 128,282 | ||
2019 | 117,485 | 117,485 | 59,452 | ||
Prior | 252,479 | 252,479 | 233,484 | ||
Revolving Loans | 71,942 | 71,942 | 78,080 | ||
Revolving Loans Converted to Term Loans | 3,433 | 3,433 | 4,770 | ||
Total | 1,058,118 | 1,058,118 | 1,055,192 | ||
Business banking | Special Mention | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 572 | 572 | 991 | ||
2021 | 1,446 | 1,446 | 4,635 | ||
2020 | 3,579 | 3,579 | 4,605 | ||
2019 | 3,778 | 3,778 | 3,740 | ||
Prior | 8,233 | 8,233 | 7,584 | ||
Revolving Loans | 1,019 | 1,019 | 145 | ||
Revolving Loans Converted to Term Loans | 27 | 27 | 0 | ||
Total | 18,654 | 18,654 | 21,700 | ||
Business banking | Substandard | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1,401 | 1,401 | 0 | ||
2022 | 611 | 611 | 3,482 | ||
2021 | 3,554 | 3,554 | 1,424 | ||
2020 | 2,127 | 2,127 | 2,663 | ||
2019 | 1,069 | 1,069 | 570 | ||
Prior | 3,452 | 3,452 | 7,505 | ||
Revolving Loans | 647 | 647 | 2,230 | ||
Revolving Loans Converted to Term Loans | 584 | 584 | 221 | ||
Total | 13,445 | 13,445 | 18,095 | ||
Business banking | Doubtful | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 20 | 20 | 181 | ||
2019 | 1,079 | 1,079 | 0 | ||
Prior | 500 | 500 | 70 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 1,599 | 1,599 | 251 | ||
Business banking | Loss | Commercial Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Residential real estate | Residential Real Estate | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 204,250 | 204,250 | 766,094 | ||
2022 | 747,699 | 747,699 | 702,429 | ||
2021 | 677,289 | 677,289 | 383,651 | ||
2020 | 364,515 | 364,515 | 103,747 | ||
2019 | 96,601 | 96,601 | 70,668 | ||
Prior | 478,427 | 478,427 | 453,466 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 2,568,781 | 2,568,781 | 2,480,055 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Residential real estate | Residential Real Estate | Current and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 203,704 | 203,704 | 761,442 | ||
2022 | 742,941 | 742,941 | 696,959 | ||
2021 | 672,492 | 672,492 | 382,262 | ||
2020 | 362,610 | 362,610 | 99,494 | ||
2019 | 95,373 | 95,373 | 66,702 | ||
Prior | 464,070 | 464,070 | 434,720 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 2,541,190 | 2,541,190 | 2,441,579 | ||
Residential real estate | Residential Real Estate | 30-89 days past due and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 441 | 441 | 4,652 | ||
2022 | 4,032 | 4,032 | 5,470 | ||
2021 | 4,343 | 4,343 | 1,245 | ||
2020 | 905 | 905 | 2,762 | ||
2019 | 940 | 940 | 2,951 | ||
Prior | 8,855 | 8,855 | 11,646 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 19,516 | 19,516 | 28,726 | ||
Residential real estate | Residential Real Estate | Loans 90 days or more past due and still accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Residential real estate | Residential Real Estate | Non-accrual | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 105 | 105 | 0 | ||
2022 | 726 | 726 | 0 | ||
2021 | 454 | 454 | 144 | ||
2020 | 1,000 | 1,000 | 1,491 | ||
2019 | 288 | 288 | 1,015 | ||
Prior | 5,502 | 5,502 | 7,100 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 8,075 | 8,075 | 9,750 | ||
Consumer home equity | Consumer Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 27,721 | 27,721 | 97,954 | ||
2022 | 87,217 | 87,217 | 10,774 | ||
2021 | 9,557 | 9,557 | 5,840 | ||
2020 | 5,189 | 5,189 | 5,076 | ||
2019 | 4,356 | 4,356 | 21,438 | ||
Prior | 87,374 | 87,374 | 76,174 | ||
Revolving Loans | 968,009 | 968,009 | 966,188 | ||
Revolving Loans Converted to Term Loans | 7,584 | 7,584 | 7,863 | ||
Total | 1,197,007 | 1,197,007 | 1,191,307 | ||
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans | 7 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 0 | 0 | 7 | 0 | |
Consumer home equity | Consumer Portfolio Segment | Current and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 27,721 | 27,721 | 97,395 | ||
2022 | 86,954 | 86,954 | 10,774 | ||
2021 | 9,557 | 9,557 | 5,840 | ||
2020 | 5,189 | 5,189 | 5,015 | ||
2019 | 4,356 | 4,356 | 21,092 | ||
Prior | 84,939 | 84,939 | 73,927 | ||
Revolving Loans | 954,862 | 954,862 | 953,829 | ||
Revolving Loans Converted to Term Loans | 7,028 | 7,028 | 7,320 | ||
Total | 1,180,606 | 1,180,606 | 1,175,192 | ||
Consumer home equity | Consumer Portfolio Segment | 30-89 days past due and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 559 | ||
2022 | 196 | 196 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 72 | ||
Prior | 647 | 647 | 944 | ||
Revolving Loans | 7,675 | 7,675 | 7,239 | ||
Revolving Loans Converted to Term Loans | 377 | 377 | 247 | ||
Total | 8,895 | 8,895 | 9,061 | ||
Consumer home equity | Consumer Portfolio Segment | Loans 90 days or more past due and still accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Consumer home equity | Consumer Portfolio Segment | Non-accrual | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 67 | 67 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 61 | ||
2019 | 0 | 0 | 274 | ||
Prior | 1,788 | 1,788 | 1,303 | ||
Revolving Loans | 5,472 | 5,472 | 5,120 | ||
Revolving Loans Converted to Term Loans | 179 | 179 | 296 | ||
Total | 7,506 | 7,506 | 7,054 | ||
Other Consumer | Consumer Portfolio Segment | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 72,361 | 72,361 | 55,588 | ||
2022 | 39,491 | 39,491 | 32,551 | ||
2021 | 26,131 | 26,131 | 17,723 | ||
2020 | 13,654 | 13,654 | 18,361 | ||
2019 | 13,017 | 13,017 | 19,164 | ||
Prior | 18,277 | 18,277 | 16,825 | ||
Revolving Loans | 13,058 | 13,058 | 17,549 | ||
Revolving Loans Converted to Term Loans | 161 | 161 | 17 | ||
Total | 196,150 | 196,150 | 177,778 | ||
Current period gross charge-offs | |||||
2023 | 746 | ||||
2022 | 307 | ||||
2021 | 296 | ||||
2020 | 90 | ||||
2019 | 84 | ||||
Prior | 200 | ||||
Revolving Loans | 160 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 731 | $ 603 | 1,883 | $ 1,754 | |
Other Consumer | Consumer Portfolio Segment | Current and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 72,222 | 72,222 | 55,414 | ||
2022 | 39,286 | 39,286 | 32,390 | ||
2021 | 26,060 | 26,060 | 17,641 | ||
2020 | 13,635 | 13,635 | 18,298 | ||
2019 | 12,949 | 12,949 | 18,832 | ||
Prior | 18,047 | 18,047 | 16,603 | ||
Revolving Loans | 13,030 | 13,030 | 17,476 | ||
Revolving Loans Converted to Term Loans | 112 | 112 | 0 | ||
Total | 195,341 | 195,341 | 176,654 | ||
Other Consumer | Consumer Portfolio Segment | 30-89 days past due and accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 126 | 126 | 143 | ||
2022 | 143 | 143 | 68 | ||
2021 | 61 | 61 | 43 | ||
2020 | 19 | 19 | 61 | ||
2019 | 68 | 68 | 240 | ||
Prior | 183 | 183 | 178 | ||
Revolving Loans | 28 | 28 | 58 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 7 | ||
Total | 628 | 628 | 798 | ||
Other Consumer | Consumer Portfolio Segment | Loans 90 days or more past due and still accruing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | 0 | ||
2022 | 0 | 0 | 0 | ||
2021 | 0 | 0 | 0 | ||
2020 | 0 | 0 | 0 | ||
2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Other Consumer | Consumer Portfolio Segment | Non-accrual | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 13 | 13 | 31 | ||
2022 | 62 | 62 | 93 | ||
2021 | 10 | 10 | 39 | ||
2020 | 0 | 0 | 2 | ||
2019 | 0 | 0 | 92 | ||
Prior | 47 | 47 | 44 | ||
Revolving Loans | 0 | 0 | 15 | ||
Revolving Loans Converted to Term Loans | 49 | 49 | 10 | ||
Total | $ 181 | $ 181 | $ 326 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Shows the Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 13,899,968 | $ 13,562,528 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 53,003 | 67,967 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 30,256 | 42,715 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,511 | 6,360 |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15,236 | 18,892 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,846,965 | 13,494,561 |
Commercial and industrial | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,072,350 | 3,132,528 |
Commercial and industrial | Total Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,495 | 3,759 |
Commercial and industrial | 30-59 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,030 | 1,300 |
Commercial and industrial | 60-89 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 385 |
Commercial and industrial | 90 or More Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 465 | 2,074 |
Commercial and industrial | Current | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,070,855 | 3,128,769 |
Commercial real estate | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,393,227 | 5,151,363 |
Commercial real estate | Total Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | 30-59 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | 60-89 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | 90 or More Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | Current | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,393,227 | 5,151,363 |
Commercial construction | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 380,637 | 334,259 |
Commercial construction | Total Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | 30-59 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | 60-89 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | 90 or More Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | Current | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 380,637 | 334,259 |
Business banking | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,091,816 | 1,095,238 |
Business banking | Total Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,921 | 11,004 |
Business banking | 30-59 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,536 | 6,642 |
Business banking | 60-89 Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,846 | 845 |
Business banking | 90 or More Days Past Due | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,539 | 3,517 |
Business banking | Current | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,083,895 | 1,084,234 |
Residential real estate | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,568,781 | 2,480,055 |
Residential real estate | Total Past Due | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 26,455 | 36,185 |
Residential real estate | 30-59 Days Past Due | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,988 | 25,877 |
Residential real estate | 60-89 Days Past Due | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,846 | 3,852 |
Residential real estate | 90 or More Days Past Due | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,621 | 6,456 |
Residential real estate | Current | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,542,326 | 2,443,870 |
Consumer home equity | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,197,007 | 1,191,307 |
Consumer home equity | Total Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 16,323 | 15,895 |
Consumer home equity | 30-59 Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,232 | 8,262 |
Consumer home equity | 60-89 Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,661 | 1,108 |
Consumer home equity | 90 or More Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,430 | 6,525 |
Consumer home equity | Current | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,180,684 | 1,175,412 |
Other Consumer | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 196,150 | 177,778 |
Other Consumer | Total Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 809 | 1,124 |
Other Consumer | 30-59 Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 470 | 634 |
Other Consumer | 60-89 Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 158 | 170 |
Other Consumer | 90 or More Days Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 181 | 320 |
Other Consumer | Current | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 195,341 | $ 176,654 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Non-Accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | $ 46,985 | $ 26,244 |
Non-Accrual Loans Without ACL | 480 | 12,360 |
Total Nonaccrual Loans | 47,465 | 38,604 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 4 | 3,270 |
Non-Accrual Loans Without ACL | 466 | 10,707 |
Total Nonaccrual Loans | 470 | 13,977 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 25,797 | 0 |
Non-Accrual Loans Without ACL | 0 | 0 |
Total Nonaccrual Loans | 25,797 | 0 |
Commercial Portfolio Segment | Commercial construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 0 | 0 |
Non-Accrual Loans Without ACL | 0 | 0 |
Total Nonaccrual Loans | 0 | 0 |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 5,422 | 5,844 |
Non-Accrual Loans Without ACL | 14 | 1,653 |
Total Nonaccrual Loans | 5,436 | 7,497 |
Residential Real Estate | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 8,075 | 9,750 |
Non-Accrual Loans Without ACL | 0 | 0 |
Total Nonaccrual Loans | 8,075 | 9,750 |
Consumer Portfolio Segment | Consumer home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 7,506 | 7,054 |
Non-Accrual Loans Without ACL | 0 | 0 |
Total Nonaccrual Loans | 7,506 | 7,054 |
Consumer Portfolio Segment | Other Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 181 | 326 |
Non-Accrual Loans Without ACL | 0 | 0 |
Total Nonaccrual Loans | $ 181 | $ 326 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) payment | Sep. 30, 2023 USD ($) payment | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,861 | $ 7,006 |
% of Total Portfolio | 0.02% | 0.05% |
Total Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 533 | |
30-59 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 133 | |
60-89 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 400 | |
90 or More Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 6,473 | |
Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 203 | $ 1,792 |
% of Total Portfolio | 0% | 0.01% |
Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,189 | $ 3,222 |
% of Total Portfolio | 0.02% | 0.02% |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 259 |
% of Total Portfolio | 0% | 0% |
Combination - Interest Rate Reduction & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 428 | $ 693 |
% of Total Portfolio | 0% | 0% |
Combination - Interest Rate Reduction & Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 41 | $ 767 |
% of Total Portfolio | 0% | 0.01% |
Combination - Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 167 |
% of Total Portfolio | 0% | 0% |
Combination - Interest Rate Reduction, Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 106 |
% of Total Portfolio | 0% | 0% |
Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 62 | $ 1,016 |
% of Total Portfolio | 0.01% | 0.09% |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 1,017 | |
Other-than-Insignificant Delay in Repayment | payment | 6 | 2 |
Term Extension | 4 years 9 months 18 days | 5 years 1 month 6 days |
Commercial Portfolio Segment | Business banking | Total Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 20 | |
Commercial Portfolio Segment | Business banking | 30-59 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 20 | |
Commercial Portfolio Segment | Business banking | 60-89 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Commercial Portfolio Segment | Business banking | 90 or More Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Commercial Portfolio Segment | Business banking | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 997 | |
Commercial Portfolio Segment | Business banking | Maximum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 12.70% | 9.80% |
Commercial Portfolio Segment | Business banking | Minimum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 8.50% | 7.40% |
Commercial Portfolio Segment | Business banking | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 46 |
% of Total Portfolio | 0% | 0% |
Commercial Portfolio Segment | Business banking | Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 21 | $ 21 |
% of Total Portfolio | 0% | 0% |
Commercial Portfolio Segment | Business banking | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 259 |
% of Total Portfolio | 0% | 0.02% |
Commercial Portfolio Segment | Business banking | Combination - Interest Rate Reduction & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 90 |
% of Total Portfolio | 0% | 0.01% |
Commercial Portfolio Segment | Business banking | Combination - Interest Rate Reduction & Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 41 | $ 551 |
% of Total Portfolio | 0% | 0.05% |
Commercial Portfolio Segment | Business banking | Combination - Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 26 |
% of Total Portfolio | 0% | 0% |
Commercial Portfolio Segment | Business banking | Combination - Interest Rate Reduction, Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 23 |
% of Total Portfolio | 0% | 0% |
Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,084 | $ 3,046 |
% of Total Portfolio | 0.08% | 0.12% |
Residential Real Estate | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 3,046 | |
Other-than-Insignificant Delay in Repayment | payment | 8 | 8 |
Term Extension | 23 years 8 months 12 days | |
Residential Real Estate | Residential real estate | Total Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 113 | |
Residential Real Estate | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 113 | |
Residential Real Estate | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Residential Real Estate | Residential real estate | 90 or More Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Residential Real Estate | Residential real estate | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,933 | |
Residential Real Estate | Residential real estate | Maximum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 5.40% | |
Residential Real Estate | Residential real estate | Minimum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 3.60% | |
Residential Real Estate | Residential real estate | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 305 |
% of Total Portfolio | 0% | 0.01% |
Residential Real Estate | Residential real estate | Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,084 | $ 2,517 |
% of Total Portfolio | 0.08% | 0.10% |
Residential Real Estate | Residential real estate | Combination - Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 141 |
% of Total Portfolio | 0% | 0.01% |
Residential Real Estate | Residential real estate | Combination - Interest Rate Reduction, Term Extension & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 83 |
% of Total Portfolio | 0% | 0% |
Consumer Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 715 | $ 2,944 |
% of Total Portfolio | 0.06% | 0.25% |
Consumer Portfolio Segment | Consumer home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,943 | |
Other-than-Insignificant Delay in Repayment | payment | 3 | 7 |
Term Extension | 17 years 2 months 12 days | |
Consumer Portfolio Segment | Consumer home equity | Total Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 400 | |
Consumer Portfolio Segment | Consumer home equity | 30-59 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Consumer Portfolio Segment | Consumer home equity | 60-89 Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 400 | |
Consumer Portfolio Segment | Consumer home equity | 90 or More Days Past Due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | 0 | |
Consumer Portfolio Segment | Consumer home equity | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 2,543 | |
Consumer Portfolio Segment | Consumer home equity | Maximum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 8% | 7.40% |
Consumer Portfolio Segment | Consumer home equity | Minimum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest Rate Reduction | 4.80% | 4.40% |
Consumer Portfolio Segment | Consumer home equity | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 203 | $ 1,441 |
% of Total Portfolio | 0.02% | 0.12% |
Consumer Portfolio Segment | Consumer home equity | Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 84 | $ 684 |
% of Total Portfolio | 0.01% | 0.06% |
Consumer Portfolio Segment | Consumer home equity | Combination - Interest Rate Reduction & Other-than-Insignificant Delay in Repayment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 428 | $ 603 |
% of Total Portfolio | 0.04% | 0.05% |
Consumer Portfolio Segment | Consumer home equity | Combination - Interest Rate Reduction & Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Balance | $ 0 | $ 216 |
% of Total Portfolio | 0% | 0.02% |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Summary of TDR Loans on Accrual and Nonaccrual (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 contract | Sep. 30, 2023 contract | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | 21 | 38 | 257 |
Balance of Loans | $ 48,185 | ||
TDRs on Accrual Status | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 179 | ||
Balance of Loans | $ 28,834 | ||
TDRs on Non-Accrual Status | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 78 | ||
Balance of Loans | $ 19,351 | ||
Commercial and industrial | Commercial Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | 3 | 4 | 11 |
Balance of Loans | $ 15,766 | ||
Commercial and industrial | TDRs on Accrual Status | Commercial Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | ||
Balance of Loans | $ 4,449 | ||
Commercial and industrial | TDRs on Non-Accrual Status | Commercial Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 9 | ||
Balance of Loans | $ 11,317 | ||
Business banking | Commercial Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | 9 | 20 | 33 |
Balance of Loans | $ 6,225 | ||
Business banking | TDRs on Accrual Status | Commercial Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 11 | ||
Balance of Loans | $ 4,124 | ||
Business banking | TDRs on Non-Accrual Status | Commercial Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 22 | ||
Balance of Loans | $ 2,101 | ||
Residential real estate | Residential Real Estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | 5 | 8 | 142 |
Balance of Loans | $ 21,634 | ||
Residential real estate | TDRs on Accrual Status | Residential Real Estate | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 114 | ||
Balance of Loans | $ 17,618 | ||
Residential real estate | TDRs on Non-Accrual Status | Residential Real Estate | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 28 | ||
Balance of Loans | $ 4,016 | ||
Consumer home equity | Consumer Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | 4 | 6 | 70 |
Balance of Loans | $ 4,549 | ||
Consumer home equity | TDRs on Accrual Status | Consumer Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 51 | ||
Balance of Loans | $ 2,632 | ||
Consumer home equity | TDRs on Non-Accrual Status | Consumer Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 19 | ||
Balance of Loans | $ 1,917 | ||
Other Consumer | Consumer Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | ||
Balance of Loans | $ 11 | ||
Other Consumer | TDRs on Accrual Status | Consumer Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | ||
Balance of Loans | $ 11 | ||
Other Consumer | TDRs on Non-Accrual Status | Consumer Portfolio Segment | Special mention | Contractual Obligation Modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Balance of Loans | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of the Modifications Which Occurred During the Periods and the Change in the Recorded Investment Subsequent to the Modifications Occurring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) contract | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) contract | Sep. 30, 2022 USD ($) | Dec. 31, 2022 loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 21 | 38 | 257 | ||
Pre- Modification Outstanding Recorded Investment | $ 5,687 | $ 9,636 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 5,687 | $ 5,687 | $ 9,644 | $ 9,644 | |
Commercial and industrial | Commercial Portfolio Segment | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 3 | 4 | 11 | ||
Pre- Modification Outstanding Recorded Investment | $ 2,997 | $ 5,415 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 2,997 | $ 5,415 | |||
Business banking | Commercial Portfolio Segment | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 9 | 20 | 33 | ||
Pre- Modification Outstanding Recorded Investment | $ 284 | $ 854 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 284 | $ 862 | |||
Residential real estate | Residential Real Estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 5 | 8 | 142 | ||
Pre- Modification Outstanding Recorded Investment | $ 1,170 | $ 1,899 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 1,170 | $ 1,899 | |||
Consumer home equity | Consumer Portfolio Segment | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 4 | 6 | 70 | ||
Pre- Modification Outstanding Recorded Investment | $ 1,236 | $ 1,468 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 1,236 | $ 1,468 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Post-modification Balance of TDRs listed by Type of Modification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | $ 5,687 | $ 5,687 | $ 9,644 | $ 9,644 |
Extended maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 0 | 997 | ||
Adjusted interest rate and extended maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 123 | 535 | ||
Interest only/principal deferred | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 0 | 130 | ||
Covenant modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 0 | 2,418 | ||
Principal and interest deferred | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 2,343 | 2,343 | ||
Extended maturity and interest only/principal deferred | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | 2,997 | 2,997 | ||
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post modification balance of TDRs | $ 224 | $ 224 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Summary of the Company's Loan participations (Details) - Loan Participations and Assignments - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 1,673,339 | $ 1,542,358 |
Non-performing Loan Rate (%) | 0% | 0.55% |
Gross Charge-offs | $ 0 | $ 3 |
Commercial and industrial | Commercial Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 1,097,747 | $ 1,024,131 |
Non-performing Loan Rate (%) | 0% | 0.83% |
Gross Charge-offs | $ 0 | $ 0 |
Commercial real estate | Commercial Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 439,872 | $ 422,042 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 0 | $ 0 |
Commercial construction | Commercial Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 135,612 | $ 96,134 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 0 | $ 0 |
Business banking | Commercial Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 108 | $ 51 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 0 | $ 3 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of Leases [Line Items] | ||||
Payment of lease payments | $ 3.2 | $ 3.3 | $ 9.7 | $ 11.8 |
Minimum | ||||
Disclosure of Leases [Line Items] | ||||
Operating lease remaining lease term | 1 year | 1 year | ||
Maximum | ||||
Disclosure of Leases [Line Items] | ||||
Operating lease remaining lease term | 25 years | 25 years |
Leases - Summary of Information
Leases - Summary of Information Relating to Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 52,727 | $ 48,817 |
Lease liabilities | $ 55,852 | $ 52,105 |
Leases - Summary of Net Lease C
Leases - Summary of Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,974 | $ 3,182 | $ 8,929 | $ 9,670 |
Finance lease cost | 87 | 77 | 246 | 231 |
Variable lease cost | 655 | 577 | 1,993 | 1,914 |
Total lease cost | $ 3,716 | $ 3,836 | $ 11,168 | $ 11,815 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 8 years 6 months 3 days | 7 years 3 months 3 days |
Weighted-average discount rate | 3.73% | 2.62% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remainder of 2023 | $ 3,167 | |
2024 | 10,183 | |
2025 | 7,772 | |
2026 | 6,682 | |
2027 | 5,543 | |
Thereafter | 33,587 | |
Total minimum lease payments | 66,934 | |
Less: amount representing interest | 11,082 | |
Present value of future minimum lease payments | $ 55,852 | $ 52,105 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Balances not subject to amortization | |||
Goodwill | $ 557,635 | $ 557,635 | |
Balances subject to amortization | |||
Total goodwill and other intangible assets | 566,709 | 568,009 | |
Core deposit intangible | |||
Balances subject to amortization | |||
Core deposit intangible | $ 9,074 | $ 10,374 | |
Remaining useful life of intangible | 5 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 reporting_unit | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of reporting units | 2 |
Earnings (Loss) Per Share ("E_3
Earnings (Loss) Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ 63,464 | $ 52,808 | $ (94,198) | $ 145,593 |
Net (loss) income from discontinued operations | (4,351) | 1,969 | 7,872 | 11,872 |
Net income (loss) | $ 59,113 | $ 54,777 | $ (86,326) | $ 157,465 |
Average number of common shares outstanding (in shares) | 175,832,085 | 177,677,074 | 175,783,313 | 180,764,479 |
Less: Average unallocated ESOP shares (in shares) | (13,461,616) | (13,958,112) | (13,584,155) | (14,082,257) |
Average number of common shares outstanding used to calculate basic earnings (loss) per common share (in shares) | 162,370,469 | 163,718,962 | 162,199,158 | 166,682,222 |
Common stock equivalents (in shares) | 99,418 | 310,687 | 61,345 | 185,421 |
Average number of common shares outstanding used to calculate diluted earnings (loss) per common share (in shares) | 162,469,887 | 164,029,649 | 162,260,503 | 166,867,643 |
Basic earnings (loss) per common share: | ||||
Earnings (loss) per share from continuing operations (in dollars per share) | $ 0.39 | $ 0.32 | $ (0.58) | $ 0.87 |
(Loss) earnings per share from discontinued operations (in dollars per share) | (0.03) | 0.01 | 0.05 | 0.07 |
Basic earnings (loss) per share (in dollars per share) | 0.36 | 0.33 | (0.53) | 0.94 |
Diluted earnings (loss) per common share: | ||||
Earnings (loss) per share from continuing operations (in dollars per share) | 0.39 | 0.32 | (0.58) | 0.87 |
(Loss) earnings per share from discontinued operations (in dollars per share) | (0.03) | 0.01 | 0.05 | 0.07 |
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.33 | $ (0.53) | $ 0.94 |
Low Income Housing Tax Credit_3
Low Income Housing Tax Credits and Other Tax Credit Investments - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Investments In Affordable Housing Projects [Line Items] | ||
Tax credit investment | $ 226,800,000 | $ 131,300,000 |
Renewable Energy Program | ||
Investments In Affordable Housing Projects [Line Items] | ||
Equity investments | 2,300,000 | 2,600,000 |
Outstanding investment commitments | $ 0 | $ 0 |
Low income housing tax credit and other tax credit investments | ||
Investments In Affordable Housing Projects [Line Items] | ||
Tax credit period of benefits | 15 years | |
Operating loss tax benefits period | 15 years |
Low Income Housing Tax Credit_4
Low Income Housing Tax Credits and Other Tax Credit Investments - Summary of the Company's Investments in Low Income Housing Projects Accounted for Using the Proportional Amortization Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Investments in Affordable Housing Projects [Abstract] | |||||
Current recorded investment included in other assets | $ 224,445 | $ 224,445 | $ 128,765 | ||
Commitments to fund qualified affordable housing projects included in recorded investment noted above | 159,230 | 159,230 | $ 84,145 | ||
Tax credits and benefits recognized | 1,602 | $ 2,333 | 8,169 | $ 6,988 | |
Amortization expense included in income tax (benefit) expense | $ 745 | $ 1,886 | $ 6,322 | $ 5,616 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 07, 2022 | Nov. 12, 2021 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | |||||
Number of shares authorized to be repurchased (in shares) | 8,900,000 | 9,337,900 | |||
Percentage of shares authorized (in percent) | 5% | 5% | |||
Purchase period | 12 months | 12 months | |||
Number of shares repurchased (in shares) | $ 200 | $ 225 | |||
Repurchased common stock (in shares) | 1,481,248 | 0 | 8,564,338 | ||
Average price paid per share (in dollars per share) | $ 19.53 | $ 19.92 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||||||||
Dividends Declared per Share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||
Dividends Declared | $ 16,400 | $ 16,400 | $ 16,300 | $ 16,500 | $ 16,700 | $ 17,100 | ||
Dividends Paid | $ 16,200 | $ 16,300 | $ 16,200 | $ 16,300 | $ 16,500 | $ 16,900 | $ 48,691 | $ 49,759 |
Employee Benefits - Summary of
Employee Benefits - Summary of Components of Net Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 6,339 | $ 8,094 | $ 19,016 | $ 24,278 |
Interest cost | 4,297 | 2,429 | 12,893 | 7,289 |
Expected return on plan assets | (7,532) | (9,280) | (22,596) | (27,842) |
Prior service credit | (2,970) | (2,971) | (8,910) | (8,911) |
Recognized net actuarial loss | 2,468 | 2,799 | 7,404 | 8,395 |
Net periodic benefit cost | 2,602 | 1,071 | 7,807 | 3,209 |
Discontinued Operations, Held-for-Sale | Insurance Agency Business | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 1,500 | $ 1,900 | $ 4,500 | $ 5,800 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plan | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Discretionary employer contributions to defined benefit plans | $ 0 | $ 0 | $ 0 | $ 7,200,000 |
Employee Benefits - Asset Held
Employee Benefits - Asset Held in Rabbi Trust by Plan Type (Details) - Primary Beneficiary - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | $ 74,121 | $ 73,430 |
Mark-to-Market | 6,117 | 2,856 |
Fair Value | 80,238 | 76,286 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 11,420 | 5,575 |
Fair Value | 11,420 | 5,575 |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 55,838 | 60,056 |
Mark-to-Market | 6,822 | 3,626 |
Fair Value | 62,660 | 63,682 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 6,863 | 7,799 |
Mark-to-Market | (705) | (770) |
Fair Value | $ 6,158 | $ 7,029 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | 22 Months Ended | |||||
Nov. 29, 2021 | May 31, 2023 | Mar. 31, 2023 | May 31, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Reduction of shares available to be issued upon exercise of stock options with each additional restricted stock grant | 3 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 978,364 | 318,577 | 978,364 | |||||||
Equity instruments other than options vested in period (in shares) | 231,407 | 0 | ||||||||
Restricted Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 47,820 | 31,559 | ||||||||
Equity instruments other than options vested in period (in shares) | 28,690 | 0 | ||||||||
Performance Shares | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Grants in period (in shares) | 533,676 | 108,984 | 533,676 | |||||||
Equity instruments other than options vested in period (in shares) | 0 | 0 | ||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | 26,146,141 | |||||||||
Options granted in period (in shares) | 0 | 0 | ||||||||
Equity instruments other than options vested in period (in shares) | 0 | |||||||||
Unrecognized compensation expense related to unvested awards | $ 32.6 | $ 34.6 | $ 34.6 | $ 32.6 | ||||||
Period for recognition for unrecognized compensation expense related to unvested awards | 2 years 6 months | 3 years 3 months 18 days | ||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Restricted Stock Units (RSUs) | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | 7,470,326 | |||||||||
Award vesting period | 3 years | |||||||||
Grants in period (in shares) | 318,577 | |||||||||
Number of shares available for grant (in shares) | 4,830,074 | 5,302,256 | 5,302,256 | 4,830,074 | ||||||
Equity instruments other than options vested in period (in shares) | 231,407,000,000 | 0 | ||||||||
Shares withheld for tax withholding obligation (in shares) | $ 4.9 | |||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | |||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Share-based Payment Arrangement, Option | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | 18,675,815 | |||||||||
Award expiration period | 10 years | |||||||||
Number of shares available for grant (in shares) | 18,675,815 | 18,675,815 | 18,675,815 | 18,675,815 | ||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Restricted Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | 1 year | 1 year | |||||||
Grants in period (in shares) | 47,820 | 31,559 | ||||||||
Equity instruments other than options vested in period (in shares) | 28,690,000,000 | |||||||||
Shares withheld for tax withholding obligation (in shares) | $ 0.5 | |||||||||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | Performance Shares | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Grants in period (in shares) | 108,984 | |||||||||
Equity instruments other than options vested in period (in shares) | 0 | 0 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Payment Arrangement, Restricted Stock, Restricted Stock Unit, and Performance Stock Unit, Activity (Details) - $ / shares | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restricted Stock | |||
Number of Shares | |||
Non-vested stock at beginning of year (in shares) | 525,460 | 683,056 | |
Granted (in shares) | 47,820 | 31,559 | |
Vested (in shares) | (28,690) | 0 | |
Forfeited (in shares) | 0 | 0 | |
Non-vested stock at end of year (in shares) | 544,590 | 714,615 | |
Weighted-Average Grant Price Per Share | |||
Non-vested stock at beginning of year (in dollars per share) | $ 20.08 | $ 20.13 | |
Granted (in dollars per share) | 11.50 | 19.17 | |
Vested (in dollars per share) | 19.17 | 0 | |
Forfeited (in dollars per share) | 0 | 0 | |
Non-vested stock at end of year (in dollars per share) | $ 19.37 | $ 20.09 | |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Non-vested stock at beginning of year (in shares) | 972,325 | 0 | |
Granted (in shares) | 978,364 | 318,577 | 978,364 |
Vested (in shares) | (231,407) | 0 | |
Forfeited (in shares) | (3,199) | (6,039) | |
Non-vested stock at end of year (in shares) | 1,056,296 | 972,325 | |
Weighted-Average Grant Price Per Share | |||
Non-vested stock at beginning of year (in dollars per share) | $ 21.08 | $ 0 | |
Granted (in dollars per share) | 15.63 | 21.08 | |
Vested (in dollars per share) | 21.08 | 0 | |
Forfeited (in dollars per share) | 16.72 | 21.08 | |
Non-vested stock at end of year (in dollars per share) | $ 19.45 | $ 21.08 | |
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares) | 74,625 | ||
Performance Shares | |||
Number of Shares | |||
Non-vested stock at beginning of year (in shares) | 533,676 | 0 | |
Granted (in shares) | 533,676 | 108,984 | 533,676 |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Non-vested stock at end of year (in shares) | 642,660 | 533,676 | |
Weighted-Average Grant Price Per Share | |||
Non-vested stock at beginning of year (in dollars per share) | $ 21.12 | $ 0 | |
Granted (in dollars per share) | 10.16 | 21.12 | |
Vested (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | 0 | 0 | |
Non-vested stock at end of year (in dollars per share) | $ 19.26 | $ 21.12 |
Share-Based Compensation - Sh_2
Share-Based Compensation - Share-based Compensation Expense Under the 2021 Plan and the Related Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11,387 | $ 8,092 | ||
Eastern Bankshares, Inc. 2021 Equity Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 3,700 | $ 3,600 | 11,400 | 8,100 |
Related tax benefit | $ 1,000 | $ 1,000 | $ 3,200 | $ 2,300 |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Tax Provision and Applicable Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Combined federal and state income tax (benefit) provision | $ (16,178) | $ 16,650 | $ (65,619) | $ 43,681 |
Effective income tax rate | (34.20%) | 24% | 41.10% | 23.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (benefit) expense | $ (16,178) | $ 16,650 | $ (65,619) | $ 43,681 | |
Deferred tax asset valuation allowance | $ 17,400 | ||||
Reversed of valuation allowance | $ 14,600 | ||||
Deferred state income tax benefit | $ 23,700 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 5,920,300 | $ 5,680,438 |
Standby letters of credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | 54,532 | 65,154 |
Forward commitments to sell loans | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 8,495 | $ 10,008 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | |||
Notional Amount | $ 2,400,000 | $ 2,400,000 | |
Fair Value | (351) | (2,401) | |
Interest rate swaps | Designated as Hedging Instrument | |||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | |||
Notional Amount | $ 2,400,000 | $ 2,400,000 | |
Weighted Average Maturity | 4 years 6 months 25 days | 3 years 9 months 25 days | |
Current Rate Paid | 5.32% | 4.07% | |
Receive Fixed Swap Rate | 3.02% | 3.02% | |
Fair Value | $ (351) | $ (2,401) | |
Accrued interest payable | $ 2,500 | $ 1,500 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Pre-tax Impact of Terminated Cash Flow Hedges on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||||
Beginning Balance | $ 2,526,772 | $ 2,718,396 | $ 2,471,790 | $ 3,406,352 |
Unrealized gains on terminated hedges arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustments for amortization of unrealized gains into net income | 0 | (1,263) | (46) | (9,652) |
Ending balance | 2,446,553 | 2,416,163 | 2,446,553 | 2,416,163 |
Accumulated Gain (Loss), Net, Terminated Cash Flow Hedge, Parent | ||||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||||
Beginning Balance | 0 | 1,850 | 46 | 10,239 |
Ending balance | $ 0 | $ 587 | $ 0 | $ 587 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||||
Maximum length of time hedged in cash flow hedge | 4 years | ||||
Credit exposure to settled variation margin in excess of customer related interest rate swap | $ 100,000 | $ 100,000 | $ 0 | ||
Notional Amount | 2,400,000,000 | 2,400,000,000 | 2,400,000,000 | ||
Derivative, gain (loss) on derivative, net (less than during the three months ended September 30, 2023 and September 30, 2022) | (100,000) | $ (100,000) | (100,000) | $ (200,000) | |
Derivative asset | 26,344,000 | 26,344,000 | 23,861,000 | ||
Loan Origination Commitments | |||||
Derivative [Line Items] | |||||
Notional Amount | 12,200,000 | 12,200,000 | 8,300,000 | ||
Derivative asset | 100,000 | 100,000 | 100,000 | ||
Forward Contracts | |||||
Derivative [Line Items] | |||||
Notional Amount | 8,500,000 | 8,500,000 | 10,000,000 | ||
Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | |||||
Derivative [Line Items] | |||||
Fair value of interest rate swap liabilities that are net in a net liability position | 0 | 0 | 0 | ||
Cash and Cash Equivalents | Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | |||||
Derivative [Line Items] | |||||
Additional collateral posted | 1,000,000 | 1,000,000 | 1,000,000 | ||
Restricted Assets | Cash and Cash Equivalents | Cleared Derivative Transaction | |||||
Derivative [Line Items] | |||||
Additional collateral posted | 84,200,000 | 84,200,000 | $ 84,100,000 | ||
Interest Income | Active Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Interest rate swap cash flow hedges amount expected to reclassified from other comprehensive income to income statement in the next twelve months | $ 54,100,000 | $ 54,100,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Customer-related derivative positions (Details) $ in Thousands | Sep. 30, 2023 USD ($) position | Dec. 31, 2022 USD ($) position |
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Total Notional | $ 2,400,000 | $ 2,400,000 |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | position | 376 | 382 |
Total Notional | $ 2,478,858 | $ 2,404,003 |
Risk participation agreements | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | position | 73 | 63 |
Total Notional | $ 267,812 | $ 241,029 |
Matched commercial customer book | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | position | 92 | 32 |
Total Notional | $ 45,145 | $ 7,877 |
Foreign currency loan | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | position | 6 | 5 |
Total Notional | $ 11,553 | $ 13,948 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Classification on the balance sheet for the periods indicated (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative Asset | $ 26,344 | $ 23,861 |
Net Amount | 93,585 | 81,422 |
Asset Derivatives | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 15 | 16 |
Derivatives not designated as hedging instruments, Interest rate swaps, Other assets | 25,236 | 23,567 |
Derivatives not designated as hedging instruments, Other assets | 26,329 | 23,845 |
Asset Derivatives | Risk participation agreements | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 47 | 78 |
Asset Derivatives | Foreign currency exchange contracts - matched customer book | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 785 | 198 |
Asset Derivatives | Foreign currency exchange contracts - foreign currency loan | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 261 | 2 |
Liability Derivatives | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | 367 | 2,417 |
Derivative not designated as hedging instruments, Interest rate swaps, Other liabilities | 92,409 | 78,577 |
Derivatives not designated as hedging instruments, Other liabilities | 93,218 | 79,005 |
Liability Derivatives | Risk participation agreements | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | 45 | 130 |
Liability Derivatives | Foreign currency exchange contracts - matched customer book | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | 763 | 205 |
Liability Derivatives | Foreign currency exchange contracts - foreign currency loan | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | $ 1 | $ 93 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Company's derivative financial instruments included in OCI as follows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss in OCI on derivatives | $ (29,022) | $ (72,667) | $ (66,168) | $ (71,182) |
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | 0 |
Gain (loss) recognized in other income for foreign currency exchange contracts: | 1,447 | 936 | 1,204 | 4,954 |
Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) gain reclassified from OCI into interest income (effective portion) | (13,723) | 3,755 | (34,557) | 12,797 |
Interest Income | Net Investment Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | 0 |
Interest Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Customer-related positions: | 910 | 1,035 | 770 | 4,760 |
Interest Income | Risk participation agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Customer-related positions: | 25 | 38 | 54 | 186 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | 0 |
Other Income | Foreign currency exchange contracts - matched customer book | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other income for foreign currency exchange contracts: | 9 | (1) | 29 | (1) |
Other Income | Foreign currency exchange contracts - foreign currency loan | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other income for foreign currency exchange contracts: | $ 503 | $ (136) | $ 351 | $ 9 |
Balance Sheet Offsetting - Disc
Balance Sheet Offsetting - Disclosure Detail Of Balance Sheet Offsetting Of Financial Assets And Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Liabilities | ||
Net Amount | $ 93,585 | $ 81,422 |
Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 26,344 | 23,861 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 26,344 | 23,861 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 321 | 381 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | (16,900) | (14,430) |
Net Amount | 9,123 | 9,050 |
Derivative Liabilities | ||
Gross Amounts Recognized | 93,585 | 81,422 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 93,585 | 81,422 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 321 | 381 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 367 | 2,417 |
Net Amount | 92,897 | 78,624 |
Interest rate swaps | ||
Derivative Assets | ||
Gross Amounts Recognized | 15 | 16 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 15 | 16 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 15 | 16 |
Derivative Liabilities | ||
Gross Amounts Recognized | 367 | 2,417 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 367 | 2,417 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 367 | 2,417 |
Net Amount | 0 | 0 |
Interest rate swaps | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 25,236 | 23,567 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 25,236 | 23,567 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 321 | 381 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | (16,900) | (14,430) |
Net Amount | 8,015 | 8,756 |
Derivative Liabilities | ||
Gross Amounts Recognized | 92,409 | 78,577 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 92,409 | 78,577 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 321 | 381 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 92,088 | 78,196 |
Risk participation agreements | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 47 | 78 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 47 | 78 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 47 | 78 |
Derivative Liabilities | ||
Gross Amounts Recognized | 45 | 130 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 45 | 130 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 45 | 130 |
Foreign currency exchange contracts - matched customer book | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 785 | 198 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 785 | 198 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 785 | 198 |
Derivative Liabilities | ||
Gross Amounts Recognized | 763 | 205 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 763 | 205 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 763 | 205 |
Foreign currency exchange contracts - foreign currency loan | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 261 | 2 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 261 | 2 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 261 | 2 |
Derivative Liabilities | ||
Gross Amounts Recognized | 1 | 93 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 1 | 93 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged (Received) | 0 | 0 |
Net Amount | $ 1 | $ 93 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Additional information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in mutual funds | $ 44.2 | $ 38.9 |
Reported Value Measurement | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments original maturity | 90 days |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary Of The Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Securities available for sale | $ 4,261,518 | $ 6,690,778 |
Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 2,700,630 | 4,111,908 |
Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,089,120 | 1,348,954 |
U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 207,965 | 952,482 |
U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 93,219 | 93,057 |
Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | |
Fair Value, Recurring | ||
Assets | ||
Rabbi trust investments | 80,238 | 76,286 |
Loans held for sale | 23,892 | 4,543 |
Risk participation agreements | 47 | 78 |
Matched customer book | 785 | 198 |
Foreign currency loan | 261 | 2 |
Mortgage derivatives | 68 | 62 |
Total | 4,392,060 | 6,795,530 |
Liabilities | ||
Risk participation agreements | 45 | 130 |
Matched customer book | 763 | 205 |
Foreign currency loan | 1 | 93 |
Mortgage derivatives | 118 | 58 |
Total | 93,703 | 81,480 |
Fair Value, Recurring | Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 15 | 16 |
Liabilities | ||
Interest rate swap contracts | 367 | 2,417 |
Fair Value, Recurring | Not Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 25,236 | 23,567 |
Liabilities | ||
Interest rate swap contracts | 92,409 | 78,577 |
Fair Value, Recurring | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 2,700,630 | 4,111,908 |
Fair Value, Recurring | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,089,120 | 1,348,954 |
Fair Value, Recurring | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 207,965 | 952,482 |
Fair Value, Recurring | U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 93,219 | 93,057 |
Fair Value, Recurring | State and municipal bonds and obligations | ||
Assets | ||
Securities available for sale | 170,584 | 183,092 |
Fair Value, Recurring | Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Rabbi trust investments | 74,080 | 69,257 |
Loans held for sale | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 167,299 | 162,314 |
Liabilities | ||
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 0 | 0 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Not Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 0 | 0 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 93,219 | 93,057 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal bonds and obligations | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | ||
Assets | ||
Securities available for sale | 0 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Rabbi trust investments | 6,158 | 7,029 |
Loans held for sale | 23,892 | 4,543 |
Risk participation agreements | 47 | 78 |
Matched customer book | 785 | 198 |
Foreign currency loan | 261 | 2 |
Mortgage derivatives | 68 | 62 |
Total | 4,224,761 | 6,633,216 |
Liabilities | ||
Risk participation agreements | 45 | 130 |
Matched customer book | 763 | 205 |
Foreign currency loan | 1 | 93 |
Mortgage derivatives | 118 | 58 |
Total | 93,703 | 81,480 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 15 | 16 |
Liabilities | ||
Interest rate swap contracts | 367 | 2,417 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Not Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 25,236 | 23,567 |
Liabilities | ||
Interest rate swap contracts | 92,409 | 78,577 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 2,700,630 | 4,111,908 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,089,120 | 1,348,954 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 207,965 | 952,482 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal bonds and obligations | ||
Assets | ||
Securities available for sale | 170,584 | 183,092 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Rabbi trust investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 0 | 0 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Not Designated as Hedging Instrument | ||
Assets | ||
Interest rate swap contracts | 0 | 0 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal bonds and obligations | ||
Assets | ||
Securities available for sale | $ 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Other debt securities | ||
Assets | ||
Securities available for sale | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Summary Of The Fair Value Of Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Individually assessed collateral-dependent loans whose fair value is based upon appraisals | $ 18,105 | $ 16,432 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Individually assessed collateral-dependent loans whose fair value is based upon appraisals | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Individually assessed collateral-dependent loans whose fair value is based upon appraisals | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Individually assessed collateral-dependent loans whose fair value is based upon appraisals | $ 18,105 | $ 16,432 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | $ 455,900 | $ 476,647 |
FHLB stock | 37,125 | 41,363 |
Bank-owned life insurance | 163,700 | 160,790 |
Deposits | 17,424,169 | 18,974,359 |
FHLB advances | 17,189 | 12,787 |
Escrow deposits of borrowers | 24,947 | 22,314 |
Interest rate swap collateral funds | 16,900 | 14,430 |
Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 260,271 | 276,493 |
Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 195,629 | 200,154 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 0 | 0 |
FHLB stock | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Escrow deposits of borrowers | 0 | 0 |
Interest rate swap collateral funds | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 0 | 0 |
FHLB stock | 37,125 | 41,363 |
Bank-owned life insurance | 163,700 | 160,790 |
Deposits | 17,412,731 | 18,960,407 |
FHLB advances | 670,747 | 702,954 |
Escrow deposits of borrowers | 24,947 | 22,314 |
Interest rate swap collateral funds | 16,900 | 14,430 |
Significant Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 219,548 | 246,343 |
Significant Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 168,106 | 176,883 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 13,099,665 | 13,149,096 |
FHLB stock | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Escrow deposits of borrowers | 0 | 0 |
Interest rate swap collateral funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 0 | 0 |
Carrying Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 13,744,822 | 13,420,317 |
FHLB stock | 37,125 | 41,363 |
Bank-owned life insurance | 163,700 | 160,790 |
Deposits | 17,424,169 | 18,974,359 |
FHLB advances | 673,525 | 704,084 |
Escrow deposits of borrowers | 24,947 | 22,314 |
Interest rate swap collateral funds | 16,900 | 14,430 |
Carrying Value | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 260,271 | 276,493 |
Carrying Value | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 195,629 | 200,154 |
Estimate of Fair Value Measurement | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 13,099,665 | 13,149,096 |
FHLB stock | 37,125 | 41,363 |
Bank-owned life insurance | 163,700 | 160,790 |
Deposits | 17,412,731 | 18,960,407 |
FHLB advances | 670,747 | 702,954 |
Escrow deposits of borrowers | 24,947 | 22,314 |
Interest rate swap collateral funds | 16,900 | 14,430 |
Estimate of Fair Value Measurement | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 219,548 | 246,343 |
Estimate of Fair Value Measurement | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | $ 168,106 | $ 176,883 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Total noninterest income in-scope of ASC 606 | $ 19,574 | $ 18,517 | $ 57,047 | $ 59,009 |
Total noninterest (loss) income out-of-scope of ASC 606 | (417) | 1,007 | (321,539) | (4,684) |
Total noninterest income (loss) | 19,157 | 19,524 | (264,492) | 54,325 |
Service charges on deposit accounts | ||||
Revenue from External Customer [Line Items] | ||||
Total noninterest income in-scope of ASC 606 | 7,403 | 6,708 | 21,117 | 23,558 |
Trust and investment advisory fees | ||||
Revenue from External Customer [Line Items] | ||||
Total noninterest income in-scope of ASC 606 | 6,235 | 5,832 | 18,136 | 17,967 |
Debit card processing fees | ||||
Revenue from External Customer [Line Items] | ||||
Total noninterest income in-scope of ASC 606 | 3,388 | 3,249 | 10,071 | 9,417 |
Other noninterest income | ||||
Revenue from External Customer [Line Items] | ||||
Total noninterest income in-scope of ASC 606 | $ 2,548 | $ 2,728 | $ 7,723 | $ 8,067 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Cash Management Fees | ||
Disaggregation of Revenue [Line Items] | ||
Fess earned but not yet received | $ 1.7 | $ 2.1 |
Debit Card | ||
Disaggregation of Revenue [Line Items] | ||
Fess earned but not yet received | $ 0.3 | $ 0.3 |
Other Comprehensive Income - Co
Other Comprehensive Income - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Pre Tax Amount | |||||
Total other comprehensive (loss) income | $ (173,551) | $ (414,158) | $ 105,794 | $ (1,193,208) | |
Tax Benefit (Expense) | |||||
Total other comprehensive (loss) income | 44,951 | 96,503 | (12,184) | 271,086 | |
After Tax Amount | |||||
Before reclassifications | (188,628) | (914,312) | |||
Less: reclassification adjustments | (282,238) | 7,810 | |||
Total other comprehensive (loss) income | (128,600) | (317,655) | 93,610 | (922,122) | |
Accretion of gains from terminated cash flow hedges (less than) | (46) | (9,653) | |||
Total realized gain, net of tax | 41,200 | 41,200 | $ 41,200 | ||
Balance of gain after amortization, net of tax | 400 | 400 | |||
Unrealized Gains and (Losses) on Cash Flow Hedges | |||||
After Tax Amount | |||||
Accretion of gains from terminated cash flow hedges (less than) | 100 | ||||
Unrealized losses on securities available for sale: | |||||
Pre Tax Amount | |||||
Before reclassifications | (157,750) | (337,762) | (194,259) | (1,111,187) | |
Less: reclassification adjustments | 0 | (198) | (333,170) | (2,474) | |
Total other comprehensive (loss) income | (157,750) | (337,564) | 138,911 | (1,108,713) | |
Tax Benefit (Expense) | |||||
Before reclassifications | 40,490 | 76,107 | 52,004 | 249,158 | |
Less: reclassification adjustments | 0 | 12 | 74,630 | 714 | |
Total other comprehensive (loss) income | 40,490 | 76,095 | (22,626) | 248,444 | |
After Tax Amount | |||||
Before reclassifications | (117,260) | (261,655) | (142,255) | (862,029) | |
Less: reclassification adjustments | 0 | (186) | (258,540) | (1,760) | |
Total other comprehensive (loss) income | (117,260) | (261,469) | 116,285 | (860,269) | |
Unrealized losses on cash flow hedges: | |||||
Pre Tax Amount | |||||
Before reclassifications | (29,022) | (72,667) | (66,168) | (71,182) | |
Less: reclassification adjustments | (13,723) | 3,755 | (34,557) | 12,797 | |
Total other comprehensive (loss) income | (15,299) | (76,422) | (31,611) | (83,979) | |
Tax Benefit (Expense) | |||||
Before reclassifications | 8,193 | 19,304 | 19,795 | 18,899 | |
Less: reclassification adjustments | 3,874 | (1,056) | 9,757 | (3,598) | |
Total other comprehensive (loss) income | 4,319 | 20,360 | 10,038 | 22,497 | |
After Tax Amount | |||||
Before reclassifications | (20,829) | (53,363) | (46,373) | (52,283) | |
Less: reclassification adjustments | (9,849) | 2,699 | (24,800) | 9,199 | |
Total other comprehensive (loss) income | (10,980) | (56,062) | (21,573) | (61,482) | |
Defined benefit pension plans: | |||||
Pre Tax Amount | |||||
Total other comprehensive (loss) income | (502) | (172) | (1,506) | (516) | |
Tax Benefit (Expense) | |||||
Total other comprehensive (loss) income | 142 | 48 | 404 | 145 | |
After Tax Amount | |||||
Before reclassifications | 0 | 0 | |||
Less: reclassification adjustments | 1,102 | 371 | |||
Total other comprehensive (loss) income | (360) | (124) | (1,102) | (371) | |
Change in actuarial net loss | |||||
Pre Tax Amount | |||||
Before reclassifications | 0 | 0 | 0 | 0 | |
Tax Benefit (Expense) | |||||
Before reclassifications | 0 | 0 | 0 | 0 | |
After Tax Amount | |||||
Before reclassifications | 0 | 0 | 0 | 0 | |
Less: amortization of actuarial net loss | |||||
Pre Tax Amount | |||||
Less: reclassification adjustments | (2,468) | (2,799) | (7,404) | (8,395) | |
Tax Benefit (Expense) | |||||
Less: reclassification adjustments | 697 | 787 | 2,091 | 2,360 | |
After Tax Amount | |||||
Less: reclassification adjustments | (1,771) | (2,012) | (5,313) | (6,035) | |
Less: accretion of prior service credit | |||||
Pre Tax Amount | |||||
Less: reclassification adjustments | 2,970 | 2,971 | 8,910 | 8,911 | |
Tax Benefit (Expense) | |||||
Less: reclassification adjustments | (839) | (835) | (2,495) | (2,505) | |
After Tax Amount | |||||
Less: reclassification adjustments | $ 2,131 | $ 2,136 | $ 6,415 | $ 6,406 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,526,772 | $ 2,718,396 | $ 2,471,790 | $ 3,406,352 |
Other comprehensive loss before reclassifications | (188,628) | (914,312) | ||
Less: Amounts reclassified from accumulated other comprehensive loss | (282,238) | 7,810 | ||
Net current-period other comprehensive income (loss) | 93,610 | (922,122) | ||
Ending balance | 2,446,553 | 2,416,163 | 2,446,553 | 2,416,163 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (700,982) | (661,163) | (923,192) | (56,696) |
Ending balance | (829,582) | (978,818) | (829,582) | (978,818) |
Unrealized Gains and (Losses) on Available for Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (880,156) | (58,586) | ||
Other comprehensive loss before reclassifications | (117,260) | (261,655) | (142,255) | (862,029) |
Less: Amounts reclassified from accumulated other comprehensive loss | 0 | (186) | (258,540) | (1,760) |
Net current-period other comprehensive income (loss) | 116,285 | (860,269) | ||
Ending balance | (763,871) | (918,855) | (763,871) | (918,855) |
Unrealized Gains and (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (50,159) | 7,361 | ||
Other comprehensive loss before reclassifications | (20,829) | (53,363) | (46,373) | (52,283) |
Less: Amounts reclassified from accumulated other comprehensive loss | (9,849) | 2,699 | (24,800) | 9,199 |
Net current-period other comprehensive income (loss) | (21,573) | (61,482) | ||
Ending balance | (71,732) | (54,121) | (71,732) | (54,121) |
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 7,123 | (5,471) | ||
Other comprehensive loss before reclassifications | 0 | 0 | ||
Less: Amounts reclassified from accumulated other comprehensive loss | 1,102 | 371 | ||
Net current-period other comprehensive income (loss) | (1,102) | (371) | ||
Ending balance | $ 6,021 | $ (5,842) | $ 6,021 | $ (5,842) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Oct. 31, 2023 | Sep. 19, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment of right-of-use assets | $ 395 | $ 604 | ||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gross cash consideration | $ 515,000 | |||||
Total compensation | $ 1,000 | 1,000 | ||||
ROU lease asset | 1,000 | 1,000 | $ 8,700 | |||
Lease liability | 3,500 | 3,500 | 9,200 | |||
Net reduction of the lease ROU assets | 6,400 | |||||
Impairment of right-of-use assets | 2,000 | 2,000 | ||||
Insurance commission receivable | 16,100 | 16,100 | 15,100 | |||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | Subsequent Event | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gross cash consideration | $ 515,000 | |||||
Disposal Group, Not Discontinued Operations, Transferrable Upon Sale to Entity | Insurance Agency Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
ROU lease asset | 400 | 400 | 1,900 | |||
Lease liability | $ 600 | $ 600 | $ 2,200 |
Discontinued Operations - Summa
Discontinued Operations - Summary of the Asset and Liabilities of the Discontinued Insurance Agency Business (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets | $ 124,718 | $ 128,219 |
Liabilities | ||
Total liabilities | 34,820 | 34,930 |
Discontinued Operations, Held-for-Sale | Insurance Agency Business | ||
Assets | ||
Premises and equipment | 50 | 163 |
Goodwill and intangibles, net | 91,115 | 93,117 |
Deferred income taxes, net | (187) | (315) |
Prepaid expenses | 476 | 532 |
Other assets | 33,264 | 34,722 |
Total assets | 124,718 | 128,219 |
Liabilities | ||
Other liabilities | 34,820 | 34,930 |
Total liabilities | 34,820 | 34,930 |
Disposal Group, Not Discontinued Operations, Transferrable Upon Sale to Entity | Insurance Agency Business | ||
Assets | ||
Cash | 77,852 | 66,507 |
Premises and equipment | 1,776 | 1,792 |
Bank-owned life insurance | 2,109 | 2,066 |
Deferred income taxes, net | 3,457 | 3,662 |
Other assets | 11,187 | 12,944 |
Total assets | 96,381 | 86,971 |
Liabilities | ||
Other liabilities | 12,166 | 14,013 |
Total liabilities | $ 12,166 | $ 14,013 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of the Operating Results of the Discontinued Insurance Agency Business (Details) - Insurance Agency Business - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Discontinued Operations, Held-for-Sale | ||||
Noninterest income: | ||||
Insurance commissions | $ 25,897 | $ 23,926 | $ 85,177 | $ 77,511 |
Other noninterest income | 13 | 41 | 51 | 137 |
Total noninterest (loss) income | 25,910 | 23,967 | 85,228 | 77,648 |
Noninterest expense: | ||||
Salaries and employee benefits | 24,655 | 16,768 | 57,991 | 49,057 |
Office occupancy and equipment | 2,755 | 823 | 4,279 | 2,401 |
Data processing | 1,013 | 1,052 | 3,216 | 3,248 |
Professional services | 1,291 | 549 | 2,615 | 738 |
Marketing expenses | 53 | 101 | 152 | 182 |
Amortization of intangible assets | 665 | 734 | 2,002 | 1,868 |
Other | 1,514 | 1,186 | 3,976 | 3,613 |
Total noninterest expense | 31,946 | 21,213 | 74,231 | 61,107 |
(Loss) income from discontinued operations before income tax expense | (6,036) | 2,754 | 10,997 | 16,541 |
Income tax (benefit) expense | (1,685) | 785 | 3,125 | 4,669 |
(Loss) income from discontinued operations, net of taxes | (4,351) | 1,969 | 7,872 | 11,872 |
Disposal Group, Not Discontinued Operations, Transferrable Upon Sale to Entity | ||||
Noninterest income: | ||||
(Losses) income from investments held in rabbi trusts | (91) | (266) | 489 | (1,634) |
Other noninterest income | 15 | 14 | 44 | 40 |
Total noninterest (loss) income | (76) | (252) | 533 | (1,594) |
Noninterest expense: | ||||
Salaries and employee benefits | (96) | (268) | 484 | (1,616) |
Office occupancy and equipment | 102 | 125 | 343 | 375 |
Other | 474 | 129 | 1,468 | 320 |
Total noninterest expense | 480 | (14) | 2,295 | (921) |
(Loss) income from discontinued operations before income tax expense | (556) | (238) | (1,762) | (673) |
Income tax (benefit) expense | (156) | (67) | (495) | (189) |
(Loss) income from discontinued operations, net of taxes | $ (400) | $ (171) | $ (1,267) | $ (484) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 03, 2023 | Sep. 19, 2023 | |
Subsequent Event [Line Items] | |||||||
Noninterest expense | $ 101,748 | $ 95,765 | $ 297,573 | $ 276,066 | |||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | |||||||
Subsequent Event [Line Items] | |||||||
Gross cash consideration | $ 515,000 | ||||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Net cash consideration | $ 498,100 | ||||||
Gross cash consideration | 515,000 | ||||||
Working capital adjustment | 4,200 | ||||||
Transaction expenses | 17,000 | ||||||
Post-retirement liabilities | 4,100 | ||||||
Fiduciary cash transferred | 7,400 | ||||||
Gain (loss) on disposition of assets | 389,300 | ||||||
Noninterest expense | $ 24,200 | ||||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | Subsequent Event | Minimum | |||||||
Subsequent Event [Line Items] | |||||||
Estimated curtailment gain at the time of the amendments to the Plans | $ 13,000 | ||||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | Subsequent Event | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Estimated curtailment gain at the time of the amendments to the Plans | $ 18,000 |
Uncategorized Items - ebc-20230
Label | Element | Value | |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] | [1] |
[1] Represents gross transition adjustment amount of $28.0 million, net of taxes of $7.9 million, to reflect the cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2016-13. Refer to Note 4, “Loans and Allowance for Credit Losses” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion. |